TWO GREAT passions...
ONE POWERFUL NEW SPORT SportBusiness International • No.131 • 01.08 49
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PASSION, POWER AND PROFIT SUPERLEAGUE FORMULA GEARS UP FOR AUGUST LAUNCH
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hat do you get when you harness the passionate support for some of the world’s leading soccer clubs to the thoroughbred power of top class open-wheel motor racing? It’s a question which will be answered when Superleague Formula makes it’s debut at the UK’s Donington Park Circuit on the weekend of August 30/31. That’s the red letter day when up to 20 football club branded cars will line up on the grid for the first race in a series designed to win the hearts and minds of football and motor racing fans alike and deliver a significant new audience for broadcasters and sponsors. For Superleague Formula CEO Alex Andreu and his Barcelonabased team, it will mark the fulfilment of a dream to create what they see as more or less the perfect 21st century sport - an event which taps into the deeprooted, almost tribal, support for football clubs and translates that intense interest to the world of Formula 1- style racing. The Series, which is approved by the FIA, motorsport’s governing body, will be held at six wellknown European racetracks in the UK, Germany, Belgium, Italy, Portugal and Spain in its first year. But ambitions extend way beyond Europe’s border to a truly global programme, which takes in the Americas, China and Asia. “We feel this is a remarkable opportunity to create a new sports property for the 21st century and the way that the project has been welcomed by clubs, broadcasters and potential sponsors suggests that they share our view,” said Superleague Formula Commercial Director, Jonathan Bancroft. The beauty of Superleague Formula lies in its essential simplicity. Between them, football and F1-style racing command a massive chunk of sports fans’
attention and affection globally. Put them together and, so the theory goes, you have a brand new addition to the world sports calendar with a ready-made audience. Already 10 football clubs from Europe and South America have signed up for the series and a further seven are to be announced shortly. Bancroft, a motorsports marketing veteran, says he is delighted by the response from the clubs and fans. “Every time we sign up a new club we unveil a car in that club’s colours in front of the fans. At each unveiling the response has been uniformly rapturous. That is a very strong and clear indication of the way that the two sports will come together as one in Superleague Formula,” he said. “When we announced the Olympiakos deal in Athens the car went on display in the club shop and resulted in a massive increase in the number of visitors. Fans want a piece of the action, they want not just to look at but to
touch the cars and take pride in the fact that they bear their team’s colours.” At the time of writing, AC Milan (Italy), Borussia Dortmund (Germany), Flamengo (Brazil), Corinthians (Brazil), Anderlecht (Belgium), PSV Eindhoven (Holland), Olympiakos (Greece), Porto (Portugal), FC Basel (Switzerland) and Galatasaray (Turkey) have confirmed that they will be represented on the grid in the inaugural season and a number of new signings are imminent. Each club car will be operated by an experienced professional racing team selected by Superleague Formula. Where possible, there will be local connections to help cement the relationship. “The cars are based on Formula 1 technology and each is essentially identical. This series is a test of drivers’ skill rather than superior technology and budgets. It’s taking motor racing back to its roots,” said Bancroft.
To this end the cars have been manufactured by Elan motorsports to the highest racing specifications and are powered by 4.2 litre V12 Menard engines, producing more than 750 brake horsepower. “The engines are fabulous. They don’t rev as highly as F1 engines, which means that they last longer, keeping operating costs down. But when you hear a Menard V12 you are in no doubt that it is a serious engine and that this is real, top level motorsport,” Bancroft said. Each race will be a weekend long event which, Bancroft says, is intended to be an all encompassing experience for spectators and sponsors alike. Saturday will be occupied by practice and qualifying, while Sunday is Race Day - with a difference. Superleague Formula will stage two races each Sunday, the second operating a reverse grid so that the car which finishes last in the first race is at the head of the grid for the second. “We think this is a great
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idea which gives everybody an opportunity to get among the points. In the second race points will be awarded not simply for a podium finish but for the number of competitors passed as cars make their way from the back of the grid. It is a format designed to create edge-of-the-seat tension and to absorb spectators and the television audience from beginning to end. “The important thing is that a Superleague Formula weekend will be a hugely memorable experience. It will be a whole weekend of fun,” Bancroft said. “We will operate an Open Paddock policy to allow fans to get close to the cars, meet the drivers and really feel part of the event. There will be music, entertainment, special programming on big screens around the circuit and a whole range of football activities, which reflect what the series is all about.” Significantly, fans and the guests of sponsors will be able to get a real flavour of the adrenalin rush that is top quality