Understanding Sports Management: International Perspectives

Understanding Sport Management

Sport management is a rapidly developing industry which continues to grow in size and scope on an international scale. This comprehensive and engaging textbook offers a complete introduction to core principles and best practice in contemporary sport management. Adopting an issues-based approach and drawing on the very latest research, it demonstrates how theory translates into practice across all the key functional areas of sport management, from governance and leadership to tourism and events. Written by a team of experts from across the globe, the book explores sport management from a truly international perspective and looks at all levels from professional, high-performance sport to non-profit and grassroots. With extended real-world case studies and an array of helpful features in every chapter, it addresses crucial topics such as: s s s s s

MANAGINGORGANISATIONALPERFORMANCE COMMUNICATIONANDSOCIALMEDIA SPONSORSHIPANDMARKETING THEIMPACTOFSPORTONSOCIETY FUTUREDIRECTIONSFORSPORTMANAGEMENT

Complemented by a companion website full of additional teaching and learning resources for students and instructors, this is an essential textbook for any degree-level sport management course. Trish Bradbury is a senior lecturer at Massey University, New Zealand, where she lectures in both sport management and core management programmes of study. She has extensive experience in managing/coaching organisations and sports teams, and actively volunteers in the sport community. Her major research interests concern aspects of sport/business management related to events, HRM, organisation development and performance management. Dr Bradbury has published in various journals such as Sport Management Review, Sport, Business and Management and International Journal of Sports Marketing and Sponsorship. Her first book is Sport Governance: International Case Studies (Routledge, 2013).

Ian O’Boyle is a researcher in the area of sport governance and leadership. He is also the Director of the CERM Performance Indicators Project, which focuses on researching operational indicators and customers’ perceptions of service quality for local government sports and leisure facilities and services, providing improved operational decision-making and internal and external benchmarking. His work appears in the leading sport management journals such as Journal of Sport Management, Sport Management Review and European Sport Management Quarterly. In 2015, Dr O’Boyle received a Research Excellence Award from the UniSA Business School in recognition of his extensive high quality research record.

Understanding Sport Management International perspectives

Edited by Trish Bradbury and Ian O’Boyle

First published 2017 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2017 Trish Bradbury and Ian O’Boyle The right of Trish Bradbury and Ian O’Boyle to be identified as the authors of the editorial matter, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Names: Bradbury, Trish, editor. | O’Boyle, Ian, editor. Title: Understanding sport management : international perspectives / edited by Trish Bradbury and Ian O’Boyle. Description: Abingdon, Oxon ; New York, NY : Routledge, 2017. | Includes bibliographical references and index. Identifiers: LCCN 2016032191| ISBN 9781138100626 (hardback) | ISBN 9781138100633 (pbk.) | ISBN 9781315657554 (ebook) Subjects: LCSH: Sports administration. | Sports–Marketing. | Sports sponsorship. | Communication in sports. Classification: LCC GV713 .U64 2017 | DDC 796.06/9–dc23 LC record available at https://lccn.loc.gov/2016032191 ISBN: 978-1-138-10062-6 (hbk) ISBN: 978-1-138-10063-3 (pbk) ISBN: 978-1-315-65755-4 (ebk) Typeset in Berling and Futura by Wearset Ltd, Boldon, Tyne and Wear Visit the companion website: www.routledge.com/cw/bradbury

Contents

List of figures List of tables Notes on contributors

SECTION 1 The sport management environment 1

The new sport management environment Ian O’Boyle and Trish Bradbury

2

The impact of sport in society Emma Sherry

3

Organisational structure and theory of non-profit sport organisations Packianathan Chelladurai, Wirdati Mohd Radzi and Megat Ahmad Kamaluddin Megat Daud

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1 3 11

27

4

Professional sport Paul Turner

44

5

The global sport environment Eric MacIntosh and John Harris

58

SECTION 2 Foundations of sport management 6

Creating high performing non-profit sport organisations Popi Sotiriadou and Veerle De Bosscher

7

Controlling and managing organisational performance: the viable system model Winnie O’Grady and John Davies

