globalization in sports

8/13/2019 Globalization in Sports

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Powerpoint Templates

Page 1Powerpoint Templates

Globalization of Sports

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Introduction

Sports that was meant to improve ones physical activity has

become the most globalised and the most lucrative business in theworld

Major business in Sports are carried out by Sponsorships, Media

Rights and Merchandising of sports teams
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Different Sports and their share inthe Global Market


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Major Sponsorship deals in SportsSponsor Event Value

US$MegaFon 2014

WinterOlympics

260,000,000

Mercedes RacingVenues

150,000,000

Barclays BarclaysPremierLeague

134,500,000

AON Man Uteam

Sponsor

132,000,000

Adidas UEFA2012&2016

105,000,000

Omega Olympics

80,000,000


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Growth Rate in different regions


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Page 6

Major Global Sporting Events

FIFA World Cup Summer Olympics Winter Olympics Paralympic Games

Cricket World Cup Tennis Grandslams Commonwealth Games Asian Games

Tour de France


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Powerpoint Templates Page 7

Olympics

Began in Greece as a religious& athletic festival

With an intent to recognize sports worldwide,International Olympic Committee formed and first

International games held in 1896 at Athens14countries & 241 athletes

With corporate sponsorships from 1984 SummerOlympics, reached global heights with worldwide

recognition and large scale events Held across various locations across the world,largely helped in improvising the economies invarious countries with large scale investments andacquisitions


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Beijing Olympics 2008

Summer Olympics 2008 wasconducted at Beijing from August 8to August 24, to become 22ndnationto host Olympics

Official expenditure was aroundUS$15 billion, whereas estimatedwas close to US$40 billion-US$44billion.

Surplus revenues from the games

were in excess of targetUS$16billion Large economic and social

developments in the country, owingto the large scaleevent.
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Per capita income reached US$6,2101.9 times that of 2001

Fixed asset investment increased by 17.4% annually, 6.1% up ascompared between 1997 & 2001.

Large investments in Science & Technology(85 billion yuan) and manyinvention patents (38643.1% more than 2001) led to emergence of

many original enterprises and enhanced creative ability. Annual economic growth rate risen up by 12.1% in 2002-06, 1.7%

higher than that of last 20 years.

Of the total budget, 43.6% revenue was from television rights, 20.3%from sponsors & licenses, 11.1% from lotteries and 8.6% from tickets.

Six high end industrial functional areas such as ZhongguancunScience Park, Beijing economic and technological development zone,business center and financial street have taken shape, starting to playan increasingly dominant role in the capital economy.


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Transportation and Communications: Railway300km municipal railway lines with investment

of over 63 billion yuan HighwayFocus on expressway directly to centers of

countries and districts in other suburbs890km

expressway with 30 billion yuan Transportation hubs developed across the country to

shorten distance of transfer and provide convenience topassengers

Rate of travel by public transport promoted from 27% to

60%, with municipal railway and large capacity bus andtram taking up 40% of total public transport By supporting the 17,000 accredited members from the

world media with Comprehensiveness, Efficiency,Convenience and Comfortable using state-of-the-arttechnologies


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Football Clubs

Football clubs adopting global strategywith a strong focus on Asia

Football adds business to other sectorslike media and transport.

Clubs prioritizing revenue generation oversuccess on the pitch

Clubs have expanded the range ofcommercial features, merchandises andfacilities.


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Many clubs are looking at strategic allianceswith supporting industries and also cross-

border alliances with other clubs. Many clubs are quoted on the stock

exchange

Clubs organize pre-season tours to severalcountries

Clubs are targeting fans abroad throughmagazines and most clubs have their own

channels. Players also make as much an impact as

clubs do.


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Manchester City FC

On 1 September 2008, Abu Dhabi United GroupInvestment and Development Limited completed atakeover of Manchester City.

Most Emiratis turned football fans after the signing State-owned Etihad airways signed a 400million

pound sponsorship deal with the club

Abu Dhabi Summer Soccer Schools conductedevery year

Official club merchandise store opened in AbuDhabi


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Fan zones opened in Abu Dhabi where

games are shown live on big screens Club won business awards for the most

innovative use of technology.

The UAE embassy teams up with clubstaff to conduct soccer camps in severalcountries.

Signed kit-deal with Nike Etihad airways offers travel discounts to

club membership holders across theglobe.


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No Sri Lankan owners for SLPL franchisesIndian business houses buy all seven Sri Lanka PremierLeague franchiseesThe SLPL franchise ownersWayamba- Wadhawan Holdings Private Limited, $5.02

millionKandurata- Number One Sports Consulting Private Limited,$4.98 millionRuhuna- Pearl Overseas Limited, $4.6 millionUva -Success Sports Private Limited, $4.6 millionBasnahira-Indian Cricket Dundee Limited, $4.33 millionUthura- Rudra Sports Private Limited, $3.4 millionNagenahira- Varun Beverages Lanka Private Limited, $3.22million

Sri Lanka Premier League


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M & M strategy of expansion in Sri Lankan two-wheeler andAviation marketsIt sponsored the SLPL in order to create a brand awarenessin Sri Lanka

Title Sponsor of SLPL


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Indian Premier LeagueSources of Revenue:

Television Rights:

