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SPORT BUSINESS INTELLIGENCE

Hans Westerbeek

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Sport 2030 – will Australia regain its leading sport nation status?

On the first of August 2018 the Minister for Sport, the Honourable Bridget McKenzie (@senbmckenzie), launched the long awaited National Sports Plan, or ‘Sport 2030’ – for Australia to be(come) the world’s most active and healthy sporting nation, known for its integrity and sporting success. Around the traps it was clear that the plan had been doing the rounds for a while. The public release of the much anticipated ‘Review of Australia’s Sports Integrity Arrangements’ was also long overdue. The delays were justified by the Minister due to the significant importance of both reports, and the consequent requirement for government collaboration across various portfolios including Home Affairs and the Attorney General’s office. The review of integrity is part of the bigger national sport plan and is targeted at ‘safeguarding the integrity of sport’ part of the agenda.

I can call myself an academic and consulting veteran of sport business and management, having done almost 30 years in three different Australian Universities and four international tertiary institutions, and a successful 5-year stint at private sport business consulting as well – in and outside of Australia. But I started my career as a physical education teacher, during the times that in the Netherlands, and also in Australia some ‘wise’ politicians sought to redirect resources in the primary and secondary school systems by phasing out mandatory physical education classes, taught by specialised PE teachers. I have been in this industry long enough to have witnessed the short-term gain (Sydney 2000) to be had from investing a lot of high performance money in the last generation of children who had regular PE lessons at school. Ever since Sydney 2000 the Australian Olympic medal tally has been shrinking. This can only in part be explained by increasing competition from other nations investing in their high-performance systems. With a relatively small talent pool (26 million), Australia needs to make the best out of its potential, and if the talent pool is shrinking because young Australians cannot run, catch, throw, jump and coordinate their movements in the way that previous generations had learnt to do, then that surely explains lack of podium success.

Although the strategic priorities of the Sport 2030 plan seem straightforward, digging deeper into the mission and targets set by the rebranded Australian Sports Commission – now Sport Australia – provides a window into an exciting future for Australian sport. More people from cradle to grave engaged in sport and physical activity; a recast high-performance system that is empowered to achieve success for sports and for athletes; a whole of system approach to safeguarding competitive sport from illegal interference and exploitation; and a successful sport ecosystem – the in-vogue word for ‘industry’ – that is capable of delivering sustainable social and economic benefits to Australians. What does this deliver? Sport 2030 aims to build strong communities, made up of strong, enabled and empowered individuals who are physically and mentally healthy, facilitated by and in a sport and recreation environment that delivers economic and social value.

Just words you may argue. Sure, like any strategy, easy to put on paper but hard to execute. However, this is the first strategy document by the Australian government since I arrived in Australia in 1994, where the expressed focus is not (only) on achieving elite sporting success. And there is also a fresh wind blowing through the corridors of Sport Australia power. Both the Board and the rebuilt Executive Team at Sport Australia have taken the bull by the horns, and collectively turned realisation (that more of the same is not good enough) into action. The AIS has been credited with achieving amazing success during the first two decades of its life, but in an open admission by the Minister in Canberra, has lost its way during the past decade, and is in need of a complete rethink (which is happening as we speak). Sport Australia’s Board and AIS management are actively negotiating with State and Federal government about what to keep and what to sell on the massive AIS parcel of land. How can Canberra based management of the AIS better service a National elite system? How to empower and enable the range of stakeholders in Australian elite sport, to better perform their function in the system? This as opposed to basing all people and services out of Canberra.

Unlike earlier versions, the National Plan hardly talks about the traditional ways of growing participation in sport (through NSOs and SSOs) but rather, outlines a required focus on ensuring that all Australian children have the skills, confidence and motivation to be active for life and safe in the water. This can also be done by reducing barriers to sport and physical activity participation. And note the structural inclusion of ‘physical activity’ throughout the document – an acknowledgement that before sport participation comes confidence and desire to be physically active. There is also emphasis in the plan on investing in sport and recreation facilities – not merely ‘build it and they will come’, but with a focus on ‘universal design’ so that sport is accessible to all Australians.

In regard to the sport industry as a whole, there is an acknowledgement that some existing practice, like hosting and organising major sporting events in Australia and extending Australia’s sport diplomacy strategy, will require continued support and investment. More novel though are the intentions to collect data, evidence and insights to promote how active, sporting and healthy Australians are and could be, and also to actively increase the sport industry workforce capabilities. These latter intentions offer tremendous scope for Universities, but also for vocational and secondary school providers to partner with Sport Australia.

Last but not least… safeguarding the integrity of sport. At the foundation of this should be contemporary and efficient governance systems. Highlighted in the plan is also a focus on protecting children in sporting environments – an open acknowledgement that there are (and may be more) problems underneath the veil of a club-based delivery system of sport. A system that is insufficiently equipped and prepared for predators using the cover of ‘fun and healthy sport’ to satisfy their sick desires. Or indeed, physical sporting environments that do not live up to the health and safety standards that ensure an acceptable level of injury risk.

However, the major advancement of Australian sport may well come from the recommendations outlined in the Review of Australia’s Integrity Arrangements, in short, the Wood Review. There are 52 recommendations for the Australian government to consider, covering five action themes that go to the heart of integrity (safeguarding). First a National Sports Integrity Commission should be established, resourced and equipped to be the single platform that regulates, monitors, develops and delivers policy around integrity. Second, the Review recommends the establishment of an independent National Sports Tribunal, including an anti-doping, general, and appeals division. Third, the Review recommends deeper investment in the Australian Sports Anti-Doping Authority (ASADA) to invest in anti-doping education and outreach to younger athletes, and to streamline anti-doping procedures and change the ASADA-Act to more effectively carry out the organisation’s duties. Fourth, the government should establish an Australian Sports Wagering Scheme, governed and run by the new Integrity Commission, to ensure that wagering legislation and policy is formulated, guided and executed in a transparent and consistent manner. Finally, at the core of the matter, Australia should sign up to the Council of Europe Convention on the Manipulation of Sports Competitions (the Macolin Convention) as a first step towards a strong response to match fixing and the corruption that is underpinned by it. This will allow better international engagement in combatting match-fixing and illegal gambling, but equally important, drive the national discussion and agenda on tackling the range of criminal behaviours that threaten sport’s integrity.

