Wallabies legend Stirling Mortlock says tech and data will lead sports to new money
Wallabies legend Stirling Mortlock believes digital literacy is the future of sports economy, and has stressed the importance of sports being ‘connected to their communities’ as money dries up.
Data and software will be the secret weapons sports can use to unlock funding as traditional methods of income dry up, former Wallabies captain Stirling Mortlock says.
The rugby legend, who founded sports advisory firm XV Capital, also believes that every organisation will need to hire a chief innovation officer who can take the data and shape their strategies.
In a cost of living crisis and shrinking advertising market, all sports are fighting to keep customers attending stadiums and watching live games, while battling for sponsorships and corporate support.
Mortlock, who will address the National Sports Convention summit in Melbourne from June 27-28, believes digital literacy is the future of sports economy.
“Sports need to be really connected to their communities to find broader funding sources,” Mortlock said.
“It’s not easy, but technology can be the bridge to help facilitate that. For sports and rights holders to work out how to do that is a challenge.
“For us, a big focus is there needs to be a fundamental mind shift in sports that, ‘Who is going to drive this in our particular organisation? Who is our chief innovation officer, who is driving innovation within our sport and in how we make decisions?’
“That’s the most important thing that may be lacking, certainly from the perspective of our advisory business, that’s something we really identity and we’re talking to all sports about.
“If they don’t have someone internally who can do that, we can help. We know that this is a gap in the market, and we’re happy to help facilitate that.
“All sports should be thinking more about what they’re doing digitally, from an efficiency and scalability point of view and connecting with the community. Typically, someone needs to be driving that innovation in that organisation.”
Mortlock revealed that software aligning sports with their communities already exists.
“We’re already seeing some technologies that, if you’ve got that, they can connect your entire base; your players, participants, members, fans, sponsors and partners all together as one through payment platforms and everything else,” Mortlock said.
“There’s interesting tech out there that can help facilitate that.
“But really, you’ve got to start off with that innovation, the strategy, having control of your community and your data.
“At XV, we’re working with rights holders, helping them navigate their way through innovation and utilisation of technology, the second part of what we do is work with the sports sector to ensure they’re battle-ready and solving problems the rights holders have, and doing it in a really efficient and effective manner.
“And the third part of our business is investing in the sports tech businesses that are going really well.”
While major US sports including the NFL are broadcast on multiple networks and streaming services, Mortlock warned Australian codes from spreading their matches too far and wide.
“Australia is a really competitive landscape with only a population of 26 million, you’ve got over 100 professional sporting teams, and that doesn’t include horse racing and other sports that aren’t team based but big participants in our sports ecosystem,” Mortlock said.
“That’s also not including adventure and action sports that are coming in and have increasing participation. So it’s an incredibly competitive marketplace.
“As Aussies we grow up loving and being engaged in sport.
“But just because something works overseas, it doesn’t mean it will work here.
“Having said that, the sports that are dominant globally, have done it using innovation and are really data-driven in how they make decisions and engage with their fans.
“The NBA have had their own Launchpad programs, they’re actually disrupting within, using innovative technologies in their sport, their understanding of fan engagement has always been driven by data.
“There was a point in time where in sport in this part of the world, data was considered a mobile number and an email address that may not have even been active.
“So they’ve been really progressive around knowing what their demographics are, and customising the platforms they create. Everything they do around their sport has been really advanced.
“And that’s where sport is at right now, the fan has to be at the heart of every decision a sport makes. The NBA have been doing that for at least 10 years.”
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