The Set Point E-Book

Ary Graça

• Herausgeber: Editora Máquina de Livros
• Kategorie: Lebensstil
• Sprache: Englisch

Seitenzahl: 153

Veröffentlichungsjahr: 2022

Beschreibung

"This book examines the trail blazed by the FIVB that culminated in the partnership with CVC Capital Partners. The authors explain each step of the way from the moment the FIVB's President acknowledged the lack of financial sustainability to secure the future of volleyball and his courageous decision to develop a new event based on cutting-edge technology, which led to financial innovation. The cutting-edge event is the Volleyball Nations League (VNL). It has three characteristics that fascinate the Volleyball Family. First, the determination of all parties involved in changing the sport, leveraging volleyball to the family entertainment industry. Second, the avenue of opportunities for innovation and sustainability opened by its implementation. Third, and most important for this book, it led the FIVB to CVC. However, sustainability does not take place overnight. The FIVB had to invest persistently in governance and in best management practices to reach the necessary state of preparedness before going to the market. Volleyball needed a shake-up. And that shake-up is happening."

Leseprobe

Authors:

Dr. Ary Graça F°

Prof. Maureen Flores, D.Sc.

This imprint is published by the registered company Máquina de Livros and authorized by the Fédération Internationale de Volleyball

Editor: Mariucha Moneró – Mmoneró Comunicação

Publisher: Máquina de Livros

Cover and Graphic Design: Bruno Drummond – Bloco Narrativo

Illustrator: maraca.rio.design

Photos: FIVB/Volleyball World

Proofreading: Sally Tibbs, JTA

Copyright © 2021 by FIVB. All rights reserved.

ForewordFabio Azevedo, The FIVB General Secretary

I became an engaged volleyball fan in 1984 during the Los Angeles Olympic Games. And I witnessed the revolution of this great sport in my home country, inspiring an entire generation of fans and athletes with their victories, medals and trophies in the last four decades. And I am lucky to have been dedicating my professional career to volleyball over the past three decades.

Volleyball has indeed a beautiful history.

From the very beginning, it was the creation of a game that complements many human singularities: it is social, it is very competitive, it is active and it sparks joy and entertainment.

Indeed, by the time I joined the FIVB, both volleyball and beach volleyball were watched and loved by hundreds of millions of fans globally. But the sport was not providing opportunities for even a small percentage of these fans to truly engage with the sport. The FIVB events were not properly delivered by the FIVB itself and there was no consistency and quality in volleyball events all around the world.

Taking the key words of FIVB President Ary Graça - innovation and opportunity - we have started on a journey of changing mentalities and pushing boundaries, putting athletes at the centre of our events, investing massively in content production and distribution, and ultimately improving the quality and consistency of our events to engage volleyball fans in the countries of all 222 FIVB member national federations.

In our more than ever connected, global and digital world, it was clear that we needed to speak the language of our fans. We needed to communicate and connect better. So we embraced technology and innovation, and we developed the sport both on and off the court by reinvesting the money that comes from the sport back into the sport.

This is exactly the clear, solid and creative vison of FIVB President Ary Graça for growing the game: to focus on the success of national teams and athletes inspiring new generations through a modern, innovative and digital approach to communication and promotion.

And by embracing his vision, we have been able to build something new and much better. We stepped forward together to embrace opportunity and we continue to do so to help this incredible sport develop globally and reach its full potential.

The Set Point takes you through what is perhaps the most important period in the history of volleyball to date, the turning point of a worldwide big sport. It provides essential insights into how the sport has developed, but more importantly, why it needed to do so.

Volleyball found its purpose. It found its set point.

Now on to the next challenges and opportunities!

ForewordLuiz Fernando Lima, Volleyball World - Board of Directors - Chair

Volleyball needed a shake-up. And that shake-up is happening. It is a work in progress as I write this - Autumn 2021 - and it will certainly take the sport to a new level. How did this process start? With a new vision and the creation of an environment suitable for change to take place. This is to the credit of the FIVB President Ary Graça, who from his first days as leader of the International Volleyball Federation brought a new mentality to the organisation that for decades had overseen volleyball globally.

