The sport of racing dinosaurs

Bud Selig’s refusal to use email tells us how major sport administrators are insulated from the realities of the modern economy.

The admission from Bud Selig, the US Major League Baseball Commissioner, that he has never used email raised lots of eyebrows around the world.

As Business Insider notes, Selig is 79 years old and there are plenty of other sports administrators challenged by technology so it’s understandable that the commissioner might not see the need to use a technology that became common twenty years ago.

Bud Selig’s story illustrates a much more important issue facing the professional sports industry, that it’s run on an aging business model.

The last fifty years has been very good for professional sport as television and Pay-TV networks bid sporting rights higher across the world.

In most nations, the dominant sport did extremely well as broadcasters fought each other; the Olympics, Soccer leagues in most of the world along with baseball, American football and basketball in the US, Cricket in India, Aussie Rules in Australia, Rugby in South Africa and New Zealand all became incredibly rich.

There weren’t many competitive pressures on the managements of those sport as the dominant sports rarely had any competition, it was a matter of just playing the TV executives off each other.

As a consequence, many sports are run by people with a somewhat exaggerated sense of privilege – they believe it’s their talent, not Rupert Murdoch’s or NBC’s money, that is responsible for their game’s riches.

Bud can dismiss the disbelieving gasps of people in the real economy because for most of his career the only competition he’s had to deal with was from his colleagues has he fought his way to the top job which he won in 1998.

In the real economy, there’s no such luxury. In fact, email may be becoming yesterday’s technology as social media and collaborative tools take over. David Thodey at Telstra and Atos’ Thierry Breton are two leaders in this field.

The danger for sporting organisations is that they are ripe for disruption, so far broadcast media rights have stood up well while revenues in other parts of the entertainment and publishing industries has collapsed. There’s no guarantee though that broadcast sports will remain immune from those changes.

Should disruption come along, even just in the form of sporting rights stagnating, many professional codes will suddenly find inefficiencies like Bud Selig are an expensive luxury.

While Bud’s story is amusing, in reality there’s little the rest of us can learn from how Major League Baseball’s senior executives run their offices.

Image of Bud Selig courtesy of bkabak through Flickr.

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Sports cars, the cloud and the need for broadband

How the V8 Supercar races use the internet and networks shows why businesses need reliable communications and the way organisations are using cloud computing.

How the V8 Supercar races use the internet and networks shows why businesses need reliable communications and the way organisations are using cloud computing.

My relationship with sports cars is similar to horses – I have a vague idea of which end water goes in and where not to stand.

So Microsoft’s invite to the Launceston V8 Supercars to showcase their Office 365 cloud service as the race’s official sponsor wasn’t expected but it was a good opportunity to see how a sports organisation uses modern technology.

Riding the cloud

V8 Supercars David Malone and Peter Trimble

At the opening media conference V8 Supercars CEO David Malone and Finance Director Peter Trimble described the IT problems the organisation had in the early days.

We were penny wise and pound foolish” said Peter about their small business system that couldn’t grow with the event.

To properly meet their needs V8 Supercars would have needed a bank of servers, cumbersome remote access software and a full time team of several IT staff for their scattered workforce and constantly changing locations.

With cloud services, they eliminated many IT costs while simplifying their systems.

That staff can now access documents regardless of location is a very good case study of where the cloud works well and understandable that Microsoft wanted to show off what their services can do.

Networking the cars

When challenged about the point of car racing, enthusiasts cite how the sport is a test bed for the motor industry.

The motor industry is one sector leading the internet of machines with one car manufacturing executive recently describing the modern motor vehicle as being a “computer platforms” on wheels.

Pit crews monitoring in car systems
Pit crews monitoring in car systems

Eventually we’ll see our cars connected to the net and reporting everything from the engine’s servicing needs to the driver’s musical tastes.

That’s reality in today’s high performance racing, both the drivers and the cars are in constant contact with the crews as sensors report everything from engine performance to the foot pressure the driver is putting on the accelerator pedal.

As continuous data feeds from the cars is essential to the teams the event has its own trackside network with receivers located along the course that are used for both vehicle telemetry and the video feeds from both car mounted and fixed cameras.

Owning the rights

In what’s becoming the future of sports broadcasting, the V8 Supercars organisers run their own camera crews and provide the feed to their broadcast partners and media outlets.

This allows them to control all the rights across TV, cable and online channels.

Having full control of the pictures also gives the V8 Supercars more revenue through signage and sponsorship by guaranteeing advertising placements which wouldn’t be available if they didn’t manage the feed.

Connectivity matters

v8-supercars-launceston-communications-cable
Spaghetti Junction as the various feeds come together

Getting the images out to the media and broadcast partners along with delivering the in car data to the racing teams is major challenge for organisers. The communications centres resemble a giant bowl of cable spaghetti as various groups plug into the network.

It’s no coincidence that part of the deals the V8 Supercar management strike with track owners and governments includes providing fiber and microwave links to the venue.

That single factor illustrates how vital communications links are to a modern sporting event.

Another important factor is that everything will be packed up and taken away. Following Launceston, the entire show is packed up and moved onto Auckland, New Zealand. This in itself is a major logistic challenge which would fail without good connectivity and reliable systems.

v8-supercars-launceston-truck-fleet
the fleet of trucks ready to move on

It’s easy to dismiss the V8 Supercars as a bunch of testosterone driven rev-heads, but the challenges in staging these complex events fifteen times a year shouldn’t be underestimated.

We also shouldn’t underestimate how important communication links are to any business. It’s why debates about the need for high speed internet services are last century’s discussion.

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