The Sports Dream Society starting here now in NZ and then the World

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The Sports Dream Society starting here now in NZ
and then the World

• Sports in
• (Mega) Sports Event Context- Theoretical
  perspectives
• observed and interlinked by
• Troels Troelsen, Associate professor
• SMAC Sports Management Center
• CBS Copenhagen Business School

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Sport as an Industry

• The sports sector counts for more than 10 of the
  Danish consumption after taxes and the basic
  living expenses the biggest of the experience
  sector.
• The consumption of sports products grow faster
  than any other industry or product (except the
  computer game industry)
• The income elasticity is positive (1,5 to 2)
• Mega Sports Events increases the GDP and branding
  for a country/ region more than any plan for
  industrial development. Sports import and export
  are huge.
• The impact on health and healthy living is big
• The democratic values and integration are
  important.

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The industry of professional sports and events
(main topics and focuses for SMAC at CBS).

• Mega Sports Events as a national nexus for
  economic growth, development, change and
  branding.
• Competitive balance and how to make leagues and
  the sports industry profitable.
• Dream society in a sports context
• Sports Marketing, sponsoring, partnerships and
  how to optimize the value of sports sponsorships.
• Networks and hype industries.
• Sports finance, analyzing cash flows, facility
  planning and financing etc.

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Theories and Methologies to analyse the sports
industry

• Sports as a a product, W.NealeCompetitive
  balance, league monopoly, quasi rent for athletes
• Sports as a network The interdependence and
  relationship between the stakeholders, how to
  organize sports
• Sports as a temporary nexus / hype industry /
  eventSports events in all aspects.
• Sports in relation to marketing.Sponsoring and
  partnering in sportsDream Society Theory

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Sports - what is so Special ?

• The Quarterly Journal of Economics, February
  1964. Walter C. Neale
• First time sport was analyzed using economic
  models in a A-journal for economic theory
• The Peculiar Economics of Professional Sports, a
  Contribution to the Theory of the Firm in
  Sporting Competition and in Market Competition.

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Sports Knowing the Product

• The product of sports is competition.Loyal
  customers moneyAnd the competitive balance is
  a measurement of the competition The league
  organization delivers the product.
• Sports is a joint productMany feelings, ups and
  downs from watching the gamesRivalry towards
  other clubsHeroes, bad guys and
  celebritiesGiving identity to all
  stakeholdersNetworking worksA joint product -
  delivered by many independent parties (unusual)
  Network producteverybody adds value to
  everybody

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A fast-track view Sports World vs Business
World
Sports World
Business World
Eliminate
Stimulate
Activate
Sell
Top Line
Bottom Line
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Focus is growth for the entire network
surrounding the pitch

• All factors below must increase all the time.
• Growth is a big must and can newer be enough!

Owners Members
Spectators
Media
Fans
Sponsors
Product
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Fan Value or Shareholders Value

• Is profit the goal for a sports organization?
• What might be more important ?

Financial success
Sports related success
or
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The Louis-Schmelling Paradox

• The stronger the contender the better the product
  and the bigger profit (opposite to traditional
  industries)
• The stronger a team, the less interesting
  competition. (Oh Lord, make us good, but not too
  good).
• Monopoly or a very dominant position for a team
  or athlete is unprofitable.

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• Troels Troelsen, associate professor at CBSChair
  of SMAC Sports Management Center of CBSVisiting
  lecturer at LaTrobe Melbourne, Oregon University,
  Lessius Business School, Malmo University, FIFA
  MBA-education in Sports Economics, Competitive
  Balance and Mega Sports Events.Chairman of the
  Academic Board of TSE
• Editorial Board of Journal of Int. Sports
  Finance.Cost Benefit Analyses for The Ministry
  of CultureCompetitive Balance Analysis (my
  expertice)IAAF Marketing Prom. Committee
  (ex-)Danish Olympic Committee (DIF)
  (ex-)President for The Danish Athletic
  Federation (ex-)Twice Worlds Master gold, 50
  danish championships,
• 15 years of management experience. Chairman of
  many companies. Freedom established through
  life-long playing all sorts of sports and
  economically from real estate.

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Experience economy

• Feelings and values on purpose created in your
  head from the experience industry. Sports,
  music, film, theatre, fiction et al
• Occasionally organized as an event
• Feelings and values such as Challenge,
  Togetherness, Who-am-I (identity), Piece of Mind,
  Care Conviction.

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Experience economy productsFrom the
Dream-Society Theory

• Adventure Thrill and excitement (including
  adrenaline, violence and drugs)
• Togetherness Tribal values, behavior and
  activitiesCommon history, icons and heroes
  (congruence in who/what to love and hate)
• WHO-AM-IPersonal Identity or brand Who am
  IExpressing signatures from Winner-loser,
  narcissist, team player, fan, convicted, engaged
  (surrounding products and activities)

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• Peace of mindUnderstanding life inside
  yourselfSolitude, satisfaction and
  meditation.(well being, worked/stressed-out,
  body-sense, endo-morphine, coaching)
• Conviction and careUnderstanding life outside
  yourself(holism, solidarity, religion et al )

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Experience economy ?

