CHAPTER 6
SPORTS &
ECONOMY
GHZS2113 Sport and
Society
2024
WHAT IS • is an activity that involves challenge or
competitive activity, rules, winnwers, lossers,
SPORTS schedule, season. These activities can be
individual or team-based,
• The economy is a system of production,
distribution, and consumption of goods and
WHAT IS services within a specific region, driven by
ECONOMY the interactions of supply, demand, and
various economic policies.
• Economy referred to how a country produce
goods & services and consume and
GHZS2113 Sport and
Society
distribute them
Paddy/Rice
Produc
Consum
e
e
Distribut
THE CONNECTION BETWEEN
SPORTS & ECONOMY
The connection between sports and the economy within
the event industry is complex and deeply interwoven.
Sports' economic influence reaches far beyond the
playing field, affecting sectors such as tourism, media,
and commerce.
GHZS2113 Sport and
Society
SPORTS
ECONOMY
REVENUE STREAM SPORTS EVENTS AND SPORTS MEDIA &
TOURISM BROADCASTING
-INCLUDES TICKET MEGA EVENTS, LIKE TELEVISION AND
SALES, THE OLYMPICS AND STEAMING RIGHTS ARE
-EPL, PIALA MALAYSIA WORLD CUP HAVE A MAJOR SOURCE OF
MASSIVE ECONOMIC REVENUE FOR
IMPACTS LEAGUES AND TEAMS
• HOW SPORTS ENGAGE WITH THE ECONOMY, EMPHASIZING THE
RISE AND DEVELOPMENT OF COMMERCIAL SPORTS, THE
COMMERCIALIZATION AND EVOLUTION OF SPORTS, THE ROLE OF
SPORTS AS A TOURISM PRODUCT, AND THE INVOLVEMENT OF
OWNERS, SPONSORS, AND PROMOTERS IN COMMERCIAL SPORTS.
ILLUSTRATIVE EXAMPLES FROM MAJOR SPORTS EVENTS WILL BE
PROVIDED TO HIGHLIGHT THESE POINTS.
GHZS2113 Sport and
Society
EMERGENCE AND GROWTH OF
COMMERCIAL SPORTS
Definition: Commercial sports refer to sports that are
organized and operated primarily to generate profit.
EMERGENCE AND GROWTH OF
COMMERCIAL SPORTS
· Historical Context: The commercialization of sports began in
earnest in the late 19th and early 20th centuries. Key milestones
include:
·Professional Baseball: The formation of the National League in
1876 marked the beginning of organized professional sports in
the United States.
·Soccer Leagues: The formation of professional soccer leagues in
Europe, such as the English Football League in 1888.
·Olympic Games: The revival of the modern Olympic Games in
1896, which helped to globalize sports.
EMERGENCE AND GROWTH OF
COMMERCIAL SPORTS
EMERGENCE AND GROWTH OF
COMMERCIAL SPORTS
· Economic Impact: Commercial sports contribute significantly to the
economy through ticket sales, broadcasting rights, merchandising,
and sponsorships. For example:
·NFL: The National Football League generates billions in revenue
annually, with significant contributions from TV deals and
sponsorships.
·Olympics: The International Olympic Committee earns substantial
revenue from broadcasting rights and sponsorship deals.
EMERGENCE AND GROWTH OF
COMMERCIAL SPORTS
· Globalization: The globalization of sports has expanded the reach of
sports leagues and events to international audiences. For example:
·NBA: The National Basketball Association has a significant international
following, particularly in China.
COMMERCIALIZATION AND CHANGES
IN SPORTS
Rule Changes: To make sports more appealing to audiences and
sponsors, many sports have undergone rule changes
COMMERCIALIZATION AND CHANGES
IN SPORTS
200
Test 7
ODI
T2
COMMERCIALIZATION AND CHANGES
IN SPORTS
COMMERCIALIZATION AND CHANGES
IN SPORTS
· Player Management: The commercialization of sports has led to
the professional management of athletes, including contracts,
endorsements, and media training. For example:
LeBron James: An athlete whose brand extends beyond basketball
into media and business ventures
COMMERCIALIZATION AND CHANGES
IN SPORTS
· Event Management: Sports events are now meticulously planned
and marketed to maximize revenue and viewership. For example:
·Super Bowl: Known for its elaborate halftime shows and high-profile
advertisements, the Super Bowl is one of the most-watched events
globally.
COMMERCIALIZATION AND CHANGES
IN SPORTS
· Economic Disparities: Commercialization can create economic
disparities between sports and within sports, where certain teams or
leagues have significantly more resources. For example:
·Premier League: Top clubs like Manchester United and Manchester
City have vastly more financial resources compared to smaller clubs.
SPORTS AS A TOURIST
PRODUCT
SPORTS EVENTS AND FACILITIES AS ATTRACTIONS
THAT DRAW TOURISTS, CONTRIBUTING TO THE
LOCAL ECONOMY.
MEGA EVENTS
LARGE-SCALE SPORTS EVENTS SUCH AS THE OLYMPICS, FIFA WORLD CUP, AND SUPER
BOWL ATTRACT INTERNATIONAL TOURISTS AND GENERATE SUBSTANTIAL ECONOMIC
ACTIVITY
• FIFA WORLD CUP: THE 2018 WORLD CUP • OLYMPICS: THE 2016 RIO DE JANEIRO
IN RUSSIA ATTRACTED OVER 3 MILLION OLYMPICS BROUGHT MILLIONS OF TOURISTS
VISITORS AND GENERATED SIGNIFICANT TO BRAZIL
ECONOMIC BENEFITS FOR THE HOST
CITIES.