When I was invited by President Graça to join the FIVB in early 2013, his approach was simple: engage professionals and, through innovation, create more opportunities for volleyball around the world. More opportunities for fans to have a better experience when attending or watching the top volleyball competitions. More opportunities for boys and girls around the world to practise the sport. More opportunities for National Federations to design programmes for development and to compete internationally. And more opportunities for players and coaches to have their work admired by a much larger audience.

The President’s support was essential for the introduction of technology that has become essential to the world competitions. A good example of this is the challenge system, which has eradicated human mistakes when assigning points. Technology has also been essential to allow for an entirely new way to present the game to the fans: a DJ and a live commentator create a family entertainment on the spot, engaging the fans during each break and celebrating the great actions that take place on the court. It’s a whole new game.

The Set Point describes the journey that has taken place in volleyball. It will also provide you with a vision of the bright horizon ahead.

ForewordNicolas Brabeck-Letmathe and Torsten Koster’, Baussan Concept SA

During the Fourth Industrial Revolution (a term coined by Klaus Schwab, Founder and Executive Chairman of the World Economic Forum) winning organisations, including International Sports Federations, will be those who are able to participate fully in innovation-driven ecosystems by providing new ideas, business models, products and services. For the FIVB it provides a unique opportunity to grow and better connect with a very diverse fan base. But it also results in an even bigger challenge and responsibility to administer this innovative thinking along the lines of traditional sport values! Through Volleyball World, the FIVB leadership has established the right platform to capitalise on this new reality by best mixing sports governance with private sector commercial drive and capabilities. This platform will be the foundation of a virtuous circle where commercial footprint growth will secure the necessary human and financial resources to ultimately strengthen the sport of volleyball. We feel honoured to have been part of that journey.

Glossary

AI - artificial intelligence

B2B - business-to-business

CAVB - African Volleyball Confederation

CEV - European Volleyball Confederation

D2C - Direct to Consumers

EC - European Commission

EU - European Union

FIVB - International Volleyball Federation

FOP - field of play

GDP - Gross Domestic Product

GP - general partners

GEE - Gold in Education and Elite Sport

IoT - Internet of Things

IP - intended position

IPO - Initial Public Offering

IOC - International Olympic Committee

KPI - Key Performance Indicators

LP - limited partners

MMA - Mixed Martial Arts

NBA - National Basketball Association

NFL - National Football League

PE - private equity

PE firms - private equity firms

PP - perceived position

RM - relationship marketing

T&C - Terms and Conditions

USTA - United States Tennis Association

VNL - Volleyball Nations League

VR/AR - virtual reality/augmented reality

Contents

Foreword: Fabio Azevedo, The FIVB General Secretary

Foreword: Luiz Fernando Lima, Volleyball World - Board of Directors - Chair

Foreword: Nicolas Brabeck-Letmathe and Torsten Koster’, Baussan Concept SA

Glossary

Introduction by

Dr. Ary S. Graça F°, FIVB President

Introduction by

Prof. Maureen Flores D.Sc.

Chapter I.

The Mega-Rally

1.1. The deal

1.2. Financial innovations in sport

1.3. The trail blazed

Chapter 2.

Why Changing? Because Volleyball Must Welcome Postmodernity

2.1. Seizing the change

2.2. The chance: management first

Chapter 3.

Volleyball World and the VNL

3.1. Volleyball World by Finn Taylor

3.2. The challenge of creating a new sports event

3.3. The creation of the VNL from the beginning

3.4. Bidding to host the VNL Finals

Chapter 4.

The VNL Marketing and Communication Strategy

4.1. Brand management of a professional sports organisation

4.2. Consistency and recognition: the VNL brand experience

4.3. Looking for congruence: what is the uniqueness of volleyball?

4.4. Looking for congruence: what moves the fan?

4.5. Looking for congruence: what moves the sponsor?

Chapter 5.

