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FUTURE WAT PROJECTPresented to the Euromeetings OrganisorsAmsterdam, 17th October 2008by IAAF & Mindspring AG

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BACKGROUND

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OUR BRIEF • Presidential mandate to review and improve WAT in line with the his Manifesto

• Embrace the global potential of athletics

• Create opportunity for more Athletes to participate professionally in athletics

• Appeal to the youth

• Deliver an economically sustainable project

• Investor guarantee

• All stakeholders to benefit

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OUR CREDENTIALS

• Senior leadership positions at both TEAM Marketing and Octagon Worldwide

• Prior Involvement with athleticsI

AAF World Championships

Mobil Grand Prix

IAAF World Cup

Athletics South Africa

• Specific experience with investors in the creation of - UEFA Champions League, IIHF Champions Hockey League

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WINNING CONCEPTS • Strong involvement by Federation

• Win-win for all stakeholders

• Strong free to air broadcaster platform

• Centralised marketing programme for worldwide sponsors

• Strong brand identity and branding execution

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WAT PROJECT

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PROJECT WAT STATUS • Step 1 - Identified objectives:

• Step 2 - Developed new concept

• Step 3 - Conducted feasibility study

• Step 4 - In depth review of concept and feasibility study led by IAAF President

• Step 5 - Recommendation to IAAF Council

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FEASIBILITY STUDY 12 Month process to

date

Stakeholders

• Meet organizers

• Agents/Athletes

• IAAF and Council

• Ambassadors

Sponsors

• Carlsberg

• MasterCard

• Nestlé

• Nike

• Shell

• President, International Sponsors Council

Broadcasters

• European Broadcasters Union

• BBC (UK)

• BSkyB (UK)

• Setanta (UK & North America)

• ZDF (Germany)

• DSF (Germany)

• Sky Italia

• France Television

• Canal+ France

• TVE (Spain)

• Sogecable (Spain)

• Eurosport (pan-European)

• NBC Universal (USA)

• Fox (USA)

• TBS (Japan)

• Al Jazeera (Middle East)

• GTV (Africa)

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CURRENT SITUATION • Strong consensus across the board that

there is a need for change

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CURRENT SITUATION • Olympics and World Championships are

premier events

OlympicsWorld

Champs

GoldenLeague

WAT

3 PILLARS OF ATHLETICS

98,787,860

1,151,821,000

WAT

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KEY PRINCIPLES

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KEY PRINCIPLES • Do what is in the best interests of

Athletics

• Reinforce IAAF leadership

• Elevate the status of the Golden League and athletics as a whole

• Extend reach beyond Europe

• Guarantee top athletes and enhance the earnings capability of more athletes

• Create more meaningful events - shift focus away from individual performances to great competition

• Bring new investment into the sport

• Create a strong global brand

• All stakeholders to benefit

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WAT STRATEGY

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REVISED WAT STRATEGY

Investor Funded

Improve WAT Format

BuildBrand

TopAthletes

SalesRevenue

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STRATEGY

Investor Funded

Improve WAT Format

BuildBrand

TopAthletes

SalesRevenue

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FORMAT

Key Changes:

•Simplified format

•Two-tier approach

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GOLDEN LEAGUE SEASON SCHEDULE Rationale for 12 events

• Maintain strength of European events

• Target key global markets

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are needed to see this picture.

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GOLDEN LEAGUE FORMAT

• Two-hour programming block

• Consistent Golden League disciplines• 10 standard for entire series• 4 events of local interest

• Simple, meaningful points system based on order of finish

Programming Block20:00-22:00Local Interest Discipline 1Local Interest Discipline 2Local Interest Discipline 3Local Interest Discipline 4GL Discipline 1GL Discipline 2GL Discipline 3GL Discipline 4GL Discipline 5GL Discipline 6GL Discipline 7GL Discipline 8GL Discipline 9 GL Discipline 10

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CHALLENGE LEAGUE OVERVIEW • 12 meetings out of tender process

