:00:00. > :00:00.million. It's the UK's fourth biggest ever lottery win. Now on BBC
:00:00. > :00:10.News, it's Talking Business with Linda Yueh.
:00:11. > :00:18.$100 million is no small sum. That was needed just to compete in the
:00:19. > :00:22.America's Cup. Sport is an extensive business that requires sponsorship
:00:23. > :00:25.and fundraising. We find out how professional sports men do it. In
:00:26. > :01:00.Singapore, we are Talking Business. Ben Ainslie is the most successful
:01:01. > :01:05.sale in Olympic history, winning four gold medals. He is here to
:01:06. > :01:11.compete in the extreme sailing series and he is the first Briton to
:01:12. > :01:14.win the America's Cup, and now he is hoping to raise $100 million to fund
:01:15. > :01:21.his own team to compete in the America's Cup. I caught up with him
:01:22. > :01:28.to find out how it was going. The America's Cup has traditionally
:01:29. > :01:35.been for a very wealthy individuals, billionaires, but in recent history
:01:36. > :01:40.we have seen a shift more towards the commercial model with teams like
:01:41. > :01:46.Emirates Team New Zealand being a commercially run team, and in
:01:47. > :01:52.Britain we have had a number of challenges but have never actually
:01:53. > :01:56.won the America's Cup. The American team won the trophy, took it away
:01:57. > :02:01.back to America and we have never seen since, and we formed less team
:02:02. > :02:06.a couple of years ago to build it up as a commercial team to deliver a
:02:07. > :02:10.realistic challenge and hopefully bring the America's Cup back to
:02:11. > :02:17.where it started. It has an awful lot of money to try to raise. Where
:02:18. > :02:22.do you go for that kind of money? We have a commercial model but we also
:02:23. > :02:28.have included and that private investors. One trunk of funding will
:02:29. > :02:35.come from investors in the team and the rest through a number of
:02:36. > :02:40.sponsors, partnerships we have at the moment that we hope to take for
:02:41. > :02:45.word. It is a lot of money to raise and likely a lot of professional
:02:46. > :02:50.sports, at the highest level you have to have this funding to have
:02:51. > :02:55.the right equipment and personnel. How far along are you in the
:02:56. > :02:59.fundraising? Since the last America's Cup we have focused on
:03:00. > :03:04.private investors for which we have a huge amount of support back in the
:03:05. > :03:11.UK. We have a great group of national investors coming in trying
:03:12. > :03:14.to underline part of the budget, and around about 70% of that target for
:03:15. > :03:21.our private investors is underwritten, so we still have
:03:22. > :03:27.somewhere to call but we are still confident that we will have that
:03:28. > :03:30.private funding we need. The next target is the commercial sponsor
:03:31. > :03:35.ship which kicks in and the next couple of months as we get the rules
:03:36. > :03:40.for the next America's Cup and the dates and the type of boat, and we
:03:41. > :03:48.can deliver that took our commercial partners. What is the money actually
:03:49. > :03:54.used for because you said sport is expensive. It is really sailing's
:03:55. > :04:00.version of Formula one and while effort has gone into cutting cost,
:04:01. > :04:05.it is still very technical so you need a design team and you need to
:04:06. > :04:13.design and develop smaller scale versions of the boat you will
:04:14. > :04:18.eventually race. That takes place over a two or three-year testing
:04:19. > :04:24.cycle. You end up with around 80 people split between sailors,
:04:25. > :04:27.designers, managers, and really putting that together which is where
:04:28. > :04:38.you need the funding to have the talent in terms of design. Larry
:04:39. > :04:47.Ellison that backs the American team, do you need a Larry Ellison
:04:48. > :04:55.type that candlelight 300 million? -- can dole out. That is one way of
:04:56. > :05:02.doing it. There are couple of other billionaires who have been involved
:05:03. > :05:09.recently and will be again. Patrizio Bertelli also has a team. In a way,
:05:10. > :05:15.it is difficult taking on this extremely wealthy individuals to go
:05:16. > :05:20.out and find the money commercially with the help of some private
:05:21. > :05:24.investors. In a way, it makes you more focused to have an unlimited
:05:25. > :05:34.budget and you can waste a lot of time and money on areas which are
:05:35. > :05:37.not that important. You are obviously very familiar with
:05:38. > :05:41.the whole business of sport and sponsorship but this will be new to
:05:42. > :05:47.a lot of people. How do sponsorships work? You have been sponsored by a
