THE FUTURE OF SPORTS TEAM 4 Ahn Biesiedin

THE FUTURE OF SPORTS TEAM 4: Ahn Biesiedin Habinshuti Jainal Nishanth

AGENDA MARKET CURRENT TRENDS IMPROVEMENT AREAS FUTURE OF SPORTS

SPORTS GLOBAL MARKET valued more than 600 Billion USD in a report by KPMG (2016) 80 B USD Sports Events 310 B USD Sports Apparel, Equipment and footwear 105 B USD Sports Clubs 100 B USD Infrastructure Construction, food and beverage and betting stable market growth as per Pw. C’s Sports Survey 2018 7. 7% average past growth 7. 0% average future growth in the next 3 -5 years Expected Growth Rate 11% Digital media rights 5. 5% Sponsorship & Advertising 4. 8% Licensing & Merchandising 4. 4% Participation fees 3. 8% Ticketing & corporate hospitality 3. 2% Traditional TV rights Top Sports Football Basketball Mass participation sports Boxing/Martial Arts Rugby American football Cycling Tennis Cricket

SPORTS MARKET INFLUENCES

SPORTS MARKET INFLUENCES Political, Legal - federal investigations are continuously changing Professional Sports i. e. federal fraud and corruption charges affecting recruiting in NCAA - International Broadcast rights agreement 2019/2020 influencing membership and clubs’ financial performance Economic, Environmental An official analysis of sport funding in the Czech Republic was carried out by the Ministry of Education, Youth and Sports in 2009. The findings show the structure of financial arrangements in sport as follows: ¡ 50% households (volunteers and their families) ¡ 25% regions and municipalities ¡ 12% State and lotteries (respectively 7% and 5%) ¡ 13% private sector ¡ 0% EU

SPORTS MARKET INFLUENCES Social and Cultural Factors Affecting Participation • Sponsorship • Media • Social and Cultural aspects • Influences of local and national providers

SPORTS MARKET INFLUENCES Technological innovation has practically changed sport itself: • • Wearables are monitoring, managing and improving performance Sports genetics: exploring how genes influence athletic performance Data analytics maximises marginal gains, adding up to significant improvements Virtual reality enables athletes to practice in ‘real’ conditions

SPORTS MARKET INFLUENCES Technological innovation has practically changed sport itself: ¡ Wearables are monitoring, managing and improving performance ¡ Sports genetics: exploring how genes influence athletic performance ¡ Data analytics maximises marginal gains, adding up to significant improvements ¡ Virtual reality enables athletes to practice in ‘real’ conditions

CURRENT TRENDS Data & Analytics Making smarter decisions Answering tougher questions Generating new ideas Internet of Things Player Development – analytics w/ sensors and game video – for training, team management, in-game strategy Player Safety – embedded devices (i. e. smart insoles, built-in chips) – for longevity and health Fan Engagement – smart stadiums – for an in-arena experience e. Sports ¡ Greatest potential with its revenue forecasted to double by 2020 ¡ gaining momentum with franchise leagues, TV broadcasting and media rights Focus Areas: Fan Safety Innovative ticket packages Shift of Advertising Blockchain Capabilities Changes in Professional Sports Social Activism

CURRENT TRENDS Sports & Fitness Sports often played include football, cricket, and running while majority practice fitness activities in their weekly routines Key Factors that alleviate the experience - Playing with friends - Being able to free the mind - Seeing progress Top reasons for sport/fitness engagement - Passion - Health - Aesthetics/Body-building Technologies used Tracking/Monitoring apps (i. e. heart rate, calories) and devices (i. e. smart watch/band)

IMPROVEMENT AREAS Independent Solutions “Siloed” fan experience Shift in Consumer Behavior Alternative entertainment formats Decrease in willingness to pay, Piracy/illegal streaming Integrated Solutions Fan Engagement Internet of Things in Sports Social and Digital Advertising Lack and inaccuracy of monitoring and tracking of activity and statistics (i. e. postures) Improved sport bands with better accuracy and catering to a wider range of activities Projection capabilities

FUTURE OF SPORTS Digitalization People Business Process New Technology Small-scale initiatives, Iterative Process Involvement of Tech Firms (as consumption channels) DIGITAL Smart Technologies TRANSORMATION Artificial Intelligence Wearable technologies AR/VR Digital Fan Experience e. Sports Personalized, immersive and cheap through real-time statistics, social media integration, and mobile apps

References KPMG (2016). The Business of Sports. Retrieved from KPMG website: https: //assets. kpmg. com/content/ dam/kpmg/in/pdf/2016/10/The-business-sports. pdf last December 13, 2018 ATKearney (2014). Winning in the Business of Sports. Retrieved from ATKearney website: https: //www. atkearney. com/documents/10192/5258876/Winning+in+the+Business+of+Sports. pd f/ last December 13, 2018 KPMG (2018). Data & Analytics technology scores big in sports. Retrieved from KPMG website: https: //info. kpmg. us/techinnovation/tech-and-sports/goal-data-analytics-tech-scores-big-insports. html last December 13, 2018 Deloitte (2018). Internet of Things in sports. Retrieved from Deloitte website: https: //www 2. deloitte. com/us/en/pages/consumer-business/articles/internet-of-things-sportsbringing-iot-to-sports-analytics. html last December 13, 2018 Deloitte (2018). 2018 Sports industry starting lineup. Retrieved from Deloitte website: https: //www 2. deloitte. com/us/en/pages/consumer-business/articles/sports-business-trendsdisruption. html last December 13, 2018 Deloitte (2018). Deloitte Football Money League 2018. Retrieved from Deloitte website: https: //www 2. deloitte. com/us/en/pages/consumer-business/articles/deloitte-football-moneyleague. html last December 13, 2018 Deloitte (2018). A whole new ball game: Navigating digital transformation in the sports industry. Retrieved from Deloitte website: https: //www 2. deloitte. com/us/en/pages/technology-media-andtelecommunications/articles/digital-transformation-and-future-changes-in-sports-industry. html last December 13, 2018 PWC (2018). Sports Industry: Lost in Transition? Pw. C’s Sports Survery 2018. Retrived from PWC website: https: //www. pwc. ch/en/publications/2018/Pw. C%20 Sports%20 Survey-2018_web. pdf last December 13, 2018 Deloitte (2018). Sports Analytics: The three-minute guide. Retrieved from Deloitte website: https: //www 2. deloitte. com/content/dam/Deloitte/global/Documents/Deloitte-Analytics/dttlanalytics-us-ba-globalsportanalytics 3 minguide. pdf last December 13, 2018