Commercialisation Of Sport Flashcards

1
Q

Define commercialization

A

Commercialisation in sport refers to the process of turning sport into a business — generating revenue through media rights, sponsorships, merchandising, and ticket sales.

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2
Q

Impact of commercialization on sport and society

A

Impact on Society:
Positive:
-Increased funding for sport development
-Better facilities and equipment
-More media coverage = increased participation
-Role models created

Negative:
-Win-at-all-costs culture
-Overemphasis on elite over grassroots sport
-Over-commercialisation can alienate traditional fans
-Gender inequalities in coverage and sponsorship

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3
Q

Concept of Commercialisation and Commodities-commodities

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These are athletes, clubs, and events become products that can be bought/sold/promoted for profit.

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4
Q

Comparison between advertising, sponsorship, endorcement and merchandising and their impact

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Differences:
-Advertising: Paid promotion to sell a product/service (e.g., Nike ad with an athlete).
-Sponsorship: Financial support in return for publicity/brand exposure (e.g., Emirates sponsoring Arsenal).
-Endorsement: Athlete directly supports a brand/product (e.g., Serena Williams endorsing Nike).
-Merchandising: Selling products linked to a sport/team (e.g., club kits, replica gear).

Impact:
-Big brands shape how sport is presented.
-Athletes’ image becomes a marketable brand.
-Some sports/events are favoured based on commercial potential.

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5
Q

Historical and Social Context of Commercialisation

A

Key Developments:
-Broken Time Payments: Compensation for working-class athletes missing work to compete. Key step toward professionalism.

-Spectatorism: Growth of fans watching sport live or through media — essential to commercial success.

Media Evolution:
• Radio → TV → Internet/Streaming
• Bigger audiences = more value for advertising and sponsorship
• Shaped how/when sports are played (e.g., evening matches for prime-time TV)

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6
Q

Why do we have the modern Olympics

A
  • it started in Olympia 776BC (Greece)
  • for the first 13 games there was only 1 event held
  • in 1896 the modern Olympics kicked off in athens
  • every 4 years as of Greece calendar (Olympiads)
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7
Q

Context of the Olympics

A

It was a Greek events and the Roman’s had banned it.
-this was where baron pierre de coubertin set up the Olympics and visited Arnold
- schools influenced the Olympics
- the wedlock games were introduced by dr Brooke’s as the town wasn’t very healthy so he wanted to make them fitter.
- it was said a healthy body made a healthy mind (muscular Christianity)

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8
Q

Olympic games- 1968 Mexico City

A

Over 200 Mexican students were massacred in protest of the use of Government money to pay for the Games, during widespread poverty in Mexico. East Germany (GDR) competed for the first time. American sprinters Tommy Smith and John Carlos protested against treatment of Black Americans, using the ‘Black Power Salute’ during the American national Anthem. South Africa was banned from the Games

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9
Q

Olympic games- 1972 Munich

A

-Palestinian terrorists killed 11 Israeli athletes and coaches in an attempt to free Palestinian prisoners.
-Protest and threats of boycott from a number of countries resulted in Rhodesia’s invitation being withdrawn, on grounds of apartheid black vs white)
- east Germany used sport to dominate and used drugs to prove communism was better than the west (capitalist)

These games had a significant influence on the development of commercialism.

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10
Q

Olympic Games- 1976 Montreal

A

There was a financial disaster due to a over ambitious plan to build new facilities for every sport plus huge security costs because of the previous games that were estimated to be 310 m but debts were 1b plus by the time these were cleared in 2006 these had costed 2b.
- the increase in security costs, new facilities and a country already in recession, political issues included;
- African countries boycotted in protest of New Zealand Rugby team’s tour of South Africa, despite ongoing apartheid issues.
-IOC allowed New Zealand to participate, as Rugby was not an Olympic sport. Taiwan withdrew, after pressure from the Republic of China.

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11
Q

Olympic Games: Los Angeles 1984

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-Sometimes known as ‘tit for tat’ Olympics, the USSR led the boycott of these games and other communist countries joined them.
- Official reasons given were the concerns over the athletes’ safety and claimed that the IOC was not adhering to the Olympic Charter and were using the Games as a commercial interest.
-The lack of the Eastern Block athletes devalued the status of gold medals.
-In these games Peter Ueberroth developed the commercial blue print adopted by all subsequent games.

Refusal of la countries and the US gov to fund games so peter ueberoth was appointed as the chairman of the organising committee and focused more on fundraising.

Tv rights were sold for 287 million where the main sponsors were McDonald’s, Coca Cola resulting in games making 200 million

Peter with the 10c developed the top programme (Olympic partner)

Tit for tat Olympics the USSR led the boycott of these games and other communist countries to join them

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12
Q
A
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13
Q

1968 Olympics impact on the 1984 Olympics

A

1968 Mexico City Olympics – Political Impact
• Famous for the Black Power salute by Tommie Smith and John Carlos during the medal ceremony.
• Highlighted how sport could be used for political protest.

Impact on 1984: Greater control of athlete expression and tighter media management to avoid controversy harming the image of the Games or sponsors.

