SportsHero Ltd (ASX:SHO) has signed a three-year partnership with Footie Group Limited, owner of Ellevate Football, that includes the launch of a new subscription revenue product to be promoted to the three million users of SportsHero’s Indonesian football app, OlahBola.
The company plans to market the Ellevate Football partnership to Indonesian football clubs and their tens of millions of active supporters in a bid to drive revenue and new users to OlahBola.
Ellevate Football is a world-leading football talent scouting app that allows aspiring amateur footballers to showcase their skills to scouts from leading football clubs worldwide.
“Delighted to partner with Ellevate”
SportsHero’s CEO Tom Lapping said: “We are delighted to partner with Ellevate Football to bring their world-class talent scouting platform to the large football passionate Indonesian market.
“Ellevate Football’s functionality is a strong and complementary fit with our highly successful OlahBola app.
“The new Ellevate Football offer will allow OlahBola to introduce a unique and valuable opportunity for the substantial number of young up-and-coming Indonesian football players to be discovered.”
Potential revenue opportunity
Under the binding terms sheet, SportsHero will have exclusive access to Ellevate Football’s technology and intellectual property for use in the Indonesian market.
SportsHero will incorporate Ellevate Football’s functionality into its rapidly growing OlahBola app and once pricing is finalised, a recurring subscription revenue product for parents of talented young junior footballers will be launched to provide access to Ellevate Football’s exclusive scouting and football development programs.
Ellevate Football and SportsHero will share equally all subscription revenue, advertising and sponsorship revenue generated from the three-year partnership, and both parties have agreed to include an option to extend the partnership for a further three-year term.
Lapping said: “We are also excited by the potential revenue opportunity of a recurring subscription revenue product that will be marketed to OlahBola’s growing user base of over 3 million and the potential introduction of new brand partners and advertisers who are targeting this young Indonesian demographic.
“SportsHero will promote Ellevate Football to the Football Association of Indonesia and will seek to obtain their endorsement, along with other Indonesian football associations.”
Partnership overview
The key terms of the agreement are:
- Ellevate Football will operate the app in Indonesia in an exclusive three-year partnership with SportsHero on the OlahBola platform under the brand name ‘Ellevate Football’;
- Ellevate and SportsHero will share equally all Indonesian subscription, advertising and sponsorship revenue generated by the app and will provide all software and support for the app;
- SportsHero shall make recommendations and introductions of Indonesian personalities, talent scouts and marketing entities and it will assist in localising the app in Indonesia in such areas as Indonesian translations and integration with Indonesian payment gateways;
- SportsHero will promote the app to the Football Association of Indonesia and seek to obtain their endorsement along with other Indonesian football associations; and
- The app is expected to be launched in Indonesia at the end of March 2021 and both parties will use reasonable endeavours to introduce and deliver advertising and sponsorship opportunities for the app.