Friday, 11th May 2007

HEADLINE OF THE DAY

Agency Invests in the Future of Superbike World Championship

Infront Sports and Media has today made its first significant venture into motor sport by investing in FGSPORT Group, the Italian company which holds the commercial rights to the FIM Superbike World Championship. FGSPORT, which also organises the supporting Super Sport World Championship and Superstock European Championship, will become part of Infront although its management team of Maurizio and Paolo Alberto Flammini remains intact.

The Flammini brothers founded the world championship in 1989 and regained control in 2003 after it had been owned by Octagon. Earlier this year, there was speculation that the championship could be put up for sale. FGSPORT responded by saying that it was considering various partnership proposals and prepared to join forces ‘with strong commercial, industrial or financial entities’ to further develop the series and other projects.

Infront said today that it had made a ‘considerable investment’ in FGSPORT and will use its global sales network to increase media coverage and sponsorship of Superbike racing. Stephan Herth, executive director for summer sport, told Sportcal.com: 'Together with FGSPORT, Infront will make the SBK series even more rewarding, achieving a higher level of commercial value, media exposure, appeal to sponsors and excitement for fans.'

The 2007 Superbike World Championship comprises 13 races in 10 countries but the series is particularly popular in English-speaking nations such as the UK and Australia and has ground to make up on the MotoGP World Championship in many markets. Herth said that around 800,000 spectators attended SBK events last year and there is potential for more. Infront was now working with FGSPORT 'on innovative concepts to further develop the series and in particular to accelerate its international development.'

Since the last World Cup, Infront has implemented a management and organisational restructuring under president and chief executive Philippe Blatter, dividing its operations into summer sports, winter sports, Asia and sport services, and FGSPORT will complement the business. Source: SBK Official, Sportcal, Road Racing World, Motorcycle USA, 10th May 2007


THIS WEEK’S QUOTES
Source: BBC Sport Fun & Games

"Two finals in three years - not bad for a little club.''
Liverpool skipper Steven Gerrard twists the knife after his side, branded a "little club" by Jose Mourinho, reach the Champions League final at Chelsea's expense.

"And here is Boupa Diop, his wife had a baby yesterday and he's given it away... the ball that is."
Setanta Sports commentator during the Fulham-Liverpool game.

"I'm just glad I don't have to pay it.''
Alan Curbishley on West Ham's record fine.


SPORTS SHORTS

* Neo Sports is providing a clean feed of the India-Bangladesh cricket series without the logo of the channel or commercials to Doordashan. The Tamil and Telugu language feed to Raj and Vissa TV, however, is carrying the Neo Sports logo. The cricket series kicked off today. In accordance with the Mandatory Sharing legislation with the pubcaster, the marketing is being done by Nimbus and the revenue will be shared on a 75:25 basis in favour of Neo Sports. Furthermore, the telecast is also going on the DD Direct DTH platform. Source: Indian Television, 10th May 2007

* Indian shuttler Chetan Anand and women's pair, Jwala Gutta and Shruti Kurien, paid for their anti-federation stance as the Badminton Association of India dropped them from the Sudirman Cup team. After over a week of feuding between parties, the BAI selection committee met and decided to punish the trio for not attending the ongoing camp in Hyderabad and not showing up for trials. Without top singles player and women's doubles, India will field an under-strength side for the World Team championship in Glasgow, Scotland from June 10-17. Source: Times of India, 10th May 2007

* The National Basketball Players Association has struck a deal with China's state-run investment company, the International Trust & Investment Corp.'s Citic Guoan Group, and will focus on developing business opportunities for active and retired NBA players in China. In April, the NBA said it will form a business unit in China. NBA games reach 314 million Chinese households and that 75 percent of Chinese males, aged 15 to 24, are NBA fans. Source: Sport Business, 10th May 2007

* The Ministry of Information Industry said that China should implement one-way charging while cutting general charges for mobile telecom services. Market observers read the statement as the Chinese government's first official confirmation that one-way charges will be implemented nationwide. Zeng Jianqiu, a professor with the Beijing University of Posts and Telecommunications, said that it is mature for China to carry out the policy and suggested the government give telecom enterprises two years for preparation. Source: Telecom Asia, 11th May 2007

