Gary Rathbone Sports Pro Presentation

Sports Media as a Contributing Business Sector of the Sports Industry: Opportunities for Stakeholders to Maximise This.

Sports Media as a Contributing Business Sector of the Sports Industry: Opportunities for Stakeholders to Maximise This.

Gary RathboneSports Pro Presentation, Pan Atlantic University, Lagos, Nigeria29 September 2015

Introduction

Myself

Nearly 20 years in African sports media - working and living in South Africa, Nigeria and Kenya.

As an independent producer, created and produced the first pan African football show African Soccer TV.

Working with CAF and creating and managing the CAF African Player of the Year Awards for 5 years.

Head of Africa for Supersport, Head of Sports for Zuku (East Africa) , Director of Sports for StarTimes and Senior Consultant on Sport in Africa for the Discovery Channel.

Founder of Sports News Africa.

My Presentation

Looking at how stakeholders in sports in Africa and here in Nigeria can raise the profile of the sports they represent through the media.

How to take advantage of the changing media landscape and the new opportunities this offers.

My Vision

To drive the development of sport in Africa and make it as successful as European sport has become globally and here on our own continent.

To achieve that by pushing sport as a major opportunity for African business.

To raise the profile of African sport amongst sports fans here in Africa.

Copyright Gary Rathbone 2015

The Big Question:

Do you want to make money form sport or do you want to make LOTS of money from sport?


What Is The Sports Media Environment?

Event/Tournament Rights

The buying and selling of Media and Sponsorship opportunities to events and tournaments that stakeholders own.

Event/Tournament Production

The audio-visual coverage of these events and tournaments live production, highlights, radio coverage etc.

PR & Press Coverage/Engagement

Marketing of these events and tournaments through the print media, radio and TV etc. and engagement with reporters to raise the profile of an event or sport.

Digital/Mobile Media

Utilizing the fastest growing media sector to increase the profile of a sport or event and create significant new revenue streams

Sports Betting

A massive new opportunity create new revenue streams.


Global Sports Media Value


Sports Betting Where Everyone Can Be A Player!

The Sports Gaming industry around the world consists of betting, online casinos, bingo and lotteries.

Estimated gross win revenue after pay-out for the industry around the world:
Eu 32.5 billion per year.

Betting alone makes up just half of this total.

Of the overall total, Africa accounts for just Eu 215 million of that amount.


Global Sports in Africa

Barclays Premier League

Approximately US$ 200 million per season paid between Supersport and Canal +

Champions League/Europa League

Approximately $140 million per season paid between Supersport and Canal +

La Liga (Spain)

Approximately Eu 50 million per season paid between Supersport, Canal+, Azam and Zap

Bundesliga

Approximately $9 million per season paid by StarTimes plus FTA rights sold by TV Media Sport

Serie A

Approximately $6 million per season paid by StarTimes plus FTA rights sold by TV Media Sport

Ligue 1

Approximately Eu 12 million per season across Canal Plus and Fox Sports Africa.


Total Spend on International football in Africa:=/- $423 million per year

African Sports Media Market

COUNTRY

ANNUAL SPORTS SPONSORSHIP EXPENDITURE

SHARE OF AFRICAN SPORTS MARKET

South AfricaUS $137,646,873

64.67%

EgyptUS $23,304,166

10.95%

Ghana US $17,068,334

8.02%

Nigeria US $13,417,500

6.30%

Kenya US $5,551,831

2.61%

Algeria US $4,955,000

2.33%

Uganda US $2,035,100

0.96%

Zimbabwe US $1,375,250

0.65%

TunisiaUS $1,217,500

0.57%

Botswana US $1,092,034

0.51%

Cameroon US $833,333

0.39%

Tanzania US $640,000

0.30%

Zambia US $275,667

0.13%

Source: AfricaInvestor, June 2102


African Local Sports Media Value

Source: Balancing Act, 2014


Nigerian Sports Media Environment: Opportunities

More people with a greater level of disposable income to spend on entertainment.