The proof is in the pudding – good old adage – and as such, very true. Where from here? How will Sport Australia’s management and governors take this ambitious, and enlightening plan to the next phase, and find the resources to implement it in a sustainable fashion, so that its effect can be traced all the way to 2030 and beyond? This is an opportunity for a bold, forward and long term thinking government, way beyond their electoral survival, to invest in the wellbeing and welfare of Australians for generations to come. Not only will this bring medals to Australian young athletes, but it will make Australia’s education and health policies the envy of the obese and sedentary (rest) of the world, and indeed safeguard the future of the lucky country.

I have seen the future (of sport) and it is about sustainability and analytics

The grass is always greener on the other side… Or is it? I am on my way back home – to Melbourne – the most liveable city in the world as judged by a panel of wise women and men. And indeed, I live and love living in Melbourne (@cityofmelbourne) because of how great a city it is, with so much culture, art, sport, shopping, food and nature on offer, and so many business opportunities to pursue (@WhatsOnMelb). But it remains interesting that to date I have missed the amazing story of my former home town, the City of Groningen (@gem_groningen), in the Netherlands. I guess I had to move away from the place where I spent 12 years of my life as a student and young professional to fully appreciate how green the grass really is back there.

Earlier in the week I had spent a couple of days in Amsterdam, at the Sport Analytics World Series (@Sporting_Data) co-produced by KPMG (@KPMG). At this event, I was observing and engaging with a host of digital economy literates, who are transforming the landscape of sport business as we speak. Don’t hold me to the number I will present next as I took it from a slide that was presented at the conference, but during the past decade the business of traditional sport (delivered by clubs, national associations, federations and event owners) grew by about 70%. Pretty good growth rate wouldn’t you say? Well, the sport business value generated by the ‘new’ industry entrants (sport tech apps and devices, new sports, new events, gaming, gambling, esport, digital distribution etc.) has grown almost 900% and is likely to keep outpacing the ‘traditional’ owners of sport for some time to come. This means that those who own ‘digital’, ‘data’, and ‘data transformation’ will also increasingly own sport business. If you can’t profile your increasingly diverse range of sport consumer segments, then you will also rapidly become irrelevant as a sport content producer. So, on the one hand, the future of sport is digital but we knew that, right? Digital, and data combined with artificial intelligence will disrupt the current order of power and transform the way in which we consume sport. But beyond the digital, I believe, will always remain the real thing, so beyond a digital future, I continue to see a natural, and as such human future for sport.

During the latter stages of last week, I returned to Groningen for a couple of days, catching up with one of my PhD students, and spending a rare and delightful weekend with my sister and her family. The weather was awesome – unDutchlike sunny and warm – and I extensively took advantage of the number 1 Dutch preferred mode of transport, the pushbike. And my goodness, how green the grass really is in Groningen (and many other municipalities around the Netherlands for that matter). My family resides on the outskirts of the suburb of Lewenborg, where water abundantly cuts through the farm and wetlands, and where working windmills and locks control the flow of water from high to lower lands. If the Eskimos can distinguish between hundred shades of white, then the people from Groningen must be able to do so for the colour green.

What impressed me to no end though, is how the City and Provincial governments (with funding support from Lottery (@PostcodeLoterij), and National (@Rijksoverheid) and EU (@EUCouncil) governments) have regulated and facilitated the land to be returned to its original state, and to bring sustainable harmony between the human and animal residents that live there. Farmers are paid to grow a 2-meter-wide ring of wildflowers around their land to bring the bees back to do their essential pollination job. To house bees and fellow bugs, there are ‘insect’ houses located along the highways – wooden constructions that provide protective and attractive cover for flying creepy crawlers, away from the main residential areas to ensure that the public is not disturbed.

Although it seems that there is a lot of roadworks going on, further investigation tells me that the City has embarked on a three-year construction project that will see a number of main streets and highways ‘sink’ into the ground, to be covered by residential housing and green space. The vision is to return the City to those who walk, cycle, and those who use sustainable public transport. There is a busline that runs electric busses, charged at the final stop by solar panels on the terminal. The terminal is built at a major parking lot where commuting workers park to take the bus into the city trouble free.

In various suburbs, natural gas dependent households are being phased out (also because of recent earthquakes that are blamed on excessive natural gass drilling in the region). Any yet to be built housing will be designed and constructed ‘gas free’, running on solar generated energy only. If self-generated solar energy is not sufficient then residents can ‘buy’ a stake in a windfarm that will supply the remainder of required electricity. Blocks of hundreds of houses surrounded by water and connected by bridges, are fitted with solar roof panels as a rule rather than an exception, increasingly capable of supplying all of the household’s electricity needs. Older residences without solar capacity receive a government subsidy to fit their roofs with sun soaking cells or indeed, spend this money on double glazing or insulation. Shower and sink water is directed into the surrounding water planes where it is naturally filtered by the sandy soil and special wetland filters, before it is being returned to domestic use. Such water is also used to maintain some of the perfectly laid out pitches of the local soccer club – FC Lewenborg (@FCLewenborg) -  and you could mistake this facility for a professional club, if you did not already know that the Netherlands have some of the best, if not the best, community sport and recreation infrastructure in the world. Noteworthy is that the football club uses a combination of real and artificial turf pitches, to allow for maximum flexibility during extreme freezing or excessive rain conditions.

Leisurely riding your pushbike around City and countryside, without the stress of having to negotiate angry and ignorant drivers of cars is a sheer delight (Melbourne eat your heart out…). It is enabled by the fact that dedicated bike lanes in the city, and separate bike paths in the countryside communicate that those who ride bikes rule the road. FC Lewenborg’s facilities are picturesquely positioned within the wetlands, surrounded by grazing Scottish highlanders (who may end up on your plate as organic free ranging beef), and connected to the City by several smaller Futsal courts that are extensively used by the local youths. Holland may not be playing at the World Cup this year, but if enabling participation is a key success factor to qualifying for the World Cup, then the mighty Orange (@KNVB) will be back with a vengeance.

So really, I return to a City that can have it all and is working hard to make that happen. I have just seen the future, and it has been right on my doorstep without me realising it. I actually lived there for a while, when admittedly, the future seemed or was projected vastly different from the one we are facing today. But to touch and feel a microcosm of how a sustainable future could work, that it actually can be done, is both heartening and exciting. Of course, at present, such dedicated sustainability thinking and execution remains limited to a number of (small, wealthy and quite democratic) countries such as the Netherlands, Denmark, Sweden and Norway, to name a few (or to name the few?). But to see how small communities can quickly reach a tipping point of cheap solar energy, integrated and productive green space, and active transport prioritised suburban design, in which community sport is presented as a centre piece, is nothing short of spectacular. 

