Now, this may seem counter-intuitive, starting a new business during the deepest social and economic dislocation (the Coronavirus Pandemic) since wartime might appear folly or high risk or just plain crazy. But, let’s have a look at the other side of that same coin, shall we?
Start-ups During a Recession
What do; Disney, Whatsapp, Airbnb, Microsoft and Spotify all have in common? What defines uber NYC real estate agent Ryan Serhant’s journey into selling property?
Every single one of them (and so many more) started up during a recession, when all mood music was terrible, when all start-ups weren’t cool and when all the commentators said ‘it’ll never work’. We can claim a bit of skin in this game too – Athletz was started this year, consciously.
Here’s the thing, most of these great brands chose their timing to get going, it wasn’t an accident that when everyone was looking down, they looked up.
Why Start-Ups Are Better Than Ever Right Now
More than most right now, sports organisations are experiencing lasting, painful & difficult changes. But folks, this is our moment to impact and effect the new order that isn’t yet known or formed. Talent is available, technology can reliably handle most of your needs, challenger banks can get you an account the same day, outsourcing can be done for almost everything & if you really do need premises – there’s plenty of office space going cheap right now.
Customers are ready to hear the beat of a different drum & governments will need to be supportive to new entrepreneurs as they wrestle with the global unemployment numbers. Existentially, so many of us, by choice, or through necessity re-evaluated our career choices and lifestyles since the world locked down because of the COVID-19 virus.
Deeper still, we’ve become more aware of risk in our daily lives and the reality that risk isn’t the dirty word that society often tags. Embracing, recognising & managing risk is perhaps the single biggest indicator of future success.
Is It Worth It?
Could this be the moment where you pursue your dream to apply your talents to the sports sector? Does the risk feel right, particularly when compared to the health risks we all face right now? Well, covered by us in previous blogs and many people much smarter than us – sports as a business continues to grow at a pace that will make 2020 look like a blip when we review the direction of travel in 10 years’ time.
For the movie buffs amongst you, during the magical 1967 film the Graduate, Dustin Hoffman received an insider tip as to the best business sector to work in when he graduated – a family friend whispered ‘plastics my boy’ And sport is today’s version of that sage advice! We’re not yet even at the start line of the commercial explosion of traditional sport and esports.
We’re on the warm-up track, hearing the crowd, hoping we can deliver. So far in this blog we’ve suggested some of the many reasons why this might be a perfect time for you to change tack but let’s now dig into some of the ‘macro’ and why we are so convinced that the big picture looks healthy.
On May 19, Spotify announced it was acquiring the rights to the Joe Rogan Experience for circa $100m such that within the next year the show will only be available through Spotify. The JRE is probably the most-watched interview format podcast show in the world, but still not a household name outside the USA. Less well publicised but absolutely critical to sports was Spotify’s acquisition of The Ringer, a US sports platform offering content that crosses sport and tech which signals exactly what the modern sports viewer is looking for.
And? Well it started with Netflix and now Spotify, this is just the start of media platforms commissioning their own content or buying existing content. In fact, anything that will drive traffic to their platforms and lead to profit.
We note here that Spotify’s genius original business model has 1 major flaw – the royalties they pay to music labels are about 75% of the revenues created so profits so far have been sparse. Creating their own content is a next level game changer for these guys.
Sports are a huge target for all the new era media platforms. And, of course, all this means more money flowing into sports. More deals to be done, more advice needed, more professionalism, more commercial opportunity. Full Stop.
We rest our case. We’re here 24/7 to help you get into sports or innovate within sports. Hit contact us and we’ll lean in with you. As always if you like this blog, tell others, share, like & subscribe to join the Athletz family.