• Europe and outside Europe

• Open to all disciplines

• IAAF solidarity fund: considerably higher than current IAAF grant

• Consistent branding

• No grant of marketing rights to the IAAF

• Can be scheduled any day except on or around Golden League days

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STRATEGY

Investor Funded

Improve WAT Format

BuildBrand

TopAthletes

SalesRevenue

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KEY CHANGES • IAAF guarantees top athlete participation and finances incentive plan

• IAAF central athlete contracts• Guaranteed contract for 20 to 30 top

athletes• 6-9 appearances per season

• Standings Bonus for each discipline to replace current Jackpot • Benefits many athletes as opposed to just

1 or 2

• Considerably more money for more athletes

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NEW PARTNERSHIP

IAAF

Meet Organisers Athletes

•Prize Money•Appearance Fees

•Appearances

• IAAF Contracts

•Ranking Bonus

•Participate in 6-9 events

•Sponsor appearances

• Cen

tral $

Contributio

n

• Cen

tral P

rom

otion

• Ath

lete

s

• Del

iver

com

mer

cial

rights

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STRATEGY

Investor Funded

Improve WAT Format

BuildBrand

TopAthletes

SalesRevenue

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BRAND • Make Golden League instantly recognisable

• Consistent implementation across all events

• Much stronger vs. individual event brands

• Reviewed best practices from other sports and propose the best solution for Athletics

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STRATEGY

Investor Funded

Improve WAT Format

BuildBrand

TopAthletes

SalesRevenue

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MARKETING • Current decentralised marketing approach leaves money on the table

• Need to access all available budgets• Global / Regional• National• Local

• Need to keep benefits of current sponsors• Ticket promotions • Hospitality

• Combined centralised / local sales allows access to all levels

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SPONSORSHIP CONCEPT

4Golden League Partners(4 x $5m)

National Suppliers

National Sponsors

Individual EventPartners

Series Partners

1 Host City Partner

1 National Event Sponsor

($0.5-1m each)

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BROADCAST SALES

• Centralised sales of all broadcast rights• Splitting TV rights leads to weaker

product/loss of leverage• Obligation to be host broadcaster

• Priority to free-to-air coverage• …in order to create broadest coverage to build

sport• …and therefore build value of sponsorship• Target gradual increase….starting with 2 or 3

meets on terrestrial in key markets• Additional coverage on thematic sports channels

• Broad programming• Live• Delayed• Highlights• Magazine (centrally produced)

• Broad distribution• TV• Internet• Wireless

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FEASIBILITY STUDY • Feedback from EBU

• Key Partner of IAAF

• EBU strongly wants to keep its commitment to athletics

• Conducted complete review of proposed project

• EBU says this is going in the right direction and they want to partner the IAAF in this development

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STRATEGY

Investor Funded

Improve WAT Format

BuildBrand

TopAthletes

SalesRevenue

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INVESTOR FUNDING • This project will be funded by investors

on a long term basis

• Allows for massive new financing of the sport

• Strong interest is being shown by potential investors

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SUMMARY

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SUMMARY • Revitalise athletics

• Strongly addresses key issues• Confusing format• Meaningful competition• Athlete participation• Commercial appeal• Financial viability

• Feasibility study indicates concept is feasible

• Investor interest in the concept is strong

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NEXT STEPS

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TIMING

Pre-SeasonBuild-up

Product Development

BroadcasterSearch

9/071/08

SponsorSearch

2007

Design - A

FeasibilityStudy - B

InvestorClosing - D

20082009

2010

Implementation ofCommercial & Event Plan

New IGLSeason

Event PlanImplementation

1/09 1/10

BiddingProcess - C

Pre-testing with Champions

IAAF President Briefing

IAAF Approval

Signature of Agreements

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NEXT STEPS • Have now received IAAF Council “In Principle” approval to proceed

• Investor search now underway with a view to securing interested parties by next IAAF Council Meeting in November

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THANK YOU