Nimbus plans strategy to make use of IPL's global broadcastrights

Central Sponsorship:Pepsi bags IPL title sponsorship rights for five years

Team Sponsorship:Nokia is the team sponsor for Kolkata Knight Riders while

Aircel sponsors Chennai Super KingsMumbai Indians have multiple sponsors in MasterCard, Bajaj

Allianz and Royal ChallengeTicket SalesEach of the franchisee have been guaranteed 7 home

matches and the revenue that they can generate from ticket

sales will be distributedin the ratio of 80:20 with IPL.
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Kolkata Knight Riders IPL 5 Winners

KKR have 18 sponsors, the highest among all teams.The cost of a non-jersey partnership with KKR is Rs 60lakh and a jersey sponsorship is upwards of Rs 1.5 crore.This year, KKR made roughly Rs 35 crore fromsponsorships.KKRs sponsors include Nokia, Birla Sun Life, DishTV, ITCVivel, Rose Valley, Royal Stag, Concast Steel, Bisk FarmBiscuits, Coca-Cola, Emta, Manyawar, Freecultr and TheTelegraph.

Rose Valley Group paid Rs 5 crore for a place on the KKRjersey.After the win, KKR may also increase in sponsorship ratesfor next year.


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Formula One Group

The Formula One Groupis a group of companies responsible forthe promotion of the FIA Formula One World Championship andexploitation of the sport's commercial rights.The majority shares isowned by CVC Capital Partners' funds .

The Formula One Group got the complete commercial rights of thesports in 1997 for a period of 14 years. Before it was having 49%commercial rights.

In 2004, many F1 teams threatened to start to a rival race series

CVC acquired Formula One Group in 2005. It was a time when the

revenues of the sport was decreasing and the future was unclear. In 2006, CVC acquired Allsport Management SA which manages

the sale of almost all Formula One trackside advertising and theFormula One Paddock Club.


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Formula One Group

In 2007, CVC took control of GP2, a complimentary race series,bringing together all the revenues connected with the FIAFormula One World Championship under its own control.

The rival race series named Grand Prix World Championship(GPWC), never started and many teams did under the tabledealings with Formula One Group.

In 2011, Formula One Group acquired the commercial rights for100 years.

In 2012, CVC bring down its share holding. It was to be listed inSingapore. The value IPO was estimated around $ 3 billions. Butit could not be listed due to gloomy economic conditions.

CVCs strategy was not solely dependent on a flotation. Earlierthis year, it sold chunks of its investment to Blackrock, Waddell &Reed and Norges Bank Investment in deals that raised acombined $1.6bnalthough part of that sell-off strategy was toestablish a pre-flotation valuation for F1.


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F1 India Connection

Kumar Ram Narain Karthikeyan is the first Formula Onemotor racing driver from India. Currently he is with HRT team.

The only other Indian to be an F1 driver is Karun Chandhok. Monisha Kaltenborn, born in Dehradun India, is the current

team principal and Chief Executive Officer of the Sauber

Formula One team and holds a 33.3% stake in the outfit. Sheis the first female team principal in Formula One. The Buddh International Circuitin Greater Noida, Uttar

Pradesh, India, by Jaypee Group track was officiallyinaugurated on 18 October 2011. The circuit is the venue forthe annual Formula One Indian Grand Prix, which was firsthosted in 2011.

JK Tyre was pioneer in bringing racing to India. Sahara Force India Formula One Team is an F1 team jointly

owned by Vijay Mallya and Subrata Roy.


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Red Bull Racing

Red Bull has sports based marketing strategy as its anenergy drink.

It sponsors several sporting events all over the world tomarket its product.

Red Bull has its own F1 team named Red Bull Racing.

The team has won three Constructors' Championship titles, in2010, 2011, and 2012.

Infiniti would become the team's title sponsor from the 2013season onwards, with the team to be known as Infiniti RedBull Racing.

Red Bull have been very vocal about wanting to make F1 'fun'again. Red Bull started The Red Bulletin, a satirical magazinethat is released four times per race weekend.


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Nike World leader in athletic shoes and apparels and major

manufacturer of sports equipments. Fortune 500 company valued at US $10.7 billion.

Acquired companies like Umbro and Converse Inc.

Serves as official sponsor for major sporting events including

Olympics(2008,2012), Fifa World Cup(2010) and EuroCup(2012)

Serves as official sponsor for major sports teams andpersonalities:

Football Clubs like Arsenal, Manchester United, Barcelona

and Juventus Indian Cricket Team

Tennis players like Roger Federer, Maria Sharapova andSerena Williams

NBA players like Kobe Bryant and Kevin Durant


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UB Group

Indian Conglomerate deals with beverages, aviation, electricalsand chemicals valued at US $4 billion.

Invests 6-7 crores annually in various domestic sports

events in India Owner of Royal Challengers Bangalore Team

Owner of Force India Formula-One Team

Adopts a policy of linking specific products to specificevents.

Football tournaments are mass events and hence it islinked with its McDowellsNo.1 product

Golf events being popular among the elite group of peopleis linked with the brandsSignature product.


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Emirates Airlines

Largest airline in Middle-East based in Dubai

Wholly owned by Government of Dubai

Official sponsor and airline for major sports governing bodies

like: Fdration Internationale de Football Association (FIFA)

International Cricket Council (ICC)

Asian Football Confederation (AFC)

Official sponsor for various sports clubs like: FootballArsenal, A C Milan and Real Madrid

Cricket Durham English County Team and DeccanChargers from IPL

Official sponsor of US Open Tournament


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