Investigating the nature of thesports industry

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Leisure and Recreation:  The Sports Industry

John Cleveland College, Hinckley

Investigating the nature of the sports industry

Sport in general is big business. The industry has a complex structure, a large turnover and an impact on many people’s lives through active participation and sources of the media.

During this investigation the structure, economic impact and funding of the sports industry as well as current trends in sport and the relationship between them and the media will be looked upon to see what relevance it has within the leisure and recreation industry of today.

To focus the investigation, I will be basing the investigation on two totally different sports; football and Tennis. These sports will not only be investigated at top level competition, but also at a local competition level and as a leisure time activity.


What is sport?

Before commencing the investigation into the sports industries, the word ‘sport’ must be defined, to ensure clarity. According to the (Collins dictionary) sport can be defined as;  “An individual or group activity persuade for exercise or pleasure, often involving the testing of physical capabilities and taking the form of a competitive game such as tennis or football”

From which the definition states that sport involves;

  • Some from of physical activity
  • An element of competition, whether it be in a friendly situation or in a tournament.
  • Rules and regulations that the participants must abided to
  • Some form of venue of which the activity is predicated at. For example, football is played on a pitch.

The diagram below illiterates how the principles above are followed for each sporting activities, which people may participate in during his/her leisure time.


Why do people get themselves involved within sporting activities?

There are is a great number of reasons for why people get themselves involved into sport related activities. Just as people are individual in their personnel tastes in food and fashion etc, people also have an individual need for sport. One that meets their own personnel requirements; to lead a healthier lifestyle, meet new people etc.

Either way for what ever reasons they participate in sporting activities, the leisure and recreation industry has a number of outlets that allow the customer to choose what products he/she does/ does not want, and therefore tailor their individual needs to an individual sporting plan of activities that most importantly they enjoy participating in.

From a recent survey, conducted to a mixture of people, from different social backgrounds the following reasons came top of the pole why people become involved in various sporting activities.

  1. Leisure and recreation purposes- purposely to peruse an activity that they can follow, whilst not doing activities that they have to do. For example, feed the cat.
  2. To earn a living.
  3. To organise, officiate, coach or develops sporting activities for the better.
  4. To improve the level of physical and also mental fitness, to become a healthier individual overall.
  5. To watch or support an individual, team, or country

Whatever the sport and physical activity in which you choose to follow, the leisure and recreation industry will try to accommodate an individual’s needs and expectations. Whether it is to earn a living, as a coach or to just simply participate during your leisure time, there will always be an organisation that would be happy to assist you, at either a private level, public level or at a voluntary level.


The development of football over the last century

Since the start of the 20th century, the sports industry as a whole has undergone radical developments in the way in which they are participated, watched and are available to the general public. Meaning which some of the most popular sporting activities have had to adapt to insure that they remain popular and at the top of the league of sporting activities that people participate in during there leisure time. Football is no exception.

The game of football has developed considerably more so since the end of the second world war, when the general public had more money to spend on themselves, and most importantly time to spend it and participate in leisure and recreation activities, such as football. A clear indication of how football has adapted to the times is through the level of attendance at football matches. (Figure one) Between 1948 and 1949, football match attendance was at its all time high at 41 million spectators a year visiting a football ground; due to the fact that most other leisure and recreation activities which were around in that time, where not wildly available, due to the extensive rebuilding of towns and cities during the bombing campaigns by the Germans.  Subsequently as the world rebuilt towns and cities, the development of communication technology, such as television and radio etc, led to the lowest football attendances of the UK since the 1900’s, which reached only 16 million visitors to football stadium.

Although the football industry has decreased in its popularity over recent years, from its hay days in the late 1940’s, it has also had to compete with other leisure and recreation that have come about. For example, since the late 1980’s, skate boarding has also become a very popular activity to participate during leisure time. In addition to the constant threat of trouble within the crowds and the notoriously poor state of facilities the football speciation levels dropped considerably as peoples expectations have increased.

Now day’s people in general have a greater disposable income and a larger variety of leisure opportunities prior to the end of the Second World War. This means that the football clubs that still remain to exists, have had to clean up there act. Not only have they adapted there attitude towards its spectators by improving facilities that are not only safe and accessible to all, but also enjoyable, by installing top restaurants and bars. In some cases, such as Leicester city and Coventry city this meant that they have had to totally start again and build totally new stadia at the cost of millions upon millions of pounds to the team.

