walter bugno, tribal sports group | money in sport
Post on 17-Jul-2015
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WELCOME TO MELBOURNE
WHY MONEY IN SPORT?
Because everything about sport has changed
WHY MONEY IN SPORT?
…it started with the “spirit” of sport
WHY MONEY IN SPORT?
…but soon shi9ed to the “materialism” of sport
WHY MONEY IN SPORT?
…and today its about survival and the “business” of sport
WHY MONEY IN SPORT? …because sport has become a compe<<ve business
…with its own ecosystem of money flows in many direc<ons
…and where every individual, en<ty, associa<on, organisa<on is aiming to maximise what it makes and what it takes
THE BUSINESS OF SPORTS TODAY The market for sports events (<ckets, media rights, Sponsorship) in 2014 was US
$80billion, growing at an impressive 7%
THE BUSINESS OF SPORT The overall sports market (spor<ng goods and licensed products, health and fitness clubs, events and non event Ac<vi<es) in 2014 was in the order of US$700billion
1% of Global GDP
THE BUSINESS OF SPORT TODAY Media Rights and Sponsorship
drive Revenues
Sponsorship 35% Tickets 27%
Other 3%
Media Rights 35%
Record Amounts of Cash being doled out
THE BUSINESS OF SPORT TODAY Football is king … but there is growth across all the seven major sports … football, American
football, baseball, Formula 1, basketball, hockey and tennis
THE BUSINESS OF SPORT But … its not all about revenues
… the cost of winning is spiraling … and winning is the best guarantee for protec<ng revenues
Winning has become a virtuous cycle
THE BUSINESS OF SPORT The fastest rising cost is the cost of sports biggest assets … THE STARS
THE BUSINESS OF SPORT
The growing imbalance between: • Revenues and Costs • Winning and Losing
…has an ever increasing level of financial pressure on clubs, sports and associa<ons.
A Snapshot of Headlines and Facts
-‐ 56 clubs in England’s top 5 football divisions have gone into administraFon since 92/93 -‐ Average wages in the English Premier League have risen from £77,083 in 92/93 to over £1.5m now -‐ Manchester City’s wage bill of £233m compares to Southampton’s £47m -‐ 13 of France’s Ligue 1 football clubs are for sale -‐ Italy’s Serie A football clubs had a combined loss of €186m in 13/14 (€64m loss in 2005/6 is the
close to break even)
THE MONEY IN SPORT CONFERENCE
THANK YOU
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