73 75

95

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Contents

8

Strategic management in non-profit sport Ian O’Boyle

116

9

Managing volunteers in grassroots sport Tracy Taylor and Ashlee Morgan

130

10

Sport governance Ian O’Boyle

145

11

Leadership in sport management Duncan Murray and Sarah Chua

159

12

Soliciting sport sponsorship T. Bettina Cornwell

172

13

Sport marketing Brenda Pitts

184

14

The economics of sport Sam Richardson

198

SECTION 3 Elements of sport management

213

15

Communication and social media Ashleigh-Jane Thompson

215

16

Sport law Neville Cox

229

17

Sport event management Insun Sunny Lee and Graham Brown

243

18

Sport tourism Graham Brown and Insun Sunny Lee

259

19

The continuing evolution of sport management Trish Bradbury and Ian O’Boyle

273

Index

282

Figures

3.1 3.2 3.3 3.4 4.1 6.1 7.1 7.2a 7.2b 7.3a 7.3b 7.4 7.5a 7.5b 7.5c 7.6a 7.6b 8.1 8.2 11.1 11.2 12.1 13.1 13.2 14.1 14.2 14.3 17.1 17.2

Hierarchical order of governance for non-profit sport organisations Social order in sport governance The Three Es (3Es) of sport participation Vertically differentiated subsystems of a sport governing body The professional sportscape The seven pathways of sport development Schematic representation of Beer’s Viable Systems Model – the VSM The Auckland Kingz and systemic failure The Auckland Kingz and systemic failure Essendon Football Club and systemic balance Essendon Football Club and systemic balance Board of Cricket Control in India: systemic role conflict NZRFU: governance structure and processes prior to and post reorganisation NZRFU: governance structure and processes – prior to reorganisation NZRFU: governance structure and processes – post reorganisation The VSM representation of a notional high performance sport system as a set of nested organisational systems HPS: systemic notions of communication and control Cyclical model for strategic management Rowing NSW scorecard for 2013–2014 The five sources of power Proposed framework by Avolio et al. (2004) Sport property and sponsor goals and partnership success characteristics Contemporary sport marketing theory and process The Sport Marketing Management Model A two team sport league: teams in identical markets A two team sport league: teams in differing markets The decision to take performance enhancing drugs: a payoff matrix Scale of impacts by size of event The torch relay map of London 2012 Olympic Games

28 29 31 33 45 81 97 99 100 101 102 103 105 106 107 109 110 120 126 162 167 176 187 188 203 204 208 244 255

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Tables

7.1 A7.1 8.1 13.1 13.2 14.1 17.1 17.2 18.1 18.2

Conceptual underpinnings of the VSM The VSM: a process for assessing organisational effectiveness and viability Strategic management design processes The 4 Cs of sport marketing The 4 Ps of the marketing mix Where to play Inglis: fullback or centre? Event tourist career trajectory The impacts of sport events Sport tourism activities classification The sport and travel motivations of sport tourists

98 112 121 189 192 201 248 251 262 263

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Contributors

Graham Brown Professor Graham Brown is Professor of Tourism Management and a Founding Member and Director of the Centre of Tourism and Leisure Management at the University of South Australia Business School. He has an international reputation in tourism and works closely with tourism organisations both nationally and internationally. Professor Brown has published over 50 book chapters and journal articles and has co-authored the book Tourism Marketing: An Asia Pacific Perspective (2008). He serves on the Editorial Boards of leading sport and tourism journals and has acted as the Regional Director (Asia Pacific) for the International Journal of Contemporary Hospitality Management. Professor Brown lectures at undergraduate and postgraduate levels, and, in recent years, doctoral scholars he has supervised have won national and international awards for the quality of their research. Packianathan Chelladurai Chelladurai, Distinguished Professor, Troy University, is a Founding Member of the North American Society for Sport Management (NASSM) and the European Association for Sport Management (EASM). He is the first recipient of the Earle F. Zeigler Award from NASSM, the Merit Award for Distinguished Service to Sport Management Education from the European Association of Sport Management (EASM) and Sport Management Scholar Lifetime Achievement Award from Southern Sport Management Association. On 18 June 2012, he was awarded the honorary degree of Letters of Law (LLD) by the University of Western Ontario, Canada for his contributions to sport management. In 2015, EASM named its most prestigious award the EASM Chelladurai Award. Sarah Chua Sarah Chua is a Lecturer at the University of South Australia. She currently teaches on the Sport and Recreation Management programme, as well as taking a course on business sociology. She publishes in the area of leadership. Her PhD is on the role that gender, leadership style and appearance play in how we evaluate leader effectiveness. Specifically she is looking at the effect across diverse cultures. T. Bettina Cornwell T. Bettina Cornwell (PhD in Marketing, University of Texas) is the Edwin E. and June Woldt Cone Professor of Marketing in the Lundquist College of Business at the