Going Global with State-of-the-Art Technology and Social Media

5.1. The social media strategies in the world of sports organisations

5.2. The OTT challenge

Chapter 6.

The FIVB and its Development Strategy

6.1. The pain and the glory of being an elite athlete

6.2. Qualification and development of new talents

Chapter 7.

The Path to the Future

7.1. The why? question

7.2. Volleyball needs to become a proactive actor within the sports tech market

7.3. Volleyball should be managed by data-driven organisations

7.4. Volleyball organisations must welcome new ideas

7.5. Tips for the new marketing strategy

7.6. Professional athletes’ educational agenda

Chapter 8.

Know More About

8.1. Know more about: comments on the methodology

8.2. Know more about: a short history of volleyball

8.3. Know more about: innovation in sport

8.4. Know more about: comments on the FIVB’S Consumer Research 2019 main findings that directly relate to the VNL

8.5. Know more about: the FIVB press release 75

8.6. Know more about: the FIVB press release 76

The World of Volleyball

References

About the Authors

Landmarks

Cover

Title Page

Copyright Page

Preface

Glossary

Table of Contents

Epigraph

Introduction

Bibliography

Contributors

“Someone is sitting in the shade today because someone planted a tree a long time ago.”

Warren Buffett

investment guru and philanthropist

IntroductionDr. Ary S. Graça F°, FIVB President

“… the gale of creative destruction describes the process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.”

Joseph Schumpeter,

economist

In 2012, I was appointed as President of the International Volleyball Federation (FIVB). In 2013, I started my four-year mandate. At that time, I was 69 years old. After a career of 60 years in the volleyball world, and almost 50 years in the legal and financial markets, I found myself facing the challenge of leading volleyball into the future. I have managed to keep myself updated on technological developments - with great help from my seven grandchildren - and, as a result, I noticed how financially dependent the FIVB was on broadcast rights and started losing sleep over it. A total of 90% of the FIVB’s income originated from television rights and I knew that that income was (and it still is) threatened by the post-millennial generation’s preference for mobile phones over television. On the other hand, though, I also recognised, in our favour, that, so far, volleyball had no gender or violence issues and that this attribute would appeal to any brand and, consequently, could be monetised. In short, when I took on the presidency of the FIVB, I had four certainties: (1) no organisation, whether not-for-profit or otherwise, can deliver on its goals without achieving financial sustainability; (2) volleyball was lagging behind in supplying digital solutions; (3) as a sports event, volleyball had to become entertaining; and (4) the FIVB had to be financially sustainable by 2024, in order to secure the future of volleyball. Literally, we needed to change the game and break into the entertainment industry by creating a brand to be packaged in a new business model that supports us in achieving our financial goals. That was our call to innovation: to create a brand that would represent volleyball as an entirely new experience for our fans and then to sell that experience accordingly.

The Volleyball Nations Leagues (VNL) was the answer to our call. For the past 30 years, two competitions, the World League (men) and World Grand Prix (women), have been part of the FIVB Calendar of Events - and both needed a thorough revamp. Archaic business models and event delivery under the responsibility of each National Federation gave us no symmetries in prizes, formats and team numbers; consequently, our brand was non-exclusive and our product inconsistent. It was decided that a new brand, named VNL, would be designed to replace both events.

The political challenge was immense. Over the last 50 years, National Federations and Confederations had generally been operating in a business-as-usual scenario. They paid a contribution to the FIVB and, in return, we agreed to cover their travel and prize expenses, granting them domestic and international broadcast rights, the latter referring to countries where their national team would be playing. Nevertheless, we would not get very far with this business model because National Federations generally lack the marketing and communication skills necessary to negotiate in a globalised world.

They end up having to incur the extra costs of hiring event organisers and content producers and they also lack the proper knowledge to explore the best commercial avenues for the content developed. Ultimately, we gained some positive income, but few rights; they had the rights, but no financial gain. It did not mean that we worked at cross-purposes. On the contrary, we all love volleyball and want it to spread. At the current pace, though, volleyball would not make it into the 22nd century. It was imperative to innovate, and my role was to make that call.

