the power of sport

the business of sport

©9/09 www.isfm.com.au

peter holmes à courtseptember 9, 2009

the power of sportthe business of sport is using the

the power of sportlive human professional games

the power of sport

not the box office clout, the tv ratings or the value of our assets

the power of sport to buildto transform- people- communities- ideas

the power of sport in Australia

there are global similarities, but like doing any business in another country, the cultural differences create a unique environment

the power of sport in Australia uniquely ours

community groundedindigenous relevance

we develop world champions from swimming to pole vault, we play four codes of football (including one we made up ourselves) and we staged the best Olympics ever (so they told us).

our structure makes us very different: the US has 60 cities with a catchment of more than 1 million inhabitants, we have 4, and an average of 10 major professional teams in each of those.

our structure makes us very different: in the US there are 2.5 million people per major professional sports team, we have less than 400,000 for every team.

our structure makes us very different: the US has 100 million homes with pay TV, Australia has 1.3 million.

our structure makes us very different: the average contracted NFL footballer player earn 50x the average American worker, MLB baseballer 70x, NBA basketballer higher still.

the average rugby league player here earns 2.2x the average Australian wage, a soccer player in A-League a bit less, an Aussie rules player a bit more.©9/09 www.isfm.com.au

our structure makes us very different: as a result our elite athletes are elite in their performance, but not segregated from our society.

and we touch the significant issues of the nation: and no more importantly than our indigenous relevance and ability to make an impact there.

from 2006 to 2008 I led a small, dedicated team that turned aroundthe Rabbitohs. What we stated has continued...

...thanks to the commitment of management, an independent board, coaching staff and players and of course the unstoppable energy and incredible creativity of co-owner, Russell Crowe

the Rabbitohs play rugby league, and have won a record 20 first-grade premierships since their foundation in 1908

photograph of the 1908 premiership winning team

unfortunately, they are all in black and white.

in 1999, after nearly 3 decades of underperformance, the National Rugby League excluded the Rabbitohs from the competition. They did not play in the 2000 or 2001 seasons.

in July 2001, a federal court decision found that the Rabbitohs were wrongfully excluded, and the club was reinstated in 2002.

in two marches through the streets of Sydney 100,000 people protested the decision

date of EGM:location:number of speeches:number of eligible voters:votes required:

march 19 2006Sydney Olympic Stadium42 over 5 hours39422957 to carry motion (75%)

however by 2006 the team was running last and was financially fragile and club’s voting members were asked to approve a proposal to sell control of the club to Russell Crowe and I:

date of EGM:location:number of speeches:number of eligible voters:votes required:votes received:

march 19 2006Sydney Olympic Stadium42 over 5 hours39422957 to carry motion (75%)2988 (75.8%)

however by 2006 the team was running last and was financially fragile and club’s voting members were asked to approve a proposal to sell control of the club to Russell Crowe and I:

In 2007, the Rabbitohs qualified for the semi finals for the first time in 18 years

Membership has risen from 8,000 to 15,000

In 2007, the Rabbitohs qualified for the semi finals for the first time in 18 years

Membership has risen from 8,000 to 15,000

In 2009, the Rabbitohs will, for the first time, make a small profit

Redfern Oval 2006

in 2006 the Rabbitohs, they had the worst training facilities in professional sport in Australia, and they were locked out of their spiritual home, Redfern Oval.

worse, the run down oval and grandstand was a nest for crime in the surrounding area

Redfern Oval 2008

in partnership with the City of Sydney, Redfern Oval is today a vibrant community asset with a state-of-the-art training facility, a playground for kids, skate ramp, basketball hoops, open from sunrise to sunset in the shared custody of the community and the Rabbitohs.

a physical manifestation of an open, transparent business, inviting rich participation appropriate for an increasingly digital age

sure there are times when the gates are closed for a ticketed event, such as this trial game earlier this year

Thebut even when you close the gates, we remain transparent

the days of building walled gardens are over

he has our merchandise on

she has a members cap on

Thebusinesses can give away a taste for free, and encourage greater interaction

established customersconsidering greater interaction

Thebusinesses can give away a taste for free, and encourage greater interaction

potential customers sampling the product

Thebusinesses can give away a taste for free, and encourage greater interaction and if your product is good enough, they will want to get closer

“sports don’t have to fear competition from other sports; we have to fear people sitting in a dark room listening to an ipod.“ Me, 2006

“sports don’t have to fear competition from other sports; we have to fear people sitting in a dark room listening to an ipod.“ Me, 2006 I was wrong.

Those benign ipods have morphed into dynamic, connected and networked audio visual devices, enabling incredible interaction with sports.

Digital is our friend. Our new bff.

I was wrong.

