Infront Sports Media Presentation

BEING SUCCESSFUL IN THE WORLD OF SPORTS

FIS Organisers’ Meeting Cavtat-Dubrovnik, May 23, 2009

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Content

1. Introduction: external forces and internal challenges 2. Key levers for success

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Sports markets are under pressure from external forces Increasing competition from competing formats • Entertainment driven TV and viewership growing • Major events viewership in decline

Key revenue sources are under pressure • Decreasing sports sponsorships • TV rights under pressure • Sports licensing and merchandising is stagnant

Sports market under pressure

Increasing influence of commercial partners • Schedule and format influenced by commercial partners • Licensees and sponsors increasingly sophisticated and demanding

Pressure to professionalise sports bodies • Mismatch in skills and expertise between demand and supply-side • Sophistication of sports industry 3

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Increased competition from other content formats

Other entertainment formats Gaming

Movies

Other sports

Skiing / Snowboard Competitions

Reading

Opera

FIS events are not only competing against other sports but against many other forms of entertainment

Concerts Music

Theatre Dance

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Sport is still key content but coming under pressure Offering by genre (based on televised time) 100%

15 11 22

14

11

9

11

12

11

22

23

16

17

17

36

36

37

22 20

38

Consumption by genre (based on reach)

8 10

7 9

Others

6

5

5

Sports

17

15

19 **

18

18

Information

19

20

16

17

42

42

21

22

44

44

2000 2001 2002 2003 2004 2005

Entertainment

Fiction

4 16

3 19 ***

3 16

20

19

19

15

19

20

20

42

41

40

41

20

100%

2000 2001 2002 2003 2004 2005

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Turning “minor” properties into premium events

Medium

High

Formula 1

Eur. League Football NBA

NFL

MLB ATP/WTA

PGA

FIVB

Low

Compelling to consumers with reach

Premium sports events combine two areas: consumer appeal (1) and monetization potential (2)

Premium events Non premium events

Low

Medium

High

Monetisation of assets 6

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Premium sports with higher growth rates (1/2) • NFL • NBA • FIFA World Cup • Formula 1 • UEFA Champions League

Premium sports CHF million 8% p.a.

Global TV sports rights

26% p.a.

+3% p.a. +9% p.a. 19.4 19.6

25.2 22.4

20.5

3.1

4.7

6.6

7.8 5.3

8.3 5.9

10.4 6.1

21.9 21.5

16.0 16.5

'98 '99 '00 '01 '02 '03 '04 '05 '06 Other sports +3% p.a. 12.9

'98 '99 '00 '01 '02 '03 '04 '05 '06

11.8

12.8

+0% p.a.

14.3 14.6 14.6 13.6

15.4 14.8

• WTA/ATP • PGA • EHF Champions League • Winter Sports • etc

'98 '99 '00 '01 '02 '03 '04 '05 '06 7 *National football leagues not included; Source: PWC, Wilkofsky Gruen, sportsbusiness.com

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Premium sports with higher growth rates (2/2)

Key questions: • Status of FIS competitions today? • Key levers to make a sport more attractive?

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Six internal challenges that every sport faces Challenges

Athletes’ salaries

1

2

Changes in technology

Ticket pricing

3

4

Internationalization

Innovation

5

6

Illegal activities

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Content

1. Introduction: external forces and internal challenges 2. Key levers for success

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Scoring in the world of sports along six levers

1. Transforming the sport

• Excitement and appeal of competition

2. Circuit structure (calendar and format)

• Consistent story to follow • “Know when and where”

3. Star/hero development

• Star and fan appeal • Country rivalries

4. Coherent branding

• Identification with the brand

5. Effective PR & promotion

• Consistent year-round communication activation

6. Professional organisation

• High quality partner 11

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1. Transforming the sport – example Biathlon • • • •

Calendar Race formats TV graphics and production Centralised marketing

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1. Transforming the sport – example FIS Optimisation Project • Media – TV Production – Websites • Marketing & Communication – Brand Identity, Sponsorship Concept, PR & Promotion • Event Management – Fan Experience, Hospitality

