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User:Atama J/Business, Politics and the London 2012 Olympic Games

Business, Politics and the London 2012 Olympic Games Presentation - Here is a link to my presentation, an abstract can be found in the description of the video.

This essay will seek to explore the impact that business and politics have on the Olympic Games, focusing on the London Olympic Games to be held in 2012 as an example of the interaction of Business, Politics and Sport. The question that this essay will endeavour to answer is if National Governments believe that the Olympic Games are vehicles for economic benefit, as for example, the particular aims of the London Olympic is to regenerate East London, support local business and promote England as a whole. It will also look to state the Government's role within the production and running of the Olympics. Although this essay will be based on the 2012 London Olympics, it will also explore a previous Olympic Games, which is, the 2000 Sydney Olympic Games, as this will hope to demonstrate similarities and differences between London 2012 and the Sydney 2000 Olympics. Also, this essay will raise certain political impacts that are evident within the business and politics of the Olympics, for example, threats of protests and boycotts. Through elaborating on each point and producing evidence to support it, this paper will seek to answer the stated question whilst also demonstrating the extent of impact that business and politics have on the Olympic Games.

The Olympics
The Summer Olympic Games is one of the largest international sporting events. To achieve success, or even just to participate at the Olympics is seen as an accomplishment, as it is regarded as the world’s leading sports competition (Britannica Academic Edition, n.d). The Olympic Games is also seen as one of the few cultural forms that bring together the people of the world. It can be seen as a global phenomenon as athletes strive for excellence in their events (Bale, J, Mette, K C, 2004, P4). First and foremost, the Olympics are designed to shine glory upon the host nations; but, governments utilise their position within the Olympics to strive to achieve their national and international goals (Institute of Public Affairs, 2008). Throughout the existence of the Olympic Games business and politics have had an integral role in its processes.

The question this essay seeks to ask is, ‘do national governments use the Olympic Games as a vehicle to benefit and rejuvenate their economy?’ This will be shown in regards to the London 2012 Olympic Games. It will also show the role business and politics have within the London Olympics, in addition to endeavour to illustrate the effects they impose on the Games. Furthermore, it will talk about the commodification of the games and also relate the games on a local level in regards to the Sydney Olympics.

Business, Politics and The Olympics
Business is a massive factor in regards to the Olympics, as the games tend to cost a great deal, although provide little economic benefit. Corporate sponsorships, government grants and sales of television rights are generally the main income for Olympic Committees, although, they are assisted by many other stakeholders of the host nation, such as, the tourism industry (Institute of Public Affairs, 2008). Although the Olympics generally provide little economic benefit, they also create job opportunities for many businesses (London 2012, n.d). Moreover, as the Olympics are seen as an event of high magnitude in relation to sporting events, they can be subject to many commercial forces, this can be seen as part of the growing commercialisation of sport (Wiley Online Library, 2011). This shows how commercialism conflicts with the fundamental principles of Olympism, which moves towards a non-materialistic event (Wiley Online Library, 2011).

Politics have been used within the Olympics as a political tool for many years, largely as a tool for global publicity for its host nation (Political, social and economic aspects of the Olympic Games, n.d). There have been many instances where politics have stolen the show at the Olympic Games, examples of this is the 1956 Melbourne Olympics, as political circumstances of these games were controversial (Institute of Public Affairs, 2008). The Games were held in somewhat of a difficult international atmosphere as the Suez Crisis and Soviet invasion of Hungary took political centre stage (Institute of Public Affairs, 2008). These international dilemmas’ resulted in countries boycotting the games in protest. The president of the Netherlands Olympics committee was quoted as saying ‘How can sports prevail over what has happened in Hungary? How would we like it if our people had been atrociously murdered, and someone said that sports should prevail?’ (Institute of Public Affairs, 2008). This was in response to the IOC president arguing that ‘the Olympic Games are contests between individuals and not between nations’ (Institute of Public Affairs, 2008).

Business, Economics and London 2012
The potential business and economic impact that the Olympics have on a country is very important, as it is can and will affect the entirety of a country. With London 2012 in mind, there is a greater focus on this subject, due to the economic downturn, with pressure being placed on government spending and employment (Sport and Society, n.d). Firstly when London was awarded the London Olympics it was estimated that the games would cost in excess of £4.0bn, which £3.4bn was funded by the public sector and a further £738 million from the private sector (House of Commons Committee of Public Accounts, 2008). Since then the budget has now been increased to upwards of £9.0bn; this includes a £2.7bn contingency fund, also £6.0bn of these monetary funds came directly from the English Government (House of Commons Committee of Public Accounts, 2008).

Although London 2012 is being held during an economic downturn and the budget is considerably high the English Government is being positive about their conduction of the Olympics, their vision in a business and politics sense is, to transform the heart of East London, to make Olympic Park capable of sustainable living and to showcase UK as a creative, inclusive, and welcoming destination to live in, visit and conduct business. Furthermore the Olympics committee have branded these games, The Legacy Games and The Economic Games (Department for culture, media and sport, 2009).

The Legacy Games
The Olympic Committee and government hope to deliver a lasting legacy from the Games; extensive plans have been developed to ensure that each legacy created becomes realised (Department for culture, media and sport, 2009). A legacy that has been created to assist with the revitalization of UK is the transformation of East London. Here they plan on building more than 30,000 new homes, some of which will be used during the Olympics, which a good percentage of these homes will being considered for affordable living (Department for culture, media and sport, 2009). Also, Olympic sporting facilities after the games will be available for use by the community and elite athletes, in addition over 100 hectares of land will be available for parkland, children’s play areas and park facilities. Furthermore, upgrades to the transportation system will be done, this includes the upgrade of many railway station; this will assist London’s transportation system for the long-term (Department for culture, media and sport, 2009).

The Economic Games

As previously stated, London 2012 is in the midst of an economic downturn, this has changed the ways in which the Government and the London Olympic Committee will focus on certain aspects of the games. They believe it is integral to achieve their legacy goals, which includes the rejuvenation of East London. Before the commencement of the Games, London 2012 has been giving numerous opportunities for individuals to be involved, through direct employment, training and apprenticeships (Department for culture, media and sport, 2009).

Due to England seeing the Games as The Economic Games, many economic benefits are already seen as being evident and the Games will also continue to play a vital role in improving the English economy. Examples of current benefits consist of; the creation of 75,000 supply chain opportunities, the creation of employment with up to 11,000 people working on-site and up to 100,000 contract jobs to assist at the games and the introduction of 350 construction apprenticeships at Olympic park (Department for culture, media and sport, 2009).

The economic plans also state long-term objectives, one of which is similar to the legacy of creating affordable homes, others consist of; creating opportunities for tourism, media, sport and numerous other government sectors within England; the estimated value of the games to tourism is £2.1bn. Furthermore, a long-term plan to increase the potential for investment and export will be established (Department for culture, media and sport, 2009).

An additional program that has been introduced to assist with businesses getting involved is the London 2012 Business Network (London 2012, n.d). The Business Network is assisted by CompeteFor; here businesses are assisted in gaining job opportunities. CompeteFor ensures transparency and availability of London 2012 business opportunities whilst increasing business numbers and diversity for involvement in the Games (CompeteFor, n.d).

Commodification of London 2012
Commodification or the commercialization of London 2012 is evident through the sponsorship of the Games. Although, as stated previously, one of the Games main principles is keeping it non-materialistic (Wiley Online Library, 2011). Monetary funds from sponsorship deals help greatly in raising revenue to fund London 2012, as approximately a third of the International Olympics Committee revenue is gained from sponsorship programmes (Kenyon, J, Palmer, C, 2008). Sponsorships are of great assistance also to the companies sponsoring, as many companies can use their brand awareness from the games commercially to their advantage (Ourcommunity.com.au, n.d).

With the exception of the International Olympic Committee, the running of the games is down to the responsibility of two organisations, The Olympic Delivery Authority (ODA), which is funded directly by the government and the London Organising Committee of the Olympic Games and Paralympic Games (LOCOG) (Kenyon, J, Palmer, C, 2008). LOCOG is a private organisation whose main revenue stream is from private sponsorships and the IOC (Kenyon, J, Palmer, C, 2008).

There have been many commercial sponsorship deals which London 2012 have gained throughout organising the games, an example of these is; Adidas, the German sportswear manufacturer whom paid an estimated £100m over 5 years to be associated with the Games (The Telegraph, 2008). Moreover, companies can also sponsor the Games in terms of providing goods for the running of the event, for example, BMW will be donating up to 4,000 Mini and BMW bicycles and motorbikes to be used by numerous stakeholders during the Games (BBC News, 2009).

