1. A level Physical Education
Unit 3
Social and Cultural factors

2. 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

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
Include sporting details as well as anything else outside of their sport

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

6. 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

7. 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

8. 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

9. 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 . .

10. 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)

11. 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

12. DIFFERENT FORMS OF INVESTMENT TO SUPPORT THE PERFORMER
SPONSORSHIP
ENDORSEMENT
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:

23. Class task
Advantages and disadvantages of sponsorship

24. 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

25. 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

26. 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

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

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

30. SPONSORSHIP PRESENTATION TASK