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Sports in Society:Issues &

Controversies

Chapter 11Sports and the Economy:What Are the Characteristics

of Commercial Sports?

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Conditions for Emergence & Growth of Commercial Sports

A market economy Large, densely populated cities People who have time, money,

transportation, & media access Large amounts of capital Culture emphasizing consumption and

material status symbols

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Class Relations and Commercial Sports

The preferences and priorities of people with power and wealth often influence which sports are commercialized – for example: Golf is enjoyed by wealthy and powerful; it

receives much TV coverage despite low ratings Football reproduces an ideology that privileges

men & celebrates masculinity

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Why have sports become so popular in society today?

The quest for excitement Emphasis on success ideology Widespread organized, competitive youth

sports Widespread media coverage

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Economic Motives and the Globalization of Commercial Sports

Sport organizations look for global markets FIFA, the NFL, the NBA, etc. seek global media

exposure and expansion Corporations use sports as vehicles for global

expansion One goal is to make money Another goal is to sponsor enjoyment and

pleasure to establish ideological outposts in the minds of people around the world

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Figure 11.1 CEOs and owners often play games that ignore athletes

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Ideological Outposts in Action: Branding Sports

Sport places have been branded Sport events have been branded Athletes have been branded -Corporate branding is now accepted by many

people as necessary, non-political, even “natural” Question: Isn’t that sure sign of outposts in action?

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“There was nothing we could do.”

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Commercialization and Changes in Sports

Changes may occur in the: Structure and goals of sports Orientations of athletes, coaches, and

sponsors Organizations that sponsor and control

sports

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Changes in Structure and GoalsRule changes are made to make action

more exciting, understandable, and profitable by Speeding up action Increasing scores and scoring chances Balancing competition Maximizing dramatic moments Providing commercial breaks

GOAL: Total Entertainment Experience

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Why did the XFL fail? Too much commercialization, or not the right kind?

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The Origins of Heroic Action in Sports

Commercial sports are ENTERTAINMENT

Commercial entertainment depends on attracting a mass audience

Members of a mass audience lack technical knowledge about a sport

Entertaining people without technical knowledge requires heroic action actions

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Commercial Sports Involve A Shift From Aesthetic to Heroic Orientations

AestheticOrientations

Beauty and pleasure of movement

Emphasis on mastery of technical skills

Willingness to explore limits

Commitment to staying involved

Heroic Orientations

Danger & excitement of movement

Emphasis on style & dramatic expression

Willingness to go beyond limits

Commitment to success of sponsor

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Shifting orientations: what happens when there is a need to entertain a mass audience

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The Promotional Culture of Professional Wrestling

Events are dramatic spectacles Players display carefully constructed

personas Emphasis is on heroic action Storylines are simple; they emphasize

domination, gender differences, & capricious bosses

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Spectator Appeal in Sports Depends on:

The uncertainty of an event’s outcome

The stakes associated with an event

The anticipated display of excellence, heroics, or dramatic displays by participants

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Sport Organizations

With commercialization: Control shifts away from athletes; decisions are less

likely to reflect their interests

Control shifts toward owners, corporate sponsors, advertisers, media personnel, marketing & publicity staff, professional management staff, accountants, & agents Athletes accept the decisions of these people,

because their financial interests are at stake

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Owners, Sponsors, & Promoters of Professional Sports When the diversity of professional

sports is taken into consideration:

Owners are a diversified collection of people – usually white men.

Profits may be great in leagues where monopoly control and TV revenues are high; but losses may be great under other conditions.

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This looks extreme, but hasn’t it already happened?

"

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Advantages of Monopoly

Team owners in the major men’s pro sports have established monopolies enabling them to:

Control athlete movement Negotiate high media rights fees Prevent the formation of new teams Share revenues

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Forms of Public Assistance

for Team Owners

Use of public funds to construct and maintain facilities

Deduction loopholes to use on tax returns

Tax breaks and rebates Control of revenues in public facilities

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Stadium Subsidies: Arguments For

1. A stadium and team create jobs2. Stadium construction infuses money into the

local economy3. Team will attract other businesses4. Team will attract media attention that boosts

tourism, product sales and economic development

5. Team will create positive psychic and social benefits

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Stadium Subsidies: Arguments Against

1. Stadium jobs are seasonal and low paying except for athletes & execs

2. Construction materials often are purchased outside the local area

3. New businesses often are franchises headquartered in other cities

4. Discretionary money is limited and may be shifted away from other businesses

5. Promoting macho orientations does not benefit everyone in a community

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Sources of Income for Team Owners

Gate receipts/ticket sales Sale of media rights (TV/radio) Stadium revenues

Leases on club seats and luxury boxes Concessions/parking/leasing spaces to others Sale of naming rights and site advertising Special events/concerts/meetings

Licensing fees and merchandise sales

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Figure 11.5

New stadiums resemble shopping malls.

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Amateur Sports Are self-funded and dependent on

corporate sponsors, or funded through a central government sports authority

Are controlled by organizations with an interest in two things: Power Money

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Legal Status of Athletes in Pro Team Sports

Forms of the “reserve system” have been used to restrict the freedom of athletes to play where they wish

Players’ associations and unions have challenged this system and struggled for “free agency” Free agency has been achieved to varying

degrees in major team sports Labor rights for athletes in minor sports are

limited

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Legal Status of Athletes in Individual Sports Varies greatly from sport to sport and

athlete to athlete

Status often depends on what athletes must do to support their training and competition

Status may be partially protected by professional associations formed by the athletes

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Income: Team Sports The large majority of pro athletes make

limited income The super-contracts and mega-salaries of a

few athletes have distorted popular ideas about athlete income

Income among top athletes has risen recently because Legal status and rights have improved League revenues have increased

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Professional athletes in the major men’s spectator sports did not earn exceptionally high salaries until after 1976 when they could become “free agents” and sell their skills to the highest bidding team. In 1950 an average NBA player was only slightly more than the median U.S. family income; in 2004 it was 84 times higher than the median US family income! At the same time, the average salary of a WNBA player was nearly two thousand dollars lower than the median family income.

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Athletes salaries don’t affect ticket prices; owners charge whatever people will pay for tickets regardless of what they pay athletes.

SIDELINES

“I make $20 million a year, and I don’t feel guilty!”

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Income: Individual Sports Many athletes do not make enough to

pay expenses There are increasing disparities

between top money winners and other athletes

Top male heavyweight boxers have traditionally made the most money Question: does this mean that

athletes are rewarded for reaffirming certain ideologies?

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Amateur Athletes Rights depend on the governing bodies that

control various sports

Income depends on The rules of governing bodies Endorsements that vary with celebrity

status and corporate interest

Most intercollegiate athletes in the U.S. are controlled by the NCAA; they have few rights

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Tickets for NFL and Notre Dame games cost the same, but college players make a fraction of what the NFL players make