1. 3.2 – Commercialisation of physical activity and sport
Learning objectives
To understand the relationship between sport, media and commercialisation.
To be able to describe the advantages and disadvantages of commercialisation in sport and the impact on players, the sponsors, the sport and the spectators.
To be able to interpret information from a range of data sources and analyse trends.

2. Commercialisation of sport
Sport is now a global product. High-profile sports attract massive media interest and huge sponsorship deals.
Photo by: ©
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How is sport and business linked?

3. Commercialisation of sport
Sport, media and commercialisation are closely linked in a what is known as a ‘GOLDEN TRIANGLE’
Commercialisation
Sport
Media

4. Commercialisation of sport
Each side of the triangle benefits from the other sides in some way; therefore, each side is dependent on the other sides in some way, normally either financially or for promotion.
Photo by: ©
Sport uses media to gain viewers and businesses pay money to access a sports audience.

5. Impact of Sponsorship
Think. Pair. Share – What is the first thing you notice about these images?

6. Impact of Sponsorship
Media coverage of sports and high profile performers lead to huge sponsorship deals. Nike and other sports companies put large sums of money into commercial activity.
Sponsorship of teams and individual players is a way of improving their brand/image.
Photo: © Nike
Think. Pair. Share – What athletes or teams do you think of when you think of Nike? Why is that?

7. Commercialisation
This rise in commercialisation has almost become part of the modern game, but it is important to remember it has positive and negative effects on the sponsor, the sport, the players and the fans.

8. Commercialisation The sponsor: Advantages Disadvantages
Sport can offer an excellent opportunity for the sponsor to promote a product/service to a widespread audience.
Advertising brand name.
Promote a caring attitude and increasing goodwill.
Tax relief
Poor behaviour from athletes/ clubs can cause negative press.
Smaller sponsors might struggle to compete with larger more global brands.
Some sponsors are not suitable to be promoted within sport. i.e. tobacco or alcohol.
Investing in teams and individuals can backfire if they do not achieve success i.e. teams not qualifying for major competitions.
Photo: © FA Cup

9. Commercialisation The sport: Advantages Disadvantages
Raises the profile of the sport due to increased exposure.
Provides an increased level of funding to improve resources, coaching or facilities.
Gives the sport financial security for a period of time.
Attracts the best players in the world to that sport.
Commercialisation tends to support the popular sports leaving the ‘lesser’ sports to lose out.
Changes to the sport format and rules have being introduced to make the sport audience friendly.
The influence of TV has caused an increase in adverts and TV timings and lost some of sports traditions.

10. Commercialisation The player/performer: Advantages Disadvantages
Allows athletes to earn income as a full time job.
Performers gain maximum exposure to promote their personal brand.
Can lead to additional roles post playing career within the sport.
Relieves financial worries
Encourages deviant behaviour due to the pressure of success.
Generally, favours male over female and able bodied over disabled.
Sponsorship might be short term.
Performers may have to advertise a product that they do not like.
Performers might be contracted to put in appearances and attend public speaking.

11. Commercialisation The spectators: Advantages Disadvantages
Offers a wider choice of sports available to watch.
Viewing experience has ben enhanced due to investment into technology and audience participation.
Encourages spectating not participating.
Can become very expensive for fans/spectators.
Can affect view experience due to increased TV breaks and time outs.

12. Commercialisation and impact on sport
For some sports the media attention has led to changes in rules and structure.
Rules have been adapted to increase the speed of play/action to prevent spectator boredom.
i.e. Multi-ball system in football
Changes in scoring to create excitement.
i.e. Badminton. You can now score on any play not just your serve.
i.e. Golden goal was introduced

13. Commercialisation and impact on sport
Breaks are an ideal time for sponsors and commercial companies to advertise.
e.g. American football has numerous breaks in play.
Competition formats have changed. 20/20 cricket is shorter and more exciting than test cricket.
HOW? WHY?
e.g. 20/20 bowl outs, free hit, fielder and bowler restriction.
Match timings have been altered to suit television. Tradition was Saturday afternoon, now football is televised nearly all week.
e.g. Super Sunday..

