Liverpool University presentation V2.ppt

AFRICAN FOOTBALL

CHANGING THE GAMEA Presentation to the University

of Liverpool Sports MBA program 13/12/12

Gary Rathbone

AFRICA: THE PERCEIVED VIEW“Never mention state inefficiencies, infrastructural

mayhem, proliferating parastatal behemoths,

repetitive government disasters, massive

institutional dysfunction, energy outages, failed or

failing states which are only exceptions proving

your prescient economic rule. Remember, coups

d'états are passé, last century's blip on the screen.

Ignore contemporary kleptocrats in Armani suits

with entourages of patronage. They reflect ancien

regimes.”

Duncan Clarke – author of Darkness to Destiny: Africa’s Future, in the blog ‘Africa: How to be an Expert’ , The Guardian Africa Network Series website.

AFRICAN FOOTBALL: THE SOCIAL VIEW

Football emerges as central part of social life in modern African society.

The only game in town - the rise of local clubs during the 60s and 70s.

Football becomes a useful political tool - football as a stepping stone to political power.

Football and politics- the national team as a symbol of the leader's power and standing.

As a result, football becomes an integral part of social and political life by the end of the 70's.

Copyright Gary Rathbone 2012

AFRICAN FOOTBALL: THE ECONOMIC VIEW The Aid economy – no resources for sport and no

resources for media. Corruption and bad governance leave African

economies floundering. The emergence of the ‘Un-civil' societies - everyone

for themselves. Limited resources and zero investment in infrastrure

beyond short term needs of the ruling parties. War, instability and famine become the key

characteristics of the continent. Copyright Gary Rathbone 2012

AFRICAN FOOTBALL: THE POLITICAL VIEW Government has been the sole investor or patron

of football since it’s establishment in Africa. This means that the game is hostage to the

political needs of the ruling parties. For administrators, the game becomes a useful

way to get money from the government - there is almost no investment in the sport itself.

As a result, the standard of play and the existing facilities available to the game deteriorate…

…and crowd attendance drops substantially.Copyright Gary Rathbone 2012

AFRICAN FOOTBALL: THE HISTORICAL VIEW

Historical roots are deep - the game has been part of the African experience for over a century.

Historic club rivalries: Al Ahly v Zamalek (Egypt) Asante Kotoko v Hearts of Oak (Ghana) Gor Mahia v AFC Leopards (Kenya) Orlando Pirates v Kaizer Chiefs (South Africa) TP Mazembe v AS Vita (DRC) ASEC Mimosa v Africa Sport (Ivory Coast) Copyright Gary Rathbone

2012

AFRICAN FOOTBALL: THE HISTORICAL VIEW

National team successes Egypt - first African team to feature at a World Cup (1934). Tunisia – first team to win a World Cup match (1978 beat

Mexico 3-1). Cameroon – 1990 became the first team to reach the

quarterfinals of a World Cup (a feat matched by Senegal in 2002).

Nigeria (1994 & 1998) and Ghana (2006 & 2010)are the only teams to reach the last 16 twice.

Egypt (6),Ghana (4) and Cameroon (4) are the most successful teams in the African Nations Cup.


AFRICAN FOOTBALL STRUCTURES Confederation of African Football:

Tournaments - AFCON, Champions League and CAF Cup, CECAFA

Key leagues and general structures: South Africa, Kenya, Nigeria, Egypt, Morocco,

Algeria, Ghana, Zambia. Differences between them (FA and league

splits) and government involvement.Copyright Gary Rathbone 2012

THE RISE OF THE AFRICAN SUPERSTARS

Abedi Pele in France George Weah in Italy and France Tony Yeboah in Germany and England Daniel Amokachi in England Sunday Oliseh and Victor Ikpeba in Germany Samuel Eto’o in Spain Nwankwo Kanu and Jay Jay Okocha in England Michael Essien and Didier Drogba in England


FOOTBALL ON TV: EUROPE COMES TO AFRICA Up until the 1990s, very little coverage of football (or any sport) on TV. What coverage there was, was of poor quality. Most countries relied on a single terrestrial – government owned –

broadcast network. By mid 1990’s, satellite TV from South Africa (DStv) had started

broadcasting across the continent. DStv sports channel Supersport held the rights to a range of top

European football leagues including recently formed EPL. Strong marketing, coupled with a decline in quality of the local

leagues, saw the EPL completely capture the imagination of African football fans.