Is India the sleeping giant of world sport?

If the size of a nation’s population is an indicator of the talent pool for elite sporting success, then India should be alongside China on the Olympic medal rankings. But it is not. Whilst China consistently appears in the top three of medal rankings, India is painfully absent from the top 20, hovering around 50th spot for the majority of its Olympic history. This to the increasing discontent of government and a selection of proud Indian billionaires. 

I had a long-held desire to travel to India since I was first caught by the travel and exploration bug during the late 1980s. Like it said in a recent advertising campaign to lure tourists to the country – ‘the thousand colours of India’ had a magical attraction on me. It took another two decades for me to get there, where the multitude of colours and sometimes shocking contrast between beauty and poverty got me hooked on the country.

Six months before the 2010 Delhi Commonwealth Games (CG) I got my first dose of India, speaking at a conference that celebrated and debated the upcoming event. It was going to be the biggest sporting event ever to be hosted by India. On the dedicated Games website, it was noted by the organisers that “hosting a sporting event at a scale such as the Commonwealth Games is a matter of international prestige for the country, and is bound to boost brand India”. They (the CG organisers) further argued that “improved infrastructure and appearance of the host city, and global media exposure will serve to transform the image of the city” and that “another legacy of the Games will be the social, economic and physical regeneration of Delhi. The Games will help to boost urban renewal, create jobs, increase investment and transform the landscape of the city”.

Today, in 2018, those who ran the event and were responsible for its legacy will probably have come to the realisation that those objectives were laudable, yet completely out of sync with the conditions that such objectives can be achieved in. Delhi and its governors found out the hard way that “the Games will [not] leave behind dramatically improved, world-class sports facilities that generations of Indian sportspersons can use in the future”. And also, that “the establishment of an Olympic-size pool as well as a gym in the Delhi University will [not] boost sports among the youth of Delhi” ([not] added by me). The final and overriding objective for hosting the Games, that “… the legacy of the XIX Commonwealth Games 2010 Delhi will be to boost the sports culture as a part of the daily life of every Indian, particularly the youth”, made me realise that the Commonwealth Games turned out to be the cart before the horse for Delhi and for India. It further sparked my desire and ambition to not only study sport infrastructure and delivery systems in developing economies, but it also made me realise that India was the perfect ‘happening in real life’ case study.

One of the prime conditions that is required for a major international event such as the Commonwealth Games, to achieve ambitious objectives such as those formulated by the Delhi organisers, is to have a vibrant community sport culture. A culture that is enabled by another condition: basic community sport infrastructure so that opportunities to play are abundant and accessible for all, but in particular for the young people. Beyond a natural desire to play and compete in purpose built facilities, one needs a large cohort of coaches who have received proper training and who can advance their skills via a well-developed coach accreditation track. Finally, if a nation is to advance its elite sporting success, it is also important that the young and talented can test their skills in well organised competitions – some of which played and paid at the professional level so that it can be watched on multi-media platforms by (paying) spectators.

I have been back to India many times since 2010. One has to realise that although India is one nation, it consists of 29 States and 7 Territories, all in their own right could be (and in some ways probably are) separate nations. If the Delhi Commonwealth Games had long lasting outcomes, than at least it ignited a burning ambition for India to be successful on the world stage. The great challenges that came with organising the event also created a sense of realism amongst a small group of government insiders – that you can’t just expect that hosting a major event, hiring some foreign coaches and building a pool or a biomechanics lab automatically leads to Olympic success.

Greatly facilitated by Australia’s Department of Foreign Affairs and Trade (@dfat) and Austrade (@AustradeIndia ) there has been an influx of foreign experts aiming to help build India’s elite sporting system(s), including myself and a number of my colleagues, and some State governments have started to realise that sport (participation) system foundations come before advancing the elite sport development and delivery system. Our work with the State government of Kerala (population 36 million) started with thinking about how Kerala athletes could win more medals at National and International events. However, our Kerala colleagues came to realise that working to create participation opportunities at the grassroots level was equally, if not more important. We are now about to start working with 50 former Kerala athletes every year who will receive training in various disciplines such as community event management, local facility management, foundational coaching, and marketing communication, before they enter into a guaranteed government job in local sport. The sporting system is built from the ground up rather than from the top down. Of course, working at the foundation does not stop one working (and translating knowledge) at the elite end of the spectrum, but for the system to grow as a whole, the young represent the future. A hugely important side effect of this approach is that it grows the skills base and employment opportunities in a nascent industry where parents still are reluctant to let their kids play sport because of the perceived lack of economic opportunity.

In the State of Punjab we are working on another project. Here we are focusing on young coaches across a number of (high potential) sports for Punjab, including hockey, athletics, volleyball, football and wrestling. These coaches have had basic training in India, but can benefit from more advanced coach education, and importantly, are young and open to approaching the coaching profession from a less traditional authoritarian perspective.  They learn how to better enthuse, engage and even market high level participation in sport to young Indians and how to use up to date sport science to manage training load, recovery and peak performance.

We have also engaged with the commercial part of the rapidly developing sport industry in India. During the past decade, multiple professional sporting leagues have been set up, to start competing with the once monopolistically powerful sport of cricket. Although cricket still rules the waves in India, kabaddi, football, hockey, tennis and badminton, to name a few, have all started professional competitions with various levels of commercial success. Our engagement with the owners and organisers of the Mumbai Marathon – Procam – has been an eye-opening success and delight. Procam (@procamrunning) worked with our team of 30+ student researchers from Mumbai-based ISSM (International Institute of Sport Management, @info_iism )to collect insights from marathon participants of all ages about their history of sport and physical activity participation. It provided us with a first insight into the physical activity behaviour of predominantly middle-class Indians, and it allowed us to triangulate this information with data from our other State based projects.   

