Goodbye to paper?

Abstract: More sports fans are now using plastic cards, mobile phones, and even watches and key fobs, to access stadia and arenas instead of paper tickets. But does electronic ticketing necessarily signal the beginning of the end of the traditional paper ticket or will the sports industry need to be format-neutral? Andy Stevens reports.

The sports consumer is undoubtedly enjoying the convenience of the increasing numbers of electronic ticketing channels via which they can book and pay for tickets for their favourite events. But now the customer experience has been further enhanced with the fulfilment of tickets being integrated into the e-ticketing value chain. Fans no longer have to wait for tickets to be mailed or queue at the box office to buy or collect tickets, as tickets can now be uploaded to a plastic card, printed on a home printer, or even sent to a mobile phone via an SMS or other messaging service.

As well as having more satisfied customers, sports promoters are benefiting in other ways from the new ticketing formats. Rather than being a simple receipt of purchase, today’s tickets are data carriers that enable sports teams, venues and events to track their customers’ purchasing habits and record valuable marketing information. Venues can be more efficiently managed as the access control data that is processed via a barcode or chip is recorded in real-time and is much more accurate than the traditional ticket stub count.

Electronic ticketing was initially developed with swipe cards that incorporated a magnetic stripe, but this format has now mostly been superseded by barcodes that can be read with a scanner. A more recent development has been the introduction of contactless or proximity cards, which are enabled by near field communication (NFC) or radio frequency identification (RFID) technology. These cards were originally developed for ski passes as they are more convenient than swipe cards, but they also offer much faster processing speeds and have since been adopted by a number of public transport network operators. The technology works by a receiver located at the access control point sending a signal to transponder inserted in the card, which is then returned to the receiver to verify authentication. Thomas Wiedner, vice president of access control specialist Skidata, is confident that contactless ticketing will continue to increase its share of the market: “RFID communication is one of the key future technologies. It will be an upcoming trend – maybe not in 2007 – but it is something which really gives the key information and can be used in the venue, outside the venue, and on public transport.” The transponders do not necessarily have to be inserted into a card, and have already been integrated into key fobs and watches for use as tickets at sports events.

Reference: Stevens, Andy (2006) Goodbye to paper? Sport Business International. December. Issue 119. p50.

Secondary sales, auction and futures

Abstract: Secondary ticketing is now an established part of the North American sports industry, with an annual market that has been valued at in excess of $10 billion. Andy Stevens reports on the launch of Euope’s first comparable service.

This season, FA Premier League teams Chelsea FC and Manchester United FC have launched the first comparable service in Europe, which is intended to open a new market that the services’ provider believes may be worth up to $5 billion a year.

The secondary ticketing service offered by Chelsea FC and Manchester United FC is operated by Viagogo, a company created by StubHub’s co-founder Eric Baker. He explains the rationale behind the clubs’ decision to offer the service to its customer base: “The reason that clubs like Chelsea and Manchester United have embraced secondary ticketing is that there are a number of benefits that accrue directly for the club when they’ve got this kind of system in place. Let’s look at everyone in the equation. First off, for the season ticket holder, you know you’re going to actually get some cash back for your seats, so you’re very happy. For the fan who purchases, they can get access to a ticket they couldn’t otherwise gotten. Sometimes the game will be sold out but they’ll see hundreds of empty seats on television. They would have sat there, and now they can. And from the team’s perspective, first and foremost, an empty seats spends no money on beer, concessions or parking. So there able to get more per cap revenue.”

Reference: Stevens, Andy (2006) Secondary sales, auction and futures. Sport Business International. December. Issue 119. p49.

Stadia and Arenas: Maximising the Value of Venues

Executive summary: Sports venues are the key strategic asset for many professional sports clubs and franchises, rights holders and event promoters. Developing this infrastructure can require considerable funding, with over €1.6bn being invested in the development of stadia and arenas for the 2006 Winter Olympic Games and FIFA World Cup. However, the delays in opening the £757 million Wembley Stadium in London also demonstrate the huge risks associated with such projects.

Nevertheless, the construction of facilities such as Wembley Stadium, Munich’s €280 million Allianz Arena and the $355 million Cardinals Stadium in Arizona - complete with sliding roof and pitch - have heralded a new era in venue design and have raised the expectations of visitors. At the same time, sports brands are experiencing increasingly intense competition from all sectors of the sports and entertainment industry, not just for general admission ticket sales but for hospitality, sponsorship and advertising, naming rights and other core revenue streams that are dependent on the facilities and specification of the host venue.

As a consequence, one of the most significant changes in the business strategy of owners and operators is that they are now developing a new generation of stadia and arenas that focus on enhancing the customer experience and generating higher yields per customer, rather than simply seeking to increase revenue by maximising seating capacity.