:05:48. > :05:52.company for many years when you are competing at the Olympics, so maybe
:05:53. > :05:59.just a little about how that process works and how much money is needed
:06:00. > :06:03.to compete in a sport like sailing. For me it is about building up a
:06:04. > :06:06.relationship which is why we wanted to build this team commercially, so
:06:07. > :06:13.rather than one individual we have a long-term plan. We also want to
:06:14. > :06:19.compete farther down the line so it is building those partnerships. You
:06:20. > :06:25.obviously have to give good return for that to continue so we work
:06:26. > :06:30.incredibly hard to get exposure and return to clients and sailing is a
:06:31. > :06:36.great sport for that because it is really diverse with lots of
:06:37. > :06:41.different types of ceiling. The America's Cup is the pinnacle and it
:06:42. > :06:45.is expensive but ceiling at the grassroots level is very inexpensive
:06:46. > :06:50.and it is often a misconception that it is an elitist sport. I guess for
:06:51. > :06:54.a lot of people they will look at the boat and say you could not do it
:06:55. > :07:03.without sponsorship, so how do younger athletes get started? B-side
:07:04. > :07:07.is a love of the sport of course! Any sport at the highest level, you
:07:08. > :07:14.have to have professional athletes and you have to train. If you're
:07:15. > :07:19.trying to win the Tour de France, that is an expensive project,
:07:20. > :07:28.cycling at a grassroots level you get on your bike and off you go.
:07:29. > :07:31.Certainly for kids, here in Singapore they have the best young
:07:32. > :07:39.sailors in the world, they are the dominant team. We are seeing that
:07:40. > :07:45.sailing globally is really taking off at a grassroots level. You
:07:46. > :07:51.started young yourself. What has been the secret to your continued
:07:52. > :07:56.success. I have been incredibly lucky to have a huge amount of
:07:57. > :08:02.support and I started off with my parents and then through the years
:08:03. > :08:06.with different coaches and mentors. At the end of the day it comes down
:08:07. > :08:11.to hard work and applying yourself because in any walk of life there
:08:12. > :08:14.are very talented whatever you do, and the difference is how much you
:08:15. > :08:20.are willing to put into that to reach that goal. That is the
:08:21. > :08:32.difference between being successful and not.
:08:33. > :08:37.You are often viewed as being a very good tactician and I think you have
:08:38. > :08:44.displayed it through different types of racing. What is your secret? A a
:08:45. > :08:48.lot of that comes down to experience and people often talk about ceiling
:08:49. > :08:55.as a very physical sport but it is a little like playing chess. It comes
:08:56. > :09:01.down to experience and seeing the situation and replaying them
:09:02. > :09:05.mentally. I have been through this situation before and this is the
:09:06. > :09:09.next move, so it is very strategic and tactical, and the more you go
:09:10. > :09:14.through the situations the better you are to try to make the right
:09:15. > :09:19.decision. Tell me a little bit about what you are doing in Singapore.
:09:20. > :09:27.Extreme sailing, I don't think a lot of people will have heard about it,
:09:28. > :09:29.so what is it? The Olympics and America's Cup are probably the
:09:30. > :09:37.highest profile, but the extreme sailing series is quite new, four or
:09:38. > :09:41.five seasons, and it is exciting because we have stadium racing so we
:09:42. > :09:54.come to a venue like we have in Singapore which is very tight, and
:09:55. > :10:01.you would not normally be to race. -- be asked to race. It makes for a
:10:02. > :10:07.very exciting racing for the spectators. The latter is part of
:10:08. > :10:12.the challenge and you go out and do battle and we have already had quite
:10:13. > :10:16.a few collisions, but it makes very exciting racing and we have a global
:10:17. > :10:23.circuit which is great for our commercial partners. You described
:10:24. > :10:31.to me earlier how when you compete in the Olympics which stages
:10:32. > :10:37.matter. Just explain a little more about that, because I found it quite
:10:38. > :10:43.fascinating. That comes down to the strategy of the campaign and in the
:10:44. > :10:49.America's Cup they are tend to be four-year cycles and then the
:10:50. > :10:52.Olympic sailing, only one competitor permeation is able to compete, so if
:10:53. > :10:58.you have a country like Great Britain which has a lot of talented
:10:59. > :11:02.sailors, it is tough to qualify to compete in the Olympic Games so you
:11:03. > :11:08.have to look at it strategically to say the first goal is to qualify.
