GCSE PE - Commercialisation (2024)

Sport is not just about participation. It is also part of the commercial world, managed and marketed to make money. Sponsorship and the media are now significant influences on sport.

Elite sport, the media and sponsors

Sport has always grabbed people’s attention. For example, attendance at football games in the early 1900s regularly exceeded 40,000 and the stadium built for the 1908 London Olympic Games seated over 66,000 spectators. This means that sport has the potential to influence a wide range of people. In more recent times, the combination of global media coverage, huge sponsorship deals and more athletes performing full-time means that elite sport is a very lucrative business.

Charlotte Cooper was a three-times Wimbledon winner and the first women’s Olympic tennis champion in 1900 – an era when players wore tennis whites unadorned by brand names or sponsors’ logos.

Commercialism in sport is about making a profit from sport. This involves three main groups.

Sport

Sport benefits from commercialism. Increased revenue helps individual sportspeople and sports organisations to increase participation, improve performances and attract support. As technology becomes an increasingly important element of sport and sports compete with each other to engage participants and spectators, funding is even more crucial.

Media

The media benefits from the commercialisation of sport. High profile sports stories help to attract audiences, listeners and readers. In turn, the media makes sure that sport keeps a high profile.

Sponsors

Sponsors benefit from the commercialisation of sport. Their funding is essential for sport’s growth. In return, high profile coverage of sport ensures a high profile for their companies.

In this way, sport – particularly elite sport, the media and sponsorship are interlinked. This is called the golden triangle.

As well as its many benefits, commercialism in sport can also be negative. For example, some people believe that the commercialisation of elite football in the UK has changed the game for the worse and is destroying the traditional community-based links between supporters and clubs.

The golden triangle

The golden triangle shows the relationship between sport, the media and sponsorship. It represents the commercial (money-making) nature of sport.

The relationship varies enormously for different sports and sports events.

The effects of the media on sport

Most people, whether or not they play or watch sport, are aware of sport through the media. This includes local, national and international sport. From school sport newsletters to worldwide TV coverage, the media is a powerful voice for, and influence on sport.

Types of media

• Television – local and national; freeview; subscription or pay-per-view; interactive; on-demand; Red Button services; satellite or cable.
• Radio – local and national; analogue and digital; public and commercial.
• Press – newspapers (local, national, daily, weekly); magazines (general, specialist); books (technical, biographies, novels).
• Films – cinema; television; DVD and online.
• Internet – websites; blogs; video channels and social media.

Media influences

The media can have both a positive and negative effect on sport. Consider the inspiring images from the Paralympic Games and how they change people’s perception of disabled people. Compare that to the media persecution of athletes who are perceived to have ‘failed’ in some way.

Positive influencesNegative influences

Sponsorship in sport

Sponsorship occurs at all levels of sport. School teams may have sponsored kit while elite athletes may be paid large sums of money to wear certain sportswear. Sponsorship can be financial or in-kind payments. Sponsorship means both parties receive benefits from the agreement.

Types of sponsorship

• Individuals – display a logo; wear a particular brand; endorse products.
• Teams and clubs – wear kit; display banners; have a company name for the team or for the ground or for a stand/court in the ground.
• Sports – rename competitions, cups and leagues; brand their development programmes.
• Events – allow use of their logo on sponsors’ products; provide free products to participants.

Benefits for sport

• Individuals – covers costs such as kit; equipment; travel; accommodation; competition fees; time to train.
• Teams and clubs – subsidises kit; equipment; grounds or clubhouse maintenance.
• Sports – pays for coaching and coach development; beginner programmes; talent development.
• Events – covers venue hire; catering; hospitality; publicity; programmes; officials’ costs; goodies.

Benefits for sponsors

• Raises awareness of their company or brand.
• Advertises products and services.
• Promotes a positive image of their company.
• Provides rewards or incentives for staff and customers.
• Increases sales or revenue.
• Reduces tax through tax relief.

Negative effects of sponsorship

Sponsorship of sport creates tensions when a sponsor’s image or product appears to undermine the sporting message. For example, tobacco firms sponsored sporting events until 2005 when they were banned from doing so across the European Union (EU). Companies that sell alcohol are allowed to sponsor sport although many British MPs want a ban as they believe it sends the message that sporting ability and drinking alcohol are linked. The same is true of fast food companies – should they sponsor sport when their products are believed to contribute to childhood obesity?

Case study – Los Angeles Olympic Games

The Los Angeles Olympic Games in 1984 were the first modern Olympics to be financed by corporate sponsors and the first Games since 1932 to make a profit. The two previous Games – in Montreal (1976) and Moscow (1980) – had left the organisers with huge debts. This commercial approach became the model for future Games. The organisers also used some of the profits to support youth sports and coach development which benefitted grass roots as well as elite sport.