Sponsoring Spectacular Sports Events - Term Paper Example

 Sponsoring Spectacular Sports Events Abstract The objective of sponsoring high-performance sports events by trans-national corporations is basically for increasing the public awareness of the corporation. For governments, the objective is to create goodwill among people of various cultural backgrounds and also for improving international relations. The essay makes an assessment of the link between governments and corporation with sport events, in a global and comparative context. The social significance of sport events is also highlighted in the essay. Sponsoring Spectacular Sports Events The sports industry was very small a hundred years ago, compared to the present scale of the sports industry and sport events. With the passage of time, sports has transformed into an endeavour which is highly competitive, professional and extremely lucrative. The propagation of visual and print media has further promoted sporting events to distant corners of the globe. Since the 1960’s, the control over sports and sporting events by multinational corporations are ever on the increase. Sport events are also getting commoditized and standardised as a consequence, which is good in many ways. Presently, the global sports industry is a huge industry, getting even bigger with money being contributed by trans-national corporations. The sport industry now affects the economy of certain countries, by making substantial contribution to jobs, taxes and turnover. Sport events are generally held at a particular time of the year. Thus, sporting events follow an economic cycle. Big sporting events naturally mean benefits for the local community both economically and socially. The influx of tourists to the region also changes the social demographics of the region. Although the region stands to gain after the completion of a major sporting event, the question raised by some economists is whether the social and economic benefits of such events are distributed evenly among the people. In many cases, the government along with the MNC’s carry out infrastructural development. It’s highly debatable which social groups actually benefit from a major sporting event in an area, and which social groups are ignored. It’s also unclear what the scope for the contestation of the development is. Analysts such as Lowes and Gruneau point out that the major focus by the media and politicians is given to the sponsors of the sport events, the property owners of the sport complexes and the middle class spectators of such an event who have spending power. Hence, the interests of the lower middle class people of that region are not given much importance. Especially for spectacular sport events, the interests of the minorities are ignored to a great extent by the government. A scenario often emerges too, wherein the corporations or developers of the sporting event get public subsidies from the government; however the same government retrenches the spending of social welfare. Trevor Slack( 2003, p. 290) states 'One central question that arises when considering sponsorships involving socially stigmatised products such as those reviewed here is the appropriateness of government regulation. There is a growing body of research on the implications of product usage for tobacco, alcohol and gambling. Moreover, there is also a growing body of research on the effects of advertising for such products, where messages contain selling propositions and other imagery.' As such, the participation of people in sporting events is on the rise. Sporting events such as walking, swimming competitions and personal fitness events witnesses a number of amateurs who want to try out their luck in that event. During a particular sporting event, the sale of related sporting equipments shoots up. The sale of tennis and football goods during the commencement of Wimbled and English Premiere League naturally increases. Merchandise such as sportswear is one of the highest selling commodities in the commercial market as well. Janet B. Parks et al (2007, p. 412) states 'Sport sociology has a number of implications for sport managers. We have already discussed how individuals face challenges, both on and off the court, and in so doing gain feelings of self worth and empowerment. We have also examined broader social issues like the various (and harmful) ways in which mainstream media portray female athletes, how racism is perpetuated throughout the sport world, and how homophobic stereotypes put coaches and athletes at great risk personally and professionally.' The sports industry can be broadly classified in three categories: Public, Voluntary and the Private. The public sporting sector is usually supported by the local authorities. The sector is subject to funding and taxation. The public sector facilities people form the local community to participate in sporting events which doesn’t require a high level of physical fitness. The participants generally pay for fun and recreation. The motive of public sector sporting events is to keep the community fit and happy, hence the primary motive isn’t making profits. The private sector sporting organisation has two primary objectives, making commercial gains and providing sporting service to the community. Entertainment venues such as the Wembley Stadium or sport goods manufactures like Adidas Stores and Nike Town fall under this category. These private sector enterprises make a significant social contribution too, by creating jobs, paying taxes and earning foreign currencies. What’s more, they even give back to the society by sponsoring spectacular sporting events and competitions. The third and the largest