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CHAPTER 10: Commercialisation and the media
Factors leading to the commercialisation of contemporary
physical activity and sport
Key definitions
- Advertising is a means of communication with the potential users of a product or service.
- Commercialism is the treating of sport as a commodity, involving the buying and selling of assets with the market place as the driving force behind sport.
- A commodity is something that is useful , has value and that can be turned to commercial or other advantage.
- An endorsement is a deal whereby a company will pay an individual for its brand to be associated with that individual.
- The golden triangle links and provides an overlap between the media , commercialism , and sport and its governing bodies.
- Merchandising refers to a variety of products available for sale and the display of those products in such a way that stimulates interest and entices customers to make a purchase.
- Professionalism is the practising of an activity, especially a sport, by professional rather than amateur players.
- Social media is the use of websites and applications that enable users to create and share content or to participate in social networking.
- Spectatorship is the act of watching an event, especially a sports contest.
- Sponsorship is when a person or organisation pays the cost of an activity or event.
- Role model is a person who someone admires and whose behaviour he or she tries to copy.
The historical and social context of commercialism
The evolution of commercialisation in sport has occurred through the past three centuries.
This began with tradesman donating prizes in kind at holy days to highly organised rural sports often sponsored by local publicans. Such sponsorship was supplemented in the eighteenth century with noble patronage or by a town or district that had local government.
This led to increased gambling and spectatorism , which in turn encouraged event organisers to seek further commercial development.
By 1900 the tradition had produced folk heroes , national competition networks , international championships and the popular interest of selling thousands of newspapers daily and bringing whole cities to a standstill.
Broken time payments
Opportunities for working classes to participate in sport were restricted by their long six-day working weeks and Sunday Sabbatarianism. In the UK, the Factory Act of 1844 gave working men half-a-day off, making the opportunity to take part in sport more widely available. Working class sportsmen found it hard to play top level sport due to their working hours.
On occasions, cash prizes , particularly in individual competitions, could make up the difference in loss of earnings, with some competitors also wagering on the outcomes of their matches. As professional teams developed, some clubs were willing to make ‘ broken time payments ’ to players, i.e. to pay top sportsmen to take time off work.
Broken time payments 157
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Broken time payments figure 10.1 – early rugby from 1850
As attendances increased, it became feasible to pay men to concentrate on their sport full-time.
In the late 1880’s, the industrial North of England had many working class men (mill workers and miners), who started to play rugby (figure 10.1). The loss of earnings that such a worker experienced whilst playing rugby on a Saturday was considerable and so became a major inhibitor. Some clubs began to make ‘ broken time payments ’ as compensation for the loss of income.
Many in the RFU (North and South) simply refused to accept the concept of broken time payments.
A notable development was in 1893 when clubs in the industrial north of England put it to the Rugby Football Union that players who worked should be given ‘broken time payments’ to compensate them for pay lost while representing their club.
Many of the Northern administrators were ex-public school and strongly defended amateurism. The eventual outcome in 1895 was a split between twelve northern clubs who decided to break all links with the union and form the Northern Rugby Football Union (NRFU) on amateur lines, but with the acceptance of the principle of payment for broken time.
In the 1896/7 season the Northern Union introduced a challenge cup with all teams allowed to enter which caused great excitement. The final was held on May 1st 1897 between Batley and St. Helens at Headingley. Batley won 10-3 watched by between 13,000 to 14,000 fans who paid £620 (gate money) between them.
It was not until late August 1995, that professionalism in the Union game was agreed. The IRB did not really have a choice, with a lot of money beginning to flow into the game from advertising and TV. It was considered to be a complete injustice (by the players) that the players themselves were not able to share in this bounty.
Spectatorism
A spectator sport is a sport that is characterised by the presence of spectators, or watchers, at its competitions (figure 10.1). A spectator is a person who watches an event. figure 10.2 – the Heathens in about
Victorian Sport (1830 -1901) 1880
- Mass spectator sport began to take off.
- For the masses, Saturday afternoon free from work was the turning point, enabling them to play and spectate.
- For example, the Heathens (Newton Heath Football Club) - home ground at Belle-Vue Stadium Manchester (figure 10.2 shows large numbers of spectators surrounding the pitch).
- ‘The Heathens’ became a professional football team in 1885 and adopted its present name in 1902, Manchester United FC.
Edwardian sport (1901-1918)
- Organised sporting involvement expanded rapidly across all classes.
- Male working class influence increased, notable for football in England and rugby in Wales.
- Working class women were largely excluded from sporting involvement.