:11:09. > :11:12.Then you have to target the Olympics themselves is all over that four
:11:13. > :11:18.hears that is really about working up to different targets and making
:11:19. > :11:23.sure that you may little on day and performed when it matters. Finally,
:11:24. > :11:33.what lies ahead in future? Politics? Politics! I have interests
:11:34. > :11:44.outside of ceiling and I am interested in politics. -- outside
:11:45. > :11:50.of sailing. I find political shows fascinating but it is hard to see
:11:51. > :11:54.anything beyond the next America's Cup. Such a challenge, pulling
:11:55. > :11:58.together the funding and getting the right management team in place.
:11:59. > :12:04.Focus on that form now and see what happens afterwards.
:12:05. > :12:11.That was Ben Ainslie talking about his efforts to raise $100 million.
:12:12. > :12:18.It is not just ceiling. Sport is big business and it is estimated that
:12:19. > :12:23.the global sport revenue will set $145 billion next year that a growth
:12:24. > :12:29.rate of nearly 4%. Ticket sales are still the biggest source of revenue,
:12:30. > :12:32.however TV advertising and the return of financial services as
:12:33. > :12:39.sponsorship is driving the sporting industry to new heights. Joining me
:12:40. > :12:53.to discuss the business of sport is Marcus Luer, founder of total sports
:12:54. > :13:01.Asia, Royston Wee, Singapore's top fighter who has had two days funding
:13:02. > :13:09.to support himself, Ramu Sasikumar, a former national football player.
:13:10. > :13:12.Welcome to all of you. Help us understand, this global sporting
:13:13. > :13:19.business, what are the sources of revenue? There are basically three
:13:20. > :13:31.main areas, with the big ones being ticket receipts, television rights,
:13:32. > :13:40.which means what you watch on TV. And then of course around the world,
:13:41. > :13:43.sponsorship. Those are the three big buckets. Depending on each sport
:13:44. > :13:50.that can vary but in general you would have one third of each.
:13:51. > :13:57.What is the breakdown in terms of revenue for a football club? There
:13:58. > :14:03.are various revenue streams. A lot of the clubs depend on the ticket
:14:04. > :14:10.gates, match day revenues on a that is one. It varies in the different
:14:11. > :14:15.regions. The Premier League club, the revenue is very different.
