26 April 2022 - Football Business Inside
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26 April 2022
FOREWORD
If you think that something is dif- Other topics in this issue include
ferent than usual when reading youth academies, sustainability,
this issue, you are not mistaken. football business in Poland, Forest
Two central things are new: the Green Rovers and salary caps in
format - the FBIN Magazine is now football. The Five Insights in this
published in A4 format - and the issue were revealed to us by Tomás
font. de Mello Corrêa, Digital Marketing
FOOTBALL
Manager of the Portuguese first di-
After 25 issues, it was time to bring vision club Vitoria Sport Clube.
a breath of fresh air to the layout.
And the larger format as well as If that’s not enough reading ma-
the new font make reading the terial, you can download our lat-
physical edition in particular more est report “Strategies for Football
BUSINESS
pleasant. Clubs: Why and how to use Ama-
zon Brand Stores. Or not.” free of
Much more important than for- charge on our website www.foot-
mat and font is the content. And in ballbusinessinside.com.
this respect, issue 26 again offers
an exciting mix of topics from all Finally, dear reader, I would like
over the world. For example, the to invite you to the FUTURE OF
MEETUP
cover story about the long-sleep- FOOTBALL BUSINESS Confer-
ing giant Ipswich Town FC, which ence, which will take place on 1
was recently kissed awake. Or the September in Graz, Austria. We
insights into two clubs in Brazil are expecting over 200 guests at
and Egypt - Fortaleza EC and Al the biggest FOFBC to date - and I
Ahly SC. hope you will be one of them. Ear-
ly Bird tickets will be available on
I also spoke to Lukas Müller from our website from 9 May and you
FC Midtjylland about their social can already register your inter-
media strategy, and learned from est and receive a 15% discount on
PRESENTED BY Minas Lysandrou, CEO of our
FBIN Football Network member
OFI Crete FC, about the club’s de-
your ticket.
See you there!
velopment goals. Best regards
4 MAY | BUDAPEST
www.footballbusinessinside.com Thomas Maurer
Founder FBIN
maurer@footballbusinessinside.com
2 3
18 32
10 26 36 28
PAGE 6 PAGE 15 PAGE 18 PAGE 26 PAGE 32 PAGE 40
THE FUTURE OF FOOTBALL AND PREPARING FOR THE BIGGEST “FORTALEZA IS ONE OF THE TEAMS THE BUSINESS STORY OF AL AHLY REALITY, THREATS AND PROSPECTS HAS EVERYTHING REALLY GONE
SUSTAINABILITY FUTURE OF FOOTBALL BUSINESS THAT HAS THE MOST POTENTIAL TO SC - THE WORLD’S MOST DECORATED OF POLISH FOOTBALL MARKET GREEN?
Key takeaways from the panel discussion at the CONFERENCE EVER GROW IN BRAZIL, EVEN IN LATIN FOOTBALL CLUB A closer look at the Forest Green Rovers.
Sustainability Focus Month.
AMERICA” Rami Aboushaara talks about the business side
Interview with José Carlos Gama Filho from of one of Africas biggest clubs.
Fortaleza EC.
PAGE 10 PAGE 16 PAGE 22 PAGE 28 PAGE 36 PAGE 44
“WE ARE BUILDING THE AIRCRAFT 5 INSIGHTS WITHOUT THIS YOUR YOUTH “WE ARE SIMPLY OUTGROWING “THERE IS ALWAYS SPACE FOR ARE SALARY CAPS IN PROFESSIONAL
WHILE WE ARE FLYING” Tomás de Mello Corrêa, Digital Marketing ACADEMY WILL STOP WORKING IN OUR LOCAL AREA” IMPROVEMENT” FOOTBALL ILLEGAL?
Manager, Vitoria Sport Clube.
Interview with Mark Ashton from 3, 2, 1... Interview with Lukas Müller from FC Interview with Minas Lysandrou from The Hoffmann Liebs column.
Ipswich Town FC. Insights into the latest survey of LTT Sports. Midtjylland. OFI Crete FC.
Imprint
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The next issue will be published in June 2022.
All contents of the FBIN Magazine are
FBIN Thomas Maurer protected by copyright. Reprinting, even
Thomas Maurer maurer@footballbusinessinside.com in extracts, only with written permission.
Dietenberg 205/4 The FBIN Magazine accepts no responsi-
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Responsible for the Layout and topicality of the information provi- Hard Copy Subscription 60 Euro incl. shipping per year, excl. VAT
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Cover photo ponsibility for advertisement content lies
Richard Calver solely with the respective authors of the
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4 5
5
THE FUTURE OF FOOTBALL AND
SUSTAINABILITY
FBIN hosted a Sustainability Focus Month in March, and one of the highlights was a panel discussion featuring
three experts from three different areas, all related to football business: Andreas Hecker (Hoffmann Liebs
Interestingly, Olivier pointed out Sustainability as a key
attorneys), Olivier Jarosz (LTT Sports), and Ilja Kaenzig (VfL Bochum). The discussion focused on how European those regulations should harmo- component for licensing
Football Clubs can embrace sustainability, the associated challenges, and what has to be done in terms of nize with positivity because it’s Olivier Jarosz Board Member, LTT Sports
program
regulations and major future trends. probably impossible to have a
perfect footprint. In other words,
we’re more motivated if given a The panelists also discussed the
By Quang T. Pham “carrot” rather than a stick. German Football League (DFL)
‘s plan to include sustainability
as a part of the licensing pro-
Capitalize Sustainability and the cess for the Bundesliga and the
next generation of football fans 2. Bundesliga. From the season
Sustainability in the lens of ESG framework into relevant foot- ficult to comply with sustainability 2022/23, the DFL aims to tie
football - The “Why” ball examples: requirements and guidelines. Ilja stated that there’s always the sustainability initiatives as crit-
• Environmental: waste man- “business” part between football ical criteria of their licensing
agement, sustainable energy Avoid “Greenwashing” - Ilja be- and sustainability strategy. This is program. These initiatives are
Given that “sustainability” is such at the stadium lieves that the first thing small- because it could drive new sources based on the United Nations’
a vague and sophisticated phrase, • Social: fan involvement, local mid-sized clubs should do is define of revenue for football clubs and at Sustainable Development Goals
Ilja kicked off the panel by men- community engagement, di- an authentic mindset. Such clubs the same time become a motiva- (UN SDGs) with various topics
tioning the common sustainability versity, and inclusion don’t need different measures as tion or responsibility. More impor- like climate change, gender
framework -ESG (Environmental, • Governance: league/feder- of the elite group. Instead, they tantly, sustainability is demanded equality, education, and many
Social, Governance). Many people ation’s regulation, club’s fi- should be down-to-earth, close to by the next generation of football more. Additionally, this strate-
still perceive sustainability only nance transparency. local communities, cities, and re- fans - Gen-Z/Gen-Alpha, who prob- gy will include incentives and
with the “Environmental” parts, In short, all panelists agreed that gions. ably have different views on such sanctions for clubs that do not Ilja Kaenzig Managing Director, VfL Bochum
while football clubs can instead re- sustainability is the only way to topics. Below are some interesting fulfill the minimum criteria.
