it and see where it goes.
There is the possibility that the
sport/event will be big in a few
yearsʹ time and that broadcaster
will be the one who started it off
and reaps the benefits.
Do you clash with broadcasters
over rights?
We are one of the broadcastersʹ
main providers of sports content,
and we really do aim to work with
them in either securing this content
for them or producing it for them.
In some instances it might be the
case that broadcasters have also
become active in trying to secure
some rights directly or through the
federations or indeed produce
some content directly for their
federation where effectively in an
open tender we might be head to
head with some of the broadcasters.
So broadcasters might want to
secure certain rights directly but
they might not have the resource or
the know‐how to make it a global
event whatever it is they are
pursuing. And thereʹs where we
add value. Usually Iʹd like to think
that we are friends with the
broadcasters but there are occasions
where we are "frenemies" maybe.
Is football
the
major sport globally?
Globally it is by far the biggest
sport. Football is the dominant
asset in any sporting portfolio. At
IMG we ventured into football big
time some years ago but realised it
was quite complex, there were
many established processes and
procedures and many established
players. Whatʹs also happened is
that a lot of the federations have
actually taken those rights either in‐
house or have centralised them. We
saw that happen with UEFA where
there were many companies
representing various rights of
certain UEFA federations, now
those have been centralised and
taken to one entity that works
closely with UEFA.
So whereas we are strong in the
more traditional sports of say
tennis, golf, rugby and now very
big in action sports and other areas,
in football we are not that dominant
a force. We manage various
leagues, various club channels, in
my territory we now work with the
US Soccer Federation in the
qualifying tournaments leading to
the World Cup in Brazil. So we do
venture into football but rather
than become a brokerage which is
very much what football is about –
high volume, quick turnaround –
we try to provide marketing
support in the building of an asset.
Sport on pay-TV or FTA?
When Formula 1 went off mainstream
TV for a while and was seen by a
fraction of the people, it was
frustrating for those that love the
sport. Yes, of course, some of these
deals are led by the monetary
value, at the end of the day thatʹs
what keeps the sports going as
well. But you canʹt neglect the fan
base if you want the sport to grow.
It all goes in cycles as well. Where
some territories may see a growth
of pay‐TV, in others terrestrial is
still dominant. Football in Latin
America is huge on terrestrial when
itʹs local football, and itʹs huge on
cable and satellite when itʹs local
plus international football. You
have to balance the financials
against the exposure. Some countries
operate a listings concept so you know
that there is a guarantee that certain
events will be on terrestrial. The
Olympics is a good example of that.
There is a balancing act where
sports owners need to deliver the
highest audience for their sponsors
but also need income from pay‐TV
deals. Digital platforms now have
become very capable of targeting
certain elements of an audience
which actually provides a better
return on investment from the
sponsorʹs perspective. This is the
challenge that we are faced with:
where is that return and where is
that real value as it pertains to the
sponsors? Itʹs work in progress,
case by case. As technology
develops and as platforms become
more sophisticated you are in a
position to target and customise
content a lot more.
What is happening in the digital space?
In the region of the Americas, most
media companies now have a
properly developed digital platform
which allows them to have extra
windows and target the same
eyeballs or sometimes different
eyeballs in order to grow their
viewership. ESPN have been very
good at this but the ones that have
led the way have been Telefónicaʹs
Terra who in Latin America have
developed initiatives for big events
that have established them very
well in the sports market. Now itʹs
a very competitive marketplace.
Telmex, América Móvil have
become very active in this space as
well and are providing multi‐screen
interactive experiential approaches
to sport which did not exist before.
It has become better value for the
spectator ultimately.
At the end of the day, somebody
who wants to watch an archery
event would not have been able to
watch it before on a terrestrial or
even cable network because it does
not have mass appeal. But with it
being available on digital you
suddenly create a following which
can be monetised and also helps
grow the sport.
With this
sport
being
available
on digital
you create
a following
that can be
monetised
“
”
26
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ISSUE 2 2013
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THE CHANNEL
THE CHANNEL
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SPORT