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14
Q

1972 Olympics impact on the 1984 Olympics

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1972 Munich Olympics – Security & Media Attention
• Marked by the Munich Massacre, where 11 Israeli athletes were killed by terrorists.
• Brought global attention to the need for security at sporting events.

Impact on 1984:
LA 1984 had heightened security protocols.
The media coverage of Munich showed the power of live global broadcasting — this was capitalised on in LA for TV rights sales and advertising revenue.

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15
Q

1976 Olympics impact on the 1984 Olympics

A

1976 Montreal Olympics – Financial Impact
• Montreal faced huge financial losses (over $1 billion in debt) due to overspending on venues and infrastructure.
• Also saw the African boycott over apartheid issues, damaging credibility and viewership.

Impact on 1984:
LA refused public funding — instead, used private investment and sponsorship, reducing financial risk.
The Olympic movement needed to restore its reputation — LA did this by running a financially successful Games.

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16
Q

1984 impact on the 1984 Olympics

A

1984 Los Angeles Olympics – The Resulting Blueprint
• Led by Peter Ueberroth, LA 1984:
• Sold exclusive sponsorship rights (only one sponsor per product type)
• Secured massive TV rights deals
• Used existing facilities instead of building new ones
• Ran at a profit of over $200 million

Impact of Earlier Games on 1984:
Learned from financial failure (1976)
Addressed political and security concerns (1968, 1972)
Set a precedent for how Olympics should be funded and commercialised — a model followed by all Games since.

17
Q

Olympic ideals

A

The IOC developed a set of ideals regarding the Olympic Movement and these are referred to as Olympism “…a philosophy of life, exalting and combining in a balanced whole, the quality of body, will and mind. Blending sport with culture and education, Olympism seeks to create a way of life based on the joy found in effort, the educational value of good example and respect for universal fundamental ethical principles”

The main goals of the Olympic movement are:
-Personal excellence
-Sport as Education
-Cultural exchange
-Mass Participation
-Fair Play
-International understanding

Examples involved
- equality
- free from the use of drugs
- respect
- friendship
- excellence
- promotion of Olympism
- free from political interference
- global harmony for sport
- equal opportunities

18
Q

Are the Olympic ideals valid

A

For
- excellence
- friendship
- courage
- inspiration
- respect
- determination

E.g. 2 olympians shared a gold medal

Against
- ideals get lost in commercial circus
- not free from drug abuse

E.g. drug taking increased from Sydney 2000 from taking more tests

19
Q

Argue whether there are equal opportunities

A

For
-more paralympians are given opportunities
- 164 countries are now competing in the Paralympic’s

Against
-however there is still a difference as woman have a battle of representative action where its seen as more male dominated
- richer countries still dominate

20
Q

Olympic symbolism

A

-The Olympic Flame is a key feature of the Opening Ceremony, remaining lit during the games and then extinguished during the Closing Ceremony.
-The flame is historically lit by the rays of the sun in Olympia, Greece and carried in a torch, by a series of runners in the ‘torch relay’, to the Opening Ceremony of the Games. Occasionally there is a need to transport the flame by air; this is done by keeping the flame in a specially designed lamp.
-The flame symbolises the endeavour for perfection, the struggle for victory, peace and friendship.
-The top three placing performers in each event receive medals which must be at least 60mm in diameter and 3mm in thickness.
-The first and second place medals must be made of silver of a specific quality. The first place medal must be decorated with fine metallic leaf containing at least 9g of pure gold; the host city being responsible for the design and production these medals.
-The symbol of the Olympics are the five Olympic Rings that are interconnected; each is a different colour: blue, black, red, yellow and green on a white background.
-The significance of this is that at least one of these six colours appears in all of the flags of the competing nations. The five rings are representative of the five continents involved in the Olympic Games: Africa, Americas, Asia, Europe and Oceania. The Olympic rings are the main feature on the Olympic Flag that flies above each venue during the Olympic Games.
-The Olympic Oath is repeated by the competitors at the opening ceremony in an attempt to reinforce the values and ideals of the Olympics. “In the name of all competitors, I promise that we will take part in these Olympic Games, respecting and abiding by the rules which govern them, in the true spirit of sportsmanship, for the glory of sport and honour of our teams”.
-At all the Olympic games the score board displays the Olympic Message; “The most important thing in the Olympic Games is not to win but to take part, just as the most important thing in life is not the triumph but the struggle. The essential thing is not to have conquered but to have fought well.” Again this reinforces the values and ideals De Coubertin was striving for when he started the Olympic Movement.