- Sport was increasingly a matter of national concern.
- Commercialisation of sport continued with large numbers of spectators and increased number of professionals in major sports.
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Participation
Various trends account for the increase in these participation figures:
- More than 7.2 million women now play sport and do regular figure 10.4 – This Girl Can physical activity – 250,000 more than following the launch of This Girl Can campaign (figure 10.4) thus reducing the gender gap.
- More disabled and black minority groups are taking part in sport.
- The number of people over 16 playing sport once a week has risen to over 15.6 million.
- There is evidence that participation and sports spectatorship are symbiotically linked. Spectating at live sporting events appears to have complementary effects on participation and vice versa.
Commercialism and commodities
Sport commercialism and British social history are figure 10.5 – facilities as a heritage intertwined as witnessed by:
- The commercialisation of leisure pursuits during the eighteenth century.
- The growth in the spread of organised sport and physical recreation during the nineteenth century.
- The spread of television and the media coverage of sport in the latter part of the twentieth century and into the twenty first century.
The growth of commercial activity has increased participation and audience numbers, resulting in an improvement in sporting excellence (as witnessed by TeamGB’s results since the 2004 Olympic Games) and improved sporting facilities (figure 10.5).
The fact that governing bodies clung onto the concept of amateurism for so long, has in turn forced athletes into the arms of commercialism.
Sport as a commodity
Sport and its audience are sold as commodities to advertisers.
The high price of the advertising slots during major sport events is based on the capacity of the sport to reach millions of potential customers for any number of products. The audience benefits from an increase in televised sport.
Sport is a commodity which simultaneously has evolved from cultural and economic activity.
Rules and codification
To become a commodity, sport not only has to be producible but also to be reproducible within a standard format, yet maintain uniqueness for each game, match or event. This requires that particular games within sport are played under identical and stable rules in both amateur and professional sports.
For an introduction to this topic, refer to AS/A 1 OCR ISBN 9781901424911, Part 6, Chapter 14.
STUDENT NOTE
It requires the training of players to maintain the ethics of sportsmanship and the teaching of fair play , a basic underlying principle that underpins the role of sport in society.
The codification process was one of the first functions of early sports organisations and was important to amateurs.
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Merchandising 161
Spectators
Spectators consume the sport commodity over a period of time, with different degrees of intensity of consumption and in a variety of ways:
- Attendance.
- Broadcast in TV or radio, but mostly TV.
- Print, in tabloid newspapers.
- Word of mouth.
Today, the Olympic Games , soccer’s World Cup and Formula 1 motor sport dominate all other sports competitions, attracting audiences in their millions.
Sports labour
Both professionalisation and rule changes push sports organisations into becoming involved in the sport labour market and the development of elite sportspeople as commodities within the global labour markets. Hence they have an economic value and players and coaches are under pressure from stakeholders to deliver.
Advertising
Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them.
The selling or merchandising of products associated with sport is a major media objective. For example, electronic billboarding around an arena is aimed at the cameras. Advertising breaks on TV (although usually coincide with a break in play) attract large sums of money from the products they advertise.
These types of adverts not only get the general public interested in specific sports, but interest is also directed towards the advertised product.
Merchandising
In the sports merchandising business, the property of value to a team is their name, logo and sports stars.
figure 10.6 – MU merchandise Through sponsorship and merchandising agreements the licensee is able to manufacture goods with logos, trademarks and trade names of the team, for example Manchester United merchandise (figure 10.6). The licensees believe that with the goodwill of the fans, they will associate with their clubs’ identity and buy the merchandise.
A sponsor will expect to promote its products by using a performer’s image in return for financial support. A contract will be commercial and dependent on the star status of the sportsperson.
Advertising and merchandising are closely related concepts in the area of retail marketing and communications. Retailers use advertising to project a brand image and to drive traffic to retail stores or websites.
Merchandising is the strategic placement of products that attracts attention and contributes to sales once customers are in stores (figure 10.6 of the Man United shop).
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The golden triangle 163
Advertising, sponsorship and endorsement deals and figure 10.10 – Usain Bolt and Puma
the sports star
Puma is Usain Bolt’s largest sponsor (figure 10.10). In 2013, he signed an endorsement deal worth an estimated $10 million per year to remain with the company throughout his competitive sporting career. He is expected to earn $4 million annually to stay on as a brand ambassador following his retirement.
Advertising, sponsorship and endorsements are packaged together when contracts are exchanged between corporations and celebrity sports stars.
Figure 10.11 lists how advertising affects the sports star.
