Minister Solly Malatsi: Sport Business Forum
Speech: Sport Business Forum
Programme Director,
The organisers of the Sport Business Forum
Ladies and gentlemen,
Good afternoon
I trust that your discussions thus far have been productive and inspiring. I urge you to take forward the discussions, networks and ideas you’ve shared for impact in your respective fields.
Sport is one of the most powerful uniting forces in our country. From the 1995 Rugby World Cup and 1996 African Cup of Nations triumphs on home soil, Bafana Bafana qualifying for France ’98, hosting the 2010 FIFA World Cup, our Olympians such as Penny Heyns, Josiah Thugwane, Wayde van Niekerk and the Awesome Foursome winning gold to back-to-back Rugby World Cup champions – all of which demonstrates our country’s greatness across different fields.
These special moments brought us together when so much often keeps us apart. And behind all of those moments broadcasting technology allowed tens of millions of South Africans – from Musina to Mdantsane, from De Aar to Durban – to watch history being made.
Digital technology has opened up new avenues of revenue generation, disrupted stagnant business models and brought brands, institutions and public figures closer to the audiences than ever before. Technology is driving the same evolution in sport, with video and big data analysis informing load management and new commercialisation models being opened through digital advertising, team platform ownership, in-house content production and influencer revenue streams. For fans, digital technology allows for streaming onto smart devices, deeper connections with their favourite teams and personalities through more content, and easier access to online communities. Stars, teams and fans are now in charge of telling their own stories. The power of digital storytelling was most evident during the recent Rugby’s Greatest Rivalry series between the Springboks and the All Blacks. The teams weren’t just competing on the field, they were also battling it on social media, through quirky and behind-the-scenes content.
However, the digital divide we see quite starkly in society – between the always-connected and the hardly-connected – also plays out in the sporting world. Many amateur teams don’t have a website, let alone the capacity to post daily TikTok or Instagram reels. Some professional clubs struggle to secure sponsorship, let alone employing an in-house digital content creation team or paying for data analysis software. We have to ensure sport doesn’t become elitist, with only the well-heeled being able to connect with fans. This is why the expansion of digital infrastructure and the introduction of more affordable connectivity options is vital for the development of an inclusive society where all fans have access to their sport and teams of choice.
The evolution of digital technology has also fostered the growth of new audiences and a resurgence in the popularity of school sport. SuperSport’s school and university offering is could soon be competing with some of the best youth sport coverage we see in markets like the United States of America. By beaming school and club sport into the homes of millions of people, fans are now connecting with the stars of tomorrow, tracking their journey from their school first teams to the professional ranks and possibly even into the national teams. Youngsters such as Markus Muller, Ethan Adams, and Kwena Maphaka have become household names from their exploits in school sports. Scouting has been amplified.
Digital technology also sits below the growth in streaming services such as SuperSport and SABC Plus, which have transformed the points of access for all stakeholders in the value chain. Sports fans can watch games from wherever they are, more codes and games are available meaning more opportunities for advertising and sponsorship and more opportunities to scout the next stars.
The evolution of digital technology is changing every sphere of social, economic and political life. Artificial intelligence, smart devices and super computers are changing how we work, learn, play and connect with each other. Digital technology underpins every sector of the economy, including sport and the business of sport. AI is improving broadcasting processes, while the transformative technology allows businesses to better identify, measure and assess sponsorship. Clever use of geolocation and adaptive advertising means that adverts flighted during the same event can be targeted to different audiences in different markets, expanding the commercial opportunities for sponsors, broadcasters, federations and teams.
My overarching goal during my term in office is to facilitate the transformation and growth of South Africa’s digital economy. That means leading the development of policy that removes blockages to innovation and investment, ensuring regulation protects citizens without strangling business growth and creating the conditions to foster digital inclusion. For the sports industry this means having access to world-class technology and infrastructure to foster richer connections with audiences who have reliable and affordable access to the internet. It also means strengthening the ease of doing business in South Africa to attract international events, sponsorships and partnerships.
