Satyam eyes $20mn revenues from sports vertical

With the multi-million Federation Internationale de Football Association (FIFA)’s World Cup deal already in its kitty, Satyam Computer Services Limited, the country’s fourth largest software exporter, is now gunning for more sporting events.

The company is upbeat on the growing IT opportunities in sports, and is hopeful of garnering targeted revenues of $20 million (approximately Rs 92 crore) from its sports vertical by the end of the current financial year, Sridhar Maturi, head (sports marketing – global marketing and communications), Satyam, told Business Standard.

“We are coming from the top down. We are seriously looking at world sporting events such as the 2010 Commonwealth Games, 2016 Olympics and the Asian Games. IT requirements for these events will be floated shortly and we will take a call on them,” he said.

Satyam, which incorporated its sports vertical last year, is the first Indian company to sign up as a sponsor and official IT provider for the next two editions (2010 and 2014) of FIFA World Cup.

It will be offering value-in-kind (products or services provided by sponsors as part of sponsorship contracts) from its Bangalore and Chennai centres besides onsite support from its Zurich facility as the event approaches. At present, 100 Satyam professional are working on the FIFA engagement.

With scope to extend the partnership further with FIFA based on its performance, Satyam had been entrusted with the task to develop the core IT event management system, accommodation and hospitality management including for the local organisation committees of South Africa and Brazil over the next seven years. It is also setting up and managing 240 self-help ticketing terminals in South Africa to distribute nearly 4 million tickets.

Sridhar, who captained the Hyderabad Ranji team for six years and had featured in the probables list for the 2002-03 national cricket team, said the company would use the FIFA deal as a launch vehicle to expand its scope beyond football.

“Formula One and basketball are the other potential interests. We have already opened up discussions with the National Basketball Association (NBA) and a couple of F1 properties in the US,” he added.

Over 200 television channels have lined up to clinch broadcasting rights for the FIFA events. Satyam is looking at providing its services to at least 20 channels that will air 64 FIFA matches.

The 2006 FIFA edition, held in Germany, hit 24 billion eyeballs, a 30 per cent growth over the previous edition. The next two editions are expected to maintain the same growth momentum, he said.

Media channels are at the higher end of technology by themselves. Satyam plans to add graphic simulations to football, a la cricket, thereby enriching the viewer’s experience at home, he said.

“Our idea is to create intelligent stadia, an integrated suite of solutions to bring the entire sporting as a unique experience. We intend to approach a couple of sports federations in Europe shortly,” Sridhar said.