The Golden Decade of French Sport

THE GOLDEN DECADE OF FRENCH SPORT

Between the prospect of growth and the need for development

A study on the commercial opportunity for French sport

(FROM 2022 TO 2032)

Date of publication: 16·06·23

GLOBAL REVENUES OF PROFESSIONAL SPORTS IN FRANCE WILL ALMOST DOUBLE BY 2032

Estimated at €4.0 billion in 2022, the global revenues of professional sports in France will almost double by 2032 (€7.8 billion), thanks to the impact of the Paris 2024 Olympic and Paralympic Games on the consumption of sports in the country, as well as the ongoing digital transformation and commercial development of French sports organizations.

OVERALL REVENUES

€7.9BN

7% increase YoY in the period 2022 to 2032

As a result of hosting the Olympic and Paralympic Games, overall revenue from professional sport in France will almost double by 2032 to €7.8 billion, close to matching the projected peak in revenue generated by the French sports economy in 2024.

ABOUT THIS STUDY

With a compact calendar of major international sporting events taking place in the country in both 2023 and 2024 - culminating in the organization of the Paris Olympic and Paralympic Games - French sport is poised to enter a Golden Decade

This study, conducted by Two Circles in partnership with Global Sports Week Paris, focuses on an analysis of this coming decade, and predicts that the value of the French sports economy will reach €7.8 billion in 2032 - a growth of 97% from €4.0 billion today. Its annual growth percentage over the next few years will increase 7% per year, compared to 3.6% growth per year in recent years (excluding the Covid 19 period).

Major sporting events, and especially the Olympic and Paralympic Games, are characterized by their ability to mobilize a significant part of the national sporting ecosystem. They engage the public and increase interest in sport, while also offering a platform for visibility and a unique opportunity for development and transformation for the host country and all involved directly or indirectly in them.

If the French sports ecosystem can seize this opportunity, these major sporting events can allow the entire national sports sector, from grassroots to professional sport, to enter a new era – into a golden decade for sport. Their success and long-term legacy will boost French sport and the economy of French sport as a whole.

Nevertheless, this next decade will pass quickly, and opportunities will be missed if the French sports ecosystem fails to adapt and rise to the challenge.

CONTENT OF STUDY COMMERCIAL DATA

covering the sports main revenues (sponsorship, media, eventday)

. Via a business model developed by Two Circles based on both expertise and proprietary data accumulated alongside the largest French and global sports organizations for over 11 years.

BEHAVIOURAL DATA

related to fans, their interests, and their consumption of sport.

Via a survey of a 1,500-strong French panel between the period of March 9th to 21st 2023, identified as representative of the French population in terms of age, gender, geography and socio-professional category.

MARKET TRENDS

Through interviews with players in the French and international sports ecosystem (rights holders, sponsors, media, experts) who work daily, directly or indirectly, for the development of sports and the sports economy in France.

A FOCUS ON FIVE MAJOR AREAS IDENTIFIED AMONG OTHERS, AS PRIORITIES IN THE DEVELOPMENT OF SPORT AND THE FRENCH SPORT ECONOMY IN THE YEARS TO COME

DIGITALIZATION AND GROWTH

DEVELOPMENT OF WOMEN’S SPORT

Opportunities, impact and legacy

Direct-toConsumer strategy, fan engagement and monetization

EVENTDAY STRATEGY

1 2 3 4 5 THE ORGANIZATION OF MAJOR INTERNATIONAL SPORTS EVENTS IN FRANCE

The segment of the French sports economy with the greatest growth potential, still under-exploited

Offering an experience adapted to all audiences, to reach full stadium capacity

INTERNATIONAL DEVELOPMENT OF THE BIGGEST FRENCH BRANDS

Maximisation of media rights and sponsorship of the leaders of the French sports economy

KEY FIGURES OF THE STUDY: GROWTH OF SPONSORSHIP, MEDIA AND EVENTDAY REVENUES, THE MAIN REVENUES LINKED TO SPORTS MARKETING

EVOLUTION OF SPONSORSHIP/MEDIA/EVENTDAY REVENUES

SPONSORSHIP

• Sponsorship revenues will increase thanks to the marketing and monetization of digital products

• Major international sports events will also increase fan interest in sports, which will drive more brands to invest

MEDIA

• Revenues from the sale of broadcasting rights will increase slower than those from sponsorship and eventday.

