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Joe Gorman, Exeter City CEO: ‘The Club with 4700 Owners!’ (Ep65)
Today we welcome Exeter City CEO Joe Gorman. This show is long in the making. One of the most requested guests we have had. Why? Well Exeter are one of football’s biggest rarities; a fan owned club. This means they cannot rely on the wealth and exuberance enjoyed by many to succeed on and off the pitch. They actually have to try and make the business make sense. Punching above their weight for many years, the club sits in League One alongside mega rich teams like Birmingham and Wrexham, and are more than competitive. So how does a club owned by 4700 fans paying £24 a year compete at the top level? How have they turned a £5m investment into the academy to a return of £20m. And why is Joe adamant this is a club here to be the best football team, not just to pat on the head and applaud for doing things unusually well. A truly unique model. A truly unique conversation. This is the other side of the ‘Business of Football’. On today’s show we discuss: Exeter: A Fan-Owned Club: What does it mean to be owned by the fans and how does it actually work when you have over 4700 ‘owners’ involved in the club? Is Joe’s job made easier or harder without having the pressures exerted on management by demanding multi-millionaire owners chasing the glories of Premier League football? How does the business of the club actually work in the context of making decisions to spend money. Is it consensus driven? The importance of building trust: “the fans need to know I have the best interests of the club at heart” Why this is more than a club to patronise for doing well off the field and how Joe, along with manager Gary Caldwell, is installing a winning culture from top to bottom. Would the club ever look for investment away from the fanbase? A Unique Playing Model: When you can’t go out and spend millions on a star player, how do Exeter uncover talent who fit their model? The importance of creating value for top teams by nurturing talent and being a home that clubs want to send their brightest young players to. Buying players for 5-figures and selling them for 7-figures; winning for Exeter is more than just 3 points on the pitch. The value of the sell-on clause: why having a percentage sale on players sold is such a valuable cash flow addition. The fanbase needs to understand and get behind this business model for it to work. How do they relate to a team with pure ideals that may have a ‘success ceiling’? Competing in the EFL: The financial disparity between clubs even in League One is becoming more apparent than ever. How do Exeter leverage their unique model to compete with big spenders? Are clubs like Wrexham and Birmingham good for the Football League? Whose responsibility is it to capitalise on the increased exposure afforded to the football league with big investors and TV deals now a common occurrence? Why does Joe fear wage inflation will be the thing that makes competing on a manageable playing field too hard to navigate? And to our amazing partner: Orreco https://www.orreco.com/
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1:05:29
Nicolas Julia, Sorare Founder: ‘Building a $4bn Fantasy Sports Empire’ (Ep64)
Today we welcome Nicolas Julia, founder of Sorare, the record breaking platform that blends fantasy sport with digital collectibles. This is a step beyond the fantasy football/F1/rugby you may already be a part of. It’s an open market, providing the chance to show your skills and talent identification to buy, select and trade tangible assets in the form of player cards. They are reimagining sport for the digital age, combining NFT’s, global partnerships, and strategic gameplay to create a fan-owned, athlete connected future of sports entertainment. From signing partnerships with the Premier League, NBA, and over 350 teams to generating nearly half a billion dollars of translations on the platform, Sorare has pioneered a new era of fan engagement while empowering athletes with their own data and IP. Serena Williams, Gerard Pique, Kylian Mbappe; they’re all backing the company to deliver on their objective of making every fan an owner or manager. But how did this bridge between digital fandom and the world’s biggest sporting entities form? Big numbers, big partners, big ambitions. Nico delivers the thesis of a company at the heart of the modern sports industry. In today’s show we discuss: Building a Fantasy Sports Business What was the opportunity Nicolas and his partners identified when establishing Sorare? Born in the era of cryptocurrency and NFT’s, how has Sorare been able to navigate this highly volatile landscape and become THE fantasy sports platform? What does the business model look like? From attracting players to the platform to signing global partnerships with major leagues. What has the hardest part of working with very traditional organisations been? How much education is required when demonstrating the value Sorare can bring to a league? Value of Athlete Partnerships Athletes are becoming more and more active in investment markets. How have Sorare leveraged the talent on their cap table to develop the brand and product? How did Nico encourage the likes of Gerard Piqué, Serena Williams, Kylian Mbappe, Lionel Messi to invest in the business? Are agents a blocker to getting access to athletes when it comes to presenting ‘long term’ business opportunities? Signing big brands and major rights deals is significantly aided by athlete participation; the story of how Serena Williams won Sorare the NBA contract. Difference Between US & European Markets There is a major difference between the evolution of US and European markets when it comes to fan engagement, technology adoption, and athlete investing models. How has this shown itself in the growth of Sorare? Did the approach to winning contracts in the US have to change from the football model implemented in Europe? How do Sorare identify and prioritise new markets? The NFL is one of the biggest sports leagues in the world. Is this a target area? How does the development of the US betting market impact Sorare, if at all? Orreco https://www.orreco.com/ Scan.com https://uk.scan.com/
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1:00:49
Jimmie Johnson, 7x NASCAR Champion: 'Has the Rise of F1 Been Good For NASCAR?' (Ep63)
