What will Sports Tech look like in 2024?
Reflecting on the culmination of major sporting events like the FIFA Women’s World Cup, and the Rugby and Cricket World Cups, 2023 has bid farewell, leaving in its wake a trail of technological innovations and both emerging and established trends. With a new year upon us in sports tech, as always, we find ourselves at the intersection of change and evolution.
A tradition since our inception in 2019, we embark on the annual exercise of predicting key activities within the sports tech space for the upcoming year. Web3 gained momentum in late 2022, yet the spotlight in 2023 was seized by AI. The question lingers: will the AI boom sustain itself in the coming year, or is there another tech trend waiting to challenge its assertion?
Delving into the realm of incumbents, the media rights landscape experienced a (seismic) shift as major European leagues grappled with the valuation of their rights. Read along as our Chief Operating Officer, David Gonçalves and our Chief Strategy Officer, Jean-Baptiste Alliot provide insights into the activities and trends that could shape the future of the industry in 2024!
Which tech developments from 2023 do you think are here to stay? And which trends do you envision to make a mark on the industry?
David believes more and more initiatives to personalise content and engage the fans through building a community will be observed in 2024. Personalisation impacts clubs and leagues in maintaining and growing their fanbase, where their brand is their key IP.
However, the same initiatives for broadcasters and sponsors are observed where personalised initiatives are essential to capitalise on their investments (essentially, that means clubs and leagues must deliver new services).
The Premier League is a good example, as it announced “The Fan Engagement Standard” last season. The resulting plan showcases the positive steps the league has taken to supporter engagement during the 2022/23 season, including the appointment of a nominated board-level official to oversee fan engagement, the creation of a Fan Advisory Board (FAB), and the delivery of co-created supporter initiatives. In retrospect, David reiterates that all the initiatives around fan engagement platforms will continue.
JB identifies 3D data as a prominent tech development, anticipating increased usage for sport performance teams due to cost democratisation. He envisions the ultimate promise of 3D data in fan experience applications, though full maturity is yet to be reached. While AI has been in use for data compilation, automated tagging, and analysis within sports organisations for several years, its role is expected to scale and become more prominent. This shift is twofold: firstly, catering to the attention economy to attract more eyeballs and enhance the ROI for sports assets, leveraging true data and tracking capacities, particularly related to content creation and distribution.
Secondly, in the realm of business management, sports organisations are anticipated to increasingly adopt such technology to enhance efficiency in their processes, aligning with trends observed across various sectors. It's worth noting that despite past promises, the immersive experience after VR, AR, and the decline of the Metaverse is still pending. Apple's upcoming device through a pair of glasses could potentially be a game-changer, but its realisation appears more likely in the long term, making it an unrealistic expectation for 2024 and a key transformative factor.
“The ultimate promise lies in the fan experience potential & commercial applications of 3D Data once it will be mature enough with the possibility of having 3D broadcast rights” - Jean-Baptiste Alliot
What strategies will sports organisations and teams employ to adopt & leverage sports tech in 2024? What could pose a significant challenge to them?
JB emphasises that while some top-tier organisations have dedicated teams and resources to source, test, and deploy new technologies (explore some of the top solutions from 2023) with legal and business processes in place, they represent the exception. The majority, even within tier 1 organisations, lack tangible leadership support, resources, time, and concrete strategies for effective integration. Funding within sports unit partnerships (SUPs) has significantly decreased, impacting the ability to cover costs and accept free proof-of-concept (POC) projects.
This is further compounded by the shift toward prioritising profitability over innovation and the redirection of resources toward sustainability and environmental issues, ushering in a new era where CSR and the impact economy take precedence. As a result, the challenge for sports organisations is multifaceted, spanning financial constraints, a shift in economic priorities, and the changing landscape of innovation in the sports industry.
How much progress do you foresee in sports organisations' digital/innovation maturity in 2024, considering the traditionally slow evolution and recent challenges, such as the tender processes for major European Leagues' rights?
David sheds light on the interconnection of the sports industry's digital evolution with its core business, citing the Premier League's tender as indicative of a trend in premium content valuation. (Premier League domestic TV rights sold for a record UK£6.7bn for the 2025-2029 cycle) He notes the global economic situation and specific territorial challenges affecting other leagues' valuations. In the upcoming cycle, global broadcasters will observe these trends, and leagues will emphasise their ability to distribute content, influencing short-term revenue and future negotiations independently. The competition between Premium Rights/brands and tier 2 & 3 rights will be higher. The main challenge for the market will be to find the right balance between the value delivered and the ROI for the different parties involved.
The industry is poised to operate at two different speeds: Organisations with premium content will prioritise high-fashion delivery and innovation, while tier 2/3 entities will need to initially focus on developing an independent content distribution strategy.
“Leagues’ ability to distribute content by themselves will be key not only from a short-term revenue perspective but also to engage a new kind of competitor in future negotiations”
JB provides an alternate perspective, expressing doubt about significant progress due to structural components within the sports industry. He anticipates limited progress and a slow pace, citing economic and market forces that discourage risk-taking. M&A and market consolidation are expected at various levels, and the primary focus of innovation, in agreement with David, will be on maximising operational efficiencies rather than investing in new business assets and models.
“The progress will be limited and will remain slow because of structural components within the sport industry, and very few will continue to pave the way and push the boundaries when it comes to digital and/or more broadly innovation initiatives” - Jean-Baptiste Alliot.
Which sector or sports in particular will showcase greater adaptability to emerging sports tech trends?
On this note, David foresees a gradual and smooth nature of change in the sports industry, acknowledging the existing legacy and highlighting potential adaptability in new sports and competitions. He specifically mentions monitoring Premier Padel, football's evolution with the Super League/UEFA dynamics, and the impact of Paris 2024 globally.
“The sports industry never starts a year or a season from scratch. The industry has a lot of legacy. So, the change will be smooth and progressive. New sports and competitions may be easier to adapt to, even if they have to find their place in the constantly evolving media landscape” - David Gonçalves
However, JB, believes that adaptability depends on the organisation and its leadership rather than the sector or sport. He, in conjunction with David, also cites examples like Premier Padel & PTO as new players, as well as traditional international federations like the World Baseball Softball Confederation, demonstrating that innovation can come from various entities. Something that cannot be missed, JB acknowledges the influence of investments from PIF and Saudi Arabia in bringing a new approach to business operations.
“I don’t think it is a matter of sector, size or even sport in itself. It all depends on the organisation and its leadership team to have a vision and strategy for which embracing technology is key to remain relevant”
What kind of impact do you envision these trends having on the global sport industry?
JB anticipates a challenging year for the majority of sports organisations, attributing it to negative macroeconomic factors such as reduced fan spending, cord-cutting, decreased liquidity in the equity market, profitability prioritisation, and potential plateaus or declines in media rights. He envisions a widening gap between tier 1 competitions and other sports entities, with established players benefiting from leadership, dedicated resources, and visionary leadership teams. In contrast, organisations lacking these attributes may struggle to keep pace and experience plateaus in their growth.
"In 2024, many sports organisations face overall struggle due to negative macroeconomic factors. Yet, those with established leadership, dedicated resources, and visionary teams are poised to continue testing, deploying, and adapting new technologies."
Curious to know our team’s predictions for 2023?