Sports sector 10 minutes on Sport

Transcription

1 Sports sector 10 minutes on Sport July 2016

2 Introduction The start of the year are some of the most eventful in Australia s sporting calendar with the Australian Open, T20 Cricket and Grand Prix bringing Australia to the front and centre of the world stage has been another successful time, where Australia and its athletes have been proudly showcasing their talent globally. This edition of 10 minutes on Sport focuses on the way in which funding is provided to sporting organisations in Australia, which enables its athletes to compete at the highest level and to which extent these funds are subject to scrutiny. There is now a greater flexibility in the way funds are used, which means increased responsibility and accountability is required to ensure these drive successful outcomes. Recent events, including the ban on the Russian athletics team, Maria Sharapova s ban, and the suspension of Essendon Football Players have also highlighted the need for a strong sports integrity framework for athletes and individuals that are beneficiaries of such funding. We also celebrate the rise of women in sport from an invisible force to one that is suddenly making headlines, sometimes for the wrong reasons, however more often than not as winners on the international stage. It would be hard to open a newspaper, see social media or watch TV recently without seeing one of our successful teams featured like the Matildas, Southern Stars or Diamonds, as well as standout individuals like Anna Meares and Michelle Payne. Also included in this edition is the findings of a research study that has assisted with in identifying the primary reasons that whilst Australia is acknowledged as a globally successful sporting country, this has not translated into the creation of internationally recognised Australian sporting brands. These are the articles that follow: 1. Sports integrity Building a framework to enhance value 2. Developing and promoting an innovative sports industry the necessity to be born global to effectively be able to successful in global markets 3. Diversity in Sport unleashing human potential with a fresh perspective on talent and diversity. Looking forward in has been and promises to be an exciting year for sport in Australia, who will continue to record strong participation in all major international sporting events. The Rio 2016 Olympic Games are just around the corner, and are a great way to test the effectiveness of development programs, and the increasing investment Australia makes into sport. These events also bring opportunities to reach out and connect with, where we can provide expertise in a number of ways, which will be explored in this and future editions of this publication. As always we welcome your feedback and encourage you to connect, share and collaborate with your fellow colleagues We hope you enjoy 10 minutes on Sport. What we've really done is provided sport with the responsibility and accountability to determine for themselves what and how they will achieve their own success Matt Favier, Australian Institute of Sport Andrew Barlow Partner, Assurance P: +61 (3) E: andrew.barlow@pwc.com Sarah Carter Manager, Assurance P: +61 (3) E: sarah.carter@pwc.com 2

3 Sports integrity Scrutiny, governance, funding Increased scrutiny As the ease of access to information continues to accelerate, individuals, clubs and even sporting organisations can be thrown into the spotlight in a matter of moments. Whilst this has many positive factors with live content able to be streamed immediately across the globe, it warrants a governance structure that manages risk, measures outputs and operates effectively. Market research suggests that many sporting codes continue to be run based on structures established over 30 years ago, which is proving inadequate for the current environment. The millennial generation attention span has decreased from 12 to 8 seconds, whilst their priorities have moved from financial reward to well being and health & safety. Governance Culture, Partnership, People Boards should compose individuals with the right skillset, which balances sports and commercial expertise with a knowledge of the appropriate risk framework. Creating a culture of trust and confidence needs to be at the forefront of priorities this gives athletes and other stakeholders an ability to recognise risk, and provide an avenue for reporting this in a timely manner. Part of the solution in creating this, can be through implementing a level of independent review of statutes, rules, regulations and disciplinary procedures that will strengthen the risk framework and governance structure of an organisation. Independent reviews will also increase the confidence of athletes with regard to research into their health and safety associated with competition. Sports boards are declaring measures that are being taken to protect their players from injury, but there is a need for a framework to verify this. Distribution of funding The Australian Government has invested in excess of $1.2b in four years. Funding models have developed with a greater amount of flexibility over where monies are spent. With this greater level of flexibility, there comes a increased level of responsibility and accountability over where the funds are spent, how successful the investment has been and whether it could have been of better use elsewhere. Administrators need to decide the balance between elite & participation level investment, gender split, as well as the mix between coaching, officiating, governance support and educational opportunities. With the right performance review process, the right governance framework to measure risk and reward, stakeholders can achieve assurance that funds are being used in the most effective way possible. Sarah Carter Manager, Assurance P: +61 (3) E: sarah.carter@pwc.com 3