alistically involve more in the “So- safeguard the future of the whole “At Bochum, we want to avoid any insights in a recent survey of VfL
cial” and “Governance” aspects. football industry. forms of greenwashing and rather Bochum: Andreas commented that this
be an ambassador of actions and • 79% of the fans are highly in- would be a paradigm shift for
From the perspective of attorneys, Overcome common challenges continuity. We don’t want to mix terested in sustainability football because it’s no longer
Andreas noticed that sustainabili- sustainable activities with market- • 70% expect their favorite club just ideas or PR stunts but sol-
ty is becoming more influential for Lack of resources and manpower ing gimmicks or PR stunts, which to take a strong position re- id hard facts and compulsory
any new legislation or regulations. It goes without saying that the some clubs take advantage of garding sustainability criteria. He believes this would
Besides the above-mentioned ESG, majority of sports clubs lack the nowadays. We want to have under- • 82% expect realistic and hon- give the Bundesliga two steps
financial sustainability and team finances and manpower neces- standable results for all stakehold- est sustainability measures ahead of all other leagues and
(youth) development have become sary to carry out their sustain- ers, and they can see the benefits from their clubs bring more commercial op-
crucial sustainable components in able strategy fully. According to themselves” - Ilja Kaenzig. • 46% of might stop following a portunities from different in-
recent years, especially during the Olivier, many football clubs and club if sustainable actions are dustries and sponsors. It is
Covid-19 pandemic. organizations will often develop Readiness for mandatory taken or implemented seri- increasingly important for in-
a strategy but have to abandon it regulations - Andreas empha- ously vestors and sponsors to look at
As an advisory firm, Olivier be- because there is no personnel to sized that in the coming years, • 66% are willing to pay more the sustainable aspects of foot-
lieved sustainability is the magic implement it afterward. Further- sustainability will be a vital part for sustainable products and ball clubs. Other major Europe-
“buzz” word that we need to make more, due to the nature of Euro- of the EU’s legislation, thus push- services (sustainable mer- an leagues will soon follow in
it more digestible for clubs and pean football and the expansion of ing certain mandatory sustainable chandise, catering, in-stadium these footsteps and keep this in
leagues. He also broke down the competitions, clubs may find it dif- reporting towards football clubs. service, etc.) mind as well. Andreas Hecker Lawyer, Hoffmann Liebs
6 7
“At Bochum, we want
to avoid any forms of
greenwashing and rather be
an ambassador of actions mate protection. Still, he believes Focus on the right issues - The
and continuity. We don’t want the green bonus system or incen-
tives is doable.
sustainability concept could be
overwhelming, so clubs, leagues,
to mix sustainable activities and relevant organizations should
with marketing gimmicks As a German club’s representa-
tive and one of the working group
prioritize areas where they can
utilize their strengths to make an
or PR stunts, which some members who developed this impact first.
clubs take advantage of sustainability movement, Ilja ad-
mitted that it was not a simple Talk less and Act more - Football
nowadays. We want to have process. First, he had to convince has an emotional relationship
understandable results for all many colleagues and get their vote
on the inclusion of sustainability
with fans, so it is prone to talk and
produce a lot of hot air. Football
stakeholders, and they can as licensing criteria. The next step organizations must be more trans-
see the benefits themselves” is to work on around 350 criteria
in detail and discuss again with all
parent, define concrete measures,
and implement them. In other
Ilja Kaenzig the clubs in May. Given the limit- words, we must avoid greenwash-
ed resources and manpower, this ing.
would be a massive task for clubs
to implement. However, DFL will Sustainability can grow your
provide a navigation system, and fanbase and drive commercial
each club probably should have a opportunities - Undoubtedly, sus-
dedicated sustainability depart- tainability is becoming a must-
ment. The journey will be chal- have mindset for the next gener-
Interestingly, Olivier has a more lenging and require lots of creativ- ation of fans. Clubs who invest in
down-to-earth viewpoint and said ity and acceptance from the clubs. sustainable actions can sharpen
that this sustainability licensing It’s also vital to create sustainable their brand image, which eventu-
criteria might generate questions digital reporting, similar in the ally can win younger fans. Sustain-
about daily operations. In real- financial industry, to show com- ability can also help clubs attract
ity, football clubs are still busi- plete transparency to all relevant more sponsors and investors, thus
ness-oriented and might need stakeholders. Also, data collection earning more profits or creating
DOWNLOAD THE NEW
to focus on their core activities and data privacy protection are more commercial opportunities.
(match-day ticketing, commer- still barriers in Germany and Eu-
cial activities, training, etc.) to at rope. Still, that is what it takes to Sustainability is the only path
least survive. Hence, the UN SDGs be a first-mover or trendsetter. to the future - Do or do not, sus-
could be overwhelming for many tainability will be the future of the
REPORT FOR FREE
clubs and leagues out there; those world and the only way to safe-
are small-and-mid size. There is Key takeaways for the future of guard the football industry as a
still a huge gap between the Ger- Football and Sustainability sport and a business. As long as we
man Bundesliga and many other can harmonize and improve these
leagues, and not to mention, even three elements: people, planet,
the German leagues, though are Understand “Sustainability” in and profits, we can achieve sus-
footballbusinessinside.com
pioneers, are still a “work in prog- the right way - The football indus- tainability.
ress”. On a macroscope, football is try misunderstands sustainability
still far behind many advanced in- as solely about environmental pro-
dustries, from digitalization to cli- tection or charitable giving.
