Shout: Is Hooliganism making a comeback

Abstract: During 2007, the sports industry witnessed a number of incidents that have severely compromised the security and safety of spectators attending events. While much emphasis has been placed on the omnipresent threat of terrorism, stadium security expert Andy Stevens sees a worrying trend of escalating hooliganism and an overly relaxed approach to the management of stadia and arenas.

Reference: Stevens, Andy (2007) Shout: Is Hooliganism making a comeback. BritSportWeekly. London: SportBusiness Group.

Top Ten Venues

SportBusiness correspondent Andy Stevens has identified the leading stadia arenas completed or commenced worldwide in the last 12 months. Here is his breakdown of the stadia that are pushing back the barriers of facility design and functionality.

• Beijing Shooting Range Hall, Beijing, China
• BMO Field, Toronto, Ontario, Canada
• Bright House Networks Stadium, Orlando, Florida, USA
• Dnipro Stadium, Dnipropetrovs'k, Ukraine
• Estádio Olímpico João Havelange, Rio de Janeiro, Brazil
• Jaber Al-Ahmad International Stadium, Kuwait City, Kuwait
• Letzigrund Stadion, Zürich, Switzerland
• Prudential Center, Newark, New Jersey, USA
• Wembley Stadium, London, UK
• Wörtherseestadion, Klagenfurt, Austria

Stevens, Andy (2007) The SportBusiness Top 10: Stadia and Facilities. Sport Business International. Issue 130, December, pp 30-32. London: SportBusiness Group.

Who governs five-a-side football?

Abstract: In England, four million people regularly play five-a-side football, which is more than the three million who participate in the eleven-a-side game. The sport’s popularity has been monetised with commercial five-a-side football operators generating profits of up to £6 million from a turnover of £16 million, making them more profitable than many professional football clubs. However, there is no coherent market and standards of Laws, discipline and affiliation are inconsistent. Some providers have even created their own autonomous football federation rather than affiliate with the FA.

This version of five-a-side football is unique to the United Kingdom. Futsal is the most popular form of small-side football and is now played in 170 nations by an estimated 30 million players around the world. The sport has traditionally been promoted and administered by autonomous organisation, with some groups affiliating to the Asociación Mundial de Fútbol de Salón (AMF) and the European Union of Futsal (UEFS). Despite having originated in the 1930s, FIFA did not recognise the sport until 1988, with UEFA launching its first futsal competition a year later. The sport is therefore fragmented, and the Laws of the game can be inconsistent between countries and competitions.

The FA has sought to develop its role in both five-a-side football and futsal. It has had to promote futsal – a sport that is played by only a few hundred teams – while ensuring that it does not marginalise the more popular (and more lucrative) traditional five-a-side game. Its role is compounded by the belief of some of the FA’s stakeholders that the growth of small-sided football has been to the detriment of the eleven-a-side game, which has suffered from declining participation. The performance of the England futsal team, which has yet to win a match after 36 matches, has not helped to enhance the profile of the sport.

Using the role of the FA in England as a case study, this paper will examine the governance of five-a-side football and futsal and will address the following topics:

• The differences in how five-a-side football and futsal are governed from the management of eleven-a-side football.
• The governance models for futsal that have been utilised by football associations and futsal federations worldwide.
• The strategies that national governing bodies can adopt to engage with providers of unaffiliated football.

Reference: Stevens, Andy (2007) Who governs five-a-side football? Reykjavik, Iceland: Play The Game 2007. 29 October.

Sport Security and Safety: Evolving Strategies for a Changing World

Executive summary: As the sports industry continues to evolve, the issue of security and safety is becoming an increasingly complex and sensitive area for venue and event managers.

Major sports events now represent high-profile targets, under threat from activist groups anxious to use the global audiences of sport for their own political or criminal agenda.While the attack by terrorists on the Israeli team at the Munich 1974 Olympic Games may provide the most graphic example of the collision between sport and political extremism, every event is and will remain an attractive opportunity to terrorists.

The primary responsibility of the organisers of any event must be the safety of spectators, competitors, officials, media, volunteers and all the other groups and individuals who hold a stake in its delivery. As a result, billions of dollars are spent each year to ensure that sports events are protected by sophisticated security programmes, which draw on leading-edge thinking and the application of innovative technologies to combat threats, from wherever or whomever they originate.

The history of sports event management is punctuated by incidents where the failure to provide a secure and safe environment has resulted in the loss of life and limb.Many will be aware of the disasters that have occurred at Munich, Heysel, Hillsborough, Atlanta and Ellis Park, and what these incidents represent in terms of their consequences to security and safety management.

