SPIRIT OF LATIN AMERICA -...

7
SPIRIT OF LATIN AMERICA With a successful Pan American Games completed/a FIFA World Cup to come and an economy which has experienced tremendous growth in recent years, the signs are positive for Brazil's ambitions on the global stage. By Andy Fry THE 2007 Pan American Games was a landmark for the Brazilian sports sector. Although the country has always been known for its talented athletes and passionate fans, this was the moment when the iconic city of Rio de Janeiro proved that modern-day Brazil could also stage a spectacular, world-class event. In 2002, when Rio was awarded the Pan Am Games ahead of San Antonio in the USA, there were those who doubted that Brazil could pull it off. But a massive amount of infrastructure investment and organisational energy went into Rio's preparations. When 6000 athletes from 42 countries arrived to compete, everything from venues and accommodation to transport and security stood up to the challenge. The beauty of the event was that it achieved Olympic standards without sacrificing that all- important Brazilian flair. At the opening ceremony on July 13, 90,000 people descended on Rio's Maracana Stadium where they were treated to a stunning two-and- a-half hour live show. With a cast of 7000 and a multi-million dollar budget, it was the perfect curtain- raiser for two weeks of top quality action in 38 sports. The Pan Am Games weren't just a success in their own right. They were also a good indicator of Brazil's ability to host global events. This is important for two reasons. Firstly, because Brazil is due to host the 2014 FIFA World Cup. Secondly, because Rio is also hoping to stage the Summer Olympic Games in 2016. The success of the Pan Am Games venue construction programme suggests FIFA will have nothing to worry about when the World Cup roadshow heads on to Brazil The best evidence for this was the creation of the Joao Havelange stadium - an ultra- modern venue which is capable of holding 45,000 people. With 17 cities having put their names forward to host matches in 2014, preparations for the event are well under way. Of course, hosting major events is about more than just bricks and mortar - a point well made by Carlos Alberto Torres, captain of Brazil's revered 1970 World Cup winning side. In a recent interview with Soccerex.tv, he spoke of the excitement that Brazilians feel at the thought of hosting such an important event: "It is the dream of all Brazilians - including the government and the important people - to have the World Cup. Can you imagine Brazil hosting a World Cup? We eat football, we sleep football. I'm sure we are going to make one of the best World Cups ever." Football, of course, is a huge passion in Brazil. But the positive reaction to the Pan Am Games showed that this proud and dynamic nation is ready to make its mark in other areas too. Now, it wants to take the Pan Am experience and use it to bring the Olympic Games to Rio de Janeiro. In 2008, Brazilian minister of sport Orlando Silva used the SportAccord conference in Athens to lay out the country's credentials. Speaking to Associated Press, he cited Brazil's roaring economy and the 2007 Pan Am games which were "a great success and gave Rio credibility. Transportation, health, security, food, everything worked very well. The Olympics f ,.are a dream for us and would place sports strongly in the national agenda; not just soccer". Rio will find out in October 2009 whether it has been successful in its bid, when members of the International Olympic Committee gadier at the I2ist IOC Session in Copenhagen. And the Rio delegation can go in knowing that it has the full support of its politicians, people and - on top of this - the entire South American Olympic family. The mood across the continent 52 SportBusiness International • No. 145 • 05.09

Transcript of SPIRIT OF LATIN AMERICA -...

Page 1: SPIRIT OF LATIN AMERICA - ESPMarquivosclipping.espm.br/clipping/20090522/spirit_of_latin_america-13.pdfSPIRIT OF LATIN AMERICA With a successful Pan American Games completed/a FIFA

SPIRIT OF LATIN AMERICAWith a successfulPan American Gamescompleted/a FIFA WorldCup to come and aneconomy which hasexperienced tremendousgrowth in recent years,the signs are positive forBrazil's ambitions on theglobal stage. By Andy Fry

THE 2007 Pan American Gameswas a landmark for the Braziliansports sector. Although the countryhas always been known for itstalented athletes and passionatefans, this was the moment whenthe iconic city of Rio de Janeiroproved that modern-day Brazilcould also stage a spectacular,world-class event.

