Less is More
Looking ahead there are many things in the world of sport to be pleased about. The opportunity for sport to recover to pre-pandemic levels for both participants and viewers. The return of Formula 1 to Zandvoort for the first time since 1985 and a magnificent victory for Max Verstappen and Dutch fans. The emergence of a superstar in Emma Raducanu becoming the first qualifier, male or female, to win a Grand Slam with her victory at the 2021 US Open. Even the return of Cristiano Ronaldo to Manchester United raised expectations and excitement for many football fans. For golf fans, including myself, the 43rd Ryder Cup at Whistling Straits in Wisconsin, USA.
I cannot recall who coined the phrase ‘less is more’ but it was something often quoted in sports marketing discussions in the 1990’s. The general premise was to limit the quantity of official sponsors to protect the value for each sponsor. Of course, each sponsor had to pay more for the privilege. One example was the UEFA Champions League that reduced the official sponsors from eight in the 1999/2000 season to four sponsors in the 2000/2001 season. The updated sponsorship packages included broadcast commercials for the first time, which significantly increased the cost and value for the remaining sponsors, Ford, MasterCard, Amstel, and PlayStation. Of course, the number of matches and teams increased steadily. In 1994/95 there were 16 teams and 61 matches played. In 2018/19 there were 32 teams and 125 matches spread over 10 months. Too few for some, too many for others.
Why these thoughts? Reading a recent article about increasing the frequency of the FIFA World Cup to every two years. As the article suggested, this was as much about power and money as it was about football. Memories of the European Super League came flooding back. More surprisingly, this initiative was being promoted by Arsène Wenger who stated, “times are changing” and “the new generation is used to quick responses to what they want.” I am sure there was a lot more argumentation to support this initiative but where is the evidence the “new generation” want a FIFA World Cup every two years? Money aside, part of the rationale appears to be support from Africa and Asia with countries in these regions who want more chances to participate in the World Cup. And, from a financial perspective the World Cup generates some $6 billion in revenues for FIFA. Besides, the football calendar is one of the most congested in sport.
Increasing the quantity and frequency of live events in sport has resulted in greater revenue from broadcasting, sponsorship, tickets, merchandise, and licensing. Technological innovations and the shift to digital media has multiplied the options for sports fans and followers to consume their favourite sports content. But does this mean doubling the frequency of some of the biggest sports events like the FIFA World Cup makes sense? The summer Olympics is a hugely popular event but the idea of staging it every two years, apart from the logistical challenges, sounds crazy. Wimbledon, the Tour de France, and US Masters are great sports events but staging them twice as often would dilute their value, even if more athletes from different countries could participate, with greater revenue.
A recent report from the IPA called ‘Making sense of the commercial media landscape’ highlighted a few salient points. Yes, there is a massive shift in broadcasting and media consumption in general, not just in sport. There are differences between 16-34s and older age groups, to be expected. They still want similar content, just in different ways that works best for them and in line with technological advancement and convenience. Will this be addressed for sports fans simply by organizing the FIFA World Cup in the same format every two years? I doubt it. Surely, the key is understanding the nuances of consumer behaviour and the context of fan engagement through live events and media coverage.
Perhaps my reflections are misguided, and more frequent top-level matches is just what sport needs. But top-level sport is not like Netflix where we can stream to our heart’s content. The beauty and attraction are the scarcity which makes special moments even more special. Less is definitely more.