But what of the other events that might have happened had it not been for rigorous intelligence, security and safety mechanisms? We know, for example, that captured terrorists linked to the Madrid train bombings in March 2004 were also planning an attack on the city’s Bernabeu stadium.Other life-threatening actions by individuals and organisations have also been thwarted or deterred by the heightened security and risk management measures implemented at major events post 9/11.

Today, sports event security is a highly specialised discipline, which relies on the expertise of professionals drawn from the armed forces and police and intelligence services as well as event and facility operations professionals.In terms of sports management, security and safety are inter-related responsibilities for those executives charged with the demanding task of delivering a trouble-free event. Security management also encompasses the protection of stadia, arenas and other critical assets from organisations and individuals wishing to cause collateral damage or disruption to an event.

This report highlights the areas where sports organisations and their security partners can assess and manage security and safety threats. It recognises the difficulties facing managers as they strive to achieve the right balance between sustaining high levels of security, while still preserving the traditionally exuberant atmosphere of a sports event.

This is a key challenge for the future, but one that can be surmounted as sports participants increasingly understand and welcome the need for security at major events, preferring the ‘known inconvenience’ of security measures to a ‘fear of the unknown’ threat.

Reference: Stevens, Andy (2007) Security and Safety: Evolving Strategies for a Changing World. August. London: SportBusiness Group.

Turf to victory

Abstract: An increasing number of sports venue and facility operators are appraising the strategic decision to install an artificial turf playing surface. Andy Stevens reports.

An increasing number of sports venue and facility operators are appraising the strategic decision install an artificial turf playing surface. These pitches have many commercial benefits compared to natural turf, but there are still concerns about the quality and costs of such installations. Evaluating the options for sports fields is becoming more complex the market continues to grow, and the number of suppliers and range of products increases. In response, sports federations and governing bodies have therefore developed quality standards to assist buyers with decision-making.

Reference: Stevens, Andy (2007) Turf to victory. Sport Business International. July. Issue 125. pp48-49.

Securing the future

Abstract: Andy Stevens, author of a new report published this month by SportBusiness Group, Security and Safety: Evolving Strategies for a Changing World, reveals that venue operators and event organisers do not appear to be learning the lessons from previous disasters that have undermined the sports industry.

A series of incidents at sports events around the world have once again raised concerns about the security and safety of stadia and arenas. Already in the first half of 2007, there have been a number incidents that have resulted in fatalities and casualties, or at which the security and safety programmes have been compromised.

Reference: Stevens, Andy (2007) Securing the future. Sport Business International. July. Issue 125. pp46-47.

Sport Business In Numbers

SportBusiness in Numbers contains over 100 tables allowing you to digest information at a glance. It analyses the key numbers behind the sports industry and is an essential ready reckoner for serious players in the business of sport.

This new business tool draws on the research data from leading providers BMRB/TGI, Comperio Research, Forbes Magazine, Initiative Sports Futures, Redmandarin, S-Comm Australia, Sport + Markt, Sports Marketing Surveys, Team Marketing and TV Sports Markets.

Regular SportBusiness contributors and report authors, Andy Fry and Andy Stevens, and international TV rights expert, James Pickles, Editor of TV Sports Markets, provide both data and insight on the main business areas of sport – Sponsorship/Sports marketing, broadcast/TV rights and events/leagues

Reference: SportBusiness Group (2007) SportBusiness in Numbers. May. London: SportBusiness Group.

SportBusiness Campus07

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

Facilitated the Ticketing and Customer Relationship Management module on Wednesday 18 April 2007 with speakers and panel members including:

• Eric Baker, Chief Executive, Viagogo
• Jonathan Gregory, Commercial and Marketing Director, Wembley Stadium
• Dan Jones, Partner, Sports Business Group, Deloitte
• Steve Sayer, Head of Sponsorship & Partnership, Manchester City Football Club

Facilitated the Naming Rights and Venue Sponsorship module on Thurssday 19 April 2007 with speakers and panel members including:

• Joachim Hilke, Vice President, Sportfive
• Amanda Jennings, Head of Sponsorship, O₂
• Tracey Keenan, European Sales Director, Wasserman Media Group
• Gareth Moore, UK Director, Sport und Markt
• Frank Saez, Vice President, Comperio Research
• Paul Samuels, Chief Executive, Bonham Group Europe
• Lesley Saville, Chief Marketing Officer, AEG Europe

Maximising Value from Ticketing and CRM

Executive summary: The volume and value of tickets sold are one of the key performance indicators for professional sports venues, teams and events, both in terms of the popularity of these brands and the profitability of the industry. These organisations depend on spectators to generate ticketing revenue and incremental event day sales from food and beverage, merchandise, retail, parking and other services provided at the stadium or arena. This revenue cannot be captured unless fans have first purchased a ticket for the event.