8 9
“WE ARE BUILDING THE AIRCRAFT
WHILE WE ARE FLYING” them. They then introduced me to
the other investors in the US, and
in a correct and proper fashion.
You must have a plan and execute
fan base. The club hadn‘t had a
community trust for 10 years. And
I joined on June 1st. I‘ve got one, that plan with them. We had an yet, within seven months of being
two more gray hairs since June, if amazing owner of Bristol City who here, we‘ve got an average atten-
In April 2021 Ipswich Town FC was taken over by Gamechanger 20 Ltd, a newly founded company of which you noticed. continually funds the football club dance of 22,000 fans.
90% are owned by a US investment fund called ORG, co-founded by Edward Schwartz, who is also OGRs properly. And I like the fact that
What was the main driver for the guys in the US wanted to do the Retail numbers this year will be
representative at Ipswich Town. ORG again manages funds on behalf of a major US pension fund - the Arizona leaving a decent Championship same here. They don‘t just want to a record that has increased 100%
Public Safety Personnel Retirement System (PSPRS), whose representative at the club is Chief Investment club for an entirely new and prob- buy success. They want to build compared to last year. We‘ve also
Officer Mark Steed. The Three Lions fund with Brett Johnson, Berke Bakay, and Mark Detmer own another 5% ably more challenging project? success. So they want to redevel- got a unique partnership with Ed
Many of my colleagues asked if I op the club in all areas, facilities, Sheeran, which gives us global
and the remaining 5% belong to the previous owner of Ipswich Town, Marcus Evans. In June 2021 Mark Ashton was really sure about doing this. I training ground, community, com- exposure. Interestingly, when you
joined the club as new CEO. We spoke to him about how he wants to lead the club into a new era. was building a stadium, a training mercial. I believe it‘s a unique op- look at the location of Ipswich,
ground, having a really good rela- portunity in English football right there are actually no competitors.
By Thomas Maurer & Quang T. Pham tionship with the owner of Bristol now to work with good logical peo- Norwich is two hours away. We
City. For this, I also had to leave the ple who want to do something for have 750,000 people in Suffolk and
EFL board. Yet, when I looked at the long term. And that just really probably a wider 2 million if you go
You joined Ipswich Town a few stayed in touch. They had a con- League (EFL). But I thought it was Ipswich, I saw a club that had dete- lit a fire in me and really excited into Essex. With sensible proactive
weeks after the announcement of tinual desire to own an English an opportunity that I didn‘t want riorated probably over 10 years but me. marketing and a team progressing
the overtake. Were you in contact football club. They always said, to miss because I‘m a builder and has an amazing fan base and in- on the pitch, I think we can defi-
from the start, or how did it all „If we ever get to that stage, we‘d enjoy building things from the bot- credible history and tradition. The So, the ultimate goal is creating a nitely create something special.
begin? like you to be involved and run it tom to the top. So that‘s how I met more I learn about Ipswich, the sustainable football club?
Mark Ashton: Around four or five for us“. Then when they got close more I‘m surprised and shocked at If you ask any football club, they You mentioned that many things
years ago, I was in the US, present- to completing the deal at Ipswich, how big our fan base can be. We‘ve will say that they want not just weren‘t implemented when you
ing to the United Soccer League on they called me and said, „Look, already had crowds of 29,000 fans sporting success but also to build first came in (CRM, data, IT infra-
English football, transfer markets, we want to do this deal. We think here this season. 7,000 fans trav- a sustainable business. For us, we structure, etc.). But what exactly
and how to run English clubs. At you‘re perfect to come in and run eled to MK Dons. Our average at- have a specific way of doing that. was the first thing you did at the
that point, I met three of our inves- it. Would you do it?“. tendance was around 22,000, and First, it is building infrastructure start?
tors - Brett Johnson, Berke Bakay, we got nearly 14,000 season ticket that can drive revenues. Also, For me, there were two things.
and Mark Detmer, and we always It was difficult because I was very holders. And we haven‘t even real- when we first joined the club, there One, I had to do a lot of listening.
happy at Bristol City and as a board ly got started. So, the opportunity was very little IT infrastructure, no Whether they were staff, players,
director at the English Football was so unique. data, no CRM, no marketing, no coaches, commercial stakehold-
physical plan on how to build the
Additionally, I like working with
the PSPRS and ORG, the funders,
because this is regulated money
or good clean money. This means
that you have to build the business
Photos: Richard Calver
10 11
mance recruitment analysis, and structuring the club‘s business There are areas we only need to
ultimately, when do we decide to side. There are probably several catch up on. One of the differences
change the manager? My task is projects, but one priority is the IT with this football club is its size of
to go and find a manager who fits infrastructure which we‘ve spent both the English and internation-
with the philosophy of the owner- over half a million on. We are put- al fan base. Once we have these
ship group and take the Club for- ting in a new stadium entry digital platforms in place, I believe we
ward. system and upgrading concourse can start to build revenue streams.
Another thing is that we‘re trying catering and beverage outlets. New Once we can provide better com-
to create a learning environment. digital advertising will also appear munication with our supporters in
I don‘t know it all. The manager on our pitch. Our corporate facili- the UK and abroad, we can attract
doesn‘t know it all. No individual ties will also be upgraded in which different types of sponsors and
knows it all. So, we are building we just bought a large piece of land commercial partners. It‘s also im-
relationships with other business- behind our North Stand. The goal portant to take care of local part-
es, clubs, or sports organizations, is to develop revenue streams to ners because they‘ve been with us
where every day, our main focus support the club, and all of that for a long time. If we do what we‘ve
is to learn. And I think we have a won‘t be done this summer but always done, we will get the same
manager who‘s a genuine learner over the next 12-18 months. outcome. We have to change the
and educator. And that‘s important way we operate to get a different
to the ownership group. Could you share more details on result.
the digitalization strategies?