• Nevertheless, the marketing of international broadcasting rights is currently under-exploited by the leading French sports organizations, which offers them real growth opportunities.

EVENTDAY

• The upcoming major international sports events will boost fans’ appetite for attending live sports events

• By 2032, eventday revenues will exceed media rights revenues

METHODOLOGY

The data includes revenues generated by all assets of high-level sporting properties and events based in France via sponsorship, media rights and subscriptions to D2C media platforms and eventday sales.

High level sport is defined here as events featuring athletes who are paid to take part in official competitions and who obtain the majority of their financial income through their activities in sport (via salary, bonuses or any other type of financing).

Sponsorship is defined as a relationship between a sports rights holder (league, team, tournament, federation, governing body, athlete, or sports venue) and a company, through which the company receives marketing guarantees in exchange of financial or business services. The figures only cover the fees to be paid.

Media covers media rights revenue and revenue related to the marketing of D2C media subscriptions, both nationally and internationally and for live or non-live content

Eventday covers all revenues generated by the sale of General Public and premium tickets as well as revenues related to merchandising.

KEY FIGURES OF THE STUDY: GROWTH OF SPONSORSHIP, MEDIA AND EVENTDAY

KEY FIGURES FROM THE STUDY: REVENUES BY SPORT IN FRANCE

REVENUE

revenues will increase to reach

the French professional sport economy.

KEY FIGURES FROM THE SURVEY: 22M SPORTS FANS IN FRANCE AGED 16 AND OVER

40% of the French adult population is a sports fan. As for women’s sport, France has 12.8M fans in 2022. Although this represents a considerable share of the French adult population (23%), the percentage remains relatively low compared to countries where the growth of women’s sport is more advanced.

FANS BY SPORT

The average age of sports fans in France is 46, with a fairly even distribution between age groups.

TOP 10 FAVORITE FEMALE FRENCH ATHLETES

Football is by far the most popular sport in France. Tennis, athletics, cycling and rugby have relatively equal fanbases, with 35% to 41% of sports fans being fans of these sports.

TOP 10 FAVORITE MALE FRENCH ATHLETES

1 1 2 2 3 3 4 4 5

5 9 9

6 6 7 7 8 8 10 10

International football player Wendie Renard is the most popular female athlete in France. The top 10 is made up of six Olympic medalists, three international footballers and two tennis players, all of whom have performed in competitions broadcast on free-to-air television. This underlines the importance of visibility and broadcasting in supporting the development of women’s sport.

KEY FIGURES FROM THE SURVEY: 22M SPORTS FANS IN FRANCE AGED 16 AND OVER

Football players are largely represented in the top 10 male athletes (5 out of 10). Four of the top 10 athletes have known recent successes and were largely present in the media sphere.

Wendie Renard

Kylian Mbappé

Laure Manaudou

Zinedine Zidane

Caroline Garcia

Teddy Riner

Amélie Mauresmo

Antoine Griezmann

Amandine Henry

Olivier Giroud

Jeannie Longo Antoine Dupont

Marie-José Pérec

Karim Benzema

Clarisse Agbegnenou Yannick Noah

Eugénie Le Sommer

Julia Simon Kévin Mayer

THE ORGANIZATION OF MAJOR INTERNATIONAL SPORTS EVENTS IN FRANCE: OPPORTUNITIES, IMPACT AND LEGACY

ATTENDANCES OF BRITISH SPORTS BETWEEN 2012-2022

76.2M FOOTBALL 66%

Despite an expected drop in revenue and attendance after the year of the Games, a host nation’s sport economy should see faster annual growth after the Games than before.

All major international sporting events, at their level, have the potential to have an impact, and to create an opportunity for legacy and sustainability. Whether it be sporting, economic or social.

But the Games are truly the only event large enough to mobilize and create a widespead engagement around sport across an entire country.

The Games establish a foundation for long-term growth through a momentum of engagement and interest that cannot exist without this unique opportunity.

The sport ecosystem must work collectively to convert the excitement and increased public engagement around these events into long-term interest and concrete, sustainable business opportunities.

