PwC's Sport Survey 2016 2016.PwC’s Sport Survey 2016 3 Dear Madam or Sir, We are...

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Transcript of PwC's Sport Survey 2016 2016.PwC’s Sport Survey 2016 3 Dear Madam or Sir, We are...

  • www.pwc.ch

    August 2016

    PwCs Sport Survey 2016Key insights from global sports leaders

  • 2 PwCs Sport Survey 2016

  • PwCs Sport Survey 2016 3

    Dear Madam or Sir,

    We are pleased to present you with PwCs Sports Survey 2016, the inaugural edition of a publication that measures the mood among leading international sports federation executives on a number of topical industry matters.

    As the sports industry steadily continues to grow, it is increasing-ly required to adapt to the global megatrends that are shaping business decisions around the world. Our survey specifically assesses the extent to which demographic and social change, shifts in global economic power and technological advances are affecting decision-making in the sports industry.

    The results, and insights we were able to derive from them, are summarised in this report. We hope you find its contents to be as interesting as it was enjoyable for us to put them together.

    David DelleaDirector, Sports Business Advisory PwC Switzerland

    Contents

    View from the top: Preparedness in an ever-changing world 04

    Optimism in the face of threats 08

    A new dawn for cycling Martin Gibbs, UCI 12

    New places, new spaces and new faces 16

    Leading from the front Patrick Baumann, FIBA 20

    Digital driving change 24

    Technology front and centre Sarah Lewis, FIS 28

    Notes and sources 30

    Contacts 31

    This survey was conducted in May 2016 through an online questionnaire that was sent to the international federations that are members of ASOIF (Association of Summer and Winter Olympic International Federations), AWOIF (Association of International Olympic Winter Sports Federations), ARISF (Association of IOC Recognised International Sports Federations) and AIMS (Alliance of Independent Recognised Members of Sport). In total, 45 responses were received, 23 from ASOIF and AIOWF members, and 22 combined from ARISF and AIMS members. At the time of their responses, each of the respondents occupied the role of Secretary General/CEO or President of their respective federations.

  • 4 PwCs Sport Survey 2016

    Preparedness in an ever-changing world

    View from the top

  • PwCs Sport Survey 2016 5

    Leaders showing adaptabilityIn the past, sports federations were notoriously slow to change. The lead-ers responding to PwCs Sports Survey represent organisations that are, after all, the international custodians of their sports, the main responsibility of which is to manage a deeply diverse membership. The ensuing complexity of their organ-isational structures can often create a certain inertia in decision-making.

    Change is afoot, however. Leaders are now responding to developments in the world around sport with the same energy and agility as the athletes that they govern.

    Integrity is everything Among the leaders that responded to the survey, there is an acknowledgement that change cannot happen without address-ing one of the most significant issues to arise in the sports industry first. At pres-ent, there is a profound trust deficit.

    Governance crises, the rise of doping scandals, as well as controversies over match-fixing and betting have contribut-ed to the perception of an endemic lack of integrity. This may result in more than just the alienation of fans: it threatens to undermine the core values upon which all of sport is based.

    Key areas of change assessed in this report:

    Evolving economic and political landscapes

    Shifts in fan demographics, driving innovative solutions

    The continued rise of technology, and, in particular, mobile content consumption

  • 6 PwCs Sport Survey 2016

    Out of change comes growthDespite these threats, there is a clear spirit of optimism among sports leaders, many of whom are looking to address these challenges head on. The reality is that certain markets are booming in sports and if you are able to tap into that momentum, it could greatly boost your sports growth, says Patrick Baumann, General Secretary at FIBA, the Interna-tional Basketball Federation.

    Nowadays, sports leaders are often on the front foot. They are embracing global change and adapting to it, while facing up to existing challenges. A key finding of our survey is that sports leaders face the future with confidence over fear. Despite numerous challenges, sports leaders see this as a period that is fertile for growth.

    Technology is central to this growth. Sports are changing their business mod-els to engage directly, and even partner with, fans. This new, non-linear rela-tionship also represents unprecedented commercial opportunities.

