law
Second cycle of commercialisation
Thomas joined the club in November 2015 to take a forward-thinking view for generating commercial revenue. “The move to St Mary’s was the first cycle of commercial development. We’re now in a second cycle as we look at ways to drive additional revenues,” said Thomas, who spent 20 years working for advertising and marketing agencies and, most recently, as head of brand at Virgin Holidays.
“Football clubs need to behave like consumer brands. Strong brands, like Virgin, know their customers inside out and always put them first. Football clubs have traditionally tended not to do that. For us, our fans are of primary importance,” he said.
He added: “The business side of the club has been transformed in the past five years. Player contracts are incredibly complicated and often have to be done very quickly, often right at the end of the transfer window. We now have an in-house legal team.”
Southampton’s Staplewood training campus is an essential part of the club’s future. Paris Smith was involved in negotiations to upgrade facilities. “We have invested heavily here and believe it is significantly more advanced than many Premier League clubs. It’s a world-class facility with a global reputation and one of our biggest selling points in attracting players to the club. Marchwood is where the magic also happens,” said Thomas.
Global appeal
Global TV broadcasting rights generate billions of pounds that Premier League clubs rely on to pay the wages for top players. The current UK and international rights are worth £8 billion for the 2016/17
to 2018/19 seasons. One of the impacts of TV coverage has been the globalisation of English clubs.
“A big focus for us is developing our global fan base while also growing our local fan base. We have to keep our eye on both balls,” said Thomas. “That means filling the stadium week in, week out, with fans who are passionate, engaged and loyal. Getting that right is ultimately the most important thing.”
The Saints’ global march is focusing on newer footballing regions, particularly the US, China and India. “These countries realise the huge potential economic benefits of football,” Thomas pointed out.
China’s president Xi Jinping has set his country the ambitious target of becoming a football superpower by 2050. Gao Jisheng’s decision last year to take a majority stake in the club is a sign of the growing interest from China in the ‘beautiful game’. “A key reason Mr Gao was attracted is that we are a well-run club and with a strong management team and track record of delivering both on and off the pitch,” said Thomas.
Southern powerhouse
Closer to home, football’s pendulum has swung in recent years from the traditional northeast powerhouse to south coast clubs. The struggles of football giants Newcastle, Sunderland and Middlesbrough have been mirrored by the resurgence not only of Southampton, but also Premier League newcomers Bournemouth and Brighton. The game now is all about the southerners showing staying power.
Paris Smith and Southampton’s relationship spans decades. As well as having advised the club in a number of its key projects, the firm is a customer and many staff are fans. And like all true fans, the firm’s support is unwavering.
parissmith.co.uk
“It’s important we remain sustainable and financially prudent, which is why we are accelerating the commercial aspects of the club to generate extra revenue,” said Thomas. “In footballing terms it’s about developing our younger players through the academy and continuing to be many people’s ‘second favourite club’ for the way we conduct ourselves in football and business.”
David Thomas THE BUSINESS MAGAZINE – MARCH/APRIL 2018
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