CEO at Launch.vc – Ray Walia is a serial entrepreneur with over 25 years of experience in both the entertainment & technology sectors.
Technology has enabled us to collect data faster, more accurately and in more detail than ever before. The use of data in the sports industry has evolved rapidly with sophisticated machine-learning algorithms and now AI. Sports teams, leagues and organizations leverage this data to gain insights into player performance, fan engagement and operational efficiency.
However, I find that a lot of the data generated is underutilized, leaving an untapped potential for businesses working in partnership with athletes to own their data and their careers. Data intersects every central point of commerce in the sports industry, and athletes should be participating at every level, from on-field performance that translates to wins and losses to player contracts, sponsorship contracts, media rights and viewerships, merchandise sales, social media and even health and sports medicine.
Evolution Of Data In Sports
Data and data analysis have long been part of the sports world. For example, skilled handicappers have always used past performance and pedigree analysis to predict the performance of racehorses on the track and thus place bets in a more efficient way.
Modern technology gives a larger wealth of data to sift through. As of 2021, sports teams spent almost $6 billion on sports software. That spend is projected to grow to $12 billion by 2028. New software applications are producing more data every day, and new AI technologies are now able to analyze video and motion directly, generating insights into how players move and operate on the field.
Data Sources In Sports
The primary data source is the athletes themselves. By leveraging data from sensors, wearables and other tracking devices, athletes are now able to optimize their performance while reducing the risk of injury or illness.
If you haven’t seen the movie Moneyball, starring Brad Pitt and Jonah Hill, I highly recommend you do. It’s the story of how the Oakland Athletics, an underdog baseball team, hired a statistician to evaluate the data generated by the team. This allowed them to find players who were undervalued using traditional methods—men who did not look like baseball players but had the stats to prove them wrong.
Another group of people that collects athlete data is sponsors. Controlling your data as an athlete can help you get sponsorships. Generating more data has saved more than one person’s Olympic dream.
Types Of Data And Their Uses
Performance Data
Performance data from training sessions, practice and games can be used to analyze an athlete’s strengths and weaknesses as well as identify areas for improvement. It can also be used to compare athletes across different sports and leagues, allowing coaches to make more effective decisions when recruiting new players or making strategic decisions about their team.
For example, wristbands are used to analyze every motion a basketball player makes, highlight reels can be used to show an athlete’s skill to teams or to sponsors and injury reports show player availability and areas to be worked on.
Wearable Data
By leveraging data from sensors, wearables and other tracking devices, athletes are now able to gain a better understanding of how to respond to different types of training. Biometric tracking allows athletes to know their exact recovery time after exertion, which can help them know when to pull back to catch their breath. Wearable data is highly personal, and I think it is particularly important that athletes use transparent contracts with teams and agents in order to keep control over how that data is used and monetized.
Financial Data
Everyone generates financial data. Data from contracts and sponsorships might be used by teams to help determine the value of a player and determine what offer they might make to convince the player to move teams. Sponsors, especially ones new to a sport, will use past sponsorship data to determine how much to offer to an athlete.
Social Media Data
Teams may monitor an athlete’s social media presence. Social media data can be used to see how good an athlete is at building their own brand. However, scandals do happen when a player says something offside or politically incorrect on social media. Over the years, these have included players using homophobic slurs, insulting their coach in public, sharing racy videos and even making death threats. Sponsors are also fast to drop athletes who make bad social media mistakes.
Empowering Athletes Through Data
With the increasing importance and value of data, businesses can take proactive measures to ensure athletes control and monetize their data. Utilizing the types of data described above, including performance, wearable, financial and social media data, businesses can create secure and transparent frameworks for athletes to manage their information. Here are some steps businesses can take to help athletes protect and monetize their data.
1. Develop secure and transparent platforms. Invest in technology and frameworks that allow athletes to securely access, control and analyze their data, ensuring privacy and confidentiality.
2. Create clear contracts and agreements. Implement contractual agreements outlining data ownership, control and utilization, defining the rights and responsibilities of all parties involved.
3. Explore monetization strategies. Collaborate with athletes to identify opportunities to monetize data through sponsorships, targeted marketing and fan engagement. This may include connecting athletes with brands, developing personalized fan experiences or other innovative revenue streams.
4. Provide education and support. Offer training and support to athletes in understanding the value and potential of their data but also training around financial literacy and best practices for approaching their athletic careers as a business. This could involve workshops, individual counseling or providing analytical tools tailored to athletes’ needs.
5. Monitor and adjust strategies. Regularly review and adjust strategies in line with technological advancements, market trends and feedback from athletes and stakeholders to ensure ongoing alignment with goals and values.
By understanding the changing landscape of athlete data and implementing the steps above while promoting ethical standards that communicate a strong stance on ethical data handling, business leaders can forge a path toward more responsible and innovative use of athletes’ data, creating win-win scenarios for athletes, teams, sponsors and fans alike.
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