March/April 2010 edition


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  David Haye, The Hayemaker does it again and sets himself up as the champion, and the man to champion the return of great heavyweight boxing bouts. He plans another four fights with each of the current 'heavyweights' before his retirement. Tiger Woods returns to Augusta after leaving rehab. Following a teeth-grinding session with the press he is getting mixed 'reviews. Although he placed joint fourth (11 under par) he appeared 'unhappy' that Phil Mickelson claimed his third Green Jacket (16 under par). David Beckham looks set to have more of an 'on the bench' role in the upcoming Soccer World Cup.  The Winter Olympic Games in Vancouver have been described as a success as follows: "The Comeback Games".  Formula One's Bernie Ecclestone plans an expansion of the F1 calendar with a possible three locations for a circuit with Manhattan as the background. He is targeting a maximum twenty races across future seasons that will breathe new life into a recently rejuvenated sport.  Cambridge University were the unexpected winners of this year's Oxford v. Cambridge Boat Race. Michael Schumacher's return to F1 at the age of 41 years has been dogged with problems but only the brave have written him off.  While the Cheltenham Festival was a great success and the Grand National meeting at Aintree is one of the great races on the racing calendar, UK based Animal Aid has claimed that more than 500 race horses have died in the past three years after either collapsing on the course or being put down after bad injuries.  Manchester United fans are continuing their protest against American owners, the Glazer family, as the green and gold colors of the team's original stripe (when the club was called Newton Heath) dominate in the crowd, with few red flags in evidence. Team GB brought home just one medal from the Vancouver Olympics as Amy Williams won gold in the women's skeleton. In sharp contrast, the Canadians topped the medal chart in their capacity as host city. But will Team GB in 2012 emulate Canada's success by bettering their Beijing 2008 position of fourth? International ticket scalps cleaned up in Vancouver as events were cancelled and rescheduled due to weather. Capitalizing on lax Canadian law, the touts also made fortunes on the Canada versus USA men's Ice Hockey final.  Wayne Odensik faces a two-year ban for importing a performance enhancing substance.  The South-African Born, Florida based tennis player ranked 98th in the world pleaded guilty and was fined around US$7,000 plus costs in a court in Brisbane, Australia. The offence carries a minimum 2-year ban. Bruno Senna, nephew of the great Ayrton Senna debuts at this season's F1 and adds a certain glamour to the line-up of talent.

spotlight on:  money talks? 


The Deloitte Football (Soccer) Money League – 2008/09 revenue
1 (1) Real Madrid €401.4m
2 (3) FC Barcelona €365.9m
3 (2) Manchester United €327.0m
4 (4) Bayern Munich €289.5m
5 (6) Arsenal €263.0m
6 (5) Chelsea €242.3m
7 (8) Liverpool €217.0m
8 (11) Juventus €203.2m
9 (10) Internazionale €196.5m
10 (7) AC Milan €196.5m
Note: figures in bracket show 2008/9 ranking)

Latest annual figures show that Real Madrid's breaking the Euro 400 million mark was primarily due to its annual broadcast revenue which exceeded 160 million euros.  As a result, the club topped Deloitte's list of the 20 leading football clubs by revenue, beating Spanish rivals Barcelona into second place; while Manchester United dropped to third place from it's second position in the previous year.

Another Spanish club - in this case FC Barcelona - enjoyed similar unprecedented on-pitch success, including winning a domestic double and the Champions League.  This all played a key part in its year-on-year €57 million increase in revenues - the largest absolute increase of any Money League club.

And although overall it was a great year for the beautiful game - which often benefits from the World Cup 'coat tails' - the news is not all good.

Aspects of the global recession still have potential long-term negative implications ,as illustrated by the performance of the Brits which is 'a story of one tale': the fall of the pound against the euro and its impact.

An example of the mixed fortunes in the UK illustrates the point:  Manchester United has been told by financial advisers to expect a sharp drop in their match-day revenues over the next two years equivalent to an annual 11 percent fall, according to JP Morgan forecasts.

