Sports Symposia - Business Model of Sport v2.0

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Summary of my views of the next generation (v2.0) business model for sports which has a greater focus on the sports participant, fan and consumer & the controlled, bought and earned media.

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Sports Symposia - Business Model of Sport v2.0

  1. 1. Business model for Sports v2.0<br />Understanding Control, Bought and Earned Media across Sports Participants, Fans and Consumers<br />Nick Gonios<br />September 2009<br />nick@sportssymposia.comwww.sportssymposia.com<br />
  2. 2. The term ‘sport’ means different things to different people….<br />‘we’re passionate sports fans!’<br />Casual sports – ‘come on dad!’<br />http://www.flickr.com/photos/wasteofspace/2520425039/<br />Local sports participation – ‘in the scrum go!’<br />http://www.flickr.com/photos/10909491@N06/2326547659/<br />
  3. 3. Yet to some people, sport is this...<br />
  4. 4. …and had local affinity and passion<br />
  5. 5. Then came the ‘one size fits all’ media TV, Radio and newspapers<br />creating the current business model of sport<br />
  6. 6. Business model for Sport v1.0is relatively simple…<br />Step 1. Control (Make) content<br />(professional/elite sports sports leagues – based<br />on theatre, emotion and tribes)<br />Step 2. Buy the right to this content<br />(gain ‘attention’ against this controlled content –<br />typically called ‘sports sponsorship’)<br />Companies looking to generateunique brand association<br />Packaged and Controlledcontent is the media<br />
  7. 7. …but has lost the value of participation of sport!<br />Mass Marketsports consumption is commercially driven<br />SportsAudience<br />Millions of viewers per team<br />National (Elite) Leagues(e.g. AFL National League)<br />10,000’s of viewers & supporters per team (local media coverage)<br />Tier 2/3 Leagues(e.g. State level and regional level)<br />1000’s of supporters per team(some local media coverage)<br />Local Metro Leagues(e.g. suburban club leagues)<br />Junior Leagues(e.g. suburban juniors)<br />10-100’s of supporters per team (effectively no media coverage)<br /> Leagues or CompsParticipants<br />Mass Sports Participation is Govt subsidied<br />
  8. 8. It’s simplethis model is notsustainable!<br />
  9. 9. Why?<br />
  10. 10. It’s driven by…<br />
  11. 11. Consumption of<br />‘stuff’<br />
  12. 12. and withsports mediaconversationshaving beencontrolled…<br />
  13. 13. …the sports evolution<br />has begun<br />
  14. 14. 10seperationbetween sports leagues, clubs and players & sports fans and consumers is now<br />leaguebrandpassion<br />clubcommunityengagement<br />playeraffinity<br />
  15. 15. the new sport characteristicsPEOPLE 2 PEOPLE<br />TRANSPARENT<br />PASSION<br />AUTHENTIC<br />SUSTAINABLE<br />
  16. 16. Business model for Sport v2.0driving sustainability<br />sports media/services<br />Influencers<br />Participant<br />communityengagement<br />Consumer<br />Fan<br />Made<br />Bought<br />Earned<br />Influencers<br />
  17. 17. Some examples ofthe evolutionin sports social dynamics<br />
  18. 18. Lance Armstrong building community withdirect fan engagement<br />
  19. 19. Adidas<br />All Blacks Rugby<br />‘in stadium’ fan engagement<br />
  20. 20. community sports participantdriven online media & sponsorship services<br />
  21. 21. communities creating their own competitive social sports leagues<br />
  22. 22.
  23. 23. for some this is all a threat<br />for some it’s a HUGE opportunity!<br />
  24. 24. what position are you going to take?<br />
  25. 25. Opportunities to better engage with your sports fan, consumers and participants and generate new revenues<br />OR<br />a slow extinction?<br />
  26. 26. To discuss these challenges issues and opportunities, contact me:<br />Nick Gonios<br />nick@sportssymposia.comwww.sportssymposia.comtwitter: @nickgoniosskype: nickgonios<br />

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