In 2002, when Rio wasawarded the Pan Am Gamesahead of San Antonio in theUSA, there were those whodoubted that Brazil could pullit off. But a massive amount ofinfrastructure investment andorganisational energy went intoRio's preparations. When 6000athletes from 42 countries arrivedto compete, everything fromvenues and accommodation totransport and security stood up tothe challenge.

The beauty of the event wasthat it achieved Olympic standardswithout sacrificing that all-important Brazilian flair. At theopening ceremony on July 13,90,000 people descended on Rio'sMaracana Stadium where theywere treated to a stunning two-and-a-half hour live show. With a castof 7000 and a multi-million dollarbudget, it was the perfect curtain-raiser for two weeks of top qualityaction in 38 sports.

The Pan Am Games weren't

just a success in their own right.They were also a good indicatorof Brazil's ability to host globalevents. This is important for tworeasons. Firstly, because Brazil isdue to host the 2014 FIFA WorldCup. Secondly, because Rio isalso hoping to stage the SummerOlympic Games in 2016.

The success of the Pan AmGames venue constructionprogramme suggests FIFA willhave nothing to worry about whenthe World Cup roadshow headson to Brazil The best evidence forthis was the creation of the JoaoHavelange stadium - an ultra-modern venue which is capableof holding 45,000 people. With17 cities having put their namesforward to host matches in 2014,preparations for the event are wellunder way.

Of course, hosting major eventsis about more than just bricksand mortar - a point well made byCarlos Alberto Torres, captain ofBrazil's revered 1970 World Cupwinning side. In a recent interviewwith Soccerex.tv, he spoke of theexcitement that Brazilians feel atthe thought of hosting such animportant event: "It is the dreamof all Brazilians - including thegovernment and the importantpeople - to have the World Cup.Can you imagine Brazil hostinga World Cup? We eat football, we

sleep football. I'm sure we aregoing to make one of the bestWorld Cups ever."

Football, of course, is ahuge passion in Brazil. But thepositive reaction to the Pan AmGames showed that this proudand dynamic nation is ready tomake its mark in other areas too.Now, it wants to take the Pan Amexperience and use it to bring theOlympic Games to Rio de Janeiro.In 2008, Brazilian minister ofsport Orlando Silva used theSportAccord conference in Athensto lay out the country's credentials.

Speaking to Associated Press,he cited Brazil's roaring economyand the 2007 Pan Am gameswhich were "a great success andgave Rio credibility. Transportation,health, security, food, everythingworked very well. The Olympics

f ,.are a dream for us and would placesports strongly in the nationalagenda; not just soccer".

Rio will find out in October2009 whether it has beensuccessful in its bid, whenmembers of the InternationalOlympic Committee gadier at theI2ist IOC Session in Copenhagen.And the Rio delegation can goin knowing that it has the fullsupport of its politicians, peopleand - on top of this - the entireSouth American Olympic family.The mood across the continent

52 SportBusiness International • No. 145 • 05.09

Page 2: SPIRIT OF LATIN AMERICA - ESPMarquivosclipping.espm.br/clipping/20090522/spirit_of_latin_america-13.pdfSPIRIT OF LATIN AMERICA With a successful Pan American Games completed/a FIFA

was summed up neatly last yearby M.K. Juman Yassin, presidentof the Olympic Committee ofGuiana, who said: "Our continentwill be united to support the Rio2016 campaign, aiming at fulfillingthe collective dream of SouthAmerican athletes - the OlympicGames in South America".

Even if Rio is not successfulin its bid, the fact that it is on ashortlist with Chicago, Madrid andTokyo is an achievement in itself.Indeed, it demonstrates that thereis a new cultural and commercialethos in Brazilian sport - one whichwill appeal to sports stakeholderswell beyond the Olympic family.