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University of Oregon. Prior to joining the University of Oregon, she was Professor of Marketing and Sport Management at the University of Michigan. Her research focuses on marketing communications and consumer behaviour and often includes international and public policy emphases. Bettina’s research on corporate sponsorship of sports, arts and charity has appeared in the Journal of Advertising, Journal of Advertising Research, Journal of Consumer Research, Journal of Experimental Psychology: Applied, Journal of the Academy of Marketing Science and Psychology & Marketing. Her book Sponsorship in Marketing: Effective Communication through Sports, Arts and Events was published by Routledge in 2014. She was the 2009 American Marketing Association, Sports Marketing and Special Events Special Interest Group, award recipient for ‘Distinguished Contributions to the Scientific Understanding of Sports Business’ and is the 2016 Thomas C. Stewart Distinguished Professor at the Lundquist College of Business. Neville Cox Neville Cox is Professor of Law and Dean of Graduate Studies in Trinity College Dublin. He is also a practising barrister who has represented a number of athletes accused of doping offences. He is the author of Blasphemy and the Law (2000), Sport and the Law (2004), Employment Law (2009) and Defamation Law and Practice (2014). He is also the author of numerous book chapters and law review articles. John Davies John Davies is Professor of Management Studies, Associate Dean (International & Executive Education) and Director of Academic Programmes Accreditation within the Victoria Business School, Wellington, New Zealand. A former Head of Victoria Management School, he graduated from the universities of Wales and Lancaster with a background in operational research, and has research interests within the decision and systems sciences, and sports management. He has published in journals spanning the decision and systems sciences, technology management and sport management: for example, Decision Science, Omega – The International Journal of Management Science, Journal of the Operational Research Society, Journal of Sport & Tourism, International Journal of Sports Management and Marketing, European Journal of Sport Management, International Journal of Production Research, R&D Management, European Journal of Marketing, Long Range Planning. He is a Past-President of the Wellington Rugby Football Union and of Poneke Football Club, Wellington’s leading multicultural sport club. Veerle De Bosscher Veerle De Bosscher is an Associate Professor at the Department of Sports Policy and Management at the Vrije Universiteit Brussel (VUB), Belgium and was a Guest Professor at Utrecht University (the Netherlands). Her research expertise is in the area of elite sport, sport development, sport policy and management, youth sport, effectiveness, benchmarking and competitiveness. She has published 11 books (e.g. the Global Sporting Arms Race, Managing High Performance Sport), written more than 70 refereed articles, delivered over 130 presentations and been invited as a keynote speaker at over 50 conferences around the world. She is leading a worldwide international network on high performance sport and (elite) sport policy systems called SPLISS (Sports Policy factors

