Examining the Business Aspect's Affect on the Sports Industry

This essay examines the multifaceted impact of business on the sports industry, exploring both positive and negative aspects with supporting examples. It highlights how the increasing commercialization of sports influences various stakeholders, including sports organizations, athletes, and fans. The positive effects include increased revenue, job creation, and economic growth through events, sponsorships, and media coverage. The negative aspects encompass issues such as corruption, match-fixing, and the potential exploitation of athletes, along with the risks associated with economic downturns affecting consumer demand for sports entertainment. The essay concludes that while business brings significant benefits to the sports industry, it also introduces challenges that require careful management and ethical considerations to ensure the long-term sustainability and integrity of the sector. Desklib provides similar solved assignments and past papers for students.

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Topic: How is the business aspect affecting the sports industry? (Both negative
and positive aspects. Please support your approach/opinion with examples)
Introduction
The sports have always entertained the public during their leisure time and has now became an
integral part of life. To entertain public in the period of their leisure has always been the ultimate
intention of both viewer and participation sport. Even though historically sport show business
was normally spontaneous and hassle-free, in recent times sport is regularly well thought-out,
mechanized, advertised, and managed as a business. Business profitmaking intentions affect
almost every decision in sports. Different forms of sporting occasions be it of National or
International level are evaluated, graded and ranked on the basis of television viewers share,
sales of ticket for the event, online website traffic, discount sales, sponsor returns and reporting
in the mass media. Victories and Defeats are significant as they affect all of these criteria of
measurement.
Sport today is developing further into business; the business model is entering into the
association of all sport governing body. Sportspersons are encouraged to participate in various
events for benefit of the bigger entities (Sanz). Trainers have almost transformed into the
overseers of sportspersons who at times are influenced to go in contrast to their individual
choices for the betterment of the squad or association. Sportsman who practice good work ethics
are exemplary ethical character, and a readiness to sacrifice for the betterment of the squad are
revered inside the squad, association and amongst fans and projected as a model for others to
follow. The sportspersons who stray from that route, they are either written off or given only a
few minutes of playing time or are phased out from the lineup (Koger, Williams and Hill). As the
sports business is on the rise in terms of monetary aspect, it attracts more people or commercials
who may possibly profit from that influence by swaying its association. As the business is
growing, the duty of the sportsperson is more sort of to work for the association in whole rather
than only team or squad in addition to the on-field duties.
Individuals require time to practice sport. Individuals are becoming part of a greater association
as a replacement for self-employment; they can devote more time away from work and therefore
become active in sport. Individuals require money to spend on sporting activities. A society that
creates a decent financial level where individuals can meet the expense to look after sport will
see the maximum number of people in its society partaking sports (Ratten and Ratten 614-620).
As public has turned out to be to living in intense capacities, the facility of sport has grown
nearer, this has made it easier for the public to partake in sports or see the sporting occasions at a
location that is comparatively closer to their residence. Mass media for instance the press, the
internet, Cable TV et cetera all provide right of entry to sportspersons and sports, that supports in
the sustainability of amateur and professional sport (Cave and Miller). Sporting facilities and
locations are being built in different regions of the nation, hence providing additional
convenience to the civic society and secondarily deliver a stable sport income. These are some of
the business factors that have positively affected the sports.

