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© 2007 McGraw-Hill Higher Education. All rights reserved. Sports in Society: Issues & Controversies Chapter 11 Sports and the Economy: What Are the Characteristics.

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Presentation on theme: "© 2007 McGraw-Hill Higher Education. All rights reserved. Sports in Society: Issues & Controversies Chapter 11 Sports and the Economy: What Are the Characteristics."— Presentation transcript:

1 © 2007 McGraw-Hill Higher Education. All rights reserved. Sports in Society: Issues & Controversies Chapter 11 Sports and the Economy: What Are the Characteristics of Commercial Sports?

2 © 2007 McGraw-Hill Higher Education. All rights reserved. Conditions for Emergence & Growth of Commercial Sports A market economy Large, densely populated cities People who have time, money, transportation, & media access Large amounts of capital Culture emphasizing consumption and material status symbols

3 © 2007 McGraw-Hill Higher Education. All rights reserved. Class Relations and Commercial Sports The preferences and priorities of people with power and wealth often influence which sports are commercialized – for example: Golf is enjoyed by wealthy and powerful; it receives much TV coverage despite low ratings Football reproduces an ideology that privileges men & celebrates masculinity

4 © 2007 McGraw-Hill Higher Education. All rights reserved.

5 Why have sports become so popular in society today? The quest for excitement Emphasis on success ideology Widespread organized, competitive youth sports Widespread media coverage

6 © 2007 McGraw-Hill Higher Education. All rights reserved. Economic Motives and the Globalization of Commercial Sports Sport organizations look for global markets FIFA, the NFL, the NBA, etc. seek global media exposure and expansion Corporations use sports as vehicles for global expansion One goal is to make money Another goal is to sponsor enjoyment and pleasure to establish ideological outposts in the minds of people around the world

7 © 2007 McGraw-Hill Higher Education. All rights reserved. Figure 11.1 CEOs and owners often play games that ignore athletes

8 © 2007 McGraw-Hill Higher Education. All rights reserved. Ideological Outposts in Action: Branding Sports Sport places have been branded Sport events have been branded Athletes have been branded -Corporate branding is now accepted by many people as necessary, non-political, even natural Question: Isnt that sure sign of outposts in action?

9 © 2007 McGraw-Hill Higher Education. All rights reserved. There was nothing we could do.

10 © 2007 McGraw-Hill Higher Education. All rights reserved. Commercialization and Changes in Sports Changes may occur in the: Structure and goals of sports Orientations of athletes, coaches, and sponsors Organizations that sponsor and control sports

11 © 2007 McGraw-Hill Higher Education. All rights reserved. Changes in Structure and Goals Rule changes are made to make action more exciting, understandable, and profitable by Speeding up action Increasing scores and scoring chances Balancing competition Maximizing dramatic moments Providing commercial breaks GOAL: Total Entertainment Experience

12 © 2007 McGraw-Hill Higher Education. All rights reserved. Why did the XFL fail? Too much commercialization, or not the right kind?

13 © 2007 McGraw-Hill Higher Education. All rights reserved. The Origins of Heroic Action in Sports Commercial sports are ENTERTAINMENT Commercial entertainment depends on attracting a mass audience Members of a mass audience lack technical knowledge about a sport Entertaining people without technical knowledge requires heroic action actions

14 © 2007 McGraw-Hill Higher Education. All rights reserved. Commercial Sports Involve A Shift From Aesthetic to Heroic Orientations Aesthetic Orientations Beauty and pleasure of movement Emphasis on mastery of technical skills Willingness to explore limits Commitment to staying involved Heroic Orientations Danger & excitement of movement Emphasis on style & dramatic expression Willingness to go beyond limits Commitment to success of sponsor

15 © 2007 McGraw-Hill Higher Education. All rights reserved. Shifting orientations: what happens when there is a need to entertain a mass audience

16 © 2007 McGraw-Hill Higher Education. All rights reserved. The Promotional Culture of Professional Wrestling Events are dramatic spectacles Players display carefully constructed personas Emphasis is on heroic action Storylines are simple; they emphasize domination, gender differences, & capricious bosses

17 © 2007 McGraw-Hill Higher Education. All rights reserved. Spectator Appeal in Sports Depends on: The uncertainty of an events outcome The stakes associated with an event The anticipated display of excellence, heroics, or dramatic displays by participants

18 © 2007 McGraw-Hill Higher Education. All rights reserved. Sport Organizations With commercialization: Control shifts away from athletes; decisions are less likely to reflect their interests Control shifts toward owners, corporate sponsors, advertisers, media personnel, marketing & publicity staff, professional management staff, accountants, & agents Athletes accept the decisions of these people, because their financial interests are at stake

19 © 2007 McGraw-Hill Higher Education. All rights reserved. Owners, Sponsors, & Promoters of Professional Sports When the diversity of professional sports is taken into consideration: Owners are a diversified collection of people – usually white men. Profits may be great in leagues where monopoly control and TV revenues are high; but losses may be great under other conditions.

