Sports Business RESET: Fit for Future

Sport and Entertainment is as competitive off the “pitch” as it is on it. In order to remain in the game , a sport or a club , needs to be able to read the landscape and how and where it is moving to and develop strategies which enable the delivery of the right product at the right time and in the right way. The leaders of sports businesses need to take a breath at points, away from the continuously business demands? to understand to consult, consider and predict what their future environment will be and then how to punch a hole it.

Doing the same thing , week , month and year, in and out , will not protect and grow the business when the tectonic plates move, reshape and realign around you. Broadcast, Customer Engagement , Consumer Content, Product, Medical Science, Politics and much more, all play into direction of travel, and clubs and sports need to be able to react and RESET to grow market share.?

To RESET of course, leaders need to have the confidence of stakeholders to such a degree that they will follow a suggested course of action. These stakeholders will be making decisions based on their own interests and needs. Developing these strategies and taking stakeholders on the journey is how to RESET and make sports businesses successful and Fit for Future. Leaders live and die on their ability to achieve positive change.

Global 13 has the expertise and experience within its ranks with proven track records in achieving these RESETS on both domestic and international stages that have delivered highly successful directional change at club and whole sport level . Global 13 can deliver the support to leaders required to help them see the market and reshape.

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Dynamic Environment and Strategic Planning

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In the sports and entertainment industry, navigating a dynamic environment is imperative for organisations looking to remain competitive and relevant. This dynamic landscape is characterised by a multitude of factors that continually shape and redefine the industry's trajectory. Technological advancements stand as one of the foremost driving forces. Innovations such as high-definition broadcasting, virtual reality experiences, and the growth of esports have revolutionised how fans engage with sports and entertainment content. Staying attuned to and adopting these technologies is essential for enhancing fan experiences, improving player performance, and generating revenue. Consumer preferences, global events and environmental sustainability considerations represent other dynamic aspects. Fans now demand personalised experiences, easy access to tickets, and immediate content availability through digital platforms. High profile events like the world cup require meticulous strategic planning and sports organisations are pushed to adopt ecofriendly practices across their operations.

Strategic planning begins with a comprehensive market analysis, enabling organisations to gain a deep understanding of the competitive landscape, audience demographics, and emerging trends. Armed with this knowledge, organisations can conduct a SWOT analysis, identifying internal strengths and weaknesses, as well as external opportunities and threats. This analysis informs the setting of clear, measurable goals, aligning with the organisation's mission and vision.

Diversification emerges as a key element in strategic planning, with sports organisations seeking to mitigate risks associated with over-reliance on a single revenue source. By diversifying into areas such as merchandise sales, digital content creation, or expanding into new markets, organisations can enhance financial stability. Furthermore, innovation and technology play pivotal roles, as organisations embrace cutting-edge solutions to engage fans, optimise player performance, and streamline operations. The strategic planning process also encompasses risk assessment, long-term vision crafting, stakeholder alignment, and the crucial traits of flexibility and adaptability, ensuring that organisations can thrive in a competitive and ever-evolving industry. Ultimately, strategic planning serves as the compass that guides sports and entertainment organisations through the dynamic landscape, enabling them to set and achieve their objectives while staying ahead of the curve.

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Stakeholder Engagement

?Stakeholder engagement is a pivotal component of the Sports Business RESET strategy. In the sports and entertainment industry, stakeholders encompass a wide array of individuals, groups, and entities, including fans, sponsors, investors, athletes, employees, governing bodies, and the broader community. Effectively engaging with these stakeholders is crucial for the long-term success and sustainability of sports organisations.

Regular and transparent communication is at the heart of effective stakeholder engagement. Whether through newsletters, social media, press releases, or direct interactions, keeping stakeholders informed builds trust and reduces uncertainty. Different stakeholders have unique needs and interests. Tailoring engagement strategies to cater to these differences demonstrates a commitment to understanding and meeting stakeholder expectations.

Further, encouraging feedback from stakeholders allows organisations to understand their concerns and expectations better. Surveys, focus groups, and online forums can provide valuable insights into fan preferences, sponsor objectives, and investor concerns. It's not enough to listen; organisations must take action based on stakeholder feedback. Addressing concerns and implementing suggestions shows a willingness to adapt and improve. Building enduring relationships with stakeholders is a strategic advantage. Consistent, respectful, and mutually beneficial interactions create loyal stakeholders who are more likely to support the organisation in the face of challenges.

-???????? Football clubs regularly engage with fans by sending out surveys to fans asking for their opinions e.g ‘on a scale of 1-10, how was your overall experience at the stadium’.

-???????? New York Knicks have spent millions of dollars on various star players including Carmelo Anthony, Amar’e Stoudemire, Derrick Rose and Stephon Marbury, yet the Knicks have really gotten nowhere. When you add his treatment of fans and retired players at games and firing an executive of the team after she complained about sexual harassment with the coach, the NBA may need to force a reset. The stakeholder engagement is simply not there.

