THE FUTURE WFS SPECIAL REPORT THE VISION FOR 2022 - World Football Summit
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WHERE THE FOOTBALL INDUSTRY MEETS
THE FUTURE
WFS SPECIAL REPORT THE VISION FOR 2022
APRIL 2019
WFS 2 WFS SPECIAL REPORT EDITORIAL 3 THE FUTURE OF FOOTBALL INDUSTRY
World Football Summit (WFS) is the International event of the
football industry, gathering the most influential professionals in
order to discuss the most relevant topics. One of such subjects is
how these professionals are envisioning the future of the football
industry and with this objective in mind, WFS has undertaken a
survey with the participation of WFS Advisory Board members
and collaborators. WFS would like to thank the members of the
Advisory Board.
This report delves into key industry trends such as the digital
transformation and the use of technology and innovative ele-
ments in football which can enhance the fan experience (espe-
cially for younger audiences). Besides, it provides insights into
the appearance of new media channels that are changing the
sports viewership by broadcasting, livestreaming and posting
sport content; i.e “social media” players.
Lastly the changing landscape of revenue streams of the football
industry, how experts envision its future and which new oppor-
tunities bring for stakeholders.
All of that give us a positive outlook for football in the coming
years.
2
ADVISORY BOARD 4 WFS SPECIAL REPORT ADVISORY BOARD 5 THE FUTURE OF FOOTBALL INDUSTRY
ANDY STALMAN CARLOS CANTO EBRU KÖKSAL IRIS CÓRDOBA
Expert in Branding. CEO Senior Advisor General Manager
“Mr. Branding”.
JAVIER GÓMEZ JAVIER SOBRINO JULIO SENN JUN ZHAO
Corporate General Manager Strategy & Knowledge Managing Partner CEO
Director
JURGEN GRIESBECK LUIS VICENTE MOUNIR ZOK PABLO DANA
Founder and CEO Chief Digital Co-founder CEO
Transformation and Managing Director
& Innovation Officer
N3XT
SPORTS
PATRICIA RODRÍGUEZ RAYDE LUIS BÁEZ RICK PARRY SAM LI
Member of the Founder Chairman Head of Content
Advisory Board Acquisition and Strategic
Partnership
Bramley Corporation Ltd
METHOD 6 WFS SPECIAL REPORT INDEX 7 THE FUTURE OF FOOTBALL INDUSTRY
SURVEY METHODOLOGY CONTENTS
Respondents were asked to rank in a scale of 1 - totally
01 GENERAL AND OWNERSHIP
disagree - to 10 - fully agree - several statements about
Survey Results
the future of the industry in three main areas:
Economic and social importance of football
Ownership
01. GENERAL AND OWNERSHIP 02 INCOMES
Survey Results Key Areas
02. INCOMES Distributor disruption: new global media ecosystem
Commercial and venues
03. USE OF TECHNOLOGY IN THE FOOTBALL INDUSTRY Transfers and prizes
03 USE OF TECHNOLOGY IN FOOTBALL
Survey Results
eSports and fantasy sports revolution
Using technology to improve football stadiums
0 1 2 3 4 5 6 7 8 9 10
Totally disagree Fully agree REFERENCES
1
01 8 WFS SPECIAL REPORT 01.GENERAL AND OWNERSHIP 9 THE FUTURE OF FOOTBALL INDUSTRY
SURVEY RESULTS
The football industry in 2022: Envisioning its future
0 1 2 3 4 5 6 7 8 9 10
The economic importance of football will increase by 2022
9,57
The social importance of football will increase by 2022
9,07
Clubs will be managed in a more profesionalized way by 2022
8,71
By 2022, football will still be sport #1 among Millenials and Native Digital
7,86
By 2022, a super European league will become a reality
7,71
Investment funds will acquire more clubs by 2022
7,43
Clubs listed in the stock exchange market will increase by 2022
7,36
GENERAL AND
By 2022, the “franchise” business model will become a reality in football
6,93
Clubs owned by “members” will increase in number by 2022
5,79
OWNERSHIP
KEY TAKEAWAYS
The economic and social importance of football will increase in the next decade.
Investment funds will acquire more clubs by 2022.
Clubs will be managed in a more professionalized way.
