Spectator Sports - UK - March 2007

TABLE OF CONTENTS

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• £1 billion mark now in sight
• Stadia still the focus for revenues...
• ...with developing stadia still developing income
• Three issues raise concerns for the future
• Pricing
• Exclusion of key groups
• Loss of sociability
• In the short term, nothing succeeds like success...
• ...but access is the long-distance winner
• The Internet: short-term opportunity, long-term threat?
• Technology increasing sales and raising margins
• The future in your hand(set)
• Internal Market Environment
• Key points
• Sporting interest
  • Figure 1: Interest in named sports/pastimes, 2002-06
• The importance of access
• International success
• On-screen promotion
• Migration of rights to pay-TV platforms continues
  • Figure 2: UK sports television output, 2001-06
  • Figure 3: Televised sport on terrestrial and satellite/cable* TV, 2002-06
• Print media and sport -- a sometimes uneasy relationship
• The Internet -- a profitable medium for sports clubs
  • Figure 4: Websites browsed for information purposes in the last three months, November 2002-October 2006
• Mobile phone
• Success and recent form
• Team sports
• Individuals
• The star factor
• Star performers
• Stellar events
• Venue capacity and utilisation rates
  • Figure 5: English football stadium utilisation rates, 2004/05
  • Figure 6: Rugby union Premiership utilisation rates, 2005/06
• Stadium development
• Development trends led by football...
  • Figure 7: Capital expenditure on stadia/facilities by English clubs, 1995/96-2004/05
• ...but other sports now following suit
  • Figure 8: Rugby union premiership stadium capacities, 2005/06 and 2009/10
• Admission prices
  • Figure 9: FA Premiership ticket prices, 2006-07
  • Figure 10: Ticket prices, The Championships, Wimbledon, 2007
• How expensive is football really?
• ...against domestic competitions
• ...and national/international events
• Location and scheduling
• Venue
• Affluence
• Frequency and kick-offs
• Promotion and marketing
• Other revenue streams
  • Figure 11: Value of matchday revenues as a percentage of total revenues, by sport, 2005
• The Olympic effect
• Broader Market Environment
• Key points
• Economic climate
• PDI and consumer expenditure
  • Figure 12: Trends in personal disposable income and consumer expenditure, 2001-11
• The labour market
  • Figure 13: UK labour market, 2000-10
• Demographic trends
• Age and gender
  • Figure 14: Trends in the age structure of the UK population, by gender, 2001-11
• Socio-economic trends
  • Figure 15: Forecast adult population trends, by socio-economic group, 2001-11
• Lifestage trends
  • Figure 16: Forecast adult population trends, by lifestage, 2001-11
• Access to cable/satellite television
  • Figure 17: UK multi-channel TV penetration, by platform, 2001-06
• Access to the Internet/broadband Internet
  • Figure 18: Internet access usage, 2002-06
• Mobile phone usage
• Season and climate
• Fashion
• Legislation
• Competitive Context
• Key points
• Interest in sport
  • Figure 19: Interest in sport, by paid attendance, general interest and regular participation, 2006
• Leisure activities
  • Figure 20: Participation in leisure activities, 2002 and 2006
• Growth outstripped by other leisure spending
  • Figure 21: Consumer expenditure on selected leisure goods and activities, 2001-06
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• More people paying to watch...
  • Figure 22: Paid to watch sporting events, 2002-06
  • Figure 23: Spectator sport market size, by volume, 2002-06
• ...but in-home viewing rising in popularity
  • Figure 24: Consumers experiencing live sport, 2004-06
• Event attendance
• Television viewing
• Kick-off on the web
• Forecast - Scenarios
• Scenario 1: Static
  • Figure 25: Forecast of consumers experiencing live sport, scenario 1, 2006-11
• Scenario 2: Optimistic
  • Figure 26: Forecast of consumers experiencing live sport, scenario 2, 2006-11
• Consumer expenditure on spectator sports
  • Figure 27: Estimated consumer expenditure on sports event attendance, 2001-06
• Mintel foresight
• The Olympic effect
• Keeping pace with broadcast revenues?
• Changes in stadium development focus
• Key challenges will be familiar ones
• Segment Performance
• Athletics
• Attendances -- major events
  • Figure 28: Attendance at major UK athletics events, 2000-06
• Attendances -- other events
  • Figure 29: Attendance at UK athletics events, 2006
• Venue improvements made, but still some way to go
• Cricket
• Stadium competition heats up
• Format changes bring welcome results
  • Figure 30: Selected English cricket competitions, total attendances, 2000-06
• Football
• Ticket price issue coming to a head?