motorsport by taking a trip around the circuit in one of three three-seater race cars which will be on duty at every event. The series is designed to appeal to football and motor racing fans of both genders in the 18-40 age group and Bancroft and his colleagues believe that its glamour may help introduce new fans to motorsport and help recover some of those who have drifted away from motorsport in recent years. “We are certain we will have a significant audience because football fans will always be interested in their sport and follow their club. Our core audience may well come from those who are already interested in both football and motor racing, but we are certain that the club connections will create a whole new fan base who may well go on to take an interest in other motorsports,” he said. “In 2005 we conducted 10 focus groups among the fans of 10 leading European clubs and asked whether they would support the
idea of their club competing in Superleague Formula. The concept received nearly 100 per cent support. This has been reinforced by the comments left by fans from all around the world on our blog which, up to today’s date, has received over 400,000 visitors since its launch in April 2007. “And the clubs themselves can see a variety of reasons to get involved. At a time when revenues from overseas markets are particularly important, the series will provide a positive brand showcase all around the world. It will also provide a new channel through which to engage and communicate with their fan base, an opportunity to work with new sponsors and – as each club will receive a share of profits – a new revenue stream. “In short, we believe we have the right product for the right market at exactly the right time. We are taking the passion and emotion behind two sports and creating something really special, a new sports property based on entertainment and positive fan experiences. Our series will be very media friendly and will offer fantastic value to all of its commercial partners and broadcasters.” Superleague Formula is working with sports marketing giant Havas Sports to develop its sponsorship proposition and will offer a package of category specific series and broadcast partnerships as well as car sponsorships. “The two-race format of our events will ensure maximum exposure for every competing car, rather than simply those which are among the race leaders,” Bancroft explains. “That helps make car sponsorship even more attractive. They will first be offered to existing club sponsors before a broader market. In most cases external sponsors will not be accepted if they clash with either the main club shirt or team kit sponsors. “The work we have done to date suggests that club sponsors see this as an exciting and effective means of activating their relationship with the club in
new, interesting, exciting ways. It certainly creates a range of new opportunities.” There is a palpable air of excitement around Superleague Formula and its participating clubs as its debut season approaches. With new club signings on the horizon and tremendous support from those already on the grid, the team at the Barcelona headquarters is already planning for the future. “Our plan is to increase the number of races significantly
over the coming seasons, with up to four outside Europe. Year by year we aim to add new events in important territories to create a truly global series which reflects the aims and ambitions of the clubs and their sponsors alike.” They are ambitious plans but the rapturous reception Superleague Formula has already received from Dortmund to Athens suggests they are on the right track. Who was it who said that two into one doesn’t go?
READY TO RACE
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BUILding Success ON INNOVATION Superleague Formula is built on innovation and a realistic approach to the broadcast and sponsorship markets, explains President and CEO Alex Andreu. The man responsible for driving the Superleague Formula business believes that there has never been a better time to launch such an innovative property on the world sports stage. And as a highly experienced sports marketer who has worked on a range of major properties including the Olympic Games, FINA World Championships, Spanish Football League and top ski championships, Superleague Formula President and CEO Alex Andreu knows that innovation in sport pays massive dividends. Now Andreu wants to create a similar revolution with Superleague Formula, a project which has been close to his heart for years. He believes that the interest of sponsors and broadcast partners alike will be well served by a high powered series which comes with a ready-made fan base. “The feedback from sponsors has been very positive from all of them. Our projection is that 60-70 per cent of the car sponsors will come from the clubs. “The major clubs have many sponsors yet people only recall the names on the shirts and the kit manufacturers. Clubs may have 20-30 sponsors who are not widely associated with the club. They only appear on rotating boards and on the panels behind players and managers being interviewed. As sponsors of the car they will, for the first time, actually be part of the real thing, touching the colours of the clubs. This is tremendous added value for them and that is why we are generating quite a lot of interest,” he said. Delivering value and return on investment are at the heart of the Superleague Formula proposition. “We think the pricing in the market is very competitive because we are the new boys in town and although we think we have a very good concept, we are conservative.
