The Influence of Commercial Sports to the Society - Coursework Example

The Influence of Commercial Sports to the Society Sports Business: The Profits and the Society Traditionally, sports were played inthe market streets, or at home. However, currently sports are considered a formal source of income with most teenagers globally contemplating and exercising on how to venture into a given field. The incoming research will investigate the influence of commercial sports in modern day lives. The study will examine the sports business structures, zeal for the field and the subsequent financial reward. From a vantage point, developing sports as a form of a business has with time had it’s on perceived positive and negatives. Many variables are still evolving all geared towards establishing the nature of sports business. This section will examine issues facing sporting as a business, as well as perceived positives and negatives of the business. Predominantly, sports infrastructures, hosting of major sports events and ongoing competitions have had huge investments, jobs, infrastructures, advertisement, kitting and accommodation. Nakazawa (2010: 43) believes that sports are an important part of the global culture with an industry worth hundreds of billions of dollars. Hence, the economic power of international sports organizations, non-sports organizations has evolved in the business and finances of sports. Ghosh (2010: 180) factors that corporations and media conglomerates are eager to invest financially in sports properties in order to enhance the visibility of their product and services and their profits. Issues arising from the economic forces deal with the questionable fate of certain sports that do not provide reasons, for popularity and visibility, generate enough profits for the athlete. Likewise, sports agents have not been left out in the challenge of managing the business. Alonso and O’Shea (2012: 17) believe that key issues and problems are associated with sports agents that have been visible more at the professional than collegiate level. As well, even with the industry focus shifting to the professional levels, Shin (2010: 352) is concerned with the ability to involve athlete representation at the management level. Corruption has also been a key factor in the industry (Bill, 2009). Athletes have often succumbed to their senior professionals involved in management. Similarly, political forces refer to the governance of sports and the agencies that have power over the delivery of the event to the market. At an international level, sports are governed by a complex network of organizations including single or multi-sports organization. International bodies include FIFA, IOC, WADA, and IAAF. Despite their efforts to provide sanity in making sports as a lucrative business, still there are challenges that hamper the proper development of the business. Similarly, social forces refer to the power of sport to address social inequalities in various domains such as international development, gender and race relations. Reflectively, sports have served as a service to uplift disadvantaged regions of the world. Sports have also serviced as a platform to redress gender inequalities in some societies. Thus, its wide business scope is guaranteed. However, efforts to engage such attributes positively have often been overtaken by profit ambitions. From the above justification, there are merits and demerits associated with sporting as a professional business engagement. Each type of business structure has its own entity of the presentation. Shin (2010: 352) found out that a sports manager is interested in opening up sports-related business, such as bowling alleys, miniature golf courses, roller-skating rinks, and health clubs often face a significant amount of challenges. Each business is faced with liability, access to capital challenges, tax treatment, managerial input and control and ease of formation, all which vary among the different business structures. Supportively, Carenys and Sales (2012: 115) indicate that the type of business structure a sports business adopts greatly influence short and long-term operations. Conventional sports business formation includes sole proprietorship, the limited partnership, the general partnership, the S Corporation, the C Corporation. In order to enhance the retention rates of existing business, authorities pass legislations to make business structure choices that are more favourable. The limited liability corporation LLC as well the limited liabilities Partnership LLP ensures that the first advantages and disadvantages are commonly associated with the sole proprietorship, limited partnership, and general partnership. As noted, there are several types of business entities when it comes to sports. In case, the business is a sole proprietorship. There are primary advantages, which include total control in the overall decision making, ease of formation, great flexibility, and individual retention of profits, reduced government, legislative restrictions, as well as the ability to maintain confidentiality. However, in a sole proprietorship, there are limited accesses to capital, unlimited liability, and limited longevity. On the other hand, in a general partnership type of sporting