'India is a very important part of our growth strategy' : Marcus Luer- Total Sports Asia CEO

GECs
Jul 07, 2009 /
Ashwin Pinto

'India is a very important part of our growth strategy' : Marcus Luer- Total Sports Asia CEO

Marcus Luer

Total Sports Asia (TSA) has big plans in India. Though it has concentrated on soccer, golf and badminton, the specialist in personalised sport and entertainment solutions is now looking at the opportunity of getting involved with the Indian Premier League (IPL). It views the team franchises as a hot property, offering a wide spectrum of revenue streams.

 

Launched in India five years back, TSA has made progress in different areas like representing World Wrestling Entertainment (WWE) and organising the opening and closing ceremonies of the World Military Games. The plan is to also get involved in the high-profile, high-stakes game of cricket.

 

In an interview with Indiantelevision.com‘s Ashwin Pinto, Total Sports Asia CEO Marcus Luer discusses about the dynamics of the sports marketing business and the company’s growth plans.

 

Excerpts:

How would you describe the progress that Total Sports Asia has made since launching in India five years back?
TSA has grown from a small team in Mumbai to two fully operating offices in Mumbai and Delhi. We work across all our core business lines in India now - media rights, sponsorship, events and consulting. Over the years we have been involved in a host of different activities from the management of the World Military Games Opening and Closing Ceremonies to licensing deals for WWE. This is partially due to the nature of the Indian sports landscape and our wide range of skill sets. We are continue to explore various niche areas and are comfortable across many different sports.

What will be your key areas of focus in India?
India will remain a core market for TSA and we have identified certain sports and entertainment content which will be our focus. Without giving away too much, football, badminton and golf will be an important element for us. We have also identified a variety of local events which we believe have long term potential and we are keen to develop further.

In terms of revenue and business generated, how important is India vis-a-vis the rest of Asia?
I see India as a very important part of our growth strategy in the short and long term. The market has tremendous potential and we will continue to grow our presence.

How does the deal with Nectar Capital benefit Total Sports Asia?
The simplest way to look at this is that Nectar Capital provides us with additional fire power in terms of funding and financial business acumen. Having a strong PE partner makes us a better company.

Cricket is the dominant sport in India . How come you have not been more active in this space?
We have been involved but haven’t been that high profile. There are lots of discussions behind the scene and it is best left at this.
'There are many great value-for-money projects which deliver a strong demographic audience and RoI for the sponsors. Our involvement in the Kerala Boat Race comes to mind. This is one of the biggest tourist festivals in the country and with us getting involved, the event will be elevated to a completely new level'

Are you looking at associating with an IPL franchise to help them monetise and plan better?
Yes, I do believe that IPL franchises have great commercial potential and only very few truly maximise their commercial rights. There has been a lot of noise and too many people claiming that they represent this team or that team. We are quite happy to wait for the dust to settle and then have a smart partnership with the right franchise. The IPL is here for the long-run and so is TSA. The teams will work out pretty soon who is for real and who just talks.

India will be hosting three big events over the next couple of years - Commonwealth Games, cricket World Cup and hockey World Cup. There is also the possibility of F1 race taking place. What opportunities does TSA see for itself here?
These events represent great opportunities for us. We are in different discussions on all 3-4 of them. Some opportunities relate directly to our own core services whereas in others we have teamed up with global partners who will bring in the required skill and services. We are also involved in the World Championship of Badminton in Hyderabad this year, another global event in the country.

India has commonly been called a one-sport country. Will so many big ticket events taking place here change things in any manner?
Yes! I do believe that India is becoming more open to other sports, especially when there is the local hero factor. Saina Nehwal’s recent success in Badminton and the subsequent coverage in the local media shows that people love to see a winner.This was similar when Sania Mirza appeared a few years ago. With more major international events in the country and also better training facilities in other sports, India has the human capital and potential to excel in many areas.

You have plans in badminton with the World Championship this August in Hyderabad. Do you feel that this could be the catalyst for viewership of this sport to grow?
Yes! As I mentioned, badminton is a core sport for us and we are excited over the prospects of this event in India. With Saina Nehwal stepping out of the shadow of the Chinese players, the timing could not have been any better. If she continues this way, we could see an Indian World Champion being crowned on home turf. I think this would put the sport on a fast track to truly make an impact. Badminton has a strong grassroots following but that has not translated into commercial success yet.

How did the deal with Nirmal Lifestyle come about for the US Open?
It was a collaboration between us and the client. We were given a brief and a vision of what Nirmal was looking for and then went out to find the right partners and build a concept around it. It is truly a unique deal for all parties involved and we are confident to add more deals in this space.

What are the other kinds of innovative tie ups that Total Sports Asia is looking at?
There are a host of other unique licensing deals being discussed with global recognised sports brands but it is too early to reveal.

Is there more of an understanding among clients in India about how sports can be used for brand building beyond just cricket?
Yes! I do believe Indian brands appreciate that we don’t just talk about cricket when we sit in front of them but truly show them the opportunities with other sports or entertainment concepts. There are so many other great value-for-money projects which deliver a strong demographic audience and RoI for the sponsors. Our involvement in the Kerala Boat Race comes to mind. This is one of the biggest tourist festivals in the country and with us getting involved, the event will be elevated to a completely new level.
You did a deal with Real Madrid for mobile content in Japan. Will this kind of a service come to India shortly with soccer growing in popularity?
We represent the Real Madrid mobile rights and many other top sporting mobile rights for India as well. Mobile content growth is directly related to the local network capabilities. Having a large customer base in India is a great starting point but the lower spectrum of bandwidth still stops 'rich' content from truly being consumed in India. This is just a matter of time when new technologies will make this experience available in the market.
You also recently did a deal with mlogic. Is leveraging the new media space becoming more of a focus area for TSA?
We are in the process of launching our own online channel (www.totalsports.tv). This will stream live action from various events including the World Championship of Badminton in India and the US Open tennis over the internet. The service is in partnership with Octopus Media in the UK.
Are you planning to work with sports bodies in India to grow sport at the grassroots level?
In general we have a more top down approach. We start with media rights, build an awareness and presence for the sport on TV, and then develop a great ‘live’ experience for the fans. We let the fans touch and feel the sport and the stars and then give the fans what they want in terms of other interaction and experiences to allow them to truly immerse themselves with their favourite sport, team or athlete. This is currently the smarter route to develop the right level of awareness and commercial interest in a sport. That does not mean grassroots is not important and needs to be nourished. I truly believe that’s where the government needs to step up and provide the necessary infrastructure and financial support. Agencies will then be able to support that effort.
Does TSA have plans in the player representation area in India and Asia?
I’m sure this will be a natural process coming out of our involvement with certain sports and sectors.
Apart from India, China is another key market for you. How did the Olympics impact the dynamics of the sports marketing business in that country?
There are clear signs that the event has changed the perception of sport in China forever. The local athletes have become the true heroes of the games and many more stars will come out of the young generation who watched the Games from the sideline. At the same time, the typical Olympic hang over in the commercial sector was also felt, coupled with the global recession. So several new initiatives were shelved or put on hold. Overall, sports in China will continue to grow in double digit figures and the country will continue to produce world class athletes in many disciplines. The investment in the Games will pay off over the next 10-20 years and will make China a huge force in sports globally.
How do you see the current economic downturn impacting the sports marketing business in India and Asia?
The first five months of the year were difficult with a lot of negotiations slowing down or being put on hold. In the last two months we see a lot of renewed interest and discussions being revived. I believe that the corporate sector has managed to see the light at the end of the tunnel and worked out how they need to deal with the climate. Lots of projects for the later part of the year and next year are in full swing.

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