4 Australian Sports Technologies Network Developing and promoting an innovative sports industry Australia is acknowledged as one of the most successful global sporting countries, however, this does not correlate to an equivalent status of globally recognised Australian sporting brands. was engaged by the Australian Sports Technologies Network (ASTN) to complete a research study to further understand how Australian sports manufacturers are placed within the context of the global industry and some of the global opportunities for Australian sports manufacturers. Using s Vibe survey, we conducted a number of surveys with members of the ASTN, as well as a number of interviews to identify the problem as well as the key considerations for a start-up when building a suitable market entry business plan, focusing on US, China & India geographies. Born global, die local We found that a number of companies do not have the belief from the outset of being successful in global markets and therefore solely focus on the Australian market. This mindset often leads to lost opportunities overseas, resulting in local companies either being acquired by larger overseas companies, or an overseas company that beats them to market in a particular region with a similar product. Our findings Business plan and funding (capital) Many start-ups fail to prepare an adequate business plan, attempting to sell the idea rather than a tailored strategy that adequately addresses the differences in markets and supply chains. Funding is often raised too late, with companies being under-capitalised as part of their foreign strategy. Customers We found that less than 10% of companies conducted a detailed consumer analysis prior to the market entry. It is critical to have an tailored marketing strategy by obtaining a strong understanding of consumer behaviour, especially in complex diversified markets such as China & India. Product design and manufacture Largely due to the lack of consumer analysis, product launches often get drawn out as engineers attempt to create the perfect product, without knowing the needs of the target consumer. In increasingly competitive markets, timing is often the indicator of success. People and talent Partnering with the right people overseas is important in ensuring that they have a vested investment in the product this needs to be a robust process which may need to be supported with own individuals on the ground and ensuring that they facilitate a strong network of relationships is paramount to long term success. Less than 10% of companies conducted a detailed consumer analysis prior to market entry Where to from here? To close these gaps and establish Australia as a market leader in sporting goods, Australian companies need to be established with the outset of being a global brand. Many indicators can be paramount to success or failure and individuals should understand and utilise the various resources available to assist with their long term planning strategy. To assist with their foreign expansion, it is critical that companies invest in the right advice and the right time, maximising the chance of success. Vinay Mahajan Senior Manager, Assurance P: +61 (3) E: vinay.mahajan@pwc.com 4

5 Diversity Unleashing Human Potential: a fresh perspective on talent and diversity In 2015 Michelle Payne called out the sexism in horse racing after she rode the winner in the Melbourne Cup, and unleashed a huge outpouring of public support for her and her strapper brother. It marked a turning point in Australian sport that has suddenly seen women s sport featuring in greater prominence than ever on our televisions, in our newspapers and on social media From the Matildas winning selection into the Rio Olympics, the Diamonds winning the Netball World Cup, the Southern Stars games being broadcast on television, to the AFL announcing a women s game starting in There has never been such a focus on women s sport. It has taken a significant amount of effort The Matildas needed to threaten to take industrial action to get a better pay deal, Mel Maclaughlin s interview with Chris Gayle sparked outrage over his sexist comments to her, showing that there is still a way to go. This presents both opportunities and challenges for sports administrators, sports broadcasters, and sports stars themselves. Decisions made based on out-dated stereotypes will see opportunities lost, and organisations and sports left behind in audience numbers and participation rates. There are actions that can be taken to address this however, and bring sport into the 21st century. Susan Price Director, People & Organisation P: +61 (2) E: susan.price@pwc.com 5

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