business, there is greater access to capital than the sole proprietor. Zimbalist (2006: 49) as well argues that the business face enhanced managerial talent than the sole proprietor. Similarly, the business will merit from pass-through taxation benefits. Equally, in a sole type of a business, there are primary advantages of greater access to capital, more enhanced managerial talent than the sole proprietor and passing through taxation benefits (Taylor, 2011). However, the business faces limited longevity, joint and several liabilities, limited capital in comparison with the corporation and limited managerial talent in comparison with the corporation. On another hand, if the sports entity is a Limited Partnership, the business faces a number of merits. This includes ability to generate needed capital. Limited partners provided with a diversified portfolio and retained pass-through tax benefits for limited partners. However, the business faces inability of members to participate in management (Bill, 2009). In addition, in an S corporation, there are primary merits and demerits. Merits include limited liability, ease of raising capital, single taxation, ability to secure better talent and avoidance of alternative minimum tax. However, the primary disadvantages include limited to a size of 75 shareholders, with only one type of stock issued by an entity. Similarly, there are limited employee benefits deductions of the employee if shareholders own less than 2%. Now depending on the structure of the business, it is clear that merits and demerits influence on the business positively or negatively. The most sporting entity is either confirmed to a given choice of business. Given the demerits in each case, the business can face specific financial hardship. Serious problems include taxing. For instance, years ago, Scottish top tier football club, Glasgow Rangers was relegated to the fourth tier for the failure of submitting tax returns. Given that professional sports rely on the talents and abilities of mostly - young men, who are economically disadvantaged, one will note that increased revenue and professionalism automatically motivates participation at the grassroots level. Bailey and Reid (1993: 43) indicate that if participation at the grassroots level is ignired, the elite performance, generally better up. Essentially, athletes are being asked to deal with the ever increasing complexity required the level of professionalism in organization procedures and systems. Increased sports and the professionalism have increased participation at the grassroots level. Major factors that have continued motivating participation at the primary levels include diversification, individualisation, and marketisation. In particular, Swayne (2011: 93) believes that diversification has increased opportunities, which are brought about by changes in traditions sports. Likewise, as far as individualisation is concerned, the society has become more concerned about individual participation (Coakley and Pike2009)). Finally, marketisation has encouraged commercialisation as a sporting market which has ensured to focus increasingly on raising revenue and profits. Opponents would argue that star player and their agents receive too much of the money it sports. In fact, there has been an argument that the paying player means that less money goes to the less glamorous areas of sport, such as encouraging sports at grassroots levels, as well as less-wealthy fans have to pay for the watch in their favourite sports. This big money at stake in professional sports affects the sport. Wong (2010: 63) factors that these young stars may have had few opportunities to get an education, as their young adult years have been spent in attempting to get into the sports. Hence, there is huge pressure on young athletes, many of who do not come from wealthy backgrounds. However, there have been questions on whether people would argue that athletes who are paid so much money have a duty to act responsibly. Globally, millions of people would want to be like them. Hence there is the need to put a price tag on them. Currently, likes of Mayweather, Wayne Rooney, Christiano Ronald or Kobe Bryant are global leading icons who most young people emulate. As well, athletes happen to be one of the largest philanthropists of recent times. Although recreational sport played for fun bears the same relationship to a commercial sport as an amateur dramatics, it is notable that the commercial sport has far reaching impacts on the society than a recreational sport. As the study is continuing to unleash, the practice of sports can be viewed from different perspectives. Holowchak and Reid (2011: 45) believe that it is all about participation, playing the game for its own sake. Thus the participation for playing the game will naturally come for its own sake. Reflectively, sports practice comprises two distinctive but interconnected strands. Hughson (2012: 56) contends that the first intra-strands are community sports, which comprises of participant-based-sports geared around the local club, the simple organizational structures, and the volunteer administrator. As well, there are a few talented young players which can be applied as a springboard for entry into the world of elite sport