Climate Crusade: SailGP Charting a Course for Change at COP28 ⛵️
Plus, Castore valued at £1 billion and the NBA double-down on their focus on Africa (as well as a throwback to last year's Big Idea surrounding Spotify Wrapped)
Welcome to Sports Pundit, the sports business newsletter getting you up to date faster than the free drinks disappeared at yesterday’s Social Club event in London.
A massive thank you to everyone who attended in either London and Los Angeles!
For me, it’s been so rewarding to host these events, to put faces to names, and for us all to get to know each other a little bit more personally.
In today’s email;
SailGP’s Race for the Future ⛵️
Castore’s $1 Billion Valuation 👟
NBA Expands its African Presence 🌍
Thanks also goes out to Eddie for being the latest guest to come on the Sports Pundit Podcast and to all of you who have listened and shared kind messages about the pod.
Best wishes,
Andy 😊 🙏
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TOP STORY
Climate Crusade: SailGP Charting a Course for Change at COP28 ⛵️
SailGP, a front-runner in purpose-driven and sustainable sports, is showcasing its unwavering commitment to climate action at the Emirates Dubai Sail Grand Prix this weekend.
Coinciding with COP28, the world's largest climate change conference, SailGP aims to leverage the event to underscore the transformative impact of sports for good in inspiring change.
In the competitive world of sport, SailGP, founded by Larry Ellison and Russell Coutts, stands out not only for its technological and entertainment prowess but also as a global sustainability trailblazer. From its inception, the league has strategically embedded sustainability into its core values.
Pioneering initiatives like the 'podium for the planet' (Impact League), being the first to disclose with CDP in 2022, achieving Carbon Neutral International Standard, and securing three gold medals in the U.N. Climate Neutral Now Initiative, have solidified SailGP's position as a global leader in sports advocating for a better world.
Sports Pundit says
🤔 SailGP is an example of a rightsholder which has deliberately set high ambitions to be both purpose-driven and sustainable.
They have looked at their business operations and set big climate targets, such as reducing carbon footprint by 55% by 2025, as well as being the first sport to have a remote broadcast – so instead of flying roughly 100 staff to each event, they work from a broadcast hub in London.
As well as the argument that these actions are the right thing to do, there is also a strong commercial argument for SailGP to be taking these steps.
A multitude of reports suggest that Gen Z is at the forefront of climate action. Most tellingly, statistics in the U.S. suggest that 54% of Gen Z will pay 10% more for a sustainable product, compared to 50% of Millennials and just 23% of Baby Boomers.
By focusing on and highlighting their purpose, SailGP is able to align themselves with the values of this younger generation, as well as with the brands who are wishing to appeal to them.
Read More: Lose the excuses: Creating a winning sustainability formula ♻️
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OPINION
How did Castore Become a £1 Billion Sportswear Brand? 🤔
From humble beginnings, Castore is now valued at over $1 billion (£950 million) with revenues doubling yearly.
The British sportswear firm has recently reached these dizzying heights after securing roughly $190 (£150) million from a trio of investors as they look to expand the brand on the global stage.
Founded just 6 years ago by brothers Phil and Tom Beahon, Castore has experienced explosive growth through partnerships with prominent sports stars, teams, as well as having a number of athlete investors on their cap table.
Mike Turns (Managing Director, 4CAST), believes that their approach with athletes has been crucial in their growth to unicorn status.
This has included getting tennis icon Andy Murray on board in 2019, as well as joining forces with cricketer Jos Buttler and sponsoring and supplying kits for a dozen top sports teams, from Newcastle United to England Cricket.
Backed by elite athlete-investors, Castore shows how strategic partnerships and credible names can power startups to meteoric growth. Rather than exorbitant marketing spends, ambassador equity deals have fuelled this inspiring brand's ascent.
With icons like Murray on board alongside new high-profile backers, Castore seems primed to dominate the sportswear arena.
Are we going to see a change in athlete ambassador / sponsorship deals in the future as a result of Castore's success?