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Leading to International Sporting Success), which was also the subject of her PhD in 2007, and is now developing in several directions (e.g. sport specific, PARA-SPLISS). Veerle is co-editor of the International Journal of Sport Policy and Politics (IJSPP) and the Global Sport Management Journal, and board member of the European Sport Management Quarterly (ESMQ), the European Association of Sport Management (EASM) and the Steering Committee of elite sport in Belgium (Flanders). Over the past years she has been a consultant in several organisations worldwide. John Harris Currently Associate Dean Research in the Glasgow School for Business and Society at Glasgow Caledonian University, Dr Harris was previously a tenured Associate Professor in Sport Administration at Kent State University (USA) and has also worked at universities in England and Wales. His publications include the sole-authored text Rugby Union and Globalization and the co-edited collections on Football and Migration and Sport and Social Identities. Dr Harris is Leisure & Events Subject Editor for the Journal of Hospitality, Leisure, Sport and Tourism Education and also serves on the editorial boards of the International Journal of Sport Communication and the Journal of Sport & Tourism. Insun Sunny Lee Dr Sunny Lee is a Lecturer in Event and Tourism Management in the School of Management, University of South Australia. Her research interests include the role/impact of events (business events, festivals, sport events), visitor experiences, youth tourism, ethnic identity issues in the tourism industry, destination branding and regional development. She has been involved in various research projects in a range of event management and visitor studies at the local level as well as internationally, such as research on destination branding, event setting and facilities, event visitor experience and satisfaction, and tourist experience, using qualitative and quantitative methods. Her research has been published in top journals in the field of tourism and event management. Eric MacIntosh A current Associate Professor of Sport Management at the University of Ottawa in Canada, Dr MacIntosh researches and teaches on various organisational behaviour and marketing topics covering concepts such as organisational culture, leadership, image and brand. His research delves into the functioning of the organisation and how creating a favourable culture can transmit positively internally through human resources and outwardly into the marketplace. Dr MacIntosh has been involved in many research projects with prominent international multisport events and sport organisations (e.g. Commonwealth Games, Youth Olympic Games, Right to Play). He is a widely published scholar and an avid speaker in sport management internationally. Dr MacIntosh has also coedited the book International Sport Management. Megat Ahmad Kamaluddin Megat Daud Megat received his bachelor and master’s degrees in sport management from St. Thomas University, Miami, Florida. In doing so he became one of the first Malaysians to have a degree in sport management. He was then entrusted by the University of Malaya to initiate the country’s first sport management baccalaureate programme in 1995. He is

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now a Senior Lecturer at the Faculty of Education and his research interests are in the study of sport industry, financial aspects of sport as well as sport management education. He was appointed consultant by the Ministry of Youth and Sport, Malaysia to conduct research in the sport industry as well as training the trainers of local sport management. He was Vice President of the Asian Association for Sport Management for two terms and is the Founding Member of the Malaysian Association for Sport Management. Ashlee Morgan Ashlee Morgan splits her time between academic work and operating her own business in the hospitality/events sector. Ashlee recently completed her PhD in sport management and was a lecturer in the Management Discipline Group at the UTS Business School. Ashlee is now a casual academic, teaching and researching with colleagues at a number of Australian universities. Her research interests are primarily in strategic alliances and business relationships within the sport industry. Duncan Murray Duncan Murray, PhD, is a Senior Lecturer in Sport and Recreation Management at the University of South Australia. He has published in a range of academic journals in areas, including: leadership, globalisation, celebrity endorsement in sport, customer behaviour in recreation and sport settings, tourism, appearance and attractiveness and the management of sport and recreation. He recently contributed a chapter on culture, sport and migration to the latest edition of the textbook Australian Leisure and is an editorial board member for Sport, Business, Management: An International Journal. He is a reviewer of academic papers for a number of leisure, recreation and sport academic journals, including the Journal of Leisure Research, Managing Leisure and Annals of Leisure Research. Winnie O’Grady Winnie O’Grady is a Lecturer in Management Accounting at the University of Auckland. Her research addresses the integrated operation of performance management and control systems, using the Viable System Model and other frameworks of management control systems as framing devices. Additional research areas include beyond budgeting and lean approaches to performance management and control. Winnie has published in Management Accounting Research, Qualitative Research in Management and Accounting and the Accounting Research Journal. Brenda Pitts Dr Brenda G. Pitts is a Professor of Sport Management and Director of the Sport Business Research Center at Georgia State University in Atlanta, Georgia. Dr Pitts has received the most prestigious awards in the fields of sport management and sport marketing including the Dr. Earle F. Zeigler Scholar Award, Distinguished Sport Management Educator 2014, Garth Paton Distinguished Service Award 2004, the Diversity Award 2016, Nominee for the Stotlar Award for Distinguished Educator in Sport Marketing, and one of the first Research Fellows of the North American Society for Sport Management (NASSM) and of the Sport Marketing Association (SMA). She is author or co-author of six sport marketing textbooks, one of which is translated

