Globalization of Sports Group 6 PGDM-B

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Introduction
Sports that was meant to improve ones physical activity has become the most globalised and the most lucrative business in the world Major business in Sports are carried out by Sponsorships, Media Rights and Merchandising of sports teams

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Different Sports and their share in the Global Market

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Major Sponsorship deals in Sports

Sponsor MegaFon Event 2014 Winter Olympics Racing Venues Barclays Premier League Man U team Sponsor UEFA 2012& 2016 Olympics Value US$ 260,000,000

Mercedes Barclays

150,000,000 134,500,000

AON

132,000,000

Adidas

105,000,000

Omega Powerpoint Templates

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Growth Rate in different regions

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Major Global Sporting Events

FIFA World Cup Summer Olympics Winter Olympics Paralympic Games Cricket World Cup Tennis Grandslams Commonwealth Games Asian Games Tour de France

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Olympics
Began in Greece as a religious & athletic festival With an intent to recognize sports worldwide, International Olympic Committee formed and first International games held in 1896 at Athens 14 countries & 241 athletes With corporate sponsorships from 1984 Summer Olympics, reached global heights with worldwide recognition and large scale events Held across various locations across the world, largely helped in improvising the economies in various countries with large scale investments and acquisitions
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Beijing Olympics 2008

Summer Olympics 2008 was conducted at Beijing from August 8 to August 24, to become 22nd nation to host Olympics Official expenditure was around US$15 billion, whereas estimated was close to US$40 billion-US$44 billion. Surplus revenues from the games were in excess of target US$16 billion Large economic and social developments in the country, owing to the large scale event.
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Beijing Olympics 2008

Per capita income reached US$6,210 1.9 times that of 2001 Fixed asset investment increased by 17.4% annually, 6.1% up as compared between 1997 & 2001. Large investments in Science & Technology(85 billion yuan) and many invention patents (3864 3.1% more than 2001) led to emergence of many original enterprises and enhanced creative ability. Annual economic growth rate risen up by 12.1% in 2002-06, 1.7% higher than that of last 20 years. Of the total budget, 43.6% revenue was from television rights, 20.3% from sponsors & licenses, 11.1% from lotteries and 8.6% from tickets. Six high end industrial functional areas such as Zhongguancun Science Park, Beijing economic and technological development zone, business center and financial street have taken shape, starting to play an increasingly dominant role in the capital economy.
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Beijing Olympics 2008

Transportation and Communications:
Railway 300km municipal railway lines with investment of over 63 billion yuan Highway Focus on expressway directly to centers of countries and districts in other suburbs 890km expressway with 30 billion yuan Transportation hubs developed across the country to shorten distance of transfer and provide convenience to passengers Rate of travel by public transport promoted from 27% to 60%, with municipal railway and large capacity bus and tram taking up 40% of total public transport By supporting the 17,000 accredited members from the world media with Comprehensiveness, Efficiency, Convenience and Comfortable using state-of-the-art technologies
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Football Clubs
Football clubs adopting global strategy with a strong focus on Asia Football adds business to other sectors like media and transport. Clubs prioritizing revenue generation over success on the pitch Clubs have expanded the range of commercial features, merchandises and facilities.
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 Many clubs are looking at strategic alliances with supporting industries and also crossborder alliances with other clubs. Many clubs are quoted on the stock exchange Clubs organize pre-season tours to several countries Clubs are targeting fans abroad through magazines and most clubs have their own channels. Players also make as much an impact as clubs do.
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Manchester City FC
On 1 September 2008, Abu Dhabi United Group Investment and Development Limited completed a takeover of Manchester City. Most Emiratis turned football fans after the signing State-owned Etihad airways signed a 400million pound sponsorship deal with the club Abu Dhabi Summer Soccer Schools conducted every year Official club merchandise store opened in Abu Dhabi
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 Fan zones opened in Abu Dhabi where games are shown live on big screens Club won business awards for the most innovative use of technology. The UAE embassy teams up with club staff to conduct soccer camps in several countries. Signed kit-deal with Nike Etihad airways offers travel discounts to club membership holders across the globe. Powerpoint Templates

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Sri Lanka Premier League

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Sri Lanka Premier League

No Sri Lankan owners for SLPL franchises Indian business houses buy all seven Sri Lanka Premier League franchisees The SLPL franchise owners Wayamba - Wadhawan Holdings Private Limited, $5.02 million Kandurata - Number One Sports Consulting Private Limited, $4.98 million Ruhuna - Pearl Overseas Limited, $4.6 million Uva - Success Sports Private Limited, $4.6 million Basnahira -Indian Cricket Dundee Limited, $4.33 million Uthura - Rudra Sports Private Limited, $3.4 million Nagenahira - Varun Beverages Lanka Private Limited, $3.22 million
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Title Sponsor of SLPL

M & M strategy of expansion in Sri Lankan two-wheeler and Aviation markets It sponsored the SLPL in order to create a brand awareness in Sri Lanka

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Indian Premier League

Sources of Revenue: Television Rights: Nimbus plans strategy to make use of IPL's global broadcast rights

Central Sponsorship: Pepsi bags IPL title sponsorship rights for five years
Team Sponsorship: Nokia is the team sponsor for Kolkata Knight Riders while Aircel sponsors Chennai Super Kings Mumbai Indians have multiple sponsors in MasterCard, Bajaj Allianz and Royal Challenge