United was the only Premier League club to increase their season-ticket prices for the 2009-10 season and the club has recently confirmed that ticket prices will be frozen between £27 to £49 for the 2010-11 season.  A double whammy!


hot spot: and the legacy 'value'

The International Research Colloquium on Mega-Event Sustainability held this year at the Sandton Convention Centre in Johannesburg, South Africa served as a side event to an International Summit on the same theme, co-hosted by the United Nations World Tourism Organization and the South African government.

Economists, social scientists and practitioners at the Colloquium got together to discuss how to evaluate the financial impact of major events and the best methodologies used to calculate the financial outcome.

While it is clear that tangible/intangible and direct and indirect revenues generated from hosting large scale events need to be counter-balanced by the cost involved in organizing such events; it is also essential to calculate the impact that these large scale investments may have on an overall economy.

With elements such as the short, medium and long-term effects on destination marketing strategies; the number of new visitors to the city/country; and the increased visibility and awareness of the destination via TV/Internet ratings all combining, it may seem impossible to calculate an accurate 'valuation' of the overall impact of hosting such an event; however, it should be said that there are many measurable 'elements' that can be calculated over defined time periods.

For example, the recent Winter Olympics were covered by the BBC in the UK, to a limited extent.  It was only towards the end of the coverage that the BBC transmitted 'pictures' of the crowds and the fans - particularly in Vancouver.  This showcased just how much was going on in the city during the Games and the enthusiasm of both the local and international visitors to the city.  As for the Paralympics which followed a few weeks later it was almost a BBC 'no-show'!

The International Research Colloquium on Mega-Event drew attention to a number of concerns regarding the 2010 World Cup in South Africa:
These included topics such as whether locals and nationals would be able to afford tickets; whether they had access to purchase online; the extent of the environmental impact; whether local business would benefit; how any benefits might be measured; long-term legacy; and to what extent South Africans had been consulted on whether they supported the investment.

The dominant 'legacy-related' issues remain at the top of the agenda for all host city/countries.  In a more sophisticated economic environment there are many tools which can be used to estimate 'impact'; but in other economies - such as South Africa - it is unlikely that the resources will be made available to take advantage of the many measurement techniques on offer either before or after the event.  Take Greece as an example!

hot shot:
service on and off the court

If you are looking for that special Wimbledon experience look no further than tennis with a fine dining experience.  A new roof over Centre Court has led to additional facilities for the 'discerning' All England Club spectator... so why not treat yourself to a Gatsby Package.

The Gatsby Club package sets the tone for the new look Wimbledon with a delicious three course/three choice menu accompanied by matching fine wines.  Designed by Chef Albert Roux who was responsible for opening the first Michelin starred restaurant in London, Le Gavroche - and one of this editor's favorite restaurants - The All England Club is now upping the ante.

The Gatsby Club will offer private tables for two to fourteen guests, with private areas for 100 guests or more.
The package also includes an Official court ticket (of course); champagne reception; complimentary bar; a traditional Wimbledon afternoon tea with strawberries and cream; plasma television screens to keep guests informed of play; a garden area where you can relax and unwind; a Business Lounge with wifi access; air-conditioning for those hot? English summer days; and much more including a commemorative VIP pass and documentation.......

In addition, tennis celebrity speakers will be adding a little 'insider knowledge' to this quintessentially British occasion. Contact Keith Prowse for further details.

 
sidelines: shared agendas

After reviewing the impact of new media, tweets and blogs etc. as well as new distribution platforms, the IOC opted to go to market with what it calls a “Gatekeeper’s Package,” which lumps all media rights from television to broadband to mobile in a single package. Typically, that means all media rights in existence today and any applicable in the future.

While the International Olympic Committee remains noncommittal about the date when it will accept US bids for media rights to the 2014 and 2016 Olympic and Paralympic Games it remains convinced that the all-encompassing package 'model' will bring about the best financial returns.

American network executives have encouraged the IOC to sell one big package of rights, while at the same time leaving the door open to sub-license digital and mobile assets to other companies.

Although many of the TV networks are used to a split between traditional media and digital - such as in the case of the NFL and Major League Baseball that manage and monetize their own digital assets - the IOC's 'one-off' events culture does not realistically support an  infrastructure which can handle its own digital assets.

