C7 - Commercialisation + (Americanisation) of Sport Flashcards
What is Sponsorship?
Sponsorship is when a company provides financial or material support to an athlete, team, or event in exchange for brand exposure and marketing benefits.
What is Endorsement?
Endorsement is when an athlete or sports figure is paid to promote a product or brand, using their reputation to influence consumers.
What is Merchandising?
The sale of products related to a sport, team, or athlete (e.g., replica kits, branded trainers).
What is Advertisement?
The promotion of sports, events, or products through TV, social media, billboards, and print media.
What can sports sponsorship affect?
- Athletes (financial support, increased exposure, pressure to perform).
- Teams (better facilities, travel funds, expectations to win).
- Events (higher prize money, improved production, risk of over-commercialisation).
Why do companies sponsor athletes/teams?
- Increase brand visibility.
- Associate with success & excellence.
- Gain customer loyalty & trust.
- Reach target demographics (e.g., Nike with young athletes).
Pros & Cons of Sponsorship
Pros:
✅ Increased funding.
✅ Better facilities & training.
✅ Raised profile for athlete/sport.
Cons:
❌ Pressure to perform.
❌ Ethical concerns (e.g., alcohol/gambling sponsors).
❌ Can create inequality (rich sports get richer).
What are endorsements?
When a company pays an athlete to promote their product or brand.
Example: Michael Jordan & Nike.
Pros & Cons of Endorsements
Pros:
✅ Financial security.
✅ Brand exposure for both athlete & company.
✅ Long-term career benefits.
Cons:
❌ Loss of deals if performance drops.
❌ Over-commercialisation.
❌ Public backlash if company has bad ethics.
What were Broken Time Payments?
Payments made to working-class players to compensate for lost wages
What was the Rugby Football Union’s Role?
The RFU upheld amateurism, banning players who received broken time payments, delaying professionalism in Rugby Union until 1995.
How did Spectatorism affect sport?
Increased fan attendance and ticket sales made sport profitable, leading to professional leagues and commercial deals.
What is the Golden Triangle?
The relationship between sport, media, and sponsorship, where each supports the others’ growth (e.g., Premier League & Sky Sports).
How has sport changed due to commercialisation?
- Increased athlete salaries.
- More global events & sponsorship deals.
- Greater reliance on TV broadcasting.
- More investment in women’s sport.
1968 – Mexico City
- First Games with major corporate sponsorship.
- Black Power Salute by Tommie Smith & John Carlos (raised awareness of racial injustice).
1972 – Munich
- Munich Massacre: Palestinian terrorist group attacked Israeli athletes.
- Led to major security changes at future Games.
1976 – Montreal
- First Olympics to lose money ($1.5 billion debt).
- Lack of corporate funding meant only one city (Montreal) bid to host.
1984 – Los Angeles
- First profitable Games due to corporate sponsorship.
- Peter Ueberroth introduced exclusive sponsorship deals.
- TV broadcasting deals became a key revenue source.
What did Peter Ueberroth do in 1984?
- Organised the Los Angeles 1984 Olympics, the first Games to make a profit.
- Introduced corporate sponsorship exclusivity (e.g., only one official sponsor per industry, like Coca-Cola for soft drinks).
- Set the modern commercial model for future Games.
What is the IOC’s Role in Sponsorship?
- Runs the TOP (The Olympic Programme) for global sponsorship.
- Protects the Olympic brand from unauthorised commercial use.
- Distributes funds to national Olympic committees and federations.
What are the benefits of commercialisation in the Olympics?
✅ Increased funding for athletes and facilities.
✅ Higher global exposure of sports.
✅ Economic growth for host nations.
✅ More investment in grassroots sports.
What are the negatives of commercialisation in the Olympics?
❌ Over-commercialisation (e.g., more focus on sponsors than sport).
❌ Athletes pressured to act as ‘walking billboards’.
❌ Risk of economic loss for host cities if poorly managed (e.g., Athens 2004 debt crisis).
Who is Peter Ueberroth?
- Organiser of the 1984 Los Angeles Olympics.
- Created the modern commercial model for the Olympics.
- Later became MLB Commissioner.
Why was the 1984 Olympics a turning point?
- First profitable Games ($250 million surplus).
- No government funding—entirely privately financed.
- Used corporate sponsorships & TV rights to cover costs.
Key Strategies in Ueberroth’s Blueprint
🔹 Exclusive Corporate Sponsorship – Limited sponsorships to one company per industry (e.g., Coca-Cola for soft drinks).
🔹 Increased TV Revenue – Sold broadcast rights for record amounts ($225 million from ABC).
🔹 Cost-Cutting Measures – Used existing facilities rather than building new ones.
🔹 Volunteer Workforce – Reduced costs by using volunteers for event operations.
Impact on Future Olympics
✅ Set the commercialisation model still used today.
✅ Inspired future host cities to seek corporate funding.
✅ Made the Olympic Games financially viable again.
❌ Critics argue it led to over-commercialisation of sport.