There is so much more to tell and so much more to say about India, but for now, can we answer the question if India is the sleeping giant of world sport? Some early signs speak to the affirmative. Sports other than cricket are breaking spectator ground and elite sport facilities are being constructed to host them. Although there is no direct correlation between passive spectatorship and active participation, watching sport does educate young and middle aged Indians about the beauty and pleasure of engaging in sport. It also generates economic activity in and around sport that allows for reinvestment and employment. Our own work as a group of University researchers and consultants, even when this is at a small scale, bodes well for a broader realisation that the development of coaches, community facilities and participation will help build a sporting culture. This in turn will increase the pool of better prepared talented youngsters who in the near future, might become more competitive at the international level. However, as many other nations that have tried to ‘buy’ themselves sporting success by importing coaches and naturalising elite athletes have found out the hard way, there are no shortcuts to elite sporting success. There is no substitute for a culture of active community participation in sport, and where the wider community knows the benefits of and therefore practices a physically active lifestyle. If Indian policy makers can find a way to mobilise large cohorts of its massive population base, then indeed, a giant will awaken.

 

 

The Champions League semi-finals - first signs that AS Roma leads football into the digital age?

Paul Rogers (@paulrogers73) is the Head of Digital Media at AS Roma. Headquartered in Boston, he is spearheading the Italian football icon’s journey into digital. I was fortunate enough to be (again) chairing the @BOSSummit, Business of Sport Summit (http://sportsleaders.com.au) in Sydney last month. This event has become Australia’s pre-eminent knowledge and network event in the world of sport business. If you want to get a good lay of the land of where sport business is heading, and what the trends, issues and challenges are that drive the industry, BOSS brings together speakers and participants at the forefront of it. And Paul Rogers, a 14 year Liverpool Football Club veteran, is one of those.

His keynote on day 1 of the conference was exciting, refreshing and insightful. And it also showcased the workings of a football club that now is contending for Champions League glory, and also has its digital fan engagement on track. And as in any good business model, where a focus on the customer often is a great predictor of organisational success, I will be watching AS Roma with renewed interest in the semi-final (@ChampionsLeague). Why was Paul’s insight into the digital strategy of AS Roma so refreshing? Because he started with 10 reasons why they got it wrong! Allow me to share them with you, because I think they are immediately transferable to other (sport) businesses. So here are ten missteps that probably are not limited to AS Roma’s digital failures:

  1. Prioritise the website, direct all traffic there, and count success by page views
  2. Create content to increase page views
  3. Force people to visit the website
  4. Controlling which content to consume when and where
  5. Make people engage on all Roma social media platforms and repeat content across
  6. Using social media platforms as one-way broadcast channels rather than engage
  7. Failing to appreciate user generated content for fear of losing control
  8. Focusing on selling but not listening to the questions and feedback
  9. Asking for personal information but then not treating respondents as individuals
  10. Taking supporters for granted and then asking: how can you help Roma?

What Rogers made clear as a key component of his presentation was the age-old marketing adage – that the customer always comes first – continues to reign supreme. Easy to say, hard to execute. In sport, more than any other business, and in football more than any other sport, it is about me, the fan, and not you, the brand! Fans, members, aficionados, and in particular the younger (new) generation of football lovers, have moved way beyond visiting websites as a source of information, or more important, as a means of engagement with their club and their heroes. They love to be on social media, they are frustrated spending too much ‘old school’ time on a website. Their time is precious and if returns are not immediate it’d better be worth the wait… because otherwise they will punish you with their razor-sharp feedback wrath, and fading engagement. You can only make a first impression once. And beyond making epic impressions, clinical brands and unique value propositions are breaking down as anchors of trust and confidence in consumer decision making. Family, friends and slick bloggers are more trustworthy than established institutions because the former treat you with attention, respect and confirmation. So really, don’t ask me what I can do for you, but what can you actually do for me, to make it worth my while to continue supporting the organisation…?

To move beyond the (common) mistakes made by Roma and others in engaging digitally and successfully reconnecting with the fan, what can be done? Again, upon reflection, much of the best advice is simple, and derives from a standard University ‘marketing 101’ course. So here are 10 insights to get digital working for you:

  1. First of all, every decision must put the fans first.
  2. Beyond that, empower fans, or at least give them the impression that they drive the conversation, and that content consumption is within their sphere of influence.
  3. A favourite credo of mine is that ‘less is more’, and this also goes for getting to the information that fans want to consume, so… make it easier for fans to consume content.
  4. A picture tells more than a 1000 words, and nobody wants to read too much content online so tell the stories in the most visual way possible.
  5. Marketing is only partly about selling stuff, the best marketing often is about making people realise they ‘need’ something without them asking for it. In regard to digital content this means that it needs to find the fans rather than them looking for content.
  6. A fundamental truth – don’t produce content because you have to produce content…. Boring!
  7. Another fundamental truth, this one specific to social media – if you are the only one talking about the issue, then there is something wrong. Stated differently… nobody cares!
  8. And the flipside of that realisation is that organisations should only produce content that fans want to share with their own followers. No sharing means, no interest.
  9. The return on investment of digital (marketing) and content production is measured in engagement, not in likes or followership
  10. There probably are numerous other insights that can be provided by sport organisations all over the world, working hard to make their digital strategies work, but take this last one as a universal suggestion – publish content that interests your customers, not what you happen to like, love, value, or advocate!

I love chairing a great conference. Being in the Chair forces you to prepare deeply and think quickly on your feet when engaging with the speakers, the panels and the audience. It exposes you to many professionals who are at the top of their game, and who are willing and able to share their insights, their experience, and at rarer occasions, their ability to make complex matters simple and entertaining. Paul Rogers offered all of that at the Business of Sport Summit. With Rogers having been at Liverpool for 14 years and now the digital guru at Roma, I wonder…, is digital capability driving Champions League success? Whoever wins the Champions League semi-final, Paul will be smiling.

Value destruction in sport business - the case of Australian cricket

The land down under is built on the foundations of convict labour. Boats full of unwanted ‘criminals’ landed in Sydney and Melbourne just over 200 years ago to be put to work to build modern Australia – the rulers of England could sentence you to be deported to the Australian penal colony for stealing a loaf of bread. The convicts brought with them the British traditions, none of which more iconic than the game of cricket. And for the villains of Australia to beat the mother country at their own game, was to be the sweetest revenge. When this happened for the first time, a satirical obituary in The Sporting Times (1882) noted that ‘English cricket had died, and the body will be cremated and the ashes taken to Australia’. It positioned Australia, it validated its existence, its value, its prowess and its right to exist, independently, and proudly. Cricket specifically, and sport in general has maintained that level of importance in the Australian psyche, and in the way that Australians perceive themselves within and sometimes against the rest of the world.   