development, with most club members focusing on the energies on interclub competition, having fun in building the teams in social networks. Kaser and Oelkers (2001: 92) also acknowledge that the second strand is professional sport is cantered on the elite performer and geared around spectators who provide the catalyst for sports commercial development. This helps attract media coverage, which in turn provides a promotion impetus for further spectator interest. There are still justifications on the drive for success and commercial gain of the sport in having an effect on the integrity of the sport. Garret (2004: 1822) establishes that the opportunity for drug abuse and performance enhancement has increased, and sports have had to move with that to control it. Sports marketing techniques have as well advanced to sophisticated controls all geared towards increasing popularity of the initiative. These external commercial activities improve the overall needs required in order to put an event successfully. The future is indicative of the importance that is placed on the sport. For that reason, the popularity of sports events in the society has led to the increased commercial interests and greater competition. Inversely, the popularization of the sports has encouraged more participation from local communities. Reflectively, the scale of sports events industry, this chapter has considered various conceptual dimensions that are structures of competition and stakeholders engaged. Chhabra (2007: 214) lists stakeholders as organizers, suppliers, competitors, and spectators. These events seek to expand the overall participation of various roles of stakeholders play in important in understanding the relationship that the events managers have with each stakeholder group. Athanasopoulou et al., (2013: 104) argue that the management of events is clearly and historically important, given the need for the moral discipline of events in management. These are terms of certified education and writing. For that reason, there are relationships with these issues that arise out of them. Conclusively, the advent of commercial sports has with time added value to recreational sports and entertainment industry. Sports are now a multi-billion industry with far-reaching stakes in many other industries. The research has focused the relationships between commercial sports and the grassroots level of participants. It is clear that sports have a subsequent influence, just like music, religion or politics have. In fact, it is clear from the research athletes have assumed a high position in the society for their ability to do outstanding acts (Coakley and Pike, 2009). In summary, future research should examine the strategies where athletes are considered as principles stakeholders in managing the business. As such, research should focus on schemes of improving an athlete academic background. Bibliography ALONSO, A., & OSHEA, M. (2012). "You Are Invisible": Marketing Professional Sports in the Technology Era. Journal of Sports Media, 1-21. ATHANASOPOULOU, P., KALOGEROPOULOU, D., & DOUVIS, J. (2013). Relationship quality in sports: A study in football teams and fitness centres. Sport, Business and Management: An International Journal, 100-117. BAILEY, S., & REID, G. (1993). Contracting out municipal sports management: The British experience. Glasgow: Glasgow Caledonian University, Dept. of Economics. BEECH, J. & CHADWICK, S. (2013) (2nd Eds), The Business of Sport Management. Pearson BILL, K (2009), Sport Management. Learning Matters CARENYS, J., & SALES, X. (2012). Tailoring performance management systems: A sports merchandisers case. Sport, Business and Management: An International Journal, 115-126. CHHABRA, D. (2007). Analyzing Stakeholders Perceptions of Sports Tourism. Tourism Analysis, 213-219. COAKLEY, J & PIKE, E. (2009), Sports in Society: Issues and Controversies. McGraw Hall GARRETT, W. (2004). Presidential Address of the American Orthopaedic Society for Sports Medicine: It Hurts When I Do This. American Journal of Sports Medicine, 1822-1824. GHOSH, I. (2010). Marketing in sports: A tool for developing sports. British Journal of Sports Medicine, I80-I81. HOLOWCHAK, M., & REID, H. (2011). Aretism: An ancient sports philosophy for the modern sports world. Lanham, Md.: Lexington Books. HUGHSON, J. (2012). The role of sports in the formation of personal identities studies in community loyalties. Lewiston, N.Y.: Edwin Mellen Press. KASER, K., & OELKERS, D. (2001). Sports and entertainment marketing. Cincinnati, Ohio: South-Western Educational Publishing. NAKAZAWA, M. (2010). A study on the structure of products of commercial sports facilities. Journal of Japan Society of Sports Industry, 23-36. SHIN, J. (2010). Sport Business Strategies and Developmental Tasks of Sports Marketing Agencies in Korea. The Journal of the Korea Contents Association, 352-362. SWAYNE, L. (2011). Encyclopedia of Sports Management and Marketing. Thousand Oaks: SAGE Publications. TAYLOR, P, (2011), Torkildsens Sport & Leisure Management, Routledge WONG, G. (2010). Essentials of sports law (4th ed.). Santa Barbara, Calif.: Praeger. ZIMBALIST, A. (2006). The bottom line: Observations and arguments on the sports business. Philadelphia, PA: Temple University Press. Read More