HIGHLIGHTS
Premier League’s TV deal solidifies their dominant position and means they will earn up to 50% more than their rivals each and every season until 2029 📺
Sports-focused US private equity group Arctos has taken a stake in Qatari-owned Paris Saint-Germain at a valuation of more than €4 billion ⚽️
The ECB will invest £100 million into the women’s domestic game as centrally-funded regional teams are handed back to the counties in 2025 🏏
Amazon Prime gives up Premier League rights and pivots to boxing, declaring a partnership with Premier Boxing Champions (PBC) 🥊
The National Hockey League (NHL) is finalising details to hold a ‘dramatic’ 2024 NHL Draft in Vegas Sphere 🏒
Activision and Charly have teamed up to celebrate 20 years of Call of Duty with special kit launch among their sponsored Liga MX teams 👕 See also: Inter Milan limited edition kit with Transformers sponsor.
SLAM DUNKONOMICS
Courting Success: The NBA Continues Laying Strong Foundations in Africa 🏀
Last week the NBA unveiled its latest venture in Africa, a newly established office on Kenyan soil, nestled within the vibrant confines of Westlands, Nairobi.
The NBA Kenya office stands poised to amplify the league's multifaceted pursuits in the region, extending its supportive arm to both business endeavours and the nuanced landscape of basketball development within the country.
In the mosaic of NBA Africa's continental footprint, Kenya now proudly claims its position as the fifth hub, joining the ranks of Egypt, Senegal, South Africa, and Nigeria.
This strategic move unfolds in the wake of the NBA's earlier pronouncement designating Johannesburg the fourth bastion for their prestigious Basketball Africa League (BAL), joining Cairo, Dakar, and Kigali in either hosting a conference or the seeding and play-off games.
Notably, the NBA has also unveiled plans for a burgeoning junior league in South Sudan, poised to kick off its inaugural season in early 2024.
Sports Pundit says
🤔 With a population of over 1.3 billion people, the continent is home to a young demographic passionate about sports. And as a result, African sports offer a dynamic and thriving market, brimming with untapped potential for rights holders and investors.
By forging alliances with local stakeholders and leveraging their expertise, the NBA has created a platform to nurture talent, develop infrastructure, and promote the commercialisation of African sports.
Talent which includes the MVP of the 2023 NBA season, Joel Embiid. The Cameroonian, who has become a 6x NBA all-star, was in fact first spotted at a Basketball Without Borders camp in Johannesburg in 2011.
By recognising the growing market, developing local talent and infrastructure, and unlocking commercial opportunities, the NBA’s moves in Africa are a wonderful demonstration of the possibility for other African sports to offer investors and rightsholders a similar chance to make a meaningful long-term impact and reap returns.
Read More: Slam Dunkonomics: Why Investing in Africa is Net Positive for the NBA (and others...) 🏀
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THE PODCAST
Want to hear more from my conversation with Eddie?
We discuss the impact of Beckham and Messi on soccer in the U.S., taking investment from Major League Soccer (MLS), applying lessons from playing professional football to founding a company, using technology to close the gap and enhance player development, and much, much more.
Listen to the full podcast via the link below - and I’d love to hear what you think!👇
JOB BOARD
Premium Experience Manager - Formula E (London, UK)
Sponsorship Insight & Strategy Lead - Two Circles (London, UK)
Senior Manager, Club Performance - MLS (New York, US)
Manager Marketing Strategy & Execution - PGA Tour (Florida, US)
Brand Consulting - Golf - Account Manager - CAA Sports (Florida, US)
Do you have a job you’d like to promote to the amazing readers of this newsletter? Drop me a note at andy@sportspundit.co
SOCIAL CLUB
The Sports Pundit Social Club (SPSC) was designed to enable you as readers to hang out with one another without the heavy cost that often goes with traditional sports industry events.
So far, it has achieved that goal. We’ve had 40+ attendees at the past three events in London and has even seen the concept expanded to New York and Los Angeles 😀
In 2024, I hope that these events will be back, better than ever.
If you’d ever like to come to one, or you’d like to request a future meet up location (current suggestions include Sydney, Dublin, and Lisbon), please register your interest below 👇