The Sports Industry: A Glacier in Motion

Let me ( A guy with a scarf ) enter the debate.

Started from Matt Rogan article "Distrusting the Process: Bursting the Sport Industry Bubble", and following Hugo Sharman comments on LinkedIn, with my takes at the bottom of the page!

Matt Rogan's article and summary

• Financial Awareness in Sports: Increased fan awareness of club finances, especially in football. New business models emerging to manage Fair Play regulations. Distrust of US investors in European football.
• Political Involvement in Sports: Olympics and Paralympics as political influence points. Impact of politics on sporting events and hosting decisions.
• Broadcast Industry Changes: Strong Olympic ratings in the US. Shift to cross-platform viewing and reporting. Premium app experiences for paid subscribers. Challenges in profitability for streaming live sports.
• Legal and Structural Challenges: Collaborations and conflicts between competitors in the entertainment industry. Legal disputes between sports leagues and broadcast partners. Potential for renewed European Super League debates. Changes in athletics governance and athlete compensation.
• Overall Industry State: Unstable environment with high levels of public distrust. Need for better dialogue between sports industry, politicians, financiers, and public. Call for change to address current challenges.

Hugo Sharman's comments and summary

• Agreement with Rogan's Points: Endorses Rogan's observation on the 'Pivot Point for Broadcast'. Agrees that streaming live sports is generally not yet financially viable.
• Optimism in Technology: Highlights successful streaming businesses at various levels. Notes decreasing costs of technology and rapid innovation, including in AI. Mentions the International Broadcasting Convention (IBC) as a showcase for innovation.
• Data and Personalization: Emphasizes improvements in data capture, segmentation, and interpretation. Sees potential for better fan understanding and service through personalization.
• Industry Outlook: References Deloitte Future of Sport report showing increased optimism. 55% of sports leaders more optimistic about future growth than last year. Recognizes opportunities in digital transformation.
• Call to Action: Urges embracing change rather than resisting it. Describes the current period as one of "incredible change" and excitement in the sports industry.

Deloitte Future of Sports 2024

A guy with a scarf's take

I am going high-level hopefully not too fluffy with a focus on short-term vs. long-term view and an attention to what innovation means and how to manage it.

In recent years, we've witnessed a fascinating phenomenon in the sports industry - a sector long known for its stability and resistance to change is now experiencing a gradual but unmistakable transformation.

The traditionally unmovable ecosystem of sports is being eroded, much like a glacier exposed to rising temperatures. The agents of change? Technological innovation, evolving consumer behaviors, and broader societal shifts.

However, it's crucial to note that we're not witnessing a sudden revolution. Instead, we're in a transition phase - a period of adaptation and evolution that will likely continue for several more years.

The sports industry stands at a crossroads? I think it's at many crossroads at the same time.

While change is inevitable, the pace and direction of this change are still being negotiated. Traditional stakeholders are grappling with new realities, while innovators are pushing the boundaries of what's possible.

As we navigate this transition, the key will be finding the right balance between preserving the essence of sports that fans love and embracing the opportunities that new technologies and societal changes bring while making it economically viable for all parties so that this entire ecosystem will continue to exist and possibly grow.

My approach is: be curious, aspire to innovate the most common and adopted practices (those which may be simple but have major impacts), embrace innovations to fully understand their consequences while not falling bluntly to instant hypes, learn from others even when outside the ecosystem.

• It's crucial we avoid to take any new stuff as the thing that will change sport forever.
• It's crucial we avoid to dismiss any new stuff as a fad.

The path to the future of sports is in between the complexity and sophistication of these two statements, with the right amount of purpose and the use of data insights.

By the way, let's hope that in the coming years both real glaciers and the sport's one do not melt completely or we will be in trouble...

This is episode No. 162 of my LinkedIn newsletter, A guy with a scarf .

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