-???????? New York will always be seen as an epicentre of the sports world with Madison Square Garden. The ship needs to be straightened and the reset button pressed.

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Market Share Growth

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Expanding market share in the sports and entertainment industry involves a comprehensive strategy that focuses on engaging and retaining fans while exploring new avenues for growth. A central pillar of this effort is fan engagement, where sports organisations seek to foster a deep and loyal connection with their audience. This entails interactive experiences, active participation on social media platforms, and personalised communication to keep fans deeply engaged, even when they are not attending events in person. Digital content creation plays a pivotal role in reaching a broader audience. Sports organisations are increasingly becoming content creators, producing high-quality video content, behind-the-scenes features, and exclusive interviews with players and coaches. This rich digital content attracts and retains fans, ensuring their ongoing support.

Expanding the sale of team merchandise and licensed products is another avenue for growth. Effective branding and marketing campaigns make team merchandise highly sought after among fans, contributing to increased revenue and market share.

Global expansion is a strategic imperative for sports organisations seeking to extend their reach and influence beyond domestic markets. This approach involves a multifaceted approach aimed at introducing the organisation to international audiences and establishing a significant presence abroad. One of the primary ways sports organisations expand globally is by hosting international events or competitions. For instance, renowned leagues like the NBA and NFL have organised games and events in countries outside their home turf. These events serve as opportunities to showcase their sport and the organisation itself, creating a buzz and generating interest in new markets. Forming partnerships with international entities is another key strategy. Collaborations with overseas sports clubs, businesses, or organisations can include joint marketing campaigns, cross-promotions, or even player exchanges. These partnerships leverage local resources, knowledge, and reputation to establish a foothold in foreign markets.

Investing in youth and grassroots initiatives not only develops young talent but also creates a new generation of loyal fans. Data-driven decision-making, competitive success, and constant adaptation to emerging technologies are further keys to sustained market share growth. In sum, addressing fan engagement, digital content, merchandise, global reach, partnerships, in-stadium experience, community involvement, data insights, on-field success, and innovation, enables sports organisations to expand their market share and build a lasting market presence.

-???????? The global sports market grew from 1.8 trillion SAR in 2022 to 1.9 trillion SAR in 2023 at a compound annual growth rate (CAGR) of 5.2%. The sports market is expected to grow to 2.3 trillion SAR in 2027 at a CAGR of 5.0%.

-???????? PWC predicts continued growth in eSports revenue from 2022’s 1.7 billion SAR, reaching 2.5 billion SAR in the US by 2027. This will cover all facets, including consumer ticket sales, sponsorship, streaming advertising, consumer contribution, and media rights.

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Fan Engagement

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Fan engagement is a cornerstone of the Sports Business RESET strategy, and it holds profound implications for sports organisations seeking to thrive in the competitive landscape. Fans are the heartbeat of any sports entity, and fostering a deep, enduring connection with them is central to long-term success. This section explores the nuances of fan engagement within the RESET framework and delves into strategies and approaches that modern sports organisations employ to win the hearts and minds of their supporters.

Engaged fans are more than just spectators; they are loyal advocates. They attend games, purchase merchandise, follow their teams avidly, and provide consistent support. Building a loyal fan base enhances revenue and bolsters the organisation's presence in the market. Engaged fans are willing to invest in the team, whether by buying season tickets, merchandise, or subscribing to digital content. This steady revenue stream provides financial stability, reducing dependence on sporadic income sources.

Sports organisations are increasingly focusing on creating interactive fan experiences, both in-stadium and online. These experiences range from augmented reality games at venues to live chats and Q&A sessions with players on social media. The digital age demands constant content creation. Organisations are now content producers, offering behind-the-scenes glimpses, exclusive interviews, and highlight reels. High-quality digital content keeps fans engaged even when they are not attending games.

Listening to fan feedback remains paramount in this fan-centric approach. Through channels like surveys, focus groups, and online forums, fans can voice their preferences, grievances, and expectations. What distinguishes successful organisations is their commitment to translating this feedback into concrete actions. By promptly addressing fan input, sports organisations demonstrate responsiveness and unwavering dedication to meeting fans' needs. Additionally, sports organisations actively engage with their local communities through initiatives like youth sports programs, charity events, and educational outreach. These endeavours not only strengthen community ties but also contribute positively to the organisation's image, reinforcing its status as an integral part of the regions it serves. Lastly, data analytics plays a pivotal role in understanding fan behavior, preferences, and emerging trends. This data-driven approach permeates various facets of the organisation, informing marketing strategies, ticket pricing, and fan engagement efforts. By harnessing the power of data, sports organisations can fine-tune their initiatives to maximise fan satisfaction and ensure that every interaction resonates with their diverse and passionate fan base.

