Really enjoyed this conversation with Unofficial Partner and Jon Dutton OBE Dutton. Following on from episode 1 (with Charlie Simpson of Scottish Rugby), we discussed the challenges facing National Governing Bodies, not just in the face of tough economic headwinds but also within the context of changing customer behaviour and an ever-evolving technological landscape.
In Episode 1 we discussed the 80 vs 10,000 minute paradox, where in rugby, 10,000 minutes of the week are devoted to maximising the 80 minutes of rugby. That model is by its own nature finite and because of the above factors, is atrophying. For an NGB, the challenge is similar, where the focus tends to be on major events with very little in between, whereas up and down the country there are communities of people engaging (albeit usually anonymously) with their favourite sport week-in, week-out.
I have long argued that the passion people have for their sport added to a cutting edge data and digital ecosystem is a far more compelling proposition for brands than soulless algorithm-led digital-only platforms, where much marketing spend now sits. The major challenge for most NGBs – as it is for most sports rightsholders – is that the latter does not exist, over and above facilitating what we argued in Episode 1 is an outmoded and inelastic commercial model.
The first step is a mental one: rightsholders need to reimagine what they are and whom they are (or could be) for. It’s not about preaching to the choir, it’s about business diversification - driven by insight – that opens up new audiences and thus more data and more revenue streams. This model will open up NGBs to new sponsors and reduce their reliance on Government funding.
We can see huge opportunity for NGBs – as with other rightsholders – but only through fundamental change in outlook and a subsequent investment in the right technology stack to enable it. There are many assets still to be unlocked in. Jon talks about needing “ a head of joined-upness”. This is hugely important but first you need to pause to think about the “Why?” – as Jon says “just because it’s not easy is no reason not to do it.”
Thanks again to Unofficial Partner and to Jon for joining us – would love to hear your feedback.
Watch this space for Episode 3, coming to you next month.
The Squeezed Middle, our series with Unofficial Partner, looks at the vast number of sports rights-holders in the UK who, in times of downturn, are challenged to compete on either quality or price.
The second episode looks at the challenges and opportunities facing National Governing Bodies (NGBs), and features Jon Dutton OBE, CEO of British Cycling, and PTI CEO Ben Wells.
Listen now:
https://lnkd.in/e4JQmHcQ
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