sector in the United Kingdom is the voluntary sporting sector. The voluntary sector comprises of small, medium and large scale trans-national corporations who which support big sporting events as well as the local community. Sporting events organised by them range from tennis, cricket and rugby to football, walking and canoeing. There are hundred of managers and volunteers who work round the clock for organising mega sporting events, with little amount of remuneration. In a voluntary sector sporting event, the private sector such as a stadium owners offer the venue whereas the private sector like a sport goods manufacturer provides the sponsorship of the sporting event. Trevor Slack (2003, p. 28) states 'In common developments in the United States and the UK the links between sport and commercial interests have progressively strengthened. The involvement of corporations in sponsoring individual athletes, specific events or complete competitions has steadily increased, paralleling the growth of television ownership in the post-war period.' There are several debates about the implications of major sporting events within the political, social, economic and ideological purview. Many scholars believe major sport events serves as a form of economic and social regeneration. The reports from Measuring Success 2, a UK based company showed that sporting events are linked with strong media and economic activity. However the key question remains unanswered: Which sections of the community does benefit the most during, before and after such huge sporting events. Furthermore, in gigantic sport events such as the Olympic Games, one of the main arguments is pertaining to “Growth Machine” versus “Social Redistribution”. As it often happens, during a spectacular sport event, the local community is very excited, however after the sport event ends, questions are raised on how much impact that sport event had on the regional economy and the local community. From a perspective of economics, sports events can be viewed as a medium through which urban regeneration strategies can be created by cities. From a sociological point of view, it serves as a tool for developing urban communities and also a tool for reducing crime and social exclusion. A number of researchers believe that link exists between huge sporting events and variables such as social participation, good quality life, employment, self esteem and work productivity. It’s however not proven by extensive research whether such links actually exists or not. Scholars Gratton and Henry argue that the researches which have been conducted during major sporting events were extremely prejudiced since they were conducted on the behalf of interested parties, and not for the sole purpose of doing an unbiased research. The International Olympic Committee (IOC) and the FIFA are two of the biggest sporting organisations of the world. The government s of many countries knows how economically and socially significant an event such as the Olympic Games or the Soccer World Cup will be for the country. That is why they never fail to show their extreme hospitality to these sport committees. From deploying the President, diplomatic heads and movie stars of the country to spending millions of dollars on the sporting infrastructural development of a region, they leave no stone unturned when it comes to humbling themselves before these committees. As and when the government gets the contract of hosting the Soccer World Cup or the Olympic Games, they take the assistance of two primary agencies: the media and the volunteers, for promoting the sport event. The media play an indispensable part in marketing the event, whereas the hundreds of volunteers provide the sport necessary for running the games without any hassle. The government plays a crucial role in the success of a major sports event in a particular region. First of all, the government decides the legitimacy of certain sporting practices, thereby determining the interest of the sport consumers of that region. Secondly, the government serves a bridge which connects various authorities and agencies such as the voluntary sport organisations, the local community and the trans-national corporations. Although it is evident in the sporting events of today that the governmental role is not direct, the government still has a huge effect on big sporting events indirectly. This is due to the fact that agencies such as the local community and the trans-national corporations are very dependant on the resources of the state. Graham Scambler (2005: 189) states that it’s possible fully understand the impact of sports mega events by using the Jigsaw Theoretical Model of sociology suggested by the works of Bhaskar and Habermas. This model integrates five aspects: Tribalism and the connection with ethnicity, gender relations and patriarchy, the class relations, status relations and honour. This model is a brave attempt at understanding the critical sociology of the world of sports. Janet B. Parks et al (2007, p. 233) 'Social class can sometimes place invisible boundaries on our choices by delineating appropriate and inappropriate behaviour. Social class often serves as a referent when choosing to participate or not to participate in a particular sport. We tend to associate certain sports with participants of a particular social class. Golf, sailing, and polo, for example, are often associated with upper-class participants, whereas bowling and pugilistic sports such as boxing are more likely to appeal to working -class participants.' The sponsorship money for sporting events generally originates from the private sector, comprising of translational corporations