Furthermore, domestic sponsorship of the Games can bring in considerable revenue, here; three tiers of sponsorship have been established. As an example, tier one sponsors must pay at least £50m for a six year association with the Games (Kenyon, J, Palmer, C, 2008).

Political Impacts and London 2012
As stated previously, the English government is participating largely in the conduction of the Games in regards to business and economics. They have also taken it into their responsibility to assist with other facets of London 2012. An example of this is the Olympic Delivery Authority (BBC Sport, 2005). The Olympic Delivery Authority, which was created by the English Government, is the public body whom are responsible for the development and building of infrastructure for the Games; they are also responsible for developing the infrastructure so that it can also be utilised by the community after the Games (London 2012, n.d). The ODA is responsible for building the main Olympic Park, numerous sporting facilities and transportation infrastructure, just to name a few (London 2012, n.d). An additional program that the English Government has implemented for the Games is a Cabinet-level Olympic Security Committee (BBC Sport, 2005). The security body is chaired by the Home Secretary, Charles Clarke; it will be responsible for all security issues surrounding the Games (The Telegraph, 2005).

There have been political issues that have risen surrounding the London Games; one of these issues involves the London 2012 Olympic Games logo (The Guardian, 2011). The Iranian Government has threatened to boycott the London Olympics as they believe the Olympic logo represents a pro-Israeli conspiracy (The Guardian, 2011). Although these claims have been made, IOC officials have said that it means nothing of the kind and are surprised the complaint has been made now, although the logo was unveiled in 2007 (The Guardian, 2011). An additional political issue that has derived from the Games is the collapse of the deal to sell Olympic Stadium after the Games (The Independent, 2011). Previously, the stadium was in the process of being sold to English Premier League side West Ham United, but now, the English Government has stopped negotiations (The Independent, 2011). The stadium will be kept under public ownership, which may result in an extra £60m of taxpayer’s money to be contributed to the construction (The Independent, 2011).

Australia and the Games

There are many aspects of London 2012 that can be related to Sydney 2000 in Australia. For instance, an aspect that is similar is the construction of Olympic venues to be used in the future by the community; as stated previously London 2012 was hoping to revitilise and transform East London and have the developments for future use (Department for culture, media and sport, 2009), Sydney used the same concept. For Sydney 2000, Sydney Olympic Park was constructed on what was a withered wasteland of Homebush, following the Olympics the site was transformed into the City’s main events centre (The Australian, 2011).

A differentiating factor amongst these two games is the set budgets. As stated previously the London 2012 Olympics budget is in excess of £9.0bn (House of Commons Committee of Public Accounts, 2008). This is in stark contrast to the Sydney 2000 Olympics as the budget for these games was approximately $6.0bn or £2.1bn (Liebreich.com, 2003).

Conclusion
Politics and business are highly relevant within the Olympic Games atmosphere. After winning the 2012 Olympic bid the English Government has made it apparent that there are numerous business and employment opportunities for local businesses and individuals to become involved in London 2012 (Department for culture, media and sport, 2009). As mentioned previously, the Games have assisted with employing tens of thousands of people, whilst helping numerous apprenticeships; these individuals are assisting in constructing sustainable housing, parklands and Olympic Park for London 2012 (Department for culture, media and sport, 2009). Also, the Government has assisted in others ways by implementing schemes to help the games run smoothly, such as, the ODA and Cabinet-level Olympic Security Committee as stated beforehand. Also, although it is not following the true meaning of the Olympics, without commercialisation through sponsorship, there would more than likely not be sufficient monetary funds for the games, and the Government may not have enough revenue to stage London 2012. Furthermore, as shown throughout this essay, Governments and in particular the English Government do use the Olympic Games as a vehicle to improve their economies and rejuvenate their nation as a whole.


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User:Amy.e.cotton/The Race in South African Sport

South Africa has faced much struggle in the past 60 years in regards to racial political issues. Since the introduction of Apartheid, and the subsequent abolishment of Apartheid, the nation has experienced a lot of hurdles in their development. South Africa is a nation that is inseparable from its sport, and it is these sporting bodies, through their own transformation, which have in turn helped South Africa evolve as a nation. In particular, Rugby Union, Netball, Football and Cricket have each shown dramatic transformations in their attempts to become racially equal sports. In South Africa’s revolution, they made attempts on a number of ways to reach an equal status. One of these was the introduction of racial quotas, which brought about a lot of controversy, as it was seen as undermining the basic fundamentals of sport. South Africa’s transformation has been specifically aided through sports and their hosting of major events. This has been a way of South Africa demonstrating to the world how they are now unified as a ‘rainbow nation’. This essay will show how sport has transformed in the post-apartheid era, and how this has in turn assisted South Africa in developing.

Introduction
For decades now, South Africa has faced a struggle between sport and racial political issues, impacting both South African sport and the nation as a whole. Apartheid was introduced in 1948, with the effect of extending and institutionalising existing racial segregation, and was only abolished in 1991. Apartheid had the affect of restricting inter-racial sport and thus politicising sport in South Africa (Bolsmann & Parker, p. 6, 2007). Since the abolishment, a revolution and transformation has resulted in sport in South Africa, with particular significance to Rugby Union, Netball, Football and Cricket. This discussion will include how these sports were initially impacted by Apartheid, what effect and changes this had on the sport, and finally how the sport is now dealing with the lasting ramifications of the issue. Consequently, sport has further influenced a change in South Africa and has been used as a tool for growth and unification in the country. The effect on these sports at a political and business level will also be explored, including a discussion of the Quota System established by the Government, and the controversial issues surrounding it. This essay will convey the interrelationship between sport, business and politics in relation to South Africa’s attempt to become racially equal within sport.

History of Apartheid in South Africa Concerning Sport

As part of the successful Afrikaner National Party slogan in the 1948 election, Apartheid was introduced. Apartheid brought about a number of changes to sport in South Africa and to the nation as a whole. In the early years of Apartheid, international criticism of the system grew. The national Rugby Union team, the Springboks, became increasingly isolated from society as they were seen as representatives of Apartheid. As unrest escalated in the 1970s, the Commonwealth signed the Gleneagles Agreement, which discouraged any sporting contact with South Africa. Moreover, South Africa were also absent from the Olympic Games for 30 years. Apartheid was officially abolished in 1991 when South Africa’s Parliament voted to overturn the legal framework, and a transformation began to occur. Nelson Mandela was significantly elected as President of South Africa in 1994.

The Quota System
In order for South Africa to move forward in the post-Apartheid era, a new policy was needed to unify their sports structure. A quota system was introduced to South African sport as a way of combating racial inequality, whereby sporting teams were required to include a minimum number of black or white people in their team. Furthermore, sporting bodies were required to provide racial demographic data of their sport in order to received national funding. These quotas were not always strictly followed and it brought about a number of contentious issues in sport, including whether it is fair to base selections on race and whether quotas undermine the basic fundamentals of sport. This Quota System was a quick-fix solution for a major issue at the time and has subsequently been rejected by the South African Government in recent times. Mr Fikile Mbalula, Minister of Sport and Recreation, stated: ‘the Quota System is both undesirable and a blunt tool that we believe will not bring about meaningful development and transformation in sport as envisaged’. Below are a number of examples of the application of the Quota System within South African sports. Rugby Union applied the Quota System in the early 2000s through the Super 12 Rugby competition. South African teams were required to have a minimum of two black players in their team, as this sport has been white-dominated. Netball’s racial quotas impacted a broad group including a number of different levels and ages. In 1995, provincial teams in the under-19 age division were required to have at least 40% representation of ‘blacks’ or ‘whites’ on their roster, with at least two players of each race on the court at all times. If they failed to do so, this would result in a loss of tournament points. In 2000, these restrictions were then enforced at the highest level of competition in South Africa. The South African Cricket Board decided to introduce quotas in 1993, to be reached by 2003 with the objective of achieving equal representation (Vahed, 2001). These figures included that there should be 50 per cent black membership on selection panels, and the appointment of black journalists, scorers, groundsmen, umpires and coaches. These quotas also stipulated that 44 of the 121 players in provincial areas must be ‘players of colour’ and they would receive cash incentives as a result.