It's important to remember,after all, that Brazil is also abeautiful, diverse and weather-blessed nation. Over and aboveits passionate fans and numerousinfrastructure investments,it is also an ideal location forwater sports, action sports, dance,beach volleyball and beach footballand tennis (to name just a few!).

In April, for example,volleyball's global governing bodyFIVE confirmed that Brazil wouldbe hosting an international BeachVolleyball event for the 23rd yearrunning (the $380,000 Banco doBrasil Open presented by KIA, partof the Swatch FIVE World Tour).

With the rapid expansion ofits economv, it's also evident that

Brazil will have a key role to playin two key areas of the sportsbusiness. Firstly, in the field ofcorporate hospitality. Recentinvestments in. the Fi motor-racing circuit at Interlagos providean ideal platform for businessdecision-makers to meet.

There are also advances in thesport of golf - with golfing legendNick Faldo taking the GrandFinal of his Faldo Series to Brazillast October (an event which issupported by the European Tour,R&A and the PGA). Secondly, thereis the opportunity for sport to playa role in improving conditions foryoung people in this vast country.

Carlos Arthur Nuzman,president of the Brazilian OlympicCommittee and Rio 2016 BidCommittee, has made this a keyplank in his strategy to securethe Games - arguing that the2016 Summer Olympic offers theIOC "an opportunity to embraceLatin America, a region with apopulation of 400 million of whoma third are youth population."

This is an interesting point forthe IOC to consider when it selectsthe 2016 host.

Not only would the Olympicbrand benefit from the Carnival-like atmosphere that we allassociate with Rio. it would bereaching out to the next generationof sports fans.

SportBusiness International • No.145 • 05.09 53

Page 3: SPIRIT OF LATIN AMERICA - ESPMarquivosclipping.espm.br/clipping/20090522/spirit_of_latin_america-13.pdfSPIRIT OF LATIN AMERICA With a successful Pan American Games completed/a FIFA

A SPORTING ECONOMYCredited with transforming his country's economy, Brazilian PresidentLuiz Inacio Lula da SiLva is also a firm advocate of sport and its role in socialinclusion. Here he presents his vision for Brazilian sport and his support for astrategy of national and global engagement through sport

Brazil is one of the world's most dynamic youngdemocracies. What are the major factors whichhave changed your nation and the world's view ofit over the past decade?Throughout the second half of the 2Oth Century,Brazil has faced and overcome importantchallenges in terms of development. Sincethen, Brazilians have tried to offer competentresponses to the problems derived from a historyof social inequality, combined with populationgrowth and fast-paced urbanisation. That said,the key to the country's recent successes is thedemocratisation that took place from the 19803and marked the first step in a collective effortto curb inflation and consolidate institutionaland macroeconomic stability. With inflationunder control, a balanced budget and a vigorousprogramme of social inclusion we have fostereda strong and sustainable process of economicand social development in the last few years.

The Brazilian economy is now stable,diversified and dynamic. We are the tenthlargest economy in the world and the WorldBank forecasts that Brazil will be the fifth largesteconomy in the world by 2016, when we willhopefully welcome people from all over theworld for the Olympic Games in Rio.

In much of the world, views of Brazil have beenshaped by its sporting success, particularly infootball and motor racing. How important arenational teams and athletes to the identity of theBrazilian people?I must also highlight sports such as volleyball,basketball, track and field, swimming, tennis,judo, yachting, gymnastics, futsal, boxing, beachsoccer and beach volley. These sports and manyothers have also delivered Brazilian idols andteams that won World and Olympic titles in thepast and to this day. We are very proud of allof these athletes, especially the ones that haveovercome the difficulties posed by poverty andlack of support for development of their skills.

