As I write this week’s article, the UK Government has just announced its annual budget, outlining how they plan on spending the nation’s money.
One of the key announcements for the Sports sector was a £300m recovery package to help support clubs and federations in England. Given the large number of sports that will be going through financial hardships right now, how much money this actually means for each I am sure will be a contentious point.
Many federations and clubs have become reliant on the governments support at this time, as commercial/ticketing revenues have been decimated due to a lack of fans being allowed to attend events, and reduction of funds available from sponsors.
As we hopefully come out of this pandemic, government support will reduce and therefore the onus will be back on the organisations to look at how they drive revenue. Going back to conventional methods may solve part of the problem, however if companies are looking to harness new forms of income then Self-Funding Technology may hold the answer.
I have been talking to lots of great companies that sit in the space of "Self-Funding Technology (SFT)". For me, the right SFT products can be a game changer for clubs and federations. Whilst there may be some initial set-up costs required, it gives companies the ability to use Technology to create new revenue streams.
Figure 1 - Harnessing OTT platforms may provide sports clubs/federations additional revenue opportunities at this time
An example of this has been Sports following many other industries in looking at housing their content on OTT (Over The Top) platforms and streaming services. Harnessing the power of their brand to connect with their fans by creating content that they find engaging to watch i.e. Short form content for the younger audience. Thus, enabling views, and attracting sponsors who seek to promote their brands with complimenting digital assets.
Another area that has significant opportunities for SFT is fan engagement technology. I have seen many brilliant examples of technology products in the marketplace that offer additional services to fans to give them unique experiences through technology, whilst creating additional revenue streams for clubs.
Of course, with a heavily populated technology space, it isn’t as simple as just picking from a small list of products and running with one. The truly successful organisation will be the ones that take the time to assess and select the technology products that are best suited to meet with their organisational goals.
My role allows me to be constantly growing my understanding of the latest technology products that are available, and I work with some brilliant end clients all with differing end goals.
My goal is to provide Sports organisations with an impartial assessment of the technologies that they might want to utilise. Many of which are self-funding and provide high ROI.
Please get in touch with me at harbir@sportsxconsulting to learn more about how I could help your organisation on its Technology journey.