Sport as Global Entertainment Chris Gratton Sport Industry Research Centre (SIRC) Sheffield Hallam University UK.
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Sport as Global Entertainment
Chris GrattonSport Industry Research Centre (SIRC)
Sheffield Hallam UniversityUK
Prior to 1960s sport was predominantly local activity Broadcasting rights income, government funding of
elite sport, and sponsorship income were negligible Sport market dominated by mass participation sport
with the voluntary sector the main supplier Elite sport mainly amateur with exception of
professional team sports (where rewards were modest)
History: Sport Predominantly Local Activity
Increasing importance of international sporting competitions creating need for national policies and strategies for elite sport
Increasing visibility of these competitions through television
Sport for all movement recognising health and social benefits of sport for all creating need for national policy for mass participation sport
National agencies for sport policy created Increasing importance of government in sport
1960s, 1970s: Rise of National Sports Markets
Post 1980s: Globalisation of the Sport Market
Globalising Forces: Increasing globalisation of media coverage
of major sports events (e.g. Olympics, Soccer World Cup)
Global recognition of top athletes Association of these athletes with global
sports brands (e.g. Nike, Adidas)
Characteristics of Global Sports Market Escalation in price of broadcasting rights for
global sports events. Global marketing of major sports products by
using images (not words) recognisable worldwide Global sports celebrities most important part of
these images Escalation in price of sponsorship deals for both
events and athletes by both sport (e.g. Nike, Adidas) and non-sport (e.g. Coca-Cola, McDonalds) sponsors
TV
London had a Global TV audience of 4.8 million compared to:
– - Beijing 4.7 million
– - Athens 3.9 million
– - Sydney 3.7 million
New Media London2012.com became the world’s
most popular sport website with 431 million visits
IOC’s website attracted 16 million visits up from 10.6 million for Beijing
London 2012’s social media sites (Facebook, Twitter and Google +) attracted 4.7 million followers
Countries broadcasting the Olympics
Olympic Summer Games
1936 Berlin 1
1948 London 1
1952 Helsinki 2
1956 Melbourne 1
1960 Rome 21
1964 Tokyo 40
1968 Mexico City n/a
1972 Münich 98
1976 Montreal 124
1980 Moscow 111
1984 Los Angeles 156
1988 Seoul 160
1992 Barcelona 193
1996 Atlanta 214
2000 Sydney 220
2004 Athens 220
2008 Beijing 220
Olympic TV rights fees (US$-million)
1960 Rome 1
1964 Tokyo 2
1968 Mexico City 10
1972 Münich 18
1976 Montreal 35
1980 Moscow 88
1984 Los Angeles 286
1988 Seoul 402
1992 Barcelona 636
1996 Atlanta 898
2000 Sydney 1,332
2004 Athens 1,494
2008 Beijing 1,739
2012 London
2,569
Distribution of revenues from broadcasting rights
IOC LOOC
1948 – 1968 1-4% 99-96%
1972 – 1980 10% 90%
1984 – 1992 33% 67%
1996 – 2004 40% 60%
2006 – 2010 51% 49%
2010 --------LOOC receives a guaranteed amount
IOC Broadcast Rights Revenue
The total money income the IOC received from its share of the Beijing 2008 Games broadcasting rights income ($0.89 billion) was 500 times more than its share of the broadcasting rights income for the Munich 1972 Games ($1.28 million)
Beijing received $0.85 billion, just over 50 times more than Munich
IOC Evidence
Olympic Charter: which requires that the IOC take 'all necessary steps in order to ensure the fullest coverage by the different media and the widest possible audience in the world for the Olympic Games.'
At the Beijing Olympics live Olympic Games in the UK content amounted to 5,000 hours covering 28 sports.
The BBC broadcast 240 hours of live content from Beijing or just 4.8% of the total. That is, 95% of the Olympic Games content was not broadcast to the UK viewing public.
FIFA Evidence
FIFA's argument in relation to the World Cup was that they were happy for part of the tournament to be listed (eg opening match, matches of home nations, semi finals and final) but they preferred a model operated in some other European countries (eg France) where a partnership between free-to-air and Pay-TV broadcasters shared the tournament.
FIFA Evidence
Loss of broadcast revenue was FIFA's main concern (unlike IOC's argument relating to lack of coverage)
2007: event income accounted for 89% of FIFA revenue with the bulk of this coming from the sale of broadcasting rights to the 2010 World Cup
Football League attendances 1947 - 1985
15000
20000
25000
30000
35000
40000
45000
47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85
The Future of Football 1985
“Football will no doubt survive in British culture in one form or another. It will remain a strength in regions where traditional male working-class culture persists.......Perhaps football belonged to an earlier phase of industrialisation and has only a tenuous place in post-industrial society”
Chas Critcher
Football League attendances 1986 - 2000
15000
16000
17000
18000
19000
20000
21000
22000
23000
24000
25000
26000
86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000
The cost of the rights to live league matches from the top division in England, 1983 to 1997
Start date of the contract
1983 1985 1986 1988 1992 1997Length ofcontract(years)
2 0.5 2 4 5 4
Broadcaster BBC/ITV BBC BBC/ITV ITV BSkyB BSkyB
Rights fee(£m)
5.2 1.3 6.2 44 191.5 670
Annualrights fee(£m)
2.6 2.6 3.1 11 38.3 167.5
Number oflive matchesper season
10 6 14 18 60 60
Fees perlive match(£m)
0.26 0.43 0.22 0.61 0.64 2.79
Broadcast Rights Fees for Sport
The single biggest influence on the economic position of English Premier League football is the increase in income from the sale of domestic broadcasting rights:
1985 annual income from TV, £3 million 1997 annual income from TV, £170 million 2001 annual income from TV, £540 million 2008 annual income from TV, £791 million 2010 annual income from TV, £823 million
Premier League TV Rights 2007-10
BSkyB 92 matches £4.76 m per game (£2.47m in 2004-7)
Setanta 46 matches £2.8 m per game
Total UK rights £1.7 billion
Overseas rights £625 million
Premier League TV rights
2013-16
UK Rights (BSkyB/BT) £3.4 billion
Overseas Rights £2.5 billion (212 countries)
British Sky Broadcasting
Satellite Broadcasting Company set up in late 1980s Massive losses in early years, and by 1992 still making a
loss with only 1.5 million subscribers In 1992 bid £304 million for Premier League Football TV
rights 1997
– - Europe’s most profitable broadcaster with profits made at £8 per second
– - Market capitalisation of £10 billion– - 7 million subscribers; in 2013, 10.4 million subscribers
Over 50% subscribers say sport is main reason for subscription
Over 50% operating costs are sport-related
Economic impact of Overseas Visitors Stadium Visitors: 1.47 billion Euros
Public Viewing Visitors: 1.09 billion Euros
Total: 2.56 billion Euros
Average per match: 40 million Euros
Conclusions
There is no doubt that sport is global entertainment
Within a fragmented television landscape where much is recorded, safe and predictable only sport offers uncertainty, risk and ‘liveness’
Most of all live sport even on television has the ability to generate powerful emotions and this drives the global demand for sport
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