Economic Elite and Sports: Investment in Stadium Construction, Major Events, Lotteries, Cost of Attendance and Sponsorship

This presentation discusses the economic elite's investment in sports, particularly in stadium construction, major events, lotteries, cost of attendance, and sponsorship. It highlights the economic importance of sports and the disproportionate share of wealth owned by the elite class.

Sociology of
Sports, Rec and
PA
Name of the Student
Name of the University
Course ID

Introduction
• Different social class exits
• Elites are small group
• Upper income groups
• Economic wealth gives additional edge to elite class
(Haggard & Kaufman, 2018).
• Use their power to increase wealth
• Current focus is on Sports

Economy of Elite
• Small but most powerful class in society
• Owns a disproportionate share of wealth
• Enjoy political power and privilege in the society
• Power elites
• Elites governing control in policy making (Aguiar &
Schneider, 2016).

How elites raise wealth
• Elites captures a significant share of economic wealth
• Study confirms eighty two percent of wealth generated in 2017
went to only percent of richest population globally.
• Do not depend on single source of income
• Invest income in areas of higher return (Brezis & Temin, 2016).
• Income thus increases by manifold
• Investment in national and international sports events.

Economic importance of
Sports
• Important components of socio-economic development
• Today’s sports events are different from that in the past
• Sports not has become more organized
• Events are now marketed and administered for business interest
• Execution of a major sport event benefits the economy in several ways
• Development of infrastructure, generates employment, attract foreign
investment and generates players and athletes (Guerra, 2016).

Sport and Wealth of Elites
• Sports
• Economic and social importance
• Important source of wealth generation
• Private investors take interest in investing in Sport (Yang
et al., 2017)
• Invest in sports
• National and international sports

Stadium Construction
• Important for hosting sports event
• Place or venue for outdoor sports
• Designed to accommodate spectators
• Ideal place for sport lovers want to enjoy live sports
• Presence of large stadiums
• Generate million of dollar to the investors
• Investors are attracted to invest in stadium construction (Bernstein,
2018).

Stadium Construction
• Growing interest to invest in Stadium.
• Total value of stadium construction projects recorded as US$ 130.8 billion
• The largest share accounted by US and Russia
• Sports leagues such as National Football League (MFL) and Major League
Soccer drive investment in this arena (construction-ic.com, 2018).
• Restructuring or building new stadium
• During special sports events such as World cup, Olympics and other global
or national sport events.

Stadium Construction
• Recent event of Fifa World Cup
• Driving program for new stadium construction.
• Funding mostly tend to private sector.
• Larger stadiums
• Capacity accommodate large spectators
• Earning from selling of tickets
• Return to shareholders (Bernstein, 2018).

Stadium Construction
• Immense importance in sports
• Funding stadium construction
• Generate huge revenue
• Higher return to investors
• Help to increase wealth.

Hosting Major Events
• Major sport events
• Attracts large spectators
• Sports events at national and international scale
• Olympic games, commonwealth games, Asian games, Cricket
World Cup, Fifa World Cup and others.
• Carry significant prestige (cnbc.com, 2018)
• Honor to the host nation that shapes legacy of the country or city

Hosting Major Events
• National symbolisms
• Come with several benefits
• Global spotlight
• Stimulates regeneration
• Investment and long-term benefits
• World class events
• Attract millions of interest in this duration

Hosting Major Events
• Different source of revenue
• Tickets, Registration and membership
• Olympic Games or NCAA championship
• Revenue through tickets sold
• Chicago marathon and Ford Ironman
• Revenue from participation

Hosting Major Events
• Soccer Word cup
• Lucrative and Costlier event
• Billion of dollars revenue
• 2018 Fifa world cup
• $6 billion of revenue
• 25 percent higher than earlier (cnbc.com, 2018)
• Investors highly benefitted

Hosting Major Events

Lotteries
• Three ways
• Selection of host countries
• Global sports events
• Huge economic benefits to host nation
• Nations willing to be host nation
• Grouping of team
• Selection of opponents team, match slot, match schedules and so
on.

