Australia’s sports landscape is on the brink of a transformative journey, offering unprecedented opportunities for sports businesses to exploit emerging trends, some that administrators may not like.
From cutting-edge technology to global market expansion, we explore the strategic implications and legal considerations for sports businesses operating in the dynamic realm of sports. This is not intended to scare executives but rather lift their eyes to the horizon rather than the ever-enticing habit of focussing on the famously never-ending action lists within a sports business.
Tech will always be ahead of sport, and that is a good thing. Sport is a very attractive environment for tech to be applied.
It provides:
Any tech product or service should see a catalysis of the product development.
From a legal and strategic perspective, the area is rich in opportunity to provide value to clients.
There are:
Advising on the legal frameworks surrounding virtual and augmented reality in sports stadiums, and counselling clients on the strategic deployment of wearable technology for athlete optimisation, are pivotal areas of expertise.
Most importantly, handling these very dynamic areas boils down to understanding what the business needs and thinking/acting laterally for solutions.
They might not be legal or as direct as clients think. For example, they are applying a plug-in to an App that accepts information like a new contact form plug-in. The client will be focussing on the aesthetic of the plug-in with the rest of their app, however, those entry points for data mean clear privacy policy terms are needed to comply with the privacy laws of the region, and not necessarily just in Australia.
Esports, a burgeoning industry, presents both legal challenges and strategic opportunities… many of which are based on an enticement of quick conversion from a fan engagement perspective for brands.
The assumption is that the incredible volume of audience from esports will take to brands from outside their community, and that is a dangerous assumption we have had to advise many clients of.
Advisors need to navigate the legal landscape surrounding esports regulations and contractual obligations, each very different to the regulations usually seen in sport.
Sports regulations usually have a significant influence from the public sector and therefore highly angled at a utilitarian net benefit. Esports regulations on the other hand is within a myriad of completely private contracts with no accountability other than to those who wrote them. Strategically, exploring partnerships and sponsorships within the esports ecosystem requires a nuanced approach, considering the legal intricacies of this evolving sector, and a critical eye on the market reaction to similar brands approaching the esports community looking for traction.
Facilitating the global expansion of Australian sports involves navigating international legal landscapes and developing strategies for market entry, as well as preparing sports businesses from outside Australia to enter.
Understanding the legal implications of international tournaments and ensuring compliance with global regulations are crucial aspects of globalization strategies. There is no silver bullet in multi-jurisdictional matters.
Understanding where the risks and opportunities are in such deals requires experience across the subject trade of the respective business and a network to regularly call on.
Strategically, advisors need to assess the market potential for Australian sports globally, identifying opportunities for partnerships, sponsorships, and broadcast rights. Crafting international strategies that align with legal requirements ensures a smooth and successful global expansion.
In the era of heightened fan engagement, far too many assumptions are made as alluded to above regarding the esports market. legal and strategy advisors play a central role in ensuring compliance with data protection laws.
Developing strategies for interactive platforms, social media engagement, and virtual experiences requires a keen understanding of legal parameters and key advice regarding strategic partnerships, particularly regarding the risks with not just laws or regulations but private sector partners looking to make moves with their product or service.
Strategically, advisors can guide sports entities in leveraging fan engagement for brand positioning. Crafting interactive campaigns, developing personalised content, and ensuring legal compliance in fan-driven initiatives contribute to a strategic and legally sound approach to fan interaction.
An important aspect of strategy driving at a new audience is avoiding assumptions that your brand, product, or services provide real value to your target audience.
That would be ideal, however listening to quality, objective market research and avoiding wasting money ensures you save time, and when investing in growth, time-effective progress is a significant net return on investment.
This does not mean you follow the data from the market research to a tee, but ensuring you allow it to influence your decision-making ensures the risks you take involve contingency plans and a safe zone for investment adjustments to drive closer to the objective data if needed.
As the sports landscape in Australia evolves, legal and strategy advisors are pivotal in guiding organisations through the intricacies of technological innovation, esports, sustainability, globalisation, and fan engagement.
By understanding the legal nuances and strategically positioning sports business within these trends, advisors can unlock new avenues for success.
The varied media opportunities are examples of this where traction from influencers on social media provide far more return on investment than more traditional forms of marketing campaigns.
The future of Australian sports is not only exciting for fans but presents a wealth of opportunities for experienced legal and strategy advisors to add value at most decision-making points, ensuring their clients stay ahead in this dynamic and transformative industry is their value as long as they kick the stigma of being “handbrakes” to progress that executives need to make to remain relevant and agile in market.