However, the motives of the commercial media differ from sport motives, even though some products may be seen to help sport in other than financial ways.
ADVERTISING
and the SPORTS STAR
sport exposure
sport funding
tax relief for advertiser
positive associations
product exposure
endorsement for performer
income for performer
equipment for performer
The sports performer is helped by: figure 10.11 – advertising
- Provision of equipment.
- Income.
The sports governing body or organiser is helped by:
- Sport funding, which can be used to for example promote grass roots sport.
- Positive associations between the product and the sport.
- Greater exposure of the sport to the public via the media.
The product gains by:
- Broadening the publicity given to the product.
- Tax relief for the advertiser, since the exposure involves a cost which can be set against tax.
In the face of the recent recession, several companies have withdrawn sponsorship because profit is their central motive.
Drug scandals have also had an impact on player’s earning, for example, Nike and TAG Heuer cancelled their sponsorship deals with Maria Sharapova after she failed a drugs test (page 144). The media have often sensationalised the lifestyle choices of a sports performer, and exert psychological pressure on high profile athletes through excessive media attention.
Sports have marketing managers and promoters to generate income and athletes have agents and managers to look after their finances.
figure 10.12 – the golden triangle
The golden triangle
The so-called ‘ golden triangle ’ (figure 10.12) links and provides an overlap between the media , commercialism , and sport and governing bodies. Without one, the other two cannot survive and increased media attention has led to sports becoming more exciting, leading to greater commercial sponsorship and greater participation in sport.
This key concept has been developed throughout this chapter.
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Role of the media and sport since the 1980s
MEDIA AND
SPORT
information
entertainment advertising
education
The roles of the media, in terms of sport, are fourfold (figure 10.13). figure 10.13 – media and sport
- The basic function of the media has always been to give information. Radio and television give immediate results, event descriptions and rankings.
- Education : the media inform , advise and critically analyse issues through explanation, discussion and debate. Terrestrial and satellite TV have documentaries which give coaching advice, explain the risk of drug-taking, and give post-event discussions on games.
- Entertainment : a TV programme will give experience and pleasure to an armchair spectator almost equivalent to the live event. Attending live events is expensive, hence the popularity of screens in pubs, clubs or parks near to the venues, (Henman’s Hill/Murray’s Mound at Wimbledon for example).
- Advertising : the selling or merchandising of products associated with sport is a major media aim. An example of this is a tennis player wearing a certain make of headband, sports shoe or shirt. Each club in both rugby and soccer displays sponsors’ names on its shirts. Electronic billboarding around an arena is aimed at the cameras. Advertising breaks on TV (although usually coincident with a break in play) attract large sums from the products being advertised.
The impact of the media on sport
The impact of the media on sport is extensive. They can promote balanced, active, healthy lifestyles and lifelong involvement in physical activity. This is via the people it presents, the way these people act and the messages they give. These messages could be given in children’s programmes as well as in adult news and documentaries.
Hence the media’s selective use of visual and written material can have a major influence. Most important is the balance of the message, not just the hero worship of sports stars, but help in recognising the problems as well as the pleasures of achievement. The media can give insight into the effort needed for success, and a belief in the ideal of fair play.
20th/21st century developments to ticket sales
Today media coverage of sport is widespread.
- By listening to commentators , pundits and watching replays , spectators, players and coaches improve their knowledge and understanding.
- Participation in sports covered by the media is always higher than for those that are not.
- Developments in the media are linked to commercialisation and sport.
- The media includes newspapers/magazines, radio and television broadcasting.
Newspapers
Today there are two types of press that are also available online:
- Popular tabloids , such as the Daily Mail, the Express, the Sun and the Mirror, focus on popular male dominated sports. Hence football, rugby and cricket are given great exposure.
- More high-brow broadsheets , such as the Telegraph and the Guardian, and tabloids the Independent (available online) and the i, cover a variety of sports and analyse sport in more depth.
Magazines are a distinctive media form in their close connection to the social lives of consumers, and cover specific sports enthusiasms, for example, Athletics Weekly.
Since 2014, in the newspaper industry there has been rapid digital growth, driven by readers. Digital newspapers and online versions of printed periodicals provide advertisers further opportunity to capitalise on a growing, smart, affluent, and digitally savvy audience.
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The influence of technology
- Social media has taken the world by storm. It has impacted the way we receive and share all kinds of news. Sports news is no stranger to social media and has had a large impact on sports journalism.
- Social media is creating new forms of communication between fans, athletes, teams and sponsors.