Further more so, the game of football has also had to change in the way in which it the teams compete. During the season of 1992, the introduction of the premier league was forced into action by the Football association. (FA) This meant the football industry had to fall into line with other leisure and recreation industries, and embrace the idea of marketing more actively. In this respect this meant foreign players such as Dennis Bergkamp and David Ginola have been instrumental in reinventing the game for this generation and making it a much faster, and exciting game, that fans want to watch. As a result the game was reborn and people wanted to spend money watching live football once again.

However, the introduction was not the only factor that insured the popularity of football in recent years. Unfortunately, a number of footballing catastrophes occurred, that meant drastic changes had to be made. During the season of 1989, the disaster known as the ‘Hillsborough Disaster’ occurred. It was when a number of spectators were crushed against steel barriers when Liverpool fans surged forwards in unison after witnessing a shot from there player hitting the crossbar. This alone prompted the lord justice Taylor to make serious recommendations about the standards of football and other grounds stadia. Following this publication of the report, all clubs whatever there size set out the task of modernising stadia to ensure that this could never occur again.

Taylor’s report recommended the closure of terraces at all grounds, new safety measures on exits and entrances, and a new advisory committee on stadium design to ensure that best practice was followed. Crucially, Taylor also recommended that the Government's Identity Card scheme (whereby all fans would have to have a membership card to get into a ground) be dropped, on grounds of safety, a suggestion that the Government reluctantly carried out. Taylor's report did not have the force of law, and not all his recommendations were carried out, but his work in identifying the wider reasons for the disaster has been acknowledged as one of the most significant turning points in the history of English football. The result
was the total transformation of British stadium, paid for in large part by tax-payers' money, with terraces at grounds in the top two divisions closed by May 1994, and new safety regulations and regimes put in place at every stadium.

Another key turning point that changed the course of football forever, occurred on the 11th may 1985, when Bradford city should have ended the season on a high. For once after a long line of defeats and triumphs they had made it to the third division. However, the day ended on one of the worst footballing disasters in the world.  Just before half-time, someone noticed smoke coming up through the wooden floor of the main stand, which had served the City fans for 77 years. The alarm was raised, but nobody had realised that a pile of rubbish had ignited below the seating and within 5 minutes, the whole stand was ablaze. Tremendous feats of heroism from fans and staff alike were witnessed by the television cameras that were at Valley Parade, as attempts were made to rescue people from the stand with the roof alight and raining burning material from above. In total, 56 people lost their lives that sad day and 200 suffered burns.

Following a report into the fire, safety was tightened up at grounds across the country to ensure that a disaster like this would never happen again. The report by Lord Justice Popplewell stated that old wooden stands like the one at Valley Parade were clearly a fire hazard and recommendations for the safety of football grounds were made.

All clubs with wooden stands were forced to provide exits in case of fire. In the early weeks of the following season exits had been made from the seats to the old style paddocks. Similar measures were taken at Reading’s old Elm Park ground. Nowadays stands are made of non-combustible materials like concrete and steel.

In more recent times, the security that follows large scale events such as the world cup has seen many new security features, to irradiate football hooliganism and terrorist threats. Since the atrocities of September 11th 2001, security has never been higher. Now fans have to go through metal detectors and not carry any glass bottles etc. This is to ensure that no “weapons” are introduced into the stadium and therefore it remains a safe and secure environment for all concerned.


Economic significance

Football without a doubt is one of the worlds most important sports ever played. Participated by millions upon millions of people every year and watched by even more- football is the most widely known and participated sport. Through which a considerable economic activity is generated. The contribution to the economy through football can be measured in the following ways; Number of employed within the industry, participation during leisure time and money generated via football.

Employment

The number of people employed in football cannot be totally measured due to its constantly changing scale of volunteers that offer their services for free as they enjoy the game so much.

However, data taken from the “FIFA big count” survey has enabled people to make rough estimation on about the number of people involved within the sport. In total it has been estimated that an outstanding 30 million people officiates and referees are employed to make the game as accessible and enjoyable as it is today. In total with the added 16 million professional players of both sexes that are employed within the industry of Football it is estimated that an outstanding approximately 45 million people worldwide generate economic income via football.

Furthermore, as part of another piece of research conducted by the sports council, it estimates that around £220 million a year would be generated if volunteers revived an average wage of £8.31 an hour for the kind of work that they conduct; making it the second most valuable sport behind the leader’s bowls.

In addition to the direct employment of football organisers etc, subsequent employment is generated from large scale events such as Euro 2000 which alone created approximately 4000 full time jobs per year, through the various occupations that are needed to host such large scale events. For example, hotel workers that are needed to accommodate the large number of fans.