Sports are an extremely relevant factorin social cohesion in Brazil and have beenfundamental not only of our internationalimage as a country, but also to our ownidentity as a people. Football and Brazil arealmost synonymous both here and abroad.We live Brazil's and all Brazilians' sportingachievements as a celebration of our ownidentity and our way of life. Defeats such asthe final of the 1950 FIFA World Cup in theMaracana stadium against Uruguay impacton all of us and are passed on as a moment

of national mourning from generation togeneration. Fortunately that difficult lesson hasbeen learnt as seen in the five victorious WorldCup campaigns, starting in 1958.

How strong is the culture of sports participationin Brazil?You can witness the strong culture of sportsparticipation in ever)' city across Brazil, and Iam not just talking about football. In addition toschools and social clubs, sports participation isinstrumental in preparing new generations ofBrazilian athletes. We want to do even more toharness this love of sport in our young people.One of the many reasons why I passionatelybelieve the Olympic Games should come to Rioin 2016 is that it will inspire even more youngpeople in Brazil and South America to engagein sport.

This will take many forms but one of themost tangible will be our planned OlympicTraining Center which will provide state of theart facilities and be a hub for young athletes fromacross the continent and beyond. It will be aperfect example of die long term sporting legacy,particularly for Olympic and Paralympic sport,which Rio 2016 will bring. It will be an excitingnew facility for the athletes of all Olympic andParalympic sports from all over the country,as well as a tool to support initiatives in theneighbouring communities meant to encouragepeople - regardless of age or social background -to participate in sports and lead healthy lifestyles.

What initiatives are being taken to promotesports participation among the youth of Brazil?While schools and clubs are supported bygovernment incentive programmes in thedevelopment of young athletes the main goalof our governmental action is to promote socialinclusion and personal development throughsports. In 2003, my first year in office, weimplemented the "Second Half" programmewith the objective of democratising access tosports. The programme has since helped 3.2million young Brazilians in public schools andless fortunate communities and prioritiseschildren and young people exposed to violenceand other sources of social risk, in additionto adequate training, they are offered regularmeals, uniforms and sports equipment. "SecondHalf" currently serves 900,000 youngsters in1,363 Brazilian towns and cities.

The talented young men and women whostand out for their performance countrywide

can also count on a government sponsorshipprogramme for athletes, known as "Bolsa Atleta",one of the largest government sports sponsorshipprogrammes in die world. The selectedcandidates, ranked in one of four categories(school, national, international and Olympic/Paralympic), are provided with a monthly stipendthat enables them to devote themselves totraining and participation in sporting events.

"Bolsa Atleta" guarantees the developmentof athletes who were not able to obtain privatesponsorships. Since its implementation in 2005,the programme has invested approximately US$43 million in 7,259 young hopefuls. In additionto such programmes, the Federal Governmentinvests in developing sports infrastructurethroughout the country, with an emphasis on lessfortunate communities and public schools.

How important is the sports economy tomodern Brazil and how would you assess itscurrent strength and the issues it faces?Sports are a relevant economic activity withinthe entertainment industry in any moderneconomy, and the Brazilian economy is nostranger to that reality - in fact, sports havelargely profited from the country's recenteconomic strength and stability. The Rio 2016bid is a clear example. The amount of resourcesinvested in sports with massive appeal is verysignificant, making sporting entities and clubs'revenues more and more diversified over thelast years. Nowadays they go far beyond thebox office and involve TV rights, advertisingin stadiums and gymnasiums, privatesponsorships and product licensing, amongother sources of revenue.

Brazil has a solid structure of leagues andteams in sports such as football, volleyballand basketball, with a strong and traditionalpresence of private companies as sponsors. Thegovernment supports these and other sportsthrough a programme of tax incentives to privatesponsors. A law approved in 2006 allows taxbreaks to companies involved in sponsorship ofteams and athletes in individual sports. This lawhas had as a result the investment of additionalUS$ 60 million in sports in the last two years.

