70% of Sports Organisations Say Data is Key, But Only 21% Use It Effectively, 40% See D2C Digital Products as Key Growth Drivers, Yet 43% Lack a Data Strategy, Only 10% Can Extract Meaningful Insights from Customer Data
In October 2024, PTI Digital released its "Sports Leadership Benchmark" report, diving deep into the commercial outlook for UK sports rights-holders. Based on insights from C-suite executives across football, rugby, cricket, and other sports, the report highlights a mix of cautious optimism and deep-rooted challenges. From the potential of digital products to the impact of economic factors, this analysis provides a clear roadmap for what lies ahead.
Facts & Figures
Revenue Struggles: 52% of UK sports rights-holders project growth within 12 months, but concerns remain—especially around traditional revenue streams like ticketing and media rights, which have hit a plateau.
Digital Potential: 40% see major growth opportunities in direct-to-consumer (D2C) products and sponsorship over the next five years. However, many organisations lack the basics to capitalise on this—43% don’t have a data strategy, and only 10% can extract meaningful insights from their data.
Data Deficiencies: Half of UK sports organisations are commercialising less than 10% of their databases. Despite 71% of respondents acknowledging the importance of data, only 21% integrate it into decision-making.
Technology Gaps: Only 36% of organisations have a company-wide tech procurement process, yet 57% expect to spend more than £100k on technology in the next 12 months. Ironically, only 40% see tech driving operational efficiencies.
Barriers to Growth: The top blockers for growth include lack of budget, inability to scale current models, limited internal capabilities, and the cost of living crisis. These issues are particularly severe for mid-tier organisations ("The Squeezed Middle").
Generational Shift: Gen Z and Gen A are reshaping fan expectations—demanding digital-first experiences, interactive content, and multi-platform engagement. Rights-holders must innovate or risk losing future fans.
Operational Inefficiency: Many organisations are still using outdated models, relying heavily on ticketing and media rights. To survive, sports organisations need to shift focus towards data-driven insights and a more holistic tech strategy to cut costs and increase efficiency.
A Mixed Financial Outlook
The financial landscape for UK sports organisations is evolving but remains complex. The report shows that 52% of rights-holders anticipate revenue growth in the next 12 months, a positive signal in an otherwise challenging environment. However, the long-term picture is murkier, with the traditional revenue streams of ticketing, media rights, and merchandise showing signs of stagnation. Media rights, once a major driver of income, are expected to experience only moderate growth.
Digital and Sponsorship Growth Opportunities
Despite these concerns, two areas offer significant potential: direct-to-consumer (D2C) products and sponsorships. According to the report, 40% of respondents expect D2C and sponsorship to be the biggest growth drivers over the next five years. However, many sports organisations are unprepared to fully exploit these opportunities. Nearly half (43%) lack a clear data strategy, and a mere 10% feel confident in extracting meaningful insights from the data they have.
Data Strategy and Its Crucial Role
Data is the fuel for future growth, yet most sports organisations struggle to harness its power. While 71% acknowledge the importance of data, only 21% have integrated it into business decision-making. Even more concerning is that half of the organisations are commercialising less than 10% of their databases. The lack of a robust data strategy is holding back potential gains in both revenue generation and operational efficiency.
Technology: The Undervalued Asset
Technology is another underutilised resource in the sports industry. Although 57% of respondents plan to invest over £100,000 in tech in the next year, only 40% believe it will drive operational efficiencies. Furthermore, 43% lack a company-wide approach to tech procurement, leading to inefficiencies, higher costs, and a siloed approach that limits the effectiveness of technology investments.
Key Obstacles to Growth
The report identifies several key challenges that could hinder future growth for UK sports rights-holders:
Lack of Budget: The inability to invest in new models or technology is the top barrier for 49% of respondents.
Scaling Issues: The traditional sports business model, reliant on event-day revenues, is inelastic and difficult to scale.
Internal Capability Gaps: Many organisations are still staffed with roles tailored to outdated revenue models, limiting their ability to innovate.
Cost of Living Crisis: Economic pressures are shrinking disposable incomes, meaning less money for fans to spend on sports experiences.
Adapting to Changing Generational Trends
One of the biggest shifts highlighted in the report is the changing expectations of younger generations, particularly Gen Z and Gen A. These groups demand more engaging, digital-first experiences. Sports organisations must adapt to their multi-platform consumption habits, which includes shorter, interactive content and seamless integration across social media, gaming, and streaming platforms.
Conclusion: The Need for a Strategic Reset
PTI Digital’s report makes it clear: sports organisations need to rethink their commercial models to survive and thrive in this new landscape. A greater focus on data, technology, and a deeper understanding of evolving fan expectations is crucial for future success. Without these shifts, many organisations risk being left behind as the industry continues to evolve.
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