Ticket Sales Each of the franchisee have been guaranteed 7 home matches and the revenue that they can generate from ticket Templates sales will be distributedPowerpoint in the ratio of 80:20 with IPL. Page 19

Kolkata Knight Riders IPL 5 Winners

KKR have 18 sponsors, the highest among all teams. The cost of a non-jersey partnership with KKR is Rs 60 lakh and a jersey sponsorship is upwards of Rs 1.5 crore. This year, KKR made roughly Rs 35 crore from sponsorships. KKRs sponsors include Nokia, Birla Sun Life, DishTV, ITC Vivel, Rose Valley, Royal Stag, Concast Steel, Bisk Farm Biscuits, Coca-Cola, Emta, Manyawar, Freecultr and The Telegraph. Rose Valley Group paid Rs 5 crore for a place on the KKR jersey. After the win, KKR may also increase in sponsorship rates for next year.
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Formula One Group

The Formula One Group is a group of companies responsible for the promotion of the FIA Formula One World Championship and exploitation of the sport's commercial rights. The majority shares is owned by CVC Capital Partners' funds . The Formula One Group got the complete commercial rights of the sports in 1997 for a period of 14 years. Before it was having 49% commercial rights. In 2004, many F1 teams threatened to start to a rival race series CVC acquired Formula One Group in 2005. It was a time when the revenues of the sport was decreasing and the future was unclear. In 2006, CVC acquired Allsport Management SA which manages the sale of almost all Formula One trackside advertising and the Formula One Paddock Club.
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Formula One Group

In 2007, CVC took control of GP2, a complimentary race series, bringing together all the revenues connected with the FIA Formula One World Championship under its own control. The rival race series named Grand Prix World Championship (GPWC), never started and many teams did under the table dealings with Formula One Group. In 2011, Formula One Group acquired the commercial rights for 100 years. In 2012, CVC bring down its share holding. It was to be listed in Singapore. The value IPO was estimated around $ 3 billions. But it could not be listed due to gloomy economic conditions. CVCs strategy was not solely dependent on a flotation. Earlier this year, it sold chunks of its investment to Blackrock, Waddell & Reed and Norges Bank Investment in deals that raised a combined $1.6bn although part of that sell-off strategy was to establish a pre-flotation valuation for F1.
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F1 India Connection
Kumar Ram Narain Karthikeyan is the first Formula One motor racing driver from India. Currently he is with HRT team. The only other Indian to be an F1 driver is Karun Chandhok. Monisha Kaltenborn, born in Dehradun India, is the current team principal and Chief Executive Officer of the Sauber Formula One team and holds a 33.3% stake in the outfit. She is the first female team principal in Formula One. The Buddh International Circuit in Greater Noida, Uttar Pradesh, India, by Jaypee Group track was officially inaugurated on 18 October 2011. The circuit is the venue for the annual Formula One Indian Grand Prix, which was first hosted in 2011. JK Tyre was pioneer in bringing racing to India. Sahara Force India Formula One Team is an F1 team jointly owned by Vijay Mallya and Subrata Roy.
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Red Bull Racing

Red Bull has sports based marketing strategy as its an energy drink. It sponsors several sporting events all over the world to market its product. Red Bull has its own F1 team named Red Bull Racing. The team has won three Constructors' Championship titles, in 2010, 2011, and 2012. Infiniti would become the team's title sponsor from the 2013 season onwards, with the team to be known as Infiniti Red Bull Racing. Red Bull have been very vocal about wanting to make F1 'fun' again. Red Bull started The Red Bulletin, a satirical magazine that is released four times per race weekend.

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Nike
World leader in athletic shoes and apparels and major manufacturer of sports equipments. Fortune 500 company valued at US $10.7 billion. Acquired companies like Umbro and Converse Inc. Serves as official sponsor for major sporting events including Olympics(2008,2012), Fifa World Cup(2010) and Euro Cup(2012) Serves as official sponsor for major sports teams and personalities: Football Clubs like Arsenal, Manchester United, Barcelona and Juventus Indian Cricket Team Tennis players like Roger Federer, Maria Sharapova and Serena Williams NBA players like Kobe Bryant and Kevin Durant
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Rolex
Premium Swiss watch manufacturer valued at approximately
US $3 billion Roger Federer and Tiger Woods are the most well known

sportsmen sponsored by Rolex

Official Timekeepers at Wimbledon Chief sponsor for Equestrian World Cup 2012 Sponsor for Rolex Sports Car Series part of Grand American Road Racing Championship
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UB Group
Indian Conglomerate deals with beverages, aviation, electricals and chemicals valued at US $4 billion.

Invests 6-7 crores annually in various domestic sports events in India Owner of Royal Challengers Bangalore Team Owner of Force India Formula-One Team Adopts a policy of linking specific products to specific events. Football tournaments are mass events and hence it is linked with its McDowells No.1 product Golf events being popular among the elite group of people is linked with the brands Signature product.
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Emirates Airlines
Largest airline in Middle-East based in Dubai Wholly owned by Government of Dubai Official sponsor and airline for major sports governing bodies like: Fdration Internationale de Football Association (FIFA) International Cricket Council (ICC) Asian Football Confederation (AFC) Official sponsor for various sports clubs like: Football Arsenal, A C Milan and Real Madrid Cricket Durham English County Team and Deccan Chargers from IPL Official sponsor of US Open Tournament
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