Major sporting events bring out new processes and new techniques in terms of marketing strategy, ticketing, stadium experience, security, sustainability and resource optimization. This experience should then benefit the entire sports ecosystem, with best practices that can be replicated on other events and structurally integrated by federations, leagues and clubs.

CASE STUDY LONDON 2012:

• At the Athens 2004 and Beijing 2008 Games, many seats appeared empty. The London 2012 organizing committee had a ruthless attitude to sublimate the event, make sessions look full and vibrant. They wanted fans to feel that this was a unique event and a memorable experience that should not have been missed.

• London 2012 gave the UK confidence in its capacity to host major sporting events. It positioned the United Kingdom as a trusted pair of hands in the eyes of the world’s sports governing bodies. Following the success of the London Games, the UK emerged as a new leader in the global sports economy.

The number of fans who consume sport and attend sporting events has increased dramatically in the UK thanks to the Games (+16 million spectators per year between 2012 and 2022 excluding one-off events).

“The Olympic Games are the equivalent of 50 world championships organized at the same time.”

IN THIS SECTION:

• The ‘Golden Decade’ concept emerged in the UK to define the development of British sport between 2012-2022, propelled by the organization of the London 2012 Olympic and Paralympic Games.

56%

of sports fans wishing to attend the Paris 2024 Olympic and Paralympic Games,

(THOMAS COEX/AFP/GettyImages)

(THOMAS COEX/AFP/GettyImages)

• Capitalizing on the Games and creating a legacy: excitement and mobilization of fans, media and sponsors; emergence of new talent, new processes and new practices; setting new standards in terms of sustainability, accessibility and inclusion

• Case study London 2012: impact and heritage

• Case study National Handball League: Leveraging the Paris 2024 Games

• Testimonials: Marie Barsacq (Executive Director Impact and Legacy, Paris 2024); Céline Prevost (Marketing and Sales Director, FIS Alpine Skiing World Championships Courchevel Méribel 2023); Jean-Baptise Alliot (Executive Director Vitality Hub Sport & Health & Food, Paris&Co); Pierre-Jean Golven (Communication and Marketing Director, Ligue Nationale de Handball)

The ‘Golden Decade of Sports’ reflects the structural, cultural and commercial transformation of the sports industry, boosted by the impact of the Paris 2024 Olympic and Paralympic Games.

PARIS 2024

“Legacy is key for any Games, and we know that with the Paralympics the impact of those two weeks of sport last for generations afterwards.”

ANDREW PARSONS

President International Paralympic Commitee

will see live sports for the first time.

DIGITALIZATION AND GROWTH: DIRECT-TO-CONSUMER STRATEGY, FAN ENGAGEMENT AND MONETIZATION

While linear TV is still the preferred medium for sports consumption, our survey shows that French fans consume more and more sports via digital platforms. Indeed, 27% of sports fans now consume sports on streaming platforms.19% of French sports fans watch sports on social media.

This evolution offers new opportunities and perspectives for the sports industry, both in terms of fan engagement and the marketing of sports rights and assets to broadcasters and sponsors. But it also reflects a real need to adapt and implement new approaches.

The digital transformation that the industry (and wider society) is going through should indeed favor and accelerate the development of a “direct to consumer” approach from all rights holders.

HOW FANS WATCH SPORT

“

The idea is to offer a complementary offer (OTT Platform) to those of traditional broadcasters when the product is not necessarily well exposed, for example 2 matches per day of Ligue 1 only. The offer may include live (in particular Ligue 2), near live, magazines or inside content, and a different approach will be adopted in each market so that French football fans around the world can have access to content adapted, original and exclusive.”

For French sports fans, linear television is still the preferred and privileged means to consume sport. However, our study suggests that today 27% of sports fans watch sports on streaming platforms, a number which increases to 39% for fans under the age of 25. The study also suggests, considerable part of sports fans, consume sports via social media platforms and highlight shows, underlining the need for rights holders to diversify the type of content they produce to reach fans.

