The Sunday Mail
Hastings Kamanga
RARELY do ZIFA and Premier Soccer League clubs meet for matters outside congress.
Thus, the recent meeting between the two bodies directly responsible for growth of elite football in Zimbabwe was as long overdue as it was key.
Pity that because it was a rare meeting, a lot of issues pertaining to the game could not find space on the agenda.
One crucial matter is that of sport broadcasting and sponsorship, especially at a time when local clubs are grappling with the Covid-19 pandemic and its devastating effect on the viability of local football.
Growth of the sports industry in the last 30 years has seen the rise in the value of sports-related sponsorship, despite the ban on tobacco advertising.
The tobacco industry used to be one of the mainstays driving sports sponsorship since the early 1960s.
But the most striking thing about Zimbabwe’s football is not how much it has changed, but how little.
Yet sports content on television has grown as the broadcasting industry has become more commercially driven by the continued commodification and commercialisation of sports content on pay television platforms.
There are a number of ways that sport presents itself as an economic activity.
For example, hosting international events, management of the organisation and team, including exploitation of athletes as commercial products.
These activities are linked to the management of media rights that now provide a huge part of the income in the sports industry, and the potential continues to grow as new forms of accessing content increase.
Elite-level sport has transformed the sports industry and enhanced its position within the entertainment and corporate world.
The alliance of sports, sponsors and television is referred to as a triangular relationship — a key driver in the shaping and development of sports — and also dominates modern sport’s economic structure.
Professional sports throughout the world are heavily reliant on commercial sponsorship and the sale of broadcasting rights for their survival.
What really is sponsorship and why do corporates sponsor sports teams?
Experts in sports sponsorship describe it as a business relationship between the provider of funds, resources, or services and an individual, event or organisation that provides some right and association that can be used for some commercial advantage in return.
One of the fastest growing marketing tool is sponsorship, and it has proved its worth as a communication medium that is ideal to reach out to audiences.
Sponsorship has nothing to do with patronage or charity, and the two should not be confused.
Patronage is a situation in which funds are provided to an individual or sports team/organisation on a non-commercial altruistic condition.
Sponsors usually want to have some media exposure, with television space being the most preferred and attractive.
They are very much keen on television space for the benefit of the sport and sponsors.
This scenario means that sports are an appendage of the advertising/marketing industry.
Companies that sponsor sports are looking to enhance their public profile and awareness of products and services they offer.
However, sport is a very cost-effective way of reaching out to customers.
Are our clubs utilising business opportunities that sport provides?
They need to move away from aristocratic patronage to commercial sponsorship.
Most of our clubs continue to be isolated from the exponential growth in sponsorship and broadcasting rights as most of our teams are still stuck in some form of aristocratic patronage.
Most of our clubs don’t have proper sponsors and of those that have sponsors, the package is not that big, although some of the clubs have huge fan bases.
The biggest deterrent to the acquisition of sponsorship is that of maladministration, transparency, corrupt practices, the lack of professional structures and the lack of understanding of the value of their brands.
It is important for administrators to understand how sports fans consume sport in the digital age.
It is, therefore, crucial to adapt and adjust to the digital migration.
There have been some entry barriers in sports broadcasting as a result of scarcity of broadcasting channels.
However, the broadcasting landscape has evolved globally because of deregulation of broadcasting services.
The changes were facilitated by the emergence of cable TV and satellite (pay TV), which reduced the entry barriers and led to the influx of sports channels, bringing about competition for broadcasting rights.
The growth of pay TV has resulted in more sports channels and widespread innovations in sports coverage.
Broadcasting rights are rights to broadcast an event or matches, highlights or clips.
They usually belong to the league, which negotiates with broadcasting companies and distribute the proceeds to teams.
The broadcasting industry is now highly competitive.
Small teams or leagues have to make their product attractive to broadcasters and advertisers as much as possible, while the big leagues or events can demand a high fee from broadcasters because of their superior product and audience.
There has been a huge shift towards adjusting televised sports in a manner that best suits the needs of the broadcaster and television viewers, including the modification of schedules, or changes to when the season starts and finishes in order to avoid competition from rival leagues or other sports.
There are factors such as the size of the bid that have to be considered by sports organisations in negotiating broadcasting rights with a media partner, with the highest bidder being selected.
The capability of the broadcaster to provide broad coverage, especially if organisations are seeking to enhance or build their profile both nationally and abroad, also has to be considered.
Attractiveness of rights to potential buyers is dependent on the audience they are able to capture for the game or event.
The bigger the audience the more willing broadcasters are to pay a huge amount of money.