I have been living in Australia for 24 years. I have never, ever seen the media feeding frenzy on a ‘scandal’ in sport, that is happening right now around the ball tampering admissions by the (former) Australian cricket captain Steve Smith and his leadership group. For those tuning in from around the world, ball tampering in cricket is the illegal practice of manipulating the shape and/or surface of the ball, so that it moves in unexpected directions, with the result that the batsman of the opposition gets (caught) out. Visual (camera) evidence of Australian bowler Cameron Bancroft stuffing tape down his pants led to the immediate admission by Steve Smith that the leadership group had discussed and agreed to ‘cheating’ through illegally manipulating the ball. Smith promised that ‘it would not happen again’….

Since the news broke two days ago… the International Cricket Council has condemned and punished; the Australian Sports Commission has condemned and judged; the Rajasthan Royals cricket team in the Indian Premier League have taken the captaincy away from Steve Smith; the coach of the Australian Cricket team has (almost) resigned from his position; the CEO of Cricket Australia has apologised and updated the Australian public in two open letters; he is on a plane to South Africa, following his Director of Integrity, and of course… English cricketers have used this opportunity to soften the humiliation of their recent Ashes defeat by implying that the Aussies are likely to have cheated during most recent Ashes encounters as well. The media coverage on this issue has utterly dominated the Australian news cycle for the past 48 hours, and will continue to do so for the next 48.

Why is this such a big issue? Let’s start at the Aussie battler’s perspective. Against all odds, the convicts beat the landed gentry (on their home soil) in 1882. Kings and Queens were beaten by commoners and strugglers. They did this by simply outplaying and outsmarting them. A fair go in a just contest that would test real and honest skills, rather than land and money trumping muscles and working hard to make ends meet. This attitude defines not only Australian sporting values, but it defines what it means to be Australian. Steve and the boys, naively, have violated these values in a way that is beyond belief, flabbergasting most Australians. How naïve, dumb, ignorant can you be – is what the public opinion tells us – to not understand that you simply cannot do this? Sure, cricketers and other sportsmen and sportswomen will tell you that winning is important. And that winning in elite sport, with huge performance pressures from coaches, federations, sponsors and the media makes it even harder not to fall victim to illegitimate ways of beating your opponent. But to not consider the range of far reaching consequences that cheating in cricket would have on the game itself, on Australia’s cultural values of having a fair go, play within the rules but play hard, and on all the stakeholders in the process – from the Prime Minister in his communications with other Commonwealth leaders, to Cricket Australia in their current media rights negotiations, and from the International Cricket Council to the players of the game, all of whom will be affected by the value destruction that this ‘incident’ is causing, is simply beyond belief.

The media rights will suffer from a short-term devaluation, if not a lasting long-term effect. Cricket Australia will scramble to regain control of the negotiations. They will try to stall, and wait for this scandal to leave the front and back pages of the papers, and for it to stop inciting the grunt of social media influencers whose anger will reverberate in the corridors media rights negotiation. Sponsors will question their commitment to the sport and to the governing bodies and individual players. Qantas CEO Alan Joyce weighted into the discussion by telling Cricket Australia to ‘deal with the issue as quick as possible’. The Qantas logo went around the world displayed on the team’s cap and Joyce made the sponsor’s position really clear, ‘Australia is all about a fair go ….and unfortunately our cricket team have let us down’.

Just over 6 months ago the Australian Cricket Players Association fought hard – by threatening to boycott the Ashes – for a fair deal for its players, also in context of the new media rights deal to be negotiated. Those very same players have destructed value that far outweighs the negotiated benefits for players in the long term, that would have been the result of the new media deal. And sadly, two of my favourite batsmen – Smith and Warner – at the forefront of bargaining a deal for their colleagues, will suffer most personally from the brand damage that has been inflicted. This damage extends to the (different versions of the) game, the federations including the ICC and Cricket Australia, and of course to their personal player brands. Smith, as a possible heir to the long-held throne of Bradman, and Warner as the little guy who can do batting magic in all versions of the game – Test, One-day and T20.

The ultimate sad irony of it all is that I believe that neither Smith, nor Warner or Lehmann ever meant to damage the game, or Australian cricket in general. They naively thought that they were just trying to ‘get on top’ of the opposition. That what happens on tour stays on tour. They were blinded by an utter desire to win, adrenaline, dopamine, chemistry in the brain – no rational minds in the dressing room. That if you push the boundaries within the rules, or just cross them but nobody finds out, we’ll be right. They will probably tell us that ball tampering is common in cricket, at Test level, at First Class level and in community cricket. Sure guys…

What they did not realise, naively and stupidly, is that sport in Australia, and cricket very specifically talks on behalf of a whole country. The Australian cricket team is the voice of a nation. They represent deeply engrained cultural values. They tell the rest of the world that ‘this is how we do things’. And Australia, the Prime Minister, the CEO of the Australian Sports Commission, the CEO of Cricket Australia, the CEO of Qantas, and descendants of the convicts who were sent here some 200 years ago, don’t want the world to think that Australian’s ‘cheat’ in order to win. Because the reality is, most of the time we don’t. I just hope that in time, we will give Smith and Warner a fair go. Because that also, is part of the Australian way of the world. They may never be captaining Australia again, but if you stuff up (big time), we will give you another chance. 

Tokyo 2020 and the future of sport business

On the front pages of the Japan News, throughout my few days in Tokyo, the pressing matters regarding our future are laid out to me. Climate scientists are alarmed about the unprecedented ‘above average’ temperatures in the Arctic. Trump is threatening to unleash a trade war, even when this clearly will not benefit the US economy. Mr Putin proudly announces that his rockets can navigate around missile shields to get to the US and President Xi Jinping is showing his real hand by aiming to stay in power for, well, the next 30 years or so – China incarcerated.

I am in Japan to present on ‘the future of sport (business)’ at the final session of the Executive Masters in Sport Governance (MESGO, http://www.mesgo.org/) program. On the flight to Tokyo a few days ago I watched Blade Runner 2049. The movie imagines a grim picture of a future in which we have destroyed the earth and confused the boundaries between the human soul and artificial intelligence, to the extent that even the cyborgs do not know if they were born or created. Like any science fiction work of art, there is an unnerving connection between the imagination of the creators and the extrapolated reality that the work is based upon. The fiction in science is only fabricated, because it lies ahead of us, not because it cannot and will not be true.