01 10 WFS SPECIAL REPORT 01.GENERAL AND OWNERSHIP 11 THE FUTURE OF FOOTBALL INDUSTRY
ECONOMIC AND SOCIAL IMPORTANCE Another important aspect is that respondents consider that by 2022, football
will still be among the favorite sports for Millennials and Natives Digitals as it
OF FOOTBALL has a huge potential in appealing to these generations. For instance, clubs will
Football is of significant importance worldwide; in the WFS survey, when be able to offer extremely valuable content to them by improving their viewing
asked to rank their perception of the football industry’s growth in the future, experience through POV videos and AR offerings (e.g with player statistics) or
respondents pointed that both its economic and social importance will in- supplying them with new experiences
crease by 2022 (with an average grade of (e.g apps that allow fans to compare
9.57 and 9.07 out of ten respectively). their performance with those of their
THE ECONOMIC AND
favorite players and learn from them).
SOCIAL IMPORTANCE As football keeps gaining popularity, we
OF FOOTBALL WILL expect an increase of its significant eco- In fact, the diagram below shows that
INCREASE BY 2020 nomic impact not only with its direct con- football tops the chart in terms of peo-
tribution to the city/country where com- ple’s interest in sports (data comes
petitions take place (stimulation of the from a Nielsen’s survey carried out in
tourism sector: job creation, tax receipts, investment in facilities, hospitali- 18 markets) and is expected to contin-
ty, etc.) but through indirect support to growing industries; tech (e.g sports ue to dominate the global sports market. What’s more, the football fan-base
start-ups, gaming), gambling and media industries. is growing and becoming more international with USA, Mexico, Russia, China
and India representing some of the most interesting growth markets.
Besides, football with such huge reach around the world is aiming at improv-
ing the society around it through increasing participation in the sport. In the This may be also related to the fact that by 2025, a super European League
next decades, we will see an increase in community programs – investment might become a reality (respondents ranked it with an average score of 7.71
in facilities/refurbishments, teaching of skills/values inherent to the sport and out of 10).
investing in education/training–.
PERCENTAGE “INTERESTED” OR “VERY INTERESTED” IN MAJOR SPORTS
Nielsen Sports: World Football Report 2018
Football
40%
OWNERSHIP Basketball
In terms of management and ownership, respondents believe that clubs ac- 40% Track & Field Athletics
Tennis
quired by investment funds will increase by 2022 and that there is growth po- Motorsport
Cycling
tential for them to be managed in a more professionalized way. Therefore, it 20% MMA
Baseball
is expected clubs to be transitioning from just a football club to a business-ori- Cricket
ented organizational structure focused on the leisure and entertainment in- Golf
10% Rugby
dustry. On the contrary, respondents don’t expect clubs owned by members
to increase in the next decade.
2013 2014 2015 2016 2017
2
02 12 WFS SPECIAL REPORT 02.INCOMES 13 THE FUTURE OF FOOTBALL INDUSTRY
SURVEY RESULTS KEY AREAS
0 1 2 3 4 5 6 7 8 9 10
PRIZES
7,88
— International Competitions (Clubs)
8,79
— International Competitions (National teams)
7,86
— Domestic Competitions
7
TRANSFERS
7,64
— Players
8,14
— Coaches
7,14
AUDIOVISUAL
7,31
— “Social Media” players
8,36
— OTT NON-Football industry properties
8,14
— Influencers
8,07
— OTT Football industry properties
8
— PPV
5,86
— TV
5,43
INCOMES
COMMERCIAL
7,31
— Retail space (online)
8,36
— Sponsorship
7,71
02 WFS SPECIAL REPORT 02.INCOMES THE FUTURE OF FOOTBALL INDUSTRY
DISTRIBUTOR DISRUPTION:
0 1 2 3 4 5 6 7 8 9 10 NEW GLOBAL MEDIA ECOSYSTEM
OFF THE BOX | Time spent watching traditional TV*
— Licesing
7,36
— Merchandising
7
— Friendly matches
6,93
— Football academies
6,64
— Catering and F&B (outside the venue)
6,57
— Retail space outside the venue
6,93
VENUES
6,70
— Hospitality
7,14
— Retail (in the main venue)
7
— Catering – F&B (in the main venue)
7
— Games ticketing – members
6,64
— Games ticketing – visitors
6,57
— Museums Tours
5,86
KEY TAKEAWAYS
New platforms (OTT, social media, etc.) will increasingly the media ecosystem
and enable the creation of new content.
Exploring monetization opportunities will still be a top priority.
GREATER FUSION
Sponsorship is one of the revenue streams expected to grow the most and will
find new opportunities (through digital marketing and monetization of data).
