Commercialization of Sports - Essay Example

The problem of corporate sponsorship arises when stadia names are to be changed into corporate names. In the case of Houston Astros, the name was changed from Astros to Enron. There is a problem in changing the name of the stadium because fans of the club use stadium names for identity and memory. When corporations acquire naming rights, fans lose their identity associated with the club. In particular, corporate names threaten fans’ relationships with the team. In most cases, the naming right is awarded to the highest bidder without considering the views of fans: fans become paying customers to the sponsor with the naming right.

Naming rights are awarded to corporations because the cost of running sports is increasing. The sports management team continues to look for ways in which they can prevent the increase in ticket prices. Naming rights and sponsorship deals have become a solution for protecting fans from increased ticket prices so that they can support their teams. However, problems arise when the corporation accorded the naming right has a poor reputation in the public. Enron affected the operations of the Houston Astros because they had engaged in insider trading, record shredding, and unethical accounting practices.

The scandal at Enron had affected several employees and shareholders. The public, therefore, had a negative perception of Enron as a supporter of the Houston Astros. The reputation of the corporation can affect the resources, and revenues clubs receive from their stadia. For instance, fans cannot attend games in a stadium named after an unethical corporation such as Enron. Alternatives Clubs should check the reputation of corporations before awarding naming rights. The management team should check sponsors if worthy.

However, it may be difficult to predict the future whether the company will engage in unethical behavior that may affect the reputation of the club. The increased commercialization of sports through naming rights is caused by the increasing costs of running clubs. The management team has identified the need to improve the revenues so that they can pay appropriate salaries to players. In addition, clubs award naming rights to corporations so that they avoid increasing ticket prices that may limit the fans’ ability to be in touch with their team.

A balance between these issues is achieved through sponsorship deals. Evaluation Clubs should avoid awarding naming rights to corporations with a poor reputation. The fans should be involved in the process of d determining a suitable sponsor and corporation to be awarded naming rights. Checking sponsors if worthy of naming rights ensures that the public does not reject the club. Poor public relations of the sponsor determine whether the public will attend games of a club named after an unethical corporation.

A disgraced company logo has implications on the revenues of a club. In particular, fans avoided games played at the Enron field because of the unethical business practices that affected operations at Enron. Clubs should also avoid allocating all naming rights to corporations. Clubs should not award naming rights to corporations because they are not sure whether the company will be affected by unethical business practices in the future. The name of the stadium should remain according to the expectations of fans.

Increased revenues can be obtained through sponsorship of other sports merchandise but not the naming right of the stadium. 

This alternative ensures that when the reputation of the sponsor is affected by unethical business practices and poor public relations, the club can continue attracting several fans into the games played in the stadium.

Clubs should also avoid rebranding the stadium several times because fans become confused about the real identity of their team. When the name has been changed severally, marketers would want to avoid marketing sports merchandise of the club.

Recommendations

Clubs should search for sponsors which have similar values such as affordable entertainment. The sponsor should not increase ticket prices thereby eliminating fans from supporting the club. In most cases, sponsors are concerned about revenues than the support of fans towards the club.  The sponsor should also be committed to a positive experience for the fans

Clubs should also locate sponsors who are generous stewards in society. The sponsor should support the development of the society in terms of socio-economic perspectives. In particular, sponsors who engage in corporate social responsibility activities should be awarded sponsorship deals. The management should avoid disgraced companies and their logo because of unethical behavior in society.

Clubs should restrict the ability of corporations to sell stadium naming rights when a financial and ethical disaster occurs. Restricting naming rights during financial and ethical disasters ensures that the club avoids being associated with an unethical corporation.