How Globalizing And Commercial Forces Have Influenced The Sports Industry

In the 19th century, the first step for the globalization of sports was laid down with the establishment of the International Olympic Committee. Due to the British Influence over many countries at that time, sports like cricket, football, and rugby started gaining momentum around the world. 

Sports gained massive popularity after the second world war when it started broadcasting on television, backed up by corporate sponsorship. Nowadays, sports have become a multi-million dollar industry that cannot reach out to the masses without sponsorships and media coverage. Let’s read on as we discuss the influence of commercialization in the sports industry.

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The Commodification of Sports

Simply put, commercialization of sports can be understood as using sport or an aspect of the sport to generate sales and increase income. The phenomenon is nothing new and was first practiced by a sports goods manufacturer. Until recently, the demand for sports merchandise and equipment has skyrocketed as more corporate industries are getting involved through sponsorship agreements. Moreover, mass media plays a crucial role in sustaining this huge market for sports equipment and merchandise.

Influencing Professional Sports  

Over the last half-century, professional sports have gained popularity among the masses that are cashed by companies and businesses through commercialization. Professional athletes nowadays secure contracts for millions of dollars that were not possible earlier. Moreover, support personnel like coaches, lawyers, media personnel, and sports team owners also benefit from this huge market of fans that pay to watch their favorite sports and buy endorsed sports equipment. Professional athletes are offered contracts by businesses and industries to be their brand ambassador that influences sales positively.

Team owners for major sports franchises like football, rugby, and basketball generate massive amounts of profits that come from various sources.

The Role of Mass Media

Media and sports industries commercially thrive when in a symbiotic relationship. There are tons of sports magazines and books covering every aspect. Newspapers always have a dedicated space to cover sporting events and professional competitions. Into the bargain, radio and television stations have added sports channels to provide 24/7 coverage. Contracts worth billions of dollars are secured by media conglomerates to broadcast sports events only through their media channels. The way sports are conducted has also changed because of the influence of the media. Some notable changes include additional time-outs to advertise their sponsors and conducting sporting events at set schedules when there is potential for more viewership. Critics complain that the commercialization of sports, especially through television, has become another form of passive entertainment.

Olympic Games and Commercialization

The Olympic games have maintained a stance to oppose the commercialization of sports in every manner. However, the recent involvement of corporate sponsorship in Olympic games has faced a lot of criticism lately whereas some don’t agree with the Olympic games being over-commercialized. With the announcement of the Olympic games, private enterprises start competing with each other in securing Olympic games symbols to be displayed exclusively on their products. A recent example is the Seoul games where a major beverage manufacturer secured exclusive rights for $22 million from the Olympic games committee to display their logo. Still, commercialization in Olympic games is much less when compared to other forms of sports events.

Corporate Commercialization of Sports

Major types of sports have now become global as companies are using sports as a means to maximize profits. Sponsors, promoters, and corporations endorse sporting events for their advertisements and build a persona that caters to everyone related to sports. You can find many professional organizations conducting tournaments in multiple countries that are viewed all over the world through television and social media.

The Brightside

While sports commercialization has disrupted the way sports were conducted earlier, it has some positive effects on the athletes, fans, and the game itself. Here are the advantages of commercializing sports mentioned below.

  • Media coverage of a sporting event ensures more people are introduced to the sport that inevitably increases the fan following and instills the game spirit into the community.
  • Sports teams need money to manage the expenses. The only way they can bring in money is by offering advertising space. Besides, viewers are most interested in watching the game rather than caring about what logo they see on their favorite player’s shirt.
  • Sponsors provide the much-required exposure through funding sports events that ultimately increase participation. A national or Olympic team winning for their country encourages people, especially children, to take up sports. Indulging in sports activities improves physical health and prevents various chronic diseases.

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Commercialization and globalization have undoubtedly influenced the sports industry in both positive and negative ways. Nevertheless, sports will always be played with a genuine spirit and an unconditional fan following, backing up their favorite teams and players.