Rugby Union

Rugby Union within South Africa has transformed as a sport due to the impact of Apartheid. Rugby Union was introduced to South Africa by British colonists in 1875, and was embraced by coloured and black populations from an early stage. However, in the 1900s, the sport was predominantly seen as one for white people. As a result, the Springboks, became a symbol of Apartheid for a number of decades. The struggle for national competition ultimately resulted in the defiance of the Gleneagles Agreement, when the Springboks decided to continue their tour of New Zealand in 1981. Consequently, the International Rugby Board banned South Africa from international competition, until Apartheid would end. Once Apartheid was abolished, South Africa returned to the international sporting stage. The transformation of Rugby also brought about a transformation in the nation. The sport became a representation of the start of the new beginning for South Africa when it hosted the 1995 Rugby Union World Cup. Not only were South Africa victorious, but the World Cup was also significant in showing the world how they had moved on. Recently elected President Nelson Mandela decided to wear a Springboks jersey, which became a powerful symbol in history of the white acceptance of the new order and unity within the nation. Furthermore, in 2007, the International Rugby Board honoured Nelson Mandela. He was presented with a crystal rugby ball, with the inscription: “For what you have done during the 1995 World Cup to unite your nation under the banner of rugby” (Walt, 2007). This is a clear indication of the link between Rugby Union and politics within South Africa and how sport was used to further build the nation.

Netball
Netball is South Africa’s most popular female sport, and is predominantly played by white women. This sport has undergone a major transformation in the post-apartheid era, in an attempt to become racially equal. Netball has faced not only a racial struggle, but also a gender inequality struggle, as it is a women’s dominated sport and therefore does not receive as much recognition in comparison with male sports. During Apartheid, Netball was immediately impacted by the international sports boycott on South Africa, with no international competition taking place. Netball attempted to spread their sport to a broader audience, however the sport was ultimately segregated between Africans, Whites, Coloureds and Asians. The sport suffered as a result, with certain groups becoming more disadvantaged in regards to resources, and the ultimate availability of the sport (Pelak, 2005). Eventually, in 1994, a racially inclusive national governing body was formed; Netball South Africa (NSA). Netball continued to struggle however, with a number of reformations in the Board due to racial protests, demonstrating just how far they have come. As Nkosi, a high level administrator at the South African Sports Commission, stated: ‘They have become more sensitive and more innovative in dealing with [racial] transformation than other sports’ (Pelak, 2005). Powerful symbols such as the appointment of an African president of NSA and also the inclusion of black players on the national team is evidence of this transformation Netball has taken pre-apartheid and post-apartheid. Furthermore, Netball has attempted to reduce the segregation between different classes of females in South Africa with the integration of teams and races in various competitions and leagues. Netball has attempted to forge a change in post-apartheid South Africa, through a unified identity, structural changes, affirmative action policies and everyday interactions between players and administration (Pelak, 2005). Netball in South Africa has managed to redefine racial boundaries and shift their image from a ‘White sport’, to a ‘racially diverse sport’ (Pelak, 2005). Netball South Africa are however, aware that their work is not finished, evidenced through their aim to break down economic barriers, thus demonstrating their continuing transformation as a sport in the post-apartheid era.

Football

Football in South Africa has long been held as inseparable from the struggle against Apartheid. This began in the 1960s when primarily black prisoners fought for their right to play Soccer on Robben Island. They organised a competition, adhering to FIFA regulations, and thus promoting the sport for equality. It was the rules of Soccer, based on ‘meritocracy, equality and self-determination’ (Perry, 2010) that empowered these people to use Football as a statement of racial quality. South African Football has also influenced the nation in the post-apartheid era. This was most predominantly seen when the nation hosted the 2010 Soccer World Cup, which South Africa were hopeful would show the world that the nation has changed and moved on from Apartheid. The planning of this event has helped boost South Africa’s infrastructure, leading to improvements in transportation and security within the nation, an indication of the connection between Football and politics Football has also provided a boost for Africa in terms of health (Perry, 2010). South Africa is one of the most poverty-stricken nations, with high levels of violent crime and a global record of HIV/AIDS. However with these figures constantly improving, South Africa were hopeful that the World Cup could bring about change to the nation on a social level. As Danny Jordaan, head of South Africa’s organising committee stated: “It we can deliver the World Cup, we will have finally dismissed the idea created by apartheid that there are greater and lesser human beings. We will be ready to take our place in the world” (Perry, 2010). The Football World Cup is one example of how changes in sport have then influenced South Africa as a whole.

Cricket
Cricket is an example of a sport which is seen from the outside as white-dominated in South Africa, however it is also popular among black people, but is not recognised as highly. In the post-apartheid era, cricket’s attempt to move towards becoming a racially equal sport was epitomised when the United Cricket Board (now known as Cricket South Africa) made an official founding statement in 1990: “to form one non-racial democratic controlling body” and to “contribute through cricket to a just society in South Africa” (Gemmell, 2007). These statements clearly show how Cricket has made an attempt to also work with South Africa as a nation, to help it grow. Some believe Cricket’s transformation in the post-apartheid era has been minimal, with the sport remaining predominantly white involved (Vahed, 2001). This may be reflected in the ideology that they are set on their position of electing their best eleven for every match, not allowing quotas to influence their national team. On the other hand, some believe that cricket has come a long way as black people have had an influence on the sport, claiming the black players including Makhaya Ntini, were the stars of the 2003 Cricket World Cup (Gemmell, 2007). A demonstration of how Cricket has assisted the nation in also transforming in the post-apartheid era is evident through their hosting of the 2003 Cricket World Cup, in cooperation with other African nations. Furthermore, players and sport were required to contribute, through cricket, to the wider society and assist in reconciliation (Gemmell, 2007). This shows how Cricket has been able to use its position as a sporting body to influence the nation in transforming in the post-apartheid era.

Conclusion
South African sport has shown a dramatic transformation since the introduction of Apartheid in the 1940s. From here, the nation has also transformed, showing how South Africa is inextricably linked to its sports. It has been shown above, that South Africa’s major sports, including Rugby Union, Netball, Football and Cricket, have evolved in the post-apartheid era in attempts to become a racially equal nation. It is evident that the hosting of major sporting events has assisted in this transition, as they attempt to show the world on a large scale, how South Africa has moved on, and is a new nation without Apartheid. These events have assisted this development on a number of levels, including health and infrastructure. South Africa has moved from a time when there was complete racial inequality, to a time when racial quotas were accepted, and now, they could be considered a racially equal nation. This status has evolved mainly in the post-apartheid era, and has been aided by the involvement of sport, in their attempt to unify their nation, South Africa.

Reference List
Atherton, M, 2007, ‘End in Sight for South Africa’s quota system’, Telegraph, 11 November.

Barnes, S, 2002, ‘South Africa’s quota system no black and white issue’, Times Online, 9 January.

Bolsmann, C, Parker, A, 2007, ‘Soccer, South Africa and Celebrity Status’, Soccer and Society, vol. 8, pp. 109-124.

Cornelissen, S, 2008, ‘Scripting the nation: sport, mega-events, foreign policy and state-buildings in post-apartheid South Africa’, Sport in Society, vol. 11, pp. 481-493.

Gemmel, J, 2007, ‘South African Cricket: ‘The Rainbow Nation Must Have a Rainbow team’, Sport in Society, vol. 10, pp. 49-70.

Hoglund, K, Sundberg, R, 2008, ‘Reconciliation through sports? The case of South Africa’, Third World Quarterly, vol. 29, pp. 805-818.

Keim, M, 2005, ‘Sport as Opportunity for Community Development and Peace Building in South Africa’.

Korr, C, 2010, ‘Reflections on the importance of sport in the struggle to end Apartheid’, Sport in Society, vol. 13, pp. 32-35.

Merrett, C, 2001, ‘The Challenge of Non-Racial Cricket to the Apartheid State of the mid-1970s’, The International Journal of the History of Sport.

Pelak, C, 2005, ‘Athletes as Agents of Change: An Examination of Shifting Race Relations Within Women’s Netball in Post-Apartheid South Africa’, Sociology of Sport Journal, vol. 21, pp. 59-77.

#ixzz1Xic4tv2a Perry, A, 2010, ‘South Africa: Playing the Rebel Game’, Time Magazine, 3 June.

Smith, A, 2001, radio program, ‘Springboks 1971’, The Sports Factor, Radio National, 29 June.

Vahed, g, 2001, ‘Transformation in South African Cricket’, International Review for the Sociology of Sport.

Walt, V, 2007, ‘South African Rugby: No Rainbow’, Time Magazine, 6 September.

Further External Links
South African Rugby Union

South African Football Association

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


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User:James Bannon/Sponsorship in Basketball

The NBA and the NBL are two big basketball competitions that are held in Australia and the USA, the most recognisable competition being the NBA held in the US. There is lot of attention surrounding the two competitions with sponsors trying to outdo each other, TV stations trying to get the rights to air the game and players moving from team to team for more and more money. This paper will look at the sponsorship that goes into the NBA and the NBL, the media surrounding both competitions and the money that surrounds the competition as well. It will talk about players and the amount they get paid, sponsors and how they try and put their brand on the teams and players and how the media tries to get the top players to be on their talk shows or in their magazines.