By the early 2000’s, the EPL had become the dominant league in Africa and the driving force in all sports media – TV, print and even radio.


AFRICAN FOOTBALL: THE CURRENT VIEW A new generation of football fan is emerging –

more engaged with the game through the media and less through traditional social networks.

Existing infrastructure is still in a bad way: North Africa South Africa Ghana

Corruption is still endemic. The game continues to be marked by bad

management and uncertainty. Copyright Gary Rathbone 2012

AFRICAN FOOTBALL: THE CURRENT VIEW Move by leagues to breakaway from their FA’s to

form independent, business-minded entities: Kenya South Africa Uganda

Some FA’s creating semi-autonomous league bodies to make the leagues more efficient: Ghana Zambia

The Role of CAF & FIFA Copyright Gary Rathbone 2012

THE ROLE OF SUPERSPORT AND PAY TV Having benefited so much from broadcasting the

EPL and other European leagues into Africa, Pay TV DStv’s Supersport network took the step of acquiring rights to local leagues in their key territories.

This move was partly in response to the launch of new rival Pay TV networks GTV (East and southern Africa) and HiTV (Nigeria) who outbid Supersport to acquire the key EPL rights.

GTV also moved to acquire the rights for the Ugandan and Tanzanian leagues as well as the CECAFA regional tournament. Copyright Gary Rathbone

2012

THE ROLE OF SUPERSPORT AND PAY TV For the first time, football had become a competitive

part of the media landscape. In 2004, Supersport faced it’s first challenge to the EPL

rights, but still won the bid for the entire sub-Saharan African region with $19m.

In beating Supersport to the EPL rights in 2007, GTV and HiTV paid over $80m collectively.

They also forced a split in the market, with Africa being divided up into three blocks – South Africa, Nigeria and the Rest of Africa.

In 2010, Supersport won all the EPL rights back for all sub-Saharan territories at a cost of over $150m.Copyright Gary Rathbone

2012

SUPERSPORT & LOCAL FOOTBALL In 2006, Supersport acquired the broadcast rights to

the South African (PSL) and Nigerian (NPL) leagues. At the end of 2007, they acquired the broadcast rights

to the Kenyan (KPL) and Zambian (ZSL) leagues. In 2007 they also acquired the rights to the top three

Angolan teams – Primeiro Augusto, Petro Atletico and Interclube

In 2011 they acquired the rights to the Ugandan (USL) and Ghanaian (GPL) leagues.

In 2012, they acquired the rights to the Tanzanian League (TPL).


SUPERSPORT & LOCAL FOOTBALL


NIGERIA KENYA/E. AFRICA ZAMBIA ANGOLA

3 OB Van’s 2 OB Van’s OB Van OB Van

Live Studio Facilities Live Studio Facilities Local Commentary Local Commentary

Local Commentary Local Commentary Local Presentation Production Training Programs

Local Presentation Local Presentation Magazine shows with local presenters Magazine shows

with local presenters

Magazine shows with local presenters

Magazine shows with local presenters

Production Training Programs Production Training

Programs

Production Training Programs

Production Training Programs

SUPERSPORT: THE SUCCESS OF THE KPL Dramatic increase in fans at stadiums. Proper management of clubs and decent wages for

players has made league more competitive. League now attracts players from outside of Kenya. Huge increase in media coverage of the KPL – equal

to, and occasionally greater than, media coverage of the European leagues

Advertising Value Equivalent (AVE) of the KPL in 2010 valued at US$ 86 million – nearly double that of the nearest Kenyan corporate enterprise.

Major increase of sponsorship money into the league.Copyright Gary Rathbone 2012

AFRICAN FOOTBALL: THE ROLE OF MEDIA

Africa boasts one of the fastest growing mobile markets in the world, and Africa's biggest mobile market is Nigeria.