:14:16. > :14:19.Generally, the breakdown is with ticket revenues, what you get from a
:14:20. > :14:27.centralised pool of television rights, your club sponsorship, all
:14:28. > :14:31.the various activities of the club does. It is a mix of quite a few
:14:32. > :14:37.things, but the main revenue stream would be the television rights, of
:14:38. > :14:41.course. What is interesting there is that the big clubs have revenue
:14:42. > :14:49.streams that will not just come from the local market. It doesn't just
:14:50. > :14:55.mean an international sponsorship comes with it. The bigger teams in
:14:56. > :14:59.the world gets revenue in areas where they never appear, and that is
:15:00. > :15:03.the ultimate trick, how much can you take advantage of the fans you have
:15:04. > :15:08.around the world? Manchester United claim that they have 300 million
:15:09. > :15:17.fans, and that they could get $1 from each van, that would be 300
:15:18. > :15:19.million pounds -- $300 million, and that is the ultimate trick, and that
:15:20. > :15:26.is what everybody is trying to figure out. No-one has worked it out
:15:27. > :15:34.yet, but that is the big next Bush. -- next push. How do you feel about
:15:35. > :15:37.the financial pressures in your sport? Are there particular ones
:15:38. > :15:41.that you are targeting, for instance, getting more fans to come
:15:42. > :15:48.or to do more merchandising of your sport? For an athlete, in order for
:15:49. > :15:54.us to get sponsorships, we have to be recognised, and we have to train
:15:55. > :15:59.hard and perform, because if an athlete does not perform, no-one
:16:00. > :16:07.wants to sponsor you. Firstly, being in an organisation helps all stop
:16:08. > :16:12.big promotions and everything. -- helps. Big promotions and everything
:16:13. > :16:16.will stop winning. That attract sponsorships. They will want the
:16:17. > :16:22.logo on their short and it will be more marketable. As an athlete you
:16:23. > :16:26.have to definitely train hard and make sure you show results. Is that
:16:27. > :16:30.the main thing that a sponsor would look for, a winning athlete? What
:16:31. > :16:38.are the traits of an athlete that would attract a sponsor? Winning is
:16:39. > :16:42.the obvious. You are world-class, you are a gold medal winner, a world
:16:43. > :16:47.champion or top of the league that you can be in your sport, that is
:16:48. > :16:50.the obvious starting point. Not everyone can be there. There are
:16:51. > :16:55.many athletes out there who are not number one in the world that attract
:16:56. > :16:59.a large audience or large revenue streams because they are different.
:17:00. > :17:03.I think an athlete needs to come up with his own story. What is
:17:04. > :17:08.different about him? How did he make it to where he is now? What
:17:09. > :17:12.sacrifices did he have to make? That is what the public can relate to,
:17:13. > :17:18.and when the public relates to him, that is when the sponsors want to be
:17:19. > :17:23.there. Social media it's hugely -- social media is hugely important. I
:17:24. > :17:28.have 100,000 people following me, that is a ready-made market all of a
:17:29. > :17:32.sudden which ever existed in the past. In the past, you knew there
:17:33. > :17:39.were fans out there, but you can quantify it now and there is a value
:17:40. > :17:45.to it for a sponsor. Let me bring you in on this. In terms of seeking
:17:46. > :17:50.sponsorships or getting an athlete a sponsor, how much of it is based on
:17:51. > :17:54.returns, for instance, getting something back for what you have put
:17:55. > :18:01.in, how much of it is because on the I love the sport, he is the best in
:18:02. > :18:09.the league and I love his story? Everything is about return on the
:18:10. > :18:14.investment, even if it is a $10 deal or a $10 million deal. Athletes must
:18:15. > :18:19.take it upon themselves to give that value back to the sponsor, whoever
:18:20. > :18:24.it is. Social media is a thing that you can quantify now. In the past,
:18:25. > :18:27.there was not a playing field for a lot of athletes. Now, the athlete
:18:28. > :18:33.can directly interact with their fans, so that is the brand
:18:34. > :18:37.connection, and that is what sponsors are looking at. Can he
:18:38. > :18:44.recognise or represent my brand to these masses? It is hard to target
:18:45. > :18:48.audiences. If you are marketing I do look at the mix, and if you have got
:18:49. > :18:54.1 million people died you can reach to an athlete, that is a great
:18:55. > :18:59.platform. -- people that you can reach. He wants people to recognise
:19:00. > :19:03.your brand. The guy might not be a champion, he might be somebody who
:19:04. > :19:08.is aspiring, a young athletes that could be looking at an Olympic
:19:09. > :19:12.pathway, but if the brand wants to get behind him, they want to create
:19:13. > :19:17.heroes, they want to get behind certain athletes and create a hero.