SPORTS TOURISM
INCLUDES TRAVEL FOR THE PURPOSE OF PARTICIPATING IN, WATCHING, OR VISITING
SPORTS-RELATED ATTRACTIONS.
• FORMULA 1 GRAND PRIX: EVENTS LIKE
THE MONACO GRAND PRIX ATTRACT
THOUSANDS OF INTERNATIONAL TOURISTS.
ECONOMIC BENEFITS
SPORTS TOURISM BOOSTS LOCAL ECONOMIES THROUGH SPENDING ON HOTELS,
RESTAURANTS, TRANSPORTATION, AND OTHER SERVICES
SUPER
• TOUR DE FRANCE: THE CYCLING EVENT NOT
BOWL
ONLY ATTRACTS TOURISTS BUT ALSO
PROMOTES THE REGIONS IT PASSES THROUGH,
BOOSTING LOCAL ECONOMIES
CHALLENGES
WHILE SPORTS TOURISM CAN BRING ECONOMIC BENEFITS, IT ALSO PRESENTS CHALLENGES SUCH AS
THE COSTS OF INFRASTRUCTURE DEVELOPMENT AND THE RISK OF UNDERUTILIZATION POST-EVENT
RISK OF UNDERUTILIZATION POST-EVENT FINANCIAL RISK
• ABANDONED FACILITIES: VENUES BUILT • DEBT: HOST CITIES AND COUNTRIES CAN
FOR MAJOR EVENTS OFTEN REMAIN INCUR SIGNIFICANT DEBT FROM EVENT-
UNUSED OR UNDERUSED AFTER THE RELATED EXPENDITURES, LEADING TO
EVENT CONCLUDES. LONG-TERM FINANCIAL INSTABILITY.
• MAINTENANCE COSTS: ONGOING • ECONOMIC DOWNTURNS: IF ANTICIPATED
MAINTENANCE OF LARGE, REVENUE FROM TOURISM DOES NOT
UNDERUTILIZED FACILITIES CAN BE A MATERIALIZE, THE ECONOMIC IMPACT CAN
SUBSTANTIAL FINANCIAL BURDEN. BE SEVERE.
OVERRELIANCE ON TOURISM
• ECONOMIC VULNERABILITY: OVERDEPENDENCE ON TOURISM CAN MAKE LOCAL
ECONOMIES VULNERABLE TO GLOBAL ECONOMIC FLUCTUATIONS AND CRISES,
SUCH AS PANDEMICS OR ECONOMIC RECESSIONS.
OWNERS, SPONSORS, AND
PROMOTERS IN COMMERCIAL
SPORTS
KEY STAKEHOLDERS WHO INVEST IN, MANAGE, AND PROMOTE SPORTS FOR COMMERCIAL
GAINS.
OWNERS
TYPICALLY WEALTHY INDIVIDUALS OR CORPORATIONS WHO OWN SPORTS TEAMS OR FRANCHISES. THEY INVEST
CAPITAL AND RESOURCES TO ENHANCE TEAM PERFORMANCE AND PROFITABILITY.
DYAM TUNKU ISMAIL IBNI SULTAN IBRAHIM
TONY FERNANDES
JOHOR DARUL TA'ZIM (JDT) FC: QUEENS PARK RANGERS (EFL
CHAMPIONSHIP)
SPONSORS
Companies that provide financial support to sports teams, leagues, or
events in exchange for advertising and promotional opportunities.
• NIKE: SPONSORS NUMEROUS • COCA-COLA: A LONG-TIME SPONSOR
ATHLETES AND TEAMS, PROVIDING OF THE OLYMPIC GAMES, BENEFITING
FINANCIAL SUPPORT IN EXCHANGE FROM GLOBAL EXPOSURE.
FOR BRAND VISIBILITY.
PROMOTERS
-Individuals or companies that organize and market sports events to
maximize attendance and viewership
EDDIE
DANA
• PRESIDENT OF THE ULTIMATE HEARN: BOXING
• A PROMINENT
WHITE:
FIGHTING CHAMPIONSHIP (UFC), PROMOTER WHO ORGANIZES
KNOWN FOR HIS ROLE IN HIGH-PROFILE FIGHTS.
PROMOTING MMA EVENTS.
SYNERGIES
• THE RELATIONSHIP BETWEEN OWNERS, SPONSORS, AND PROMOTERS IS SYNERGISTIC. OWNERS PROVIDE THE
PLATFORM, SPONSORS SUPPLY THE FUNDING, AND PROMOTERS BRING THE AUDIENCE, ALL CONTRIBUTING TO
THE COMMERCIAL SUCCESS OF SPORTS EVENTS.
Spons
Promot
or
er
Audien
Own
ce
er
CONCLUSION
Sports have become a big business, impacting the
economy in many ways. Organized professional leagues
attract millions of fans and generate significant
revenue. Sports tourism sees people traveling to watch
or participate in events, boosting local economies. Key
players like team owners, sponsors, and promoters are
essential in making sports profitable. This
commercialization has transformed sports into a global
entertainment and economic powerhouse.
Understanding these aspects reveals how sports have
evolved into a major economic force worldwide.
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