South Africa rugby fever: Money on the ball

The rugby fever has engulfed South Africa with the Springboks making it to the finals, playing against New Zealand in a highly anticipated match. In a special segment on CNBC Africa, the focus was on unpacking the financial aspects of rugby, exploring where the money lies in the sport. The discussion centered around key areas such as match streaming, advertising revenue, restaurant and bars, grocery retailers, sports betting, and sports gear companies. Match streaming has emerged as a lucrative avenue for companies, with a focus on multi-choice and its world-class sports business, SuperSport. The popularity of sports streaming platforms has seen a surge in subscriptions, especially during major events like the Rugby World Cup. The accessibility and convenience of streaming have attracted a large audience, driving revenue for companies like multi-choice. The discussion also touched on the impact of additional advertising revenue during sports events. Brands capitalize on the high viewership to showcase their products, with strategic placements during breaks and halftime. The captive audience that sports events bring is a key attraction for advertisers, ensuring a high viewership and brand exposure. Restaurants and bars have also experienced a boost in business during the rugby fever, with an influx of patrons gathering to watch the games. While local pubs and family restaurants have seen increased foot traffic, the discussion pointed towards potential benefits for retail malls with turnover clauses in their leases. The economic impact on consumer spending has been a balancing act, with a shift in discretionary income towards leisure activities. One of the standout winners in the rugby frenzy has been grocery retailers, with Checkers leading the way in branding and marketing. The sponsorship and promotional activities around the Rugby World Cup have boosted sales for grocery chains, attracting customers with themed offerings and promotions. The higher margin grocery spend during sporting events has been a significant revenue driver for retailers. Sports betting has also seen a spike in activity during major sports events like the Rugby World Cup. Betting houses strategize to attract customers through innovative marketing tactics, leveraging the popularity of sports to engage audiences. However, the competitive nature of the sports betting industry poses challenges in customer acquisition and distribution costs. Sports gear companies like Nike have capitalized on the rugby fever with exclusive merchandise and branding initiatives. While the rugby craze has generated buzz for companies like Nike, the global market scale remains a factor to consider, with sports like NFL and basketball dominating the industry. In conclusion, the discussion highlighted potential investment opportunities post the Rugby World Cup. Brands like Checkers and multi-choice were projected as potential beneficiaries of the rugby fever, with a focus on sustaining subscriber growth and brand value. The resurgence of sports post the pandemic era presents opportunities for companies to leverage their unique offerings and engage audiences in a competitive market landscape.