Technology entrepreneurs that are, literally, changing the game

The first few posts at Sport-Ups have discussed sports-related entrepreneurship with an eye on the fans. That's likely to be the subject of the majority of posts here, mostly because of information availability. The other side of new ventures in sports - that target the teams and leagues themselves - are obviously less public. Often, because of teams' preferences to keep their competitive advantages secret, many of these businesses fly completely under the radar.

A set of articles at ESPN.com today discussed the incredible innovation some of these companies are working on and implementing. Focused on baseball, these articles - by columnist Jayson Stark and former Washington Nationals General Manager Jim Bowden (ESPN Insider only, sorry) - discussed how innovative technology had aided in and revolutionized the ability to evaluate players. No longer is scouting a pitch or a fielder's range up to only the human eye, but computerized systems are now able to objectively provide data to assist.

The leader in this industry probably can't be referred to as a start-up anymore, after providing award winning technology for over ten years. SportsVision works with every sports league you could name, has three US offices, and there's a very good chance that any sports fan has interacted with some of their solutions, whether they know it or not. The company holds an annual conference, called the Pitch F/x Summit, which brings to light the results of new research and solutions on the horizon.

SportsVision does, though, provide an excellent model for any aspiring sports-related entrepreneur or innovator. There is clearly genius in their ranks, as evidenced by some of their mind-blowing solutions, but there are incredible technologists, mathematicians and statisticians, engineers and business minds throughout the demographic of "sports fans." While the work to develop such technology is undoubtedly quite difficult, there are sure to be countless intelligent sports fans interested in doing so, even if it were to begin as a hobby. With the development of great technology, SportsVision demonstrates the multitude of applications available - such as selling directly to the teams or leagues, to television networks for broadcast improvements, or simply offering consulting services with the data the technologies can gather.

That's not to say any of it is easy. These solutions are likely to be expensive, and the number of businesses comprising the group of professional sports teams and leagues is small. That means that one of two things is necessary for great success: 1) an excellent sales strategy and effectiveness, to make the most of the limited customer base, or 2) strong internal efficiency to keep costs low enough that others can be brought into the potential market, such as less profitable college or international teams.

All of that said, with the emphasis on gaining advantages by sports team, and the gigantic market of end-users that broadcasters and leagues need to appeal to, developing incredible technology for these customers is clearly an appealing, and potentially highly lucrative, goal for any sports entrepreneur. It doesn't hurt that a gifted technologist could have a ton of fun along the way, even if the goal begins as a simple hobby.

Finding a Niche: The Key to Digital Sports Start-Ups

A blog post on BusinessInsider.com caught my attention last year, and it's been sitting around my bookmarks since then.

"It's Time To Knock Down The Barriers To Digital Sports Startups" says Brian Litvack, who goes on to discuss the lacking start-up ecosystem in the sports world. He points to reasons such as the dominance of the big media players like ESPN and Yahoo, fickle audiences with constant high expectations, the difficulties of obtaining official team sponsorships, and the challenges of the typical advertising models for sustaining early-stage web start-ups.

Litvack calls upon the major sports leagues to help change this: "It would be interesting to see the NBA, NFL, or MLBAM develop a program to support and work with digital companies to enhance the sports fan experience. Creating a more favorable environment would be welcome by the tech community as there's no shortage of ideas, sports-crazed entrepreneurs, and potential in sports."

Of course that would be ideal, and seems like a win-win which would allow sports start-ups to see greater opportunities, and more engaged fans for the sports leagues. But calling upon established players like those to change is generally futile. While within those organizations, innovative spirit certainly lives - specifically with MLB Advanced Media and some its work - there probably isn't much hope of a wish like Litvack's coming to fruition.

This doesn't have to be doom and gloom for digital sports start-ups, though. While these barriers are certainly problematic, their impact is probably far bigger on start-ups attempting to cater to majorities, rather than those catering to niches. And if it's majorities a start-up is after, perhaps this isn't the space they should be entering (at first). As Litvack points out, the major players like ESPN, Yahoo and the league's themselves have saturated those markets pretty well.

Rather, it may very well be those niche start-ups that have the most potential in the current digital sports ecosystem. As popular as the likes of ESPN are, their popularity requires that they cater to a middle-ground of fans, leaving unmet needs of specific groups that don't fit in. Often, that's the die-hard fans. And the great thing about die-hard fans is that they're far more likely to spend to get their fix than the general consumer. That means advertising models don't necessarily need to be the default.

One of my favourite examples - as a self-described baseball nut - is Ottoneu. Ottoneu is a fantasy baseball game for the die-hard fan. The game is played "dynasty" style, allowing it to be enjoyed year round, with deep teams full of minor league prospects, and scoring is based off of "advanced statistics", known to be more accurate at judging a player's real value than those like RBIs and runs scored.

That may not tickle the interest of most, who are more than pleased to enjoy the fantasy games offered by ESPN and Yahoo. But for those looking for more, Ottoneu has that solution.

Better yet, they've perfectly identified their method of reaching that market, pairing with FanGraphs - one of the industry leaders in advanced baseball analysis, research and commentary - for their launch this past year.

Without a user base likely large enough to support sustainability through advertising, Ottoneu has logically been using a subscription model, charging as little as $9.99 for the full-year, per team. With the niche market salivating something different than the mainstream offerings, Ottoneu has seemingly had little trouble getting potential customers to spend.

Ottoneu is a classic example of the opportunities that do exist in the digital sports start-up landscape, despite the obvious challenges and barriers that are there. Hopefully I'll get a chance to chat a bit with Ottoneu's founder, Niv, who has always been open to discussing his business, about the results he's seen in the first year of Ottoneu and what his plans are going forward. It's a niche market, for sure, but like any start-up, a great product always has the chance to capture more attention or expand into more directions than it imagined.

