Sports

Interview with Mr. Mitsuteru Tsuchiya of KPMG Japan “Values ​​brought about by sports and how to utilize them” –Sports Navi

First of all, please tell us about Mr. Tsuchiya’s career so far.

Currently, I am working at Azusa Audit Corporation, which is a part of KPMG Japan. KPMG Japan is an accounting firm that mainly develops three service lines: audit, tax, and advisory, and Azusa Audit Corporation focuses on audit work that guarantees whether the financial statements of the company are appropriate. increase.

After joining an audit corporation in 1998 and engaging in audit work such as manufacturing, retail, and information and telecommunications, I was interested in venture companies that would create new businesses from about the fifth year. I was fascinated by the idea of ​​creative management, so I started to shift my focus to auditing and advisory work to support the listing of stocks. And while supporting venture companies, I was also involved in M ​​& A and advisory work related to corporate revitalization, and I have experienced a wide range of work, and that career is now very useful in sports business work.

I was appointed as a partner at an audit corporation in 2015, but I thought that I could take this opportunity to reconsider my career and use my knowledge and experience for my favorite sport, so I am challenging among the audit corporations. It was a new initiative, but I participated in the launch of the Sports Advisory Room. Since many sports organizations are small and medium-sized enterprises and venture companies, we also provide support services for strengthening business management (governance, compliance, accountability) to sports teams, leagues, and competition organizations, as well as M & A and business revitalization. Regarding the development of stadiums and arenas, we have expanded services specialized in the sports business, such as providing advisory services related to business planning.

Currently, in addition to activities within the audit corporation, participation in various sports business-related committees such as the Japan Sports Agency, the Ministry of Economy, Trade and Industry, and sports competition organizations, cooperation in the preparation of survey reports * published by the Japan Sports Agency, etc. Has been appointed as a mentor for INNOVATION LEAGUE this time, and is working extensively with the aim of contributing to the development of the sports business.

* Visualization and quantification survey of social value brought about by stadiums, arenas and sports teams-Case study for Todoroki Athletics Stadium and Kawasaki Frontale-
https://www.jleague.jp/sharen/news/1655/

Are there any cuts or areas that the audit corporation found while engaging in the sports business?

There are various advanced areas in developing new markets, but I personally find it interesting for audit corporations to step into the area of ​​sports business. Of course, there are many listed companies among our clients, and in many cases the clients are the parent companies of sports teams, as well as the fact that they are attracting a lot of attention as a business in the trend of “sports growth industry”. Being aware of the movements in the area also leads to deepening client relationships.

What made Tsuchiya-san come into contact with sports?

I have loved sports in general since I was a kid, playing baseball and swimming in elementary and junior high school, and playing rugby in high school and college. But my favorite thing about watching games is soccer, and I like it so much that I go to see the World Cup locally (laughs). Starting from the 2002 Japan-Korea tournament, the 2006 Germany tournament, the 2014 Brazil tournament, and the 2018 Russia tournament went to the site. I was wondering if I could connect my favorite things with what I had cultivated as an accountant on the return flight of the 2014 Brazil Games, and at that time I participated in the launch of the in-house sports advisory room.

Please tell us about the areas of the sports business that you are currently focusing on.

First, in the Japan Revitalization Strategy announced in 2016, the government has listed the growth industrialization of sports as one of its growth strategies, and has listed three areas to focus on while expanding the scale of the sports market. First of all, we sought to see if we could contribute to the three areas of focus: “stadium and arena reform,” “securing management personnel and strengthening the business management system,” and “collaboration with IT technology and other industries.” I started the activity.
However, on the other hand, even if you make a proposal to a sports team, there are many cases where you cannot afford to pay for a company like us, although there are needs, and due to such circumstances, not only the sports team but also its sponsors and parent companies I thought that I had to think about services including the surrounding stakeholders such as the national government and local governments, so I continued to develop my business.

In the meantime, looking at the relationship between the sports team and the sponsor / local government, if there is a person in charge who likes sports on the sponsor / local government side, things are sensitive and things go forward at first. However, when the discussion goes to the decision-making layer such as the manager of the sponsor company, the governor of the local government, the mayor, etc., the part “Why should it be done? What kind of effect is it?” Cannot be explained firmly and approval is not given. Was often seen. When I thought about the cause, I felt that the value of sports was not properly recognized or was evaluated very low. In addition, I have come to think that the purpose of sports is not suitable for the sports side and its support side, and that common recognition and common language have not been achieved.

According to the “Sports Value Calculation Model Survey” report * released by the Development Bank of Japan in March 2020, there are three major values ​​that sports bring, one of which is value calculation from financial information such as financial statements. “Financial value”. The second is “potential financial value”, which is the value of sports as an intangible asset that is not shown in the financial statements. For example, intangible things such as advertising exposure effect, brand power, and various rights may be of high value in the sports business. The third value is “social value”, and since sports have a public good aspect, there is a lot of value created in the community and society. For example, various community contributions such as revitalizing the local economy through sports, educating local children, helping to promote the health of local residents, and the stadium functioning well for disaster prevention in the town. I have. Currently, there is a trend in society as a whole to promote activities that contribute to the community and society, such as the SDGs, and by successfully visualizing and quantifying the three values, sports can be used as a hub to create and revitalize connections with the community and society. I think we can do it.

* Cooperation with “Sports Value Calculation Model Survey” –KPMG Japan
https://home.kpmg/jp/ja/home/media/press-releases/2020/02/sport-2020report.html


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