Sport as a Commodity

Sport as a Commodity

  • The development of professional sport
  • Sport as big business
  • Sponsorship, advertising and sport
  • The economics of hosting major sporting events
  • Consequences for spectators and participants

The Development of Professional Sport

  • Debates have sparked on the professionalism of sport in terms of integrity and fair play.
  • In the last 30 years, the idea of sports has changed from being a part-time job to becoming a full-time opportunity for gain.
  • The media has shown quite a bit of participation in making sport events watchable by everyone. Many sports have changed their format to fit in and facilitate broadcasting.

Sport as Big Business

  • The revolutionization of sports took place in Australia in the 1970s, when Kerry Packer introduced World Series cricket.
  • Earnings of professional players have reached the milestone of millions/year.
  • Professional players also work as ambassadors of sport brands as a marketing cue to sell as many units as possible.
  • TV Revenue, merchandise sales as well as ticket revenue act as major economic contributors.

Sponsorship, Advertising and Sport

  • From an economic standpoint, sponsorship is what fuels sporting events.
  • Sponsors put peer pressure in individual team members, as underperformance can lead to losing a sponsor.
  • Often ethical values are questioned because of underlying, illegal gambling and match-fixing allegations.

The Economics of Hosting Major Sporting Events

  • Often an extra source of large revenue as well as an opportunity for publicity and exhibition, but requires investment as well as infrastructural expenses.
  • Sometimes triggers intra-city conflicts due to a shared interest of hosting a major sporting event.

Consequences for Spectators and Participants

  • Participants
    • An opportunity to travel the world while earning a livelihood.
    • A sense of patriotism while representing one’s country.
    • Private lives are often put under scrutiny.
    • Health implications and risks of injury.
    • Balancing between work and family life becomes tough due to frequent travelling.
  • Spectators
    • Changing game standards as well as introduction of new gameplay methods (Big Bash League, T20s).
    • Excitement of being able to watch more than one event on TV.
    • Lack of experiencing a live game because of increased ticket prices.
    • Change of preferences if a favourite player changes a team.