Outline
What was created in 1892 by one Dr James Naismith has now become one of the most watch games in the world. With various competitions held throughout the world, the most recognisable being held in the US. The sport is Basketball and it is growing in numbers every year. The game has changed considerably since its inception over 100 years ago from rule changes to sponsorship deals, more and more people are becoming attracted to the game. The spectators could be drawn to the game because of all the advertising and the half time shows that are put on. With the ever growing sponsorships and trading of players for millions of dollars is the game getting better or worse? How is it that the superstars that we see on T.V such as Kobe Bryant, LeBron James, or even Andrew Bogut still love the game with all the media and sponsorship attention? Are they playing the game because they enjoy it or are they only doing it for the money? This essay will look at the NBL and the NBA and compare the sponsorship, advertising and how players move from team to team. Whether it is for the money or a political move do they still play because they enjoy what they do?

Introduction
What was created in 1892 by Dr James Naismith has now become one of the most watch games in the world. With various competitions held throughout the world, the most recognisable being held in the US. The sport is Basketball and it is becoming one of the most popular and viewed sports in the world. The game has changed considerably since its inception over 100 years ago from rule changes to sponsorship deals, more and more people are becoming attracted to the game. The spectators could be drawn to the game because of all the advertising and the half time shows that are put on. With the ever growing sponsorships and trading of players for millions of dollars is the game getting better or worse? How is it that the superstars that we see on T.V such as Kobe Bryant, LeBron James, or even Andrew Bogut still love the game with all the media and sponsorship attention? Are they playing the game because they enjoy it or are they only doing it for the money? This essay will look at the NBL and the NBA and compare the sponsorship, advertising and money. Do the players play the game because they enjoy it or do they play for the money?

Body 1
The NBA and NBL are two professional basketball codes. NBA in the US and NBL here in Australia, but the difference in sponsorship deals between the two are quite big, both in terms of individual player sponsorship and team sponsorship. The NBA has millions of dollars that they gain from companies that sponsor the game such as Nike, Adidas, AND 1, ESPN and Gatorade. These are just some of the NBAs’ sponsors. Players also receive sponsorship through other means as well such as endorsement deals and other promotions. Such as promoting Gatorade or PowerAde, T.V commercials for items such as cars and sporting equipment or even a particular brand of clothing or aftershave. Some companies even approach NBA players and ask them to be the face of their brand. Brands such as Gatorade and Nike are two of the main sponsors for the NBA. Nike provides a lot of the sporting apparel for the teams such as shoes, socks, and sweat bands. Whereas Gatorade on the other hand provides drinks for the players. These two companies find this beneficial due to the fact that there are thousands of fans that turn up to any one NBA game each week to watch their favourite teams and players. If they see their favourite players drinking a certain type of drink or wearing a certain type of clothing they are likely to go out and purchase that particular product. Nike is one of the biggest sporting apparel brands sponsoring the NBA. They have reached this point through good marketing strategies. Teaming up with one of the most recognisable faces in basketball, Michael Jordan and they have created a label called ‘Air Jordan’ which has come across as a big success. Each club also has their own type of merchandise which range from jerseys, to basketballs, towels, water bottles and scarfs. All of which bring money into the club. The most popular item being the team’s jersey with the players’ names on the back. Here in Australia there is not as much hype about the NBL. The NBL doesn’t attract nearly as much attention as the NBA. The sponsorship in Australia is different as well compared to the NBA, there are some similar sponsors but they’re not all the same. The official sponsors of the NBL are iiNet, One/Ten network, centrebet.com, AND1, Spalding, Rent Smart, and Virgin Blue airlines. Companies in Australia aren’t prepared to put the money into the NBL teams for the long run because they aren’t sure what the future will hold. A lot of companies that sponsor NBL teams are more interested in sponsoring the team instead of an individual player. But companies tend to sponsor teams for a season or two before moving on.

Body 2
The media provides the night’s games live or delayed depending on where the games are being played, to your household that day or night. But the media also make a big deal out of something or someone that is not always true or necessary. Sometimes the media puts a lot of hype on a particular game or makes one particular person look like a superstar. This is not always a good thing for the athlete either because it adds extra pressure to them. The media isn’t just made up of T.V either. Other forms of media such as newspapers, magazines, radios and even companies that produce posters can pay an athlete a lot of money to be on their poster. The NBA is becoming more aware of using social media as a way of promoting the game and attracting more attention. Social media sites such as Facebook and twitter are becoming good areas to promote games and even attract players to be sponsors of the site and get paid to put up statuses and tweets. Media can help basketball by promoting the league, teams and the players. It can draw positive aspects towards the game by showing off the athleticism of the players and how they can be/are good role models on and off the field, but the media can also be a bad influence on the players. They could have lots of commitments to the media such as T.V talk shows, interviews for the papers and magazines and even have commitments to radio stations, all of which can interfere with the athletes’ personal space. So can players still enjoy playing the game without being hounded by the media every spare second they have free off the court? Most of the time they don’t like it. There has been a bit of media attention surrounding the NBA lockout and whether or not some of the NBA players should be allowed to play in the NBL while the strike is on so they can keep up their match fitness in case the lockout does finish before the end of the NBA season. If they do rule in favour on NBA players playing in the NBL, the NBL could suffer a future debt because the players are still looking to get paid a large sum of money. The NBL doesn’t attract quite as much attention as the NBA partly due to the fact that not as many people follow basketball in Australia. The NBL are starting to use facebook and twitter and have even put up some of the weeks highlights on YouTube both from individual games and from every game of the week.

Body 3
Money plays a big factor both here in the NBL and in the NBA in the US. Players being traded from team to team or even moving to another club for a very large sum of money. The NBA is a very appealing place to have a career as a basketball player because it is one of the best competitions in the world. The best players in the NBA are reported to earn millions of dollars. Partly because there is money to spend on teams and players, but it has some of the best players in the world competing in the same competition. It is said that the number one drafted rookie in their first season in the NBA, their pay is set around $4,429.90 US for the season. That is only for the first season. It’s set to rise each year that they are contracted to play with the team. At the end of their third season with the club if they wish to continue onto their fourth year with the club their salary is set to rise another 26.1% on top of their third year salary. If they are good enough to earn a permanent contract after that their contract payment then rises 30% over their fourth year salary. As well as sponsorships and endorsement deals their salaries could even be higher than that. In Australia you don’t see too many rookies starting their carriers’ in the NBL compared to the US, this is because in Australia the NBL is considered a semi professional league. Players still get paid to play, they just don’t earn as much as players in the NBA would. While the NBL consist of a lot of Australian basketball players, there are a fair few players coming over from the US to help boost the sport in Australia. But they are also offered a large amount of money in return for their services. There was a move a while ago where US player LeBron James moved to Miami Heat from the Cavaliers. There was some speculation whether he would or he wouldn’t move, but in the end he did. Some say it was due to a large sum of money offered his way others beg to differ. It is said from LeBron James’ camp that he decided to move after a seven year stint with no luck at winning a championship and gaining a ring. It seems as though players are willing to move to other clubs for higher amounts of money and are not too worried about club loyalty or sticking with team mates that they may have played with for years.

Conclusion
Sponsorship plays a bit part in professional sports these days and basketball is a prime example of it. With big companies sponsoring both teams and individual players their brand will get them the attention that they want. What sponsors get in return for spending thousands of dollars on players is the publicity that they want. They want to be known for supplying their brand to the best player, then being ‘the best brand’. They reach their audience by giving out free products at the games, by showing their advertisements courtside, having the commentators say their brand name during the breaks and by sponsoring the game it’s self. Without sponsorship in both professional basketball leagues there would be a big financial hole.L and the NBA would be getting a lot of recognition particularly in the NBA, partly because it is one of the biggest sporting competitions i Business’ that sponsor both the players and the teams both in the NBn the world, but also because people from all over the world watch it.

Presentation
http://www.slideshare.net/james_bannon/money-sponsorship-and-basketball-9992605


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User:Mvest

My name is Matt. I am studying Business, Politics & Sport at University of Canberra as part of a Sports Media degree.

/The Global Expansion of Rugby Union/

title: User:Mvest


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User:Mvest/The Global Expansion of Rugby Union

The presentation can be found at this link.

In a constantly changing global market where sports must compete against each other to promote and develop their 'brand' across the globe, the International Rugby Board utilises a number of different methods to do so. These methods involve initiatives that relate closely to both business and politics on both a global and local scale.