AVERAGE CUSTOMER BUDGET PER TYPE OF PLATFORM

DAVID LABRUNE International Media Rights DirectorLigue de Football Professionnel

AVERAGE TIME SPENT CONSUMING SPORT BY CHANNEL

2.2h

The French sports fan’s average monthly budget for paid subscriptions for sports content is €34 for linear TV channels, and €27 for streaming platforms. However, that budget for streaming platforms increases to €31 for the sports fans under the age of 25.

HOW FANS FOLLOW SPORTING NEWS

Linear television is the preferred means to consume sport, but the study suggests fans spend a similar amount of time consuming sports on social platforms and streaming platforms. Given the diversity and multitude of content offered on digital platforms, sport organizations must look to create content frequently – content that is the most engaging, and most adapted to their fans on the specific platform.

“

The OTT platform of the LNH, HandballTV, gives the clubs new development perspectives. It allows clubs to develop their own databases and to be more efficient in their communication efforts. It allows them to better develop their customer knowledge and relationship and to develop experiences adapted to fan’s expectations.”

PIERRE-JEAN GOLVEN

Director of Communication and MarketingLigue Nationale de Handball

IN THIS SECTION:

• The ‘fan funnel’: identify the size of a rights holder’s audience, and develop an adapted audience growth strategy

• The creation of Direct-to-Consumer platforms to monetize the fan base

• Marketing of OTT subscriptions/streaming platforms via these D2C platforms

• Case study: Courtside 1891, FIBA’s new D2C platform

• Case study: HandballTV, the growth engine of French Handball

57% of sports fans claim to follow sports-related news via TV shows. For French sports fans under the age of 25 however, social media is the number one platform for sports-news consumption.

• Testimonials: David Labrune (Director of International Media Rights, Ligue de Football Professionnel); Pierre-Jean Golven (Director of Communication and Marketing, Ligue Nationale de Handball)

DEVELOPMENT OF WOMEN’S SPORT: THE SEGMENT OF THE FRENCH SPORTS ECONOMY WITH THE GREATEST GROWTH POTENTIAL

Women’s sports represent the share of the French sports market with the greatest potential for growth in percentage terms over the next few years.

FANS OF WOMEN’S SPORTS

More than half of sports fans (57%) are fans of women’s sports. Although this represents a significant proportion of the adult population in France (12.8 million, 23% of the adult population), this percentage remains relatively low compared to countries where the growth of women’s sport is more advanced. In the UK, the proportion of sports fans who are also female sports fans is 67% according to a study by Two Circles.

“ For the Games, parity in the participation of athletes is only a first step. Now, it is necessary to seek to adapt competitions, with more events of female sport in prime time. For Paris 2024, this means reversing the times of the women’s and men’s soccer final, or the start of the marathon, so that women finish just before the closing of the Games. These are actions being developed between Paris 2024, the broadcaster and the international federations.”

MARIE BARSACQ Executive Director, Impact and Legacy Paris 2024

HOW SPORTS FANS BECAME FANS OF WOMEN’S SPORTS

The coming decade represents a unique opportunity for the development of women’s sports in France.

With its commercial potential still largely untapped, women’s sport represents the share of the French sports market with the greatest potential for growth in percentage terms over the next few years.

Indeed, Two Circles forecasts a considerable growth for women’s sports in France over the next 10 years, with revenues increasing by an average of 8% per year (excluding the year Paris 2024) to reach €842 million in 2032, compared to €407 million estimated in 2022

The number of female sports fans has now reached more than 12.8 million, or slightly more than one in two. However, while the number of male sports fans is only about 30% higher than the number of female sports fans, the amount of revenue generated by top-level male sports is almost ten times higher than that of female sports.

The next few years will see a narrowing of the revenue gap between women’s and men’s high performance sport as organisations spend more time and resources marketing what makes women’s sport unique, whether to fans, media or sponsors.

REVENUE OF WOMEN’S SPORTS IN FRANCE

It should reach

Two Circles expects revenue from women’s sport to increase by 107% over the next ten years (compared to 2% between 2016 and 2021), driven by rights holders’ investment in development, as well as new initiatives that convert interest into business opportunities.

IN THIS SECTION:

Television coverage and the Olympic and Paralympic Games are the main reasons people say they became fans of women’s sports. The Games, which are broadcast free to air, feature female athletes to a wide audience every two years considerably impact growing the profile of athletes and sports.

