In the U.K., football explored uncharted waters in '16 as long-shot EPL champion Leicester City piqued global interest, and a raft of sponsorship and broadcast deals delivered never-before-seen wealth to the FA and its clubs despite concerns over Great Britain's decision to withdraw from the European Union. Up north, Scotland is looking for the next Andy Murray as the homegrown product's success led to added resources for the sport of tennis. Finally, one of the stories of the summer will have to wait until '17 to be resolved as Olympic Council of Ireland President Pat Hickey continues to fight charges of ticket-touting at the 2016 Rio Games.
RAGS TO RICHES: EPL side Leicester City enjoyed a fairytale season culminating in its first Premier League Championship in '16. The Foxes were on the brink of relegation at the end of the '15 campaign, but overcame 5,000-1 odds to be crowned English champions. The team's supporters were overjoyed as they rushed to the merchandise stands to get their hands on history. Puma, Leicester's official kit sponsor, released replica shirts with a gold badge on the sleeve denoting champion status. They were sold out in minutes. Puma CEO Björn Gulden revealed that sales rose 15-fold because of the championship. The jumping off point was in the days surrounding the title-clinching match but the big money quickly followed after advertisers took note of the reaction. During the '14-15 season, in which Leicester finished 14th, the club ranked 24th on the world's richest list with an income of £104M. Deloitte's Tim Bridge estimated that the championship season alone would result in a windfall between £30M and £50M. The ensuing seasons will be where rewards are truly seen as increased TV deals and Champions League participation could see Leicester's income surge to more than £200M. In June, sports marketing exec Patrick Nally said, "They have to capture the impact quickly. Their window is six to eight months." The organization heeded his warning over the summer by signing sponsorship deals with logistics company DHL, multi-currency payments service FairFX, online sports betting site BetStars and insurance provider DirectAsia Group, among others. Even team members got a slice of the pie as goalkeeper Kasper Schmeichel became a brand ambassador for New Balance, marking the first time a U.S. brand partnered with an EPL goalkeeper. The '16 version of Leicester City FC saw all-time highs on and off the pitch. Stories like that of the Foxes are perfect for Hollywood, which is where the team can live on in perpetuity. The season will be commemorated on the big screen as Paul Tamasy and Eric Johnson are set to write a screenplay about forward Jamie Vardy, with Leicester's memorable season a key component.
BREXIT: The world's eyes were on the U.K. in June when Britons voted to leave the European Union. This decision cast doubt upon future trade deals and caused the value of the pound to plummet. The domino effect spilled into the sports realm and impacted earning potential, sponsorship deals, media rights and ownership. The weakened pound effectively increased the price of signing players from overseas for the English Premier League. The first high-profile player to be impacted by the EU withdrawal was Zlatan Ibrahimovic. His contract with ManU was worth roughly 10% less against the dollar than it would have been pre-Brexit. Sports lawyer Daniel Geey said, "If there is a euro amount to a player's buyout clause, that amount has become more expensive and potentially scuppered deals." The perceived discount has created an opportunity for outside investors to tap the market. Shanghai-based digital marketing agency Mailman Sports Senior Client Manager Tom Elsden pointed out, "The pound dropping in value ... has created a huge opportunity for Chinese investment." Sports advisory firm Inner Circle Sports Founder Rob Tilliss noted, "There would be a discount going into the EPL, but then, theoretically, profits and revenues are devalued, too." Footballers were not the only athletes that felt the aftermath of Brexit. Less than a week after the votes were cast, the 130th edition of the Wimbledon Championships commenced. American Serena Williams won her seventh singles title at the All England Club but lost an estimated $380,000 in prize money due to the pound's depreciation. She earned less than she did for winning the 2015 Wimbledon singles championship despite a 6.4% increase in prize payout. Unpredictability influenced event planning across the U.K., as well. Wales decided not to bid to host the 2026 Commonwealth Games and the 2017 Circuit of Ireland Rally was scrapped. Both decisions were blamed on high costs and uncertainty about funding due to Brexit. Cost cutting was not restricted to events. ITV plans to cut £25M in costs next year while the economic outlook remains unclear. It is too early to say what impact the decision will have on broadcasters, but ITV aims to stay ahead of any potential fallout. However, as evidenced by the vote passing, not everyone was against the measure. F1 CEO Bernie Ecclestone did his best to stem any fears when he said, "I have been a supporter of this all the way through. ... If we've got something to sell, and it's a good product at the right price, people will buy whether they are Chinese, Italian or German. ... People will just get over this and get on with their lives."