So, are you still in the process of We have to move into a digital You said Ipswich is something
developing a long-term strategy, age. We have a sponsorship with different in your 30 years in the
or do you have one already? Ed Sheeran, an amazing football football industry. Could you elab-
I have my personal model of how club supporter, and if you go on orate?
the football clubs should work, but Ed Sheeran tweets, we get endless I‘ve never known a town so pas-
that model has to bend and flex coverage. We need to maximize sionate about its football club. And
to fit Ipswich. So, we have a real that from a brand perspective. The I think because it is a single-club
core plan, and the only way I can stadium will be more digitalized county. I was at West Bromwich
describe it is like we‘re building with digital advertising boards, big Albion for 16 years, and we had
the aircraft while we are flying. screens. We are going to launch Aston Villa, Birmingham City FC,
We don‘t have time to stop playing Ipswich Town TV, in which we are Wallsall within a seven to eight-
Mark Ashton CEO, Ipswich Town FC games, selling tickets, or not to be going to bring more of the stream- mile radius. So, you would bump
active in the community. We can‘t ing in-house. We will have our own into Wolves, Villa, Birmingham
take a season off. We have to build commentary team, which will give fans. You will have the rugby at
this whilst we‘re on the journey, us opportunities to commercialize Bristol, Bristol City, Bristol Rovers.
but we have a very clear sense of the digital platforms. There‘ll be Here at Ipswich Town, it will only
ers, or partners, I had to sit down former chairman and directors, Did you get any specific goals direction. big changes and enhancements for be Ipswich everywhere you turn.
and listen to them because it was a former players who have spent to achieve from the ownership our website and all digital chan-
good education for me. Then, prac- all the time with me, educated me group? When I joined in June, most of nels. So, there will be big infra- I‘ll give you a quick story weeks
tically, the first thing we had to do about how Ipswich works, where There was no such thing as you‘ve my time was spent in the football structure projects for a solid foun- ago. We played Cheltenham in an
was clean. The stadium was dirty. the club‘s gone wrong, and what got to be in the Championship by department. Now we got Kieran dation for the next 10-15 years. evening game at home and drew
Even on the first day when I had this community is looking for. this time or in the Premier League. McKenna and his coaching staff or Still, I keep saying this to the funds 0:0. In the morning, I was driv-
my press conference, I couldn‘t sit Instead, I was asked to develop a Andy Rolls, who worked at Arse- that we‘re still behind because ing to work and was talking to my
in the seat because they were dirty Regarding the cleaning, I always specific plan for how we are going nal for performance management. there has been no infrastructure wife on the speakerphone. Then I
and uncomfortable. tell everyone at the club that we to build the Club. So, I have few people who are, in development for the last 10 years. pulled up in the inside lane at the
So, we embarked on a cleaning won‘t be trusted to do the big my opinion, world-class and set We need to bring ourselves up to traffic lights. This double-deck-
program to bring the stadium back things if we can‘t do the basics. If Things like how are we going to very high standards on the sport- speed and get ahead of the curve er bus pulled up by my side, and
to a respectful state of life. And we we can‘t pick up the litter, clean the progress off the pitch? How are ing side. Now I can move my focus as quickly as possible. I thought the driver was waving
are still working on these two proj- seats, or fix the toilets to ensure we going to impact the communi- more to the business side. his arm at me. At that moment, I
ects until now, listening to the peo- that the stadium is presentable, ty? How are we going to reignite How would you catch up with oth- thought I was in the wrong lane,
ple and cleaning. I‘ve been in the we‘re never going to do the big the fan base? How are we going to What are the current high-priori- er clubs or try to bypass them in the bus line, and was about to roll
football industry for more than 30 transfers or commercial deals. We build the revenue streams? How ty projects of Ipswich? some aspects? my car‘s window down to apolo-
years, but I don‘t know Ipswich that have to be world-class at doing the are we going to build the playing As I said, the football department I think we have the opportunity gize. The driver opened the doors
well, so it‘s important to learn. The basics first. side? How will we build perfor- is done, and we are currently re- to be trailblazers in some areas. of the filled bus, leaned across, and
12 13
PREPARING
FOR THE
BIGGEST
FUTURE OF
Photo: Kerstin Kronabether
Photo: Christof Hütter
FOOTBALL
BUSINESS
CONFERENCE
said: „Mr. Ashton, up the Town, up
the Town!“. The whole bus started
Regarding the retail revenue, even
in the Premier League, it is usu-
retail, and hospitality revenue will
increase. But that‘s why you can‘t
EVER
cheering. You can get that if you ally only about 1.3 to 1.4 million just build the first team. You have
are the player or the manager, but pounds. This season we will break to do everything, especially the
not as the CEO. through 2 million. We‘ll go be- infrastructure, for the long term. On 1 September, the football
yond because we‘re taking a pro- And that again, really, really ex- business industry meets again in
Photo: Kerstin Kronabether
So, you see it everywhere in the active approach to sell. We‘ve got cites me.
Photo: Christof Hütter
town. People here are so desper- the relationship with Ed Sheeran, Graz for the fourth edition of the
ate for success, and they care pas- you know, 14,000 season tickets You mentioned Ed Sheeran a cou- FUTURE OF FOOTBALL BUSINESS
sionately about their football club. in League One is massive, but it‘s ple of times; it‘s certainly some- Conference, the biggest yet.
They care how the club is present- not our average occupancy over thing special. What was the story
ed and how it is built. I don‘t think the past 10 years. It has been only behind it?
I‘ve experienced such a passion for around 56%. We need to work to- I can‘t take credit for this. Ed is a
a club like here. Last week, we had wards a 98% occupancy, and we lifelong Ipswich Town fan, but I A bit less than 200 people from leadership and from data to organ- on Wednesday, 31 August. The
the 40th anniversary of the UEFA want to push towards an average think the story is when he saw we 30+ countries attended the FOF- isational development. conference itself takes place on
Cup win. At the dinner, we had attendance of about 28,000, not had a gambling company or a bet- BC in 2019, the biggest so far. This 1 September and on 2 September
these fantastic players - Alan Bra- 22,000 fans. Interestingly, we had ting company on our shirts and year we are aiming to gather much We look at concrete cases of all side events will take place.
zil, Terry Butcher and John Walk the biggest away attendance, in- thought that didn‘t seem right. more than 200 experts in Graz, sizes and let renowned experts
who wanted to spend time with cluding the Championship and any So he wanted to get involved and Austria. Rights holders, agen- discuss important topics on stage. The first speakers and sessions
me and tell me about the club. I‘ve EFL club this season. 7.000 fans, sponsored his tour on our shirt. cies, companies, and media from Moreover, one-hour workshops will be announced in May, after
never quite experienced this in- three hours down the road to MK He‘s a fan and wants to support across Europe and beyond will make it possible to dive deeper the Football Business Meetup in
tensity. So, we‘d better win games; Dons supporting us. We even had and give to his local football club. meet at the Messecongress Graz into selected topics. Budapest. Early Bird tickets start-
otherwise, I‘m in big trouble. more fans than they had in their I had the privilege of meeting him on 1 September. ing at 170 Euro are available from
stadium. a couple of weeks ago, and he‘s ex- This year there will also be more mid-May as well.