• Attendances -- all divisions
  • Figure 31: English league football attendances, by division, 2001/02-2005/06
• Premiership attendances
  • Figure 32: Premiership attendances, 2005/06 season
• Championship attendances
  • Figure 33: Championship attendances, 2005/06 season
• Expansion at the top table to mask downturn elsewhere
• Golf
• Attendances steadily rising
  • Figure 34: Attendance at selected major UK golf events, 2002-06
• Horseracing
• Accessibility boosts attendances
• A £340 million investment in facilities
• Fixtures increase, but attendances on the wane
• Monthly attendances
  • Figure 35: Attendance at horse racing meetings, 2002-06
• Types of meeting
  • Figure 36: Horse racing attendance, by type of meeting, 2002-06
• AWT courses boost spectator numbers
  • Figure 37: Flat horse racing attendance, by type of surface, 2004-06
• Rugby league
• Super League provides impetus
• Stadium development arrives
• Attendances boost salary allowance
• Record attendances since 2003
  • Figure 38: Attendance at top flight rugby league matches, 1993/94-2006
• Rugby union
• Test match revenues crucial
• Matchday revenues vulnerable to form
• RFU targets the black market
• Union trumps league in attendances
  • Figure 39: Zurich Premiership average attendances by club, 2001/02-2005/06
• Season ticket sales
  • Figure 40: Zurich Premiership season ticket sales by club, 2001/02-2005/06
• Tennis
• A regular international schedule
• Smaller events see attendances increase
  • Figure 41: Attendance at major UK tennis events, 2002-06
• The Consumer: How Live Sport is Followed
• Key points
• Watching sport becoming an individual pastime
  • Figure 42: Methods of experiencing live sport, 2002-07
• Who watches live sport?
  • Figure 43: Most popular methods of experiencing live sport, by demographic sub-group, January 2007
  • Figure 44: Further methods of experiencing live sport, by demographic sub-group, January 2007
• Men only?
• No longer doing it for the kids
• More upmarket, more online
• At-home viewers firmly entrenched in the armchair
  • Figure 45: Methods of experiencing live sport, by most popular methods of experiencing live sport, January 2007
  • Figure 46: Methods of experiencing live sport, by other methods of experiencing live sport, January 2007
• The Consumer: Sports Followed Live
• Key points
• Television coverage drives interest
  • Figure 47: Sports watched/listened to live, 2002-07
• Sports followed -- demographic analysis
  • Figure 48: Most popular sports watched/listened to live, by demographic sub-group, January 2007
  • Figure 49: Next most popular sports watched/listened to live, by demographic sub-group, January 2007
• What women really want
• Exclusive or excluding?
• Methods of following different sports
  • Figure 50: Sports watched/listened to live, by most popular methods of experiencing live sport, January 2007
  • Figure 51: Sports watched/listened to live, by further methods of experiencing live sport, January 2007
• Combinations of sports interest
  • Figure 52: Most popular sports watched/listened to live, by other sports watched/listened to, January 2007
  • Figure 53: Next most popular sports watched/listened to live, by other sports watched/listened to, January 2007
• Only one game in town for football fans
• 'Communities of interest' develop across other sports
• The Consumer: Event Attendance vs TV Viewing
• Key points
• Attitudes towards live sport
  • Figure 54: Attitudes towards live sport, January 2007
• Issues to address
• An imbalance of supply and demand
• No substitute for atmosphere
• Attitudes towards live sport -- demographic analysis
  • Figure 55: Most popular attitudes towards live sport, by demographic sub-group, January 2007
  • Figure 56: Next most popular attitudes towards live sport, by demographic sub-group, January 2007
• The affluent come for the atmosphere
• Alienating the younger generation?
• The influence of attitudes on viewing habits
  • Figure 57: Attitudes towards live sport, by experience of live sport at the event or on TV in the home, January 2007
  • Figure 58: Attitudes towards live sport, by other methods of experiencing live sport, January 2007
• Communal viewing the new match-going
• Attitudes by sport
  • Figure 59: Attitudes towards live sport, by most popular sports watched/listened to live, January 2007
  • Figure 60: Attitudes towards live sport, by next most popular sports watched/listened to live, January 2007
• Financial concerns vary significantly between sports
• Occasional attendance increases appreciation of atmosphere
• Opportunities for technology
• Strong amateur scene can boost lower-level spectating