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Globalization of Sport

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by

Steve Postma

on 20 November 2012

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Transcript of Globalization of Sport

Globalization of Sport MAN 6937-003 - Dr. Brenda Richey - Steven Postma Agenda Brief Sport History Timeline Globalization
Sport for All
Sport for Revenue
Sport for All & Revenue Prehistoric Sport Archery & Javelin (64,000 years ago)
Sprinting & Wrestling (17,300 years ago) Ancient Sport Iraq (Wrestling - 3000 B.C.)
Egypt (Weightlifting, Athletics, Swimming - 2000 B.C.)
Greece (Olympics - 776 B.C.) Horse Racing
Fencing
Jousting Middle Ages Sport Mid 19th Century (Great Britain & United States)
Professional Sports in Industrial Towns
American Football (US)
Soccer, Cricket, Athletics (GB) Beginning of Modern Sport Revival of Olympics

1920s and 1930s
Increase in professional and collegiate sports Modern Sport - 20th Century Television and Corporate Sponsorship Driving Professional Sports and Olympics to New Levels

Owners and Managers Seeking Enormous Profits

Effect on Global Economy
$600B+ Industry Modern Sport - Current Sport for All Sport for Revenue “Sport has the power to change the world. It has the power to unite in a way that little else does. It speaks to youth in a language they understand. Sport can create hope where once there was only despair. It is more powerful than governments in breaking down racial barriers. It laughs in the face of all types of discrimination.”

- Nelson Mandela Revenues continue to grow at exponential rates

Global sporting competitions reaching new levels

Great opportunity for sport to reach developing and poor countries

Upcoming Events:
World Cup 2014
Olympics 2016
First SA Country Moving Forward Sport industry is a market in which people, activities, business, and organizations involved in producing, facilitating, promoting, or organizing any activity, experience, or business enterprise focused on sports. Brief Sport History Timeline The Industry ~$435B (US) & $600+B (Global)
Sport and Fitness Equipment
Apparel & Merch
Organized Sports
Ticket Sales Reasons to Globalize Ever-more challenging local market
Competition
Home Experience
Decreasing Disposable Incomes Solutions Work with Existing Leagues
Scheduling Challenges Opposition from Current Leagues
Opposition from Population
American Football vs. Futbol
Different Type of Fan Market
Understanding of Sport
Psychographics Untapped International Markets
Unique Product
Increase # of Fans
Increase Revenues Annual Revenue
NFL - $7.7B BPL - ~$4B Lack of Identification with Team
No Home Team Resistance from U.S. Market Slow Exposure
NFL International Series Strategic Exposure
Interactive Activities
Youth Leagues
Marketing Plans for Expansion/ Relocated Franchise

Draw of Benefits of Globalization World League of American Football

NFL Europe (1995)

NFL Europa (2006) Evolution World Structure Not Successful

NFL Europe = Small Growth






League Disbanded One Week After World Bowl XV
Attendance = 48,125 Performance Roger Goodell
Best Business Decision
Revamp International Strategy
$30M Loss each Season Need for Platform
Educate Population
Build Support Problems Identified Difficult Managing World League
High Costs
Geographic Separation
Different Markets Solution Build a Fan Base and Support
International Marketing
Promote Unique Product
Youth Programs
Interactive Opportunities Seek Slow Growth
Time to Understand Market
Start Creating New Fans (Youth)
International Series International Series Started in 2005 (to 2016)

Wembley Stadium

"Friendly" Game

Patriots vs. Rams
Attendance = 84,000 Fans To encourage and support the development of sport for all

To cooperate with the competent public or private organisations and authorities in the endeavour to place sport at the service of humanity and thereby to promote peace

To encourage and support the promotion of women in sport at all levels and in all structures with a view to implementing the principle of equality of men and women

To oppose any political or commercial abuse of sport and athletes Sport for All Sport for All Commission
Created in 1983
Human Right for All Individuals
Health and Social Benefits

Olympic Youth Development Center
2010 (Zambia)
Sport for Hope Program The goal of the Olympic Movement is to contribute to building a peaceful and better world by educating youth through sport practised in accordance with Olympism and its values. Sport for Revenue Incredible Revenues
2009-2012: $5 Billion
TV: $3.9 B
Sponsors: $1B Exponential Growth
50% Increase in Revenues Over Previous 4 Years Revenue Distribution The IOC distributes over 90% of its revenues to organizations throughout the Olympic Movement to support the staging of the Olympic Games and to promote the worldwide development of sport. The IOC retains less than 10% of its revenue for the operational and administrative costs of governing the Olympic Movement. Thank You! Q&A Right To Play's mission is to use sport and play to educate and empower children and youth to overcome the effects of poverty, conflict, and disease in disadvantaged communities. Mission Right To Play's vision is to create a healthy and safe world through the power of sport and play Vision Q & A Other Principles:

AT GRASSROOTS LEVEL
WOMEN AND SPORT
SPORT AND ENVIRONMENT
EDUCATION THROUGH SPORT
PEACE THROUGH SPORT
SPORT FOR ALL
Full transcript