The IOC was expected to start negotiating the US rights for 2014 and 2016 immediately after the Beijing 2008 Games; however, the economic climate did not favour the 'seller' and so the IOC have very wisely delayed any discussion until they deem that they can get the biggest bang for their bucks.

Their cautionary approach will be based in part on their observation of upcoming events:
1. The NCAA has an option to exit its contract with CBS for the NCAA men’s basketball tournament, and has drawn interest from many of the same networks that are showing interest in the Olympics. 2. Comcast’s planned acquisition of NBC, which is going through the regulatory approval process and should be completed by early next year.

IOC President Jacques Rogge expects the rights to increase from the US$2 billion NBC paid for 2010 and 2012 Olympic rights; but it is unlikely that the increase will be either significant or spectacular; particularly in the light of the not insubstantial potential losses incurred by NBC during their coverage of the Vancouver Games.

And money is not the only factor in the decision-making mix. IOC values increasingly play their part in rights negotiations, as the organization considers the potential broadcast partner’s ability to relay Olympic values of peace and good sportsmanship alongside event coverage.  This 'soft' ingredient may prove difficult to define and or quantify, but may prove the essential differentiating component for 'doing the deal'.

fashion icon: another new fundraising challenge

In a gripping contest between 16 sports journalists, the tension was palpable as first on the buzzer Olympics quiz found a winner.

Quiz master Sir Steve Redgrave kept the contestants in check for a dramatic round of speed to launch a nationwide search for the UK’s expert in all things Olympic and Paralympic.

The Games Brain of Britain is the ultimate test of Olympic and Paralympic Games knowledge. It will challenge Olympic and Paralympic buffs and sports fans alike to determine who deserves the title of the UK’s expert on the Olympic Games and Paralympic Games. As the countdown to London 2012 gathers pace, there’s a chance to take the challenge online or by visiting the Games Brain of Britain roadshow.

Fronting the campaign are three champions: Olympic Games legend Sir Steve Redgrave MBE; Paralympic wheelchair athlete and gold medallist David Weir MBE; and World Champion gymnast Beth Tweddle MBE.

The quiz is available to play online at national-lottery.co.uk/gamesbrain and made up of three rounds of five questions, answered against the clock, which get progressively harder as players move through the test. Competitors who complete the quiz in the fastest time will be chosen to take part in a national final where they will pit their wits against each other for the chance to be crowned the Games Brain of Britain – and win a holiday of a lifetime to the Olympic Games host city of their choice.

The press event also celebrated the success of The National Lottery's role in raising funds for the Games. With just over two years to go until the London 2012 Games 'kick-off' the Lottery has raised £500 million through sales of its specially designated games.

In total, The National Lottery aims to raise £750 million for London 2012; with all the 'Good Causes' money raised going towards the forthcoming Olympic Games and Paralympic Games – as part of a wider lottery contribution of £2.2 billion.

home and away: wherever you may be watching!


The Stadium in Johannesburg

sport culture:
the mascot

Shera, mascot of the XIX Commonwealth Games 2010 in Delhi, India is the most visible face of the event.
The name comes from the Hindi word 'Sher' – meaning tiger.

Shera truly represents the modern Indian. An achiever with a positive attitude, a global citizen but justifiably proud of it's nation’s ancient heritage, a fierce competitor but with integrity and honesty. Shera is also a ‘large-hearted gentleman’ who loves making friends and enthusing people to ‘come out and play’.

In Indian mythology, the tiger is associated with Goddess Durga, the embodiment of Shakti (or female power) and the vanquisher of evil. She rides her powerful vehicle – the tiger – into combat, especially in her epic and victorious battle against Mahishasur, a dreaded demon.

Shera embodies values that the nation is proud of: majesty, power, charisma, intelligence and grace. Athletic prowess, courage and speed on the field are also legendary characteristics, as well as drawing attention to environmental issues such as our responsibility towards the protection of the ecosystem.