    Integrity and match-fixing: biggest threats to growth

    Abundant growth

    80 % believe the global sports industry will grow in the next 5 10 years

    Dont know/ Abstain

    Stay the same

    Grow

    80%

    Lack of trust in the integrity of sports governing bodies

    Impact of sports betting on match-fixing

    22.7%

    18.2%

    15.9%

    22.7%

    Very concerned Concerned

    While 40.9% are con-cerned or very concerned about the lack of trust in the integrity of sports governing bodies, 38.6% are concerned or very concerned about the impact of sports betting on match fixing.

    View from the top

    16%

    4%

  • PwCs Sport Survey 2016 7

    Certain markets are booming, and if you are able to tap into that momentum, it could greatly boost your sports growth Patrick Baumann, FIBA

    Greater engagement, participation and commercial opportunities

    0%

    20%

    40%

    60%

    80%

    100%

    Host citycontributions

    Ticketing andhospitality

    Licensing andmerchandising

    Broadcastingrights

    Sponsorshiprights

    Youthparticipation

    Social mediaengagement

    93.5

    4.5

    11.415.9

    18.2

    40.9

    31.8 40.9

    84.177.3

    72.7

    54.5 52.3 47.7

    Dont know/ Abstain

    Decline

    Stay the same

    Grow

    An average of 88.8% believe engagement and participation will grow in the next 510 years, and an average of 60.9% believe the same for the commercial side of the sports industry

  • 8 PwCs Sport Survey 2016

    Optimism in the face of threats

    Deep trust deficit Trust in big institutions is eroding across geographies and industries, and sport is no exception. The biggest threat identi-fied by sports leaders is the loss of trust between sporting bodies, individual athletes and fans.

    This is something sports leaders are keen to address. Nearly 23% identified a lack of trust in the integrity of governing bod-ies as the biggest threat to growth, with the impact of sports betting on match- fixing also a concern.

    Scandals in the worlds of athletics, cycling and international football, and more recently in relation to alleged doping practices at Sochi 2014, have contaminated the affinity between fans and governing bodies. Even athletes are losing heart.

    Top five threat areas

    Very concerned Concerned

    Speed of technologicalchange increasing

    investment requirements

    Competitive pressure fromother entertainment formats

    (e.g. e-sports, video games)

    Shift in behaviour and spendingpriorities of younger generations

    Impact of sports bettingon match-fixing

    Lack of trust in the integrityof sports governing bodies

    22.7%

    15.9%

    6.8%

    6.8%

    4.5

    22.7%

    29.5%

    25%

    27.3%

    18.2%

  • PwCs Sport Survey 2016 9

    We have received requests from hun-dreds of clean athletes imploring us to do more to ensure our sports are clean and that follow-up investigations are undertaken, wrote the chairs of the International Olympic Committee (IOC) Athletes Commission and the World Anti-Doping Agency (WADA) Athletes Committee in a 2016 letter to the presi-dents of the IOC and WADA.

    With regard to match-fixing in sport, English author Nick Hornby (as cited in The Financial Times, 1994) said: once we begin to doubt what we are seeing is real, then we will cease to care and, without caring, it is all over.

    The future is social Nevertheless, leaders in sport face the future with great optimism.

    Sport and social media combine huge opinionated audiences with technolog-ical platforms that encourage conversa-tion. Watching sport is no longer enough. Fans are now broadcasters, sharing con-tent and wanting immediacy, connection and authenticity from athletes. For the millennial generation, the digital experi-ence is as important as the live one.

    Sky-high confidence

    Dont know/Abstain

    Doubtful

    Very confident

    Optimistic

    90% are confident or very confident about their respective organisations growth prospects

    45%

    45%5%

    5%

  • 10 PwCs Sport Survey 2016

    Optimism in the face of threats

    Finding the keys to participationSports leaders identified youth participa-tion as another major growth area. They want to develop their disciplines for as wide an audience as possible. The ques-tion of how to enlarge the pool of young people taking part in organised sport is a critical one. While greater participation in sport has been shown to have a posi-tive impact on young peoples mental and physical health, confidence, self-esteem and resilience, the persistence of sed-entary lifestyles and poor eating habits continues to contribute to the obesity epidemic we are facing.

    TV and marketing still centralWhile sponsorship and broadcast rights are still seen as extremely important, there was a clear difference in their impact depending on the Olympic status, or not, of a sport. 76% of summer and winter Olympic international federations said broad