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into three languages, co-author of the first textbook on research methods in sport management, and the editor and an author in three Sport Marketing Association’s Book of Papers. She is a Founding Team Member of the new World Association for Sport Management, and serves as Associate Editor for the Global Sport Business Journal of the Global Sport Business Association. Dr Pitts has published numerous papers in several scholarly journals. On the fun side of life, Dr Pitts is an avid athlete and loves to play, enjoying all kinds of sports. Her prolific career in basketball from grade six through University of Alabama and professional brought her such awards as the retirement of her high school basketball uniform number, membership in the ‘A’ Club of the University of Alabama, Huntsville (Alabama) Sports Hall of Fame Inductee, Women’s Basketball Hall of Fame Inductee as a player in the first Women’s Professional Basketball League (WBL) and an inductee nominee for the Alabama Sports Hall of Fame. Wirdati Mohd Radzi Wirdati is currently a Senior Lecturer at the Sport Centre, University of Malaya Kuala Lumpur. With a background in law and sport management, she lectures in sport management subjects such as sport law and risk management, among others. She is actively involved in research on the social aspects of gender and/in sport. She is also interested in research areas that involve multicultural aspects and sport, especially Muslims, as well as the sociological aspect of sport within Muslim communities. Her PhD thesis is on Muslim women sport managers in Malaysia and introduced her to another aspect of research interest concerning sport policy and governance. She is also involved at the regional Asian Association of Sport Management, having been elected as the Treasurer in 2014. Sam Richardson Sam Richardson is a Senior Lecturer in Economics in the School of Economics and Finance at Massey University. He teaches principles and intermediate level microeconomics, as well as sport economics. His research covers several areas within the economics of sport, including the realised impacts of sport facilities and major sport events on host economies, as well as the value of sport-generated remittances in the South Pacific and the value of imported New Zealand rugby coaches on international teams. Emma Sherry Emma Sherry is an Associate Professor within the La Trobe University Centre for Sport and Social Impact, specialising in the area of sport development. Emma’s current research interests include community development through sport activities, undertaking a broad range of research projects with national and regional sport organisations in Australia and Oceania, including Netball Australia, National Rugby League, Australian Football League, Tennis Australia and Hockey Victoria. Other recent research has included access and equity in sport participation, sport in correctional facilities and sport and recreation for at-risk and marginalised communities. Emma is currently supervising a number of PhD students in the areas of sport for development in India and with refugee communities, para-sport athlete well-being and elite athlete career transition. Emma is also co-editor for the Journal of Sport for Development and is on the Editorial Board of Communications and Sport Journal.

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Popi Sotiriadou Dr Popi Sotiriadou is an Associate Professor of Sport Management at the Griffith Business School, Griffith University, Australia. The areas of her research expertise include sport development, high performance management, athlete branding, club management and sport policy. Her research has gained such acceptance that she has been invited to consult the Australian Sports Commission, Sarawak (Malaysia), Cycling Australia, Basketball Queensland and the Queensland Academy of Sport on sport development and high performance management. Popi was the Guest Editor for a special issue of Sport Management Review on sport development published in 2008, and the special issue on Managing High Performance Sport of the European Sport Management Quarterly. She has published the books The Sport Development Processes and Practices in Australia: The Attraction, Retention, Transition and Nurturing of Participants and Athletes (2008) and Managing High Performance Sport (2013). Tracy Taylor Tracy is a Professor of Sport Management, with a particular focus on human resource management and executive leadership development. Her research covers the areas of cultural diversity management in sport, volunteer management and sport and security. She has published over 100 research peer reviewed journal publications, over 20 book chapters, four books and various consultancy project reports. Professor Taylor regularly delivers executive education programmes in leadership and executive development. She is currently on the IOC Athlete Learning Gateway Advisory Board and the Australian National Rugby League Research Board. She is also a Professor in the IOC-recognised Masters Executive Managing Olympic Studies and the Masters programme of the Russian International Olympic University. She is currently the Editor of the European Sport Management Quarterly. Ashleigh-Jane Thompson Ashleigh-Jane Thompson, PhD, is a Lecturer in the School of Sport and Exercise at Massey University, Palmerston North. Her research examines the utilisation of new media by sport organisations and athletes, as well as the impact of social media on sport fandom, and has been published in journals such as Communication and Sport, the International Journal of Sport Communication and the Journal of Applied Sport Management. Additionally she has presented her research at numerous international conferences in countries such as Australia, the United States, Ireland and the United Kingdom. In addition to her scholarly pursuits, Ashleigh maintains active connections with the sport industry by partnering with sport organisations for research projects, as well as volunteering as a media operations assistant at national and international sporting events. Paul Turner Paul Turner is a Senior Lecturer in the Department of Management in the Deakin Business School at Deakin University. He has worked within the Sport Management Program at Deakin for over 20 years having been Course Director from 2005 to 2010. He was also programme coordinator for the Honours Program within the School of Management and Marketing from 2011 to 2015. Paul has published in the Journal of Sport Management, Sport Management Review and Sport Marketing Quarterly, primarily in the area of