So, on the future of sport business, it is important to consider the context in which the global sport industry is progressing. In 2004, I was privileged enough to co-author the Sport Business Future with Aaron Smith (http://www.aaronctsmith.com/book/the-sport-business-future/). Although some of the ‘radical predictions’ in the book turned out not to be too radical at all, the basic underpinnings of the book remain valid and very real.

First, those who command the power over economic resources will also drive the development and innovation (or destruction) of industry and society. Second, technological advances will allow for global mass communication and transform the way we do business and how we prepare (or create) elite athlete performance. Artificial Intelligence and nanotechnology combined will soon accelerate to create unprecedented advances in business and human performance. After all, during the last decade humans have generated as much data as previously was produced in the whole of human history. It is estimated that we will double this amount of data roughly every two years.  Third, culture will remain the main driver of a dominant (increasingly global) sport narrative; what is the dominant sport business paradigm; and which sports will (continue to) shape the mass participation and spectatorship. Trump, Facebook, Alibaba and right extreme ideologies are fuelling culture (re)creation by either facilitating or crafting ‘fake news’ and business and religiously inspired propaganda. This is also the context in which we look at sport, and how we envision what are the important sport(s), and what are ideal type athletes – both mentally and physically. There is danger lurking that it perpetuates ‘sameness’ rather than diversity of (sport) culture. Overriding all three of these driving perspectives is the matter of the integrity of sport. And that presents two questions in turn – what is integrity in sport and how does one maintain integrity…?

The above described context provides an exciting playing field for some solid sport business science fiction debate. So next I present just a few of the issues we debated in Tokyo with a group of 30 senior and executive managers in world sport.

The IOC has been slow to realise that the Olympic Games would not forever be a property that cities would compete for to win its hosting rights. Tokyo 2020 is already implementing necessary change by using existing facilities rather than build more white elephants. They are proudly building on a 1964 legacy, yet embracing the fact that the Games will predominantly be watched on second and third screens by those born in the 1990s or earlier. New sports will be introduced to attract a fresh generation of viewers. The Tokyo organisers predict (as per usual and of course incorrectly) a huge economic windfall for the organisers. If they were not overestimating the economic benefits there would not be a political platform to justify the expenditure that comes with being an Olympic host. So do the Olympic Games in their current format have a future? I think Los Angeles and Paris will have to provide the transformational platform that will enable the survival of the modern Olympics. If they don’t, the Games will die a slow and sad death.

On national and international governing bodies (of power), will FIFA and UEFA, as prime examples become irrelevant, as a result of resource power shifting to a few, very, very rich business moguls? Of course, there have been attempts by 16 or later 32 of the most powerful European clubs to break away from UEFA. UEFA responded accordingly and created the Champions League and FIFA has extended its championship portfolio across age and gender. But FIFA and UEFA do not own the workforce of football talent. The (owners of) teams do. Soon my beloved Ajax Amsterdam http://english.ajax.nl/streams/ajax-now.htm) with many other great European teams will have to qualify for the Champions League when finishing in second or third position in their respective domestic leagues. EPL, La Liga and the Bundesliga on the other hand, can send 3 or 4 of their teams straight into the CL. So will Ajax ever be like Real Madrid again? In my humble opinion, this can only happen if five or six billionaires decide that they will run their own competition, and in the process, buy the team and player properties that will play in that league. They will (and the City Group is) buy(ing) properties that cover spectator and merchandise markets, and be the owner of deep cultural intellectual property that generates value. That is why Ajax will be an asset in a football portfolio of a billionaire. Because their talent development expertise and performance culture remains world class. But under UEFA, Ajax and so many other former Euro football super powers will not revive their glory days.

Then let’s turn to the sport performance. Doping use is rife in the world of sport, epitomised by Russia, and largely ignored by the IOC. Money drives a win at all cost mentality. Whilst various authorities are struggling to combat ‘old doping’, in labs around the world where medical and sport science is advanced (https://www.vu.edu.au/institute-of-sport-exercise-and-active-living-iseal/research-programs/sport-science/genes-performance), a new dawn of performance enhancement is rising. Rapid advancement of knowledge about the genetic determinants of physical performance, and how to manipulate it, will raise the bar of detection of illegal use to a whole new level. The blurry line between recovery from illness or injury and illegal performance enhancement will become wider and harder to police. How and when to intervene in the genetic building blocks of humans, and what end does or does not justify which means, already is a huge issue. If the athletes of the former Democratic Republic of East Germany, Lance Armstrong and 100s of his peloton colleagues or Russian Olympic athletes are chemically enhanced human beings, what are we going to do with the sporting cyborgs that are being developed in (dark) labs around the world now? How can we prevent the creation of freak athletes in countries where the ethical frameworks are not accommodating for robust regulation and legislation?

Although there is so much more to consider, one final example. It is about the new generation of whizz kids who know more about mathematics and less about sport. Will data scientists and data analysts be the new sport marketing gurus? Data is at the centre of it all and of course legal betting agencies and illegal betting syndicates are all over this. In the recent past, the revenue generation in sport has largely been driven by collecting (consumer related) data by the sport organisation or marketing agencies. Stock standard market research. However, in the age of machine learning, big data analytics, and pimple faced kids creating predictive algorithms, the data is already out there. It becomes more a question of what behaviour one wants to predict and less an interpretation of past consumption. Tennis Australia and Victoria University have set up the Game Insight Group (https://twitter.com/TennisAusGIG). Data scientists have used open access facial recognition software and rewritten it to identify the range of emotions that (Roger, Rafa, Novak and Andy) express when winning and losing points (Emotion Tracker). The study delivered significant results in regard to predicting the outcome of the next point, given the facially expressed emotions of the players. This project should warn us that whatever digital fingerprints we leave, marketeers, and sport marketeers will use it, combine it, refine it, and then enrich it to sell us more sport, or indeed, predict the outcomes of sport and sport performance.

