2. Sport as a Global Business Or just a global commodity?

3. Competitive forces (‘Porter’s 5’) Rivalry between sports Broadcasters Sponsors Spectators New entrants US Sports Other leisure and entertainment Players -make or buy?

4. Globalisation of markets Media rights markets Murdoch’s battering ram –Fox/NFL, BSkyB Premiership –the key to viewer numbers, subscriptions, PPV Barnett, S (1990) Games and Sets: the changing face of sport on television, BFI London Gorman and Calhoun (1994) The Name of the Game: the business of sports, John Wiley, New York

5. Why sport? Scarcity and perishability –demand > supply for the big games Imagery and audience profiles –attractive to advertisers and sponsors Still relatively cheap and plentiful –programming for new digital channels International appeal –no language barrier

6. International growth and competition Growing appetite for sports in Asia creates opportunities and threats for: Clubs – Man Utd v Real Madrid –and Sheffield United Competitions – UK v Spain v Italy Sports – NFL v Soccer –F1 v Indycars –Baseball v Cricket

7. How do British ‘companies’ compete? Value-chain and partnership decisions Make or Buy? Compete or Collaborate? Understand the value-delivery network

8. The marketing channels in spectator sport 1a :The organisations -suppliers producers distributors National Governing Body World Governing Body Social teams Minor Clubs Major Clubs Other NGBs 1b The Products- value added chain Junior Leagues Senior Leagues International Matches World Championship Grassroots participation 1c : Flow of talented players Players TV Viewers Spectators 1d : Flows of customers

9. Marketing Channel analysis A set of interdependent organisations involved in making a product available to a market (Stern & El Ansary) sharing a super-ordinate goal –the creation of a sports competition which will attract broadcasters and sponsors –outside the USA, this means international competition Morgan (2002) ‘The structure of elite competitions’ Managing Leisure : an international journal

10. Factors for success Product analysis Core benefits –uncertainty of outcome (Rottenberg) –identification with success –Well-matched teams Tangible elements –teams, players, stadium –investment

11. Augmented product –branding of the teams lifestyle imagery –significance of the event Well-marketed competitions Legitimate prestigious titles

12. Network relationships tensions within the channel can damage the sport NGB Minor clubs Major clubs SponsorsBroadcasters Other NGBs WGB Players Season ticket holders Local mediaSponsors Investors

13. Areas of channel conflict Power/dependency relationship –who owns the assets (players, stadia, brand) –where is the value-added (club or national level) –legitimacy -> significance Control of channel - negotiating rights Distribution of earnings –rewards for subordinating own success for that of the channel

14. Issues of globalisation Imported v home-grown talent? free market competition v protectionism as the recipe for national success? –Impact of EU labour law (Bosman onwards) Leakage of profits 45% of P’ship transfer fees went overseas (Deloitte Touche 2000) only 9% ‘trickled down’ to Football league concentration of wealth in the top teams Who pays for grassroots development? Who pays for welfare (PFA dispute)

15. Free market leads to Widening gap between rich and poor http://www.deloitte.com/dtt/press_release/0,1014,sid%253D2834%2526cid%253D7 4042,00.htmlhttp://www.deloitte.com/dtt/press_release/0,1014,sid%253D2834%2526cid%253D7 4042,00.html Vertical integration -> monopoly –Bernie Ecclestone’s F1 circus –£225m media investment in 10 Premiership clubs Loss of cultural heritage - Brand image v reality Ethical issues damaging the image of the sport None of these issues are unique to sport

16. Future Trends Sports Business International Fragmentation of media channels –opportunities to repackage sport Sponsorship has grown as effectiveness of TV advertising has decreased –but sport competes with music, arts, and charity Health lobby targets soft drinks & fast food –MacD, Coke and Bud the next to be banned? Convergence between sport, film and music

17. Why do we need a successful national team?