Why is it important to Brazil to host majorglobal sports events?Brazil and South America have what it takes tohost global sporting events and both the 2014FIFA World Cup and the 2016 Olympic andParalympic Games are excellent opportunities todemonstrate our region's social and economicevolution to the world, not to mention ourachievements in sport. Rio's bid to host the •Games has the potential to make Olympichistory by hosting the first Games ever in SouthAmerica in 2016.1 am personally committed

54 SportBusiness International • No. 145 • 05.09

Page 4: SPIRIT OF LATIN AMERICA - ESPMarquivosclipping.espm.br/clipping/20090522/spirit_of_latin_america-13.pdfSPIRIT OF LATIN AMERICA With a successful Pan American Games completed/a FIFA

INTERNATIONAL FOCUSBRAZIL

and I am doing my best to make it happen. Itwould be a historic decision for the IOC and onewhich I hope will be announced in October inCopenhagen. I am fully convinced that Braziland other developing coimtries are prepared andhave the right to welcome some of the world'smain sporting events. Time has come for Brazilto demonstrate that the country can host theOlympic and Paralympic Games in 2016, and Iam sure we will be up to the task.

Rio 2016 would allow South Americans totravel easily and be physically connected to theGames for the first time. It would provide aconnection to a new continent, new markets forsponsors and a link with 190 million Braziliansand 180 million young people across South

America. The Rio 2007 Pan American andParapan American Games provided us with greatexperience and proved our ability to organiseand host highly successful major sportingevents. Moreover, the USS2 billion investmentin infrastructure and sports venues for the 2007events has left us with a lasting legacy, which canbe used as a platform for our 2016 bid.

It is also important for Brazil to host majorinternational sporting events because ofwhat Brazil can bring to those events. Rio isa city blessed with God-given beauty', iconiclandmarks, endless sandy beaches, carnivalatmosphere and warm welcoming citizens - aperfect environment for the Olympic Family-athletes, spectators and TV viewers.

What commitment has your governmentmade to funding the sporting and supportinfrastructure necessary to stage these events?Our 2016 bid has the total support of all levelsof Governments. The Government will take thefinancial responsibility for hosting trie Olympicand Paralympic Games in 2016. We have giventhe IOC our full Government guarantees. Wehave a new Federal Fund of US$240 billionwhich will be used to fund new infrastructureprojects across Brazil and will be harnessed inour preparations for the Games. A wide rangeof Government funded programmes in supportof the Games, many already under way. willprovide the foundations for sustainable long-termdevelopment. The support from Governmentensures that the bid is not overly reliant on theprivate sector, a major benefit to our bid in thecurrent global economic climate.

Much of our investment programme to furtherimprove Rio's infrastructure and opportunitiesfor workers is already planned and underway,independent of the Rio 2016 bid decision.However, bringing the Games to Rio will helpfurther accelerate some of the improvements andincrease opportunities for the people of Rio.

It is also important to note that finance,infrastructure improvements and specificstadium renovations are also already ensuredand underway for the 2014 FIFA World Cup.These investments are a major strength for the2016 bid as we will spread our capital investmentover two substantial events and allow enhancedpreparation for 2016. With much of the sportingand infrastructure improvements ready by 2014,we can use the final two years of preparation totruly bring the Games alive across Brazil, ourcontinent and the world.

Which sports do you yourself follow?Whenever I have some free time I spend, a goodpart of it following sports on TV, at home butalso when I travel abroad. Like most Brazilians,I have a preference for football and a passion forCorinthians, my favourite club. In my youth 1was a welterweight boxer arid played football andwon medals in very competitive workers' futsaltournaments. Until recently, including in theinitial years of my Presidency, I used to organiseand participate in football matches with friendswithin the Government at weekends. AlthoughI noticed that after I took office my opponentsgave me more space and behaved better on thepitch! Given my age I decided to stop because Ifelt I should not risk affecting my performanceas President due to a football injury.

