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Business in sport

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robin lombaerts

on 9 March 2015

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Transcript of Business in sport

PLAN
Introduction
FIFA and World cup
Football clubs
Superbowl
Olympic Games
Sponsors
Conclusion
Business of sport
Quizz 1 : Who earned the most in 2014?
Cristiano Ronaldo
LeBron James
Lionel Messi
Floyd Mayweather
Tiger Woods
2nd -> 80 million
3rd -> 72 million
4th -> 64 million
1st -> 105 million
5th -> 61 million
FLOYD MAYWEATHER
2 fights in 2014

World Champion

Never loose

Instagram
FIFA
The federation international of football association
was founded the 21 may 1904
Headquarters in zurich
209 members associations
400 people over 35 countries
FIFA and World Cup
FOOTBALL CLUBS
Introduction


Transfers & Salaries


Investment


Revenue & Expenditure
150 million TV viewers

746 million euros in 2010
Europe

Best world clubs

Champion's league
Incomes and tourism

5 billion euros in France

400 billion euros in the world
INTRODUCTION
Transfers and Salaries
Mercato
Quizz : How much cost the player?
Cristiano Ronaldo
28 million euros

66 million euros

94 million euros
Zlatan Ibrahimovic
58 million euros

70 million euros

90 million euros
Axel Witsel
40 million euros

50 million euros

60 million euros
Lukaku
12 million euros

23 million euros

34 million euros
Neymar
40 million euros

64 million euros

94 million euros
Quizz : How much earn they per year?
Ronaldo
5 million euros

12 million euros

17 million euros
Ibrahimovic
7 million euros

15 million euros

24 million euros
Lukaku
5 million euros

10 million euros

15 million euros
Messi
8 million euros

13 million euros

20 million euros
Kompany
6 million euros

13 million euros

17 million euros
Dennis Praet
800 000 euros
SUPERBOWL


Annual championship of NFL
NFL = 2 conferences : NFC and AFC
32 teams
Played between winners of NFC and AFC
SUPERBOWL
SUPERBOWL
NOT JUST A MATCH !
Phenomenon in the USA
Most watch american television broadcast
1/3 of americans watch it
SUPERBOWL
SUPERBOWL
Entertainment
Show in half-time

Famous singers

Almost 4 hours
Priority for big companies

Costs are constantly increasing

$4,5 million for 30 seconds
SUPERBOWL COMMERCIALS
COST
SUPERBOWL COMMERCIALS
Importance of commercials
Commercials have an own life
Cultural phenomenon
Survey from USA today
SUPERBOWL COMMERCIALS
Recent commercials ways
The sneak peek
The social spot
Ads that make a statement
FIFA
Fifa congress
Governing rules
Implement and administer
FIFA
INCOME
Event revenue
Television and marketing right
Brand licensing
$37 million between 2007 and 2010
EXPENDITURE
Football development
help poor countries
WORLD CUP
Most attractive and fascinating
60 % of the world
WORLD CUP
$600 million of tourism revenues
Slow productivity
Second day americans eat the most
Americans spend $12 billion
Belgians players
+-210.000 euros
INVESTMENT
Answer : 94 million euros
Brazil government spending
Answer : 70 million euros
Answer : 40 million euros
The stadiums : $4 billion
Security : $1 billion
$11 billion on betterment of infrastructure
Answer : 34 million euros
WORLD CUP
Brazil expenditures
More than $15 billion
Expenditure unnecessary
People protest
Answer : 94 million euros
Answer : 17 million euros
Answer : 15 million euros
Answer : 5 million euros
Answer : 20 million euros
WORLD CUP
Answer : 13 million euros
Billionaires
Tourism
Good self-image
Excellent revenue
Attractive packages
Economic boost
WORLD CUP
Bought for 50 million euros

Invests 400 million euros
Pubs and events
REVENUE AND EXPENDITURE
TV rights

Tickets

Derivatives products
Tradition
Specials evenings
TV RIGHTS
England : £1,7 billion

France : 750 million euros
Glory cries
Tears
Beers and other beverages
WORLD CUP
Tickets & derivatives products
Advertising and broadcasting
World cup everywhere
Attract customers
Increase sales
Broadcasting right
EXPENDITURES
Transfers & Salaries

Maintenance fees

Grounds fees
WORLD CUP
Panini stickers
Collecting stickers
150 million of stickers
Magic formula
Large sum of money
BAD SIDES OF THIS BUSINESS
Corruption
Bets
ECONOMIC CONSEQUENCES
SPONSORSHIP
PLACE OF COMMERCIALS
Financial support
Commercial opportunity
Brand awareness
SPONSORSHIP
Relationship
Sponsor
Sponsored
Attract the audience
Product awareness
Maximize revenue
Maximize benefits
Maximize popularity
OLYMPIC GAMES
2 Olympic games : winter and summer

Founded in 1896 in Athens

Traditions : Olympic's flag, Olympics's fire
ECONOMIC ASPECT
SOCHI
Lots of investment

Starts from nothing

Artificial snow
BEFORE AFTER
SOCHI TODAY
Ghost city

Empty
NOT AN EXCEPTION
-> Case of Athens !
BAD MANAGEMENT
Budget not well predicted

Don't think about long term and recession

Real waste !
POLITICAL ASPECT
Big country : maintain power

Small country : take advantage of the exposure

Boycott

SPONSORSHIP
Advertisement >< Sponsorship
INTRODUCTION
Advertisement
emotional appeal
Direct communication
SPONSORSHIP
SPONSORSHIP
Advertisement >< Sponsorship
Relationship
Win-win
SPONSORSHIP
Economic role
Interest of the brand
Contracts
INTRODUCTION
INTRODUCTION
INTRODUCTION
City : improve economy

Athlete -> new sponsors
Conclusion
CONCLUSION
QUIZZ
Which player is sponsored by :
NIVEA :
Eden Hazard
Lebron James
Tiger Woods
QUIZZ
Which player is sponsored by :
KFC :
Rafael Nadal
Lionel Messi
Kobe Bryan
QUIZZ
Which player is sponsored by :
Gilette :
Vincent Kompany
Roger Federer
Micheal Phelps
QUIZZ
Which player is sponsored by :
Puma :
Kevin de Bruyne
Novak Djokovic
Usain Bolt
SALARIES
For the game, for the World
Quizz
Full transcript