A level Physical Education Unit 3 Social and Cultural factors

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

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

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

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

Emergence of commercialism Occurred in 19thC when spectator sport emerged 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 Commercialisation became an integral part of sport

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

Commercialisation of sport Sport is a fairly cheap form of entertainment - production costs are low Plenty of excitement 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) Offers business investment opportunities Advertising, sponsorship, merchandising and endorsements are made available

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

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

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

DIFFERENT FORMS OF INVESTMENT TO SUPPORT THE PERFORMER SPONSORSHIP ENDORSEMENT ADVERTISEMENT

Obtaining sponsorship task

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

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

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

Class task What would you associate with the following brands:

Class task Advantages and disadvantages of sponsorship

Advantages of sponsorship and endorsements A source of income for players or organisation – sport is expensive! Sport is promoted Helps create atmosphere Sports are organised better Improved facilities Helps raise standards of performance for amateurs 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 Free products for the performer New products can be introduced Association of star/product performance Reduces tax paid by the company Link to healthy image of sport Corporate hospitality

Disadvantages of sponsorship and endorsements Sport comes to rely on it, often giving hold on the sport – control sport Less popular sports that attract little/no sponsorship may decline 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 Team selection may be affected Regular loses attract few sponsors Product made more expensive

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

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

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

SPONSORSHIP PRESENTATION TASK