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A level Physical Education Unit 3 Social and Cultural factors.

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Presentation on theme: "A level Physical Education Unit 3 Social and Cultural factors."— Presentation transcript:

1 A level Physical Education Unit 3 Social and Cultural factors

2 Commercialisation of elite sport Commercialisation The treating of sport as a commodity, involving the buying and selling of assets, with the market as the driving force behind sport

3 LESSON AIM To introduce the nature of commercial sport LESSON OBJECTIVES To understand the relationship between finance and sport To know the different types of investment in sport To know the advantages and disadvantages of investment in sport Understand the ways in which elite sport has become commercialised Describe how elite sport relies on sponsorship

4 Class task Write down as much as you can about a famous sports personality Write down as much as you can about a famous sports personality Include sporting details as well as anything else outside of their sport Include sporting details as well as anything else outside of their sport

5 Television Best medium for images, as they occur Best medium for images, as they occur Development of Sky Sports – domination of sport (Led to government ring fencing) Development of Sky Sports – domination of sport (Led to government ring fencing) Pay-per-view issues Pay-per-view issues

6 Emergence of commercialism Occurred in 19thC when spectator sport emerged Occurred in 19thC when spectator sport emerged Increased free time and disposable income - coupled with a need for excitement and entertainment Increased free time and disposable income - coupled with a need for excitement and entertainment Exploited by those who saw entertainment value of regular sporting events Exploited by those who saw entertainment value of regular sporting events Commercialisation became an integral part of sport Commercialisation became an integral part of sport

7 Growth of commercialism Perhaps the most significant development was the transition from playing to viewing Perhaps the most significant development was the transition from playing to viewing This led to widespread commercialisation of sport and profits to be made This led to widespread commercialisation of sport and profits to be made Sports began to turn their attention to becoming more spectator friendly Sports began to turn their attention to becoming more spectator friendly Professional sport, the media, advertising and sponsorship formed mutually beneficial relationships Professional sport, the media, advertising and sponsorship formed mutually beneficial relationships

8 Commercialisation of sport Sport is a fairly cheap form of entertainment - production costs are low Sport is a fairly cheap form of entertainment - production costs are low Plenty of excitement Plenty of excitement Developments in technology have enhanced the viewers experience Developments in technology have enhanced the viewers experience Sport can make a lot of money from television (Premier League worth £1bn a year in broadcasting rights) Sport can make a lot of money from television (Premier League worth £1bn a year in broadcasting rights) Offers business investment opportunities Offers business investment opportunities Advertising, sponsorship, merchandising and endorsements are made available Advertising, sponsorship, merchandising and endorsements are made available

9 How commercialisation has affected sport Commercialised sport driven by profit for stakeholders demanding quick return = obligation to win Commercialised sport driven by profit for stakeholders demanding quick return = obligation to win Performers become the commodity Performers become the commodity Sport now a lot more professionally managed Sport now a lot more professionally managed Sport needs to be attractive to the media = attraction of sponsors.. Sport needs to be attractive to the media = attraction of sponsors..

10 Recent considerations Global marketing Global marketing Huge TV rights Huge TV rights Clothing and equipment Clothing and equipment Exclusive rights e.g. at the Olympics Exclusive rights e.g. at the Olympics Money in soccer Money in soccer Rich club gap Rich club gap Aggressive marketing by Gov.B e.g. NBA NFL Aggressive marketing by Gov.B e.g. NBA NFL Betting industry Betting industry New technology New technology Millionaire owners Millionaire owners Conglomerates (BSkyB and ManU 98) Conglomerates (BSkyB and ManU 98)

11 THE RELATIONSHIP BETWEEN FINANCE AND SPORT Sponsors image can be enhanced by association with sport Sponsors image can be enhanced by association with sport Sport provides a vast market/audience for products Sport provides a vast market/audience for products The audience is greatly increased if TV is involved The audience is greatly increased if TV is involved Without TV the attraction of sports sponsorship is devalued Without TV the attraction of sports sponsorship is devalued Sponsors look for likelihood of interest, publicity, attendance and TV audience of the sport/event Sponsors look for likelihood of interest, publicity, attendance and TV audience of the sport/event

12 DIFFERENT FORMS OF INVESTMENT TO SUPPORT THE PERFORMER SPONSORSHIP SPONSORSHIP ENDORSEMENT ENDORSEMENT ADVERTISEMENT ADVERTISEMENT

13 Obtaining sponsorship task

14 SPONSORSHIP Financial input into sport by business or an individual usually in return for advertising facilities

15 ENDORSEMENT Give approval or support to a product or company in return for payment

16 ADVERTISEMENT To promote or make known to the public offering goods or services for sale

17 Class task What would you associate with the following brands: What would you associate with the following brands:

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23 Class task Advantages and disadvantages of sponsorship Advantages and disadvantages of sponsorship

24 Advantages of sponsorship and endorsements A source of income for players or organisation – sport is expensive! A source of income for players or organisation – sport is expensive! Sport is promoted Sport is promoted Helps create atmosphere Helps create atmosphere Sports are organised better Sports are organised better Improved facilities Improved facilities Helps raise standards of performance for amateurs Helps raise standards of performance for amateurs Helps operate coaching and training schemes for amateur sports Helps operate coaching and training schemes for amateur sports Sponsor gains publicity by being linked with popular, wholesome sporting activities – associated with supporting the community Sponsor gains publicity by being linked with popular, wholesome sporting activities – associated with supporting the community Free products for the performer Free products for the performer New products can be introduced New products can be introduced Association of star/product performance Association of star/product performance Reduces tax paid by the company Reduces tax paid by the company Link to healthy image of sport Link to healthy image of sport Corporate hospitality Corporate hospitality

25 Disadvantages of sponsorship and endorsements Sport comes to rely on it, often giving hold on the sport – control sport Sport comes to rely on it, often giving hold on the sport – control sport Less popular sports that attract little/no sponsorship may decline Less popular sports that attract little/no sponsorship may decline Competitors/teams may be forced to wear products/equipment that is not suitable Competitors/teams may be forced to wear products/equipment that is not suitable Sponsor may pull out due to decrease in popularity or image = disaster Sponsor may pull out due to decrease in popularity or image = disaster Team selection may be affected Team selection may be affected Regular loses attract few sponsors Regular loses attract few sponsors Product made more expensive Product made more expensive

26 Should a performer consider the nature of the product before accepting the financial support? Yes Yes Performer as a role model – duty to others to set example Performer as a role model – duty to others to set example Support depends on the image of the performer Support depends on the image of the performer Problem of poor/unhealthy products Problem of poor/unhealthy products May bring criticism to performer if an inappropriate product May bring criticism to performer if an inappropriate product No No Financial need – livelihood at stake Financial need – livelihood at stake If product is legal – why not? If product is legal – why not? No other deals available No other deals available Little availability for grass roots Little availability for grass roots

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28 What aspects of sport receive sponsorship? Events Events Governing Bodies and coaching schemes Governing Bodies and coaching schemes Stadiums/stands Stadiums/stands Teams and individuals Teams and individuals

29 What does a sponsor consider? Success of team or individual Success of team or individual Popularity Popularity Media coverage Media coverage Participation levels Participation levels Suitability of the sport for the product Suitability of the sport for the product

30 SPONSORSHIP PRESENTATION TASK


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