* Malaysia’s fastest growing mobile operator DiGi.Com may buy rivals to expand into the broadband business. There is speculation that a potential acquisitions for DiGi could be Time dotCom, which owns fiber optic networks and a license to offer 3G services. There were reports that DiGi plans to buy Time dotCom from shareholder Time Engineering. That report has been denied by both DiGi and Time. DiGi, which did not win both the 3G and WiMAX licenses, needs to have a broadband business for additional revenue stream in the long term. Source: Telecom Asia, 11th May 2007

* The unions of Thailand’s major carriers TOT and CAT Telecom have voiced strong opposition to a proposed national telecom company to pool the core fiber optic networks of state telecom companies and electricity enterprises. TOT union leader, Nukol Bavornsirinukol, said it was difficult to see how such a plan could go forward since the Council of State had yet to rule on the status of telecom concessions held by private operators. Source: Telecom Asia, 11th May 2007

* Joost, the peer-to-peer video service developed by those behind Skype, has raised $45m from Index Ventures, Sequoia Capital and the Li Ka Shing Foundation, to accelerate product development, global expansion, localization, and service offerings. Index Ventures are old acquaintances from Skype, while Sequoia Capital is a new venture. The Li Ka Shing Foundation is based out of Hong Kong and their inclusion reflects the increasing importance of Asian markets for internet businesses. Source: Ken Radio, Advanced Television, The Daily Reel, C21 Media, 10th May 2007

* Cricket heads the table of sports that Australians are most interested in, according to sports research consultants Sweeney Sports. Almost six of every ten adult Australians (59%) are now interested in the sport. Australian Rules football saw interest increase to a record 56% of adult population, while soccer’s popularity increased marginally with, for the first time, more than half of Australians (51%) now being interested in the sport. Source: Sport Business, Sportcal, 10th May 2007

* Diego "Chico" Corrales has died aged 29 in a high-speed motorcycle accident in Las Vegas. He was a hard-hitting, crowd-pleasing boxer. According to promoter Gary Shaw, he was often a reckless fighter who lived life in similar style. A hard drinker, he appealed to fans with his readiness to go toe-to-toe with his opponent and take as much punishment as he was delivering. His legendary victory over José Luis Castillo was the defining moment of his 11-year professional career. He died on the second anniversary of his unification victory over Castillo. Source: Guardian Unlimited, 10th May 2007


MORE NEWS

Singapore/Business: SingTel Mobile User Base Hits 124 Million

SingTel’s mobile subscribers grew by a record 12 million in the first quarter to top 124 million users at the end of March, the largest such base in Asia outside of China, an AFP report said. It is the largest mobile customer base in Asia outside of China. The increase was driven by SingTel's regional mobile associates especially in India and Indonesia where the fast growing markets have further scope to expand.

Bharti of India signed another record 5.2 million mobile users in the first quarter to bring its overall base to 37 million at the end of March while Indonesia's Telkomsel added 3.3 million users to 39.9 million. In Australia, wholly owned SingTel Optus successfully defended its position in the highly competitive market as it added 60,000 customers during the quarter to increase its base to 6.74 million, the report added.

At home in Singapore, SingTel's mobile users rose by 56,000 during the first quarter to 1.82 million. The telecom firm, majority owned by state-linked investment firm Temasek Holdings, owns stakes in several regional mobile operators as part of a strategy to tap fast growing markets in Asia and reduce reliance on its home market of four million, the report further said. Source: Telecom Asia, 10th May 2007

Asia/Japan/General: JFA Chief Calls for Overhaul in Domestic Game

Japan Football Association president Saburo Kawabuchi has called for a dramatic improvement in the standard of Asian club football if the continent is to make an impact at global level. Kawabuchi, the man credited with creating the J.League, the region’s highest profile and most glamorous league, currently heads up an Asian Football Confederation (AFC) taskforce that is looking at the state of professionalism.

After a disappointing performance by the Confederation’s national teams at the World Cup in Germany last summer, the Japanese administrator believes an overhaul of club football is required. “The FIFA World Cup 2006 is a good example as not a single Asian team advanced from the group stage, excluding Australia. We need to drastically develop clubs which will directly impact on the development of the national team for a meaningful breakthrough.”

