With the recent escalation in the value of sports rights worldwide, clients (e.g. professional leagues) have turned to L.E.K. to understand how best to maximize the value of their rights through alternative packaging strategies. Clients (e.g. distributors) have also sought us out to develop playbooks to strategically acquire rights and build their businesses. We have advised clients on most of the major U.S. sports network launches over the past decade, and guided most of the major professional sports in Australia on rights strategy.
For clients trying to make smart strategic decisions in the sports segment, we recommend that they consider the following issues:
- How do I take advantage of new business models enabled by evolving consumer media consumption patterns and technology?
- What are the most promising markets for sports-related investments?
- How does a sports league/rights owner maximize the value of live sports rights in an environment of fragmenting distribution?
- How does a distributor put in place a disciplined process for bidding on scare sports rights?
- How does a venue operator maximize per capitas and overall game day fan experience?
- How does a league/venue operator reposition ticketing as a strategic asset to capture greater share of fan wallet and enhance fan connectivity?
Examples of Our Work
L.E.K. has helped its clients create value in the sports arena:
- A major multichannel distributor asked L.E.K. to advise on the formation of a regional sports network, leading to a successful $3billion bid for marquee sports rights to anchor the network.
- A U.S. professional sports league asked L.E.K. to evaluate its TV packages in order to maximize revenue
growth and enhance its exposure. The client successfully realized double-digit rights fee increases in its next round of negotiations.
- A professional sports league asked L.E.K. to help it develop a long-term strategy for its ticketing business. L.E.K. worked closely with the league to evaluate its options and identify a path leading to significantly higher ticketing-related revenues.
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