1. Sport as Global Entertainment Chris Gratton Sport Industry Research Centre (SIRC) Sheffield Hallam University UK

2. u Prior to 1960s sport was predominantly local activity u Broadcasting rights income, government funding of elite sport, and sponsorship income were negligible u Sport market dominated by mass participation sport with the voluntary sector the main supplier u Elite sport mainly amateur with exception of professional team sports (where rewards were modest) History: Sport Predominantly Local Activity

3. u Increasing importance of international sporting competitions creating need for national policies and strategies for elite sport u Increasing visibility of these competitions through television u Sport for all movement recognising health and social benefits of sport for all creating need for national policy for mass participation sport u National agencies for sport policy created u Increasing importance of government in sport 1960s, 1970s: Rise of National Sports Markets

4. Post 1980s: Globalisation of the Sport Market Globalising Forces: u Increasing globalisation of media coverage of major sports events (e.g. Olympics, Soccer World Cup) u Global recognition of top athletes u Association of these athletes with global sports brands (e.g. Nike, Adidas)

5. Characteristics of Global Sports Market u Escalation in price of broadcasting rights for global sports events. u Global marketing of major sports products by using images (not words) recognisable worldwide u Global sports celebrities most important part of these images u Escalation in price of sponsorship deals for both events and athletes by both sport (e.g. Nike, Adidas) and non-sport (e.g. Coca-Cola, McDonalds) sponsors

6. Olympic Games

7. London 2012

8. TV London had a Global TV audience of 4.8 million compared to: –- Beijing 4.7 million –- Athens 3.9 million –- Sydney 3.7 million

9. New Media u London2012.com became the worlds most popular sport website with 431 million visits u IOCs website attracted 16 million visits up from 10.6 million for Beijing u London 2012s social media sites (Facebook, Twitter and Google +) attracted 4.7 million followers

10. Countries broadcasting the Olympics Olympic Summer Games 1936 Berlin1 1948 London1 1952 Helsinki2 1956 Melbourne1 1960 Rome21 1964 Tokyo40 1968 Mexico Cityn/a 1972 Münich98 1976 Montreal124 1980 Moscow111 1984 Los Angeles156 1988 Seoul160 1992 Barcelona193 1996 Atlanta214 2000 Sydney220 2004 Athens220 2008 Beijing220

11. Olympic TV rights fees (US$-million) 1960 Rome1 1964 Tokyo2 1968 Mexico City10 1972 Münich18 1976 Montreal35 1980 Moscow88 1984 Los Angeles286 1988 Seoul402 1992 Barcelona636 1996 Atlanta898 2000 Sydney1,332 2004 Athens1,494 2008 Beijing1,739 2012 London 2,569

12. Distribution of revenues from broadcasting rights IOCLOOC 1948 – 19681-4%99-96% 1972 – 198010%90% 1984 – 199233%67% 1996 – 200440%60% 2006 – 201051%49% 2010 -------- LOOC receives a guaranteed amount

13. IOC Broadcast Rights Revenue u The total money income the IOC received from its share of the Beijing 2008 Games broadcasting rights income ($0.89 billion) was 500 times more than its share of the broadcasting rights income for the Munich 1972 Games ($1.28 million) u Beijing received $0.85 billion, just over 50 times more than Munich

14. Listed Events 2009 Independent Review Panel

15. IOC Evidence u Olympic Charter: which requires that the IOC take 'all necessary steps in order to ensure the fullest coverage by the different media and the widest possible audience in the world for the Olympic Games.' u At the Beijing Olympics live Olympic Games in the UK content amounted to 5,000 hours covering 28 sports. u The BBC broadcast 240 hours of live content from Beijing or just 4.8% of the total. That is, 95% of the Olympic Games content was not broadcast to the UK viewing public.

16. FIFA Evidence FIFA's argument in relation to the World Cup was that they were happy for part of the tournament to be listed (eg opening match, matches of home nations, semi finals and final) but they preferred a model operated in some other European countries (eg France) where a partnership between free-to-air and Pay-TV broadcasters shared the tournament.

17. FIFA Evidence u Loss of broadcast revenue was FIFA's main concern (unlike IOC's argument relating to lack of coverage) u 2007: event income accounted for 89% of FIFA revenue with the bulk of this coming from the sale of broadcasting rights to the 2010 World Cup

18. English Premier League

19. Football League attendances 1947 - 1985

20. The Future of Football 1985 Football will no doubt survive in British culture in one form or another. It will remain a strength in regions where traditional male working-class culture persists....... Perhaps football belonged to an earlier phase of industrialisation and has only a tenuous place in post-industrial society Chas Critcher

21. Football League attendances 1986 - 2000

22. The cost of the rights to live league matches from the top division in England, 1983 to 1997

23. Broadcast Rights Fees for Sport The single biggest influence on the economic position of English Premier League football is the increase in income from the sale of domestic broadcasting rights: u 1985 annual income from TV, £3 million u 1997 annual income from TV, £170 million u 2001 annual income from TV, £540 million u 2008 annual income from TV, £791 million u 2010 annual income from TV, £823 million

24. Premier League TV Rights 2007-10 u BSkyB 92 matches £4.76 m per game (£2.47m in 2004-7) u Setanta 46 matches£2.8 m per game u Total UK rights£1.7 billion u Overseas rights £625 million

25. Premier League TV Rights 2010-13 u Total UK rights£1.8 billion u Overseas rights £ 1.4 billion

26. Premier League TV rights 2013-16 u UK Rights (BSkyB/BT)£3.4 billion u Overseas Rights£2.5 billion (212 countries)

27. British Sky Broadcasting u Satellite Broadcasting Company set up in late 1980s u Massive losses in early years, and by 1992 still making a loss with only 1.5 million subscribers u In 1992 bid £304 million for Premier League Football TV rights u 1997 –- Europes most profitable broadcaster with profits made at £8 per second – - Market capitalisation of £10 billion – - 7 million subscribers; in 2013, 10.4 million subscribers u Over 50% subscribers say sport is main reason for subscription u Over 50% operating costs are sport-related

28. Football World Cup

29. World Cup 2006 in Germany Germany

30. Economic impact of Overseas Visitors u Stadium Visitors: 1.47 billion Euros u Public Viewing Visitors: 1.09 billion Euros u Total: 2.56 billion Euros u Average per match: 40 million Euros

31. Conclusions u There is no doubt that sport is global entertainment u Within a fragmented television landscape where much is recorded, safe and predictable only sport offers uncertainty, risk and liveness u Most of all live sport even on television has the ability to generate powerful emotions and this drives the global demand for sport