21
Q

Olympic ideals- is it still applicable for modern day sport

A

The Olympic Ideal proposes that ‘the most important thing in the Olympic Games is not to win but to take part’ and as seen in the Olympic Oath and Message, there is a lot of emphasis on competing fairly with respect for others and succeeding as a result of one’s own efforts and ability.
Related to the Olympic Ideal is the ‘Contract to compete’ which is an unwritten code or mutual agreement with opponents, to strive against each other to win. The contract to compete involves an expectation of how the opponents will play; within the rules, following ethics and displaying sportsmanship.
Sportsmanship is competing within the rules and conforming to the unwritten rules of the sport, such as etiquette and respect for opposition. One would also expect the performers to put in maximum effort and respect the officials and their decisions. Over the last few decades, there has been a move away from the concept of sportsmanship towards a more driven ethic of gamesmanship.
Gamesmanship is breaking the unwritten rules or ‘bending the written rules’; winning generally relies on fractions of time or distance and any advantage can be crucial. This concept breaks the contract to compete and contradicts De Coubertin’s original ideal.
-It has been suggested that ‘Olympic Ideal’ has little relevance in the modern sporting arena the notion of amateur competitors has been replaced with highly paid Olympic athletes.
-Due to sponsorship deals and contracts to satisfy, many athletes earn bonuses that are dependent on the competition results.
-Olympics have had to reflect the general trends in sport and move towards a more professional approach; since the 1990’s the Olympic Games have moved towards an open policy and became open to both amateurs and professional athletes.
-An increase in commercialism of sport had led to a rise in the amount of money available, due to the influence of the media and other systems such as state and college scholarships offered by the US and the former USSR which has created an uneven playing field.
-Top athletes have now become household names and attractive to sponsors and advertisers. All these factors may encourage the athletes to break the rules, commit fouls and in some cases resort to extreme measures, such as blood doping and drug taking.
-This gamesmanship behaviour disregards the ‘Olympic Ideal’ and may not allow opposition to play to the best of their ability.

22
Q

What was the golden triangle

A

It was a term that was used to describe the mutual interdependence sport, media and business had on one another.

1.Sport – attracts fans
2.Media – provides exposure
3.Sponsors – provide funding
All three depend on and boost each other.

23
Q

Define commercialization

A

The use of sports as a commodity in order to generate income through other marketing opportunities such as advertising or sponsorship

24
Q

When does sport become a commodity

A

A commodity is something you get financial value from ‘

When consumers either are willing to play, pay or watch if it has a potential exchange value

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Examples of commercial funding
Merchandising- promoting sales of goods especially by there presentation in retail outlets Endorsements- where an athlete or team are paid to use a product or give an impression if the products are good enough for them to use e.g. Ronaldo endorses Nike football boots by wearing them. Advertisement- coverage/promotion of a company, product or logo gained by the said company, paying to promote their product either on shirts, bill boards or programmes Sponsorship- payment or money received by an individual, team or competition in return for displaying the name/logo/brand or sponsoring the company
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What are the main types of commercial funding in sports
- gate receipts - selling advertising space to companies - endorsement - media funding - merchandising - club lotteries - selling players
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Franchises
This is buying the right to own a team in a particular league - they can be bought or sold
28
Franchise system- for and against
For - teams are on a more level financial playing field - no relegation reduces the fear of failure, panic, buying and endless manager sackings - more teams have a realistic chance to win championships - stadiums and spectator amendities are excellent even when the resident teams aren’t - playoff systems create extra higher-level competition for more teams -draft pick system aims to provide equality of ability between teams Against -the cartel structure of the leagues blocks new entrants -Regional monopolies allow owners to charge excessive prices -Communities can lose their team as a franchise moves markets -teams that do not make the playoffs have very short seasons
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American model- is the European model the one to follow
For -any team can rise from bottom to top -relegation means a fewer meaningless end of season games -Overall the product for fans is more exciting -leagues systems can be for all levels of ability -Playoffs, generate extra completion and financial returns Against -the Spectre of relegation forces teams to overspend on players -This means stadiums can be substandard -the excess spending power of a few clubs has reduced competition -leagues are dominated by the richer clubs, over priced and paid players and success in European competitions being more important
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Americanisation of sport
American influence on sport, adopting the practices that have American sport • Influence of U.S. sport culture: • Franchises • Salary caps and drafts • Halftime shows and entertainment focus • Data-driven performance models
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Americanisation and influence in the 21st century
- increasing reliance on commercialization - sport is now a business meaning profit and loss - use of franchises - significant movement from amateur to professional sport - increasing influence of media - importance of the golden triangle - American media dictating times and fixtures - sport acting as a bill board to advertise - increases amount that players can earn - change the rules to enhance entertainment - pay per view and increase costs to watch live
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Features of a franchise
- it can be bought or sold - teams can move - franchises can move from city to city - gives league permission - leagues can expand - no promotion/regulaiton - there’s limited teams in a league - normally 1 team per sport in each city
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+ of a franchise
-allows a club to move geographically ensuring financial security - clubs are financially viable - allow private investment to buy into the closed shop of sport when franchises become available - no fear of relegation - franchise develop as a brand - number of teams in a franchise can be increased
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- of a franchise
- sport can be seen as a commodity - no automatic promotion in to a league - lack of relegation can lead to meaningless games - limit ownership to wealthy groups and individuals - fans have increased travel to spectate - can back fire and club can lose out (low fan based revenue) - high costs mean ownership can be seen as a risk - loss of fan bases - no affinity for clubs
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Competitive sports as global events examples
• Super Bowl (USA) • Tour de France (cycling) • Six Nations / World Cup (rugby) • Highly commercialised, with worldwide media and corporate involvement.
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