ePrivacy and GPDR Cookie Consent management by TermsFeed Privacy Generator Gen Z in sports - how to capture the attention of the disengaged?

Gen Z in sports - how to capture the attention of the disengaged?

24th November 2022

Gen Z in sports - how to capture the attention of the disengaged?

This September, I had the opportunity to be part of an interesting panel discussion at this year’s World Football Summit in Seville. The conversation was initiated around Gen Z’s content consumption & distribution and how they want to experience modern sports. The topic is one that is frequently discussed and is usually subject to many assumptions. The topic is generally discussed by people from older generations, making assumptions about Gen Z behavior without any research to back their opinions. Conversations around the needs of Gen Z are often based on conference-echoing: repeating what someone else once said at a conference. Fortunately, the large global consultancy firms do a lot of research around the characteristics of Gen Z. Understanding this generation provides the foundation on responding in an appropriate manner. This article will summarize the most important findings and how the sports industry could appropriately respond to changing demands by Gen Z.

Important note: all the research has been conducted before Russia invaded Ukraine in February 2022 which would significantly impact results like mental health and environmental issues.

Conversations around the needs of Gen Z are often based on conference-echoing: repeating what someone else once said at a conference

 

Gen Z characteristics

Before diving into the details of this article, it is important to start by identifying who belongs to Gen Z. Although some overlap between generations is possible, generally Gen Z is born after the mid 90’s until the beginning of 2010’s. Roughly between when Ajax won the Champions League and when Bayern Munich and Dortmund played the Champions League final. Therefore, people in Gen Z are roughly between 13 and 25 years old at the time of writing. Generations surrounding Gen Z are the older Millennials (beginning 80’s-mid 90’s) and the younger Generation Alpha (after early 2010’s). People in Gen Z are highly educated, and generally more highly educated than their parents. Logically, their income is significantly higher.

An interesting observation has been made around Gen Z’s interests in sport in the last decade as well. The European Club Association’s Fan of the Future report states that Gen Z have far less interest in football compared to previous generations (ECA, 2020). One of the reasons mentioned is that the competition for attention from other entertainment sources is fierce and thus Gen Z needs to make choices. The New York Times reported earlier that only 23% of Gen Z said they were passionate sports fans compared to 42% of Millennials. In fact, 27% said they disliked sports altogether. This provides a problem as sports fandom is formed in the early years (The New York Times, 2022). If an interest in sports is not triggered during these years, it is likely to never be formed. Therefore, a strategy targeted to Gen Z is a strategy for future interest.

Before diving further into the football context, it is important to better understand Gen Z’s general motivations and considerations to life. This article is built as follows: first, Gen Z’s standpoint towards an item is discussed. Then, some tips on how to respond as a sports organization are shared. This is a list of suggestions and is by no means exhaustive.

 

Gen Z in general

Sports organizations typically use a technology-based “spray-and-pray” approach to engage with Gen Z, whether it’s via the metaverse, NFT’s or e-sports, but additional research could drastically increase the scope and focus of efforts in engaging Gen Z,  since their mindset differs substantially from those of preceding generations. A small list of events happening in Gen Z’s formative years:

Needless to say, Gen Z’s fully globalized mindset has resulted in them  gaining full access to all the world’s problems. Since Gen Z is always-on and is in constant connection with the latest news (50% of the news consumptions happens via social media of which 15% via TikTok) (McKinsey, 2022), they have many reasons to be worried. As PwC puts it: Gen Z is not very different to Millennials, they share a need for instant gratification. From a customer experience perspective, Gen Z is also more loyal to brands and companies, they expect a mobile experience first and show higher feel for design (PWC, 2018). This explains many characteristics of Gen Z which are fundamental to understand if you, as a sports organization, wish to engage with this fan segment. This is an area where all the reports from EY, Deloitte, PwC and McKinsey agree: give Gen Z more influence and help them in shaping the future.