14. Data, analysis and evaluation
Table 1 below shows the number of people who participate in 6 funded sports at least once a week.
2010
2011
2012
2013
Swimming
3270
3244
2824
2892
Athletics
1555
1612
1994
2148
Football
2021
2144
2108
1959
Cycling
1634
1767
1954
1860
Golf
889
948
908
772
Badminton
515
555
558
499
Think. Pair. Share – What patterns do you notice in data table above? Why is this the case?

15. Apply it! What has stuck with you?
Commercialisation in sport
What is meant by a ‘golden triangle’?
Explain the advantages and disadvantages to spectators of an increased commercialisation in sport?
Compare the advantages of commercialisation for the sponsor and the performer?
Compare the positives and negatives of a brewery sponsoring an Over 35’s team compared to a U16’s team.
Photos by: LOCOG

16. Practice it! Exam questions
1. According to research, some sports have higher participation rates than others. Explain two ways in which the media can help to increase participation in sport. (2)

17. Practice it! Exam questions
2. Assess the positive and negative impact on an under-16 school rugby team accepting sponsorship from a company that produces alcohol (6)
Positive
Negative
Photo: © istock photo

18. Practice it! Exam questions
3. Sponsors and the media pay huge sums of money to be linked to elite performers and to cover major sporting events. In 2012, the golfer Rory McIlroy signed a 10 year sponsorship contract with the sports company Nike, reported to be worth over £150 million.
Explain the reasons for companies investing such large sums of money in sport (3)
Sky Broadcasting and BT currently pay £3.2 billion for the media rights of Barclay’s Premier League. Outline the disadvantages to a sport of increased media control (4)

19. Practice it! Marks Scheme:
1. Any two from: Media increases profile of sports through
broadcasting/advertising to a greater number of people
(1), therefore more people become aware of the
sport/want to play the sport (1). Media provides funding for the sport (through payment for coverage) (1), therefore sport can develop at grassroots allowing more people to participate (1). Media increases people’s knowledge of sports, which raises awareness (1) so that they want to play the sport/more people know how to play the sport (1) 2.

20. Practice it! Marks Scheme: 2. Any one from: Positive
An alcohol company would be a suitable company to sponsor an under-16 school rugby team because it will generate income for the team (1) which can be used to purchase equipment/kit/ground maintenance (1) enabling them to perform better/attract more spectators (1)
An alcohol company would be a suitable company to sponsor an under-16 school rugby team because it will generate money for the team (1) and is unlikely to influence the team members unduly due to health education in school (1), they will be aware that alcohol is bad for their health and will not aid their performance in rugby (1)
Any one from:
Negative
An alcohol company would be an unsuitable company to sponsor an under-16 school rugby team because alcohol is not good for health (1), therefore by promoting it may increase the likelihood that students will start drinking (1) leading to them damaging their health, for example liver damage (1).
An alcohol company would not be a suitable sponsor for an under-16 school rugby team as the school would be expected to display/advertise the alcohol company (1) and the rugby team should be promoting healthy products as part of its image rather than something that can cause negative health issues/consequences (1), which could influence younger, more impressionable members of the school (1).

21. Practice it! Marks Scheme:
3. (a) A. Raise awareness of brand/increased publicity/Increase sales of their products/brand becoming more fashionable. B. Linked to sport with good image/improve company image/link to excellence/improve community involvement/improve public relations. C. Opportunity for corporate hospitality/entertain clients. D. Improve company morale/employees feel linked to success of sport. E. Tax relief for sponsoring companies.
(b) A. Traditional nature of the sport changes/new competitions/formats introduced /rules/ regulations/ scoring systems altered/clothing/uniforms changed /breaks in play. B. Playing times altered/playing seasons altered. C. Location of events may be influenced by commercial considerations. D. Ticket allocations given to sponsors not fans. E. More popular sports gain more coverage at expense of minority sports. F. Media can direct public opinion/support about sport or event/over sensational negative events eg deviancy. G. Fewer viewers for some sports due to pay-per view/ subscription channels. H. Lower attendance at events that are televised.