When it comes to attending sporting events, almost half of fans of women’s sports say they go with their families. Careful consideration and a more targeted approach is therefore required to develop a tailored eventday experience that is both rewarding and specific to the sport in question.

• Strategic recommendations for the development of women’s sports in France: General, Sponsorship, Media coverage, Eventday

• Case study Zwift - title partner of the Tour de France Women

• Case study: The implementation of a “Big Games” strategy that will lead to a significant increase in the average attendance of the Women’s Super League and the FrauenBundesliga during the first half of the 2022/23 season.

• Testimonials: Marie Barsacq (Executive Director Impact and Legacy, Paris 2024); François Vasseur (Marketing & Commercial Director, Fédération Française de Football); Kate Verroneau (Director of Women’s Strategy, Zwift)

*according to Two Circles and Sporsora’s 2022 study on the development of women’s sports in France

EVENT DAY STRATEGY: OFFERING AN EXPERIENCE ADAPTED TO ALL AUDIENCES, TO REACH FULL STADIUM CAPACITY

A full stadium is the basis of the virtuous circle for the commercial growth of rights holders. Our research shows that the main motivation for attending a sporting event is “the atmosphere”. It is also the element that has the greatest impact on media and sponsor interest, so every rights holder must develop the eventday experience that will allow them to sell out every sports performance they organize.

Today, we can see an ever increasing demand for major events and ‘premium’ events (France 2023, Paris 2024, Roland Garros, Paris Saint–Germain matches, major derbies or other matches with local resonance or between league leaders), events for which some prices can be relatively high but which do not lack demand. On the other hand, it is still difficult for many other French rights holders to sell out.

The importance of developing a database: the larger and more detailed the rights holders’ databases, the more they are able to build relationships and know their fans better. They can begin to tailor their marketing, making it more efficient and effective, offering their fans a better experience while filling their stadiums in the process.

EVOLUTION OF SPONSORSHIP/MEDIA/EVENT DAY REVENUES

Sponsorship Media Event Day

AVERAGE BUDGET TO ATTEND LIVE SPORTS EVENTS

In 2022, eventday revenues represented 29% of overall sports revenues in France. According to Two Circles, eventday revenue is expected to exceed media rights revenue by 2032, boosted in part by a projected increase in interest of sports by the French population following the Paris 2024 Games.

“Our job is to encourage encounters and create experiences. Our job is to give people pleasure. So what matters is one to one marketing, and giving fans what they need, what they want, whether it’s on a digital platform or in real life.”

JULIEN RONGIER

Group Revenue Director, Paris Entertainment Company (Accor

LAETITIA IRIART

and

•

• Knowing the specificities of your audience, and evolving your eventday offer

• Case Study Discovery Sports Events: Evolving the eventday proposition for fans and sponsors

• Case Study Accor Arena: The experience beyond the event

• Testimonials: Floxel Riblier (Sales & Sponsorship Hospitality Events Director, Discovery Sports Events); Julien Rongier & Laetitia Iriart (Group Revenue Director, Paris Entertainment Company (Accor Arena))

Average budget to attend a major event (Olympic Games, World Championships, regular international championships)

€43

€70 for the domestic leagues

French sports fans rated their main motivations to attend an event with 5 being top motivation.

Arena)

Brand, Communications

Marketing Director, Paris Entertainment Company (Accor Arena)

INTERNATIONAL DEVELOPMENT OF THE BIGGEST FRENCH BRANDS: MAXIMISING MEDIA RIGHTS AND SPONSORSHIP FOR THE LEADERS OF THE FRENCH SPORTS ECONOMY

Our analysis of the commercial growth of French sport over the next few years shows that it will be driven largely by market-leading French sports organizations such as Ligue 1 Uber Eats, the TOP 14, Roland Garros (FFT), the Tour de France (A.S.O.) or even the soccer federation with stars that make the national teams shine internationally.

These 5 French sports organizations represent €3.1 billion or 78% of the total value of the French professional sports economy in 2022 and will grow to €6.1 billion or 78% of the total value of the French professional sports economy in 2032.

The French market leaders represent a still growing potential that is currently under-exploited from an international marketing point of view.