Recently my pastimes have included fishingand following sports on TV and since neither ofthese is on the Olympic programme, I fear mychances of taking part in the Rio 2016 Games asa senior athlete are very slim!

SportBusiness International • No.US - 05.09 55

Page 5: SPIRIT OF LATIN AMERICA - ESPMarquivosclipping.espm.br/clipping/20090522/spirit_of_latin_america-13.pdfSPIRIT OF LATIN AMERICA With a successful Pan American Games completed/a FIFA

THE LATIN TIGERThe sports marketing and TV markets in Brazil reflect the country's economy -still behind the big European and North American markets in terms of turnoverand professionalism - but growing faster than each of them in both sectors

ACCORDING TO RESEARCH fromPricewaterhouseCoopers GlobalEntertainment and Media Outlook:2008-2012, the Brazilian sportsmarket was worth $2.8 billion in2007 a figure predicted to rise to$3.9 billion by 2012, growing at arate of 6.7 percent.

The sports market consistsof gate revenues, rights fees,merchandising, sponsorships andother rights packages associatedwith sporting events.

And with the economicslowdown expected to be lesssevere in Latin America than in theUS and Europe, Brazil looks set forfurther growth in the TV rights andsponsorship markets, with young,affluent audiences and strongadvertiser revenue.

On the interntional stage, TheCopa Libertadores, Latin America'sChampions League, now sells TVrights in 135 countries, nearly threetimes the reach of just four yearsago. And Traffic, the Brazilianagency that sells the rights, hasmore than tripled revenues inthat period. Domestically, withstrong competition for top sportsproperties, fees are also increasing.

Brazil's 192 million inhabitantsare well-served by free-to-air andpay-channels alike, but only one inten of its 53 million TV householdssubscribes to pay-TV (still one of

the lowest penetration rates inLatin America). Brazil is, of course,home to Organizacoes Globo, oneof Latin America's most powerfulmedia groups, rivalled only byMexico's Televisa and Argentina'sClarin Group.

Globo is home to top-flightdomestic football through to 2011,the Fifa World Cup in 2010 and2014 and Formula One until 2010.It has recently faced a challengefrom rivals like Rede Record, keento move in on Globo's 60- to-70-per-cent audience share.

Record is owned by the wealthyevangelical church, the IgrejaUniversal do Reino de Deus, andrecently grabbed the TV rights tothe 2010 and 2012 Olympics andthe 2011 and 2015 Pan Am Games.

But Globo remains, handsdown, the dominant broadcasterof sport and of domestic football inBrazil, and recently won exclusiverights to all 6ve packages of mediarights to the Brasileirao, thenational championship, payingR$42o million per season.

Globo also holds the rightsfor regional championships thePaulista, Carioca, Copa do Brasiland Sul-Americana football.

Record has tried, without anysustained success, to snatch topdomestic football and Fifa WorldCup rights from Globo, but the

competition has certainly drivenup rights fees. Football - domesticand also foreign league football - isof course the dominant sport interms of both media rights feesand coverage in Brazil. But beyondthe beautiful game, motor racing(mainly Formula One), Xtremesports, volleyball, handball tennisand basketball all commandbroadcasters' attention.

Despite low penetration rates,pay-TV is growing in Brazil, withtelecoms giants Telefonica of Spainand Mexico's Telmex adding toGlobo's own cable platform Netand its DTH service Sky Brasil.

Many sports are accommodatedon Globo's two (and soon-to-bethree} SporTV-branded sportschannels as well as rival pay-sportschannels BandSports, ESPN andits domestic version, ESPN Brasil,which has 3.5 million subscribers.

For German von Hartenstein,Managing director, ESPN Brazil,"the last 20 years have seen abig development in the BrazilianPay-TV market, linked with theeconomic stability that the countryhas experienced. But it is importantto say that there is still a lot ofroom to grow.