What are the club‘s current size tremely passionate about the foot- Once again, we focus on topics, opportunities and additional space
and its average revenue? With marketing, more community ball club. And we can‘t thank him highly relevant for the football for exhibitors. You can already register your in-
From a revenue perspective, we engagement, and developing the enough for his engagement. business industry and especial- terest at www.footballbusinessin-
have incredibly been a mid-table next generation of supporters, we ly for rights holders. They range As usual, the FUTURE OF FOOT- side.com/fofbc22 and claim a 15%
League One club nearly all season, can grow a fan base. That brings us from sustainability to digital trans- BALL BUSINESS Conference starts discount on your ticket!
with 14,000 season ticket holders. to 28,000. In doing that, ticketing, formation, from innovation to with a Welcome Evening, this year
14 15
5 INSIGHTS Tomás de Mello Corrêa
Digital Marketing Manager | Vitoria Sport Clube
Is it important as a football club other organizations, which a lot eration to you as a club – alterna- cause it takes the unpredictability and if we know how to answer
to transform (more) into a media/ of the time works perfectly. There tive content, content generated and the beauty of football, in my these and other questions, we are
content company or a lifestyle is no right or wrong in marketing. by the players on platforms like opinion. closer to succeeding in this fan-
brand? How do you look at that There is only a try and analyze. If it Twitch, the whole esports devel- club relationship. Data centraliza-
based on your club’s perspective? works, replicate later (if you have opment and other ways. What trends do you see develop- tion is fundamental for a business
the budget for it, of course). The ing in the next 3 years in terms of to be efficient and commercially
At Vitória, it is more important to biggest advice is to have a strategy Crypto related with fan engage- new commercial opportunities appealing. This will show the club
transform into a lifestyle brand. behind all the actions that we do ment; NFTs; Dynamic and inter- for football and especially your how to act strategically in every
I believe that the club is already
embedded in the culture of a city
and in the daily day of any sup-
and adapt the trends that suit the
strategy that is in place.
active club app; Esports and oth-
er digital options like metaverse,
AR, VR, and other digital tools
club? Are there any new projects
you are currently developing?
department, and it is going to
show the road to success. “The biggest
porter. They breathe and live all
the information and content that
At Vitoria SC, every major decision
that changes the club´s statutes
that bring the fan closer to the
player´s routine and new ways to
In my opinion, there are 3 trends
to develop the club commercially.
Finally, crypto companies are tak-
ing place and I believe that those
advice is to have
the club shares and publishes. For
that reason, a strong and creative
digital communication strategy
need to be voted on and approved
by the supporters in the general
fan meeting (“Assembleia Geral”).
give the fans the ultimate decision
making. Platforms like club apps,
Discord, Twitter, and Twitch will
First, we can never forget that fans
still want the physical part of the
digital brands will help football
financially by investing and cre-
ating partnerships that will bring
a strategy behind
should be put in place to make
sure we give the best content to
So, in our case, the fans have a
word to say in the club´s path. Be-
be fundamental for this process
of interaction with the younger
game, so it is crucial to develop a
better stadium experience. How
value to the game. These synergies
between clubs and crypto compa-
all the actions that
our fans and followers. You then
reach new targets using innovative
and interactive content, but at the
sides these major decisions, in my
opinion, the new fan engagement
era is about giving the fans the
generations. Creating interesting
and smart partnerships with these
different companies, teams, and
can we do it? Develop a club app
that has a range of functionalities
like live stats, live decision-making
nies are fundamental for the trans-
formation and adaptation of foot-
ball within the new generations.
we do and adapt
end of the day, if the “customer”/
fan embraces our ideals and views
right to make some decisions and
to be involved in the club´s dai-
federations will help reach out and
interact with the new generations.
content, live games, and others.
Creating the best fan experience
At the same time, NFTs will be a
great commercial asset to any club
the trends that
as their ones, then we are actively
changing the mind of our follow-
ers. For this reason, I would say
ly routine. For example, the goal
song, the 3rd kit design, the color
and shape of merchandise, even a
I think this can be the future of
football.
possible gives fans the ultimate
fan engagement asset. This can be
expensive in a short period, but in
due to their authenticity. Another
big asset will be the metaverse.
This digital world is coming soon
suit the strategy
that nowadays, both the options
above complement each other but
corner set-piece in football and an
offensive play in American Foot-
How can football clubs increase
their financial stability and sus-
the long run, this can turn into a
great income creator to any insti-
into the football world. We already
can see great examples like “Nike-
that is in place.”
the most important, in our case, is ball (who knows, this could be a tainability? Do you think it needs tution through sponsors exposure, land”, and I believe that this will
to get into their daily routine with great idea), and others. We need to fundamental changes within merchandise, ticket sales, OTT be the future of this sport. As a
our values and feed their love with bring them into what is the club’s the football system, like closed platform, and finally, DATA. club, we need to be ready to adapt
what they want to hear from us. life because they live and consume leagues, a salary cap or similar? to what is coming, but we cannot
our brand like no one else. Data is another asset that clubs do it alone. We need partners that
Can you describe the process of I believe that we need to adapt need to explore. We know that we help us through this journey, make
implementing new non-sports Answering the question, internal- the game to not lose the new gen- have the fans associated with our us understand the profitability
projects at your club? Are you ly we have or research ideas and erations and future customers. brand because they spend their of this world, help us understand
asking your fans for input, do you trends. If it makes sense within There are a lot of competition like money and time on this relation- how fans will use these tools and
look at other clubs or industries our strategy, we adapt and present eSports that are really stepping ship, and clubs give them the best how we can educate them towards
for inspiration, do you work with the project to our director. After up into the game (even thought I show possible on the pitch by win- a more efficient adaptation.
