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Sports Symposia - Business Model of Sport v2.0
 

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.

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 Sports Symposia - Business Model of Sport v2.0 Presentation Transcript

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