Wednesday, 14th November 2007

DID YOU KNOW…?

* Israeli entrepreneur Moshe Hogeg has bought a club in the country’s sixth division where the fans decide by email vote who plays. Hogeg bought Tel-Aviv amateur side Hapoel Kiryat Shalom for €180,000 and visitors to his website vote on the line-up and tactics during their games in the Israeli sixth division. During matches, fans - 10,000 logged on for the first game of the season - watch the game on a live video feed and use a chat forum to debate changes which are then then voted on and the coach, sitting in the dugout with a laptop, carries out their wishes. Hogeg said: “Most players are happy with it. One has been at the club a long time and normally would be in the starting XI but he has been voted out. He isn't very happy.” Source: Football Insider, 13th Nov 2007

* Money in sports. The size of the entire US sports industry in 2006 was worth $213 billion (about Sh14 trillion), more than twice the size of that country’s auto industry and seven times the size of its movie industry. Media broadcast rights account for $6.99 billion or 3.6% of the total. The Big 4 League and NASCAR total $5.29 billion while college sports amount to $1.06 billion. Other sports make up the balance $640 million. Source: Sports Business Journal


SPORTS SHORTS

* Rupavahini, the Sri Lankan state broadcaster, has agreed to act as a sponsor of the country’s domestic cricket competitions for the next five years. The deal is worth SLRs50 million ($453,000) and will permit Rupavihni to provide live coverage as well as financial support for first class, one-day and Twenty20 matches organised by Sri Lanka Cricket. The Premier limited overs competition begins on Wednesday and Rupavihni will televise both semi-finals and the final live in December. Source: Sportcal, 13th Nov 2007

* Xinhua Finance Media subsidiary Small zWorld Television Limited has agreed a deal with NBC Olympics to jointly produce an animated series about the Games. ‘Ring Force Five’ will feature five futuristic Olympians who travel back in time to experience the “true essence and spirit of the modern Games,” according to a statement. The two companies will co-operate in the creation, promotion, distribution, product merchandising, sponsored product placement and advertising sales related to the series. The first project related to the series is likely to be a one-hour DVD, which will be released in the United States just before the start of the 2008 Beijing Olympic Games, which will run from August 8-24. Source: Sports Media, 13th Nov 2007

* India's mobile advertising is catching on like wild fire, the new trend is gaining speed to the point that industry professionals are saying it could very easily soon surpass online advertising. Online advertising in India is expected to peak by the end of 2009, when mobile ads are supposedly going to skyrocket. It is thought that customized, targeted advertisements will be what boost the growth of mobile ads. Currently online advertising claims about $75 million which is 1.8% of the country's ad spend. It is projected to grow by 3.1% in the 2008-2009 fiscal year, and another 7.1% in 2010-2011. Mobile only claims about $1.5 million, yet the country continues to add about 7.5 million mobiles a month. Online users in India measure at 35-40 million, while mobile users total 208 million, according to a study conducted by The Kelsey Group. Source: Ken Radio, 7th Nov 2007

* Big money and growing consumer interest is turning golf into the fastest growing urban sport in India. For the first time ever, India will host two prestigious golf tournaments in Feb 2008: the $2.5 million European Tour Indian Masters and the $2.5 million Johnnie Walker Classic. The sport is growing in countries such as Korea, Japan, India, China, Germany, UK and South Africa and the golf market in India has been forecast to grow 25% annually in the next five years. Worldwide, golf is a $7.1 billion industry and in India it is estimated to be growing at 30-40% annually, valued at between Rs 50-60 crore, according to golf event management firm, Tiger Sports Marketing, which is managing the Indian Masters. Source: Times of India, 10th Nov 2007

* Australian commercial broadcaster, Seven Network, which televises the Australian Open tennis championships has prolonged its deal with the organisers of the grand slam tournament until 2014. The existing agreement between Seven and Tennis Australia, covering the Australian Open, preceding tournaments and the Davis Cup, the men’s team competition, was due to expire in 2009, but has now been extended by five years. The financial commitment is believed to be significantly in excess of the present $10 million- ($9.1 million-) a-year deal. Seven will have new media rights in addition to free-to air and subscription television rights. The broadcaster has shown the Australian Open since 1973 and will begin high-definition coverage of the tournament in January 2009. Source: Sportcal, 13th Nov 2007

* The Toronto Maple Leafs generated US$23 million in local TV revenues last year to secure the title of the most valuable NHL franchise in the League, according to a new study by financial analyst Forbes. The Maple Leafs collected the top local TV revenues of any NHL team and is worth $413 million, according to Forbes, which creates a ‘rich list’ of all of the United States’ major sports leagues. “With only $6 million per team in national television revenue ($8 million for most Canadian franchises), real estate economics and local television deals still determine the league's pecking order,” stated a press release from Forbes. Source: Sports Media, 13th Nov 2007