Lotteries
• Bidding among business leader
• Sponsoring events and sport equipment
• Lobbying
• Powerful elites lobby
• Economic and political power (Guerra, 2016).
• Manipulates decision
• Satisfy own interest

Lotteries
• Unfair practices
• FIFA scam
• Selection of host nation
• Russia and Qatar
• Unfavorable environment
• Russia; political instability
• Qatar:: extreme climate condition.

Cost to attend Professional
Sports Events
• Interest of attending professional sports
• Cost increase overtime
• Football
• Most expensive to attend
• In 2004, average cost of four members family was $321.62
• This indicates only 4.3% hike compared to previous year
• 80% higher ten years back (Bernstein, 2018).

Cost to attend Professional
Sports Events
• Least expensive game MLB
• Cost increase 69% compared to cost in ten years ago
• Discriminating cost
• Ticket price vary with seat location
• American spends $56 billion to attend sports events
(cnbc.com, 2018)
• The amount more than doubled than that in 2015

Cost to attend Professional
Sports Events
• Expenditure in various aspects
• Cost of tickets
• Transportation
• Food and Drinks
• The incurred cost adds to earnings of stadium
(telegraph.co.uk, 2018)
• Benefits to investors and shareholders.

Sponsorship
• Sponsorship
• Source of wealth creation
• Elites takes interest in sponsoring
• Various sources of revenue generation
• Sponsor Jerseys, shoes of players, Stadium seats, football,
health drinks and other associated components

Sponsorship
• Build awareness
• Tie up with team
• Brand logo and displayed tagline
• Attract attention towards brand, product and service
• America Ultimate Disc League
• Sells product to thousands of followers

Sponsorship
• Expansion to a new location
• Launch of new products
• Exposure to targeted highly appealing audience
• Elites sponsor major sport events
• Fifa Word Cup
• Adidas, Coca-cola, Hyundai Kai Motors, Qatar Airways

Sponsorship
• Coca-Cola and Adidas
• Derives greatest benefits
• Profit making
• Ultimate goal of sponsoring events
• Displayed names on sponsored products
• Increases fame and wealth

Conclusion
• Economic elite
• Small powerful social group
• Profitable investment
• Multifold wealth
• Sport: important area of investment
• Stadium Construction, Hosting major events, lotteries,
Cost of attending events and sponsorship

Reference list
• Aguiar, L. L., & Schneider, C. J. (Eds.). (2016). Researching amongst elites: Challenges and
opportunities in studying up. Routledge.
• Bernstein, J. (2018). Smart Contract Integration in Professional Sports Management: The
Imminence of Athlete Representation. DePaul J. Sports L. & Contemp. Probs., 14, 88.
• Brezis, E. S., & Temin, P. (2016). Elites and economic outcomes. The New Palgrave
Dictionary of Economics, 1-5.
• Brien, S. (2018). Americans spend $56 billion on sporting events. [online] CNBC. Available
at: https://www.cnbc.com/2017/09/11/americans-spend-56-billion-on-sporting-events.html
[Accessed 11 Aug. 2018].
• Construction-ic.com. (2018). Construction Intelligence Center. [online] Available at:
https://www.construction-ic.com/pressrelease/global-pipeline-of-stadium-and-arena-
construction-projects-stands-at-us131-billion-5844591 [Accessed 11 Aug. 2018].

Reference list
• Guerra, A. (2016). More Goals, More Growth? A Take on the Mexican Sports Economy through the
Economic Complexity Framework (No. 73). Center for International Development at Harvard
University.
• Haggard, S., & Kaufman, R. R. (2018). The political economy of democratic transitions. Princeton
University Press.
• Sheetz, M. (2018). The business of the World Cup – who makes money and how much?. [online]
CNBC. Available at: https://www.cnbc.com/2018/06/14/the-business-of-the-world-cup--who-makes-
money-and-how-much.html [Accessed 11 Aug. 2018].
• The Telegraph. (2018). You'll be surprised at which sports stadium is the most profitable in the
world. [online] Available at: https://www.telegraph.co.uk/investing/business-of-sport/investing-in-
sports-stadiums/ [Accessed 11 Aug. 2018].
• Yang, Q., Liu, Y., Yin, X., Wang, H., Guo, M., & Zhang, B. (2017). Study on Sports Industrial Share
Economy in the Era Internet Plus. Global Journal of Human-Social Science Research.

Thank You