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2. Circuit structure – example Formula One • Fix long-term calendar • Fix dates for “classics” • Create clearly defined and consistent sport “product” • Increase value to Members and other key stakeholders

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3. Developing stars – example WTA • To promote its most talented and popular players in ways that guarantee them maximum exposure. If the equity of the players goes up, this pays directly back into the sports and the federation

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i ng e bl at

Intangible attributes • Authenticity • Integrity • Passion • Stature • Champions • Worldwide

es

Brand benefits

Brand attributes

What is the brand?

t Ra

tes

What does the brand stand for?

t bu

Em ot

tr i

io na lb en ef it

ta In

Emotional benefits • Makes me feel like a pro • Gives me pride and confidence • It must be of a high-standard • An association with the world of professional tennis

s

4. Coherent branding (clear brand definition) – example ATP

att r

le

f ne be al

i ts

Ta ng ib

n io

ib u

Rational benefits • Entertainment and excitement • Ensures high quality of professional tennis products and services • Access to tennis related information Brand vision/core: • Access to worldwide tennis best in (men’s) professional stars tennis

Tangible attributes • Brand logo/mark • Rankings • Tournaments • Players • Promotional Programs • Website • Publications • Partners 16

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Supporting brand

Event brand Umbrella brand

4. Coherent branding (clear brand architecture) – example FIFA

FIFA World Cup

FIFA U 17/19

FIFA world ranking

FIFA Women’s World Cup

FIFA medicine

Other

FIFA goal

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5. Improved PR and promotion – example WTA Consistent year round communications activation • Maximise PR potential – Promotion of players’ lifestyles and interests outside of the sport • Targeted – Support for equal prize money to demonstrate social concern – Creation of role models and international stars (UNESCO ambassadors) • Strategic alliances – Global / pan-regional media co-operations – Worldwide partnership with UNESCO • Centrally controlled – Outdoor advertising campaign in host cities in support of tour – Joint promotion activity with local tournaments

• Gives the brand a foundation of awareness throughout the year, regardless of season or performances of the players • Allows for broader base of support for fans and more opportunities for players off the court 18

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6. Professionalise the organisation – examples

• Creation of vision and mission • Changes in organisation initiated in 1998 and completed in 2002 (e.g., introduction of 5 divisions)

• Changes in organisation initiated in 1999, completed in 2000 (e.g., creation of CEO position) • Total review of overall governance (e.g., decrease of number of committees from more than 20 to ~10) • Streamlined organisation in 2001 into four areas – Member services – Finance and administration – Marketing and event management – Media and communications

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6. Professionalise the organisation – federation example 2002: Professional service provider for associations

Implementation of biggest sports Development development program ever of action Development programme to !Proof of implement of federation success 1998: Business Plan/ plans Administrator Department of associations Management ! Best crossPlans divisional co-operation ! Organisational Individual and shared goals/ restructuring performance Development strategies, of "Vision" commitments ! Correct based on and "Dual structure Vision/ Mission" Mission ! Correct strategy

!

Impactoriented review of lived organisation and performance culture, etc.

Time 20

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6. Example – vision and mission of a global federation Universality Quality

…for the world Solidarity

Democracy

For the game…

Federation family Trust 21

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6. Example – mission statement USOC Critical elements

“To support U.S. Olympic and Paralympic athletes in achieving sustained competitive excellence and preserve the Olympic ideals, and thereby inspire all Americans”

Test Rationale

Inspirational

!

• Focused on excellence and inspiration

Brief

!

• One sentence long

Clear

!

• Prioritises competitions and athletes • Balances ends against means

Actionable

!

• Results can be measured

Consistent

!

• Focused on goals, not enablers

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Scoring in the world of sports along six levers 1. Transforming the sport

4. Coherent branding

2. Circuit structure (calendar and format)

5. Effective PR & promotion

3. Star/hero development

6. Professional organisation

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Conclusion – our recommendation as partner of the FIS and the National Ski Associations

Action today • National Ski Association programme and activities, also taking into account the six levers for success

Definition of vision for skiing • • • •

What does “Premium skiing” look like? What are our aspirations? What should skiing be recognised for? What are incentives/risks for each member of the family?

Rolling back the future

Today

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THANK YOU!

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