Leicester Tigers, an English rugby team, narrowly avoided relegation in 2019, finishing at the bottom of the Premiership. In response, the club adopted AI technology to assess player performance and simulate various scenarios affecting their chances of winning.
Since then, the team hasn’t looked back. With the help of AI tools developed by London-based sports data company Prospect and its subsidiary, Oval, Leicester Tigers claimed the 2022 Premiership title, outperforming 13 other teams.
Similar success stories in cricket, soccer, and various other sports highlight the transformative impact of AI on the sporting landscape.
AI’s versatility extends to player scouting, performance analysis, and strategic planning against opponents, tasks once deemed too intricate. It also fosters enhanced engagement between fans and teams, capitalizing on the burgeoning interest in sports.
Motasem El Bawab, the chief information officer at Barcelona-based consultancy N3XT Sports, emphasizes AI’s role in leveraging fan and athlete data to deepen understanding and attract investors.
This paradigm shift is reflected in the soaring value of sports mergers, acquisitions, and investments, which have surged to approximately $37 billion in just four years, according to Deutsche Bank analysts. Notably, AI’s impact coincides with a period of heightened interest rates and inflation, driving investment toward sports, exemplified by significant deals such as Saudi Arabia’s lucrative contract with soccer star Cristiano Ronaldo.
Deutsche Bank notes that AI has been instrumental in the success of sports clubs, underscoring the imperative for teams to embrace cutting-edge data tools to maintain a competitive edge.
Contrary to skeptics who view sports statistics as a finite resource, the bank’s analysts Luke Templeman and Galina Pozdnyakova argue that sophisticated data analysis will democratize competition within leagues dominated by a few teams.
How does AI help make the big bucks?
Valuing sports clubs involves considering various factors beyond financial metrics like profits. Elements such as the team’s tier, its roster, and its historical performance also play a significant role.
With the advent of AI tools in sports management, there’s a multitude of opportunities to enhance operations, according to El Bawab. He illustrates this with the example of how improved performance and management strategies can directly impact ticket and merchandise sales, thereby elevating a club’s valuation by demonstrating potential for increased and sustainable earnings.
To make accurate predictions, access to robust data is paramount. FC Barcelona, for instance, utilizes footage from previous soccer matches to analyze opponents’ behavioral patterns and devise effective game plans. Similarly, the English women’s cricket team collaborates with Prospect to leverage AI in selecting the ideal players for different opponents by simulating various match scenarios.
Jack Tozer, Prospect’s cofounder, underscores the potential for ambitious and innovative teams to capitalize on computing power and modeling technology. Teams that excel in utilizing AI are poised to reap significant benefits.
Mark Lillie, a partner at Deloitte and U.K. sports industry lead, suggests that while sports organizations are gradually increasing their investments in AI and data, this technology is expected to play a pivotal role in the near future. He notes that as AI becomes a standard tool for gaining competitive advantage, teams with strong AI capabilities may become more appealing investments, potentially driving up valuations. However, Lillie emphasizes that while AI is powerful, it cannot solve every problem, highlighting the continued importance of human expertise, intuition, and leadership for success in sports.
Creating more impact with sports fans
Fans are the heartbeat of the sports industry, driving the popularity of clubs and leagues across different sports and motivating players through their unwavering support.
Despite their pivotal role, there remains a gap in engaging fans effectively, as noted by SentientSport’s CEO, Ryan Beal. He highlights how fan interest tends to peak around match days but then declines afterward. This fluctuation presents a significant opportunity for monetization, which AI can help capitalize on.
AI can enhance engagement by delivering personalized content tailored to individual fan preferences, such as Manchester United’s ability to interact with its global fan base in their native languages. Beal suggests that Manchester United’s revenue could nearly double if it fully embraces AI-driven strategies.
Moreover, digital experiences aimed at expanding the fan base could create additional revenue streams beyond traditional sources like ticket sales, sponsorships, and TV rights.
The adoption of AI in sports is gaining momentum, with all teams considering its implementation to varying degrees, according to Templeman of Deutsche Bank. As more established teams embrace new technological tools, others are likely to follow suit to remain competitive.
Beal sees AI as an equalizer, offering opportunities for smaller teams to elevate their status and for larger teams to monetize their global fan bases further. This dynamic creates an ever-evolving landscape in sports, where innovation and adaptation are crucial for staying ahead of the curve.
