Guest post: Stewart Mison is owner of Evolve Media Limited, a sports digital consultancy that has created a business solution for the development and management of a Connected Stadium to deliver a 360 degree commercial operation. They employ unique Matchday Software to engage with the fan base; to capture dynamic data which in turn feeds to a CRM programme and delivers an increase in matchday earnings. 

We live in the AGE OF NOW – Always On- Always Connected to our choice of smart media. In watching televised sport at home or in a café or bar we can choose second screen viewing information to enhance our enjoyment.  But nothing beats watching sport “live” in the Stadium, however most venues are not digitally enabled and as such it is nigh on impossible to make a phone call, send a text, use email, engage social media, let alone access data and stats on second screens.

Is this really important? The demands of the consumer (in this case the fan) have changed-they want more.  It is easy to identify how provision of these basics digital services can increase fan entertainment, build deeper engagement and enhance earning yield. However the business barrier is that the majority of stadiums were constructed before the advent of digital technology and the capital expenditure to equip a stadium for the 21^st Century digital world is seen as prohibitive due to other business priorities, the structuring of Club financial business models and sometimes inelastic business models.

At this point in the debate, let’s set aside the cost issue and focus on what connected stadium can deliver.

• A football stadium on matchday is a highly charged and emotional sales environment for Merchandise and Concessions. Imagine being able to put a sales message to each fan in a very personal way. Imagine capturing Business Intelligence on these fans and tailoring sales propositions accordingly. Imagine cross tabbing this with season ticket and corporate hospitality. Imagine the huge impact this would have on existing CRM services.

• As much as increasing the yield from those attending at every home game, there is the wider argument that creating a better “Entertainment Environment” is going to become key in the future. Many in control of sports stadia did not grow up with smart digital technology. But the young fans (the Millennial X-Box generation) want and demand more. They want access to social media sites where they can engage with their mates Before, During and After the match. Failure to plan on servicing these demands is planning to fail in the digital space and risk alienation of the fan base. Once upon a time the fan voted with their feet; now they are vociferous in digital media.

• We should also spare some thought for the commercial partners of sport. Most are sophisticated multi-national brands, supported by an array of digital marketing techniques that in an area where they are asked to invest millions of pounds, they are unable to create digital activation solutions. Let us not also forget that Betting Companies are partners of many Clubs and direct connectivity to their platforms to provide “In Game” betting opportunities is much in demand in the small handful of forward thinking Stadiums that are connected.

• All of the above can easily be combined and delivered through a Matchday App which can either be a standalone solution or an SDK style plug in to a Club’s existing Apps. What it must do is take the fan on a journey on matchday – Before – During and After the game, engaging with them through entertainment opportunities and providing the commercial partners with digital activation and marketing platforms.

Addressing these solutions throws up many other questions, not least of which will be which digital service provider to use; wifi v DRS; the operational fit to existing IT infrastructure, human resource and the financial cost.

These are valid concerns and most can easily be answered in a flexible and simple way that in many cases does not require high up front CAPEX. The first step is to agree this is a business need and then commence the dialogue. Once dialogue starts the concerns become workable needs that in turn lead to profitable end solutions.  Of course the Elephant in the Room is how much does this cost?

Cost is subjective in two ways. Firstly it depends on the financial scale of the business looking to install a digital stadium and the second is the Return on Objectives (ROO) – does it do the job it is tasked to do? Likewise the actual CAPEX can take many shapes.  First off, can the savings a digital stadium achieves be used to offset the expenditure? Secondly, as above are the deliverables capable of producing the revenue returns to warrant funding. That said it is recognised that neither of these cover any initial capital outlay. There are a number of funding solutions that can stay off balance sheet (thus working with UEFA Financial Fair Play regulations) but provide full or partial cost cover in exchange for certain commercial rights.

Every digital stadium opportunity has its own set of business dynamics that if football clubs approach with an open mind and without unrealistic values or demands, will quickly deliver better and deeper entertainment and engagement for the fan, cost savings and new income streams.

We are nearly in the second half of the second decade of the 21^st Century. Smart Media use is only going to increase as the Millennial Generation matures, younger fans come forward and the luddites are slowly out grown.