Interview with Chucri Rizk, Founder and CEO of ESPORSA Group
Could you give us an overview of ESPORSA?
We are now in the process of launching ESPORSA Group. The ESPORSA Group will have three pillars. The first pillar is a corporate agency which will help the market in terms of sponsorship, consultancy, sports rights holders, media platforms, and also investments. The second pillar is e-commerce with shops where people can buy their favorite jersey from clubs or national teams and at the same time, they can read sports news. They can also engage on social media with their favorite club or national team. The third pillar is sports tech. Sports tech has really come up in the last five to six years, but it started to be more effective in the last two years when Corona hit. People then changed their tactics from traditional sports to technical and other innovative ways like cloud productions, live streaming, mobiles. Also, TV broadcast has been seeing a lot of technology now, such as having a live link broadcast to different countries and at the same time within the virtual overlayer advertising. We are here to combine all these services under one roof called ESPORSA Group.
How has the sector changed over time and how are you active within it? What are the recent trends?
We are looking to be the hub of sports tech in the coming 5 years in the region. We are looking to be reliable and strategically relevant sources for sports holders, athletics, and players in the sectors.
I am the first person to create and develop a sports management business in the UAE since 2003. In 2008, we were in a very competitive market. People did not understand what sports management was. I intended to introduce to the market the LED system. Now, it is very famous in all the matches to put in LED for advertising. Before, it was static boards. We invented this in 2010. From that time onwards, we have always worked for innovative ideas, technology that comes to the market to make people more attracted to sports events. One of these is the fan engagement, which we are still working on today. This is a big challenge for a daily match. Now, you can stream your matches on your mobile and at the same time, you have to give the fans an extra reason to go to the stadium. One of the big assets is that the stadium itself should have WiFi. Most of the stadiums now are not WiFi enabled. That is why some people prefer to stay home and to watch it on streaming or to watch it on TV instead of going to the stadium. We do a bit of everything to make sure that people come to us in terms of the services. We represent different services from abroad – from the UK, from USA, from Italy, from Spain – and we provide the latest technology. Recently, it was virtual advertising during the match. You do not have to be at the match. You can be at home and link your technology to your upper feed link from the TV broadcast and you can show and overlay advertising on the field. Previously, we used to put the physical 3D carpets next to the goal to see the advertising. On the LED system now, we are close to closing a project with one of the associations and they will broadcast matches to different countries with different advertising.
What are your competitive advantages?
There are competitors in the market, but our advantage is that we have been here for almost 30 years. Our advantage is also that we will deliver. We have the trust of our quality. We are a niche, but we can deliver to an international standard. We worked with different countries like Brazil, with the World Cup in the UAE, and we had not only football but we also deal with golf, tennis, Formula E, and Formula 1. What makes us different is that we turn vision into value. For any vision or any clients that come to us for any ideas, we turn it into a value. The clients will be more than happy to see that not only in the short term. You need to have the proper team and the proper foundations to run for the long term.
What products and services do you offer?
Our first products are for the sports holders commercially. This is where we come in to own these rights and to sell on their behalf or we come in to have a partnership or alliances. Mainly, we focus here on a commercial perspective. For example, with virtual advertising, now, the league in the UAE or any in the region have a sort of commercial which is always required. We come in and we suggest a partnership that we will provide the services and we own the rights and we sell on behalf of the league the advertising rights. Of course, the revenue will be a different concept, either we share or we take a percentage. The second part is that we also come onboard to the transitions of their social media to help them with how to engage with their fans on a daily basis and on event basis as well. The fans always need something new from their clubs to have engagement, like a mobile app. We are in the process of developing a new sports fans app that will activate all kinds of sports in the region. This kind of project is effective for not only the fans but also for any ordinary sports lover who opens his mobile maybe 300 times per day. We also approach sports holders or teams and football clubs for sponsorship. We own the commercial rights on their behalf and we can sell sponsorship in terms of the advertising, in terms of title sponsorship, in terms of the jerseys, in terms of any kind of supplier to them, like water, beverages, etc. Some of the clients may ask us to do some strategy for them for the coming 5 or 10 years on how the commercial perspective has to increase and how we can help with that. Sports tech has been a hit for the last 5 years. Mainly now, it has been for the data and for the fan engagement. So, you can raise revenue out of this with sports tech.