- Strategies include ‘ buzz ’ marketing which encourages existing fans to promote an event with offers that can be tracked through social media.
- Enhanced digital media aims to enhance the fan experience through multiple perspectives such as highlight repeats and commentary from pundits and experts who build ties with individuals and fan networks.
- The marketing objective is to develop brand awareness within sport and then go through the classic stages of adoption by developing an interest in participating in the sport, attending an event, buying a subscription or season ticket and ultimately developing close ties with the sports organisation and other fans.
- Online sports media (for example, Digital Sports Group - a UK digital network) connects sports fans and participants worldwide, featuring the latest news, expert opinions, results and fixtures and a variety of features. sport.co.uk is rapidly emerging as a major player in online sports media.
Sports journalists and social media
As sports journalists increasingly adopt social media so does the sporting industry. Sports news is no stranger to social media either and has had a large impact on sports journalism.
Three major global sports and sporting events with a lot of social buzz:
figure 10.15 – SuperBowl 2017
American football :
- There were 185 million interactions on Facebook about Super Bowl 2017.
- More than half of the commercials aired during the 2017 Super Bowl included some type of social hash tag.
Basketball :
- Two thirds of NBA players are on Twitter.
- 26 million tweets were generated about the NBA finals.
World Cup Soccer :
- 12.2 million tweets were generated by the opening game of the 2014 FIFA World Cup.
- 495 million posts, likes and comments were generated on Facebook.
- During the first week of the 2014 World Cup, Portugese soccer star Cristiano Ronaldo was mentioned 1.5 million times on Twitter between the US and Portugal.
Benefits of social media to the sports journalist
- Sports journalists experience many benefits from using social media outlets for reporting, such as interaction with their readers, listeners and viewers.
- Social media promotes the work of journalists.
- Social media can direct journalists to the stories that are the most important and most followed by sports fans.
Drawbacks of social media to the sports journalist
- There is pressure for the journalist to get information quickly and produce content through a variety of mediums.
- Sports journalists need to check social media regularly.
- There is increased competition from other journalist and bloggers.
- There is potential for negative interactions with readers, viewers, and listeners.
- There can be inaccuracies of data on social media outlets.
- There is a feeling of a non-professional attitude of journalist’s handling stories/news via social media. 73% of all journalists use social media to monitor their competition.
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The future of commercial sport 167
The arrival of pay-per-view
In the early 1990s TV broadcasting was shaken up by the arrival of ‘ pay-per-view ’ in the form of BSkyB. Their dedicated sports channels have since become the only place for some major sports to be seen.
Starting in 2006 the Irish company Setanta Sports emerged as a challenger to Sky Sports’ dominance of the British pay-TV sports market. Setanta’s UK channel went into bankruptcy administration and off the air in 2009. Between 2009 and 2013 Entertainment and Sports Programming Network (ESPN) made an attempt to challenge Sky Sports before its British operations were bought out by Sky’s current main competitor.
Pay-per-view
- Pay-per-view (PPV) is a type of pay television service by which a subscriber of a television service provider can purchase events to view via private telecast.
- The broadcaster shows the event at the same time to everyone ordering it (as opposed to video-on-demand systems, which allow viewers to see recorded broadcasts at any time).
- Events can be purchased using an on-screen guide, an automated telephone system, or through a live customer service representative.
- PPV has been introduced by BT Sport, a subsidiary of the former national telecommunications monopoly BT. Customers pay a monthly subscription for full coverage of Champions and Europa League matches when they sign up for this TV bundle.
- Having paid £897m for the rights to all Champions League and Europa League matches over three years, BT will show all 351 games live on a new channel called BT Sport Europe.
- With the rise of the Internet, the term Internet pay-per-view (iPPV) has been used to describe pay-per view services accessed online.
- PPV is most commonly used to distribute combat sports events, such as boxing, mixed martial arts and professional wrestling.
- There is a clear shift from cable TV to direct streaming that is accelerating many industries worldwide. For example, World Wrestling Entertainment (WWE) has partially cut its cable and satellite TV contracts to embrace Internet television, and this presents the WWE fans with a cutting edge, subscription-only streaming video service.
- The smart shift to the live sports pay-per-view business could bring in millions in revenue.
Growth of pay-per-view
The growth of pay-per-view can only go in one direction, as discerning sports fans follow their teams and thus contribute to what is expected to be an increase in growth over the next few years.
The future of commercial sport
- Sports are expensive to run and so sponsorship deals and additional publicity, via the media, benefit both performers and spectators, a win-win situation.
