Walter Bugno, Tribal Sports Group | Money In Sport

WELCOME TO MELBOURNE

WHY MONEY IN SPORT?

Because  everything  about  sport  has  changed  

WHY MONEY IN SPORT?

…it  started  with  the  “spirit”  of  sport  

WHY MONEY IN SPORT?

…but  soon  shi9ed  to  the  “materialism”  of  sport  

WHY MONEY IN SPORT?

…and  today  its  about  survival  and  the  “business”  of  sport  

WHY MONEY IN SPORT?      …because  sport  has  become  a  compe<<ve  business  

     …with  its  own  ecosystem  of  money  flows  in  many  direc<ons                    

 …and  where  every  individual,  en<ty,  associa<on,  organisa<on  is                          aiming  to  maximise  what  it  makes  and  what  it  takes    

THE BUSINESS OF SPORTS TODAY The  market  for  sports  events  (<ckets,  media  rights,  Sponsorship)  in  2014  was  US

$80billion,  growing  at  an  impressive  7%  

THE BUSINESS OF SPORT The  overall  sports  market  (spor<ng  goods  and  licensed  products,  health  and  fitness  clubs,  events  and  non  event  Ac<vi<es)  in  2014  was  in  the  order  of  US$700billion  

1%  of  Global  GDP  

THE BUSINESS OF SPORT TODAY Media  Rights  and  Sponsorship  

drive  Revenues  

Sponsorship  35%  Tickets  27%  

Other  3%  

Media  Rights  35%  

Record  Amounts  of  Cash  being  doled  out  

THE BUSINESS OF SPORT TODAY Football  is  king  …  but  there  is  growth  across  all  the  seven  major  sports  …  football,  American  

football,  baseball,  Formula  1,  basketball,  hockey  and  tennis    

THE BUSINESS OF SPORT But  …  its  not  all  about  revenues  

             …  the  cost  of  winning  is  spiraling                …  and  winning  is  the  best  guarantee  for  protec<ng  revenues  

Winning  has  become  a  virtuous  cycle  

THE BUSINESS OF SPORT The  fastest  rising  cost  is  the  cost  of  sports  biggest  assets  …  THE  STARS  

THE BUSINESS OF SPORT

The  growing  imbalance  between:  •  Revenues  and  Costs  •  Winning  and  Losing  

…has  an  ever  increasing  level  of  financial  pressure  on  clubs,  sports  and  associa<ons.  

A  Snapshot  of  Headlines  and  Facts  

-­‐  56  clubs  in  England’s  top  5  football  divisions  have  gone  into  administraFon  since  92/93  -­‐  Average  wages  in  the  English  Premier  League  have  risen  from  £77,083  in  92/93  to  over  £1.5m  now  -­‐  Manchester  City’s  wage  bill  of  £233m  compares  to  Southampton’s  £47m  -­‐  13  of  France’s  Ligue  1  football  clubs  are  for  sale  -­‐  Italy’s  Serie  A  football  clubs  had  a  combined  loss  of  €186m  in  13/14  (€64m  loss  in  2005/6  is  the  

close  to  break  even)  

THE MONEY IN SPORT CONFERENCE

THANK YOU