Introduction
The International Rugby Board (IRB)’s mission to expand rugby union globally encompasses the funding and development of the sport worldwide. The IRB strives to achieve its goals of promoting rugby union worldwide while competing in a constantly changing global market. It does so through a number of strategies such as the staging of the Rugby World Cup tournament, providing financial support to rugby playing 'minnow' nations and getting Rugby Sevens involved in the Olympic Games. Finally, the IRB has a Strategic Plan in place to serve as an outline for the IRB’s core objectives leading into the future. Each of these involves a relationship with both business; on a local and national scale, and politics; either within rugby, inter-sport politics or government politics.

Rugby World Cup
The IRB’s showcase international tournament, the Rugby World Cup generates the vast majority of the Board’s income. This income is generated through the surplus funds of the tournament’s ticket sales, broadcasting rights, merchandising and sponsorship deals. Throughout Rugby World Cup history, each tournament has seen a vast increase in total surplus funds – giving the IRB the means to fund the game globally. From comparatively small figures of $M17.6GBP ($M27.2AUD) surplus generated by the 1995 Rugby World Cup in South Africa, the tournament’s surplus skyrocketed to a massive $M122.4GBP ($M189.3AUD) in the 2007 tournament held in France. Despite these massive gains, the IRB faced a dilemma in granting New Zealand the rights to host the 2011 tournament; because of its dependence on the World Cup for revenue, the board must elect host nations based on the financial viability of the bid, because of its responsibility to continue to fund and develop rugby union globally. There is evidence to suggest that rugby union is continuing to gain support globally. The number of viewers worldwide for the 2007 tournament in France exploded to 4.2 billion people watching from more than 200 countries, an increase of over 800 million people from 193 countries on the highly successful 2003 tournament in Australia. The growth in revenue is expected to continue into the future, with the 2015 World Cup in England expected to be the most profitable tournament in history. The tournament is not only the main source of funding for the IRB, it is also the main event for world class rugby union to be on display to a demanding and constantly changing global market. It is a significant opportunity for the IRB to garner interest in the sport worldwide by ‘advertising their product’ to potentially interested investors and other nations who may be interested in introducing the game into their national sporting system. The Rugby World Cup presents an excellent, high quality brand of rugby that no other tournament in the sport can compare to, which provides the IRB with its main selling point for potential customers. While the tournament is an enormous financial asset to the IRB, it is also an opportunity for potential host nations to place a bid for hosting rights. The incentive for governments to host the Rugby World Cup extends from the tourism boost that comes with hosting the tournament, to the great amounts exposure the tournament brings to such countries. The boost in tourism in turn has a positive impact upon the economy of the host nation, as tourists tend to purchase souvenirs and other merchandise while in foreign countries. Tourism also provides a significant financial boost on a local scale as small businesses can benefit from the boost in tourist numbers. Estimates put the total figure injected into the French economy during and in the weeks after the 2007 Rugby World Cup at around $M163GBP ($M252.8AUD) after deducting the outgoing costs of TV rights fees, sponsorship deals and ticket transactions. Along with the privilege of playing host to a major sporting event, the economic benefits provide excellent incentive for countries to bid to host the Rugby World Cup.

Funding & Development
The IRB has a vision ‘...to grow the Game in developed and emerging Rugby markets around the world over the next 10 years and we have a tremendous opportunity to do so with three Rugby World Cups and two Olympic Games within the period.’ This vision encompasses the IRB’s goal of developing and exposing the sport of rugby union to a bigger global audience. It is a product of the IRB’s desire to make their ‘product’ as marketable and exciting as possible, a core factor in achieving financial goals in the modern world. The Strategic Investment Programme is one of the IRB’s main initiatives in funding the development of rugby union. Its aim is to assist Tier 2 and 3 nations financially to help such countries be more competitive against the higher ranked Tier 1 nations. The Programme is the basis for major projects in improving the standards of lower ranked rugby-playing nations; for example the High Performance Centre that was established in Samoa, towards which the IRB contributed over $M1 GBP ($M1.5 AUD). In accordance with the Programme the IRB plans to spend over $M2.2 GBP ($M3.4 to fund the Samoan Rugby Union’s High Performance Programme from 2009 – 2012. This funding will assist the country of Samoa in developing quality rugby players at a grass-roots level as well as strengthening the performance of their national teams. Another minnow nation that has flourished with the assistance of the IRB’s Strategic Investment Programme is Georgia ; from two High Performance Centres opening in the country to winning the European Nations Cup title to qualify for the 2011 Rugby World Cup, the improvement of the standard of rugby union in Georgia is evident. The nation’s recent success is proof that the continued involvement of the IRB in funding minnow nations’ rugby union developments has been highly successful. The heightened sense of interest in rugby union was highlighted in Georgia when it became recognised as the country’s national sport. This underlines the fact that rugby union is continuing to evolve as is its fan base, with more and more countries expressing an interest in becoming Member Unions of the IRB. The rise of Argentina in recent years is a testament to the IRB’s willingness and desire to help all Member Unions succeed. The continued improvement of the standard of rugby in Argentina was underlined when the Pumas made their first ever World Cup semi-final appearance. Along with extra funding of $M10 AUD to help the country retain their status as a Tier 1 rugby nation, the Board has granted Argentina entry into the Tri Nations tournament usually contested by heavyweights Australia, New Zealand and South Africa. From 2012, the tournament will feature Argentina’s Pumas in a revamped four team competition. This will expose Argentina to much more top level rugby and help to develop interest and participation in the country. In turn it may also have a positive effect in the rest of the Americas, particularly in South America where there is currently very little interest in rugby union.

Rugby Sevens in the Olympic Games
The decision made by the International Olympic Committee (IOC) in 2009 to include Rugby Sevens in both the 2016 and 2020 instalments of the Olympic Games was a massive boost in terms of advertising the game of rugby union. The Committee was very supportive of the IRB’s pitch to have Rugby Sevens established as an Olympic event, with 81 out of a total 90 members voting in favour of welcoming the sport into the Games. As the Olympic Games is the premier sporting event in the world; with over 200 countries participating in the Games and millions of viewers worldwide, the exposure that Rugby Sevens will generate for the sport is immense. It will also provide many nations with an opportunity to experience Olympic glory and in doing so could help to establish rugby union as a major sport in countries dominated by other sports. Sport is increasingly becoming more of a lucrative business than simply a pastime or hobby. In recent years this has led to major world sports such as soccer, cricket and rugby union into competing against each other in an effort to increase participation and revenue on both a local and global scale. Competition between sports is one of the main features of sport in the modern world. In the professional era of sport there is a constant necessity to improve the ‘product’ to provide a better spectacle for the fans. This is where the fast-paced, entertaining version of rugby union known as Rugby Sevens excels. The shorter format of the game allows for plenty of excitement while meeting the needs of today’s on-the-go spectators. It is a sport that is perfectly suited to the Olympic Games and will undoubtedly generate a large amount of interest in both formats of the game.

Strategic Plan
In 2007 the IRB implemented its Strategic Plan, one of its most significant political and financial initiatives. The Plan consisted of the Board’s ideas for bolstering development of the game in established rugby-playing nations as well as its ideas for expansion across the globe. The Plan was developed in conjunction with the IRB Member Unions, who worked closely with the Board to ensure that the matters addressed were relevant and met the needs of all those involved or affected by it. The Plan identified key areas in achieving its goals, and outlined the requirements for it to succeed. One of these areas was the necessity that the IRB find ways of increasing the profitability of its assets, including tournaments and broadcasting deals through the use of effective marketing. Maximising profit is a huge factor in any business in the modern world, and is at the heart of the IRB’s Strategic Plan. The profits gained through tournaments, sponsorship and broadcasting deals allow the IRB to continue to support and fund rugby union at all levels of the sport. Another of the goals outlined in the Plan was to increase the number of people – both men and women, participating or getting involved in rugby union. The specific numbers the IRB set out to achieve in the Plan were to have over 6 million players worldwide, with over 400,000 women participating in the game. This was to be achieved by developing programmes which encouraged participation in rugby union, having rugby union taught in IRB Member Union schools and the general promotion of rugby union as an exciting worldwide sport.

Conclusion
The strategies that the IRB employs in helping the game of rugby union to prosper and grow around the world have a great impact upon the game on a local and international level. Each of these strategies involves some degree of business and politics, and are important in helping the Board achieve success in the modern world of sports. These strategies are the driving force behind the IRB’s ongoing mission to make rugby union a truly global sport.


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User:Trent hop

Introducing Trent I'm studying Business and politics of sport

/Revival of Australia Cricket/

/Why GWS will win the battle of Western Sydney/

title: User:Trent hop


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User:Chris Todd

My name is Chris and I am completing Sport Coaching and Exercise Science/Sport Management at UC.

I am currently studying business, politics and sport as one of my subjects.

I am highly involved with volleyball as an athlete, coach and adminstrator.