 

Psychological well-being

For Gen Z, health goes further than gym visits and healthy eating habits. Mental health hygiene is also a key well-being consideration for Gen Z. All reports agree that Gen Z suffers from severe mental health issues. This ranges from worries about financial situation, the environment and even their own careers. This can be explained. Consider this: according to your parents (early Millennials or even Gen X) you have all the power to shape your own future, design your own life and become whatever you want, as long as you put in the effort. That puts an immense amount of pressure on Gen Z. It can be read as the reason for not being successful is your own fault, regardless of circumstances. And this has affected how Gen Z handles the pressure. According to EY, more than 1/3rd of Gen Z says that they  usually or almost always experience feelings of anxiety  or depression. The most commonly mentioned fears are performing bad on an exam, climate change and other mental health issues (EY, 2022). Other concerns are cost of living and unemployment (Deloitte, 2022). As EY states, "Gen Z carries the weight of the world on its shoulders". What helps Gen Z in addressing mental-health is having role models. In the past,  top Gen Z athletes like gymnast Simone Biles tennis player Naomi Osaka Gen Z have publicly spoken out having suffered from mental health issues. While professional athletes may get professional guidance in solving their problems, this is not the case for everyone. In fact, Gen Z is quite unlikely to seek professional help to solve their issues regarding mental health and substance disorder issues due to affordability. Gen Z falls into the least engaged segment of health-care consumers compared to other generations (McKinsey, 2022). Instead, they seek out for self-diagnosis methods and cures via social media and other digital tools. This does not come as a surprise since Gen Z also use these same tools to collect news (McKinsey, 2022). 

“Gen Z carries the weight of the world on its shoulders” - EY

Interestingly, Gen Z takes a different approach to their mental health issues. They are a lot more in touch with their emotions: thanks to social media influencers, the taboo of talking about mental well-being is far lower compared to previous generations. It has made Gen Z more comfortable to discuss these issues.

 

How to respond as a sports organization

Knowing that Gen Z suffers from mental health issues AND they are more likely to self-diagnose, a huge opportunity exposes itself to sports organizations. The answer: creating more relevant content:

 

Political

Gen Z makes up 16% of the population and will grow to a staggering 30% in 2030, making it the largest consumer cohort alive (Cushman & Wakefield, 2020). That also means they are not yet the voting majority which means their democratic political influence is limited. Yet, they are the generation who are expected to take care of the aging population, to fight the worsening environmental conditions (more on that later) and to cope with increasing financial and political instabilities. It has made Gen Z stressed and frustrated. According to EY, Gen Z is largely untrusting to the world around them as they have seen little change over the last decade. They’ve seen the world address many concerns but that has triggered very few solutions. For example, 72% of Gen Z’s agree that the gap between the richest and the poorest is widening. Also, only 11% of Gen Z believes that their country is highly committed to tackling climate change (Deloitte, 2022). Combined with the limited voting power Gen Z has during elections, it has left them largely distrusting institutions and society (EY, 2022). This distrust has triggered an interesting characteristic: Gen Z shows high engagement to the local community by purchasing locally produced and sourced goods which houses important fan engagement opportunities for sports teams.

“Gen Z has inherited a world on fire”- EY

Fortunately, Gen Z is also ready to embody change needed to ensure a better tomorrow. Gen Z has inherited a world on fire but is passionate to take action. The majority of Gen Z (72%) thinks it is  either very or extremely important to change what is wrong in the world (EY, 2022). This sense of activism defines the generation and provides opportunities for sports organizations to get Gen Z engaged.

 

How to respond as a sports organization

Career and behavior

Gen Z has a different approach to what employment means to them. Their number one priority is to actually enjoy what they do. Gen Z finds it important that their employer is aligned with their personal beliefs and that they enjoy the work that they do. 64% of Gen Z says it is important that their employer shares their values. However, only 45% agrees that businesses have a positive impact on society (Deloitte, 2022). It may explain why 40% of Gen Z has rejected jobs in the past when the corporate values did not align with their personal beliefs. Also 40% of Gen Z says they are likely to leave their jobs in the next 2 years (McKinsey, 2022). These numbers expose two very important elements. Firstly, it explains a labor market movement called The Great Resignation where hordes of employees are quitting their jobs. If jobs don’t align with Gen Z’s personal values, they move on or don’t even enter a company. It also exposes why companies should have a strong CSR-profile: not only because Gen Z are their current and future customers but also as Gen Z are the current and future workforce. Secondly, the reason behind these high workplace mobility numbers: dissatisfaction with salaries. Almost half of Gen Z’s live from paycheck-to-paycheck and worry that they won’t be able to cover their expenses. This has resulted in 43% of Gen Z’s having a second job (Deloitte, 2022).

More recently, Gen Z has started to respond to these circumstances. On TikTok the term quiet quitting has become mainstream, describing doing nothing more than the work goals require. Combined with the mental health issues as discussed earlier, it seems a response to the hustle-mentality which has defined its previous generations (McKinsey, 2022).

