FUTURE WAT PROJECT

Presented to the Euromeetings Organisors Amsterdam, 17th October 2008 by IAAF & Mindspring AG

BACKGROUND

OUR BRIEF

Presidential mandate to review and improve WAT in line with the his Manifesto Embrace the global potential of athletics Create opportunity for more Athletes to participate professionally in athletics Appeal to the youth Deliver an economically sustainable project Investor guarantee All stakeholders to benefit

OUR CREDENTIALS

Senior leadership positions at both TEAM Marketing and Octagon Worldwide Prior Involvement with athletics
IAAF World Championships Mobil Grand Prix IAAF World Cup Athletics South Africa

Specific experience with investors in the creation of UEFA Champions League, IIHF Champions Hockey League

WINNING CONCEPTS

Strong involvement by Federation Win-win for all stakeholders Strong free to air broadcaster platform Centralised marketing programme for worldwide sponsors Strong brand identity and branding execution

WAT PROJECT

PROJECT WAT STATUS

Step 1 - Identified objectives: Step 2 - Developed new concept Step 3 - Conducted feasibility study Step 4 - In depth review of concept and feasibility study led by IAAF President Step 5 - Recommendation to IAAF Council

FEASIBILITY STUDY

12 Month process to date Stakeholders Meet organizers Agents/Athletes IAAF and Council Ambassadors

Sponsors Carlsberg MasterCard Nestl Nike Shell President, International Sponsors Council

Broadcasters European Broadcasters Union BBC (UK) BSkyB (UK) Setanta (UK & North America) ZDF (Germany) DSF (Germany) Sky Italia France Television Canal+ France TVE (Spain) Sogecable (Spain) Eurosport (pan-European) NBC Universal (USA) Fox (USA) TBS (Japan) Al Jazeera (Middle East) GTV (Africa)

CURRENT SITUATION

Strong consensus across the board that there is a need for change

CURRENT SITUATION

Olympics and World Championships are premier events

3 PILLARS OF ATHLETICS

WAT

Olympics

World Champs

WAT

Golden League
1,151,821,000 98,787,860

KEY PRINCIPLES

KEY PRINCIPLES

Do what is in the best interests of Athletics Reinforce IAAF leadership Elevate the status of the Golden League and athletics as a whole Extend reach beyond Europe Guarantee top athletes and enhance the earnings capability of more athletes Create more meaningful events - shift focus away from individual performances to great competition Bring new investment into the sport Create a strong global brand All stakeholders to benefit

WAT STRATEGY

REVISED WAT STRATEGY

Sales Revenue

Top Athletes

Build Brand

Improve WAT Format Investor Funded

STRATEGY

Sales Revenue

Top Athletes

Build Brand

Improve WAT Format Investor Funded

FORMAT

Key Changes: Simplified format Two-tier approach

GOLDEN LEAGUE SEASON SCHEDULE

Rationale for 12 events

Maintain strength of European events

Target key global markets

GOLDEN LEAGUE FORMAT

Two-hour programming block Consistent Golden League disciplines
o o

Programming Block 20:00-22:00

Local Interest Discipline 1

Local Interest Discipline 2

Local Interest Discipline 3 Local Interest Discipline 4 GL Discipline 1 GL Discipline 2 GL Discipline 3 GL Discipline 4 GL Discipline 5 GL Discipline 6 GL Discipline 7 GL Discipline 8 GL Discipline 9 GL Discipline 10

10 standard for entire series 4 events of local interest

Simple, meaningful points system based on order of finish

CHALLENGE LEAGUE OVERVIEW

12 meetings out of tender process Europe and outside Europe Open to all disciplines IAAF solidarity fund: considerably higher than current IAAF grant Consistent branding No grant of marketing rights to the IAAF Can be scheduled any day except on or around Golden League days

STRATEGY

Sales Revenue

Top Athletes

Build Brand

Improve WAT Format Investor Funded

KEY CHANGES

IAAF guarantees top athlete participation and finances incentive plan IAAF central athlete contracts
o o

Guaranteed contract for 20 to 30 top athletes 6-9 appearances per season

Standings Bonus for each discipline to replace current Jackpot

o

Benefits many athletes as opposed to just 1 or 2

Considerably more money for more athletes

NEW PARTNERSHIP

IAAF

Central $Contribution Central Promotion Athletes Deliver commercial rights

IAAF Contracts Ranking Participate Bonus in 6-9 events Sponsor appearances

Meet Organisers

Prize Money Appearance Fees Appearan ces

Athletes

STRATEGY

Sales Revenue

Top Athletes

Build Brand

Improve WAT Format Investor Funded

BRAND

Make Golden League instantly recognisable Consistent implementation across all events Much stronger vs. individual event brands Reviewed best practices from other sports and propose the best solution for Athletics

STRATEGY

Sales Revenue

Top Athletes

Build Brand

Improve WAT Format Investor Funded

MARKETING

Current decentralised marketing approach leaves money on the table Need to access all available budgets
o o o

Global / Regional National Local

Need to keep benefits of current sponsors

o o

Ticket promotions Hospitality

Combined centralised / local sales allows access to all levels

SPONSORSHIP CONCEPT
4 Golden League Partners (4 x $5m) 1 National Event Sponsor ($0.5-1m each) 1 Host City Partner

Series Partners Individual Event Partners

National Sponsors

National Suppliers

BROADCAST SALES

Centralised sales of all broadcast rights

o o o o o

Splitting TV rights leads to weaker product/loss of leverage Obligation to be host broadcaster

Priority to free-to-air coverage

in order to create broadest coverage to build sport and therefore build value of sponsorship Target gradual increase.starting with 2 or 3 meets on terrestrial in key markets o Additional coverage on thematic sports channels

Broad programming
o o o o

Live Delayed Highlights Magazine (centrally produced)

Broad distribution
o o o

TV Internet Wireless

FEASIBILITY STUDY

Feedback from EBU

o o o o

Key Partner of IAAF EBU strongly wants to keep its commitment to athletics Conducted complete review of proposed project EBU says this is going in the right direction and they want to partner the IAAF in this development

STRATEGY

Sales Revenue

Top Athletes

Build Brand

Improve WAT Format Investor Funded

INVESTOR FUNDING

This project will be funded by investors on a long term basis Allows for massive new financing of the sport Strong interest is being shown by potential investors

SUMMARY

SUMMARY

Revitalise athletics Strongly addresses key issues

o o o o o

Confusing format Meaningful competition Athlete participation Commercial appeal Financial viability

Feasibility study indicates concept is feasible Investor interest in the concept is strong

NEXT STEPS

TIMING

2007 2008 2009 2010 Implementation of Commercial & Event Plan Product Development

New IGL Season

9/07 1/08 1/09 1/10

Design - A Broadcaster Search Feasibility Study - B Sponsor Search Event Plan Implementation

Bidding Process - C
IAAF President Briefing Pre-testing with Champions IAAF Approval Signature of Agreements

Pre-Season Build-up Investor Closing - D

NEXT STEPS

Have now received IAAF Council In Principle approval to proceed Investor search now underway with a view to securing interested parties by next IAAF Council Meeting in November

THANK YOU