"The Brazilian sports TVmarket as a whole has grownhealthier with a number of newplayers across different platforms

including TV, pay-TV, internet,radio and mobile. For example,ESPN Brazil shared coverage of thelast Summer Olympic Games andFIFA World Cup with other pay-TVchannels, knowing that there Isroom for more than one player toshow a big event to sports fans.

"We are feeling the economiccrisis and its impact in our clientsbehaviour. There is more internaldiscussion and evaluation beforeeach purchase decision, goodquality events and audience ratingsare more important than ever."

Von Hartenstein says that theprogress of the Brazilian marketwill, necessarily, track that of thewider economy.

"We believe that Brazil isin condition to face this stormwith fewer problems than othercountries in the world, but this stillneeds to be confirmed. The sportsthat are really gaining traction inthe Brazilian market are XtremeSports and tennis."

For ESPN Brazil, on of thepriorities for 2009 is to developits brand in the emerging media,mainly internet and mobileand von Hartenstein points to agrowing consumption of internetacross the country as a whole.

"Some 85 per cent of thenational traffic is centred on the bigfive portals and sports are numberone for all of them. For examplethe Brazilian X-Games produced byESPN in 2008 was the 2nd biggesttraffic generator event in (internetoperator) Terra's history."

58 SportBusiness International • No. U5 • 05.09

Page 6: SPIRIT OF LATIN AMERICA - ESPMarquivosclipping.espm.br/clipping/20090522/spirit_of_latin_america-13.pdfSPIRIT OF LATIN AMERICA With a successful Pan American Games completed/a FIFA

GROWING IN FERTILE GROUNDThe country's growing appetite for hosting major events is really propelling the Brazilan sportsmarketing industry forward. And the best news for brands, sport, and sports marketers alike isthat the Brazilian public is spectacularly responsive to sports marketing. By Kevin McCuUagh

THE POSITIVE RESPONSE fromthe Brazilian public to brandsthat sponsor sport means it isincreasingly viewed as a moreeffective and cheaper option thantraditional forms of advertising,says Jose Carlos Brunoro one ofthe biggest figures in the Braziliansports marketing industry.

And if anyone should, know,it is Brunoro, whose career hasseen him represent his country involleyball, manage the Brazilianvolleyball team to Olympic silver,negotiate one of the biggest dealsin Brazilian sports marketinghistory between football dubPalmeiras and Italian diarycompany Parmalat, and helpedcreate one of Brazil's newestprofessional football clubs, Pao deAcucar Esporte Clube (PAEC).

Brunoro says research has shownlhat the Brazilian public takescompanies which sponsor sportmore seriously, and that sponsorshipdeals have a major impact onpurchasing decisions. WhenSamsung ended its sponsorship oftop football club Corinthians twoyears ago, it suffered a 2o-per-centdrop in sales in the two monthsimmediately following the end ofthe deal. Unsurprisingly, the Koreanelectronics giant re-entered footballsponsorship, signing a new deal thisyear with the Palmeiras club.

Football is, of course, thebiggest sports marketing vehiclein Brazil, as a quick scan of thetable of the biggest deals (opposite)confirms. "Brazil lives and breathesfootball," as Brunoro says, buthe adds that other properties,including Brazilian Olympicathletes and teams, and thenational volleyball and basketballleagues, are providing marketingplatforms for companies that don'thave the budget to sponsor top-level football.

Brazil has. after all, a huge andincreasingly wealthy population-192 million, the fifth-largest inthe world - and the loth-largesteconomy globally and there are

60 SportBusiness International • No. U5 • 05.09

huge numbers to be reachedthrough avenues other than football.

Despite its burgeoning wealth,Brazilian society still suffers froma massive gap in opportunity andin living standards between thewealthy and the poor - a factor thathas itself played an important rolein sports marketing.