Fortunately, solutions are also able to be identified. Almost 75% of Gen Z’s prefer hybrid or remote work options. No more than 19% say that always working in the office is their preferred option. Yet, the main motivators for Gen Z to work for their current organizations (and thus motivators for accepting a job) are good work/life balance (32%), appropriate learning and developing opportunities (29%) and higher salary (25%) (Deloitte, 2022). McKinsey also supports these findings  and adds ‘meaningfulness of work’ to the list of future job requirements (McKinsey, 2022).

 

How to respond as a sports organization

 

Environmental

The environment: one of the main topics of Gen Z’s concerns. Many Gen Z’s are not happy about how the world is fighting the environmental battle. 75% of Gen Z believe the world is at a tipping point when it comes to responding to climate change. More worryingly, less than half (44%) of Gen Z’s are optimistic that the planet can be saved. It explains why almost 90% of Gen Z’s is making some form of effort to protect the environment. This varies from using recyclable mugs, buying second-hand clothes and items and buying food that is locally or organically produced (Deloitte, 2022). Simultaneously, 75% always recycle. Also, 60% finds it extremely important to buy from brands that take action to preserve the environment (EY, 2022). In summary, Gen Z shows what EY calls Intentional Consumerism. Gen Z gravitate towards brands that share their values, while quickly dismissing those that don’t. In a sports team context, it may be difficult to pick a new team, but it could partially explain why Gen Z is skipping stadium visits more often compared to their previous generations.

Large companies still have a long way to go to play their part. Only 15% of Gen Z’s strongly agree that large companies are taking substantive actions. And as mentioned before, only 11% believes their countries are doing enough. When it comes to employers, Gen Z’s are slightly more optimistic. 18% feels their employer is strongly committed to fight climate change. This may be the result of the activism by Gen Z: almost half has put pressure on their employer to take action. And when the employers listen, Gen Z’s show more loyalty to these employers. Gen Z would like to see their employers invest more on activities like banning single-use plastics at the workplace, offering sustainably oriented employee benefits, providing training on how to make a positive impact and providing incentives to make better environmental choices (i.e. carbon footprint competition with colleagues) (Deloitte, 2022). When it comes to nutrition, Gen Z is also paying closer attention. The younger consumers are the ones changing their eating habits in favor of the environment. 60% of Gen Z has changed what they eat with 20% having undertaken major changes in their eating habits (McKinsey, 2022).

 

How to respond as a sports organization

 

Financial

Finances are also a major concern for Gen Z. Gen Z has moved away from a mindset of fame-and-fortune but rather is motivated to work hard to shape a secure, stable, and impactful future. In general, 42% of Gen Z rate that becoming rich is either very or extremely important, a clear distinction is made here for Eastern markets (China and Japan). In total only 20% of Gen Z is looking to become famous. Gen Z has become a lot more conservative: 77% of Gen Z believe it is very or extremely important to save money to buy or do things in the future (EY, 2022). As EY states, this is producing a generation of savers. Deloitte concludes that finances is the top reason why Gen Z is so often feeling stressed, with concerns about the long-term financial future (47%) and day-to-day finances (42%) as main factors (Deloitte, 2022).

It perhaps explains the rising popularity of the FIRE-movement (Financial Independence, Retire Early). Although mostly popular with millennials, Gen Z has also joined the bandwagon with 25% wanting to leave the workforce earlier than the standard retirement age (Goldman Sachs, 2021). It triggers a behavior of constant self-negotiation on how to manage their finances. And it seems that Gen Z is more willing to take financial risks to achieve financial success. Thanks to the recent gamification of trading and the rise of financial influencers, 43% of Gen Z has held cryptocurrency at some point. Though, most Gen Z’s have already stepped out (PYMNTS, 2022). It defines Gen Z’s position towards finances: willing to jump onboard hype trains but as easily letting it go again. An explanation could be that trading in crypto’s have left Gen Z with significantly less disposable income, only increasing their financial worries.

Altogether, it seems like Gen Z is trying to find its way to financial literacy with a few challenges on its path (Forbes, 2022). This can create great opportunities for sports clubs to jump the bandwagon and help Gen Z to become more financially literate.

 

How to respond as a sports organization

Overall, it is challenging to get Gen Z engaged. They are demanding and already wanted improvements yesterday rather than today. Similar to how the blog started, ECA has already concluded that Gen Z has to spread its time over many different entertainment sources, partially ditching football interest. Unless football clubs use the available information to drastically re-engage this generation, a permanent gap could occur. Because of what would happen if this Gen Z, with its declined interest in sports, grow up to become parents and passes that declined sports interest onto their children? It will become increasingly more difficult to get fans to the stadiums or engaged in the first place. Therefore, it would be wise to start setting up strategies around Gen Z (like we had at my old club AZ Alkmaar) to keep them engaged.