The drive that the sport activism provides to the nation, the participation that is necessary, the
association and coordination of partner that it requires all lead to flourishing of a certain social
and economic aspects (Cisyk). As for the association of any sporting occasion, it in any form or
manner comprises the usage of associates in the public, hence aiding the commercial maneuver
move ahead. All occasions have need of lodging house, Car hires, Foodstuff and Breweries, Air
travel inside and outside of the Nation, Jerseys and other sporting kits and other official
uniforms, sporting merchandises and apparatuses, Public relations, offset lithography Et cetera.
Many minor, intermediate and big associations come together to organize any sporting occasion.
From public relations agencies, to laser printing enterprises, foodstuff and breweries providers,
audio and visual experts, sports merchandise providers, to the wash cleaning groups associated,
sport and sport occasions contribute in the growth of the social and economic wheel of the
Nation (Harcourt). A lot of money being capitalized and used within the nation is also one of the
positive effects of sporting occasions being more commercial these days.
Certainly, a proportion of this money is going out of the nation, for several reasons for instance
buying of natural resource, or wage transmission of an emigrant to his family, however
irrespective of that, the money that goes out, it also being given to homegrown enterprises that in
turn reuse it in the native business marketplace.
Positive aspect
As per Economics, the ability and wish to purchase goods and services is defined as demand.
Professional and university sports series give a solid expressive harmony with their viewers. Not
many companies could be able to assert a greater brand faithfulness to their productions than
major track-and-field events. In other words, these companies control their money (Lee). The
National Football League (NFL) intends to do business in the direction of a more prosperous or
capable consumer base; a rich household of four could without problems spend in excess of a
thousand dollars to attend a particular sporting occasion. Even if these families are present at 10
sporting occasions every year, this could be a substantial expense by the consumer and income of
the producers.
In addition, some individuals spend lots of money to recondition all room of their residence to
exhibit support meant for their favored sides and sportspersons. Professional and university
sporting occasions have furthermore effectively adjusted to the always-changing technological
background that is part everyday lives of the consumers. Viewership of live sporting occasions
on smartphones, laptops et cetera is on the rise at a fast pace, other than on satellite means of
communication and pay-per-view screenings. Entire of these circulation networks drive the
income of the respective companies.
In reality, the NFL initiated its own cable television network channel where it could get more of
the advertising income, rather than dividing the revenue with already established long time
networks. The networks have premium asking rates that their faithful consumers and promoters
are ready and capable to spend (Lee).

A remarkable benefit these main sports groups have is lack of rivalry (Gong). Many of these
sports leagues like EPL, La Liga, IPL, etc. are huge and there are so many barriers for the new
leagues to enter and compete with these popular leagues. There have been a few unsuccessful
attempts to rival these leagues. Moreover, anti-rivalry law also shelters some of these sporting
leagues.
The NFL in the U.S. has an unusual antitrust exclusion, which not many trades could avail and
assert. One could be suspicious about the list being tiny. As a final point, these trades revel in
repeat commercial market. Maximum number of individuals in public own numerous jerseys of
the team they support. Many families provide seasonal permits to their kids, implanting
additional loyalty to their preferred team or brand for generations to come.
Negative aspect
Sporting clubs and leagues are not safe from financial blows. Demand for sporting show
business is dependent on the larger financial situations. Prolonged feebleness in the larger
economy could negatively affect audience at numerous sporting occasions. However, maximum
number of average Americans vision sporting as decent show business that could be reveled in as
soon as there are additional earnings to spend (Kaartinen).
According to an economist's viewpoint, demand for being physically at a sporting occasion to
revel in sport is variable. An alteration in somebody's earnings negatively or a modification in
the merchandise’s costs for instance if the ticketing price rise, could have a substantial bearing
on ultimate demand in permits, products and pay-per-view sales.
These are the solid financial realities about the risks involved when investing in sporting.
Nevertheless, possibly less obvious are the social factors that investors ought to be accustomed
to that present smallest amount of the similar commercial risk (Crompton 20-34).
It gives the impression that on a daily basis we hear about a sporting disgrace more unbelievable
than the previous day. These corruptions in sporting does impact the commercial purpose
negatively and sometimes causes irreversible harm to reputations. Tiger Woods' adulterous
relationships caused the ratings NBC's golf to take a major knockout. Accusations of sexual
exploitation at Penn State University affected the school's standing, along with the plunge in
clothing sales substantially as a consequence. For example, the instances where NBA
sportspersons clashed with supporters or consumers by jumping into the spectators damages the
reputation of the NBA.
Moreover, greediness is all over the place in these productions: Highly successful sporting stars
in these leagues have higher annual income than the average customer. This trade gives threats to
financiers that are not usually part of corporate business (Cave). If staffs of a major organization
went on strike, the organization's shares would most probably be knocked in the short run.
Conclusion:

Hence, it can be concluded that an investment in a sporting industry could be profitable or not
depending upon various factors likes consumer’s demand, competition, pricing power. All these
factors are very critical and is important for any sporting business to survive or succeed. There is
certain amount of risk that is associated with all these businesses. The popularity of the sports
among people attracts investors to invest more in that sport and at the same it also attracts
players to play that sport. The growing business in the sport industry not only creates job
opportunities but boost the economy of the state. The sport industry is often seen an
entertainment and luxury section which depends upon the laws of elasticity. The performance of
the payer or the team is also responsible for bringing business in that sport. The transfer of
players in an English premier league or a Spanish la Liga is one which excites the viewers due to
the popularity of the sport and in turn bringing more business. The rising business in sports
industry also has negative aspects which includes corruption, match fixing, etc. The recent case
of FIFA scandal is one of the examples where there was high level of scandal.
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