OF SPORTS AND
ENTERTAINMENT
Prizes and transfers are likely to increase in the future.
02 16 WFS SPECIAL REPORT 02.INCOMES 17 THE FUTURE OF FOOTBALL INDUSTRY
TRANSFERS AND PRIZES
According to respondents, the transfer market is an important part of the foot-
ball industry and in the future, player transfer fees will continue to climb and re-
main as a key revenue stream. PwC has predicted they could exceed £100m by
2024/25 as spending continues to follow the escalating growth of club revenues.
COMMERCIAL AND VENUES Besides, digitalization is allowing the football fan-base to grow outside historical
WFS’s Advisory Board members believe that the decreasing efficiency of mea- geographies and become more international. Therefore, we will also see a rise in
sured media (traditional advertising) and new advances in technology will con- the prizes revenue stream (specially in clubs in international competitions).
tribute to an exponential sponsorship’s growth. In fact, innovation and data
gathering will optimize sponsorship by providing sponsors with a better un-
derstanding of fans bases, the abil-
GROWING SPONSORSHIP ity to anticipate to their needs and
offer tailored content (e.g with rel-
REVENUES OPPORTUNITIES
evant promotions) and new mon-
GENERATED BY DIGITAL
etization possibilities. Furthermore,
MARKETING we will see:
INCREASE OF GLOBAL SPONSORS INCREASE OF PRICES PAID BY
INVESTMENT SPONSORS
ESPECIALLY WITH TIER AS FOOTBALL BENEFITS FROM A
1 PROPERTIES GROWING GLOBAL VISIBILITY
According to WFS experts, non-broadcasting revenues will still be extremely
important for the whole sector such as commercial (including merchandising
and licensing) and match day (including catering, retail on-site and corporate
hospitality sales). Ticket sales, museum tours and retail spaces outside the
main venue will go down the list of growing revenue streams while innovation
will bring new opportunities in e-commerce and online sales (e.g hyper-target-
ing platforms that are able to intelligently adapt and offer customized access to
fans according to their interests). Indeed, retail space online is identified as the
first growth driver for the future of incomes (average grade of 8.36 out of ten).
3
03 18 WFS SPECIAL REPORT 03.USE OF TECHNOLOGY IN FOOTBALL 19 THE FUTURE OF FOOTBALL INDUSTRY
SURVEY RESULTS
Innovative elements in the Football Industry
0 1 2 3 4 5 6 7 8 9 10
Artificial intelligence
9,29
Augmented reality
9,14
Big Data – analysis of teams-game strategy
9
Video Assistance Replay (VAR)
8,86
eSports
8,86
Cashless
8,79
USE OF
Blockchain
8,71
Virtual Reality
8,71
Big Data – physical performance
TECHNOLOGY
8,71
Wearables – performance
8,43
eTextiles
8,43
IN FOOTBALL
Big Data – for transfers
8,29
Gamification
8,21
Chatbots
7,9303 20 WFS SPECIAL REPORT 03.USE OF TECHNOLOGY IN FOOTBALL 21 THE FUTURE OF FOOTBALL INDUSTRY
To start with, the use of technology in sports is increasing rapidly and new
elements are appearing to improve performance aspects for both the play-
ers and referees on the pitch. Respondents identify artificial intelligence and
0 1 2 3 4 5 6 7 8 9 10 augmented reality as the first growth driver for football technology (average
grade of 9.29 and 9.14 out of ten respectively).
Facial recognition (security in the stadia)
7,93
THE PROVISION We can already see it through a first
wave of activity data with the inclusion
Fantasy Sports AND PROCESSING
7,93 of technologies such as the Video Assis-
OF MATCH DATA WILL
tant Referee, leading to new possibilities
Geolocalization
7,71
ENHANCE PLAYERS’ for the future like sensors in the fabrics
PERFORMANCE of players’ kits. Thanks to new Augment-
Daily Fantasy Sports
7,64 ed Reality tools referees will get to see
the action from any angle in real time
Drones
7,50
and avoid game-changing situations (dubitative goals, penalty, red card inci-
dents, etc.).
On-body cameras (referees)
7,14
According to WFS’s experts this is only the beginning; textile or wearable and
On-body cameras (players) sensor technology will come into play to complete a technical ecosystem
6,64
and get a better insight into football players’ and team performance. During
On-body cameras (staff and coaches) matches, this kind of electronic performance and tracking systems (EPTS)
6,57
will provide more accurate positioning and biomedical data that will facilitate
decision-making (e.g. transfers, game strategy, recovery, injury prevention).