* The Italian government has approved an overhaul of the way domestic football TV rights are sold, according to a report. Sole 24 Ore claims the rights will be sold collectively rather than by individual clubs, although the decree would still be subject to parliamentary approval. If the change is given the go-ahead, the new process will be activated in 2010. The report added that the league would be able to auction rights for individual distribution platforms or offer different packages to broadcasters, and the contracts would run for a maximum of three years. Source: Sports Media, 13th Nov 2007

* The FIH, field hockey’s world governing body, will introduce a new world-level event in 2009 to ‘give more continuity to the calendar.’ The FIH said it was important for top countries to meet more regularly, as under the present format they compete only in the Olympics and the World Cup every four years, and in the Champions Trophy annually. The event will take place in Dubai in early 2009, bringing together the top eight men’s and top eight women’s teams. The decision was confirmed at a meeting of the FIH executive board in New Delhi on Friday. The board held its first meeting with organisers of the 2010 World Cup in the Indian capital after New Delhi was last week chosen to host the event. Source: Sportcal, 13th Nov 2007


MORE NEWS

Asia/Rights: MP & Silva and Dentsu Ties Up Major Serie A Media Rights Deals

MP & Silva and Dentsu Inc. announced today that they have concluded deals with 24 Asian broadcasters and telecom operators for the media rights of Italy’s top professional football league, Serie A. The agreements covers 16 territories – spanning across the majority of countries in the Asia-Pacific region, including China, Hong Kong, Japan, South Korea, Singapore, Taiwan, Macau, Brunei, Indonesia, Malaysia, Bhutan, Laos, Cambodia, Myanmar, Thailand and Vietnam.

Companies that have signed major deals with MP & Silva and Dentsu include Japanese pay-TV operator, SKY PerfecTV!, China terrestrial network, CCTV, Korea-based MBC ESPN, Chinese pay-TV, Eurosoccer TV, and Indonesian free-to-air broadcaster, TRANS TV.

Major terrestrial channels in Indonesia, China, Thailand and Japan have also signed up to broadcast ‘LIVE’ and delayed matches, and have achieved strong viewership in their respective countries so far – with Indonesia’s TRANS 7 achieving record ratings for a recent match between AS Roma against Internazionale. Four Japanese terrestrial broadcasters, Fuji Television Network, Nippon Television Network, Tokyo Broadcasting System (TBS), and TV Asahi have also agreed terms to broadcast ‘LIVE’ and delayed matches, and will greatly extend Serie A’s reach in Japan.

In a milestone agreement, the agencies have also signed a deal with Taiwanese broadcaster, Chinese Satellite Network, which will see Serie A matches being broadcasted in the country for the first time.

The inked deals will also see Serie A matches being distributed across multiple platforms and formats – especially in the key markets in the region, such as China (free-to-air terrestrial, pay-TV satellite and cable, ADSL PC, and mobile), and Japan (free-to-air terrestrial, pay-TV cable and satellite, and ADSL PC). In Hong Kong, consumers will be provided with two different pay-TV platforms via Hong Kong’s leading operators, PCCW’s NOW TV (IPTV), and i-CABLE (satellite and cable). Source: Sports e-Media, 12th Oct 2007

India/General: New Dates Sought for Asia Cup as Twenty20 Takes Precedence

The Board of Control for Cricket in India has requested new dates for the Asia Cup, a one-day competition involving national teams from across the continent, to ensure that it does not clash with its lucrative new Twenty20 event. The Indian Premier League, involving eight franchise teams and top domestic and overseas players, is due to take place in April, when Pakistan is due to host the ninth edition of the Asia Cup. A board meeting of the BCCI was due to be held today with a proposal to be issued to the Asian Cricket Council to move its six-team event.

The Asia Cup has already been delayed on several occasions because of fixture congestion, but the ACC is committed to staging the tournament on a biennial basis from next year. It was last held in Sri Lanka in 2004, when the hosts defeated India in the final. The ACC is likely to consider rescheduling the 2008 event at its meeting in India in December. India seem more committed to an Asian tri-series that will take place in Bangladesh in May of next year. The BCCI confirmed yesterday that the national team will participate in the event, which will also involve the hosts and Pakistan, the replacements for South Africa.

Meanwhile, plans for the inaugural IPL are advancing, with the organisers having invited media groups ESPN Star Sports, Nimbus Sports and Sony Entertainment Television to present offers for the rights on November 17. The tender document will be available from November 21 to December 7 and the rights will be awarded by the BCCI on December 7. Interest will have been boosted by reports that the Future Group and the Manipal Group are looking to team up with Indian star Sachin Tendulkar to own the Mumbai-based team.

The Kingfisher Group, another Indian conglomerate, is said to be targeting the Bangalore franchise, while telecoms giant Bharti Airtel and drinks company United Breweries are among the other companies looking at IPL teams. The BCCI is said to have set a floor of $50 million for a 10-year ownership deal and bids could range from $75 million to $90 million. The IPL will comprise 56 games between eight teams competing for $3 million in prize money and the organisers have signed up around 50 foreign players, including Australians Ricky Ponting, Shane Warne and Glenn McGrath, South Africans Graeme Smith and Shaun Pollock and Pakistan star Shoaib Akhtar.

