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[Thai Economics Library | Archives| Currency Crisis 2007| Entrepreneurs]
May 23, 2008

Artificial turf indoor football fields
Sponsorship and event marketing,
key elements of a sports business model

By Jon Fernquest

pitchIndoor artificial turf sports fields may be exactly what avid Thai football fans need during the rainy season. When the playing field is indoors, games never need to be cancelled because of rain. Even outdoors, artifical turf playing fields never get muddy.

A large athletic facility with four sports fields, each 35 by 50 metres, will occupy eight rai of land on Soi 48 of the Bang Na-Trat road. At 10,000 square metres, the new sports field complex, named S-One, will be the largest such facility in the country. Event organiser RS Fresh Air, a subsidiary of the Thai entertainment company RS Plc, has invested 100 million baht in the complex including 20 million baht alone for artificial turf imported from Italy.

Thailand's existing 15 artificial turf fields are small. Their small size means that only small matches with five players on each side can be played. Each of the new fields will be large enough for seven players to play on each side.

How will such an expensive facility pay for itself? Rental fees of 1,500 baht per hour will generate an expected revenue from 300,000 to 400,000 baht per month, but this will not be enough to make the venture profitable.

Additional event sponsorship revenue will come from the sports marketing budgets of such well-known companies as Panasonic, Yamaha, Nescafe, and M-150. Each large event will have both a main sponsor and a co-sponsor. The breakdown of the expected 70 million baht in revenue next year runs as follows: five main sponsors (40%), field rentals (30%), and events (30%).

Arranging sponsorships for sporting events will draw on the already existing expertise. RS Fresh Air's parent company RS Plc is a major entertainment and media company in Thailand. The parent company is already a major sports content provider in Thailand, holding the Thai broadcasting rights for next month's Euro 2008 tournament as well as the 2010 and 2014 World Cups.

Even before completion, future expansion plans are being made. Two more commercial athletic facilities are being planned for suburban Bangkok next year (Rarm Intra, Bang Khae). A whopping 300 million baht investment, three times the 100 million baht of the first project, is being planned for the next Rarm Intra facility

(Source: Bangkok Post, business, PORNNALAT PRACHYAKORN, 21-05-08, temp-link)

Vocabulary:

artificial turf - artificial grass that looks like natural grass, but made from a plastic-like material, benefits: no mud, can be used indoors (See Wikipedia) หญ้าเทียม

avid - enthusiastic, very interested กระตือรือล้น

avid Thai football fans - football fans who are very enthusiastic and interested in football แฟนฟุตบอลผู้สนใจ

athletic - (adjective) involving sports เกี่ยวกับกีฬา

a facility - buildings, equipment, or areas for doing certain activities (See glossary) สิ่งอำนวยความสะดวก

an athletic facility - a special area, buildings, and equipment for playing sports ศูนย์กีฬา

a complex - a group of buildings designed for a special purpose  ศูนย์ธุรกิจ

an event organiser - a person or company that skillfully organises large events as a business or profession ผู้จัดงาน

a subsidiary - a small company owned by a larger company บริษัทในเครือ

expected revenue - the amount of money that the company believes it will receive in the future รายได้ที่คาดว่าจะได้รับ

generating Y - create Y สร้าง

X sponsors Y - X financially supports Y

a sponsorship - a relationship of financial support (usually in exchange for publicity) การให้การสนับสนุน

event sponsorship - financially supporting an event  การสนับสนุนรายการ

an event sponsor - the company that financially sponsors the event ผู้สนับสนุนการจัดงาน

a co-sponsor - one of the sponsors, when there are more than one ผู้ให้การสนับสนุนร่วม

a sponsor - pay all or part of the expenses of an event to get publicity (the logo and advertisements of the the sponsor are visible) ผู้ให้การสนับสนุน

publicity - activities that draw the public's attention to something or someone (See glossary) กิจกรรมเพื่อการประชาสัมพันธ์

a budget for X - the money that a company plans to spend on X during the next year งบประมาณ

sports marketing budgets - planned spending by a company on ads during sporting events and on sports event sponsorship งบประมาณด้านกีฬา

a breakdown of Y - a list and description of the separate parts of Y

expertise - special skills or knowledge from study or practical experience ความถนัด

draw on - use ใช้ประโยชน์

draw on the already existing expertise - uses skills and expertise that already exist within the organisation ดึงความสามารถและศักยภาพของคนในองค์กรมาใช้

sports content provider - a company that produces sports shows (in this case purchased for broadcast by a television or cable company) บริษัทที่จัดรายการกีฬา

rights - what the law allows you to have and do สิทธิ์

Thai broadcasting rights for Y - owns permission to show Y on television or cable in Thailand ได้สัมปทานสถานีโทรทัศน์

suburban Bangkok - the areas around the edge of Bangkok, not the center of the city ชานเมืองกรุงเทพ

whopping - a very large amount จำนวนมหาศาล


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