/Elite Volleyball in Australia/

/Is V-League better than AVL/

title: User:Chris Todd


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User:Daniel.Higgins

Hi, I'm Daniel and I'm currently studying a Bachelor degree of Sports Management at the University of Canberra. The aim of my writing will be to investigate the impact of foreign ownership and foreign players on the English Premier League, football in England and football globally.

/Foreign ownership and foreign players: the impact on the English Premier League and its teams/

title: User:Daniel.Higgins


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User:Emmy

Intro about me..

I'm studying Business Politics and Sport as apart of my Bachelor of Tourism Management, majoring in Sports Management. I am currently in my second year of study at UC.

Interets: Netball, AFL, Water sking and Touch Football

/Sport's patriarchal hold on sport behaviour/

title: User:Emmy


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User:SDunk

My name is Sigourney Dunk. Currently studying sports management at University of Canberra. Currently employed at Capital Football as the Referee Manager.

/Corruption; Sport's skeleton in the closet/

title: User:SDunk


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User:Mplevey

Intro about me

I'm studying Business politics and sport

/The Introduction of "Financial Fair Play" in Football/

Third year Sports management student.

Interests: Football, Basketball, extreme sports.

title: User:Mplevey


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User:Leigh.Sherman

Hi, my name is Leigh and I am currently studying Business, Politics and Sport as part of my Coaching and Exercise Science/Sports Management degree.

/Sports Sponsorship and Government Regulation/

title: User:Leigh.Sherman


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User:Reece.V

Hi, my name is Reece and I am currently studying a Bachelor of Sports Management at the University of Canberra. The focus of my uploaded material will centre on the business and politics of sport.

/The Business and Politics of Doping in Sport – an investigation into the implementation of a separate ‘legal doping’ sporting competition/

title: User:Reece.V


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User:U3017206

Intro about me

My name is Katrina Stawski and i'm studying Business, Politics and Sport at the University of Canberra. I am in my fourth year of studying a Bachelor of Sport Management and Bachelor of Tourism Management majoring in Event Management.

Interests: Tennis, Skiing and travelling.

/Business and Politics of Sport Celebrity Endorsements/

title: User:U3017206


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User:Downie

My name is Aaron Downie and I'm a student at the University of Canberra undertaking a Bachelor of Sports Management. My main sporting interests involve rugby league, cricket and soccer.

This profile has mainly been created for the unit Business Politics and Sport where we have to write a sports-related essay, linked below.

/Limited News Involvement is the Best Thing for Rugby League/

/Essay outline/

/Limited News Involvement is the Best Thing for Rugby League Presentation/

title: User:Downie


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User:A Brown

Hi, I'm Aidan and I'm currently completing a Bachelor of Sports Coaching & Exercise Science / Sports Management

The following report was an assessment item for my Business, Politics and Sport unit.

/FIFA WORLD CUP: the Holy Grail of Australian Football/

title: User:A Brown


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User:WillSackett

Hi, I'm Will, I am currently in my 2nd year of study of a Bachelor of Sports Management at the University of Canberra.

This page has been set up for the unit Business, Politics & Sport

/The Role of Sport for Government/

title: User:WillSackett


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User:MBrown

Hello I am Merryn and I am studying Business Politics and Sport.

/Grass Roots Sport vs. Elite Development: Decided by Government Sports Funding/

title: User:MBrown


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User:RB2011

Hi

Name is Ryan. Studying Business, Politics and Sport. Bachelor of Sports Management and Tourism Management.

/Politics of Rugby League/

/Presentation/

title: User:RB2011


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User:WillSackett/The Role of Sport for Government

A link to my presentation which can be found on my blog

Sport plays a major role in Australian politics. The Federal Government has a Minister for Sport, and an Office of Sport, which is responsible for a significant budget. The Office of Sport comes under the prestigious portfolio of the Department of Prime Minister and Cabinet. The Federal Government sees sport as an important element of our culture. Both Government Ministers and Shadow Ministers ensure they have a presence at most of the major sporting events in our country.

A report commissioned by the Rudd Labor Government, the Crawford Report, is a focus of this paper. This report was a major development in the future of Australian sport and could potentially play a major role in increasing the focus on grassroots sport in the country.

The Crawford Report was a review of the Australian sporting system undertaken in 2008, published the following year. The report aimed to investigate the current structure of sport in Australia. One of the important findings recommended by Crawford (2009) was that the Federal Government’s focus on success at the Olympics and Paralympics has resulted in grassroots sport being significantly underfunded.

This essay will cover topics such as how governments see the role of sport in today’s society, where government funding for sport goes and whether the Federal Government in particular should be funding sport in the way it does, or should a different model be adopted.

Introduction
When the word sport in Australia is mentioned, almost everyone starts listening. Sport is considered a huge part of the Australian way of life. Nearly all Australians watch sport in some form whether it be cricket, Australian football, hockey or netball. Many of us tune in to our televisions, radios and increasingly the internet, to keep up to date with the latest sporting action.

Many people play sport as well, particularly on weekends where adults and children alike spend countless hours running around for their local sporting club. Today however, grassroots and community sport is receiving less attention than when the Whitlam Government first allocated funding towards sport. Currently it is estimated by the ABS (2011) that 64% of the Australian population aged 15 and over are involved in sport in some way, whether it be coaching, playing or volunteering.

Sport is becoming an increasingly important political tool for the Federal and State Governments of Australia. This paper will discuss how sport in Australia is currently being funded. It will also talk about the Crawford Report and the government's response to this paper as well as the impact of the Sydney 2000 Olympics had on sports funding. It will finally talk about whether the current funding structure is appropriate for Australian sport and if not where changes need to be made.

How Australian Sport is Funded
Australian national sport is currently predominately funded by the Federal Government. The main focus of the Federal Government's funding is to promote Olympic success. Many sports in Australia such as Canoe Kayak rely on good performances from their athletes to secure funding from the government every four years.

In Australia there is a disproportionate amount of Federal Government funding to elite sport, which receives much more funding than grassroots and community sport. The Australian Sports Commission (2011) received $168 million for elite sport and just $87 million for grassroots sport for the financial year of 2009/2010.

The Federal and State Governments of Australia fund sport using a trickle down effect (Hogan & Norton 2000). The trickle down effect is when money is pumped into the top end of sport where elite athletes and high performance sport receive the majority of the funding (Hogan & Norton 2000. This funding is given to advance sports science, facilities, coaching and the athletes in an attempt to increase Australia's sporting prowess at the elite level.

This is a short term view. Children may be inspired to play tennis after Sam Stosur won the 2011 US Open, but this will be difficult if there are no opportunities or facilities at the local level.

It is assumed by State and Federal Governments, and it is the argument of many prominent Australians such as the Australian Olympic Committee (AOC) President John Coates that gold medals won by Australians inspire younger generations to play sport. There has been some research conducted into the the trickle down effect on local grassroots sport which has indicated there has been little or no increase in grassroots sport participation (Toohey 2008).

Ultimately, the Australian Government funding of sport has lacked emphasis on grassroots participation where most sport in this country is played.

Sydney 2000 Olympics
The selection of Sydney as the host city of the 2000 Olympics was huge for Australian sport. It was an opportunity for the city of Sydney and Australia itself to be in the spotlight and show the world what Australians are capable of producing. As a result of the International Olympic Committee's (IOC) decision to award the games to Sydney, funding of Australian sport greatly tipped in favour of elite sport, particularly those who compete at Olympic level (Toohey 2010). With the Federal Government's investment in hosting the Sydney Olympics, it was the expectation that grassroots and community sport would benefit, however (Toohey 2010) pointed out that the increase was minimal and over a longer period it may have even decreased.

In the lead up to, during and immediately after the Sydney Games, the Federal Government, the Australian Sports Commission as well as the IOC continued to promote the Olympics and the impact it would have on a local sporting scale (Toohey 2010). This is known as the trickle down effect where inspirational performances at the elite level of sport are said to result in greater participation at a local sporting level. (Green 2007).

The Crawford Report
The Crawford Report was released in 2009. It was an inquiry into the current structure of Australian sport commissioned by the Rudd Labor Government in 2008 under the Minister for Sport, South Australian Senator Kate Ellis.

The report was commissioned to investigate the current structure of the Australian Sporting System and the changes that need to take place to ensure that Australian Sport remains viable and ready for the future both at the community and grassroots level as well as the elite level (Crawford 2009).

