Commercialisation Of Sport Flashcards

(34 cards)

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

A

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

A

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

A

-Known as the “tit for tat” Olympics — USSR and Eastern Bloc boycotted (response to 1980 US boycott).
-Official reasons: athlete safety concerns and commercialisation accusations.
-Devalued competition due to absence of top Eastern Bloc athletes.
-Peter Ueberroth led the organising committee, focusing on fundraising as LA and US government refused funding.
-TV rights sold for $287 million; main sponsors included McDonald’s and Coca-Cola.
-Games made a $200 million profit.
-Developed the TOP Programme (The Olympic Partner Programme) — a blueprint for future Games’ commercial success.

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12
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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13
Q

1972 Olympics impact on the 1984 Olympics

A

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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14
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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15
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.

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16
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

17
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

18
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

19
Q

Olympic symbolism

A

The Olympic Flame, lit in Olympia, Greece using the sun’s rays, is a central symbol of the Games. It is carried to the host city via a torch relay and remains lit throughout the Games, symbolizing the pursuit of excellence, peace, and friendship. If needed, the flame can be transported in a special lamp.

Medals are awarded to the top three finishers in each event. They must meet specific size requirements, with the first and second place medals made of high-quality silver. The gold medal must include at least 9 grams of pure gold, and host cities design and produce the medals.

The Olympic Rings—blue, black, red, yellow, and green on a white background—represent the unity of the five continents and include colors found in all national flags.

The Olympic Oath, recited by athletes at the opening ceremony, emphasizes fair play and sportsmanship.

The Olympic Message, displayed at every Games, highlights participation and effort over winning, reflecting the ideals of founder Pierre de Coubertin.

20
Q

Olympic ideals- is it still applicable for modern day sport

A

The Olympic Ideal emphasizes participation over victory, fair competition, and respect for others, as seen in the Olympic Oath and Message. It is closely tied to the concept of the “Contract to Compete”, an unwritten agreement among athletes to play within the rules, ethically, and with mutual respect.

This ideal encourages sportsmanship—respect for opponents, adherence to rules, and proper conduct. However, in modern sport, there’s a growing shift from sportsmanship to gamesmanship, where bending the rules or using questionable tactics to gain an edge has become more common. This undermines the spirit of fair play and the original Olympic values.

The professionalization and commercialization of the Olympics—through sponsorships, media influence, and financial incentives—has led to a more result-driven approach. Many athletes today are professionals with lucrative endorsement deals and bonuses tied to performance. The once amateur-focused Games now feature elite athletes with significant resources, creating inequality and pressure to succeed at all costs.

This environment can lead to rule-breaking, fouls, and even doping, which contradict the Olympic Ideal and the contract to compete. As sport becomes more commercialized, the emphasis on winning often overshadows the ideals of fair play and participation.

21
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.

22
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

23
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

24
Q

Examples of commercial funding

A

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

25
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
26
Franchises
This is buying the right to own a team in a particular league - they can be bought or sold
27
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 - playoff systems create extra higher-level competition for more teams Against -the cartel structure of the leagues blocks new entrants -Communities can lose their team as a franchise moves markets -teams that do not make the playoffs have very short seasons
28
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 -Playoffs, generate extra completion and financial returns Against -the Spectre of relegation forces teams to overspend on players -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
29
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
30
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
31
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
32
+ 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
33
- 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
34
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.