• Architecture Too much tangible products
• Fashion Tangible and subjective
• Design Tangible and subjective

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Sports as the hallmark industry in the experience
economy

• The Dream Society will be the 5th techno-society
  following theHunter-Gathering society
  -10.000BCAgricultural Society -10.000 BC -
  1750Industrial Society 1750
  1955Information Society 1955 2010Dream
  Society Now-

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Facts / fictions

• In the combination of industrialism and
  information the material wealth has increased
  20-25 per decade or double for each generation.
• Science is directed towards non-materialistic and
  non-scientific values
• Storytellers and heroes will be the most
  important persons

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Key Trends

• Human senses automated and robots take over
  further increase in economic freedom
• Products must tell a story as well and be part of
  your personality.Blue jeans are not to cover
  your bodyFree-range hens eggs is to nurture your
  feelings not you!
• In the future people will buy products not for
  their material but spiritual needs

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• The green / affluent / religious .. Society will
  grow because of the change in values
• Work will turn into play and leisure time and
  work will be integrated
• The employee will produce creative non
  materialistic products
• The industrial period has been productive,
  rational, scientific and cold.
• The dream society will be balanced, kind to the
  environments and with more happiness.
• The servants will be robots and other persons
  time will be scarce.

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Sports Activities

• Mega Sports Events needs a break down in separate
  activities.
• A Major League needs of break down in separate
  activities.
• Sports activities might be(when breaking down
  on activities a method might be the smallest
  unit to sponsor)A regional eventA major event
  (CWG, OG, WC,..)A city marathonA sports club
  and its activitiesA regional championship

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A Market Segmentation Approach
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The value of an Active and Successful Sporting
Nation (England, 10xNZ))
Liam Donaldson - Chief Medical Officer
The evidence is compelling. Cost of physical
inactivity in England estimated at 8.2 billion
per year Obesity costs an additional 2.5 billion
per year
At least five a week DH 2004
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Stakeholders in a City Matathon(not one of the
big-5)

• The elite runners
• The ambitious runners
• All other runners
• The organizers
• The volenteers
• The fans and spectators
• The beneficiaries (charity ..)
• The media complex
• The sponsors
• The community (politician, health, et al)
• The suppliers
• The accomodation industry et al

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Sports Dream Society Elements
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Adventure

• Sports activities producing stories of challenge,
  success and failure
• Extreme winners and losers
• (FC Barcelona and the Nepalese national
  team/Ernie the Eagle/Jamaican bob sleigh team)
• Entertainment and extreme sports for the masses
• (mountaineering/climbing, scuba diving,
  parachuting, rafting, bungee jumping etc.)
• Extreme situations and challenges
• (TV-excitement, life-and-death situations,
  reality TV)
• The challenge is essential
• personal challenge (I can do it)
• professional challenge (gold)
• Entertainment challenge (reality TV
  ,blod-sweat-tears)
• To the limits legal / cheating / doping / body/
  tribe)

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Adventure- delivered by a city marathon
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Togetherness Sports Dream Society Market Places

• Strong group ties due to sports
• Team sports Participation an any level
• World University Games Participation
• Team based spectatorship (Lakers, ManU ..)
• Sports travelling and event tourism (OG)
• Sports and adventure tourism
• Just do it in any aspect
• More .

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Togetherness- delivered by a city marathon
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Who-Am-I

• Personal identity a any levelinner level (nA
  need of achievement, other level (winning, nA,
  admiration, winning over others, be seen,
• The body as your jewel (narcissism)
• Just be somebody
• Signals being you, you being signals
• Identity through the sport you do (Para
  shooting), sports merchandise (expensive Nikes),
  the sports you watch (NFL), the heroes
  (youngsters WWC)
• ET AL socio psychological research, NMB (not my
  ballgame)

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Who-Am-I Sports Dream Society Market Places

• Strong group ties due to sports
• Team sports Participation an any level
• World University Games Participation
• Team based spectatorship (Lakers, ManU
  ..)Fanatic team or athlete followers
• Sports traveling and event tourism (OG)
• Sports and adventure tourism
• Just do it in any aspect
• Sport spectator products (sepak takrow, immensely
  popular in Thailand and Malaysia)
• More .

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Who-Am-I delivered by a city marathon
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Peace of Mind

• Peace of mind is bought when people are brought
  back to the good old times.
• The press covering the history, the development,
  the great former athletes et al.
• History, memories, Hall of Fame, records.
• Sports tradition, gentlemen of sports, rules,

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Piece of Mind Sports Dream Society Market Places

• Sports Museums
• Venues and events celebrating former sports icons
• Films (The Golden Mile, )
• Father2son seats and season cards
• Wimbledon traditions
• Sport tourism (the British Lions Rugby Union
  tour)
• Membership spectator products (club, corporate
  hospitality)

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Peace of Mind- delivered by a city marathon
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Conviction and Care

• To believe in something
• Corporate Social Responsibility
• Sport organizations offer opportunities for fans
  to volunteer in organizing events etc. The fans
  gets the opportunity to show they care
• Sports for Charity (runs, activities, Barca for
  UN,..)
• The vision and mission for the Olympic Games and
  the Olympic Athlete Ouch

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Conviction and Care Sports Dream Society Market
Places

• Para Olympics and sports for disabled
• Team-based volunteerism (domestic teams
• Companies like Nike also have to think about
  their social image. The Sweat Shop case
• Olympic Solidarity, NGOs, Red Cross and Salvation
  Army operate in this market selling opportunities
  for people to show they care
• International event-based volunteerism
• Ethnically based teams
• Values expressed by clubs, icons et al
• Culturally specific convictions sport sponsorship

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Conviction and Care delivered by a city marathon