Participation

People from all backgrounds; rich/poor, black/white actively participate in football through various forms. Some participate in the game via a quick game in the park, where as some participate in a local team or organisation. Either way they all help to contribute to the economy.

The majority of football is played on a casual basis according to the recent surveys conducted into the level of which football is played. In basic terms this means that football is the sixth most participated game in the world with the nearest rival cricket. In terms of numbers, there are currently 220 million men and 20 million women which actively participate in the game of football. In terms of how much that represents the population percentage, it represents that around 4%. Or in other words one adult in twenty five plays football on a casual basis with no qualification nor membership to a team.

In addition to the number of people which participate on a casual basis there is also an additional 12.5 million people that play for the 1.5 million teams of the 300,000 clubs worldwide. This not including the additional 15.5 million male juniors and 2 million women juniors which also play as part of a team set-up to the grand total. Thus it can be concluded that an approximately 3o million people play football in an organised manner. Either in a team or club. While it can only be looked at in terms of population percentage as half percent, on another hand it can be looked as the entire population of Canada.

The final participation category is youth football, which without a doubt is where most of footballs participants lye. In the world there are approximately 120 million children/youth players which play in a casual and organised environment. Of which 15 million boys and 2.2 million girls play the beautiful game. This is an ever increasing number that sets to get larger as the population gets ever bigger. The effects of which are set to generate a greater income to the economies of the world as they get older and have greater amounts of disposable incomes that they can spend on football.


Football organisation

The football community of the world is organised into three distinct levels. From the highest; international, where players represent there country, to nationals where players represent there town/area to the lowest in the level of locals where players play for local teams such as pub and charity teams.

Internationally football is organised by the federation de football association; (FIFA) the games governing body. FIFA was founded in France in 1904 and initially comprised of just seven countries. 

  • France - Union des Societies Françaises de Sports Athlétiques (USFSA)
  • Belgium - Union Belge des Sociétés de Sports (UBSSA)
  • Denmark - Dansk Boldspil Union (DBU)
  • Netherlands - Nederlandsche Voetbal Bond (NVB)
  • Spain - Madrid Football Club (today Real Madrid FC)
  • Sweden - Svenska Bollspells Förbundet (SBF)
  • Switzerland - Association Suisse de Football (ASF)
  • Germany joined later on the same day by telegram.

 England, which joined later joined a year later in 1905 and was quickly followed by other the associations of Scotland, Wales and Ireland. As the international custodian of football, FIFA has a number of responsibilities that include amending of the rules of the game and organising world cups.

At the less so attractive level; national level football is organised by the country of which football is played. In the case of England, FA organises British football which was established in 1863. Similarly bodies for the other countries that make up Great Britain also exist.

Some of the chief responsibilities of the FA are to not only to communicate with FIFA to ensure equality in football, but also to oversee the development of England’s national teams at all levels, and organise a range of competitions including the annual FA cup. In addition during the 1992 season the FA formed a subsidiary company with sole responsibility for a premier league made up of 20 clubs. A further 72 full time clubs participate in three divisions run by the football league.

In Scotland ten clubs play in the Scottish premier league with a further 30 clubs playing in three divisions of the Scottish league. The national league of Wales contains only 20 semi professional clubs, while another 16 semi-professional sides from Northern Ireland compete in Irish football league.

The overall development of the game from grass roots to the highest level is currently in the hands of the FA’s technical director, who make a number of recommendations in the FA’s strategy document, a character for quality. These include the establishment of centres of excellence for coaching and developing youngsters, and a reduction in 11-a-side football for very young children.

At the lowest level of football, regional and local football delegates a significant proportion to the number of players that play on a leisure time basis only.

In England, regional and local levels of football is also ran under the instruction of the FA, which I turn more than £1.2 million is implemented to ensure key FA initiatives such as coaching award programme to better the lives that participate.

At a local and regional level the game appears to be stronger than ever, with more than 42,000 clubs affiliated to their regional or district associations. Some of this football is organised along semi professional lines but most takes place through a voluntary basis in the local Sunday league pub teams. An example of this is Leicester city football club has open training days for children to go and do basic training and fun activities along side their favourite players and mascot.

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Football Funding- The FA

The majority of football funding, goes through the governing body, the FA, which as one of its most import responsibilities, hands out the current £70 million total fund to the clubs; big or small.

There are many sources of which the FA generates the funding to supply the public with football fixtures and training. However, the majority of the funding comes from just four major sources. Firstly television income from BskyB and the BBC, which generates just under 50% of the total funding for football in return for the broadcasting rights of the matches they ...

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