LaSource Newsletter - October Sports & Tech Round Up
Hello everyone,
Your round-up of the sports and entertainment industry is out!
In the October issue, you'll find everything you need to know about the new collaborations, activations and financial models developed by the leading sports and entertainment organisations.
We hope you enjoy it!
??? Trending news
Sports media company DAZN and pay-TV broadcaster Sky’s new five-year deal will kick in from 2024/25 and is reportedly worth a combined €4.5 billion (US$4.8 billion). DAZN is said to have offered guaranteed minimum revenue of around €700 million (US$744 million) per season for Serie A, while Sky’s bid is about €200 million (US$213 million) per season.
?? Our take:
This journey to come to this deal was not without challenges for Serie A and the broadcasters involved. Although not reaching the target price, the drop in rights fees doesn’t come as a surprise, considering the stagnating media rights market. It confirms that broadcasters are not the cash cow they once were. The relationship between the league and broadcaster needs to be reframed as a partnership rather than leagues "taking the money and running". In this sense, and albeit probably more a way to sell the deal externally, the revenue share element of the deal might bring the league and broadcaster closer to each other.
The deals are the end result of a sophisticated tender process which saw the Serie A rights being offered in a highly segmented way, a strategy different from those of the French LFP and English Premier League. The next step for Serie A will be to grow the international media rights, after investing in its internal sales expertise, aiming to create stronger direct relationships with broadcasters and leveraging its player legends to grow its brand value.
"The Serie A auction process serves as an example of the current difficulties rights holders are facing. Packaging strategy or let alone bluff, will not be sufficient to create competition or value. A collaborative ecosystem or partnership approach is the only way forward, we believe." - Leander Monbaliu, Partner and CBO
The 2027 Rugby World Cup in Australia will see 24 teams taking part, up from the 20 competing in the current edition in France; a new 12-team Nations Championship will start in 2026, with a 12-team second division and promotion and relegation being introduced from 2030
?? Our take:
Evolution is an essential element in the sports ecosystem. Today, we witness the emergence of new competitions and innovative sports formats alongside traditional sports. Sports organizations are driven by the need to stay relevant, attractive, and globally appealing, particularly for certain sports, such as Rugby, that do not have the global allure other sports, such as football, have. This necessitates a shift from the existing status quo, which may have hindered growth.
The expansion of the Rugby World Cup and the introduction of the 12-team Nations Championship represent World Rugby's endeavour to expand the sport's horizons, attract new enthusiasts, and enhance its overall popularity. This expansion opens doors for countries that have yet to reach the sport's highest level. The 12-team Nations Championship follows the footsteps of football's European Super League project and cricket's former competition, the Champions Trophy. It invites the best teams to compete more frequently, fostering greater engagement and fan retention, thereby promoting holistic growth in the sport.
Nonetheless, this decision may leave some countries feeling excluded from this new bi-annual international Rugby competition, raising concerns about the support provided to less established nations in the sport.
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