Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...

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Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
EFDN Conference April 13, 2021

Crowdfunding and
Sustainability in
Sports
           This project has received funding from the European
           Union’s Horizon 2020 research and innovation
           programme under grant agreement No 893858
                                                                 // 1
Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
International Projects in Sustainable Football   3
        Crowdfunding as a Means to Sustainability      4
  Communicating Sustainability in Your Community       5

CONTENTS
                                                           2
Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
International
 Projects in
 Sustainable
   Football
                            SDG
                            Striker
                PlayGreen

                              // 3
Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
Project Details
                         Partners:

                         •   Sant’Anna School of Advanced Studies (Coordinator)
                         •   ACR+ (Association of sustainable cities)
                         •   AMIU Genova
                         •   Italian National FA
                         •   Romanian National FA
                         •   Swedish National FA
                         •   Lipor (Porto Portugal)

                         Funding: European Union LIFE Programme

                         Main Objective:
https://lifetackle.eu/
                         Develop replicable strategies for more sustainable football
                         stadiums, especially with regard to matchday sustainability
                         in issues such as waste management and transportation.

                                                                                       // 4
Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
Key Findings                                                     Clubs are motivated to take environmental
                                                                  action
        Survey of Club Mangers

https://lifetackle.eu/news/article/life-tackle-publishes-a-new-
report-on-the-survey-of-football-managers

                                                                                                              // 5
Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
Key Findings                                                  But concrete sustainability measures lag
                                                                  behind
      Survey of Club Mangers

https://lifetackle.eu/news/article/life-tackle-publishes-a-new-
report-on-the-survey-of-football-managers

                                                                                                             // 6
Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
Key Findings
                                                              Extremely strong environmentalist attitudes
                                                              amongst football fans
  Survey of fans on Match days
  1,423 fans in Italy and Sweden

https://lifetackle.eu/assets/files/Report_survey_manager_LI
FE_TACKLE.pdf

                                                                                                            // 7
Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
Key Findings
                                                              Fans have an expectation that football clubs
                                                              take environmental action
  Survey of fans on Match days
  1,423 fans in Italy and Sweden

https://lifetackle.eu/assets/files/Report_survey_manager_LI
FE_TACKLE.pdf

                                                                                                             // 8
Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
Project Details
                                    Partners:

                                    •   Ecoserveis (Coordinator)
                                    •   Sant’Anna School of Advanced Studies
                                    •   TDM2000 (youth activism network)
                                    •   French National FA
                                    •   Norwegian National FA
                                    •   Swedish National FA
                                    •   MAFA (Lithuanian grassroots football assoc.)
                                    •   acff (Belgian grassroots football assoc.)

                                    Funding: ERASMUS+ EU Programme

https://www.greencoacherasmus.eu/   Main Objective:

                                    Improve the monitoring and sustainability of football
                                    events of all sizes.

                                                                                            // 9
Union's Horizon 2020 research and innovation - Crowdfunding and Sustainability in Sports - European ...
Project Details
                                   Partners:

                                   •   Ecoserveis (Coordinator)
                                   •   ENGSO (grassroots sport network)
                                   •   Estonian National FA
                                   •   Malta National FA
                                   •   MAFA (Lithuanian grassroots football assoc.)
                                   •   Voetbal Vlaanderen (Flanders grassroots football assoc.)

                                   Funding: ERASMUS+ EU Programme

                                   Main Objectives:
                                   1. Create volunteering opportunities focused on sport and
                                   environment for young people to engage with
https://www.playgreenproject.eu/
                                   2. Create a European network of organisations enhancing
                                   sustainability in grassroots sports through volunteering
                                   programs and sharing of good practices

                                                                                                  // 10
Project Details
              Partners:
              •   Ecoserveis (Coordinator)
              •   Energy Institute at JKU (Scientific lead)
              •   Norwegian National FA
              •   Scottish National FA
              •   Portuguese National FA
              •
SDG Striker       EFDN (Lithuanian grassroots football assoc.)