FA FORTUNE: The FA spent '16 signing the most lucrative deals in its 150-year history. In the first quarter, the FA agreed to a deal granting Le Sports the exclusive rights to broadcast the FA Cup in China. Le Sports, which is a subsidiary of Chinese e-commerce firm LeEco, aired the final seven matches of the '15-16 season and received permission to broadcast the entirety of the '16-17 and '17-18 editions. The deal was worth a reported 2.7B yuan. In April, it was announced that the BBC and BT Sport extended their domestic rights to the FA Cup until '21. The new deal adds three years to the previous agreement while also allowing more matches than ever before to be shown. The partnership calls for greater coverage for youth football and the women's game. On the heels of securing rights packages for Asia and at home, the FA made its biggest splash by ratifying an overseas broadcast deal with Pitch Int'l and IMG thought to be worth $1B. The deal was negotiated in U.S. currency due to its strengthening value following Brexit. This partnership will allow Pitch Int'l to broadcast the FA Cup in Western Europe, the Middle East and North Africa while handing IMG the rights to the rest of the world. FA CEO Martin Glenn said, "This is a hugely significant deal for the FA as a not-for-profit organization. It means we will be able to invest even more than we currently do in pitches, facilities and participation programs to make football available for all." As icing on the cake for this year, the FA inked an extension with Nike for sponsorship of its national kit. The 12-year extension through '30 is worth £400M and will encompass 24 England teams in both the men's and women's game and could rise if performance goals are met.
SCOTTISH TREASURE: Andy Murray reached new personal heights in '16 as he captured Wimbledon and Olympic glory en route to finishing the year as world No. 1. Following triumphs at the All England Club and in Rio, Murray's season culminated with a victory over rival Novak Djokovic in the ATP World Tour Finals. He is now on track to become one of the world's highest-paid athletes. He earned $10M in prize money this year while adding an additional $15M from endorsements. Sponsors have taken notice of his success and he is in talks to sign more corporate partnerships at the beginning of '17. Sports consultancy NC Partnership Founder Nigel Currie said, "The returns for Murray can be huge," while pointing out that he expects Murray to make around $50M per year if he maintains his status at the top. Murray's success impacts broadcasters, as well. The Wimbledon final between Murray and Canadian Milos Raonic was watched by more than 13 million viewers on BBC1. Perhaps as a result of such an audience, the BBC extended its Wimbledon deal for an additional four years through '24. Murray's success is contributing to a growth of the sport at home in Scotland, as well. Andy's mom, Judy Murray, asserted, "It will be a huge disappointment if we don't use ... success to grow our grassroots tennis participation." She has been developing a plan for a world-class coaching facility near Dunblane. Her vision is focused on Park of Keir because of its transport links to most of Scotland's population centers. In addition to Judy Murray's proposal, tennis in Scotland received £15M in funding to double the number of indoor courts to 225 within the decade and increase participation.
OLYMPIC OVERCHARGE: In August, Olympic Council of Ireland President Pat Hickey was arrested in Rio de Janeiro for his connection to an alleged ticket-touting scam. The BBC reported that Hickey was suspected of being involved in a scheme to sell tickets for higher than their face value. IOC President Thomas Bach stated, "What we know is that he has not been heard by a judge yet and, more so, the presumption of innocence prevails." However, a Rio court prohibited him from leaving Brazil and seized his passport as the case proceeded through the system. In the weeks following his arrest, Hickey maintained his innocence and vowed to vigorously defend his good name and reputation. In December, a Brazilian court released Hickey's passport so he could return to Ireland to receive medical treatment. The passport's release finalized a lengthy process roughly two weeks after his bail bond of approximately €410,000 was submitted by the Association of National Olympic Committees and was contingent upon Hickey agreeing to attend all aspects of the ongoing legal process regarding his charges of ticket-touting.
