BEING SUCCESSFUL IN

THE WORLD OF SPORTS

FIS Organisers’ Meeting

Cavtat-Dubrovnik,
May 23, 2009

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Content

1. Introduction: external forces and internal challenges

2. Key levers for success

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Sports markets are under pressure from external forces

Increasing competition from
competing formats
• Entertainment driven TV and
viewership growing
• Major events viewership in
decline

Increasing influence of
Key revenue sources are
commercial partners
under pressure
• Schedule and format
• Decreasing sports
Sports market influenced by commercial
sponsorships
under pressure partners
• TV rights under pressure
• Licensees and sponsors
• Sports licensing and
increasingly sophisticated
merchandising is stagnant
and demanding

Pressure to professionalise
sports bodies
• Mismatch in skills and
expertise between demand
and supply-side
• Sophistication of sports
industry
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Increased competition from other content formats

Other entertainment formats

Gaming Movies
Other sports
FIS events are not
only competing
against other sports
Skiing / Snowboard
Opera but against many
Reading Competitions
other forms of
entertainment
Concerts
Music
Theatre
Dance

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Sport is still key content but coming under pressure

Offering by genre (based on televised time) Consumption by genre (based on reach)

100% 100%
11 9 8 7 Others 6 5 5 4 3 3
15 14
11 10 9 15 16 19 16
12 Sports 17 19
** ***
11 11
18 18 Information
22 20 20 19 19
22 23 19 20
22
21 22 Entertainment
20 16 17 15 19 20 20
16 17 17

44 44 42 42 42 41 40 41
36 36 37 38
Fiction

2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005

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Turning “minor” properties into premium events

Premium sports events combine two areas: consumer appeal (1) and
monetization potential (2)

Eur. League
Compelling to consumers with reach

Formula 1 Football
High
NFL NBA

MLB
Medium

ATP/WTA PGA

FIVB
Low

Premium events
Non premium
events

Low Medium High

Monetisation of assets
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Premium sports with higher growth rates (1/2)

• NFL
Premium sports • NBA
• FIFA World Cup
• Formula 1
CHF million • UEFA
Champions
8% p.a. League
Global TV sports rights
26% p.a. 10.4
7.8 8.3
+3% p.a. 6.6 5.9 6.1
4.7 5.3
25.2 3.1
+9% p.a.
22.4 21.9 21.5
20.5
19.4 19.6
16.0 16.5
'98 '99 '00 '01 '02 '03 '04 '05 '06
• WTA/ATP
Other sports • PGA
• EHF Champions
League
+3% p.a. +0% p.a. • Winter Sports
15.4 14.8 • etc
14.3 14.6 14.6 13.6
12.9 12.8
11.8
'98 '99 '00 '01 '02 '03 '04 '05 '06

'98 '99 '00 '01 '02 '03 '04 '05 '06

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*National football leagues not included; Source: PWC, Wilkofsky Gruen, sportsbusiness.com
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Premium sports with higher growth rates (2/2)

Key questions:
• Status of FIS competitions today?
• Key levers to make a sport more attractive?

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Six internal challenges that every sport faces

Challenges

Athletes’ salaries 1 2 Changes in technology

Ticket pricing 3 4 Internationalization

Innovation 5 6 Illegal activities

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Content

1. Introduction: external forces and internal challenges

2. Key levers for success

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Scoring in the world of sports along six levers

1. Transforming the sport • Excitement and appeal of competition

2. Circuit structure • Consistent story to follow

(calendar and format) • “Know when and where”

• Star and fan appeal

3. Star/hero development
• Country rivalries

4. Coherent branding • Identification with the brand

• Consistent year-round communication

5. Effective PR & promotion
activation

6. Professional organisation • High quality partner

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1. Transforming the sport – example Biathlon

• Calendar
• Race formats
• TV graphics and production
• Centralised marketing

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1. Transforming the sport – example FIS Optimisation
Project

• Media
– TV Production
– Websites

• Marketing & Communication

– Brand Identity, Sponsorship Concept,
PR & Promotion

• Event Management
– Fan Experience, Hospitality

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2. Circuit structure – example Formula One

• Fix long-term calendar

• Fix dates for “classics”
• Create clearly defined and consistent
sport “product”
• Increase value to Members and other
key stakeholders