Driving force... Alex Andreu, President and CEO of Superleague Formula
There is just one rule for us generating return on investment for sponsors. “When we can prove that the TV audience and awareness is growing, we can only grow with that. We will never price above the value presented by the TV audience. “We need three to four main event sponsors, like the Champions League, less means more. They will be present at all races and on all podiums and we will rotate them as race sponsors. That makes for a coherent commercial approach. It will give them the opportunity to engage with fans before, during and after the race and provide brand awareness. It is a very integrated marketing package as we will be offering sponsors the possibility of being on the car, at the circuit, on screen and activating in many different ways.” “In the TV agreements, we are negotiating we are making arrangements to take airtime in kind, which we will pass on to our sponsors so they can be on screen during the race broadcast,” he said. The series’ approach to
negotiating television deals also appears grounded and realistic. “Five years ago there may not have been enough media space for such a project, but digital TV has opened new doors. These broadcasters need good content in prime time and, as a result, we have had an incredible response. “We are not generally going to the top three networks in each country because it would be unrealistic to imagine that we could immediately deliver the audiences they need to maintain advertising rates. However, we are tailor made for other networks. It is a new product that they can afford and which they can help grow and then share in the upside. “We don’t want the money now. We want to build the numbers, the audience and the awareness to consolidate the product. Money will come when we have consolidated.” Andreu is confident that more major names from European and world football will sign to the series ahead of its August debut, but is realistic about the hurdles to be negotiated when discussing
the project with some of the very biggest names in the sport. “Understandably some of the big clubs are very protective of their brands,” he said. “After all, they have been investing in them for the last 100 years and they have been very successful. They have to believe that we will be guardians of their brands in a good way. We are very conscious of these issues and have taken them into consideration. “The big clubs want to take more time and we will go with them step by step. We have done the research and that tells us that their fans want it. “We will have the major clubs from the big markets because the established rivalry is a big plus for us. We will start with 18-20 clubs and could go up to 26 or 28 by year five. “We are already having clubs call us from the Middle East, Brazil and elsewhere. They want to take part, but we will select them on a very strategic commercial basis,” he said. “Asia is a major part of our business plan. We think we have to start from Europe and then expand from year two or three. China and Japan are also key markets. “South America is important because there is an existing passion for motor racing and, in the same way, the Southern part of the US is important because there are 50 million Spanish speaking people there. They are already fans; you just have to give them something new to draw their attention.” So how will Andreu measure the success of the venture in its first year? “I want to see progress on all fronts,” he said. “That means good crowds at the events themselves, a growing television audience and sponsors who can see a significant and growing return on their investment and who want to share in our success.”
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TAKING SUPERLEAGUE FORMULA TO THE WORLD Taking Superleague Formula to the world will demand a sophisticated broadcast operation built by learning the lessons from many other world-class sporting events down the years. Heading the broadcast team is Nicolas Duchoud, who joined Superleague Formula from the America’s Cup management team in Valencia, an operation which won widespread praise for its broadcast innovation. “The quality of the television coverage is vital to the success of Superleague Formula and we are creating a TV operation to
ensure that we can maintain the required consistency and quality of the output at every Grand Prix,” explained Duchoud. “We are currently in the process of appointing the specialist suppliers who will operate under the Superleague Formula TV umbrella. “Superleague Formula must impress as a new boy on an increasingly crowded sporting block, and it is duty bound to deliver a product which meets the quality expectations of its partner Football Clubs. “Our aim is to provide a technically excellent service with
the flexibility required to deliver the pictures our broadcaster partners want before, during and after every race.” The SF TV team will produce either a 26 or 52 minute highlights package for transmission on the evening of each race. This will capture the stories, colour and drama from right across the race weekend. A one-off programme focusing on the development of the Superleague Formula concept, the launch of the club cars and the manufacture of the cars and their V12 engines is also planned. Distribution negotiations are at
an advanced stage, according to Duchoud. “We are taking a traditional but aggressive approach to approaching the marketplace. As a new international event supported by strong brands we want to be seen, not to hide. As a result we are primarily looking at free-to-air platforms and broadcasters who look for a refreshing proposition and want to build a new audience. “We are confident we can deliver a great event with great production but we are realistic enough to understand that we have to be reasonable and patient in our approach and expectations.”
SPONSORSHIP FOCUS ON ROI Superleague Formula is working hand-in-hand with Havas Sport, the sports marketing division of one of the world’s largest integrated marketing and communications companies, to develop its commercial programme and take it to the world’s leading brands. Alberto Agusti, head of Havas Sport in Spain, takes an extremely positive approach to the task and the prospects for success. “Everyday we are asked by brands whether there are new and
different properties which they can work with,” he said. “This is a very new and exciting product which brings together great cars and the top clubs in the world to combine the passion for football and motorsport which creates a platform for brands which has advantages over other forms of motor racing or events.” Superleague Formula will offer sponsors opportunities to become involved at a number of different levels. “Existing club sponsors will have
the first option to take space on the cars but, after that, they will be open to other brands so long as they do not compete with club sponsors. “We are also selling a number (four to five) main event sponsors. “We believe that this range of packages, together with the fantastic activation opportunities which can be created around the Race days themselves, the worldclass broadcast coverage and the two race formula which will ensure maximum coverage for all of the
cars, add up to a very serious option for companies and brands which want to be in at the beginning of something new and take advantage of the passion for these two great sports. “There will be a comprehensive range of commercial packages which will be effective but competitively priced compared to other international properties,” concludes Agusti,” and I certainly believe that the commercial programme will be a great success.”
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Gearing Up For The Beautiful Race
Superleague Formula is a completely new global Championship and sports marketing product, with the potential to generate strong revenues and growth. With event, team, broadcast and club sponsorship packages available, we are offering partner brands a unique platform and outstanding opportunity to engage with a worldwide audience.
For more information on both our wide range of fully integrated rights packages and sponsorship opportunities contact: Jonathan Bancroft SF Commercial Director jonathan.bancroft@ superleagueformula.com +34 93 368 4104
superleagueformula.com