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sport broadcasting and media. He has (co)presented numerous conference papers at over 30 domestic and international sport management conferences. He previously worked in Women’s Soccer (National), State Soccer and State Touch sporting Associations in Australia, also being a recipient of an Australian Sports Medal in 2000 for services to women’s soccer. He was the Competition Coordinator for Melbourne Football for the Sydney Olympic Broadcasting Organisation (SOBO) during the 2000 Olympic Games.

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SECTION 1

The sport management environment

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CHAPTER 1

The new sport management environment Ian O’Boyle and Trish Bradbury

Key Terms: Professionalism; Commercialisation; Governance; Financial Management

INTRODUCTION Sport management has come a long way in the past 20 years. As a previously volunteerled sector even at upper echelons of the industry, the sport management environment has now evolved into a legitimate professional and commercial sector and continues to grow in size and scope in many nations throughout the world. The growth in broadcasting revenue and other commercial aspects of the industry have largely fuelled this more professionalised approach and this has undoubtedly had a trickle-down effect throughout all levels of sporting structures, from elite to community based sport. The industry has often been criticised for not staying on pace with developments in the traditional business sector such as adopting what may be considered to be best practice in those environments, but over the past decade we are seeing more and more sport based organisations align their operations with traditional business and management practices that has legitimised the sector further and has made it a respected and vibrant part of the global business and management environment. However, the uniqueness of sport, as an overall product, presents a number of challenges and complexities that must be overcome, such as the use of performance enhancing drugs in elite level sport, governance failures and challenges at almost all levels of the industry, specific strategic and marketing principles that must be applied, and the emergence of match fixing and other forms of unethical behaviour, to name a few. This book discusses the most important of these challenges as individual chapters and relies on the most up-to-date academic research in the field to provide insight and perhaps to illuminate a path of how such challenges can be addressed and overcome. As the opening section in this book, the current chapter attempts to provide a context for the current state of the sport management field while also highlighting what is to follow in the forthcoming chapters.

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THE SPORT MANAGEMENT ENVIRONMENT The sport management industry, like most other sectors, is heavily impacted by a number of other environments, such as the political, economic, social, technological and legal environments. From a political standpoint, many sport organisations rely directly on government support to fund their activities and to produce high performance athletes while maintaining growing participation levels in their respective sports. We also regularly see the impact that geopolitics has on the sport management environment through the selection of countries to host mega sporting events such as the Olympic Games and football World Cups. Organisations such as the International Olympic Committee (IOC) and the Fédération Internationale de Football Association (FIFA) have become as much politically based entities as they are sporting organisations with ties to major players in the global political environment that heavily impact the global sporting framework. From the economic and social perspectives, the sport management industry is also impacted due to issues such as the global financial crisis, which saw a general decline in commercial sponsorship within the sector, and social trends such as individuals leading more sedentary lifestyles and growing levels of obesity in various countries. Technology is also having a major impact within sport management from the growth of eSports, to improving the capabilities of sport organisations, to enhancing the customer (fan) experience through increased viewing options via smartphones, tablets, social media and live streaming of many major sporting events. And of course, the impact of the legal environment on sport management continues to be significant, particularly around issues such as the growth of combat sports like the Ultimate Fighting Championship (UFC) and their regulations, corruption and financial irregularities in organisations such as FIFA, match fixing and the use of illicit and performance enhancing drugs by athletes. As the sport management industry has adopted a more professional ethos, we continue to see a steady growth in the ability of certain entities to generate significant levels of finance. We often see big headlines of the major sporting leagues around the world signing multibillion-dollar broadcasting deals that allow these entities to increase player salaries and financial returns to owners/investors while safeguarding the future of such leagues through a strong financial foundation. However, although in certain contexts, such as in the sport of Australian Rules football, there may be a trickle-down effect to lower levels of the code, many non-profit sport organisations continue to struggle financially and are often at risk of building up large levels of debt and having to be bailed out by affiliated organisations, as was the case with the Otago Rugby Union and New Zealand Rugby (NZR) in 2012. It is becoming increasingly important to ensure that individuals who are in positions of power in sport organisations, such as senior managers and board members, have an adequate level of business and financial management acumen to provide the prospect of financial sustainability for their respective sports. There are many sources of finance a non-profit sport organisation can access, which is often referred to as the ‘income mix’. In many western European nations and within Australasia, significant funding for non-profit sport comes from government entities, but this is often tied to the potential for those sports to perform well at major sporting events and achieve high performance results. As a result, this form of funding is notoriously unpredictable and unstable and sport organisations