Stadia and Arenas: Maximising the Value of Venues is essential reading for venue owners and operators, as well as for rights holders, event promoters and other users of stadia and arenas. It provides insight and strategies for generating incremental revenue and visitor numbers to venues, as well as offering guidance for those considering or planning new build projects or the refurbishment of existing facilities.

Reference: Stevens, Andy (2006) Stadia and Arenas: Maximising the Value of Venues. October. London: SportBusiness Group.

The FA’s Role in Developing Five-a-Side Football: Strategic Alliances with Stakeholders

Abstract: Five-a-side football has become the most popular form of football in England and the sport's national governing body, the Football Association (FA), has recognised that it must develop its role in this market. As part of its Football Development Strategy (2001), the FA has stated that it needs to develop partnerships with relevant public and private sector organisations. Against this background this paper has two aims. Firstly, the authors explore with selected stakeholders their views regarding the FA’s role in developing five-a-side football through strategic alliances. Secondly, by drawing on the literature and their fieldwork, the authors present a framework for examine strategic alliance options that can be applied by national governing bodies of other sports.

The results of the research study suggest that the FA should play a key role in developing the five-a-side football market and, through its network of County FAs, seek strategic alliances with stakeholders from the private, public and voluntary sectors. The framework presented by the authors assists the FA and other national governing bodies in the planning of strategic alliances.

Reference: Stevens, Andy and Watkins-Mathys, Lorraine (2006) The FA’s Role in Developing Five-a-Side Football: Strategic Alliances with Stakeholders. Managing Leisure. Volume 11, Number 3. July. pp186-202.

To be or not to be - temporary or permanent structures?

Abstract: Major sports events are increasingly a sophisticated multi-million dollar bsuienss which is evolving year by year. Andy Stevens, author of the SportBusiness Report Stadia and Arenas: Maximising Value from Venues, examines developments in key areas.

Temporary facilities have become a common sight at professional sports venues, most often in the form of spectator grandstands and hospitality tents. But recently, more creative and innovative applications have been developed, and the traditional image of uncovered stands with exposed wooden bleachers and limited amenities, or of hospitality tents that are unbearable hot and humid in summer but cold and damp in winter, should now be a thing of the past.

The current generation of temporary structures offer high specifications and have evolved into a range of facilities that enable event organisers to create an event village that can encompass ticketing, food and beverage, retail, hospitality, media, back office and even complete arenas.

The Swiss company Nüssli created eleven Südkurve Deutschland temporary fan parks, which accommodated 4,000 fans and hospitality for up to 1,000 covers, during the recent Germany 2006 FIFA World Cup. In Berlin, the focal point of the 40,000 m² Adidas World of Football was the 8,600-seat Adidas Arena, a temporary 1:3 replica of the Olympiastadion. Thomas van Schaik, Head of Global Football PR for Adidas, explains that the concept was designed to open up the World Cup experience to those who were not fortunate to have a match ticket: "If you watch the World Cup Final by yourself then something has gone wrong in your life! Football is an emotion you share." So whereas 432,000 fans watched the six fixtures at the Olympiastadion, the organisers were able to accommodate 500,000 fans to the World of Football by using temporary structures. According to Thomas van Schaik, this enabled Adidas to extend its brand to a wider audience: "We thought that this specific element is typical for football. You want to share the emotions. It's for people that do have a ticket, but also those who have not".

Reference: Stevens, Andy (2006) To be or not to be - temporary or permanent structures? Sport Business International. July/August. Issue 115. pp47-48.

Defending you turf

Abstract: Major sports events are increasingly a sophisticated multi-million dollar bsuienss which is evolving year by year. Andy Stevens, author of the SportBusiness Report Stadia and Arenas: Maximising Value from Venues, examines developments in key areas.

Many of the world's most popular team sports, including soccer, American football and rugby, have traditionally been played on natural turf pitches. But maintaining this type of surface has become more demanding as stadia increase in size and versatility.

Retractable roofs, such as the one being installed at the new Wembley Stadium, are an effective but expensive solution. These allow direct sun onto the pitch and, when the roof is retracted, can provide preferable conditions for spectators and reduce the effect of shadows that affected some of the television pictures from the recent Germany 2006 FIFA World Cup.

The $US355 million Cardinals Stadium, which opens in September 2006, has both a sliding roof and a sliding pitch. The playing surface is positioned on a tray that is itself over two acres in size, but can be slid out of the building in just 45 minutes. This means that the venue floor can be used for other events when the stadium is not hosting the home games of the NFL Arizona Cardinals.

A number of groundsmen have begun experimenting with mobile lighting units that provide light at pitch level. The technology has been in development since 1999 and is still being tested. The wheeled units are remote-controlled and so far the results at venues including the City of Manchester Stadium, the Stade Louis II, Monaco and Highbury have been favourable.

Air circulation is also essential for maintaining a healthy pitch and is key consideration as more bowl-shaped venues are built in preference to stadia with open corners or ends. Ground level tunnels can be beneficial and the new Wembley Stadium has ventilation shafts at the rear of the lower tier. These incorporate louvers that can be opened and closed to regulate air flow.