Those benign ipods have morphed into dynamic, connected and networked audio visual devices, enabling incredible interaction with sports.

Digital is our friend. Our new bff.

I was wrong.

Because we have something digital can never have:

we have live events that just happen.

we have live events that just happen.the more we have a digital lifethe more people crave human gatherings

and digital gives fans a multitude of new ways to interact with their game of choice

all team announce-ments emailed to fans at same time as media

all tickets (gate, train, parking) and concession offers on mobile screen

interact with big screen at the game, share experience w/ friends

video highlights sent to you because you were there to see it live

It works for big sports. (but is even more powerful for niche sports, who can’t get mainstream media coverage.)

video highlights sent to you because you were there to see it live

both/and the power of sport is that it is

both/and both tough and kind

both/and both tough and kindboth community focused and business-like

both/and both tough and kindboth community focused and business-likeBoth elite and inclusive

both/and both tough and kindboth community focused and business-likeBoth elite and inclusiveboth heritage and fresh

both/and both tough and kindboth community focused and business-likeBoth elite and inclusiveboth heritage and freshboth well planned and highly unpredictable

to win, you need big guys like this

capable of doing jobs like this

and you also need guys like this

to do jobs like this

and when kids can see this, in their school, in their community

and when kids can do this, in their school, in their community

and then get on a train to go see this:

that is the power of sport.

wearing the ribbon of our major sponsor’s charity our players...

Beau Championindigenouslocal junior

Issac Lukekiwi international

Jamie Simpsontwice recovered fromlymphatic cancer

partner with the Ovarian Cancer Research Foundation off-field

Jamie Simpsontwice recovered fromlymphatic cancer

and deliver with extraordinary feats on-field

that is the power of sport.

the power of sport in Australia bloody hard work

incredibly importantworth fighting fora lot of fun

the power of sport in Australia bloody hard work

incredibly importantworth fighting fora lot of fun.

the end. thank you.

dedicated to Mike Wrublewski 1946 – 2009

Michael Wrublewski was a pioneer of professional basketball in Sydney, a former director of ISFM and the founder of the Sydney Kings. Mike’s funeral was being held as I gave a version of this speech for the first time. This quotes is from one of his players, and speaks for itself:

“...we did over 660 school visits a year when Mike was in charge... and when the Kings folded two years ago they did just 20 school visits.”

The Sydney Kings went out of business in 2007, the year they had won their third consecutive national championship. Who said winning is everything in sport in Australia.

also dedicated to last weekend’s game...

the biggest winning margin over the Dragons since 1921.

Peter is the Executive Chairman of ISFM, a specialist sports industry consultancy, a director of Viocorp International, Australia’s leading internet video technology company, a director of Queensland Rail and the Barangaroo Delivery Authority, and since 2006 he has been the co-owner with Russell Crowe of the South Sydney Rabbitohs. Peter was Executive Chairman of the Club from mid-2006 to mid-2008. Previously Peter was CEO of the Australian Agricultural company, today the country’s largest cattle company. Peter took the 185 year old company public in 2001. Prior to that Peter founded and ran Back Row Productions, an international producer of theatrical productions, touring shows such as Australia’s highest grossing live theatrical show Tap Dogs, UK comic Eddie Izzard and Jerry Seinfeld, amongst a total of over 20 different productions in 300 cities and 20 countries. Peter was born in Perth, lived 14 years in the US and UK, and moved with his wife Divonne and two sets of twins to live in Sydney in 2000.Peter rides a bike and does the odd triathlon, both of which he does slowly.

peter holmes à court

www.rabbitohs.com.au/news/club-news/rabbitohs-2009-squad-announcemend.html

this presentation with audio at: www.viocorp.com/peterhac

examples of new ways – physical and digital – sport is reaching its customers:

A summary ISFM’s work on the redevelopment of Redfern Oval and adjacent commercial properties in conjunction with the major stakeholders including the City of Sydney Council, South Sydney Rabbitohs, South Sydney Leagues Club, and property developers Trivest. The completed project, and the adjoining park is considered a benchmark in community and elite sports integration.

Viocorp developed this site to create a broadcast model for the track cycling masters championship. The model demonstrated how high quality multi-camera coverage, produced efficiently (i.e., cheaply) could create multiple new revenue streams (organiser, participants, sponsors, syndication) and enable a small participation sport to reach its geographically diverse fan base.

The Rabbitohs broadcast “members-first” videos and release team news to their members at the same time (or before) the major media receives press releases. Importantly, while the quality of some videos is very high, some low cost videos of breaking news that is very relevant to hard core fans (not interesting at all to non fans and therefore the mainstream media) are the highest watched videos.

www.cyclingmasters.tv

www.isfm.com.au/projects_redfernoval.html

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