KEY TAKEAWAYS Moreover, WFS members agree that data collection will be key for transfers
Electronic performance and tracking systems will unleash their full potential. analysis and for increasing fan engagement by allowing fans to view in-depth
player statistics as matches are broadcasted (using augmented reality apps
Match-data and statistics will improve team performance and fan engagement. linked to live in-game data). Not only that but fans will have more flexibility in
eSports is on to become established as one of the leading sports globally. terms of football matches’ consumption.
For instance, they will have the means for enjoying immersion experiences
Venues of the future will become smart connected stadiums that enhance thanks to Virtual Reality tools that will teleport themselves onto the sideline of
fan experience. the game and seat wherever they want (e.g use of 3D simulation to do a vir-
tual stadium visit). VR and AR will also bring value to sponsors for activations
Technology is the key lever to the revenues increase. (specially in clubs in
and teams for training purposes.
international competitions).03 22 WFS SPECIAL REPORT 03.USE OF TECHNOLOGY IN FOOTBALL 23 THE FUTURE OF FOOTBALL INDUSTRY
Likewise, “drones” or mini cameras will possibly appear to follow players According to Newzoo, a provider of eSports market intelligence, the global eS-
around and cover absolutely every move. Similarly, fans will be able to see the ports revenues are expected to reach $1,650 million in 2021 (with a sustained
action from the players’ point of view (POV devices). growth from 2018) with media rights being the fastest-growing revenue stream
(2016-2021: CAGR of +49.v8%).
ESPORTS AND FANTASY SPORTS Respondents believe that football properties will respond fast and link to this sec-
tor with such growth potential with video games to connect millions of fans (FIFA
REVOLUTION game is already booming interest with new competitions: FIFA eWorld Cup). Ac-
When talking about new consumer phenomenon, gaming is emerging as a com- cording to Radiant Insights, fantasy sports market is also anticipated to witness
petitor for the football fans’ attention but at the same time, appearing as an op- impressive growth and will post a staggering CAGR of more than 11% by 2025.
portunity. Esports viewership and popularity has grown drastically (thanks to the
growth of online streaming gaming channels and the link with Virtual Reality) and
according to WFS survey’s respondents it is on course to become established as
one of the leading global sports (average grade of 8.86 out of ten) USING TECHNOLOGY TO IMPROVE
FOOTBALL STADIUMS
First of all, we are already seeing increased attempts to raise venue security and
eSports REVENUE GOWTH
WFS members expect that digital solutions will come to maximize fan safety (e.g
Font: 2018. 2018 Global eSports market report. Newzoo.
facial recognition, electronic fingerprints or video analytics).
Brand investment Media rights, advertising, Total Media rights, advertising,
sponsorship sponsorship, merchandise and
tickets, game publisher fees
Besides, it is known that digital native fans have much higher expectations in all
the different occasions they interact with their favorite club. Then, these smart
stadiums will have models to manage fan behavior and technology will contin-
ue to evolve in order to change the game
+27,4,% experience through new tools such as
TECHNOLOGY WILL geolocation (e.g remote ordering of food
+38,2%
+33% ALSO COME TO or guidance to the toilet with the short-
FOOTBALL STADIUMS est queue) and other innovations like 3D
holographic projection (e.g to watch away
OVER THE NEXT
matches in the stadium) or smart seats
$493 $655 $906 $1650 DECADE
(with touchscreens and entertainment
$350 $468 $694 $1385 features. i.e. replays).
Finally, respondents are positive about changes in the payment systems with a
2016 2017 2018 2021 growing number of stadiums providing cashless experiences to customers (by03 24 WFS SPECIAL REPORT 03.USE OF TECHNOLOGY IN FOOTBALL 25 THE FUTURE OF FOOTBALL INDUSTRY
having one app for many purchases) and see also blockchain taking hold in foot-
ball (e.g bringing benefits in advertising measurement impact and transparency
for ticket selling, betting and transfers).
Ticketing
& Accreditation
Fan content
Player statistics,
goal replays, etc.
Merchandising
Seat location and
geolocation services
Food & drinks, toilet queues
scanning, etc.01
REFERENCES 26 THE FUTURE OFWFS
FOOTBALL
SPECIAL
INDUSTRY
REPORT
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