Two Circles predicts that the biggest driver and growth potential for the French market leaders will come from their ability to expand internationally and generate more revenues from abroad. These new revenues will come from the sale of international broadcasting rights, as well as from the increase in sales of sponsorship contracts and the marketing of digital rights linked to the increase of their visibility abroad.

ROLAND GARROS: THE GLOBAL FANBASE AND KEY MARKETS FOR GRAND SLAM TOURNAMENTS

REVENUES OF TOP 5 VS. OTHER ORGANIZATIONS

Roland Garros is a shining example of success in France. However, the tournament is behind the other three Grand Slam tournaments in terms of overall fan base. If Roland Garros manages to expand its fan base internationally, particularly in the leading clay court countries across Southern Europe and South America, additional commercial opportunities will emerge for the tournament, from global media rights to sponsorship.

The top 5 French sports organizations in terms of revenue (Ligue 1 Uber Eats, the French Football Federation, the TOP 14, the French Tennis Federation (Roland Garros), Amaury Sport Organization (Tour de France) represent €3.1 billion in overall revenue i.e. 78% of the total value of the French professional sports economy in 2022. These revenues will increase to reach €6.1 billion in 2032, i.e. 78% of the total value of the French professional sport economy.

TOP 14 : DOMESTIC MEDIA REVENUES OF TOP INTERNATIONAL RUGBY UNION LEAGUES

The TOP 14 is in a good financial situation with its agreement of €114m per year with Canal+ over the period 2023 to 2027. But as the leading rugby union club competition in the world - with many of the sport’s global stars within its ranks - the TOP 14 does not yet stand out in terms of international coverage, indicating opportunity to build on its status even further.

LFP : INTERNATIONAL MEDIA RIGHTS OF THE TOP 5 FOOTBALL LEAGUES

Currently valued at approximately €80 million, the revenues generated from international media rights sales by the Ligue 1 Uber Eats could reach €500 million annually from the 2030-2031 season if LFP Media’s growth forecasts materialize following the arrival of CVC into the league’s capital. This represents a significant growth opportunity for the French sports industry.

IN THIS SECTION:

• The five leading French rights holders represent 78% of the total revenue of the French professional sports industry

• International development will be a key aspect of their business growth in the coming years

• Focus: Roland Garros, TOP 14, Ligue 1 Uber Eats

• Case Study LFP: International Development Perspective

• Testimonials: Vincent-Baptiste Closon (Global Head of Partnerships, Events and Sponsorship, BNP Paribas); David Labrune (Director International Media Rights, Ligue de Football Professionnel)

ABOUT

Two Circles is a sports marketing business that grows revenue for the world’s leading sports rights-holders, using data to create strategies, deliver proprietary technology solutions, package and sell sponsorships, and design and market compelling, tailored content. We understand the sports market and its consumers and have unrivalled knowledge of the trends shaping and reshaping the sports industry.

Our client base includes over 150 of the world’s largest sporting entities including the NFL, Premier League, UEFA, Wimbledon and F1. In France, we work with the likes of LFP, Rugby World Cup France 2023, and clubs from the Ligue 1 Uber Eats.

As a global sports business, we are present in five markets around the world – the United Kingdom (London) since 2011, Switzerland (Bern) since 2015, the United States (Los Angeles and New York) since 2017, France (Paris) since 2020 and Australia (Melbourne) since 2023.

For more information visit www.twocircles.com

GSWParis is a platform for global sports leaders and organizations, promoting innovative and sustainable sport in response to the expectations of new generations.

Created in 2020 under the High Patronage of Mr. Emmanuel Macron, President of the French Republic, and under the patronage of UNESCO, the Global Sports Week annual forum brings together political and societal leaders with change agents from sport, business, culture and media. Its programme aims to inspire new ways of thinking, providing the tools and ideas to initiate change and positive transformation in the global sport ecosystem.

The 2020 and 2022 editions each brought together more than 2,000 participants from more than 70 countries at the Louvre and the Accor Arena, while 5,000 online visitors attended the second edition at the Eiffel Tower in February 2021. In 2023, GSWParis teamed up with Viva Technology under a new format, Future of Sport, to gather for the first time the international sport ecosystem with leaders in innovation and technology.

More information is available at: www.gsw.world | #GSWParis @globalsportsweek