If anyone has other examples of digital sports start-ups succeeding in a niche, or even finding surprisingly strong results reaching larger markets, I'd love to hear about them over Twitter or in the comments section.

The Classical and the new world of sports journalism

A lot is made of the web generation and its short attention span, and often for good reason. Is this a major factor contributing to the demise of print media? Are less and less people willing to take the time to sit and read, or is it just the inconvenience of the print form when compared to digital content?

The Classical, an online venture looking to get its feet off the ground, seems to be betting on the latter. With a crew of high quality, established writers, The Classical hopes to provide an interactive web publication geared around raising the bar for sports conversation, filled with "several regular columns, a host of quick random goodness,  and a fun, smart community talking about the sports world." This will include long form journalistic features and plenty of guest contributions.

One week into its quest, The Classical is gaining some ground. They've picked up 1,400 Twitter followers, 237 "likes" on Facebook, and most importantly at this point, have raised $17,896 on Kickstarter, from 379 backers. That's impressive.

With still 40 days to go to reach its $50,000 fundraising goal, it appears that the sports world may soon get the gift of more great sports writing.

If and when they do, however, The Classical won't be alone. 2011 has seen others in sports media attempt to challenge the conceptions of the web generation's attention span by focusing on journalistic quality and a raised-bar. Not only that, but they have done so with major corporate backing. Earlier in the year, Yahoo! launched The Post Game, while Bill Simmons and ESPN made some nice waves with the summer launch of Grantland.

It is believed that both websites have seen fairly strong early success. However, it's impossible to ignore the fact that they have done so with incredible corporate backing, allowing for some big name sponsors and, very importantly for a new ventures, access to ongoing capital.

It seems, at least, like The Classical will attempt to enter this space without that type of backing, though the success of similar competitors and their verification of this market could open up doors for The Classical to make a large corporate partnership of their own, or find some venture capital money.

What remains to be seen is if that's the direction The Classical chooses to take. There's certainly an argument to be made that association with a big brand could hinder journalistic freedom. For VC's to have significant interest, it's also likely that the website will need a major advertising focus, which may not be exactly the vision its founders have for a website of intelligent discourse.

There are, though, examples of middle ground. SB Nation, rich with blogs on each and every major sports team in North America, has managed to find terrific advertising partnerships, with major brands like Gilette, that while certainly visible, have hardly detracted from the content and interaction. Rather, with brand-related themes to posts on the individual blogs, it may have even assisted in creating unique topics and more discussion.

None of this is to say that The Classical will head in this direction, and the possibility remains that The Classical and its founders simply envision a self-sustained source of quality journalism, solid discussion and some extra income for its writers. As a fan of great sports writing, that would be great.

But at the same time, its clear that this surprising reemergence of sports journalism - be it through SB Nation, The Post Game, Grantland, and now The Classical - is still in its earliest stages. With the passion shared by the monstrous market of "sports fans" and the innovative approaches available in digital media, it certainly seems like possibilities - and growth - are somewhat endless.

Best of all, it's a space where competitive rivalry is minimal. There are likely more than enough advertisers willing to spend to be apart of an intelligent community with many frequent visitors. Plus, the emergence of any of these websites seems unlikely to hinder the potential of another, as the more members of the web generation that can be exposed to high-quality sports writing and discussion, the more likely they are to grow appreciation for the field and seek out more great work.

There are a lot of talented and intelligent writers and business minds entering this space, and if their belief that the web generation's patience-level hasn't quite run dry yet is true, it could open up a very exciting time for sports fans.

The Classical has some work to do to catch up, but in the meantime, plenty of its future competition are carving out a new, fascinating niche market ripe with opportunities and possibilities.

Welcome to Sport-Ups!

As you might expect from someone who just started a blog, I sort of like words. I'm a fan of them, you could even say. Like anything else, I even have my favourites. Here's two of them: sports and innovation.

Nothing too shocking. I mean, sports - how could you not like them? (Oh, I also like hyphens, as you may learn if you read this blog frequently.) Sports are pretty great. For the most part, they're completely insignificant. 20-or-so random men from around the world get grouped together to represent certain cities or states against groups representing others. They play, we cheer, we cry, we study, we obsess, we rant, we applaud, and we dream. Many psychologists and sociologists could carve out careers trying to figure out what it is about sports that put them at the centre of our hearts and minds. But there they are, in one form or another, keeping us distracted from the other perils of life for hours a day. How could anyone not like that?

And how would any of that be without innovation? If someone hadn't decided to throw a ball in a hoop, or invented the radio or the TV...  it's sort of scary even to think about.

Of course, innovation has given us a lot more than better ways to enjoy sports. We've seen medical breakthroughs, scientific discoveries, easier access to seeing the world, and simpler ways to live our every day lives.

The word "innovation" strikes me so much that I even decided to pursue an education in it. After finishing my Bachelors of Business Administration, I completed a Masters of Business, Entrepreneurship and Technology program from the University of Waterloo - easily one of Canada's most innovative institutions. The program offered me a chance to gain some expertise in the way these innovations come to life.Whether it's established companies remaining on the cutting edge or start-up ventures seeking there chance to change the world, there are few things I find more captivating than the entrepreneurial spirit.

Sport-Ups is the intersection of these worlds.

I plan to discuss a bunch of things in this space, from new product launches by the major sports players to new ventures from those hoping to wind up competing with them. Once in a while, I may even use this blog to rant about something else that's stuck on my mind in the sports or business world.

I also hope to get to know others with the same passions that I have and those hoping to become a part of this world. The easiest way to get in touch is probably through Twitter, and you can find me through the side bar on the right.

For now though, I'm going to pull-up Rogers on Demand Online for a live HD stream of today's Toronto Blue Jays game. Thank you, innovation!