              Funding: ERASMUS+ EU Programme

              Main Objectives:
              Develop concrete ways to improve sustainability in
              football organisations in three major areas:
              1. Use of renewable power (PV)
              2. Energy efficiency
              3. Environmentally-friendly artificial turf

                                                                   // 11
Turf filler Alternatives
                                                    Potential Alternatives:
Standard infill material:                           TPE (Thermoplastic Elastomers)
crumb rubber from tires                             EPDM (Ethylene Propylene Diene Monomer)
that are ground up and                              Sand
recycled. SBR (styrene-                             Organic materials: Coconut fiber/husk/peat,
butadiene rubber)                                    cork, rice husk, walnut shells, sugarcane,
Used by 90% of                                      wood fibers
 existing turf in Europe
 and USA

                                                                  Source: Eunomia Research & Consulting Ltd for FIFA 2017
                                                                                                                            // 12
   Source: Lassen et al. 2015; Bauer et al. 2017
The interesting problem of
SDG Striker   turf-filler
              The Problem:

              • Common artificial turf filler (SBR) release
                microplastics into the environment
              • ECHA plans to ban this filler within the next decade

              The Solution:
              SDG Striker will test and assess Wood Chip infill as a
              alternative

              1. Is this an environmentally-friendly alternative?
              2. Does it work in practice?

                                                              // 13
Artificial turf football pitch installations in Europe

  Source: Hann et al. 2018

                                                         // 14
Project Basic Info

    Coordinated by Energy Institute JKU, in Linz,
                                                    Partners
    Austria

    Began in Sept. 2020, runs through Aug. 31,
                                                     Energy behavioral        Energy in              Crowd-funding
                                                     scientists               buildings experts      Experts
    2023

    9 Partners in 7 countries

                                                     International
    A realization of the UEFA - EC cooperation                                Football Association   Azerbaijan Football
                                                     communications           of Ireland             Association
    agreement

    MFF as a private FC Lighthouse
                                                      Network of football      Energy services        French Football
                                                      clubs, leagues, and
                                                      football associations    company                Federation

                                                                                                                           // 15
The GREENFOOT Concept
Energy sustainability for football buildings;
       Energy citizenship for football fans

                                                //
Value Chain for Energy
Efficiency Improvements   // 17
Get involved with GREENFOOT!
•   Join the project mailing list, and find out how your organization can take advantage of GREENFOOT benefits to:

     •   Your CSR goals

     •   Your relationship with your fans and community

     •   The comfort and functionality of your buildings

     •   The health of your community and your planet

     •   Your bottom line – save money and create revenue!

•   Sign up for our Mailing List: greenfoot-project.com

•   Or Follow: @JedCohenEcon on Twitter

                                                                                                               // 18
Social Media

 @greenfoot2020   GREENFOOT Project   @greenfootproject

                                                          // 19
Deliverable 2.1:
               Report on best practices for successful
               community-based investments in Sports
                 Available at: Greenfoot-project.com

Crowdfunding
 in European
    Sports

                         Photo from Unsplash.com and Vienne Reyes

                                                                    // 20
Definition of Crowdfunding
  Crowdfunding is the practice of funding a project or venture by
  raising small amounts of money from a large number of people,
  typically via the Internet.