- Entertainment and consumption will be the major organising principles for the future.
- Financial profits and economic expansion will be the goals of most sports and corporations.
- The emphasis on entertainment will fuel the success of professional sports in forms of ‘ sportainment ’ TV which provides online streaming platforms.
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Commercialism, media and sport in today’s world 169
positive impact on sport negative impact on sport
the coach
can award contracts to performers which in professional sport gives him or her control over everything to do with playing strategy
sponsorship and the media pressure can be over-demanding of a coach
sponsorship can include coaches and enable travel to support performers at coaching camps and major events
an imbalance of salaries paid to coaches/managers of top professional clubs, such as soccer, and professional coaches/managers employed in amateur sports
the audience
increased investment improves quality of facilities, acquiring top players and entertainment eg cheer leaders to attract bigger audiences
excessive advertising could interrupt the viewing experience
certain sports (soccer, rugby, cricket, golf and tennis) are ring fenced into terrestial or free to view TV for primary events, therefore maintaining large audience for high status events (test matches, Wimbledon, cup finals etc.
pay-per-view TV can make some sports events expensive to watch
sports channels available (at a cost) for specific events low attendance at events which are fully covered on TV
media led developments lead to more variations to sport (e.g. twenty20 cricket - summer season for Rugby League) leading to greater opportunities for fans and more exciting games
there are inequalities of coverage (minority sports don’t get much exposure), thereby sports fans for that sport cannot see their favourite sport
technology, such as video screens and HawkEye for replays and match statistics, increase excitement, awareness and knowledge of the sport
more breaks in play can disrupt audience experience
commercial products are readily available for the spectator player kit merchandise is regularly changed and disfavoured by some supporters due to expense
if the performers are able to work better with sponsorship, entertainment levels should rise
event schedules are planned to maximise USA viewing figures and so may not be timely for the UK arm chair spectator or athletes tickets to major sporting events are expensive
the growth of commercial sport through exposure/coverage in the media has increased participation and audience numbers
ticket prices go up due to the popularity of club/team
sports media can promote balanced, active and healthy lifestyles
incorrect umpiring decisions are highly published in the media and so can be questioned by fans
digital media such as newspapers, online outlets and social networking are creating a digitally savvy sports audience
social media ruins the element of surprise as media outlets get the news out faster media over-exposure may put some fans off from watching an event the media and fans can twist and exaggerate stories
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Table 10.2 – positive and negative aspects of media coverage of sport
positive aspects of media coverage negative aspects of media coverage players or teams gain revenue from sponsors sponsorship companies usually only focus on high profile players or teams sponsorship can provide teams with improved facilities and/ or equipment
sponsors can control event timings to suit peak-viewing times
teams or players gain publicity and promotion players or teams can be restricted as to what products they can use sponsorship can elevate new sports into the limelight via media publicity
sports can be overrun with sponsors – thus losing the nature of the game more money for grass-roots teams NGBs forced to alter rules to make games more exciting - in order to generate sponsorship interest more exciting events given priority over other sport raises profile of the sport leads to a squeeze on amateur sport media will not support minority sports, or low profile sports such as badminton with less identifiable role models
Practice questions
Commercial sponsorships of sports are primarily motivated by commercial interest in: a. promoting a way of life based on consumptions and consumerism. b. developing a single worldwide standard of living. c. finding new ways to train workers who will produce goods. d. building sports that bring the world together for global competitive events.
The images and messages presented by sponsors of major sporting events tend to: a. dictate what people think. b. influence what people think about. c. be ignored by nearly all spectators. d. discourage consumption-based lifestyles.
Which one of the following does not represent positive aspects of media coverage of sport? a. sponsor can provide teams with improved facilities. b. more money for grass roots teams. c. sponsors can control event timing to suit peak viewing times. d. sportspeople gain publicity and commercial benefit.
Which one of the following best describes a positive impact of commercialisation on sport? a. performers are under pressure to perform well when injured. b. improved facilities for training and coaching through increased funding for sport. c. officials may become too dependent on technology. d. pay-to-view TV can make sports events expensive to watch.
A definition of sponsorship is: a. the act of watching an event, especially a sports contest. b. a means of communication with the users of a product or service. c. when a person or organisation pays the cost of an activity or event. d. a deal whereby a company will pay an individual for its brand to be associated with that individual.
Identify three factors that have influenced the commercialisation of sport within the UK. 3 marks
Discuss the advantages and disadvantages of commercialisation in sport. 8 marks
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