At the same time, it is my department’s responsibility to ensure all South Africans are safe while using the internet. And this includes being safe while gambling online. Sports betting has grown exponentially in recent years, supported by the evolution of smart devices and technology. This offers strong revenue opportunities for teams, federations and other stakeholders in sport. But we have a duty to be aware of the impacts online gambling is having in a country where many people are poor, unemployed, desperate and with low levels of financial literacy. I will be engaging the Independent Communications Authority of South Africa to understand whether enough safeguards are in place to protect consumers against online gambling - and to determine whether operators are complying. I think it is important that we understand what measures can appropriately be taken within ICASA’s regulatory mandate where electronic communications networks and services are used to facilitate access to gambling and betting products.
We have made and continue to make great strides to ensure that our connectivity coverage covers all households. But connectivity and meaningful, reliable access to the internet are not one and the same. The digital divide still exists, and it is our responsibility to close it before it grows ever wider.
For example, while the growth in school sports coverage is exciting and commendable, the risk is that the benefits of coverage benefit and the additional investment it brings further widens the gap between schools in affluent urban areas and those in townships and rural areas.
While many of us in this room use AI on a daily basis, use our phones to call an e-hailing service to the stadium, track our workouts on smart watches or experience sports matches on two screens simultaneously, millions of our compatriots struggle to get a reliable 3G connection or they share a single device in a household of four.
Worse still, many people have to decide on whether to buy a meal or buy a data bundle to log onto the internet to send a CV. Connectivity must be affordable, reliable and accessible for all.
The expansion of communications infrastructure is vital to achieve the universal access we are striving for. In recent months, we have seen several key developments in the industry which will support our ambitions. One of these is the release of high demand spectrum for ICASA to auction, another is the confirmation of the introduction of low-earth orbit satellites next year and another is the mobile network operators agreeing to work together to roll out infrastructure in rural areas and villages. At the same time, local and international technology companies continue to invest in the development of data centres.
These developments are not separate from the growth of sport and the business of sport – they will form the bedrock of the future of sport. Through greater connectivity, data processing power and new technologies, you will have the ability to create more and deeper connections with fans, improve the quality and speed of e-sports, drive better performances on the field through richer insights on athletes delivered in real-time.
Technology will be key to pushing human endeavour to greater heights. It already plays a central role.
Communications and digital infrastructure will become as essential to sport at most levels as the floodlights, the turnstiles and the turf.
Many of the sponsors and investors in sport are leading technology businesses, whether they be telecommunications giants, software developers, hardware companies or broadcasters.
This may already be happening in certain spheres, but I would urge sporting teams to look beyond financial models of support and to leverage their commercial partnerships to drive innovation in their own teams, sporting fields or federations. The reality is that for sport to grow more people need to watch it – be it at the stadium or on a screen – and thus it is important that access to games in-person or virtually is within the reach of as many South Africans as possible. It cannot be that only the elite or urban citizens have access to the stars who bring us so much joy – or pain, if you support Manchester United.
Some of sport’s most pioneering ideas have come through understanding science and technology – such as the introduction of video replays for the third umpire in cricket right here in South Africa in 1992 or the creation of the speed gun ball tracking technology by South African engineer Henri Johnson.
Social media and streaming have already changed the way sportspeople and their teams connect with fans, how the public express their support for their favourites stars and teams, how people watch sport and how they experience the game on the field and on their smartphones at the same time.
One of our aims as South Africans has always been to compete on the international stage. Not merely participating – which is commendable just being there – but being able to go toe-to-toe with icons, showing we belong. Your goal, as is ours, should be to ensure these aren’t sporadic instances but a hallmark of our sporting industry, society and economy.
Sport has always been about the joy of play, the energy of competing and the opportunity to be the best version of yourself through application, dedication and hard work. Never lose sight of that. Not every child will grow to be Springbok or a Banyana Banyana star, but every child should have the chance to have fun with their peers, making memories for life.
I urge you to remember the digital divide and how you can play your part to build a more inclusive society by using technology to connect with more people – not to deepen that divide by building products and experiences limited to a fortunate few.
Digital technology gives individuals more agency
Technology may change how we experience sport, package it and understand our performance, but at its heart sport will always be a great leveller; it will always be about hope and dreams, the thrill of achievement and connecting with ours.
I thank you.
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