 

 

Bibliography

BBC. (2022, February 2). How green are Premier League clubs & what are they doing to help? Retrieved from BBC: https://www.bbc.com/sport/football/60196764

Cushman & Wakefield. (2020, July 1). DEMOGRAPHIC SHIFTS: THE WORLD IN 2030. Retrieved from Cushman & Wakefield: https://www.cushmanwakefield.com/en/insights/demographic-shifts-the-world-in-2030

Deloitte. (2022, January 1). The Deloitte Global 2022 Gen Z & Milennial Survey. Retrieved from Deloitte: https://www2.deloitte.com/content/dam/Deloitte/at/Documents/human-capital/at-gen-z-millennial-survey-2022.pdf

ECA. (2020, August 1). Fan of the Future. Retrieved from ECA Europe: https://www.ecaeurope.com/media/4802/eca-fan-of-the-future-defining-modern-football-fandom.pdf

  1. (2022, September 22). How Gen Z around the globe is reshaping societal norms. Retrieved from EY corporate website: https://www.ey.com/en_us/consulting/gen-z-society-change-agents/how-gen-z-around-the-globe-is-reshaping-societal-norms

Forbes. (2022, September 13). Why Financial Literacy Isn’t Gen Z’s Sweet Spot—Yet. Retrieved from Forbes: https://www.forbes.com/sites/markcperna/2022/09/13/why-financial-literacy-isnt-gen-zs-sweet-spot-yet/?sh=50e0b4d2627c

Goldman Sachs. (2021, December 8). Goldman Sachs Asset Management Releases Retirement Survey & Insights Report Showing The Changing Realities Of Retirement Planning In The US. Retrieved from GSAM Corporate website: https://www.gsam.com/content/gsam/us/en/advisors/about-gsam/news-and-media/2021/Goldman_Sachs_Asset_Management_Retirement_Survey_and_Insights_Report_2021_Press_Release.html

McKinsey. (2022, January 14). Addressing the unprecedented behavioral-health challenges facing Generation Z. Retrieved from McKinsey: https://www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/addressing-the-unprecedented-behavioral-health-challenges-facing-generation-z?cid=other-eml-mtg-mip-mck&hlkid=bd108aa77ad44fb89df16cbe86f93cfa&hctky=13848387&hdpid=5a7e4f26-1

McKinsey. (2022, October 5). Hungry and confused: The winding road to conscious eating. Retrieved from McKinsey: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/hungry-and-confused-the-winding-road-to-conscious-eating?stcr=545A8DC122254AD78D66C2B0D97697C9&cid=other-eml-dre-mip-mck&hlkid=d01abb6fe7454fd687bbe342d4b4bc06&hctky=13848387&hdpid=9

McKinsey. (2022, 08 30). McKinsey newsletter. Retrieved from Mind the Gap: https://www.mckinsey.com/~/media/mckinsey/email/genz/2022/08/30/2022-08-30b.html

McKinsey. (2022, July 13). The Great Attrition is making hiring harder. Are you searching the right talent pools? Retrieved from McKinsey: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-great-attrition-is-making-hiring-harder-are-you-searching-the-right-talent-pools

McKinsey. (2022, 07 05). Where does Gen Z get their news? Retrieved from McKinsey: https://www.mckinsey.com/~/media/mckinsey/email/genz/2022/07/05/2022-07-05b.html

PWC. (2018, Januar 1). https://www.pwc.com/us/en/advisory-services/publications/consumer-intelligence-series/pwc-consumer-intelligence-series-customer-experience.pdf. Retrieved from PWC: https://www.pwc.com/us/en/services/consulting/library/consumer-intelligence-series/future-of-customer-experience.html

PYMNTS. (2022, September 13). Gen Z Turning Away from Crypto, PYMNTS Studies Suggest. Retrieved from PYMNTS: https://www.pymnts.com/cryptocurrency/2022/gen-z-turning-away-from-crypto-pymnts-studies-suggest/

The New York Times. (2022, January 12). Pro Sports Leagues Are Chasing Gen Z Where It Plays. Retrieved from The New York Times: https://email.mckinsey.com/T/v700000181ee4afaad8c93a56e96c65220/61cae074b825467e0000021ef3a0bcd3/61cae074-b825-467e-9fa3-2e52fd7de7fd?__dU__=v0G4RBKTXg2GsTlMa8YbE0npiPHb7Gzq29ujr-mrJsl6bcn0E30HNSquNCCrd1XNAz