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FUTURE WAT Venture

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  1. FUTURE WAT PROJECT Presented to the Euromeetings Organisors Amsterdam, 17th October 2008 by IAAF & Mindspring AG

  2. BACKGROUND 2

  3. OUR BRIEF Presidential mandate to review and improve WAT in line with the his Manifesto Embrace the global potential of athletics Create opportunity for more Athletes to participate professionally in athletics Appeal to the youth Deliver an economically sustainable project Investor guarantee All stakeholders to benefit 3

  4. OUR CREDENTIALS Senior leadership positions at both TEAM Marketing and Octagon Worldwide Prior Involvement with athletics IAAF World Championships Mobil Grand Prix IAAF World Cup Athletics South Africa Specific experience with investors in the creation of - UEFA Champions League, IIHF Champions Hockey League 4

  5. WINNING CONCEPTS Strong involvement by Federation Win-win for all stakeholders Strong free to air broadcaster platform Centralised marketing programme for worldwide sponsors Strong brand identity and branding execution 5

  6. WAT PROJECT 6

  7. PROJECT WAT STATUS • Step 1 - Identified objectives: • Step 2 - Developed new concept • Step 3 - Conducted feasibility study • Step 4 - In depth review of concept and feasibility study led by IAAF President • Step 5 - Recommendation to IAAF Council

  8. 12 Month process to date Stakeholders Meet organizers Agents/Athletes IAAF and Council Ambassadors Sponsors Carlsberg MasterCard Nestlé Nike Shell President, International Sponsors Council Broadcasters European Broadcasters Union BBC (UK) BSkyB (UK) Setanta (UK & North America) ZDF (Germany) DSF (Germany) Sky Italia France Television Canal+ France TVE (Spain) Sogecable (Spain) Eurosport (pan-European) NBC Universal (USA) Fox (USA) TBS (Japan) Al Jazeera (Middle East) GTV (Africa) FEASIBILITY STUDY

  9. CURRENT SITUATION Strong consensus across the board that there is a need for change 9

  10. WAT GoldenLeague CURRENT SITUATION • Olympics and World Championships are premier events 3 PILLARS OF ATHLETICS Olympics WorldChamps WAT 1,151,821,000 98,787,860

  11. KEY PRINCIPLES 11

  12. KEY PRINCIPLES • Do what is in the best interests of Athletics • Reinforce IAAF leadership • Elevate the status of the Golden League and athletics as a whole • Extend reach beyond Europe • Guarantee top athletes and enhance the earnings capability of more athletes • Create more meaningful events - shift focus away from individual performances to great competition • Bring new investment into the sport • Create a strong global brand • All stakeholders to benefit

  13. WAT STRATEGY 13

  14. REVISED WAT STRATEGY Sales Revenue Top Athletes Build Brand Improve WAT Format Investor Funded

  15. STRATEGY Sales Revenue Top Athletes Build Brand Improve WAT Format Investor Funded

  16. FORMAT Key Changes: • Simplified format • Two-tier approach

  17. GOLDEN LEAGUE SEASON SCHEDULE Rationale for 12 events • Maintain strength of European events • Target key global markets

  18. GOLDEN LEAGUE FORMAT • Two-hour programming block • Consistent Golden League disciplines • 10 standard for entire series • 4 events of local interest • Simple, meaningful points system based on order of finish

  19. CHALLENGE LEAGUE OVERVIEW 12 meetings out of tender process Europe and outside Europe Open to all disciplines IAAF solidarity fund: considerably higher than current IAAF grant Consistent branding No grant of marketing rights to the IAAF Can be scheduled any day except on or around Golden League days

  20. STRATEGY Sales Revenue Top Athletes Build Brand Improve WAT Format Investor Funded

  21. KEY CHANGES • IAAF guarantees top athlete participation and finances incentive plan • IAAF central athlete contracts • Guaranteed contract for 20 to 30 top athletes • 6-9 appearances per season • Standings Bonus for each discipline to replace current Jackpot • Benefits many athletes as opposed to just 1 or 2 • Considerably more money for more athletes

  22. NEW PARTNERSHIP IAAF • Central $Contribution • Central Promotion • Athletes • IAAF Contracts • Ranking Bonus • Participate in 6-9 events • Sponsor appearances • Deliver commercial rights • Prize Money • Appearance Fees Meet Organisers Athletes • Appearances

  23. STRATEGY Sales Revenue Top Athletes Build Brand Improve WAT Format Investor Funded

  24. BRAND • Make Golden League instantly recognisable • Consistent implementation across all events • Much stronger vs. individual event brands • Reviewed best practices from other sports and propose the best solution for Athletics

  25. STRATEGY Sales Revenue Top Athletes Build Brand Improve WAT Format Investor Funded

  26. MARKETING • Current decentralised marketing approach leaves money on the table • Need to access all available budgets • Global / Regional • National • Local • Need to keep benefits of current sponsors • Ticket promotions • Hospitality • Combined centralised / local sales allows access to all levels

  27. SPONSORSHIP CONCEPT 4 Golden League Partners (4 x $5m) Series Partners Individual Event Partners 1 National Event Sponsor ($0.5-1m each) 1 Host City Partner National Sponsors National Suppliers

  28. BROADCAST SALES • Centralised sales of all broadcast rights • Splitting TV rights leads to weaker product/loss of leverage • Obligation to be host broadcaster • Priority to free-to-air coverage • …in order to create broadest coverage to build sport • …and therefore build value of sponsorship • Target gradual increase….starting with 2 or 3 meets on terrestrial in key markets • Additional coverage on thematic sports channels • Broad programming • Live • Delayed • Highlights • Magazine (centrally produced) • Broad distribution • TV • Internet • Wireless

  29. Feedback from EBU Key Partner of IAAF EBU strongly wants to keep its commitment to athletics Conducted complete review of proposed project EBU says this is going in the right direction and they want to partner the IAAF in this development FEASIBILITY STUDY

  30. STRATEGY Sales Revenue Top Athletes Build Brand Improve WAT Format Investor Funded

  31. INVESTOR FUNDING • This project will be funded by investors on a long term basis • Allows for massive new financing of the sport • Strong interest is being shown by potential investors

  32. SUMMARY 32

  33. SUMMARY • Revitalise athletics • Strongly addresses key issues • Confusing format • Meaningful competition • Athlete participation • Commercial appeal • Financial viability • Feasibility study indicates concept is feasible • Investor interest in the concept is strong

  34. NEXT STEPS 34

  35. TIMING 2007 2008 2009 2010 Implementation of Commercial & Event Plan New IGL Season Product Development 9/07 1/08 1/09 1/10 Design - A Event Plan Implementation Broadcaster Search Feasibility Study - B Sponsor Search Bidding Process - C IAAF President Briefing Pre-Season Build-up Pre-testing with Champions IAAF Approval Investor Closing - D Signature of Agreements

  36. NEXT STEPS Have now received IAAF Council “In Principle” approval to proceed Investor search now underway with a view to securing interested parties by next IAAF Council Meeting in November

  37. THANK YOU 37