Business is Football
Football’s Virtuous Circle Investment
Revenues
Players
Success CONFIDENTIAL
To Be the Best, Invest in…
• • • • •
Best Best Best Best Best
Coaches & Technical Staff Players (Names & Entertainers) Commercial & Administrative Staff Infrastructural Facilities Commercial Partners & Investors CONFIDENTIAL
Revenue Sources
•
Centrally Generated Revenues
• Match-Day: Ticketing; Hospitality Etc • Merchandising, E-Commerce & Licensing: Products & Services • Media Rights (including TV, Internet, Mobile, Digital) • Sponsorship & Advertising CONFIDENTIAL
Determinants of Potential • • • • • •
Location Size & Quality of Supporter Base Competitions (Country, Continent, World) Facilities (Key: Stadium, Academy & Website) Product & Service Offering Brand Profile & Reach
CONFIDENTIAL
Revenue Enablers • • • • • • •
Win Consistently (especially at Home) Entertain (Match Day ‘Event’) Star Names (Glamour) Local Players (‘One of Us’) Community Focus (‘local’ club) Website (Global Reach) CRM Database
CONFIDENTIAL
India: Part of Vision Asia Project
On September 17, 2002, Asian Football Confederation launched a visionary project, which was in essence, a master plan that would serve to propel Asian football into the realms of excellence on the international arena.
CONFIDENTIAL
India: Part of Vision Asia Project
Vision Asia possesses six geographical zones – West Asia, South and Central Asia, East Asia, China and India. China and India were treated as an individual entity for action in the Vision Asia plan as both countries, by virtue of their huge population, presented an immense potential for progress to the top echelons of not just Asian, but international football. Vision India is the part of Vision Asia Project launched by AFC with a vision to prepare Asian countries in best possible football environment (infrastructure, administration, sports sciences, technical staff, etc.,) so that one day Asian team wins the FIFA World Cup. FIFA & AFC have a firm belief that Asia with 3.7 billion+ population has the potential to produce many world class football nations.
India: Part of Vision Asia Project Under Vision Asia project in each of the pilot project, 11 key elements of football will be developed so as to catch up with counterparts in Europe and the rest of the world. The eleven elements are:
National Association & Clubs Marketing Grassroots & Youth Coach Education Referees Sports Medicine Competitions Media Fans Futsal Women Soccer
AsiAn sCEnERiO ASIA South East Asia’s Japan, South Korea, China, West Asia’s Gulf States all made Rapid Development from Low-Base of Football Infrastructure & Ability. Presently, these countries have abilities to counter & challenge European & Latin American Nations. India & subcontinent Emerging … But Very Much Unplanned, Slow Developing Economy; Market base is 2nd biggest after China & rated One-Sixth of Worlds Population; But Has Huge Football Potential & Urgently Need To Develop World Class Soccer Infrastructure With Youth Development & Proper Scouting. CONFIDENTIAL
The National Team Team India: • FIFA & AFC Committed to Facilitating Development of Football in India & to Creating Strong Team India. • Success of National Team Fundamental to Success of Professional Club Football in India (& vice versa) • Adequate Space in Football Calendar for International Fixtures & Camps
CONFIDENTIAL
India: Interest & Support Growing Global Awareness of India: Increasing Audience & Popularity in India for FA Premier League etc Football Federations Looking to India: England, Germany, Portugal, Spain etc. Top European Clubs Looking to India: Arsenal, Manchester United, Chelsea, Barcelona, AC Milan, Liverpool, Bayern Munich Strong Support from FIFA & AFC, & ‘Football Family’ Bayern Munich v Mohun Bagan, Attendance +125,000
CONFIDENTIAL
Bayern Munich vs Mohun Bagan Illustrating the Potential of Indian Football
CONFIDENTIAL
India: Challenges Structural Issues: • Poor Infrastructure (Nationwide Investment Required) • Poor Technical (Coaching) Capability • Low Stock of Quality Indian Players In Senior National Squad. However India has huge talent pool, poor scouting is spoiling the Youth Talent & Development. More Residential Academies should come up at par with Global Standard in all the States of India. • Oil rich Gulf & South East Asian countries can look out for investments in India & Subcontinent areas, particularly where they can pull ROI from 4th or 5th years onward as well as can utilize the services of the youth players for their clubs on less investments, which became a huge burden for the global clubs.
CONFIDENTIAL
A New Era Process of Change has Started:
New Corporate Backed Teams: Jindal, Piramals etc. Investment in New Stadiums Investment in Residential Academies (All I-League clubs + Others) Investment in UEFA Pro Coaches Partnering Foreign Clubs to Access Expertise Strong Community Focus Greater Professionalism Competition Will Stimulate Overall Progress
CONFIDENTIAL
Forcing Higher Standards Regulatory Regime Will Impose Higher Standards: • • • • • • • •
FIFA Programmes & Investment AFC: Entry to AFC Champions League (Key) Vision India… execution is not up to the mark! Club Licensing Scheme Investment in New Stadium Investment in Academies Expert Technical Support More Direct Corporate Ownership/Involvement
CONFIDENTIAL
Indian Football: Opportunities
CONFIDENTIAL
Professional FC…an example Opportunity & Strategy: • • • • • • • •
Establish Club as Independent Legal Entity Build Stadium & Academy Partner with euro Club or Similar Other Develop World-Class Indian Players Generate Substantial Revenues Become Leading Club in Asia Build Global Football Brand Help Take India to FIFA World Cup Finals
CONFIDENTIAL
Professional FC: Global Brand Vehicle EMIRATES Football Stadium.
CONFIDENTIAL
Professional FC Key Factors: • • • •
Location: Football Culture & Infrastructure Location: Population, Prosperity, Growth Location: Local Economy (Size, Composition, Resilience) Branding: ‘City Name’ for Club; ‘Corporate Name’ for Stadium • Investment: Management; Players; Professional Club facilities; Stadium; Academy • Marketing: ‘Personalities’ (Heroes); Community-Connect; Fan-Addiction
CONFIDENTIAL
Academy Key Factors: ○ Essentially requires interested Investor/s for premier clubs in India. For last 100 years, nothing had been for soccer development in India & Sub-continent. ○ Academy (Ideally) Needs to be Attached to a FC ○ Long-Term Investment (Probable 3-5 Years Before Return) ○ Residential with World-Class Facilities (Valuable Asset) ○ Coaching Expertise & Selection of Scholars Critical ○ Significant Long-Term Profit Potential CONFIDENTIAL
Media & Football Electronic, Print, Digital & Social MEDIA and FOOTBALL are natural PARTNERS and these partnerships should be more & more to be explored but it is important for football always to remain in charge of these relationships. Ultimately, media needs football as much as global football needs media, if not more. MEDIA is used as a medium to attract more people to SOCCER, and so ensure that the image of the game as it appears to this potential new audience on media is a positive one. There exists an inter-dependence between football and the media which can make a healthy contribution to the sport, as long as the sport remains in control of its own destiny.
Social Responsibility GLOBAL Corporates and NGOs are finding themselves in the spotlight more than ever before. As a result, there is widespread interest in whether these concerns are sensitive to their social responsibility and behave with a sense of solidarity. FIFA considers its social responsibility to be far more than simply a matter of doing good. WORLD football’s governing body has defined a clear strategy regulating its pursuit of sustainable results in this domain, using football to build a better future. .
SportMARCOM Contact:
Suman Kalyan Dutta - Founder
Cell: +91(0) 9830014185 Email: s.k.dutta@outlook.com Skype: SportMARCOM