Today we welcome 7-time NASCAR Champion Jimmie Johnson, a racing legend. Motorsport has never been bigger. The Liberty Media world of F1 has exploded, MotoGP has sold for over $4bn, but what about NASCAR? The US's second most watched sport is an entertainment and commercial giant, yet outside of America, it’s fair to say exposure is limited. Jimmie Johnson is one of the most successful drivers to grace any track; think Lewis Hamilton or Michael Schumacher. He is the joint record holder for most Championships won, dominating the sport in the noughties winning 5 titles in a row. Now, he’s changed the race seat for team ownership with Legacy Motor Club. From billion dollar media rights deals to cars described as revolving billboards, when we get into it, the business of this sport is ridiculous! We’re delighted to welcome Jimmie to the show. On today's show we discuss: The Business of NASCAR: Where does NASCAR sit in the US sporting ecosystem? What does it cost to buy a team, or ‘Charter’, and how many cars do you enter into a race when you have secured your spot? The $8bn media deal is a major financer of the sport, but what does the distribution model look like? How much do the top drivers get paid and how has the sport changed as regulation restricts the money spent on cars? Why the demand for Charters is on the rise and the shift in investor profile. Does NASCAR need to go global to reach its full potential? The Rise of Jimmie Johnson: From humble beginnings to the joint most Championships in NASCAR history, what did the path to the top look like? Racing in the 2000s was very different to racing in the present day; how did the salaries and stardom compare? Private planes and international fame…NASCAR drivers lived a great life, but what did the sacrifices to achieve the ultimate success look like? It’s hard to keep the fire burning; what did Jimmie do to ensure he kept focused and hungry? How is Jimmie adding value to Legacy Motor Club as a co-owner that leverages his storied career as a driver? The Future of NASCAR: What does the sport need to do to reach its full potential? Should it go to the F1 playbook? Does the business model allow for the sport to grow? Should there be a better distribution model and decentralised control to develop the commercial end? With a couple of teams pushing back against the latest regulation, is the sport heading for a political dogfight? What does Jimmie want to achieve as an owner? A huge thank you to our amazing partners: Orreco https://www.orreco.com/ Scan.com https://uk.scan.com/
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1:15:55
Andrew Parkinson, Plymouth Argyle CEO: ‘Hiring Rooney, Beating Liverpool, and Fighting for Championship Survival’ (Ep62)
This week, we take a look inside one of the most talked about clubs this season. From hiring Wayne Rooney as manager to knocking Liverpool out of the FA Cup, it’s been a crazy season for Plymouth and CEO Andrew Parkinson. Even more so when the club finds itself bottom of the championship fighting for survival. But this is a club that continually outperforms its budget, competing against teams with 6x bigger budgets, and that’s what we want to get into today. How do you build success in a football club when you can’t rely on money to win? On today's show we discuss: Economics of a Championship Team: How do Plymouth compare to their rivals when it comes to the financial resources at their disposal? What does a club in the bottom half of the table generate in revenue? How much can they afford to spend on player budgets? The importance of having multiple budgets for multiple scenarios: facing the relegation reality. How much can a Championship team earn from sponsorship? Plymouth this Season: Hiring Wayne Rooney at the start of the season attracted a lot of attention; was it more than a PR move? …and what happens when you have to sack a manager? The competitive nature of the Championship and the importance of staying in the decision for both financial and player retention reasons The value beyond emotions of beating Liverpool and pushing Manchester City in the FA Cup Improve the Business of Football: Why Plymouth are looking for investment and what they would be able to do with an additional capital injection. Developing a high performing and well supported women’s team is a priority, but should it be under the same banner as the men’s? Does the 3pm blackout help or hinder football across the pyramid? Can the club implement a media strategy to help support the profile and exposure of the club? Cracking America: capitalising on the pilgrims link with the US Orreco https://www.orreco.com/ Scan.com https://uk.scan.com/
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1:02:30
Bill Sweeney, RFU CEO: Behind the Curtain of Rugby's Most Scrutinised Organisation (Ep61)
This week, we’re delighted to welcome the CEO of the RFU, Bill Sweeney, to the show. There’s no hiding from the fact it’s been a hard few months for the organisation and Bill personally. Significant losses reported last year alongside the now infamous LTIP scheme generated an unrelenting flow of negative press and questions of the leadership. This show is about understanding the financial health of the RFU and wider sport. And it’s certainly not as bad as many would have you believe. Fueling the almost holistic negativity around Rugby, which we have talked about many times on the show, is not the aim here. We discuss the governance structure, revenue generation & the Allianz deal, LTIP scheme, England team performance, rugby’s drive to remain relevant, and more. Listen to the facts, make your own conclusions. But, hopefully having listened to this, with a better picture of where the game is at and if the RFU is achieving its primary goal of growing the game in this country and beyond. On today's show we discuss: What is the RFU?: For all the criticism and focus on the organisation over the last few months, what does the RFU actually do and is it fit for purpose to deliver on its objectives? Should the community game and the professional game be governed by the same organisation? "It's time for change". What does Bill think needs to happen to improve the governance of rugby in England? The fight is on to keep rugby relevant in an increasingly competitive attention economy; what are the RFU doing to develop the game? The Finances of Rugby: How much money does the RFU generate each year and where is that money spent? The story of the LTIP payment and why it was such a problem in the broader context of RFU finances. From a new stadium naming rights deal with Allianz to a data driven partnership with Apple, what does the partnership roster look like and how much does it generate? The financial cycle shows the governing body loses huge numbers in World Cup years. Should this be changed so countries are not financially penalised during the greatest global show of rugby? "85% of the revenue generated comes from the mens team playing at The Allianz. That has to change". The challenges of getting through Covid and back to business. Aligning Finances with Performance: "England has won four 6 Nations in the last 22 years. That is not acceptable considering the resources and our game". How can the RFU play a role in creating global icons out of England rugby players alongside Premiership Clubs? The future is bright: how the emerging England rugby teams are showing the value of investing in pathways and are on track for major success. Is the structure currently optimised to get the best out of the performance? A comparison with Ireland, France & New Zealand. A huge thank you to our amazing partners: Orreco https://www.orreco.com/ Scan.com https://uk.scan.com/
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1:07:23