Global Sports Markets

Presented By: Amanda Bolden, Gloria Gonzalez, Corey Jackson, and , Boris Pilev

September 9, 2008

Global Atmosphere of Sports• Characteristics of markets

– Growth• Said to have experienced high rate of growth after the 1984 Summer Olympics in

Los Angeles. • Coca-Cola spent $30Million on sponsorship of games

– Current• Sports Marketing a $250Billion industry. Includes activities such as: advertising,

naming rights, athlete endorsements, facility construction, sporting goods and licensed merchandise, broadcasting rights, video games, etc.

• Some companies pay up to $200Million for highest level of sponsorship at 2008 Summer Olympics.

• CCTV and NBC exclusive broadcasting rights

CCTV $17 million for exclusive broadcast to Summer Olympics, could obtain $394 million in advertising revenue. By comparison, NBC paid $894 million for broadcast rights in the United States and is expected to garner more than $1 billion in ad revenue.

The Business Side of Sport

• WHERE MONEY CHANGES HANDS– Sponsorships/Endorsements– Licensing

• $16Billion Worldwide

– Naming Rights as Advertising • Emirates Stadium (Arsenal Football Club) – £100Million• Citi Field (New York Mets) - $20Million

Trends in Globalizing Sports

• Players moving across borders to highest bidders• Corporations entering into long term deals for advertising• Growth expected to continue in coming years. • Fantasy sports a rising market for advertising.

Tran$fer$A lot of athletes change their

club, even their country to persuade more opportunities

Brazilian soccer players who played on EURO 2008

Guerreiro Roger (Poland)Mehmet Aurelio (Turkey) Deco (Portugal)Pepe (Portugal)Kevin Kuranyi (Germany)Marcos Senna (Spain)Eduardo da Silva (Croatia)

David Beckham as commercial iconRevenues from his advertising campaigns during the 2002 and 2003 alone -- $23.8 million.

Becks image is used by:

PepsiArmani AdidasCastrolVodafone

Beckham’s former team, Real Madrid, sold about 100, 000 jersey the first days after he joined the team.

Currently, he is on a “popularizing the soccer in US” crusade, playing for LA Galaxy

$$$$ and sport- more connected than ever

Baseball player Alex Rodriguez, former shortstop for the Texas Rangers, had a contract that pays him $252 million over 10 years.

Manchester United signed Dimitar Berbatov for $57 million . His previous club, Tottenham Hotspurs , paid JUST $20 million

Personally Financed SportsTennis

BASIC COSTS:• Private lessons cost $100/hour or more• Racquets range from $50-$300• Tennis Shoes cost around $60-$90

PLUS: court fees, personal apparel, balls and other equipment, replenishment of the basics

International Competition

Event Men Ticket Women Ticket

U.S. Open (Flushing, NY)

$11 - $50,000 $24 - $1745 $220 million revenue

Wimbledon (London)

$1790-$5990 $1590-$2590 18,191 tennis ball key-rings.

Australian Open (Melbourne)

$560-$1,025 $650-$950 554,858 attendees

Ticket prices from stubhub.com, ticketjones.com, tennisboxoffice.com

Endor$ement$

• Monetary prizes are awarded to tournament champions and all qualifiers.

• But, the athletes count on endorsement offers for higher pay.

Andre Agassi

Maria Sharapova

International Influence in Baseball• Latin Influence:

– In 2006 23 out of 71 All-Stars and 6 of the 10 players with the highest batting averages were Latino

– Players are purchased as young as 16 years old

• Japanese Influence:– Japan accounts for about 40

percent of M.L.B. International's revenues (~$520 million).

– Unlike Latino players, Japanese players are purchased when they have matured

• E.g. Matsuzaka was paid $52 million for six years

Baseball in Latin America

• Like many industries today, baseball is finding it cost effective to search for talent in Latin American countries– Talent is dwindling in the U.S.– Cost of signing American

players is increasing• Latino players can avoid the

amateur draft and can be signed for a fraction of the cost of American players, some for as little as $2,000

• In July 2008, Dominican pitcher Michael Inoa received a $4.25 million, the most a Latino teen has ever gotten.

The Business of Baseball• Establish clubs , or training facilities, in emerging countries to

combat a lack of proper nutrition and a shortage of fundamental skills.

• Fidel Castro banned baseball in Cuba in 1960• In 2007, MLB sales surpassed $6 billion

– Ticket sales and media broadcasting