Nigerians remain excited about sport at all levels local and international.

Rapidly expanding internet, mobile and digital environment creating more opportunities for raising the profile of an event and providing new revenue streams.

Better infrastructure and modern technology makes events/tournaments more attractive to the consumer and a lower cost.


Nigerian Sports Media Environment

2011 Renaissance Capital Survey of the Nigerian Middle Class found:

64% of respondents watch live sports or sports programmes on TV

17% of these do so nearly every day.

33% do so at least once a week.

Only 6 % never watch any sport on TV at all.


The Emerging African Media Environment


Nigerian Media Value

TV advertising market in Nigeria (US dollar millions)

20102011201220132014p20152016201720182019

Multichannel9111215182226293337

Terrestrial226263271287313328344365397421

Total235274284301331350370394430458

Source: PWC, 2015


Nigerian Media Value

Internet access market in Nigeria (US dollar millions)

20102011201220132014p20152016201720182019

Mobile Internet3965177091,0531,3491,7432,1392,6233,1533,777

Broadband147 237 366 532 749 990 1,217 1,415 1,5761,704

Total5437551,0751,5852,0972,7323,3564,0384,7305,481

Internet advertising market in Nigeria (US dollar millions)

20102011201220132014p20152016201720182019

Mobile Internet4 7 4 10 18 29 46 70 90

Broadband8 11 15 20 26 30 34 39 44 50

Total12 19 16 24 36 48 63 85 114 140

less than $500,000

Note: Numbers shown are rounded. Totals may not equal the sum of their parts due to rounding.

Source: PWC, 2015


Nigerian Sports Media Environment

Key Areas to consider for Media Opportunities:

Production and broadcast of live tournaments/events for TV and Digital.

Sponsorship of the event, at the venue.

Digital subscriptions and advertising for online streaming and websites.

Sports betting.


Nigerian Sports Media Environment: Challenges

Very fractured and lacking a coherent policy.

No coherent sales or marketing approach.

Under-resourced and lacking decent, modern and cost-efficient production facilities to create event/tournament content.

Bad organisation and poor infrastructure means tournaments/events are not fully supported by advertisers and sponsors.

Stakeholders are not working together.

Stakeholders are not grasping the massive business opportunity that sport offers.


INCREASING NEED FOR MEDIA TO HAVE MORE SPORTS CONTENTMORE MONEY AVAILABLE FOR MEDIA SPONSORSHIP OF LOCAL SPORTMORE RESOURCES AVAILABLE TO DEVELOP COVERAGE OF LOCAL SPORTMORE COVERAGE OF LOCAL SPORT MEANS A RISE IN LOCAL CONSUMER AWARENESSINCREASE IN FANS, VIEWERS AMONG LOCAL CONSUMERS.INCREASING NEED FOR BUSINESS TO REACH GROWING CONSUMER MARKETMaking Sport, Media & Business Work Together


Nigeria, Sport & Media: The Way Forward

Cost of local sport is consider cheap or fair by 85% of African broadcasters.

Media spend in Nigeria will rise to around $394 million by 2017

Media spend in digital platforms (online and mobile) will rise to $85 million by 2017.

There will be over 35 million TV households in Nigeria by 2017 and nearly 60 million internet users.

The Sports Betting industry in Africa is already worth Eu 215 million a year.

Connect the dots there is an appreciation of local sports, a growing media spend and a rapidly growing TV and digital consumer market waiting for your sport.


Nigeria, Sport & Media: The Way Forward

The changing media landscape and the emergence of the digital world offers us a great opportunity for new audiences and revenue streams

Stakeholders need to re-align their sports as businesses.

Sport is great business opportunity media is the key that will open that door and we need to use it more effectively.

It is time for all stakeholders to start working together to make sport more attractive to business.

Government needs to support sport not just on the pitch but in the boardroom as well. Because sport is about a lot more than just the people who play the game.


The Big Answer:

Make your sport a BETTER business!


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Documents

Gary Rathbone Sports Pro Presentation