Sport is seen as a relief for thepoor, a way out of poverty for thetalented, and generally a socialgood. Sponsors are thereforeseen as doing something veryimportant for society by investingin sport. Companies sponsoringOlympic athletes especially benefitfrom this positive perception, asthe road to Olympic success forBrazilian athletes is a long anddifficult one in a country wheretraining and development facilitiesand opportunities have, in the pastat least, been thin on the ground.One of the main stated goals of theRio 2016 bid team is to create alegacy of facilities for the trainingof Brazilian athletes.

Brunoro says that no companysponsoring top-level sport in Brazilcan ignore investment in socialdevelopment programmes as afundamental of their sponsorship.

Such programmes include buildingfacilities or sponsoring youthdevelopment programmes indisadvantaged areas. In a countrywith grinding and widespreadpoverty, CSR is not just an optionalextra, or something that can bepaid mere lip-service to.

The opportunities providedby sport, and the rewards it canbring for pure talent, as opposedto a fortunate birth on the rightside of the tracks, contribute toa hugely emotional connectionbetween Brazilians and theirsport - the sort of connectionthat companies in the cynicalconsumer environments of Europe

and the US can only dream of.And Brazilian brands are rapidlycatching on. The sophisticationof their sports marketing effortsis improving. Electronics brandToshiba uses a single football shirtsponsorship to market a variety ofits product lines during a season,by changing what is presented onthe shirt. And spend on activatingsponsorships is increasing too, arare upward trend in this globaleconomy, says Jochen Losch ofTraffic Sports Marketing, one of thebiggest operators in the sector inBrazil. Losch says the last five to tenyears have seen the biggest growthin the industry.

Page 7: SPIRIT OF LATIN AMERICA - ESPMarquivosclipping.espm.br/clipping/20090522/spirit_of_latin_america-13.pdfSPIRIT OF LATIN AMERICA With a successful Pan American Games completed/a FIFA

And both Losch and Brunoropoint to major internationalevents hosted in Brazil as catalystsfor the industry. This began inearnest with the Pan-AmericanGames in 2007; now the WorldCup in 2014 is on the horizon;and the possibility remains of theSummer Olympic Games in 2016

being hosted in Rio de Janeiro.The ripples of these events moveforward and back through time.Brunoro says that preparations forthe 2or4 World Cup have startedin the media, in the building offacilities, in the training of peopleto organise the event and takeadvantage of the money-making

opportunities it presents. Oncethe competition is over, the legacywill extend beyond facilities andencompass greater expertise.

"Things like corporatehospitality do not currently existin Brazil," Losch explains. Butthe stadium business is on theverge of a revolution. Investmentin facilities will have to be paidoff, and there will be pressure tokeep them profitable, as is done inEurope and the USA.

"Uses will have to be found forthe new arenas for 350 out of 365days per year," says Brunoro, whoalso expects the legacy of 2014 toinclude greater professionalism inthe management of football clubs,

from providing better servicesand comfort for fans at stadiums,down to providing better trainingto prepare the thousands of youngboys who fail to make it at Brazilianclubs for life outside football.

Deloitte recently said that 2,000new jobs would be created in thesports business in Brazil by 2014, incoaching and athlete development,and on the legal and commercialside of sport. And Brunoro saysthat the sports business educationinfrastructure in Brazil is expandingto meet the demand. Three orfour universities in the countrynow provide courses on theadministration of sports businesses.This is still a small number for sucha large country - as the raw footballtalent that Brazil creates is exportedoverseas, it may yet have to importbusiness and professional talentrequired to fully staff its burgeoningsports business.

The Brazilian sports marketis certainly looking up, if froma low base. The Brazilians'passionate, emotional connectionto sport makes it fertile groundfor reaching consumers andit is heartening to see socialresponsibility already engrainedin the business. Sports marketingin Brazil has the opportunity toprovide something very positivefor a lot of disadvantaged people,and at the same time share in theirgrowing wealth.

SportBusiness International • No.145 • 05.09 61

Text Box
FRY, Andy. Spirit of Latin America, Sport Business International, London, n. 145, p. 52-61, May. 2009.