With the value of television rights continuing to rise at an alarming rate in the last two decades, the new media landscape is gradually transforming the established TV broadcasting business model.
Recently, tech giants like Amazon have penetrated the media market and are competing for rights.
New ways of consuming sports content have arrived, meaning that broadcasters will have to rethink their strategies on providing sports content that is attractive.
Clubs can exploit non-live rights if they want to.
There is usually some form of arrangement that returns the right to use content on their TV channels or website non-exclusively after midnight on matchday.
Sports broadcasters have unique features that make them extremely valuable national or global products.
Sporting events or matches are short-lived or perishable, although they can be available through delayed coverage or highlights packages, which is not the same as attending or watching the live event or match.
Prior to 2007, SABC owned exclusive rights to the South African PSL and sub-licensed some rights to SuperSport.
In 2007, the PSL signed a broadcasting deal worth US$200 million with SuperSport for a period of five years to 2012.
This deal was renewed for another five years for US$277 million.
It offered composite packages that included mobile and internet rights, and the growth and enhancement of the PSL brand.
The current deal is worth R2 billion for broadcasting rights and sponsorship with SuperSport on a five-year cycle for South African Premiership and three knockout competitions.
In 2011, SuperSport acquired broadcasting rights for the Ugandan Premier League for US$5million for five years.
This deal ended up in a legal battle with AZAM TV, as they both claimed to be legal holders of the rights.
In 2018, StarTimes, a pay TV company, secured the right to broadcast Uganda Premier League games in a 10-year deal worth US$7,2 million.
SuperSport also acquired the rights to broadcast Zimbabwe’s Premier Soccer League in 2013 in a five-year deal worth US$2 million.
Compared to other deals in Africa, this was the lowest broadcasting deal and was not renewed when it expired.
Then in 2016, Football Association of Zambia signed a five-year deal with SuperSport worth US$5 million, and this was a 17 percent increase from the previous deal.
In 2019, Nigeria Premier League executed a five-year US$230 million broadcasting deal with Chinese broadcasting company Next TV.
The South African league is by far the richest league in Africa financially.
It now attracts players from Europe, South America, Africa, et cetera.
The PSL now has a global appeal, with broadcasters such as ESPN, Fox and SKY beaming the South African derbies on their platforms.
This has increased the competitiveness of the league as there are different winners of the championship compared to some of the top leagues in Africa and Europe, where one or two teams usually dominate.
Because of the high income from broadcasting rights and commercial investment in the South African football, this has brought stability to their clubs.
Clubs are also able to retain and attract sponsorship.
Orlando Pirates have nine commercial partners and Kaizer Chiefs have seven, and all are highly reputable companies.
Revenue generated from broadcasting rights is not only for PSL and First Division teams, but also funds some commitments such as players’ medical insurance, football players union, SAFA Development Fund, referees’ fees and training, grounds maintenance programme and facility managers.
The South African model is one to learn from for ZIFA, who at the start of the current board’s tenure sent regional chairpersons and board members on a weeklong attachment at SAFA House in Johannesburg.
SAFA’s model demonstrates how sport in the modern era is delivered through market competition with the private sector.
As sport has gone professional, South African football administrators have at the same time adopted professional business practices.
There is need for local administrators to win the confidence of key stakeholders.
The environment in which oganisations operate is rapidly changing and this has brought some challenges for administrators.
Competition has become intense in the sports industry and for organisations to survive, they have introduced new performance standards, and achieving the new standards is the responsibility of sports administrators.
An organisation’s competitive advantage is embedded in its ability to build a flexible institution that is capable of responding effectively and efficiently to the ever-changing environment.
Failure to adapt to modern trends has led to a crisis in governance of our football, leading to the inability to cope with the demands of accountability, professionalism and transparency.
The key to promoting an organisation’s positive and trustworthy focus is a commitment to accountability.
No organisation exists in a vacuum or bubble regardless of size.
Success is heavily dependent on the organisation’s capability to strategically position itself for utmost influence.
A voluntary shift towards financial transparency and accountability within sports organisations is crucial in restoring confidence of key stakeholders and sponsors in the local game.
Strangely, ZIFA have no broadcasting deal or sponsorship to talk about.
Their biggest source of revenue comes in the form of FIFA grants, and these do not exceed US$3 million per annum.
Without FIFA funding, ZIFA would probably have closed shop several years ago.
Hastings Kamanga is a UK-based Zimbabwean. He is the academy coach at AFC Rusden and Diamonds. He holds a BA Hons in football studies and an MA in leadership and management of sport and physical activities from the University of Bedfordshire.