  • Open call to raise funds for a specific project

  • Anyone with access to the internet can participate (potentially)

  • Through an Internet-based platform (specialised website)

  • Offers tangible or intangible benefits in exchange for each
     financial contribution
Slide courtesy of European
Crowdfunding Network                                                   // 21
Four types of crowdfunding
                                                        REWARDS
                         EQUITY
                                                       Supporters
                        Investors
                                             Good for: Charity, research, pre-
              Good for: Start up business
                                              sales without giving up equity
                  Returns: 5-10 years
                                                 Rewards: 3-12 months
                             $$$
                                                            $$

                        LENDING                         DONATION
                        Investors                       Supporters
            Good for: Main street Business           Good for: charity
                   Returns: 1-3 years               Rewards: Progress
                             $$$                             $

Slide courtesy of European
Crowdfunding Network                                                             // 22
The EU Crowdfunding Market
                                                                        • Crowdfunding market in the EU is steadily growing

                                                                        • Lending and Equity are the leading models

                                                                        • Reward-based crowdfunding is increasing
Mil

                                                                        • Average success rate per model:

                                                                            • Donation-Based: 69%

                                                                            • Reward-based: 66%
      Cambridge Centre of Alternative Finance, The Global Alternative
      Finance Market Benchmarking Report, 2020
                                                                            • Lending: 83%

                                                                            • Equity: 81%

 Slide courtesy of European
 Crowdfunding Network                                                                                                 // 23
//
//
Barriers and Drivers to Crowdfunding
 Success in Sports
Type of                                       Barriers                                                               Drivers
crowdfunding
                   • Risk                                                              • Environmental appeals, which bring in a broader group of investors

                   • No belief in the durability of the investment                     • Involvement of people, faces to the campaign, especially women
Green and/or
energy campaigns   • Poor understanding of the purpose of the investment               • Wide network, multiple points of contact to potential funders

                   • Competitive situation – if there are many campaigns with          • Community benefits
                     similar purpose

                   • Non-transparent structure of investment and ownership             • Amplifies a commitment to an idea

                   • Non-transparent risk structure                                    • Connection to the fandom/sport community
Sports-related
campaigns          • Usually used for funding individual athletes or smaller teams     • Creative multimedia, many pictures
                     of the second league, barriers to funding in the case of larger
                                                                                       • Transparency of ownership
                     entities may be encountered
                                                                                       • High levels from fewer individuals may be more feasible due to
                                                                                         strong emotions.
                                                                                       • Smaller levels may be driven more by emotional payback and
                                                                                         ability to support the club.
                                                                                       • Desire to support the club/goal
Reasons to consider
Crowdfunding:
1. Gives fans a unique opportunity or
   investment
2. Can help quickly finance a project with a
   low interest rate.
3. Publicizes your project / CSR push by
   default
4. Grow closer to your fan base through join
   positive action
5. Awareness building –
          Transformative potential comes
          from leading society towards a
          sustainable future
                                                           Body Level One

                                               Photo by Jordon Conner on Unsplash
                                                                                    // 27
Leading Society Towards a
Sustainable Future
• We need citizen participation to enable a sustainable energy system and a
  sustainable future

• Rule of thumb: ~10-20% of EU citizens can be motivated to join the energy
  transition. Depending on the incentives and the topic (financing, tech
  adoption, service provision, power generation, etc.)

• Football is the most popular sport in Europe and the World; 1.12 bil. People
  watched France vs Croatia in the World Cup

• Energy topics are rarely available in crowdfunding, crowd-investing schemes

                              Crowd
                                                         Transformational
                             funding
                                                         potential!

                   Energy
                                     Football
                  Efficiency

                                                                                 // 28
Communicating
sustainability to your
fans and community
 Best practices from the scientific
            perspective

                                      // 29
What to communicate?
• Your organization’s actions on sustainability

• Concrete actions that fans and community members
  can get involved in

• Immediate negative impacts of environmental
  degradation in your area

• Immediate positive impacts of environmental actions
  in your area
                                                        // 30
How to inspire sustainable action?
• Focus on the benefits to the human environment
   • Job / economic opportunities
   • Improvement to local environmental quality
   • Improvement to human health (air quality!)
   • Improvement to the status and architectural appeal of
     the area

• Motivating sustainability as a reaction to Climate Change
  is generally less impactful

• Offer immediate follow-up through concrete (small) steps
                                                              // 31
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