Australia is now a full-fledged member of the Confederation, with Hyundai A-League clubs joining the Asian Champions League at the start of 2007, a move that has boosted interest in the championship. However, the J.League, A-League and Korea’s K-League are seen by Asian officials as the only set-ups which match the criteria required to improve the standard of club football. AFC president, Mohamed bin Hammam is prepared to reduce the number of nations participating in the ACL should they fail to meet the standards set by next year. Source: Football Insider, 10th May 2007

Elsewhere/Rights: Negotiations Stall over Euro 2008 Rights in UK

Uefa is reported to have reached a deadlock in negotiations with UK broadcasters over coverage of the 2008 European Championships. Public-service broadcaster the BBC and commercial broadcaster ITV are said to have offered £50 million ($99.8 million) for the joint rights, but Sportfive had set itself a target closer to £90 million for the UK market, according to the Daily Mail.

The joint offer could be lower if England fail to qualify for the tournament. England is currently fourth in its group with six games to go. The listed-event status of the Euro in the UK would appear to obstruct Uefa from seeking rival bids from the pay-television sector. However, it emerged earlier this year that it could test the legislation by awarding exclusive live rights for at least some matches to a pay-television broadcaster such as British Sky Broadcasting.

The governing body could take advantage of a provision in the code which allows for listed events to be broadcast exclusively live by a pay-television broadcaster in the event that a ‘fair price’ for the rights cannot be obtained from any of the qualified free-to-air broadcasters. Source: Sportcal, 10th May 2007

Elsewhere/Broadcaster: Mayweather v de la Hoya Breaks PPV Records

Last weekend’s super welterweight fight between Floyd Mayweather Jr. and Oscar de la Hoya has been confirmed at the richest in boxing history. According to Variety, the fight scored more than 2.15 million pay-per-view buys on HBO, each paying $54.95 to gross a total of $118 million. “de la Hoya versus Mayweather was a record-setting event from the moment the fight was announced,” said Ross Greenburg, president of HBO Sports.

“We are delighted that sports fans recognised the greatness of these two future Hall of Famers and tuned in for their showdown. It’s satisfying to see that boxing still connects with sports fans throughout the country and we are determined to continue to present high-profile fights that capture the public’s imagination.”

The previous record for pay-per-view buys was 1.99 million, generated by the second meeting between Mike Tyson and Evander Holyfield in 1997. HBO has scheduled a primetime replay of the fight this weekend. Source: Sport Business, Sportcal, Sports Industry Group, Broadcasting & Cable, 10th May 2007

Global/New Media: Internet Channel Gives Fans Access to Paralympic World Cup

The ongoing Visa Paralympic World Cup will be broadcast on International Paralympic Committee's Internet channel, ParalympicSport.tv. BBC footage of the event is being carried, which started on Monday and will run through to Sunday. Over 340 athletes from 47 countries are participating at the event in Manchester, UK. On May 13, the channel will air live coverage from athletics and highlights from wheelchair basketball, swimming and cycling. On May 22, the channel will broadcast an international highlights show with the best action from the event.

At the 2006 Winter Paralympics, the IPC's Internet television channel was watched by more than 70,000 viewers from 105 countries, watching an average of four-and-a-half hours during the Winter Games. The majority of viewers came from the USA, Italy, Canada, Germany and Japan. The channel also drew a 5% increase of new viewers every day. Source: Sports Media, 10th May 2007

Global/New Media: Mobile TV Predicted to be Hit

TV could overtake gaming and music as consumer's favoured application for mobile phones, according to research. Services in Japan, South Korea and Italy are attracting millions, confounding critics who said people would not watch TV on a small device. But consumers remain confused by what is on offer, as competing service offer different content and quality. For the UK, a shortage of spectrum needed for mobile TV means adoption of services might have to wait until 2012.

Research firm, Screen Digest, forecasts that mobile TV will put gaming and music in the shade. It predicted that there will be 140 million global subscribers generating revenue of £3.1bn by 2011. There has been a lot of cynicism about mobile TV and the big unanswered question has been whether people would watch it. A slow-down in mobile gaming and the fact that music via mobiles is unlikely to be a money-spinner for operators as people continue to 'side-load' music from their PCs, makes TV the best option for operators to make money.

In Japan and South Korea there are now 5.8m people watching TV on their mobile phones, and more are watching TV on other hand-held devices and in-car systems. In Italy there are 500,000 subscribers to mobile TV services that are run by Vodafone in conjunction with Sky Italia. Vodafone offers consumers the choice of 17 channels and is charged either monthly or offered free to people who sign up contracts. Source: Ken Radio, 10th May 2007