Exploring the challenges faced by Premier League clubs outside the top six, the podcast discusses the commoditization of sponsorship, surplus stadium inventory, and the economic impact of relegation. It delves into topics such as adapting to the post-COVID era, unlocking the commercial potential of data, diversifying revenue streams, and transitioning to the new world of sports business.
52:00
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Premier League clubs struggle to create value due to commoditization and a saturated market, leading to a focus on low prices and reduced differentiation.
Clubs need to differentiate their data strategies by utilizing local data to engage with specific communities and attract sponsors who value unique audiences.
Leveraging data effectively can drive long-term value by personalizing experiences, developing new products, and diversifying revenue streams in football clubs.
Deep dives
The challenges of commoditization in sponsorship and inventory sales
Competition among football clubs for sponsorship and inventory sales has led to commoditization. Many Premier League clubs struggle to stand out as there is a huge supply of inventory. Not all clubs are able to sell out their front-of-shirt sponsorships. This has created a market where the lowest price wins and reduces the potential for clubs to create value.
The need for differentiation in data strategy
Clubs must differentiate their data strategies to avoid becoming part of the commoditized market. Instead of solely selling tickets and merchandise, clubs need to focus on the unique assets they possess. This could involve utilizing local data to engage with the community and cater to their specific interests and needs. By developing a clear vision that sets them apart, clubs can attract sponsors who are willing to pay more for access to these unique audiences.
The role of data in driving long-term value
Data is not a silver bullet solution. However, clubs should leverage data to understand their customers and drive long-term value. This involves shifting from a short-term sales mindset to a more strategic approach that considers the lifetime value of customers. By collecting and utilizing data effectively, clubs can personalize experiences, develop new products, and diversify revenue streams.
The importance of cultural change and curiosity
Successful transformation requires a cultural shift within football clubs. Unrealistic goals and an aversion to change often hinder progress. Clubs must embrace curiosity, think differently, and challenge traditional models. This includes exploring opportunities beyond the men's team, such as investing in women's football, which can attract different audiences and generate new sources of revenue.
Building a two-speed approach and embracing risk
Football clubs should adopt a two-speed approach. Firstly, they must optimize current revenue streams by improving customer experiences and leveraging their unique assets. Secondly, they need to explore new avenues by investing in long-term strategies and differentiated data strategies. Embracing experimentation and risk is vital for success in an ever-changing sports business landscape.
Every market has a top, middle and bottom. The Premier League is among a small global elite of sports rights holders which is doing just fine, thank you. Billions of dollars in media revenue chases must-see content. But even within the league, different business models apply. The elite 'top four, or six' are chasing European football, and with it an additional pot of TV money flowing from UEFA competitions. Then there's the rest. The clubs that exist outside that bubble, for whom life is harder, struggling to perform on the pitch on reduced budgets, while fighting off the cataclysmic economic shock that is relegation to the Championship. This is the Premier League's version of the squeezed middle, between the top six and the EFL. This podcast looks at the commercial options open to those clubs, with our guest Charlie Boss, Chief Commercial Officer of Southampton Football Club, which was relegated from the Premier League last season. Charlie joins Squeezed Middle regular Ben Wells, CEO of PTI Digital, the strategy and technology consultancy, who previously held senior commercial roles at Chelsea FC, Reading FC and Bath Rugby. See here for previous episodes of The Squeezed Middle.
This podcast is sponsored by Leaders Week London. Who could you be joining at Twickenham Stadium on October 18th and 19th? Across the Summit, over 1,800 of the most senior figures in the sport business will be there, from Amazon to the Premier League, adidas to Spotify. This is your opportunity to meet and rub-shoulders with executives from across the sport business ecosystem, to reconnect with old friends and reminisce about your past experiences from Leaders Weeks gone by. And as a listener to Unofficial Partner, you can get take advantage of a 15% discount on your Summit passes - just use UP15 at the point of purchase. Visit leadersinsport.com/UP for more information.
Unofficial Partner is the leading podcast for the business of sport. A mix of entertaining and thought provoking conversations with a who's who of the global industry. To join our community of listeners, sign up to the weekly UP Newsletter and follow us on Twitter and TikTok at @UnofficialPartner