Growth markets, hot sports and the future of the NFL in London were some of the key issues discussed in a Global Sports Media panel during the ’12 Covington & Burling Sports Media & Technology conference. IMG Worldwide CEO Mike Dolan, Perform co-Founder & Joint CEO Oliver Slipper, Payne Sports Media Strategies CEO & Chair Michael Payne and Raine Group Founder & Partner Joe Ravitch looked at some of the latest trends in sports media rights globally. Slipper said, “We are seeing big growth in South America, especially Brazil. But it’s from a small base. Rights inflation is obviously driven by competition, and now there are four or five players out there buying content in that market.” Payne said that media rights from South America are increasing, but are still a small percentage of overall deals. Payne: “It’s only about 1% of the IOC’s total rights package, but it’s serious money. I think Brazil is probably reaching its full level. Of the BRIC markets, the one with the biggest growth potential is China, and that is dependent on the day we have competition. Right now, it’s controlled by the CCTV. But the moment the government opens the door, you will see big increases in China.” Dolan added, “Brazil is red hot. With the World Cup and the Olympics and the explosion of disposable income that is hitting the country and will hit it for the next ten years.”
REVENUE VS. DISTRIBUTION: The balancing of global properties going for revenue in new deals or distribution was also discussed, with Payne warning properties, “You are at your peril if you stretch your revenue an extra 10% and you compromise distribution. If you push your revenue and compromise your distribution, it will come back to hurt you.” Slipper said that most leagues will go for revenue over distribution. Slipper: “There aren’t many sports that take a socially responsible view when it comes to distribution over revenue.” But Payne countered, “It’s not socially responsible, it’s a matter of doing good business.”