Here we are wondering about the future of sport. Frivolously if we can but with a healthy dose of concern about what seems a crumbling foundation of the community driven values of sport. Sport will only thrive in a world that offers fertile ground. The US, Russian and Chinese leaders don’t give us much hope to build on. We also continue to stick our head in the ever-warming desert sands of climate change. When walking past the gaming parlours around Tokyo’s Shibuya station, where neon lights and gaming noise aggressively compete for the attention of the passing crowds, I eerily find myself in a scene of Blade Runner 2049. Information overload, numbing my senses blocking out the real word. Not a world that I want my kids to live in. They may demand a future with real sport and real sport participation.

And for the heated toilet seats in Japan, they are overrated. They contribute to global warming, even if their focus is local.

The costs (or benefits) of Olympic Winter gold

It is the final day of the Olympic Winter Games in PyeongChang, South Korea. Unlike many Australians, most of whom would prefer the Summer Games or even the Commonwealth Games as a two-week broadcast or social media sport watching overdose, I have looked up the day’s results on the Olympic Winter app every morning, and upon arriving home turned to the Channel 7 broadcast every night. Thank god, we are in the same time zone this Olympic winter cycle. And thank you Channel 7… for not totally ignoring speed skating this time around. As a Dutch Australian, or Australian Dutchie, whatever you prefer, I have a sporting love affair with the Winter Games. Speed skating is in the genetic makeup of the Dutch, and once again, the medal tally of PyeongChang confirms this extreme specialisation by the 17 million citizens’ nation. 17 medals of which 7 gold in speed skating and 3 medals of which one gold in short track speed skating. 5th on the overall medal tally of the 2018 Games. If you think this is an amazing achievement, think again. Norway, with 5.3 million citizens, topped the medal tally with 39 medals, 14 of which gold, outperforming much bigger nations such as Germany, Canada and the USA in second, third and fourth spot.

The Guardian (https://www.theguardian.com/sport/2018/feb/22/norway-winter-olympics-success ) reported that Norway achieved this feat on a 10th of the UK’s elite sport budget, embracing camaraderie and grassroots participation as the key factors of success. Admittedly, Norway has mountains, snow, ice and forests in which many of the Olympic disciplines can be readily practised and enjoyed, but it remains astonishing that preparation on a budgetary shoestring and based on egalitarianism has delivered such amazing success. Sport for all is at the foundation of Norwegian sport, and in the Netherlands, this is only moderately different. For decades, the Dutch have spent roughly 70% of their federal budget for sport on community and grassroots sport participation, much like the Norwegians, and unlike Australia, where about 70% has gone into elite sport preparation.

From a sport business point of the view, the Dutch speed skating success is funded by private business rather than huge government investment. Other than in Norway, Dutch speed skaters are full professionals, employed by corporate teams that are sponsored by business. The contribution by the Royal Dutch Speed Skating Federation is modest compared to this corporate investment. It pays to sponsor speed skating in Holland – the public interest is huge. The Australian government, on the other hand, has spent about 5.5 million dollar per medal won in South Korea, in stark contrast to the efficiency of success in Norway and the Netherlands. The New Daily notes that Olympic Summer success for Australia is even more costly at over 11 million per medal, but all of this delivers a health return to society according to CEO of the Australian Sports Commission Kate Palmer, who notes that “For every athlete who represents Australia at an Olympic or Paralympic Games, there are untold thousands of kids who have dreamed or are now dreaming of representing Australia or just giving sport a go. It sets so many people on a path to a healthy and active lifestyle. (https://thenewdaily.com.au/sport/winter-olympics-2018/2018/02/24/winter-olympics-2018-olympic-funding/?utm_source=Responsys&utm_medium=email&utm_campaign=20180225_Sunday_Best.

However, the discussion to be had in Australia remains about what would be the best bang for our buck, and I patriotically refer to my country of birth, to compare with my country of adoption. If we are to best benefit from the money that we as Australian taxpayers spend on sport, where should it go? To me, the Netherlands is a shining example of a reasonable balance. Elite sport is important and as a professional or aspiring athlete in the Netherlands, the provisions, allowances and elite sport environment is pretty good. There is also a healthy sport business climate where the costs of elite performance are transferred to the private sector, rather than being dependent on government handouts. Holland performs well at Summer and Winter Games (on balance better than Australia and Norway) and also rates high on medals per head of population at both events. I absolutely love the socialist attitude of the Norwegians – that sharing and collectiveness can deliver amazing results – but some good basic capitalism, and in the process backing winners, can complement this. In the end though, there is one thing that Norway and the Netherlands have in common, and as trump card over Australia when it comes to the Olympic Winter Games. Winter sports are in their blood – with a whole nation bound to support their elite performers during cold, dark and wet or freezing winters. In Australia, the weather is simply too nice to be passionate about snow, ice, wind and bloody cold weather.  

Lance Armstrong was only the leader in the doping peloton: cycling doping doctor explosive confessions

Peter Janssen was a doctor in the cycling peloton for more than two decades. At the age of 75, from his home in Thailand, he seems to seek salvation for his sins. In an explosive exposé, he fully discloses his systematic experimenting and provision of epo and blood transfusions in particular, and of his sophisticated scientific dodging of doping controls. Riders under his guidance have been extraordinarily successful, and only if they neglected his advice on dose and timing of doping were they found out. He reveals everything in a tell all 7-page spread in Dutch national newspaper ‘De Volkskrant’ (9 September). The dramatic interview names Olympic gold medallist Leontine van Moorsel and Tour the France (stage) winning riders Lance Armstrong, Steven Rooks and Gert Jan Theunisse. The article is the culmination of almost a decade of work of investigative journalists Thomas Blom and Misha Wessel.

The interview is riveting reading, when I dig deeper into the article it feels like being in an exciting Hollywood thriller. I am on edge of my seat and can’t wait to read the next paragraph. Ironically, progressing through the piece, it feels almost like Lance Armstrong being pulled back into the peloton. Janssen comments that Armstrong is ‘credited with having his doping regime well organised, nonsense, there were so many more riders who had it all well figured out’. The movie that should be made of Janssen’s story will develop the character of a man not overly troubled by deep consideration of ‘right and wrong’ during his early years as a doctor. Rather, the end of improving performance justifies the means. Medical science practiced within the boundaries set by controlling agencies makes this legal and as such acceptable practice - is what you can derive from Janssen’s story. In 1986 he became one of the first medical staff members in the professional cycling circuit, where the real power firmly lay with the ‘soigneurs’, the massage and recovery specialists that every team had. Janssen comments on how he found it hard to be accepted as the medical support professional and that he found ‘enormous amounts of steroids, vitamins… testosterone and cortisones in particular’ in the medicine cabinets of the soigneurs. ‘Andriol was the routine supplement’.  

