Game On: Experiential Venues Worth a Shot to Engage Fans Outside the Stadium
A remarkable 69% of fans, particularly from younger generations, now prefer watching sports outside the venue. Could experiential venues like TOCA Social play a role in engaging this audience?
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BIG IDEA
In the dynamic realm of live sports, rightsholders face an unprecedented challenge to keep pace with the evolving preferences of fans.
Among those preferences is one particularly concerning trend: a declining appetite to watch sport in stadia.
This was highlighted by Capgemini Research Institute's June report, 'A Whole New Ball Game: Why Sports Tech is a Game Changer,' which claimed that a remarkable 69% of fans, particularly from younger generations, now prefer watching sports outside the venue.
This shift is fuelled by various factors, including the decline of (many) stadiums, as well as increased availability of content online, and the continuous enhancement of viewing experiences through immersive technology.
During the current economic climate, cost should also be a consideration, too.
As far as this trend is concerned, the generational contrast is stark. 77% of Gen Z and 75% of Millennials have expressed a preference for watching sports away from the stadium, compared to 53% of Baby Boomers and 32% of those above 70.
While major global competitions still draw strong attendance, the same cannot be said for local and regular league games. This change in fan behaviour contributes to a decline in physical attendance, with only 34% of fans visiting sporting venues frequently, down from 47% in 2019.
The decline in in-person attendance is most pronounced in countries like Australia and the UK, where half as many people watched sports in person compared to 2019. Even France and Germany, who experienced the smallest decline, highlight the global nature of this phenomenon.
Addressing this challenge demands innovative solutions that bridge the gap between fans and the live sporting experience.
One solution gaining some attention is the concept of experiential venues, exemplified by the likes of F1 Arcade, TopGolf, Sixes Social Cricket, and TOCA Social.
Formula 1, who are in the process of expanding their F1 Arcade concept across the U.S., and the MLS, who notably invested into TOCA in October of last year, are two rightsholders to have recognised the potential of such ventures in engaging fans outside the match day venue.
As Eddie Lewis, CEO of TOCA Football, the latest guest to come on the Sports Pundit Podcast, explained, “From the leagues’ perspective, although there's been a lot of growth in a lot of areas, the touch points with MLS teams are traditionally just once a week, during the games. So, their ability to engage fans on a more regular basis [through TOCA] is obviously something that's of huge interest.”
Lewis also points out that this is only heightened by the increased availability of high quality non-domestic soccer content that is now available across the US.
“When the MLS launched, there wasn't Premier League games on every single weekend as well as LaLiga matches or Bundesliga,” he added. “It's a much more competitive landscape from a fandom perspective.”
As a result, this makes the alignment between TOCA and the MLS that much more important. There is an eventual ambition to have a physical TOCA Social venue in every MLS market. Lewis also hinted at plans to align with other leagues as the company expands into various markets globally.
While TOCA Social successfully provides an alternative physical touchpoint for fans, it also has focused on creating an experience that transcends traditional gender and fan divides.
Let’s face it, some football stadiums, particularly in the UK and Europe, can be seen as hostile environments which are not all that welcoming to new audiences. This was a concern for Lewis when setting up their first venue in London, the capital of a “football mad” country and home to seven of the 20 teams in the Premier League.
With that in mind, Lewis and TOCA have strived to create an environment that is rooted in football but appealing to both the hardcore fans and non-football enthusiasts, establishing a neutral ground for diverse audiences.
TOCA's success in creating this inclusive environment serves as a model for how experiential venues can cater to the diverse preferences of modern sports enthusiasts – and highlights the role that such venues can play for leagues and teams in reaching and engaging with the majority (69%) of fans.
Of course, various strategies merit consideration simultaneously. It would be disingenuous to suggest TOCA Social or experiential venues are the only solution.
Anything from the construction of cutting-edge stadiums (as exemplified by Tottenham Hotspur and Real Madrid) and the enhancement of facilities in the vicinity of venues (illustrated by Manchester City and Brighton & Hove Albion’s plans), as well as aspects such as pricing, ticketing strategies, and efforts to counteract piracy could have an impact.
However, amid these all these thoughts, the appeal of establishing digital (think: content and video games) and physical touch points (such as that offered by the likes of TOCA) which are independent of match days, are certainly worth consideration and not to be sniffed at.
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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)
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