market research? that, we share the project with the believe that clubs should support ning games and trophies. That
departments to make everyone and integrate these new sports). looks easy. But who are the fans? To summarize the question: devel-
Marketing is the research where aware of the idea. Then put it into Since it is not my department, I What do they like? How can we oping a club app; data centraliza-
we look for new trends and ideas action. Then analyze the outcome will leave this discussion to people expand their experience? What do tion; crypto, and metaverse world
in every market. We take them and and improve the idea. with knowledge of rules and reg- they want from us besides wins? are the 3 main opportunities for
adapt them to our strategy. Some- ulation. Although, I just want to Well, those are questions for a the next years. At Vitória, we are
times we are pioneers in some What opportunities do you see to mention that I am against a closed million Euros. And data can help already working with a single sign-
actions, others simply copy from attract and bind the younger gen- league for European football be- answer those. Data is the new gold on and with an app.
16 17
“FORTALEZA IS
ONE OF THE TEAMS
THAT HAS THE
MOST POTENTIAL
TO GROW IN
BRAZIL, EVEN IN
LATIN AMERICA”
Despite spending long years in the third tier during
the last decade, Fortaleza EC is one of the big and
traditional clubs in Brazil, especially in the Northeast of
the country. Since 2017, the club has been developing
steadily, both economically and in terms of sport. The
club was promoted to the highest division and this year
Fortaleza will play in the Copa Libertadores for the
first time ever. We spoke to the club’s New Business
Director, José Carlos Gama Filho, about the recent
evolution.
Photo: Karim Georges
By Thomas Maurer
Can you please tell nancial reorganisation that reflects ly revenue, people working at the The current TV broadcasting deal 2021, we had only 12,000. Now, we You start your first ever Copa Lib-
us a bit about For- inside the field with great results: club? is running until 2024. have over 44.000 again. ertadores group stage in April,
taleza EC? A brief 2nd Place in 3rd division, in 2017; Fortaleza in 2019 was the 2nd big- right? What does that mean for
insight into the his- Champion of 2nd division in 2018; gest club in 1st division with atten- What does your sponsors account You are starting your fourth sea- the club – also financially?
tory of the club and 9th place in 1st Division in 2019; dance of 32.999 people per game. for? son at the Serie A after getting pro- It´s incredible. Fortaleza will play
where it is now. 1st appearance in 2020 in the Copa In 2021, our balance was 23 mil- In 2022, our sponsors represent moted from the third to second against some of the best teams of
José Carlos Gama Sudamericana; 4th place in the two lion. In 2022, we expect over 27 over 2,5 million Euro. and second to first tier. Is it a big Argentina, Chile and Peru: River
Filho: Fortaleza has major championship: 1st Division million. Until now, Fortaleza has difference to play in the first tier? Plate, Colo Colo and Allianza Lima.
José Carlos Gama Filho been a club for over and Brazil´s Cup. In 2022, Fortale- over 44.000 associates and over 300 How did the covid-19 pandemic Yes, every detail counts. One big But it´s just the beginning. Fortale-
Business Director 100 years. It’s very za will debut in the Libertadores da employees/partners. affect the club? difference in our club is that all za hopes to go far in the competi-
Fortaleza EC traditional in the América. It affected the club a lot, because, the payments are due to the exact tions.
Northeast of Brazil. Regarding revenues, what role in our associate membership, the day. This is not common in Brazil.
In the last decade, Fortaleza was How big is Fortaleza compared to does the money from TV broad- ticketing is included. At the time So, it´s a big difference to get play- Do you have any ties to Europe, any
in the 3rd division, but since 2017, other clubs in Brazil – let’s break it casting rights play for the club? we had 35,000 members. At the end ers that want a team financially re- cooperation? Basically, is interna-
the team has started a process of fi- down to figures, attendance, year- It´s still the number one revenue. of public restrictions, in October sponsible. tional presence a topic for you?
18 19MARKE
03. Mai 2022 // Wien
MARKE
DIGITALISIERUNG VON SPORTEVENTS
KRYPTO, NFT & METAVERSE
MARKENSTRATEGIEN
ARENA ERLEBNIS
SPONSORING
Photo: Leonardo Moreira
Photo: Karim Georges
© SWpix
Overall revenue distribution ed to integrate all the systems and Fortaleza is just at the beginning
database. of this process. In long terms, we U.A. AUF DER BÜHNE:
#1 Broadcasting think it´s a market that can gener-
You don’t own your home stadi- ate revenues. But for now, it´s not
#2 Associate membership um and also share it with your lo- our first demand. DI Doris Wendler Christian Ebenbauer Haruka Gruber Max Schickler
cal rival. Is that a problem? Vorstandsdirektorin Vorstandsvorsitzender Vice President Media Brand Partnership Manager
#3 Sponsorship Actually, since 2018 the rivals And do you have any additional Switzerland
co-operate the stadium. So, it´s revenue streams, beside the usu-
#4 Player transfers not a problem, in fact it´s a solu- al ones – TV rights, matchday,
tion. We are rivals in the field. In sponsorship and merchandising?
#5 Club stores
business, we are partners. Our membership scheme is quite
relevant. It is in fact the second
How important are your digital biggest revenue stream.
Fortaleza participated in 2019 and platforms and social media chan-
2020 in the EUROCUP. It´s a under nels to generate revenues? Finally, what is your vision for the
13 competition that takes place in It´s still not a big number. We are development of the club over the
Netherlands. focusing on increasing our own next, five to ten years?
club app. There, we have special Fortaleza is one of the teams that
You are responsible for commer- content and exclusive experienc- has the most potential to grow
cial topics, let’s focus on that a es. in Brazil, even in Latin America.
bit. How big is the club’s fanbase? Brazilian football is discussing a
How many ‘contacts’ do you have You recently launched a sustain- league operated by the clubs and
in your database? ability strategy, is that also some- some clubs are being sold, which
The fanbase is over 2 million fans. thing that helps to market the will bring more professional per-
More than 120.000 fans are regis- club, to generate additional rev- formance. PREMIUM PARTNER VERANSTALTER
tered in our club app. We just start- enues?
