Last April, I wrote a column on the changing face of sports. In whichever direction you look, the industry is transforming: fan habits are evolving, games are getting more diverse, and sports media is being reimagined. The space is also becoming increasingly global, attracting billions of dollars in international investment.
Since that first column, the pace of change has all but increased. Women’s sport has continued to break TV viewing figures, money has poured into the industry from the Middle East, and just this week, the producers behind Netflix’s F1 hit Drive to Survive announced investment worth tens of millions as demand grows for sports documentaries.
Against this backdrop, organisations in sport are rushing to formalise and professionalise their approach to growth. And, from a leadership and strategy perspective, many businesses are beginning to think more deliberately about how sport fits into the wider consumer ecosystem.
As part of this, companies are feeling the need for more consumer-centric thinking, and considering how to inject expertise around branding, identity, customer experience, data and digital technology into their organisations. Over the past few months, I’ve sat down with leaders from right across the sports industry, to explore the evolving talent landscape, and how the movement of talent from the consumer-facing sector into sports could unlock growth and innovation.
Our latest white paper – How sports can learn from the consumer playbook – is the product of these conversations. Based on insights from Chairs, Non-Executives, and C-Suite leaders at sports clubs, leagues, events organisers and governing bodies, this white paper looks in depth at how the global sport industry has evolved; what consumer-sector talent could bring to sports; what executives can expect when moving between industries, and what makes a successful leader in sports.
You can read the full white paper here, but below I have outlined some of the points that resonated most strongly in my conversations.
The sports leadership landscape is ripe for disruption – but there are some areas which require deep industry knowledge
The talent landscape in sport has remained unchanged for many years. Traditionally, the industry has attracted sports fans into management roles, many of whom stay within one company or sport for their whole career. While this breeds passionate leaders, it can also have a limiting impact on the sector – discouraging high-potential candidates who may not be fans from entering the industry, and allowing for strategic blind spots.
There’s also very little diversity. The MBS Group undertook research into the CEOs at the top 60 sports organisations by revenue operating in the UK, across governing bodies, leagues, clubs and teams. We found that more than 80% of CEOs are men, and nearly half have spent their entire career in sport.
While the industry would certainly benefit from fresh thinking, there are some areas in which deep domain knowledge is needed to lead effectively. One Chief People Officer of an F1 Team told me that there are some functions for which they have no choice but to hire from within F1. “What’s required is so specific,” they said, “that a leader would have had to grow up within F1 to truly get it.”
Sports organisations would benefit from more customer-centric thinking
Historically, sports businesses have failed to treat their fans like customers – in large part because of the built-in loyalty that comes with being a fan. But as the landscape becomes more competitive, organisations can learn critical lessons from retail, hospitality, tech and entertainment – and appoint consumer sector talent to implement changes.
As the landscape becomes more competitive, organisations can learn critical lessons from retail, hospitality, tech and entertainment.
There’s an exciting opportunity to better harness customer data, for example. Sports teams have hundreds of millions of fans all around the world – but the industry is falling behind when it comes to a data-driven approach to understanding this demographic. Collecting customer data (and using it to inform marketing and other business decisions) could be truly transformative – and businesses could consider adopting the processes of airlines, retailers and hospitality businesses here.
More attention could also be paid to branding, identity, and customer experience. Brand can be seen as a dirty word in sport – but cutting through the noise has never been more critical, especially when younger fans are less loyal to certain teams or sports. There’s also an opportunity to re-frame sports as entertainment, and think more deliberately about the end-to-end customer experience for fans. This could cover everything from F&B offerings at live events to integrating additional technology for fans enjoying sport online.
Sports is a unique place to work, and the learning curve for talent moving into the sector can be steep
Leading a sports business often involves navigating a complex web of stakeholders – from fans and sponsors to owners and governments. Senior executives are never going to be able to please everyone, so having a ‘thick skin’ and a high level of emotional intelligence is critical. Here, some leaders told us that having PLC experience was highly valuable when taking up a role in sport, especially when it came to forming allegiances and forging a path through what can be a layered network of governance considerations.
Senior executives new to the sports industry should also expect a high level of scrutiny. As one Chair of a governing body said: “Nobody’s talking about a retailer’s financial results in the pub. But everyone has an opinion on the choices leaders make in sport.” The unique pace can also take some getting used to, with some organisations slowed by infrequent funding cycles, and others moving at a rapid rate with real agility.
“Nobody’s talking about a retailer’s financial results in the pub. But everyone has an opinion on the choices leaders make in sport.”
It was interesting to hear from leaders who have moved into sport the steps they had taken to flatten the steep learning curve. One CEO told us that they had been paired up with a ‘buddy’ who had been on hand to answer any industry-specific questions. Another said that thinking of themselves as an ‘influencer’ rather than a ‘decision-maker’ had been invaluable, due to the number of factors that were outside their control.
Our full white paper explores these considerations in more depth, and looks at what makes a great leader in sport in 2024. As new concepts, games, and formats emerge, the winning businesses will be those which can stand out in an increasingly cluttered landscape – and injecting expertise from the consumer-facing sector could make all the difference in the years ahead.