Janssen became very interested in exploring the boundaries that were set by developing doping testing schemes. He worked with a professional anti-doping testing lab in Utrecht, in the Netherlands, to determine how much Andriol his riders could take without being detected, and started administering such amounts to his team.

Janssen becomes an expert in dodging the doping controls. He also is fascinated by finding new ways to improve performance. He learns from Francesco Conconi’s scientific article about blood transfusions administered to Francesco Moser when he beat the world hour record in 1986, that he is on to something. Dutch riders Steven Rooks and Gert Jan Theunisse destroy the competition in the mountain stages of the 1988 Tour de France. Theunisse however, tests positive for testosterone. ‘I told him not to use it’, Janssen explains in the article. ‘They were both administered their own blood and did not need the Andriol. We were on a better system’.

It is really interesting to see that for a period of about 15 years, Janssen is obsessed with trialling and testing various methods of performance enhancing drugs, and to see how they can be administered within the boundaries of doping controls. He states at one point that he never thought it was criminal what he was doing. ‘As a GP you also have to make a call if a 12 year old girl asks you a script for anticonception drugs’.

Epo was the next big thing in the 1990s and he made sure to have connections with clinical testing facilities in hospitals to get his blood tests done for his riders. They systematically used saline water infusion or Minrin (which retains water in the body) to keep the haematocrit (red blood cell) count below the threshold. One statement to me says it all… ‘I used epo myself and it is amazing. If my son was riding in the Tour I would tell him, take some epo, because you can’t convince me that finishing the Tour is a physiologically healthy thing to do’.

I think that the ethical mirror is held up to Janssen when he realises that the testing and as such, making positive tests go away is strongly influenced by senior administrators at the UCI, the world governing body of cycling. Former UCI President Hein Verbruggen told him once that the UCI was not there to declare all those riders who tested positive as cheaters, it was their task to protect the sport of cycling by managing the control and detection process. Both the UCI and the peloton’s doctors, according to Janssen, would inform each other about upcoming tests, and in some cases, make positive tests go away.

During his final years in the peloton Janssen completely changes track. He is now convinced that the systematic doping culture is destroying the sport, and he proposes to the UCI to use his knowledge to put together a testing system in his own team, to screen all riders, also before they join the team.  A zero-tolerance policy… However, when this late in life enlightened move from systematic doping use to its systematic detection and prevention of its use fails – teams simply use his system to prevent their riders from being caught – he leaves cycling in 2009. It took him another 8 years of reflection to bring up the courage to tell it all, and make peace with himself. What will the rest of the cycling world say?  

why the UFC is leaving boxing for dead

The objective of the fighters in the Ultimate Fighting Championship (UFC) is pretty much the same as that of boxers in various rivalling boxing associations – to smash or punch the living daylights out of each other. However, UFC is raking it in all over the world whereas boxing, the established centuries old ‘original’ sport of fist fighting itself is literally fighting for its life. Whatever is left of emerging boxing talent is walking over to the rich UFC side. What makes UFC such a great example of modern day sport business entrepreneurship? The answer is simple.

When UFC, on the verge of bankruptcy, was bought by Zuffa LLC in 2001, the development of the sport was charted along the lines of innovative product development and contemporary marketing. Mixed Martial Arts (MMA) is the wide talent basket that fighters can be drawn from. Not rocket science, just smart business planning. The traditionally governed sport of boxing has been spending a lot of time and energy infighting between the various global boxing associations about who is the most important and successful governing body. UFC in the meantime has been working on building its profile, developing a mixed martial arts proposition, and riding on the wave of reality shows of the 2000s to create the TV series ‘The Ultimate Fighter’. UFC produces more than 40 live events per annum, and boasts the largest pay-per-view audience of any sport in the world broadcasting to more than 120 countries, reaching close to a billion viewers.

However, it wasn’t pay-per-view that launched the UFC into the mainstream of globally successful sports but rather a seven-year deal with Fox Sports in 2011 ensured that UFC would be introduced to millions around the world. The value of the initial broadcast deal is likely to quadruple come 2018. Unlike boxing, UFC bosses are unified and have embraced the preferred means of communication of the new generation. Dana White, UFC’s President is one of the most followed sport executives in the world with more than 4.7 million Twitter followers, UFC has over 6 million, and more than 21 million people follow UFC on Facebook. In 2011 UFC launched a Twitter incentive program. The fighters with the highest number of followers received prizes and in 2015 a Spotify campaign challenged fans to vote for the best walkout song. https://www.mmamania.com/2012/6/11/3078173/ufc-walkout-music-fan-vote-facebook-spotify-twitter-social-media

On http://www.ufc.com/ you can find links to UFC FIGHT PASS™, which is a digital subscription service for exclusive live events, and original content. The UFC organization also licenses over 100 UFC GYM® locations and it owns UFC.TV® , UFC FIT® (an in-home fitness and nutrition program), UFC Magazine, and a videogame franchise with EA SPORTS, UFC Fight Club®UFC Fan Expo®UFC branded apparel, DVDs and Blu-rays and Topps Trading Cards.

Surely big data and analytics are next? Of course. Any business savvy sport that is looking to create a platform for product innovation, upscaling and personalisation at the same time, needs to be on the data collection and value creation bandwagon. The new owners of UFC, WME/IMG, who bought the company for over 4 billion in 2016 are in the process of further transforming the sport and how it is and can be consumed. Sensors placed in the stadium, the shorts, gloves, anywhere they can be fit, will deliver data on punching power, kicking speed, time to or speed of knockouts, energy expended, biometric information and so on. This is not only great value adding information during the event and the various broad and narrowcastings, but it also can be used to build intricate narratives around the fighters, who in turn can construct their personal brands through prolific social media sharing and exposure. Good commerce… and from where I sit, hopefully some really good sport science and sport business intelligence as well.

So boxing… you may be in the same business, but are you in the same league? Better get your sport business act together if the sport is to survive. Do you want see some comparative stats of Boxing versus UFC? Check this out and see how UFC is rapidly closing the gap or better, leaving boxing for dead, sport business wise. https://sports.bwin.com/en/news/infographics/ufc-vs-boxing-graphic,116485.html

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