The BCCI is hoping to capitalise on India’s triumph in the inaugural World Twenty20 in South Africa in September and supersede the Indian Cricket League, which is organising an unofficial Twenty20 competition due to start later this month. The six-team ICL, which is backed by Essel Group, the owner of media group Zee Telefilms, has also been recruiting overseas, with Chris Read, the former England wicketkeeper, the latest player to be linked with the event.

The BCCI has threatened to ban domestic players who sign up for the competition and the England and Wales Cricket Board has warned that it could take action against county players who participate. The first ICL Twenty20 competition takes place from November 30 to December 16 at the Tau Devi Lal Cricket Stadium in Panchkula, Chandigarh. Source: Sportcal, 13th Nov 2007

Elsewhere/General: Sportfive and IEC Launch the Transorientale

Sportfive and IEC in Sports launched the Transorientale, a 10,000 kilometre, 17-day rally. The rally, put together by triple Dakar champion, René Metge, will kick off in Saint Petersburg on June 12, 2008 and finish in Beijing, at the Great Wall of China, on June 28. The rally will take in tracks across wild, stunning scenery and encounters with the differing cultures of Russia, Kazakhstan and China, three countries in full economic expansion.

To enable everyone to participate at their own level and in accordance with their passion, vehicle capacity and budget, several categories have been set up: the competition raid, which will include a relay option, the regular raid and the discovery raid - a first-time for this type of event. Sportfive will handle the audiovisual production and marketing of the event, working to find and engage sponsors. IEC in Sports will handle the sale of the audiovisual rights. The two companies, subsidiaries of Lagardère Sports, expect to attract a wide portfolio of competitors as well as constructors and partners for the rally. Source: Sport Business, Sportcal, 13th Nov 2007


ARTICLES, COMMENTS & OPINIONS

Desire for Profits Killing Clubs' Identities
Phil Holland comments on ESPN Soccernet, 9th Nov 2007

Just in case anyone needed reminding of the influence wealthy foreign investors have over football in the UK and the English Premier League in particular, the publication this week of the Football Rich List Top 100 confirmed the worst fears of many. Domestic football on the Sceptred Isle is undoubtedly becoming the preserve of the enigmatic billionaire from overseas, usually shrouded in mystery and occasionally besieged by skeletons emerging from closets.

The list, compiled and published by FourFourTwo magazine, shows that eight of the richest men involved in British football clubs are billionaires and that four of them (Roman Abramovich, Alisher Usmanov, Malcolm Glazer and Stan Kroenke) are foreigners. Simply being foreign is not the problem, unless you happen to be a knee-jerk reactionary or an extreme football traditionalist, the worry is that football clubs in the UK are at risk of losing their status as vital community assets.

When wealthy investors from overseas emerge and assume controlling interests in clubs, which in many cases are over 100 years old, the worry is not only that the investors know little of such heritage, but that they care even less. One question in recent years has been why only foreign investors are taking an interest in the Premier League? Well, it now seems the wealthy of Britain are catching onto the craze and getting involved. The top ten new entries on the Rich List shows that half are British businessmen (Bernie Ecclestone, Mike Ashley, Lord Ashcroft, Michael Spencer and Lord Harris), however, this still means that 50% of the new entries are from overseas.

One dilemma worrying those people who dwell on such matters is why these wealthy individuals, be they British or not, are choosing to get involved in football in the first place, questioning their long-term objectives. In other figures released this week The Daily Telegraph newspaper reported that the Premier League is worth £700million more than other leading leagues in Europe based on revenues derived from television and media rights sales, especially with regard to sales in markets around the world.

The Premier League's overseas television rights, which makes the league available in more than 600 homes in 202 countries across the globe, is worth £625million for this and the next two seasons. Such is the interest in the Premier League internationally that there is an increasing expectation that overseas rights sales could eventually be worth more than the £1.7billion currently paid for domestic coverage in the UK from pay-TV operators BSkyB and Setanta.

And this is the reason investors are so keen to get in on the action. With the possible exception of Roman Abramovich, who with a personal fortune estimated in excess of £10billion can afford expensive pastimes; businessmen are getting involved in football because they believe the potential return makes their investment a no-brainer. The worry for many, apart from the inevitable watering-down of clubs' local identities, is what will happen if a club's Sugar Daddy gets bored and decides to get out?

Unless a club is run prudently, like an efficient money-making machine, it will have no chance of surviving without the wherewithal of its benefactor. But do we really want our clubs run in such a way? That is not say clubs should not be run prudently, without paying careful attention to their profit and loss spreadsheets, but there is something distasteful about your local club being run as a profit driven entity which pays a handsome dividend to the already stratospherically wealthy.