The Sports Business Round Up | 13.12.20

Ashwyn Lall
Ashwyn Lall
Dec 13, 2020

As the countdown to Christmas continues, here’s another Sports Business Round Up to keep you occupied! Tyson vs Jones Jr could be the highest PPV fight of 2020; the Bundesliga steps up to keep their game alive, and Paris 2024 aims to reach new audiences with a new sport introduced to the games. DAZN up their fan engagement strategy across Japan and the National Hockey League (NHL) explore new sponsorship opportunities. 

Tyson vs Jones Jr could become the highest-selling boxing event this year

According to the owner of Triller, Ryan Kavanaugh, Tyson vs Jones Jr could hit an all-year high of 1.6m PPV buys. The exhibition bout has approximately generated $80m across the US which has outsold UFC 251 and Wilder vs Fury 2. Tyson reportedly took home $10m with Jones Jr receiving $3m. 

Tyson v Jones Jr

 

US Influencer Jake Paul fought former NBA star Nate Robinson on the undercard, and the US personality reportedly contributed to 40-50% of PPV sales due to his popularity. Despite Paul being on the undercard, it’s fair to say the digital creator stole the show. 

A new wave of boxing culture is evolving which has seen the video-sharing service, Triller, team up with US rapper, Snoop Dogg, to create a celebrity boxing league entitled, ‘The Fight Club’. The series claims to invite digital influencers, actors, musicians, athletes from other sports and public figures to revolutionise the traditional sports landscape to be led by influencers. 

The Bundesliga adapt their TV Rights model to enhance equality

To support clubs with the financial deficit caused by COVID19, The German Football League (DFL) are adjusting their revenue distribution model for next seasons broadcasting rights. Currently, 70% of domestic rights income is shared related to recent performance. 

Bundesliga Sports Business

 

During the 21/22 and 22/23 season, 53% of the yearly fee ($1.4bn) will be split equally from Sky Deutschland and DAZN for clubs. However, this will drop to 50% for the following two seasons after 22/23. 

Over the next four seasons, revenue acquired through performance (1%+), youth development (4%+) and club interest (3%+) will rise as the equal share of TV Rights decrease. 

Breakdancing worms it’s way into the Paris 2024 games

It’s official; breakdancing makes it debut on the Olympic stage after the Tokyo Games have been delivered next summer. The International Olympic Committee (IOC) came to this decision to enhance the marketability of the game towards a younger audience, which is underpinned through also introducing skateboarding, sport climbing and surfing to the 2024 Olympics. 

Olympics sports business

 

Bringing ‘breaking’ to the games has been an idea since 2018, following the success from the 2018 Youth Olympics in Buenos Aires, Argentina. Paris 2024 aims to strive for gender equality by growing mixed-gender events from 18 to 22 while seeing a balanced participation rate between male and females. 

A revolutionary era for the Olympic Games will be embarked during Paris 2024 that champions sport for development through inclusion, diversity and equality. 

DAZN launch their first 5G consumer plan in Japan

Over-The-Top (OTT) service, DAZN, have increased their affiliation with telecoms firm, KDDI telecoms by offering 5G payment plans for Japanese consumers. KDDI mobile carrier AU’s customers can now access high-quality streams through DAZN if they have 5G-enabled handsets. The agreement also includes unlimited sports availability through a data tariff.

The comes soon from DAZN’s launch into over 200 territories and their announcement of a new football entertainment series, ‘The Yacbecchi stadium’ to promote original content across Japan. Their new 5G strategy will underpin the viewership experience through augmented reality, virtualisation and gamification, ultimately taking them another step in the right direction to become ‘the Netflix of Sports’. 

The NHL put their money where the mouth is, well, close enough to it… 

The National Hockey League (NHL) could explore sponsorship space on player helmets to boost commercial revenue. Votes on this proposal are expected to conclude in the upcoming weeks. 

NHL Sponsorship

 

The NHL putting sponsorship logos on helmets would be imitating other significant North American sports organisations, to discover additional revenue to recover for the COVID19 pandemic. The NHL produces 50% of its revenue from gate-associated sources, but this has changed due to the health crisis.  

Other sports properties that have followed include The National Basketball Association bringing in additional sleeve sponsorship opportunities on practice jerseys. Major League Soccer added sleeve and short logos throughout the ‘MLS is back’ tournament while Major League Baseball explores sponsorship placement on their uniforms and batting helmets. 

That’s another Sports Business Round Up wrapped up! Are you for or against the ‘influenca’ of boxing? How well equipped will German clubs with the new TV Rights model? Could Paris 2024 be the most diverse games yet? Could DAZN transfer their 5G initiative towards other territories and how lucrative will The NHL’s helmet sponsorship idea be for acquiring increased revenue? 

To read more from our insight series and previous Sports Business Round Ups click here.

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