The new sport management environment

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should not rely solely on this type of income. Diversification in the income mix is crucial for the sustainability of these sporting codes and the ability of organisations to generate commercial income, including corporate sponsorship, is paramount. Yet again, however, the ability of sport organisations to achieve this is often dependent on the calibre of individuals involved in the management and governance of these entities. Perhaps the biggest issue to impact the sport management environment in recent years, both at the elite and non-elite level, is the area of sport governance. The topic received global media attention in 2015 due to the level of corruption that was uncovered in FIFA surrounding the illegal payments and misappropriation of funds embedded in the culture of FIFA and facilitated by some of the most senior figures in the organisation, including former president Sepp Blatter. What followed was an investigation by the Department of Justice in the United States and several indictments of senior FIFA officials. FIFA itself has attempted to undertake a reform process but has been criticised for not doing enough, and many of the alleged actors in the corrupt regime of the ‘old’ FIFA continue to act in positions of power in the supposedly reformed entity. One of the major points in relation to this embedded culture of corruption and failings of sport governance has been the awarding of FIFA World Cups to Russia in 2018 and Qatar in 2022, with both bids apparently awarded through bribery and other unethical and immoral actions on behalf of those in influential positions. With regard to Qatar 2022, the labour practices involved in the building of stadia to host the event have come under scrutiny, with many construction workers having been killed due to unsafe site conditions and other workers denied basic employee rights. FIFA has tried to distance itself from these issues by claiming that it is not its responsibility to govern the labour practices of a country that is hosting a future World Cup. FIFA is not the only international sport governing body to have made headlines for poor sport governance practice in recent years. The IOC’s lack of leadership around the hosting of the 2016 summer Olympic Games in Rio de Janeiro has been called into question. Many health experts throughout the world had called for these Games to be postponed or moved to another location based on the prevalence of the Zika virus in Brazil and the potential for it to spread globally should the Olympics go ahead in Rio. Unsurprisingly, however, the IOC has been unwilling to postpone or move the Games and this decision has been supported by the World Health Organization (WHO), with whom the IOC has a ‘close’ relationship that has been labelled by many as a conflict of interest surrounding this decision. Lack of good governance practice is apparent not only in the upper echelons of the sport management environment but also in systems that are characterised as non-profit and responsible for governing sporting codes from elite to community level. In countries where a federal model of sport governance exists, such as the UK, Australia, New Zealand, Canada and a host of other major sporting nations, the issue of governance has been at the fore as sporting systems try to establish streamlined networks that work closely together to achieve ‘whole of sport’ progression as opposed to an environment where organisations often work in isolation and at times are in conflict with their affiliated entities. This issue has been recognised by a number of state based sporting agencies such as UK Sport, the Australian Sport Commission (ASC) and Sport NZ, which have all called for better governance practices in non-profit sport and have produced documents and resources to assist organisations in this endeavour.

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In relation to sport governance, an issue that regularly receives media attention and is certainly a concern for many sporting entities is the area of performance enhancing drugs (PEDs) in sport. The World Anti-Doping Agency (WADA) is often criticised for not having a strong enough hold on the issue of PEDs in sport and for not dealing with the issue appropriately. High profile athletes such as Lance Armstrong and Maria Sharapova have brought the issue to the fore once again in recent times, and the extent to which PEDs are being abused in high performance sport appears to be far greater than most would have predicted. Russia’s state-sponsored doping programme is a prime example of how far governments are willing to go to achieve success in international sporting events and paints a dire picture of the culture of using such drugs that appears to be embedded in certain sports and within certain countries’ sport science regimes. As we can see, the sport management environment is far more complex than it was a decade ago, both in terms of its professional and commercial capabilities but also in terms of the issues facing the sector. The industry needs effective leadership from within its own ranks that is based on best practice from more established fields such as the traditional business discipline. Academic work is an important element of driving the sport management industry forward and relevant academic research is beginning to play a significant role in the development of policy and practices within many sporting bodies both at the governance and management levels. We anticipate that this book, which relies on the latest research in the field in relation to a number of pertinent areas of sport management enquiry, will add to the current conversation and assist in developing a best practice approach for a variety of areas in the sport management industry.