-???????? The Fan Engagement market size is projected to be worth 19 billion SAR in 2023. The market size is likely to surpass 102 billion SAR by 2033 at a CAGR of 17.9% during the forecast period. The need for effective fan engagement strategies has become increasingly important as the competition among sports teams and entertainment properties becomes more intense.

-???????? A Deloitte report on ‘Say goodbye to the off-season: Engaging sports fans year-round’ stated that ninety-five percent of fans today have some form of interaction with their favourite team or league in the off-season

-???????? More than 60 percent of fans say a great “year-round experience” would make them more likely to be more engaged with the team in the coming season, and 55 percent say it would make them more likely to purchase a

ticket in the future.

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Leaders in Sports Business RESET

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-???????? David Lloyd is an athlete who’s brand has become more famous than his sports career.

-???????? Back in the 70s, he was a professional tennis player. At the peak of his sports career, he reached the semi-finals of the Wimbledon doubles in 1973.

-???????? When he retired in 1981, he decided to diversify and set up his own leisure centre. This soon evolved into a successful chain of leisure centres across the UK and Europe. David Lloyd has since sold the company and retired, however, the name lives on and there are currently 122 clubs across the continent.

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-???????? Kobe Bryant enjoyed a successful 20-year career playing basketball for the Los Angeles Lakers. He retired from the NBA in 2016, however even before his retirement from sports he was already pursuing business ventures on the side.

-???????? In 2013, he launched brand development company Kobe Inc to help aspiring athletes. Shortly after this, he helped launch an investment platform for startups with Bryant Stibel. On top of this, he established various philanthropic foundations including the Kobe and Vanessa Bryant Family Foundation (helping young people to find sports mentorship) and the Soong Ching Ling Foundation (helping provide education to youth in China).

-???????? Were it not for his tragic untimely passing in 2020, he would no doubt have pursued many more business ventures.

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-???????? Venus and Serena Williams are both tennis legends. However, the two sisters are also successful business magnates.

-???????? Venus Williams is the owner of an interior design company VStarr interiors. She is also CEO of an athletic wear brand called EleVen.

-???????? Serena Williams meanwhile owns a clothing line S by Serena. She is also CEO of Serena Ventures, an investment company that helped launch 34 startups.

-???????? They both also have part ownership of the Miami Dolphins and UFC.

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-???????? Tony Hawk is arguably the most famous professional skateboarder ever. This is not just the result of his skateboarding career, but his many business ventures.

-???????? On top of founding Birdhouse Skateboards, he is the owner of his own line of Tony Hawk clothing apparel. He is also the founder of The Skatepark Project and has appeared in 900 films.

-???????? However, his most famous entrepreneurial achievement is the Tony Hawk video game series – since the release of the first game Pro Skater in 1999, it has become one of the most successful video game franchises of all time.

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Sports Business RESET in KSA

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In recent years, Saudi Arabia has made substantial investments in sports infrastructure, including the construction of modern stadiums and sports facilities. These endeavours are part of a broader strategy to host international sporting events, attract global talent, and promote sports at all levels, from grassroots to professional. The country has already welcomed major boxing matches and motorsport events, drawing international attention and contributing to the burgeoning sports tourism sector.

Saudi Arabia's Vision 2030, a comprehensive plan aimed at diversifying the economy and enhancing social development, also includes initiatives related to sports and entertainment. These initiatives are designed to improve the quality of life for citizens and residents while creating investment opportunities in the sports and entertainment sectors. Furthermore, there has been a growing emphasis on developing local sports talent and nurturing homegrown athletes. Investments in youth sports programs and academies are part of the broader effort to enhance the country's sporting capabilities.

Saudi Arabia is actively involved in various aspects of the sports business, reflecting a commitment to the growth and diversification of its sports industry. As the global and regional sports landscape continues to evolve, Saudi Arabia is poised to play an increasingly significant role in shaping the future of sports in the region.

-???????? Total revenue in the Sports business market in KSA is expected to show an annual growth rate (CAGR 2022-2027) of 12.13%, resulting in a projected market volume of 15.4 million SAR by 2027.

-???????? The Sport Events market in Saudi Arabia is projected to grow by 3.97% (2023-2027) resulting in a market volume of 1 trillion SAR in 2027.

-???????? Saudi Arabian government has hit reset in an attempt to diversify their economy by turbocharging its sports expansion efforts with the launch of a multibillion-dollar investment company.

-???????? The sports group, which will reportedly be part of the country’s 2.4 trillion SAR Public Investment Fund (PIF), will have a war chest to further fund Saudi Arabia’s march into sports, following high-profile investments in the likes of soccer, golf and boxing.

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Ralph Rimmer

Associate Director

Associate Director