The playing surface at Arsenal FC's 38,000-seat Highbury stadium was highly regarded by players and opponents alike, and has benefited from low stands with gaps in all four corners of the venue. However, the club's new 67,000-seat Emirates Stadium, which opens in August 2006, is much larger and uses a bowl configuration. The club therefore decided to install a hybrid surface that combines the benefits of artificial turf pitches (ATPs) to reinforce natural grass. Hybrid pitches consist of some 20 million artificial fibres that knitted 200 mm into the base of the pitch. The exposed fibres are 25 mm proud of the surface so that the natural grass blades intertwine to provide extra stability, with manufacturers claiming that hybrid models can sustain up to four times more wear and tear than grass.

Reference: Stevens, Andy (2006) Defending you turf. Sport Business International. July/August. Issue 115. pp45-47.

Just the ticket - an electronic revolution

Abstract: Major sports events are increasingly a sophisticated multi-million dollar bsuienss which is evolving year by year. Andy Stevens, author of the SportBusiness Report Stadia and Arenas: Maximising Value from Venues, examines developments in key areas.

Matchday revenues represent a declining share of revenue for many professional sports teams revenues, mostly due to the evolving media rights and sponsorship markets. For example, the Italian Serie A football club Juventus generates just 10% of its €229.4m income from matchday activities. Nevertheless, income generated on event day continues to be one of the key revenue streams and, as was seen during the recent Germany 2006 FIFA World Cup, ticketing continues to be an emotive issue that affects spectators, event organisers, the media and sponsors.

Reference: Stevens, Andy (2006) Just the ticket - an electronic revolution. Sport Business International. July/August. Issue 115. pp44-45.

Making the most of your home

Abstract: Andy Stevens examines the latest attempts to improve the fan experience and maximise revenue from imaginative stadia design and customer relatiionship management.

The perception that sports stadia and arenas are still only utilised on match days is becoming outdated as an increasing number of venue owners and operator develop new facilities and offer additional services. Nevertheless, there is still scope to extract more value from these assets by generating incremental revenue and by improving cost efficiency. Maximising the value of venues was extensively debated at the recent SportBusiness Campus, with discussions centring on topics such as how value can be created by adopting best practice in venue design and customer experience management.

Reference: Stevens, Andy (2006) Making the most of your home. Sport Business International. May. Issue 113. pp48-49.

SportBusiness Campus06

Moderator at the SportBusiness Campus06 conference at Cass Business School, City University, London.

Facilitated the Maximising Event Day Revenue module on Wednesday 29 March 2006 with speakers and panel members including:

• David Batts, Deputy Chief Executive Officer, Marylebone Cricket Club
• Olaf Bauer, Senior Director, Sportfive
• Dr Chris Bruton, Chief Executive Officer, Hospitality in Partnership
• Gerrard McKenna, Chief Executive Officer, Match Day Media
• Craig Thompson, Chief Executive Officer, Mindspring

Facilitated the Stadia and Arenas: Maximising the Value of New Build and Existing Facilities module on Thursday 30 March 2006 with speakers and panel members including:

• Geoff Aucock, Partner, Drivers Jonas
• Jonathan Gregory, Commercial and Marketing Director, Wembley Stadium
• Craig McLellan, Director, Franklin Sports Business
• J Parrish, Architectural Director, Arup Sport
• Nicholas Reynolds, Associate Principal, HOK
• Mark Roberts, Senior Consultant, Deloitte

Standing out for the crowd

Abstract: Andy Stevens looks at how the latest developments in ticketing help maximise revenue inside stadia and beyond.

Ticket sales still represent a key indicator of a club's popularity despite the fact that they represent a declining share of total revenue for many clubs in the top European football leagues and major league sports in North America. Sponsors and TV companies buy into teams and sports that can sell-out stadia and arenas, whilst secondary event day income from merchandise and food and beverage relies on a ticket being sold to the fan inside the venue. However, whilst the value of media rights and sponsorship packages appear to have peaked, many teams are suffering from a decline in live audiences.

The market for ticket sales will benefit from the scheduling of two global events in 2006, with the Torino 2006 Organising Committee expecting one million spectators to be watching 63 different competitions during the Olympic Winter Games in February and FIFA managing the distribution of seven million tickets for the 64 matches of the 2006 World Cup in Germany. Both organisations are relying on electronic ticketing systems to automate the process of distributing massive volumes of tickets - of different types and for multiple events - to customers who use different languages and currency.

Reference: Stevens, Andy (2006) Standing out for the crowd. Sport Business International. February. Issue 110. pp38-39.

Welcome to the Andy Stevens Blog

This blog is an archive of the reports and articles I researched and wrote for Sport Business between 2006 and 2010. Some of of the reports and most of the issues of Sport Business International (now Sport Business Review) magazine are available in the British Library.