For more about the Games see Commonwealth Games quiz to your top right.

starting blocks: the handover

Think back at the red London bus in Beijing at the handover for the Olympic Games and Canadians must be grateful that the handover from Vancouver to the Russian city of Sochi had a 'Cirque du Soleil' look and feel. Glowing, transparent spheres of varying sizes - known as Zorbs - told the story of Russia's first Winter Games scheduled for 2014, part of “a gateway to the future” theme to connect the Games to the rest of the world.

Russia intends to make Sochi a four-season destination; and most of the facilities are currently under construction.  The plan is to have nearly all facilities ready by 2012 for two years of event testing - not dissimilar to Vancouver.

The Black Sea resort area of Sochi nicknamed the “Russian Riviera” is according to its native son Chernyshenko, the country's “most popular summer tourist destination” with a “subtropical climate, long beaches and palm trees.”

The waterfront city of almost 400,000 will host the “coastal cluster” of ice events, all in a secure perimeter, including a stadium for the opening ceremony, athlete and media villages and the broadcast center. Thirty miles inland is the “mountain cluster” which will provide the 'alpine' climate, venues and infrastructure.

During a press conference ahead of the eight-minute handover ceremony between Vancouver and Sochi, Russia, Dmitri Chernyshenko, CEO of the organizing committee, had a little trouble explaining zorbs.

Despite PowerPoint slides showing the zorbs that appeared in the closing ceremony he was unsure of the derivation of the term: “I don't know how to translate it. If somebody knows, please advise me.”

But Sochi need look no further than the London area where 'Zorbing' has been a past-time for around 10 years as illustrated by Pod London which sends one or two brave souls down a grassy path in a large see-through ball.....

Perhaps, upon reflection, the London 2012 handover in Beijing should have considered taking zorbs to China - rather than a solitary red London bus!

life after -   tape delay

More than 170 million people tuned into NBC to check out the action in the mens ice-hockey final.
Canada’s thrilling overtime victory against the United States was the must-see highlight of the coverage of the Vancouver Olympic and Paralympic Games.  And while the Games were seen as a great success, the economics of the broadcast coverage seem less attractive.

Despite the fact that Vancouver is in the same timezone as the West Coast of the USA and only a maximum 3 hour time difference for East Coast viewers, the broadcaster practiced a tape delay policy rather than airing the action 'live' which maximized access for the US market.  Coverage was scheduled for primetime and in the case of Pacific Time the time delay amounted to as much as five hours. 

This policy may have proved practical and profitable for advertisers but was it a wise decision when viewers are now offered a smorgasbord of delivery platforms?

At a cost in the region of US$820 million, NBC are now looking at a Canadian projected loss of upto US$200 million. And when NBC crews hit London in 2012 - having paid well over the US$1 billion mark - they will be dealing with significant time differences of between five and eight hours between the UK and the USA.

While London 2012 will be doing its best to accommodate the US market by scheduling many events to coincide with the USA's peaktime time difference - the US market often dominates in negotiations when it comes to global sporting events - the monopoly platform coverage that once existed is just a distant memory.

So the 'big' question remains: "How to maximize your audience and ad revenues while at the same time offering as much live content as possible?"

Scheduling all the events that take place simultaneously during the Summer Games - plus commentary, features and news round ups - can be a challenge when a broadcaster has only one channel available; but when you have a 'choice' of TV channels as well as online sites and other feeds, scheduling coverage can either be a blessing or a logistical nightmare.

In Vancouver, weather conditions left the broadcasters juggling their coverage to take into account the rescheduling of events; and there is always the possibility that inclement weather in the UK will result in some real-time time delays.  But NBC now has a tangible choice. Sell packages for each distribution platform/channel or give advertisers the opportunity to bulk buy specific events. 

If all goes well, the concept of time delay may be relegated to the history books as broadcast, computer, mobile and public screens replace the previous 'low-tech world' ...

While broadcasters calculate their costs and projected revenues in an ever-changing, dynamic comms world live coverage alongside replays will become the must-have solution of the future.

The trick will be to maximize revenues and minimize costs as the media continue to develop the perfect, flexible financial model - and that will prove good news for everyone!

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