This document discusses the business of professional sports broadcasting. It covers three key points: 1. The financial situation of professional sports leagues relies mainly on matchday revenues, broadcasting rights deals, and commercial deals. Premier League clubs make over £5.5 billion annually from these three sources. 2. Broadcasting rights deals are the second most important source of revenue for leagues. They generate billions for leagues like the Premier League, La Liga, and Serie A. However, streaming is growing in importance as digital platforms become more popular with younger audiences. 3. Piracy is an ongoing challenge for leagues and broadcasters. Countries have different regulations around rebroadcasting sports content in public spaces.

1. Hogne Ulla COPENHAGEN BUSINESS SCHOOL – FEBRUARY2013

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Hogne Ulla, aged 22
Current
 Ulla Sport & Media – Freelancer
 Student at Norwegian School of Economics (NHH)
Earlier
 Copenhagen Business School - Exchange Spring 2011
 Editor, journalist, content marketing

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Some cases and focus on today’s paradigm-shift
Importance for the broadcasters / TV-channels
Return on Investment (ROI) and the Value Chain
Football Money League (Deloitte)
TV-rights: Does it really matter?

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Promotion to the FA Premier League
Growing enthusiasm – fans and interest groups
-> Interest from sponsors and investors
(US, Asia, Russia).
-> Fans go “mad” – also, the fan base grows due to success
Agents will show up at the director’s office..
-> Fresh legs and faces

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Bosman
ruling
TV-
deals

7. Findings
The financial situation relies on mainly three fields, namely “Match-
day”, “Broadcasting”, and “Commercial”
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Overseas: £2,5 billion
+
Domestic: £3 billion
= 14 x ..or 12 x

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 Premier League
- All over - growth in Asia
 LaLiga
Europe + South America
 French Ligue 1
Mid-Europe + Africa
 Italian Serie A
Europe + growth in Asia + US
 German Bundesliga
Mid-Europe + Africa + America
Case Manchester United, 659 million
fans world-wide - > 325 in Asia
Recall Income streams besides
broadcasting are important for the
club’s revenue. United has
commercial partners in 72 countries.

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 Subscribers - > exclusive rights important
 Lag effects > Tendency to stay within the channel and watch the next show
Trend: Pay-TV Private versus public good
Category Example Funding
1 – Non-commercial NRK License fees or/and public funding
2 – Semi-commercial TV Denmark License fees, public funding or/and advertising
3 – Commercial TV2 (Norway) Advertising

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10 %
20 %
70 %
Who get’s the bucks?
Distributor
Right holder (s)
Broadcaster
Source: TV2 Norway

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CASES
UK: Karen Murphy case
- Sports bar - > Huge interest and a very
important discussion
EU regulations
Italy
4 million pirate cards (mid 2000s)
Streaming (digital development)
Growing interest from betting companies
and overseas investors / groups

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Case: FIFA World Cup 2014 in Brazil

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London 2012 63 million live video streams
“London 2012 confirmed that the digital revolution is now fully at the heart of
sports events.
Brazil2016 - >
young population (18-30)
- > Future grow in streaming?
What about
the digital
platforms?
What are YOUR expectations?
0
10
20
30
40
50
60
70
Streams in
million
Beijing
2008
London
2012

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For (more or less) interested
 Sports Management World Wide (SMWW)
-E-learning and various courses in sports management
 NHH - Norwegian School of Economics
www.nhh.no – business studies in Bergen, Norway
Comments, questions or ideas related to sports economics?
SportyBusiness@gmail.com or stalk me at About.me/Hogne.Ulla