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3. Developing stars – example WTA

• To promote its most talented
and popular players in ways that
guarantee them maximum
exposure. If the equity of the
players goes up, this pays
directly back into the sports and
the federation

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4. Coherent branding (clear brand definition) – example ATP

Emotional benefits Intangible attributes

• Makes me feel like a pro • Authenticity

In
s
• Gives me pride and confidence • Integrity

it

ta
ef
• It must be of a high-standard • Passion

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en

i
• An association with the world of • Stature

bl
lb

e
na
professional tennis • Champions

at
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tr i
• Worldwide

ot

bu
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t
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Brand Brand
What does the benefits attributes What is the
brand stand for? brand?

tes
Ra

Rational benefits

u
Tangible attributes
iot

ib
• Entertainment and excitement
n

• Brand logo/mark

r
att
al

• Ensures high quality of • Rankings

be

le
professional tennis products
ne

ib • Tournaments
ng
and services
f
i ts

• Players
Ta

• Access to tennis related • Promotional Programs

information Brand vision/core: • Website
• Access to worldwide tennis best in (men’s) professional • Publications
stars tennis • Partners
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4. Coherent branding (clear brand architecture)

– example FIFA

Event brand Umbrella brand

FIFA World FIFA U 17/19 FIFA Women’s Other

Cup World Cup
Supporting brand

FIFA world ranking FIFA medicine FIFA goal

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5. Improved PR and promotion – example WTA

Consistent year round communications activation

• Maximise PR potential
– Promotion of players’ lifestyles and interests outside of the sport
• Targeted
– Support for equal prize money to demonstrate social concern
– Creation of role models and international stars (UNESCO ambassadors)
• Strategic alliances
– Global / pan-regional media co-operations
– Worldwide partnership with UNESCO
• Centrally controlled
– Outdoor advertising campaign in host cities in support of tour
– Joint promotion activity with local tournaments

• Gives the brand a foundation of awareness throughout the year, regardless

of season or performances of the players
• Allows for broader base of support for fans and more opportunities for
players off the court

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6. Professionalise the organisation – examples

• Creation of vision and mission

• Changes in organisation initiated in 1998 and
completed in 2002 (e.g., introduction of 5 divisions)

• Changes in organisation initiated in 1999, completed

in 2000 (e.g., creation of CEO position)
• Total review of overall governance (e.g., decrease of
number of committees from more than 20 to ~10)

• Streamlined organisation in 2001 into four areas

– Member services
– Finance and administration
– Marketing and event management
– Media and communications

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6. Professionalise the organisation – federation example

2002:
Professional
service provider for
associations
Implementation
of biggest
sports ! Impact-
Development development
of action program ever oriented
Development programme to !Proof of review of
of federation implement lived
1998:
success
Business Plan/ plans organisation
Administrator Department and
of associations Management ! Best cross- performance
Plans divisional culture, etc.
co-operation
Organisational Individual
!
and shared
restructuring goals/
Development performance
strategies,
of "Vision" ! Correct commitments
and "Dual based on
Mission" structure Vision/
! Correct Mission
strategy
Time
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6. Example – vision and mission of a global federation

Universality

Quality

For the game… …for the world

Democracy

Solidarity
Federation family

Trust

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6. Example – mission statement USOC

Critical elements Test Rationale

• Focused on excellence
Inspirational ! and inspiration

“To support U.S.

Olympic and Para-
Brief ! • One sentence long

lympic athletes in
• Prioritises competitions
achieving sustained
and athletes
competitive excellence Clear ! • Balances ends against
and preserve the means

Olympic ideals, and

• Results can be
thereby inspire all Actionable ! measured
Americans”
• Focused on goals,
Consistent ! not enablers

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Scoring in the world of sports along six levers

1. Transforming the sport 4. Coherent branding

2. Circuit structure
5. Effective PR & promotion
(calendar and format)

3. Star/hero development 6. Professional organisation

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Conclusion – our recommendation as partner of the FIS
and the National Ski Associations

Action today Definition of vision for skiing

• National Ski Association • What does “Premium skiing” look like?

programme and activities, • What are our aspirations?
also taking into account • What should skiing be recognised for?
the six levers for success • What are incentives/risks for each member
of the family?

Rolling back the future

Today 2015

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THANK YOU!

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