Among the Crawford Report's many recommendations included redirecting much of the Olympic Funding towards sports that are much more popular with Australians such as Rugby League and Cricket (Crawford 2009). The Report into The Future of Sport in Australia (Crawford 2009) found that there was very little evidence of high profile sporting such as the Olympics or the Australian Open (tennis) having a positive effect on participation levels in the community. On this basis Crawford (2009) suggested that if the current funding structure of the 'trickle down effect' (Hogan & Norton 2000) was to remain in place, that funding at the elite level should be in part redirected to sports such as tennis, cricket and soccer. This is because Australians are more likely to participate in these sports during their lifetime than many sports which receive Olympic funding from the Federal Government.

One of the other key findings of the Crawford Report (2009) was that the Federal Government along with the Australian Sports Commission (ASC) has been clearly focusing on success at the Olympic and Commonwealth Games and to a lesser extent the Paralympics. As a result of this focus, (Crawford 2009) suggests that community and grassroots sport has been very much underfunded and has been neglected as a result.

The Government's Response to Crawford
The Australian Government produced a response to the Crawford Report which is known as Australian sport: the pathway to success, 2010. This response outlined the areas of the Crawford Report that will be accepted by the Government as well as outlining other areas such as expanding the role of women in sport and increasing opportunities for the disabled to participate in sport and recreation activities (Australian Sport:the pathway to success 2010). Not long after the report was released the Federal Government changed the Minister for Sport. Kate Ellis was replaced by Senator Mark Arbib in September 2010. Despite the Federal Government releasing its response to Crawford (2009) and accepting several of the report's recommendations, [Sport:the pathway to success 2010) the focus under Senator Arbib has again returned to Elite sport in the lead up to the London Olympics in 2012.

Arbib claimed in his speech at the Australian Paralympic Committee (APC) lunch on the 28th January 2011 titled Keeping the Green and Gold on the Podium (2011) that the connection between Australia's elite athletes finishing on the podium and young children participating in sport at the community level cannot be ignored. Arbib would be correct if the connection between performances at the elite level and increased participation by our children had been shown to be the case. It was found by Hindson et al (cited in Hogan & Norton 2000, p. 212) that there is no evidence that the trickle down effect increases participation in sport. The 1994 study by Hindson et al (cited in Hogan & Norton 2000, p. 212) went onto suggest that it may even reduce participation at the local level, particularly if there is a large gap between the elite athletes performance and the ability of community participants.

After all the good work of the Independent Sports Panel and despite the Federal Government accepting many of the Crawford Report's recommendations, since the new Sports Minister Senator Arbib has been appointed we are now back to where we started with funding primarily focused on Olympic success.

The Department of Prime Minister and Cabinet's Office for Sport (2011) suggests that the Federal Government is committed to supporting sport at the local level to promote healthy lifestyles. However it could be argued that current funding of sport does not reflect this statement.

Where the focus should be

There should be an increased focus on grassroots and community sport in Australia. In the financial year of 2009/10 the Australian Sports Commission (ASC) allocated $87.8 million to grass roots and community sport (ASC Annual Report 2010). This is compared to elite sport which received $168 million (ASC Annual Report 2010).

There needs to be a change in the current structure of funding for Australian sport. There are a few reasons for this. One is the fact that as the Crawford Report (2009) pointed out grass roots and community sport in Australia is a fundamental part of sport in this country and as a result it must be funded appropriately. This means that the funding should be increased to provide greater benefits to all Australians.

One of the other major reasons why the current structure needs to be changed is the declining health of many Australians. The Australian Bureau of Statistics (ABS 2008) has suggested that more than half of Australian adults are overweight with numbers greatly increasing. The Federal Government has said that it is greatly concerned about this trend, but their funding of grass roots and community sport does not reflect this. Sport and physical education could play a major role in addressing the issue of health of communities. The Government's funding of sport should reflect this increasingly important issue.

Conclusion
Sport is a major part of Australian life. Elite sport and success at this level has been something on which we as a country pride ourselves. However the current "trickle down" method of funding used by the Federal Government has been shown by the extensive research undertaken in the Crawford Report not to work, despite what we are told by John Coates and Mark Arbib. As a result it is about time that the current funding structure be changed to better address community needs of all Australians. With rising obesity levels and sedentary lifestyles of many, there needs to be more sports funding at the community level, where our younger generations could be encouraged to participate. Elite sport would not suffer as a result of this change, but it may benefit in the long term.

There is no evidence that inspirational performances at the elite of sport increase participation levels at the local level. Surely it is time for the current funding structure to change to one which increases its focus on grassroots sport or what could be called a "bottom up" approach. If this is done all areas of Australian sport would benefit and at the same time improve the health of all Australians.


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User:U3017206/Business and Politics of Sport Celebrity Endorsements

Hey everyone, check out my presentation that I've uploaded on my wiki page on sport celebrity endorsements. It summarises all the main ideas and arguments from my essay in a new dimension. To get an even better resolution, click on the link to watch it on archive.org. Enjoy! Business and Politics of Sport Celebrity Endorsements Presentation

Sport celebrities and superstars have become the forefront of today’s sport media culture in both Australia and Internationally. Sport professionals have been looked upon as role models for decades and recently over the year’s companies have been trying to capitalise on specific professional sport stars images by paying famous athletes millions of dollars to endorse their products.The sporting industry is known as a multi-billion dollar global corporation and similar to that of other businesses and industries, its main aim is to prosper. This paper explores the central ideas around sporting endorsements, their purpose and how they are mutually beneficial for the endorser and endorsee. Positive and negative sporting endorsements in Australia and Internationally are outlined as well as the role business and politics play in sporting endorsements. Commodification of sports professionals is discussed with reference to sport celebrity endorsements. Impacts of endorsements on companies, brands, and sports celebrity images are outlined with reference to global superstars of the 21st century.

Introduction
Sport professionals have been looked upon as role models for decades and recently over the year’s companies have been trying to capitalise on specific professional sport stars images by paying famous athletes millions of dollars to endorse their products. The aim of a sporting endorsement deal is to create a mutually beneficial partnership, whereby a company provide financial benefits to the professional athlete to advertise/endorse their product.

This paper explores this notion in an Australian and International context discussing the advantages of a positive endorsement contract as well as the possible negative implications that may arise. The role that business and politics play in sport celebrity endorsements is also discussed specifically relating to companies, brands and sport celebrity images. Commodification in sport is outlined with reference to how sports professionals have become commodities, with their appeal, likeability and image sold to promote products and services to the public in the aim to gain greater exposure and market share.

Sports Endorsements
According to (Epstein, 2003) sporting endorsements are usually one of contractor-independent contractor relationships meaning that withholding tax, paying insurance and workers compensation are not part of the agreement. "An endorsement contract is a contractual agreement that grants the sponsor or endorser usually a sporting organisation the rights to use (i.e. license) the athlete’s name, image, and popularity in conjunction with advertising the endorsers products or services" (Epstein, 2003, p 39). In return the endorser agrees to provide monetary compensation or the like to the endorsee (athlete) (Epstein, 2003).

The media have converted sport into a huge form of entertainment witnessed by billions of people. Due to globalisation and commercialisation of sport, famous athletes are becoming the forefront of today’s sport media culture locally, nationally and internationally. With advances in broadcast communication technology and increased media coverage, sports celebrities are constantly in the limelight, either playing their sport, engaging in ‘off the court’ activities, and/or endorsing products or services (Jones & Schumann, 2000). Sports professionals have been looked upon as role models and idolised for decades. From local state football stars to international superstars, corporations and businesses capitalise on marketing and product advertising opportunities by paying famous athletes millions of dollars annually to endorse their products or services. The corporations that sponsor athletes inscribe their logos into consumer’s minds as they promote and advertise lifestyles based on consumption (Coakley etc al, 2009). Product endorsement has become a lucrative business for marketers and athletes alike; thus, the decision to sign a particular athlete is important financially as well as strategically (Jones & Schumann, 2000) Famous athletes, in particular, when endorsing an athletic product or service, can be viewed as experts in their field (Pikus, 2005). Thus to enhance sales for their endorser, sporting celebrities strengthen their persuasive argument by associating their success with a product (Pikus, 2005).

With sport being one of the largest global phenomenon in recent history, there is no doubt in stating that fans spend huge amount money on purchasing tickets to see their favourite stars play as well as purchasing souvenirs and merchandise (Shoman, 2006). Other individuals purchase additional gear at stores specifically worn by their favourite player upon noticing their endorsements via media. Due to the popularity of athlete endorsements, more and more athletes are appearing in commercials supporting specific products or brands greatly influencing what sports fans purchase (Shoman, 2006).

Impacts on Companies, Brands and Endorsees
Marketing and advertising corporations use sport celebrity endorsement deals as a promotional strategy to launch new products, reposition brands and reinforce brand image and awareness (Kim & Na, 2007). “The use of famous sporting celebrities can contribute to greater brand recognition and can create a positive perception in regard to the endorsement product” (Fullerton, 2007, p211). The aim of the marketers is to portray the celebrity in such a way, that it persuades the consumer to purchase the product initially as well as develop a high degree of brand loyalty to encourage repeated product purchase (Fullerton, 2007).

