NexGen boss proposes investing in business model

So, we have COVID-19; big deal…

Sporting events have been among the activities hardest hit by the COVID-19 pandemic; and, by implication, sports tourism has suffered tremendously.

Two years ago, president of the Guyana Golf Association, Aleem Hussain, raised the idea of creating events from a variety of sporting disciplines for streaming online (for a fee) to virtual audiences in the diaspora. He had in mind fans who are loyal to all things homegrown, and this effort was intended to boost revenue incoming into Guyana.
Now, with travel virtually nonexistent and tourism in shambles, according to the latest IDB report, maybe it’s time for us to revisit the ideas he presented, in order to unify our actions and create a fund to help all sporting disciplines.

The burdensome task of carrying the cost of funding sports activities has too often been placed on the Government and large businesses; and, when spent, those funds are gone forever. Hussain proposes that instead of simply spending and spending, we invest in a business model that produces revenues that can self-fund future events and grow other sport disciplines.

Hussain’s suggestions are:
• Events using the most popular sports should be funded and created for a virtual broadcast
• All the sponsors involved should receive advertising of their branding and services as a return on their investment
• All funding partners and sponsors should receive a minimum of 10% profit on the money contributed for the life of the project
• 20% of the revenues should be set aside for development of other sports that are developing
• 25% should be paid to the promoters
• 40% should fund the event
• 5% should be used for administrative purposes
• Events should be designed to attract at least 200,000 viewers worldwide, and those viewers should pay US$2 to view the event (low cost will prevent pirating and avoidance of fees, and can be deducted from phone credit).
When you consider the cost of air travel, accommodation, meals, entrance fees and related expenses for an attended event, it is obvious that more people would choose to watch exciting events from the comfort of their homes on a regular basis, rather than schedule trips to Guyana every month.
Some will ask, “What about tourism? This isn’t tourism, and if nobody comes, we can’t show numbers.”
Well, the simple answer is: what is the ultimate goal of tourism? Money, jobs and advertising. Tourism companies such as hotels, restaurants and tour operators can build their brand by advertising to hundreds of thousands of fans worldwide (something they can’t afford to do now). They can each become a funding partner and receive a profit, even though the client is virtual; and more jobs are created in the sports and media industry by hosting mega-events twice per week, rather than an occasional grand event.
Moreover, we would be presented with an opportunity to promote our country, our vision, our beauty, our culture and our potential – all available for the world to see over a 2-3-hour broadcast that we normally wouldn’t be able to afford paying for if we had to buy airtime.
Remember, international advertising costs on average US$25,000 to US$35,000 per thirty-second commercial, but we will have approximately 75 advertising spots per event, absolutely free. This will help to bring future travellers to the country.
Isn’t it time to put egos aside and choose the top 5 sports that are most likely to fit this model? All Association presidents should work together to create super interesting activities that everyone wants to watch. And we would be helping to build the lesser developed sports from the shared revenues.
Of course, this way of thinking would draw the ire of the establishment, those in control, who would say, “If it isn’t broken…”, and, “We’ve survived tough times before, why change it?” Then along comes something like COVID, and makes us realise that change is necessary if we want to survive.
Let us change the mindset from “hat in hand, seeking constant handouts from sponsors and Government”, to “a business proposition that creates independence”. This will eliminate donor-fatigue and build a system that is self-reliant, not fluctuating due to funding availability or lack thereof from the state.
Hussain has emphasised: “This is not a new way of thinking, it’s only a new way for Guyanese to think. We can sit in pools of self-pity, shedding tears and lamenting about the current state of affairs; or we can do something about it NOW.”