mainly. The advertisers sponsor their favourite teams in an event and the advertisement of the sponsors generally appear on the uniforms of the sportsmen or the signboards surrounding the sporting arena. For trans-national corporations, profitability of their sponsorship is dependant on the total funds collected by their sponsored team or event, through the means of trading and fundraising. Hence, for trans-national corporations to make a profit, the funds need to cover the cost of sponsorship and reach the organizations targeted profit set for the particular sporting event. For a number of years, sociologists did not pay heed to the social significance of sports and grand sporting events. The intrinsic quality of spectacular sports events of changing the fabric of a society was long overlooked by the sociologists. However, sociologists have begun to realize the role sporting events play in the social life of people. Sporting events were regarded as commercialized and ritualized spectacles which comprised of physical performances for a kind of expressive performance. Two features associated with sports events were the disruption of everyday routine that sporting events created and the social status that sporting events affirmed. Sociologists now also consider major sports events to be intrinsically connected to the modern capitalist society. Huge sports events such as the Summer Olympic Games and the FIFA Soccer World Cup provide the society with a rich cultural resource, assisting the global society to reflect upon their identities. More importantly, spectacular sports events serve as a resource for constructing a social life which is more meaningful in the midst of a rapidly changing societal environment. Grand sporting events also act as an important element which joins different nations with different cultural backgrounds to orient them around a global society. Trevor Slack( 2003, p. 251) states 'The Reagan and Bush governments of the 1980's and early 1990's, characterized by their assault on public expenditure, provided an opportunity to assess the relative security of sport and PE within the school curriculum and budget. One of Reagan’s major public expenditure reforms was to cut the scale of federal grant to states and to consolidate a large number of service -specific federal financial transfers to states into block grants, thus leaving the states with the responsibility of determining their allocation between services.’ In the UK, the 2002 Manchester Commonwealth Games and the upcoming 2012 London Olympic Games had a major economic, social and political significance. Compared to the FA Cup Final which is only a one day event, the London 2012 Olympic Games will have a comparatively larger impact on London’s social and economic climate. Hence, the social impact of sporting events depends on the scale of the event. Especially the London Olympic Games will greatly improve East London, with the provision of almost 5000 new houses. The Games will also create about 10,000 new jobs, many of which will directly serve East London’s economy. Trevor Slack (2003, p. 291) states ‘Finally, in addition to the role of government and the accountability of sport organizations, what role does the sport consumer play in this equation. Data suggest that public opinion is concerned to various degrees about the health and social ramifications of tobacco, alcohol, and gambling but does not favour government regulations of sponsorship; like wise, it appears that people appreciate the financial benefits of sponsoring revenues. However, it remains to be seen whether general public will want to help absorb the economic consequences of social problems created by people who use/abuse the products promoted through sport just so these sponsorship revenues can subsidize sports organizations and their facilities.' The research and analysis of huge sporting events is a field which is in its nascent stage but it is developing in leaps and bounds. While studying the social function of sporting events, researchers must keep in mind the impact of sponsorships, private and public financing of the events, communication and over-dramatisation of the events by the media and large corporations, and of course the vital role of the state and national governments in the administration and promotion of the spectacular sporting events. Sporting events serve an essential social function, and they help in stimulating new social movements. All in all, the field of research specialising in sporting events from the sociological standpoint is advancing and will continue to advance in the future. Bibliography Allison, L. ed. (2005) The Global Politics of Sport London: Routledge. Amis, J. & Cornwell, B. eds. (2004) Global Sport Sponsorship Oxford: Berg Bale, J. & Maguire, J. (eds.) (1994) The Global Sports Arena London: Frank Cass Gratton, C. & Taylor, P. (2000) Economics of sport and recreation London: Routledge. Ch 6 Jennings, A. with Sambrook, C. (2000) The Great Olympic Swindle London: Simon & Schuster Maguire, J. (1999) Global Sport Cambridge: Polity Parks, J.B., Quarterman & Thibault L(2003) Contemporary Sport Management. Human Kinetics Publishers Roberts, K. (2004) The Leisure Industries Basingstoke: Palgrave. Chs 1-4 6-7 Roche, M. (2000) Mega-events and Modernity London: Routledge Rowe, D. (2004) Sport, Culture and the Media London: Open University Press 2nd edition Rowe, D., Lawrence, G. Miller, T & McKay, J. (1994) 'Global sport? Core concern and peripheral vision' in Media, Culture & Society Vol.16, No.4 Silk, M. et al eds. (2005) Sport and Corporate Nationalisms Oxford: Berg. Slack, T. ed. (2004) The Commercialisation Of Sport. London: Routledge. Read More