:19:18. > :19:24.There could be brand out there saying, that is groovy, he is
:19:25. > :19:27.growing in his MMA career lets get behind him. Let's grow him and if he
:19:28. > :19:33.becomes a champion than we are the ones behind him and we make it
:19:34. > :19:36.possible. It really depends on which stage the sponsor is in. There could
:19:37. > :19:40.be a big sponsor who wants to come in, but there might be other brands
:19:41. > :19:44.that want to grow with the athlete. That is where we come in. We
:19:45. > :19:48.evaluate the sponsor and say these are the properties that you want to
:19:49. > :19:53.back or the athletes that you want to back. That is where we make our
:19:54. > :19:58.money, I suppose. No pressure on you, you have to represent a story,
:19:59. > :20:01.you have to win and represent your country. What do you have to do to
:20:02. > :20:10.attract these countries to say, yes, I am going to pop the sponsor's logo
:20:11. > :20:14.on your shirt? I never thought about the media. To me it was just plain
:20:15. > :20:21.and simple, train, wind and just have a good Tahrir, and Ashok are a
:20:22. > :20:26.good career, and when the media hit me, I was -- just have a good
:20:27. > :20:30.career, and when the media came to me, I was surprised. The importance
:20:31. > :20:38.of the media, how it shapes and athletes, these are the factors that
:20:39. > :20:42.attract sponsors. Does it change your performance, all of this
:20:43. > :20:47.pressure to get sponsors? Or would you just not focus on it and think,
:20:48. > :20:51.I just have to wait? That is the thing, you have to focus on that,
:20:52. > :21:00.otherwise, how much you have to raise to be an athlete? Mentally it
:21:01. > :21:06.is very challenging. I do not think of the outcome. When I prepare, I
:21:07. > :21:15.want to enjoy the process, and I focus more on the process than the
:21:16. > :21:19.outcome. Being an hour late -- being an athlete, it is very difficult, so
:21:20. > :21:26.just enjoy the process and let it go. How much do you need to raise to
:21:27. > :21:32.make it possible to be an athlete? There are a lot of things that have
:21:33. > :21:36.to be sacrificed, especially in MMA. It is a glorious sports and we make
:21:37. > :21:40.a lot of money, that is what people think, but that is not the case. We
:21:41. > :21:46.have to spend a few thousand dollars and fight cameras, travelling,
:21:47. > :21:51.training, so the amount of money that we make per fight, minus the
:21:52. > :21:57.costs come a week do not really make that much. -- costs, we do not
:21:58. > :22:04.really make that much. If we lose, we take less money. Sometimes we
:22:05. > :22:15.make a loss. It is not that easy, coming into being a fighter. Before
:22:16. > :22:18.we conclude, top tips. As he rightly pointed out, I think he has got to
:22:19. > :22:23.be media friendly. You have to look out for your image. We are the ones
:22:24. > :22:31.you're going to bring your money, so be open. -- we are the ones who are
:22:32. > :22:34.going to bring you money, so be open. Create something which is
:22:35. > :22:38.unique. Think about what makes you stand out, not just in the ring,
:22:39. > :22:43.because that is just about the performance in the ring itself, what
:22:44. > :22:46.a great example, I worked with a gentleman many years ago called
:22:47. > :22:54.Princess theme, who was one of the best fighters in the world. --
:22:55. > :22:58.Prince Zeena. Normally it is about the big guys, but he had created, he
:22:59. > :23:04.was not just a bad athletes, but he would come in on a flying carpet and
:23:05. > :23:09.have all sorts of ideas of how to protect himself and then he had a
:23:10. > :23:12.very unique style in the ring. He was one of the highest-paid athletes
:23:13. > :23:18.at the time because he was so unique. Figure out how you create
:23:19. > :23:23.something where people go, I remember, when I watch you, I
:23:24. > :23:27.remember you because of something. I am going to be watching out for
:23:28. > :23:40.whether you have a flying carpet! We better leave it there. The pressures
:23:41. > :23:44.can be considerable. Sponsorship deals are among the reasons that
:23:45. > :23:50.sport is such a big business globally. The key seems to be
:23:51. > :23:56.winning fans to the sport. That is all we have time for this week.
:23:57. > :24:11.Check me out on Twitter. Join me next week.
:24:12. > :24:18.That evening. There has been anti-of excitement today, but sporting
:24:19. > :24:23.activity and also weather-wise. -- there has been plenty of excitement.
:24:24. > :24:28.Dry weather is allowing these weather fronts to topple across the
:24:29. > :24:30.North and the isobars are squeezing, which means we have seen some
:24:31. > :24:31.showery