20 © 2007 McGraw-Hill Higher Education. All rights reserved. This looks extreme, but hasnt it already happened? "

21 © 2007 McGraw-Hill Higher Education. All rights reserved. Advantages of Monopoly Team owners in the major mens pro sports have established monopolies enabling them to: Control athlete movement Negotiate high media rights fees Prevent the formation of new teams Share revenues

22 © 2007 McGraw-Hill Higher Education. All rights reserved. Forms of Public Assistance for Team Owners Use of public funds to construct and maintain facilities Deduction loopholes to use on tax returns Tax breaks and rebates Control of revenues in public facilities

23 © 2007 McGraw-Hill Higher Education. All rights reserved. Stadium Subsidies: Arguments For 1. A stadium and team create jobs 2. Stadium construction infuses money into the local economy 3. Team will attract other businesses 4. Team will attract media attention that boosts tourism, product sales and economic development 5. Team will create positive psychic and social benefits

24 © 2007 McGraw-Hill Higher Education. All rights reserved. Stadium Subsidies: Arguments Against 1. Stadium jobs are seasonal and low paying except for athletes & execs 2. Construction materials often are purchased outside the local area 3. New businesses often are franchises headquartered in other cities 4. Discretionary money is limited and may be shifted away from other businesses 5. Promoting macho orientations does not benefit everyone in a community

25 © 2007 McGraw-Hill Higher Education. All rights reserved. Sources of Income for Team Owners Gate receipts/ticket sales Sale of media rights (TV/radio) Stadium revenues Leases on club seats and luxury boxes Concessions/parking/leasing spaces to others Sale of naming rights and site advertising Special events/concerts/meetings Licensing fees and merchandise sales

26 © 2007 McGraw-Hill Higher Education. All rights reserved. Figure 11.5 New stadiums resemble shopping malls.

27 © 2007 McGraw-Hill Higher Education. All rights reserved. Amateur Sports Are self-funded and dependent on corporate sponsors, or funded through a central government sports authority Are controlled by organizations with an interest in two things: Power Money

28 © 2007 McGraw-Hill Higher Education. All rights reserved. Legal Status of Athletes in Pro Team Sports Forms of the reserve system have been used to restrict the freedom of athletes to play where they wish Players associations and unions have challenged this system and struggled for free agency Free agency has been achieved to varying degrees in major team sports Labor rights for athletes in minor sports are limited

29 © 2007 McGraw-Hill Higher Education. All rights reserved. Legal Status of Athletes in Individual Sports Varies greatly from sport to sport and athlete to athlete Status often depends on what athletes must do to support their training and competition Status may be partially protected by professional associations formed by the athletes

30 © 2007 McGraw-Hill Higher Education. All rights reserved. Income: Team Sports The large majority of pro athletes make limited income The super-contracts and mega-salaries of a few athletes have distorted popular ideas about athlete income Income among top athletes has risen recently because Legal status and rights have improved League revenues have increased

31 © 2007 McGraw-Hill Higher Education. All rights reserved. Professional athletes in the major mens spectator sports did not earn exceptionally high salaries until after 1976 when they could become free agents and sell their skills to the highest bidding team. In 1950 an average NBA player was only slightly more than the median U.S. family income; in 2004 it was 84 times higher than the median US family income! At the same time, the average salary of a WNBA player was nearly two thousand dollars lower than the median family income.

32 © 2007 McGraw-Hill Higher Education. All rights reserved.

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35 Athletes salaries dont affect ticket prices; owners charge whatever people will pay for tickets regardless of what they pay athletes. SIDELINES I make $20 million a year, and I dont feel guilty!

36 © 2007 McGraw-Hill Higher Education. All rights reserved. Income: Individual Sports Many athletes do not make enough to pay expenses There are increasing disparities between top money winners and other athletes Top male heavyweight boxers have traditionally made the most money Question: does this mean that athletes are rewarded for reaffirming certain ideologies?

37 © 2007 McGraw-Hill Higher Education. All rights reserved. Amateur Athletes Rights depend on the governing bodies that control various sports Income depends on The rules of governing bodies Endorsements that vary with celebrity status and corporate interest Most intercollegiate athletes in the U.S. are controlled by the NCAA; they have few rights

38 © 2007 McGraw-Hill Higher Education. All rights reserved. Tickets for NFL and Notre Dame games cost the same, but college players make a fraction of what the NFL players make


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