20 21display them in a simple manner. opinion on the questions them-
WITHOUT THIS In turn working process is any
method that employees use to
create value for the organization.
selves as a learning point for fur-
ther research development. Topics
were aligned in the order they nat-
YOUR YOUTH ACADEMY Understanding what working pro-
cesses are, what types of work-
ing processes an academy leader
urally occur in a player’s develop-
ment pathway, from talent identi-
fication to leaving the club.
“To do the best things in
an academy normally costs
WILL STOP WORKING IN 3, 2, 1... might encounter and how to op-
timize them can help academies
become more efficient and pro-
The starting point for understand-
ing Quality Areas in relation to
money. By looking at this
publication and its findings,
ductive. Asking academy experts daily activities within the acade- academy leaders can get
By Adam Metelski
what they do has helped us gain
valuable insight across. Our initial
my environment is the number
of working processes connected information on which key
list of questions in the survey was with each of those 12 Quality Ar- aspects they should focus on,
made by a team of football experts,
and was refined by experts from
eas. When we overlay the process-
es with the QAs, the one connect- and allocate their resources
different specializations. These ed with the most is Productivity, accordingly, depending on
included coaches, analysts, tech-
nical directors, academy teachers,
with 133 working processes. This
is almost double the number of what is available and what
psychologists, school professors Talent Identification, second on their goals are”
Youth academies can strength- process groups, spanning the en- in an interesting way: “Everything and strategy experts. From this the list, with 78 working process-
en each other and themselves tire youth development pathway. is in this publication! It is up to the list, we then identified a group of es. This is clear evidence that for Liam Brady
through constant cooperation and Our main interest when conduct- clubs to use it, as providers to and topics including talent identifi- clubs, the results of the acade- Former Irish football player and trainer
the sharing of knowledge. This is ing the surveys was to determine producers of players!” cation, the people and structures my’s work and the mechanisms by
where our research comes in – which of the working processes involved in an academy, transition which they bring talents into their
sharing knowledge, and enabling were used by each youth acade- Starting our research we wanted to the first team, decision making system, are the most crucial items
those in the game to have a better my, as well as what their logistics to answer the following questions: and more. In addition, we were on the agenda. Other important
understanding of the overall acad- looked like, and how formally what academies in Europe do to also interested in the respondents Quality Areas from this perspec-
emies ecosystem. Our starting they were used. For the qualitative deliver for their clubs? To whom
point was to follow-up the original part, we carried out semi-struc- are they delivering to? What are
ECA publication from 2017 where tured interviews with 18 academy football experts doing in their dai-
the 12 Quality Areas concept was leaders to capture case studies ly work to ensure they’re bringing
first introduced, and it provided a and best practices (among others: up happy kids, satisfied human
detailed explanation of the differ- Ajax Amsterdam, Atheltic Bilbao, beings, and football players capa-
ent pillars and their impact on the Sporting Lisbon and Olympique ble of succeeding at a profession-
youth development process. Now, Lyonnais). We targeted certain al level? Which working practices
our brand new report includes academies based on several fac- are used most frequently? Which
an enhanced overview of the 12 tors, such as their level of devel- ones are used by the best acad-
QA and each of their sub-compo- opment, recognized success in emies? And which ones are the
nents, demonstrating how they the field of youth development, most intercorrelated? Our goal in
interrelate with academy working and geographical representation asking the above questions was to
processes, and evaluating their of various regions around Europe. arm academy leaders, the football
relative significance via quantita- The interviews allowed us to delve experts within clubs and acade-
tive statistical methods. more into the ‘why’ academy lead- mies, with insight that could help
ers do ‘what’ they do, and ‘how’ deliver more efficiently and effec-
We used two research methods, they conduct their daily activities. tively the aims of their youth path-
survey and interview, to collect As an additional step, we also met way to the children, parents and
our data. On the quantitive side with Liam Brady, an expert within communities you serve.
we used survey, which was spe- the youth academy landscape and
cifically focused on various acad- long-time former director of the The 12 Quality Areas framework
emy-level working processes Arsenal academy, to discuss our enables to recognize patterns with
and centred around a number of results. He summed up our work professional youth academies and
22 2312 Executive Key findings:
91% of clubs have defined selection criteria for youth players
86% of clubs have a scouting department or scouting service
dedicated to their youth academy
81% of clubs have a dedicated training facility for their
youth academy (may be shared with first team)
80% of clubs the Academy Director decides the style of play
78% of clubs have a fundamental goal of strongly relying on
the academy for sourcing its first-team players
highlighting what everyone and
71% of clubs have a technical committee or similar in place almost nobody does. The inter-
66% use biobanding principles in age-group composition views enabled us to understand
more about the ‘how’ and ‘why’
66% of clubs provide a hall of residence for young players
and gave us a deeper understand-
55% of clubs have defined regular goals or KPIs for academy ing of the survey data a first-hand
staff part from sport results account of how academies are
44% of clubs have a Technical-Tactical (te-ta) coach, with being run. Using these working
half of cademies having a coaching methodology depart- processes and Quality Areas has
ment in the organizational structure enabled us to see the primary
focus areas of European youth
45% of clubs estimate market value of academy players
academies; Productivity, Talent
40% of clubs plan ahead for more than four years for their Identification, Human Capital and
Youth Academy Cognitive Care. There appears to
8% of academies measure IQ of players after signing be no hard and fast single recipe
for running a successful academy,
but it’s clear that aligning opera-
tions within it, and the wider club,
can help academies to reach their
tive are Human Capital and Cog- use of inferential statistics helped potential. It helps to identify work-
nitive Care. This seems logical us focus on the relationships and ing processes which might help an
10 most common working processes, carried out by of clubs in survey: when you consider that coaches the inter-correlation between the academy to be more efficient –
and other back-room staff are the working processes. Those work- whether they miss anything from
100% bring children to the club for trial trainings
individuals tasked with delivering ing processes with more inter-cor- the list of what virtually everyone
100% make some kind of assessment of players the various educational and devel- relations suggest they are more does, or want to try to implement
100% have full-time employees at youth academy opment programs to the players. important than others, and if they something that few academies do.