Positive Endorsements
The use of a sporting celebrity as an endorser can positively influence a company's image by linking the celebrities success and public image to the product, helping to create credibility for the organisation (Fullerton, 2007) (Sassenberg & Johnson, 2010). There are three stages that occur during an endorsement deal: 1. the formation of the celebrity image, 2. the transfer of meaning from the celebrity to the product and 3. transfer from product to ad recipient (Kim & Na, 2007). This indicates that for an endorsement to be effective there must be a match between the endorser and the marketer in order to balance the needs of both parties in the partnership (Fullerton, 2007). For this relationship to be more effective and prosper, there must also be a match with the target market (Fullerton, 2007, p 212). There are a number of factors that have been identified as potentially impacting endorsement effectiveness which primarily relate to the endorser including: the endorser is a high achiever, is believable/credible, is well known, is recognisable, provides ease of recall, is congruent with the target market, is physically attractive and consideration of future prospects (Fullerton, 2007, pp217-212).

As a result of Tiger Woods' success and lucrative endorsement deal with Nike, he was able to get masses of people to purchase golf clubs, merchandise and take up the sport of golf (Fullerton, 2007). Nike’s use of an effective strategy with statements from Woods such as “I use it, so should you” was aimed to make Nike the leader in the golf equipment market (Fullerton, 2007, p 212).

Tennis info blog (2007) likewise state that Maria Sharapova and Roger Federer both famous professional tennis players, have very lucrative endorsement deals with Nike as well as several other companies, putting them on the list of the top 25 highest paid athletes in the world (Fullerton, 2007, p212). Through the growth of commercial sport, professional athletes demand higher salaries turning some into national and international celebrities, who then use their celebrity status to endorse products sold around the world (Fullerton, 2007). Not only are sporting celebrities receiving greater endorsement contracts, but companies are willing to spend millions of dollars on endorsement deals to improve their promotional strategies in an attempt to associate their products with their endorsed athlete (Kim & Na, 2007).

Negative Endorsements

Despite the numerous positive aspects of sport celebrity endorsement deals, there are several potential negative facets that companies, brands and celebrities need to consider. Today, endorsement contracts have specific moral clauses that allow a company/brand (the endorser) to unilaterally terminate an endorsement contract with a celebrity who acts in ways which are deemed unacceptable, potentially damaging the reputation of the endorser (Fullerton, 2007). Criminal actions performed by the endorsee may cause an endorsement contract to be negatively portrayed whereby their actions may have detrimental effects on the endorser and their company and products. The endorser must re-evaluate the contract if incidents such as murder, abuse, sexual misconduct and substance abuse occur.

The Tiger Woods scandal is one of the most prominent in history and one of the most recent. It is a prime example of how such a prominent figure in sport can have such a negative effect on his image as well as the image of his endorsers due to his involvement in a sex scandal. In 2009 Woods was earning $100 million annually in endorsement income from several contracts, much greater than any other athlete (Knittel & Stango, 2010). (Knittel & Stango, 2010) state that in the ten trading days after the scandal occurred, brands endorsed by Woods suffered significant declines in stock market value. The core three endorsements deals with Nike, Electronic Arts and PepsiCo (Gatorade) lost over 4 percent in cumulative market value, evidently indicating the detrimental affects celebrity scandals can have on companies and brands (Knittel & Stango, 2010).

Endorsement conflicts are also prevalent whereby an athlete endorses one brand of product while the governing body involved with the athlete’s sport endorses another brand (Fullerton, 2007). Kim Clisters a professional tennis player came under such a conflict where she indicated she would not participate in the 2004 Olympic Games where her team was sponsored by Adidas, if not allowed to wear the File apparel, her main endorsement brand (Conrad, 2009).

Sporting celebrities endorsing unwholesome non-sport products is also an area of scrutiny. Several issues have become apparent over the years where celebrities not only endorse sports products but also endorse alcoholic beverages, tobacco and casinos (Fullerton, 2007). The Australian National Cricket team was endorsed by Victoria Bitter as one of their main sponsors, having printed labels on the front of the player jerseys (Phillipson & Jones, 2007). These types of endorsements have been the topic of great debates and even been catalysts for regulation changes. Today, sports governing bodies in many countries prohibit sports celebrities the ability to endorse such products in order to reduce the promotion of non-sport products (Fullerton, 2007).

National Endorsement Deals
(The Advertiser, 2011) (Meyn, 2009)

International Endorsement Deals
Anecdotal evidence suggests that local and many national sporting celebrities earn less than international stars (i.e. Samantha Stosur vs Tiger Woods). However due to globalisation and the commercialisation of sport, sports stars are getting endorsed by companies at a much higher rate locally, nationally and internationally. (Carlson, 2008)(NY Daily News, 2011) (Verticle Scope, 2011) (Kwek, 2011)

Political Links to Endorsements
Politics is an integral part of sport on a locally, nationally and international scale. Sport evolves around political processes associated with issues such as who controls sport, the terms of eligibility, team selection, rules and rule changes (Coakley etc al, 2009). Politics include all processes of governing people and administering policies at all levels of an organisation, both public and private. These sporting organisations are commonly identified as ‘governing bodies’ (Coakley et al, 2009 p434). Without politics, policies, and governing bodies, sport would not exist as we know it today. With the ever increasing popularity of sport globally, government involvement increases with many sports professionals requiring sponsorship and endorsement contracts. Therefore we pose these questions: Has expanding business and global brands taken over the image athletes portray to their audience? Or is it the politics behind athletes actions that influence the brands?

Business Links to Endorsements
Sport is a multi-billion dollar business, unique to other industries as it involves contract rights, free agency, eligibility, endorsement deals, corporate sponsorship, construction of sporting infrastructure and event management just to mention a few (Conrad, 2009). Sport is multifaceted and does not focus on the manufacturing of goods but rather the exposure of athletes participating in sports, pertaining to the entertainment industry (Conrad, 2009). Professional athletes have become global stars in the 20th century and have given rise to an increase in economic activities in the industry (Conrad, 2009). The increased popularity and complexity of the sports industry has resulted in the expansion of this global business (Conrad, 2009). Endorsements are much the same, with professional athletes demanding higher economic benefits from companies to endorse their products. A company i.e. Adidas seeks famous athletes who will endorse their products with the aim to increase consumer consumption ultimately increasing the companies market share value. However, should athletes such as Stephanie Gilmore be earning over 10 times the amount in endorsements contracts, than their earnings from their achievements in sport? (The Advertiser, 2011). Is business taking over or is it all politics? Inevitably, business and politics are interlinked and revolve around increasing exposure of specific sports, athletes, products,companies and brands whilst maintaining structure in the industry.

Commodification and Endorsements
Commodification relates to the notion that economic value is assigned to something that previously was not considered in economic terms. In a sporting context this refers to a product, activity or perhaps even a person that originally existed for utility or pleasure purposes, now is made into something that can be used to make money, by promoting and selling the product (Christensen & Levinson, 2005). As sport has become a form of public entertainment, the prospect of making money is a definite motivation for sport organisers and athletes. Sport in essence has become corporate sport with corporate sponsorships supporting world class events, teams signing major sponsorship deals and high profile players obtaining million dollar endorsement contracts. Sport endorsement deals are a prime example of how sport has become a commodification and the drive to make money anywhere and anyway possible is becoming more apparent. Sports professionals have become commodities, with their appeal, likeability and image sold to promote products and services to the public in the aim to gain greater exposure and market share (Christensen & Levinson, 2005).

Conclusion
The sporting industry is one of the largest growing businesses in Australia and globally. In the 21st Century, sports professionals have been recognised not only as athletes but as superstars and celebrities. Today, with athletes becoming huge role models for consumers, companies and brands capitalise on professional sport stars appeal and likeability by paying famous athletes millions of dollars to endorse their products. With some athletes earning 10 times or more than their earnings from their annually sporting achievements, there is no questioning why athletes strive to obtain lucrative deals.

This paper analysed sporting endorsements, their benefits and negative impacts in an Australian and International context. Furthermore, the role that politics plays on influencing sports endorsement deals was outlined and how sport today has changed into a commercial, business driven global industry. Commodification was also made reference to, illustrating how professionals have become commodities, with their appeal, likeability and image sold to promote products and services to the public in the aim to gain greater exposure and market share. Evidently in the 21st Century, business and politics play a major role in sport celebrity endorsements affecting the perception that consumers have of companies, brands and sport celebrities.