Gold for Gold: The Race for Equity and Digital Dominance in Sports

Welcome back to your weekly dose of Tech in Play, the newsletter that takes the pulse of technology in the sports world. This week, we’re sprinting into the future with World Athletics’ groundbreaking decision, leaping over the business hurdles in collegiate sponsorships and broadcasting our cheers for innovative ad strategies. Let’s dive in!

Feature Story: Sprinting Towards Equity?

World Athletics will offer $50K per gold medal won in Paris, and will extend prize money to silver and bronze at LA28 Games. Long overdue. - Michael Johnson

Track and field athletes striking gold at the Paris Olympics will now have their pockets jingling with more than just medals. World Athletics is stepping off the traditional track, allotting $2.4 million from its IOC revenue to reward gold medalists with $50k prizes. This marks a seismic shift from the Olympics' relationship with bonus payouts from governing bodies and raises questions about fairness in the sport - at minimum, it clearly blindsided the IOC.

“The IOC redistributes 90% of all its income, in particular to the National Olympic Committees and International Federations,” it said. “This means that, every day, the equivalent of $4.2m goes to help athletes and sports organisations at all levels around the world. It is up to each IF and NOC to determine how to best serve their athletes and the global development of their sport. - IOC

While some see World Athletics's rewarding winners with monetary rewards as commendable, critics view it as another example of the underlying challenge of how the Olympics distributes its riches . Particularly in a sport with seemingly few barriers to competition and within the context of its most visible sporting event, they argue that this move goes against over a century of Olympic tradition.

“If I thought athletes were only competing because there was a financial pot at the end of the day, then I might take a very different view – but they are not,” said Coe. “I think this gives them a little bit more skin in the game.” - Sebastian Coe

Our take?

The actual gold lies in investing in the athlete-fan connection, strengthening the personal brands that can vault beyond any revenue-sharing model. Governing bodies at both the international and national levels continue to miss the mark in choosing to debate the distribution of table scraps instead of promoting some of the sport's most extraordinary stories to a casual but engaged audience that is desperate for them.

Investments in deep fan engagement would result in life-changing exposure for many of the Games' athletes, well beyond the revenue from a single event. This includes those who prefer to simply have the chance to train and compete at the world's highest levels regularly. Implemented correctly, the sport would see exponential returns in investment in bidirectional fan-athlete experience, drastically increasing the competitive landscape, quality of play, and entertainment value.

The sports tech community will continue to push the limits of athlete and fan experience to illuminate what is possible on the world's biggest stages. Still, until the governing bodies change the conversation, the altitude of the discussion will require the most significant levels of innovation.

Leadership in Tech: Riding the Digital Wave

Surf's up for the World Surf League as they onboard Riot Games’ Ryan Crosby as their new CEO. His mission? To navigate the digital currents and leverage the sport’s Olympic spotlight. Crosby’s appointment is a strategic play, aiming to bolster the League’s digital presence. It's a testimony to the importance of digital-savvy leadership in sports tech today, proving that you need someone who knows the digital tides to ride the big waves.

News Roundup:

• Under Armour's Misstep: Auburn University’s equity gamble with Under Armour didn't quite hit the mark, underscoring the volatility of sponsorships in sports. The retailer's plunging stock price had a material impact on the overall value of the deal, causing Auburn and it's Top-10 Power Five budget to rethink its partner moving forward. Auburn's uniform change to Nike highlights the complexity of sponsorship agreements in major sports and the need for clear data in the decision-making process.
• NBC’s Olympic Win: NBC Sports aims for a podium finish with a projected $1.25 billion ad revenue from the upcoming Paris Olympics . Their "Prime Pods" strategy is a testament to evolving ad tech and consumer engagement in sports broadcasting. By banking on a deeper connection with viewers in 30-minute blocks, the network creates ad buys that align with casual fans' desire to be a part of the story. Expect fan personalization to play a significant role in the potential of "pods" like these in future Olympics.
• NFL’s Brazilian Play: The NFL is touching down in Brazil with the Eagles vs. Packers game, capitalizing on the country's fervent fanbase. It’s a strategic move to tackle new markets and a touchdown for international sports expansion.
• NHL’s New Terrain: The NHL’s Coyotes are set to become Salt Lake City’s new winter warriors , a stark reminder of the complex dance between sports franchises and city agreements. Sticking with this week's theme is another example of the challenge today's professional market faces regarding club valuations and operational revenue projections.

Closing Thoughts: Tech in sports isn't just about the glitz of gadgets and analytics. It's also about the robust and sometimes risky business decisions that shape the industry. From World Athletics’ payout plans to NBC's advertising strategies, technology is the silent playmaker in the sports arena. It drives decisions across athlete performance, fan engagement, and revenue growth - but as we saw in this week's news, not everyone chooses to use it in the face of great emotion.

As for us, we're here to dissect these moves, ponder their implications, and ultimately, learn from them. Until next week, keep your game strong and your tech stronger.