BPL takes away jam from BFA�s doughnut
Mqondisi Dube | Friday January 16, 2015 11:50
The BPL’s value has remained unknown and its officials have always had the arduous task of ‘stabbing in the dark hoping to hit the target’ when they negotiate sponsorship. But that swiftly changed on a thunder-filled Wednesday afternoon when the BPL announced it had engaged a global sports marketing research firm, Repucom to value its product. At the end of the 2013-2014 season, the Premier League was valued at P15 million, which included tangible and intangible benefits to the sponsor. The reputable Repucom, with some of the biggest clients in South Africa, who include Kaizer Chiefs, is already hard at work analysing the current season.
Be MOBILE sponsors the Premier League for P10 million, which the BPL would feel is undervalued given the latest findings. During the close season, the BPL and be MOBILE were engaged in often stuttering talks over a new deal. Be MOBILE needed justification for an increase from the P8 million per season in the previous deal, and BPL had nothing, but empty hands to prove their demand for the upward adjustment.
On Wednesday, BPL broke new ground by becoming the first organ to evaluate its product. No other Botswana National Sports Council (BNSC) affiliate has preferred this route.
Although details of how much the evaluation would setback the BPL remain unknown, chief executive officer, Bennett Mamelodi believes it is an exercise worth undertaking.
“We now know our value and it is of importance when we negotiate sponsorships,” he said, adding that clubs too, will soon know their value. While the BPL entered unchartered waters, the BFA would be left scratching. The mother body was the first to announce plans to create a commercial wing meant to lessen burgeoning financial dependency on government.
This was in the run-up to the BFA elective assembly in July 2012 and up to now, it is unclear if there is a laid down commercialisation roadmap. The closest BFA went public about their commercialisation project was when BFA chief executive officer, Keith Masters said they were keen to utilise the Lekidi Centre hostels and generate income, although figures were not mentioned.
The Premier League has gone a step ahead by announcing an elaborate 11point plan, dubbed the ‘Starting 11’ to turn the fortunes of the game around.
It chiefly centres on attracting more fans, particularly women, children and minority groups to games.
The BPL might have drawn first blood, but the critical stage -implementation- beckons.
With the Starting 11, the BPL plans to:
1. assist clubs to retain existing fans,
2. assist clubs make stadia safe in order to attract children,
3. assist clubs to design programmes to attract women as “more women at games would mean more men would come to meet these women”,
4. assist clubs to attract minority groups like whites and Indians,
5. assist clubs to keep a record of retained and new fans which would come in handy for communication and commercial bargaining purposes,
6. assist clubs communicate with fans the way they want to be spoken to either through individual customisation (sms) using database or new media,
7. assist clubs use new and old technology to build loyalty among fans,
8. assist clubs realise that if they fill stadiums with registered fans it will be easier to sell sponsorship opportunities,
9. assist clubs to turn loyal fans into ‘evangelists’,
10. assist clubs to sell tickets aggressively and to,
11.assist clubs to entertain fans on match day
What the Premier League is worth (Repucom valuation highlights)
Fair Market Value
Tangible benefits and Intangible benefits plus association rights/specific deal terms = P 30, 085 649.
Standard cost benefit ratio (2:1 for proximity, low media properties, high cost execution /2 Fair Market Value = P 15, 042 824