PREMIER LEAGUE CLUBS COMMERCIAL SOURCES OF INCOME

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1 JACK JOHNSTONE CRYSTAL PALACE FOOTBALL CLUB Sponsorship Development Manager PREMIER LEAGUE CLUBS COMMERCIAL SOURCES OF INCOME АПРЕЛЯ 2017 ГОДА «ОТКРЫТИЕ АРЕНА» МОСКВА facebook.ru/marspo

2 1.0 Premier League Clubs Commercial Income Overview 2.0 The Commercial Department 2.1 Hospitality 2.3 Sponsorship

3 My Experience West Ham United FC Corporate Sales Executive Fulham FC Corporate Sales Manager Crystal Palace FC Sponsorship Development Manager

4 Premier League Clubs Commercial Income Overview Aside from the selling of players, a typical EPL Club s source of income can be broken down into 4 key areas. Broadcasting rights Ticketing Retail Commercial

5 Broadcasting rights From this season (2016/17), Premier League Clubs are set to receive 5.5bn for live Premier League TV rights for three seasons. Broadcasting revenues are split as below; 50% of UK broadcast revenue split equally between the 20 clubs 25% of UK broadcast revenue paid in Merit Payments ("Prize Money" per place in the table) 25% of UK broadcast revenue paid in Facility Fees each time a club's matches are broadcast in the UK All international broadcast revenue, and central commercial revenue, is split equally among the 20 clubs.

6 Ticketing A club s matchday revenue is to a certain extent limited by stadium size and the level of popularity, however clubs can maximise revenue within the context of these limitations. E.g. - Ticket pricing model segregated into categories based on the opposition Cat A Popular Opposition Priced High Cat B Average Popularity Price Low - Popular games can also be paired up, therefore in order for fans/members to buy a popular Cat A game, they would have to purchase a Cat B fixture.

7 Retail The majority of retail income is unsurprisingly produced by shirt sales. The Premier League s 20 clubs are expected to sell more than five million replica shirts this season collectively, generating revenues of around 265million. Revenues are split between manufacturers and clubs. The average shirt price last season of an adult home shirt was

8 Commercial Hospitality Special Events Sponsorship Advertising

9 HOSPITALITY SALES

10 Hospitality Clientele Both match-by-match and seasonal clients can be split into two groups, however their reasons for taking hospitality will vary. CORPORATES Entertaining Clients Business Development Rewarding Staff INDIVIDUALS Special Occasion Fan of the club or opposition (HNWI) Season Ticket Holder upgrades

11 Understanding Your Target Market Profiling It is important to identify your current clients. Corporate vs Individuals Industry Sectors Demographics Behaviours Turnover Location

12 Local Competition It is extremely important to understand who your local competition is and the facilities they offer. Here are just some of the major sporting venues in London and the surrounding area. Premier League Football Clubs Championship Football Clubs Wembley Stadium Football & NFL Twickenham Stadium - Rugby Lord s Cricket Ground The Oval Cricket Ground Wimbledon All England Tennis Club The Queen s Club Ascot Racecourse

13 London s Football Clubs

14 Utilising Hospitality Space Effectively After some intensive research into hospitality throughout Europe we found that the demand for executive box space was on the decline with corporates preferring the fine dining restaurant environment with space to network with other like minded individuals.

15 Example 1 London Stadium - West Ham United This research resulted in West Ham United reducing their Executive Boxes from 60 at their previous home at The Boleyn to 12 at the new London Stadium. Restaurant Covers: 4000

16 Example 2 The Clubhouse at Craven Cottage - Fulham Football Club This was also recognised at Fulham FC and 3 boxes were knocked through to create a unique Gin Bar proving very popular to the West London locals.

17 Driving New Business It is important to create a positive, pro-active sales team to drive new business. The team needs to be highly active, cold calling teams, targeting all existing, previous and new clients. The team should be focused on the below; Lead Generation Building a Strong Local Business Network Up Selling Match by Match GA Buyers & STH Outbound Campaigns

18 Corporate Lead Generation for MBM Sales Using our profiling discussed in my previous slide we use this to generate new leads within our surrounding area. Location E.g. London / The South-East Industry Sector What is their key target market? Who would they like to be in a room with? Who are the decision makers? Directors/ Senior Managers? What is their hospitality requirement? Do they entertain clients to win new business or reward staff?

19 Converting MBM Business to Seasonal The real driving force of converting match-by-match business to potential seasonal clients is hands on account management. Service excellence and understanding the clients business needs will enable the account manager to unlock upsell opportunities. On a matchday the team would be expected to meet all match day and seasonal clients, upselling, booking for future matches and making sure the clients are enjoying the experience as much as they possibly can be.

20 SPONSORSHIP SALES

21

22

23 Exclusive Rights Available

24 Exclusive Rights Available

25 Exclusive Rights Available

26 Approach Consultative Process To maximise the opportunity of getting in front of the key decision makers and developing long term business relationships with potential brands, it is important to constantly develop your brand network and keep the club at front of mind. Lead Generation Work with agencies & corporate networks to get a better understanding of specific sectors through one-to-one meetings with key decision makers. Identify key brand segments by sector and marketing position, such as challenger brands / brands seeking global exposure / brands launching in the UK or specifically in London, or competitors to the leading blue chip brands looking to make an impact in the UK. Lean on the network for face to face introductions, ideally at a match, and start the sales process by providing the client with an unforgettable experience.

27 Consultative Process Arrange a follow up to meet the potential brand and understand their future plans, challenges & general business landscape. Discuss business objectives for the brand with its key stakeholders and understand their personal and business motivations. Jointly identify key objectives on a local and global level where applicable. Devise a marketing & activation plan using Club channels & key inventory to fulfil these key business objectives. Identify any specific product marketing / showcase opportunities to drive additional value and return on investment. Assess effectiveness regularly throughout the relationship term & re-evaluate the use of Club inventory to maximise effectiveness for the brand. Co-ordinate advertising & product messaging in line with the brands overall global marketing plans, embracing change & adapting to market challenges.

28 CREATING A COMPETATIVE ADVANTAGE

29 Access Create unrivalled access for brands, making them truly feel like part of the team. This is not limited to the playing staff. Access to the boardroom staff, the training facilities, the fans and other elements that specific brands may find of value.

30 Creativity & Flexibility Have the freedom to be creative with our assets and think outside the box to increase the relevant engagement channels for brands.

31 Proactive Activation & Support Work as an extended arm of the brand s marketing team to make the brand an indispensable part of the club

32 CRM & Data Focus Provide targeted communication and in-depth insight into our fanbase. Help brands develop a communication strategy to target the right people at the right time. Drive data collection opportunities through sponsorship channels to increase the active transacting customers on our database.

33 A Plan For Future Investment Provide brands with an exciting story to be a part of, showing a clear vision and investment timeline for the Club. Take them on the journey!

34 THANK YOU! АПРЕЛЯ 2017 ГОДА «ОТКРЫТИЕ АРЕНА» МОСКВА facebook.ru/marspo

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