6 FIFA Women’s Football Symposium .UEFA Source: FIFA Women’s Football Survey 2014 • Total annual

  • View
    216

  • Download
    0

Embed Size (px)

Text of 6 FIFA Women’s Football Symposium .UEFA Source: FIFA Women’s Football Survey 2014 • Total...

  • 6th FIFA Womens Football Symposium

    The Business Side of the Game: Financial Principles

    Ebru Kksal, CFAJuly 3-5, 2015, Vancouver

  • Contents

    1. How is Womens Football Currently Financed?

    2. What are the Biggest Challenges Facing Womens Football?

    3. Creating Revenue and Value for Womens Football

    4. The Role of Government & NGOs

    5. Case Studies: England, Germany, France

    6. Key Takeaways

  • 1. How is Womens Football Currently Financed ?

    Presentation title 3The Business Side of the Game: Financial Principles

  • Annual Investment in Womens Football

    4

    14%

    7%

    13%

    2%

    1%

    63%

    Investment by Confederation

    AFC

    CAF

    CONCACAF

    CONMEBOL

    OFC

    UEFA

    Source: FIFA Womens Football Survey 2014

    Total annual investment by 177 MAs is USD 156 mn, avg of USD 905K per MA.

    UEFA main driver with total investment of USD 99 mn, avg of USD 2 mn per MA.

    The Business Side of the Game: Financial Principles

    2.30.8 0.3 0 0.2

    1.7

    6.3

    1.23.2

    0.10.7

    6.9

    Revenue Sources

    Sponsor Government

    Sponsors & governments contribute USD 23,9 mn (15% of total).

    State plays a key role in development of WF, contributing 4x more than sponsors.

  • Annual Cost & Revenues of Top Womens Leagues

    The Business Side of the Game: Financial Principles 5

    Total annual cost of operating top national leagues is USD 38,9 mn.

    Wide discrepancy by MA (ranging from USD 1,7 mn for top 20 MAs to less than USD 50K below 100th place, avg, USD 320K).

    21%

    11%

    27%3%

    1%

    37%

    Costs by Confederation

    AFC

    CAF

    CONCACAF

    CONMEBOL

    OFC

    UEFA

    Source: FIFA Womens Football Survey 2014

    The main support for the organization of the top womens football leagues comes from MAs (64%).

    Sponsors provide almost 25% of the funds and governments make up for 9%.

    64%

    23%

    9%

    7%

    Revenue Streams

    MA

    Sponsors

    Government

    Others

  • Club Football in Europe

    The Business Side of the Game: Financial Principles 6

    The WF budgets of 22 clubs representing 20 countries are evenly distributed, though with a large variance in size.

    Club WF is heavily financed by mens section, while sponsors and grants remain to be an important source as well.

    10

    42 2 1 1 0 0

    2

    3

    4 33 3

    24

    0

    4

    2 3

    1 1

    1

    0

    0

    2

    4

    6

    8

    10

    12

    14

    Top 2nd 3rd

    13%

    18%

    14%18%

    23%

    14%

    < Eur 50K

    Eur 50K-150K

    Eur 150K-250K

    Eur 250K-500K

    Eur 500K-1.000K

    > Eur 1.000K

    Source: ECA Womens Club Football Analysis, 2014

  • 2. What are the Biggest Challenges Facing Womens Football?

    The Business Side of the Game: Financial Principles

  • Perception of Womens Football

    The Business Side of the Game: Financial Principles 8

    36%

    33%

    31%

    31%

    15%

    13%

    7%

    5%

    Great platform for international participation

    Vehicle for social development

    Sport for women which is culturally challenged

    Sport not traditionally seen as being for women

    High participation sport

    Quality sport

    Expression of modern lifestyle

    Attractive area for investment

    Source: FIFA Womens Football Survey 2014

  • Challenges, Priorities and Needs

    The Business Side of the Game: Financial Principles 9

    The need for increased investment is considered as the biggest challenge preventing womens football from moving to next level.

    Most competitive MAs put emphasis on quality of their players, less-developed MAs focus on quantitative aspects.

    Source: FIFA Womens Football Survey 2014

  • Media Coverage

    The Business Side of the Game: Financial Principles 10

    In 92% of the MAs, WF is promoted by at least 1 platform.

    WF is promoted by print media in almost 80% of the MAs.

    74% of the most competitive MAs have a contractual partnership with a TV Channel compared with 9% for less competitive.