There are currently over 700 million mobile phone users in Africa. Internet connectivity is expanding rapidly with more and more of

the continent now getting access to high speed internet links, driven by fibre optic cable expansion in East and West Africa.

This connectivity is mostly driven by the young, urban African middle class demographic, which is a core target market for sponsors in Africa.

African broadcasters will complete their digital migration process by 2015-16


AFRICA: TV, MOBILE & INTERNET


Updated Internet and mobile country info – Key Anglophone African territories

Country Population Urban Pop. Mobile Internet Facebook TV Households Botswana 2 100 000 61% 164% 167 200 215 000 140 000 Ethiopia 93 816 000 17% 20% 622 000 537 000 N/A Ghana 25 242 000 51% 80.5% 2 500 000 1 300 000 3 000 000 Kenya 43 013 000 22% 61.63% 10 500 000 1 400 000 4 000 000 Malawi 16 320 000 20% 30% 2 716 400 130 000 N/A Namibia 2 170 000 40% 109% 150 000 154 000 100 000 Nigeria 170 000 000 50% 63% 45 000 000 4 135 000 20 000 000 Rwanda 11 700 000 19% 55% 450 000 135 000 N/A South Africa 49 000 000 62% 127% 5 100 000 4 605 000 11 100 000 Tanzania 43 600 000 26% 62% 4 930 000 465 000 1 500 000 Sudan 36 787 000 40% 49% 4 200 000 N/A 2 400 000 Uganda 35 870 000 13% 55% 4 180 000 400 000 1 000 000 Zambia 14 310 000 36% 51% 883 000 217 500 N/A Zimbabwe 12 620 000 40% 72% 2 100 000 1 060 000 N/A Updated Internet and mobile country info: Key Francophone/Lusaphone sub-Saharan African territories

Country Population Urban Pop. Mobile Internet Facebook TV Households Benin 9 600 000 42% 71% 200 000 139 000 170 000 Cameroon 21 000 000 60% 49% 800 000 475 400 630 000 DRC 73 599 000 35% 17.21% 915 400 845 200 N/A Gabon 1 609 000 86% 136% 109 000 92 000 300 000 Ivory Coast 22 000 000 51% 71% 967 000 N/A 1 500 000 Madagascar 22 600 000 30% 47% 355 000 226 000 325 000 Mali 14 540 000 36% 98% 415 000 132 800 150 000 Senegal 12 970 000 42% 77% 1 990 000 670 000 1 000 000 Angola 18 000 000 59% 64% 819 000 362 000 500 000 Mozambique 23 500 000 40% 40% 980 000 204 000 4 400 000

AFRICA: THE EMERGING ECONOMIES 6 of the top 10 fastest growing economies in the

world are in Africa. “Consumer spending (in Africa) will be worth as

much as $1 trillion by 2020” – African Business Magazine, March 2012

Samsung is projecting to increase its Africa based profits five times to over $10 bn by 2015

US investment in Africa has grown from $11 bn in 2000 to $30 bn in 2011

70% of the African population will live in cities within the next 10 years Copyright Gary Rathbone

2012

AFRICAN FOOTBALL: SWOT ANALYSIS Strengths:

Historical pride and passionate fans. Football’s popularity brings people together. Huge reservoir of talent.

Weaknesses: Poor infrastructure. Corruption and mismanagement is rife.

Opportunities: Expansion of modern media technology. Rising middle class can drive fans back to local football. Digital migration will create more TV opportunities.

Threats: At the mercy of the political class – failed elections will undermine

any further infrastructure development and economic growth.Copyright Gary Rathbone 2012

AFRICAN FOOTBALL: THE WAY FORWARD The entry of Pay TV into the local football market has

changed the way people engage with their local leagues. Supersport has proved that investment in local leagues

can work. Better infrastructure and management will make local

leagues attractive to fans and sponsors. With the digital migration, more broadcasters will require

more content – local football has an opportunity to benefit from this like never before.

The business environment in Africa is improving rapidly – which means there is a massive opportunity for business to engage with local sport in the next few years.


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Liverpool University presentation V2.ppt