My re-election, in 2016, for an eight-year mandate, provided a supportive political environment conducive to innovation. The launch of the VNL changed the game. For the first time, we had a brand with its own identity, history and consistency. Federations became responsible for making the best of their teams and covering travel expenses. Meanwhile, the FIVB was responsible for prizes, content, broadcasting, branding and field of play production. The outcome was astonishing: our income from broadcast rights grew tenfold, along with our market penetration. After the first edition of the VNL in 2017, both our fan base and resources approached the take-off lift needed to go digital.

Some technological solutions, such as Hawk-Eye (our challenge system) and stats packages, were already in place. Partnering with IMG upgraded volleyball by broadcasting it as “physical chess”, where the six players on both sides manoeuvre, seeking to outwit their opponents. Launching our own Volleyball TV streaming powered by video solutions, such as the WSC and YouTube platforms, generated more engagement than ever. In less than one year, our social media followers on Instagram and Facebook increased by 37.5%, generating a spillover effect of positive engagement with our athletes’ social media.

VNL participant countries were selected in advance, according to GDP and volleyball fanbase size. Countries, represented by their Federations, are constituted as VNL shareholders, as is the IMG. The VNL differs from everything we have done in the past; our learning curve is steep, but we persevere. The VNL is an enterprise with its own brand, products and goals. In its second edition, in 2019, the VNL totalised 260 matches.

The idea of having a new partner to deploy capital has grown on us with the VNL’s success. At that time, we found ourselves operating in a kind of dual transformation momentum, acknowledging that broadcast rights still governed our current business, but, simultaneously, knowing it would not be sustainable. We knew that we had reached a point of no return where there was an opportunity to leverage volleyball to a next-level growth and we wanted to raise the bar.

Then, 2020 happened and stressed the need for technological transformation and internalisation. More than ever, the momentum required financial resources, good management and governance. We did our homework and went to the market looking for a long-term partner to support the growth of volleyball internationally. We found CVC Capital Partners.

In short, I thank the volleyball ecosystem, who understood that leading volleyball to the future demanded a change: the kind of change that presumes, quoting the economist Joseph Schumpeter, “that long-standing arrangements and assumptions must be destroyed to free up resources and energy to be deployed for innovation.” He called that “creative destruction.”

This book aims to inspire sports managers, innovation leaders and change-makers of all ages and backgrounds. Lastly, let me say that one of the great things I have learned during designing the VNL and closing the deal with CVC is that open-mindedness is not age related.

Enjoy volleyball and our rally of innovation.

IntroductionProf. Maureen Flores D.Sc.

“In a liquid modern life there are no permanent bonds, and any that we take up for a time must be tied loosely so that they can be untied again, as quickly and as effortlessly as possible, when circumstances change - as they surely will in our liquid modern society, over and over again.”

Zygmunt Bauman,

sociologist and philosopher

I met Dr Graça in Rome, in 2018, at the Beach Volleyball World Tour Finals, when the FIVB directors formally presented the VNL goals. I was there wearing my second hat (after “researcher”) as a sports tech writer for Latin America’s leading media group.

After 20 years working and researching sports-related innovation and sustainability, I understand the urgency of upgrading sports to the international entertainment industry, in order not to perish, cap in hand. For me, therefore, this book is a snapshot of the challenge of securing the future of a sport and its disciplines.

Sustainability does not take place overnight. The FIVB had to invest in governance, in best management practices and in a new product (the VNL). It had to do all this because looking for a private equity partner is an endeavour that requires a state of preparedness before going to the market.

Formally, the deal between CVC Capital Partners and the FIVB started being discussed in 2019. During 2020, the pandemic did not stall negotiations. At that time, there was just one certainty left to hold on to: an opportunity to raise the bar of volleyball and the FIVB team wants to make it happen. In its vision, secure the future of volleyball would be its legacy, but a capital injection was required to take the sport to the next level of internationalisation, management practices, professionalism, networking and resources, and all possibilities derived from that.