Ticketing is a vital income stream for many professional sports teams. For example, tickets and other event day income representing over two-fifths of total turnover for some of the largest football clubs in Europe. Manchester United receive 42% of their income on matchdays while, in comparison, the three biggest clubs in Italy generate less 20% from these sources. This can be attributed to the size and quality of facilities at the respective venues, and the local market prices for match tickets. In North America, Major League Baseball teams record up to two thirds of their income from ticketing but again there are sizeable variances in the data. The Boston Red Sox – who are one of the sport’s most popular franchises – record 66% of total income from gate receipts, while less popular teams, such as the Tampa Bay Devil Rays with a comparable figure of 13.8%, rely more of media rights and sponsorship.

Income from ticket sales are important for the hosts of mega events as well as sports clubs and franchises. Many international sports federations and professional sport leagues retain control of media rights, key sponsorship properties and sometimes merchandise and licensing agreements. Therefore, ticketing represents one of the most important revenue streams that local organising committees and member teams can exploit.

The value of the global ticketing market can be further boosted by mega events such as the FIFA World Cup and Olympic Games. For example, the Germany 2006 FIFA World Cup organising committee achieved ticket sales of €220 million from the 64 matches staged during the tournament. A total of 3.4 million tickets were distributed for the tournament, plus another 0.9 million tickets for the Torino 2006 Winter Olympic Games that was also staged in Europe just a few months earlier. There is always strong huge demand for tickets for these events and organisers of other major events staged during the same period must consider the impact on sales from domestic and foreign visitors.

However, sports organisation are experiencing declining live audiences, or are becoming more concerned about the acquisition and retention of customers as there is more competition for consumers’ discretionary spending from other entertainment and leisure providers. Fans are expressing antipathy about perceived value for money of tickets, and are able to enjoy an ever-increasing choice of televised live sport and other leisure activities. Proactive ticketing and marketing managers are initiating audience development strategies and have adopted best practice from other industries. One such example is the use of customer relationship management (CRM) applications to establish customer loyalty and maximise value from these relationships. This enables sports brands to identify key customers and market trends, and to utilise effective communication channels to develop valuable and long-term relationships with fans.

Sports teams and venues are becoming more sophist acted in developing new products. Stadia and arenas are being developed to accommodate hospitality seating products such as club seats and party suites. These are being targeted at new markets, with high net worth individuals becoming as important as traditional corporate clients.

Pricing strategies are also being evolved to focus more on the needs of the customers. The basic option of a season ticket or a single game or match ticket has been replaced by a menu of choices and pricing plan. These are designed to appeal to the consumer but also to maximise ticketing revenue and venue utilisation.

Reference: Stevens, Andy (2007) Maximising Value from Ticketing and CRM. March. London: SportBusiness Group.

Economy of Scale

Abstract: Every month, over 30,000 football enthusiasts descend on Derby’s Pride Park. But these aren’t fans going to watch a Derby County match at the football stadium, they’re five-a-side footballers who are playing at the adjacent JJB Soccer Dome. The facility, which house eight indoor and three outdoor pitches, is just one of many five-a-side venues that has opened during the past twenty years as the popularity of the sport increases.

Oliver Selfe is General Manager of the Soccer Dome and he believes that changing lifestyles are the reason why many players prefer the small sided format to the traditional eleven-a-side game: “Five a-side football is rapidly becoming the most popular sporting activity in the country because it’s fast, quick and doesn’t take up your whole day. There is no aggravation to it and anybody can organise a five a-side team.”

The FA’s own research into the sport backs up this theory, with most players who play either format of football claiming that five-a-side is more suited to today’s lifestyles. Furthermore, some 70 per cent of footballers believe that it’s more difficult to get an eleven-a-side team together, a factor that Oliver Selfe believes five-a-side operators have capitalised on: “It’s easier to register and less hassle. Everything is done for you all you have to do it simply turn up, thrown your money on the table, and play.”

Stevens, Andy (2007) Economy of Scale. When Saturday Comes. Issue 239. January. London: When Saturday Comes.