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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.