The figure below shows a list of do occur, others might occur too. The latter option could include IQ
98% explain to academy players the rationale behind different stages of
12 Quality Areas and the number Again, this is a learning point; an testing, or progressing from basic
he transition process, such as when they move between age groups, go
of working processes included in academy leader can analyses the social media training, to pro-ac-
out on loan or to a partner club
each Quality Area. correlation of working processes tively educating players on build-
98% make an assessment of the physical capacity of players and compare that with his or hers ing brands. We sincerely hope that
97% scout for talented players Using descriptive statistics en- own set-up, and the intensity of fo- the results and conclusions using
abled us to identify which working cus that is place on each of them. this methodology will be helpful
97% have a formalized football philosophy in place
processes were the most used/ un- in daily work of youth develop-
97% film youth matches for subsequent analysis used within the youth academies. Together, our survey and inter- ment practitioners and experts.
94% enter into communication with parents of potential players This is a new learning point, as views have revealed new learnings Perhaps this methodology will be
it detects what is a ‘must’ to do. about how academies operate. To also useful for club management
94% have a formally defined coaching methodology
This enables an academy leader to recap, our survey revealed ‘what’ to look at their academies from a
compare where is his or hers acad- clubs are doing in their acade- new perspective, and better un-
emy in comparison to the wider mies, including the most and least derstand what youth academy ex-
youth academy ecosystem. The widely shared working processes, perts are dealing with.
24 25THE BUSINESS STORY OF
AL AHLY SC - THE WORLD’S MOST our budget was EGP 333 million, and convenient financing solu- and expanding to other relevant
DECORATED FOOTBALL CLUB increasing to EGP 1.2 billion in
2018. In 2021, our budget already
surpassed EGP2.54 billion, which
tions, empowering people to join
the club and pursue a lifestyle that
meets their needs and aspirations.
sectors.
This implementation of this vision
is a tremendous achievement. The collaboration will enhance will include the establishment of
We focused on boosting the club’s one of the club’s most important many subsidiaries: Al Ahly Foot-
In this article, FBIN had the opportunity to explore the business story of Ah Ahly SC - one of the most financial resources through ex- resources - membership subscrip- ball Company, Al Ahly Sports Ser-
decorated football clubs in the world. Rami Aboushaara - Ah Ahly’s Sports Marketing Coordinator spoke about panding our investments and es- tions, across all of its branches. vices Company, Al Ahly Media Pro-
tablishing the club’s companies to duction Company, Ah Ahly Sports
the club’s recent business development and its long-term vision to 2050. accomplish the club’s ambitions. The club certainly has its interna- Facilities Company, and Ah Ahly
tional presence outside of Egypt. Tourism Services Company. For
By Quang T. Pham The club’s current sponsorship What are the success factors be- instance:
contract was valued at 520 million hind your internationalization
EGP. Next, the satellite broadcast- strategy? Al Ahly Football Company will or-
From a business perspective, families. Since we have numerous More importantly, we tried to find ing rights which Al-Ahly earlier ganize and develop all the club’s
what is the current size of Ahly administrative and technical facil- more sponsorships and partner- sold to Presentation Sports was As mentioned, due to our sporting professional football activities;
SC? How many employees are ities, the employment size could ships that can help our financial 400 million EGP, putting the total success, our brand has become academies; local and internation-
currently working on both the go up to 2000 headcounts, both on situation. Thanks to our success value of the club’s deal with Pre- internationally famous. Whenev- al competitions; marketing activi-
sportive and business sides? and off the pitch. on the pitch, we can easily attract sentation to 920 million EGP. er we go around the world, there ties such as TV rights, sponsorship
new sponsors or investors in key will be an Ahly’s fan there, which rights, merchandise, advertising,
Put in perspective, we probably What is the business case of the regions such as the Middle East Sponsorship accounts for a sub- is a great opportunity, whether it is transfers, new media sales, sports
have one of the biggest structures club during the Covid-19 pan- and Africa. In fact, when you win stantial proportion of your in- for merchandising or membership programs.
in the world. We have one head- demic? trophies, you can attract anyone. come; so, who are your major subscription. We also have prom-
quarter and four branches. The Additionally, our executive board sponsors and partners at the mo- inent academies in Egypt, Dubai, Al Ahly Sports Facilities Company
headquarter is called Gezeira, I believe every sports club suffered responded quickly to the pandem- ment? and soon in Africa such as Sudan will build and manage the club’s
home to our famous and elegant from the pandemic. Still, our pres- ic by gradually moving away from or South Africa. new Olympic city and stadium,
stadium - Mokhtar El Tetsh Stadi- ident - Captain Mahmoud El Khat- brick-and-mortar locations. We have a diverse range of spon- which has its medical, hospitality
um, where our first team bases. ib - and the executive board made sors and partners from different Could you tell us more about Al infrastructure, commercial and
The other four branches include a huge effort not to cut any salaries What is the average annual reve- industries. To mention a few, we Ahly Vision 2050? educational services.
Nasr city, Sheikh Zayed, the Fifth or benefits for players or staff. This nue of the club? Which revenue have Umbro as our kit sponsor;
Settlement, and Luxor. We try to shows the humanity and leader- stream is the most important at WE - a telecommunications com- Al Ahly Vision 2050 was formed Al Ahly Tourism Services Com-
spread our image all over Egypt, ship of our management board. the moment? pany; SAIB - a construction and to adapt to the rapid development pany: a subsidiary specialized in
reach all fans, and provide a great When Covid-19 struck, we did not financial investment firm; and our in the sports industry, both local- touristic services to manage the
sports environment and social en- have fans in the stadium for six Unfortunately, I can’t disclose most recent exclusive strategic ly and internationally. The plan club’s traveling services for its
vironment for them. Ah Ahly is months, which hugely impacted the exact number, but I can give partnership with ValU - a fintech includes generating new revenue teams, members, and supporters,
not only a football, basketball, or us. So we tried to reach them out- you some key insights. The club’s platform company. Particularly, streams and capitalizing on the including transportation, accom-
handball club; it is a unified com- side of the stadium through our budget has increased significantly as a strategic partner for 3 years, club’s financial resources while modation, and hospitality ser-
munity of members, players, and branches and club membership. over the last four years. In 2014, ValU will provide our fans flexible developing the club’s sports teams vices.
Photo: CC BY-SA 4.0
26 27You can also read