What is a success story that you are proud of?
I am very proud that I am the first to get the association in the region in 2005. I was the first one who signed a deal for them for 5 years exceeding 180 million Dirhams sponsorship. On top of that, the company was taking the rights to activate the sponsorship from the client perspective and from the association league perspective. I am so proud of this because at that time, there was a very big challenge. People asked us what sports management is. What is sports marketing? What do we do? How do we create it? Where do we get the money? What do we give? This was my biggest deal at the time and so many sponsorships for jerseys have been done through us.
What exactly is sports management and sports consulting?
Sports investment is really opening an international network of business, politics, and international exposure to the country itself. That is also where the branding and tourists can be simplified on a business. It also attracts a lot of attention to the major events. Sports marketing is a business. In 2003, I said in an interview with one of the local newspapers in English that it is not a sport anymore, it is a business. I work in this sector because I love it and I like sports. But at the same time, I educated myself and I reached a certain point that this is a business. Amateur clubs, associations, and federations have now noticed that they can generate money out of their rights and this is where we will step in to help them to have more leverage of marketing and commercial at the same time.
How has the sector evolved and grown since you began?
I always look for something new. I always look for something that can make things easier. Technology in Europe, USA and Germany is really passing us very quickly. To bring them to the market here is not easy. It is always made difficult because the market has to be educated. The market is about 10 to 11 years behind. 10 years ago, when we offered that technology, everybody was looking at us and saying this is very difficult and we will not be able to execute it and educate people and now it is coming onto the market. Sports in the region are becoming big. A recent study of almost 17 countries including Turkey estimates the sports industry is worth $18.5 billion. In our region, Qatar is hosting the World Cup. You can see how much this will help the market economically from retailers to airlines, banks, construction, etc. The Saudi market is open for sports as well with the Vision 2030. Recently, they hosted the Formula 1 in Saudi Arabia, Bahrain, and UAE. These countries are working in sports to really appraise their brand internationally. That is why sports management and sports marketing are developing this business, and it is a business. For the last 10 years, most of the universities internationally have added to their curriculum a sports management degree. When I was educated in 2002, there was nothing like this. So, we will see sports management, sports marketing, sports law, and sports tech booming and then in the near future, the streaming of events through the TV rights and satellites will be a huge business.
What is your medium-term plan, three to five years? What do you want to achieve?
Our new vision and strategy are based on innovation in the field. We are looking to be the hub of sports tech in the coming 5 years in the region. We are looking to be reliable and strategically relevant sources for sports holders, athletics, and players in the sectors. Within the next 5 years, data will be the highest technology. The data function is something that you will aim to have within your commercial business because if you do not have numbers, you will not have commercial. That is where we will be helping with the sports rights in terms of moderating in the market. Key transitions now are the data, the fan engagement, data analytics, the media and broadcasting, performance enhancements, and the stadium of the future. Now, if your stadium is not equipped with high technology, you will not be able to run your business. There are also new sponsorship assets and e-sports. Everything is related to sports tech.
What is your inspiration? What drives you to do what you do?
Honestly, it is the love of the game. I personally love sports. This is where you can see yourself and you can change your lifestyle as well. You can be an entrepreneur in the sports industry as a long terms business. I have been here for the last 32 years. I have been challenged many times. Our job is to stay up to date and work as much as we can so we can always stay involved in the trends in the upcoming years and hopefully decades. Our job is to turn your vision into a great value. This is what really keeps me going on a daily basis.
For more information, please visit: https://esporsa.ae.
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