Football and tennis - scale of economic importance, funding, mass media, and major trends.

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Lucy Cartlidge

Unit 3: The Sports Industry

The two sports that this assignment will look at are football and tennis. Throughout the assignment we will look:

  • at the scale and economic importance of my two sports
  • the organisation and funding of each sport
  • the importance of the sports for the mass media
  • the way in which the mass media have influenced each sport
  • major trends in each of the sports

We are going to look fully into each of these aspects for both football and tennis.  We will compare some of the information in each sport to see if any similarities exist. Looking at data and figures will demonstrate my findings for each sport, e.g. the amount of people who participate in the sports.

Organisation and Funding

Football

Organisation

FIFA is the overall governing body of football (Federation Internationale de Football Association). It is in charge of the governing bodies that exist. Such as UEFA (Union des Associations Europeennes de Football), they are the body that looks after European football such as the Champions League. They are involved in the organisation of the World Cup qualifying of all the European countries. Each continent will have a governing body that will look after the football there such as Asia. Below UEFA are the smaller governing bodies such as the FA (Football Association) who are in charge of the leagues and clubs. The FA's are situated within a country so Scotland would have a Scottish FA, as would Italy, the Italian FA.

Funding

Football gets it funding in many different ways. Such as, through sponsorship deals, TV rights, Ticket sales and merchandise sales. Football is a very wealthy game; the amount of money it makes is phenomenal.

Sponsorship is a huge business that brings in most of the required funding for teams and clubs. Every team in every league will have a sponsor whose name will appear on their strip. That sponsor will pay the club for the rights to have their name on the shirt. In the long run it is the sponsor who will benefit as every time the team play their company will be advertised hopefully increasing that companies profit margin. The sponsor of the team is almost as known as the actually team, for example if I was to say Liverpool Football Club you would associate that team with Carlsberg or Chelsea who are sponsored by Emirates.

               

                     

The better the team, for example the teams in the Premiership, usually the better the sponsor. Manchester United have Vodafone as their sponsor, they are one of the biggest mobile phone suppliers in the country.

These type of companies can afford to spend the money on top sponsorship deals. As we noted before they are the ones who will eventually feel the benefits.

It is not only the teams who profit from sponsorship, it is also the individual players who can strike up sponsorship deals. Sponsors only usually sponsor top players who are well known within society for example David Beckham, who makes most of his money purely from sponsorship.

His sponsors:-  

This is in just one year, and not included his wages from Manchester United. This is an example of what kind of money is involved in sponsorship.

The World Cup is a sporting event that attracts a lot of sponsors due to its huge popularity throughout the world. Millions of people throughout the world watch the World Cup, therefore it is an opportunity to advertise globally. The sponsors will help fund the competition by working with FIFA, in return the company will have 2 to 4 boards around the pitches during the games, meaning they will get hours of television exposure as well. The 2002 World Cup is sponsored by at least 15 sponsors, all will contribute millions each to have their name associated with the competition. Companies from Adidas through to MasterCard are the sponsors. The only businesses that could sponsor such a tournament are the big global companies due to the expense of being able to fund it. For example:

'Manchester United versus Juventus European Champions League Semi Final in 1998, where a thirty-second advert during half time would have cost a company £150,000.   ITV raised £2 million from the fifteen-minute half time break alone. ' (Boyle & Haynes, 2000)  

The companies that sponsor the World Cup are active partners to FIFA they are involved in the supplying of the necessary equipment; they also help supply such things as cars and stadium installations. The sponsors are not aloud to interfere in the actual running of the game such as the rules; this is a contrast to other sports that change their rules to please the companies that fund them.

The different governing bodies in football get their funding in different ways. FIFA is a non-profitable organisation; it is run on the member association's annual subscription fee, which is a fee to enable them to compete in the FIFA World Cup. The World Cup makes FIFA a substantial amount of money. They get money from the ticket sales, television rights, sponsorship and other things including merchandise.  This is from FIFA's web site it shows where exactly where the money FIFA has is from and where it goes.

Join now!

The FA is a very similar body they are also a non-profit making organisation who gives money back to the game in different ways:

  • They give funds to clubs and players for participating.
  • Subsidises the county FA's.
  • Developing coaching and improving facilities

These are just some ways in which the FA uses its finances.  The FA gets their money, as do FIFA from television rights and sponsorship. They are in charge of the England teams and the FA cup competition, which ploughs in the funding for them.   The turnover for the FA in 1999 was ...

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