Television rights - The Glue in the Sports Network

- THE GLUE IN THE SPORTS NETWORK

# SPORTS # ECONOMICS # TVRIGHTS # BROADCASTING

television rights

Hogne Ulla COPENHAGEN BUSINESS SCHOOL – FEBRUARY2013

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“That Norwegian guy”

Hogne Ulla, aged 22

Current

Ulla Sport & Media – Freelancer

Student at Norwegian School of Economics (NHH)

Earlier

Copenhagen Business School - Exchange Spring 2011

Editor, journalist, content marketing

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TACTICS OF TODAY

Some cases and focus on today’s paradigm-shift

Importance for the broadcasters / TV-channels

Return on Investment (ROI) and the Value Chain

Football Money League (Deloitte)

TV-rights: Does it really matter?

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It’s all coming back to

me..

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“A SMALL STEP FOR

MAN.. Promotion to the FA Premier League

Growing enthusiasm – fans and interest groups -> Interest from sponsors and investors (US, Asia, Russia). -> Fans go “mad” – also, the fan base grows due to success Agents will show up at the director’s office.. -> Fresh legs and faces

Give clubs a chance to go “all

in”!

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..GIANT LEAP FOR MANKIND

Bosman ruling

TV-deals

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Findings

The financial situation relies on mainly three fields, namely “Match-day”, “Broadcasting”, and “Commercial”

Football Money League

Scan the QR-code

and download the latest

report

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Big differences

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Premier League Overseas Rights

Overseas: £2,5 billion+ Domestic: £3 billion

= 14 x

..or 12 x

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Markets = Fan base

Premier League- All over - growth in Asia LaLiga

Europe + South America French Ligue 1

Mid-Europe + Africa Italian Serie A

Europe + growth in Asia + US German Bundesliga

Mid-Europe + Africa + America

Case Manchester United, 659 million fans world-wide - > 325 in Asia

Recall Income streams besides broadcasting are important for the club’s revenue. United has commercial partners in 72 countries.

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And for the TV-channels

Subscribers - > exclusive rights important

Lag effects > Tendency to stay within the channel and watch the

next show

Trend: Pay-TV Private versus

public good

Category Example Funding

1 – Non-

commercial

NRK License fees or/and public funding

2 – Semi-

commercial

TV Denmark License fees, public funding or/and advertising

3 – Commercial TV2 (Norway) Advertising

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Return on Investment

(ROI)

10 %

20 %

70 %

Who get’s the bucks?

Distributor

Right holder (s)

Broadcaster

Source: TV2 Norway

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Exclusive - or not?

CASES

UK: Karen Murphy case- Sports bar - > Huge interest and a very important discussionEU regulations

Italy

4 million pirate cards (mid 2000s)

Streaming (digital development)

Growing interest from betting companies and overseas investors / groups

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Ethical dilemmas

Case: FIFA World Cup 2014 in Brazil

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Let’s crystal-gaze

London 2012 63 million live video streams

“London 2012 confirmed that the digital revolution is now fully at the heart of sports events.

Brazil2016 - >

young population (18-30) - > Future grow in streaming?

What about

the digital

platforms?

What are YOUR expectations?

Streams in million

0

20

40

60

80

Beijing 2008

London 2012

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Thank you for your attention

For (more or less) interested

Sports Management World Wide (SMWW)

-E-learning and various courses in sports management

NHH - Norwegian School of Economics

www.nhh.no – business studies in Bergen, Norway

Comments, questions or ideas related to sports economics?

[email protected] or stalk me at About.me/Hogne.Ulla