    76%

    8%

    16%

    No TVPartnership

    Only forNational Team

    For NationalTeam & TopLeague

    80%

    71%

    62%

    59%

    54%

    9%

    4%

    Printed Press

    Website

    Social Media

    TV

    Radio

    None

    Other

    Source: FIFA Womens Football Survey 2014

  • Critical Success Factors & Constraints for Womens Club Football in Europe

    The Business Side of the Game: Financial Principles 11

    Qualified staff, popularity of WF and existence of a professional youth academy are seen as most critical success factors.

    Limited financial resources, lack of public interest and broadcasting/media attention are the main constraints for growth CWF.

    Source: ECA Womens Club Football Analysis, 2014

    Qualified/Experienced Staff

    31%

    Popularity of WF in

    region/country

    20%

    Support from FA

    13%

    Professsional Youth

    Academy15%

    Competitive Environment

    11%

    Financial/Media Interest

    7%

    4th Qtr3%

    Critical Success Factors

    Limited financial resources

    34%

    Lack of interest by

    public26%

    Broadcasting & media attention

    22%

    Lack of support from

    FA12%

    3rd Qtr3%

    4th Qtr3%

    Constraints

  • 3. Creating Revenue and Value for Womens Football

    The Business Side of the Game: Financial Principles

  • The Business Side of the Game: Financial Principles 13

    The Importance of Marketing

    Marketing...

    ... helps shape the way womens football is perceived and supported

    ... helps to proactively manage the reputation beyond supporters and followers of womens football

    ... secures commercial partnerships

    ... provides sustainable and long-term returns

    Marketing is an enabler to generate revenue and so facilitate the sustainable development of the womens game

  • The Business Side of the Game: Financial Principles 14

    Potential Sources of income for WF

    Pre-requisites

    Marketing Event Management

    Revenue drivers

    Execution

    Ho

    spit

    ali

    ty

    Lice

    nsi

    ng

    Foo

    d &

    Bevera

    ge

    Sp

    on

    sori

    ng

    Tic

    keti

    ng

    Structure &strategy

    Branding

    Mem

    bers

    hip

    s

    Marketing Communications

  • The Business Side of the Game: Financial Principles 15

    A WF Representative should be in the EXCO, WF or Marketing Committee

    EXCO, WF or Marketing Committee

    People who can give guidance in line with overall womens football strategy so WF department does not operate in isolation

    Potentially greater networks and business contacts through the people on the committee

    Access to more experienced help, particularly if WF isnt the priority of your in-house team

    Dedicated WF Department

    Complete control and visibility of the marketing function retaining responsibility for any sales and marketing activity

    Greater contact between womens football and its partners allows you to build your own relationship networks

  • The Business Side of the Game: Financial Principles 16

    WF strategy should be integrated into every function

    Organisations overall strategy

    Vision Mission Values Goals

    Marketing strategy

    Competition strategy

    Corp. comms. strategy

    ...

    The strategic plan sets the overall direction in which the organization is headed, where womens football should be clearly stated.

    The marketing plan outlines the overall marketing strategy and very importantly should be aligned with the overall strategy including WF.A consistent strategic approach is vital to the creation of value and

    revenues for WF therefore all departments have to work closely together

  • The Business Side of the Game: Financial Principles 17

    Growing under the wings of Mens Football?

    Could sponsors who want to be part of Mens Football be encouraged to buy into Womens Football as well?

    HOW CAN EXISTING CONTRACTS BE USED AS LEVERAGE AND SYNERGY BE CREATED?

    Sponsorship is a cooperative relationship and sponsors are very particular about their needs and requirements (reach , exposure, positive brand

    interaction etc) but once a contract is secured, an internal budget allocation is up to the MA

    Financial support Value in kind Expertise

  • Three important elements to run a successful WF sponsorship programme

    The Business Side of the Game: Financial Principles 18

    Define1

    Sell2

    Manage3

  • The Business Side of the Game: Financial Principles 19

    How to sell a WF sponsorship a 7 step approach

    Define structure

    1 Set fees2

    Identify sponsors

    3Develop

    sales tools4

    Contact sponsors

    5Present

    to sponsors6

    Negotiate fees and contract

    7

  • The Business Side of the Game: Financial Principles 20

    The Power of Social Media is an Opportunity

    Social TV

    35% of screen time simultaneous use of TV with another digital platform. The 2014 World Cup perfectly demonstrated this symbiotic relationship.

    TV viewing figures broke previous records in many countries, and with 35.6 million tweets, the astonishing #BRA vs. #GER semi-final was the most-discussed single sports game ever on Twitter.