STRUCTURE OF THE BOOK This opening chapter presents a rough guide for the current context of the sport management environment and some of the major issues facing the industry in the 21st century. This is followed by Chapter 2, which deals with the role of sport in society. Sport has been ubiquitous to all cultures throughout history, playing an essential role in the social and community life of people across the globe. We have found evidence of sport and play in cave paintings, ancient artefacts, art and media, with sport being a space for acculturation, learning important life skills, health and fitness and of course enjoyment as a participant or as a spectator. The focus of this chapter is on the impact of sport in society and the various roles that sport can play for individuals, the community, nations and internationally. This chapter will provide a brief discussion of sport and its role in society before discussing how sport impacts different aspects of society, including: playing sport, sport and government policy and sport for development. Chapter 3 addresses the structural and functional aspects of sport governing bodies. After describing the unique attributes of a sport governing body, the authors describe the need for and the nature of the horizontal differentiation of the three manifestations of sport: egalitarian sport, elite sport and entertainment sport. It is also stressed that there should be a vertical differentiation of the three hierarchical units in a sport governing body, which are the institutional subsystem (i.e. board of directors), the managerial subsystem consisting of the chief executive officers and their associates, and the technical subsystem, which is involved in producing the services offered by national sport

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governing bodies (NSGBs). The chapter also outlines the specific responsibilities of an NSGB stemming from its position as the apex of an inter-organisational network. Chapter 4 explores the world of professional sport. Professional sport is associated with a payment to athletes involved in delivering sport, usually via a club or league competition. These sports comprise many stakeholders who have a direct impact on their functioning. These stakeholders represent internal groups such as the athletes, clubs, leagues and governing bodies who have a direct impact on professional sport. This group represents the people who provide the rules and regulations and actual spectacle of professional sport. External groups represented by the fans, communities, corporations and media are other stakeholders who contribute through attending, reporting and having a commercial association with professional sport. The involvement these stakeholder groups have on the professional sport system is addressed throughout this chapter. Chapter 5 focuses on the global sport environment. The chapter discusses the enormity of the global sport landscape and the growing nature of multi and single sport event opportunities. Given the ease of transportation and the available technologies that allow for sport consumption, many professional sport leagues are strategically increasing their product offering in overseas markets. However, there are many differences regarding how professional sport leagues are organised. The different types of sport leagues and their prominence in a particular market are addressed in this chapter. Attention is also afforded to one of the most important changes in recent years within the global sport environment: the role that social media plays in sport organisations’ communication. Chapter 6 outlines and discusses the three principles of managing high performance (HP) sport in non-profit sport organisations. These principles are (a) the elite athlete development process, (b) the determinants of managing HP sport and (c) the strategic management of HP sport. These three principles take the reader on an educational journey that starts with the examination of managing the talent identification and development pathways to the exploration of the macro, meso and micro environments and the factors within them that influence success in the athlete and sport development process. It concludes with the importance of managing sport using a strategic approach in order to achieve a competitive advantage and maintain long-term success in managing HP sport. Chapter 7 introduces the viable system model (VSM) as a tool for understanding factors influencing performance in organisations. The model is used to depict and analyse the effectiveness of organisational structures observed in well-known sporting organisations. The discussion reveals the impact of observed systemic structure on organisational performance and effectiveness. The case situations presented in this chapter are drawn from contemporary and historical sport organisations both notional (virtual) and real. Chapter 8 explores the strategic planning process in sport organisations. The importance of developing adequate strategic plans and going through a robust process are discussed in this chapter. The various elements of a strategic plan are discussed alongside a discussion focusing on the importance of goal setting and performance management in order to achieve strategic objectives. The relevance of individual employee’s roles and responsibilities in relation to the achievement of strategic imperatives is also examined. Chapter 9 has a focus on the issue of volunteerism in sport. Volunteers are the lifeblood of most grassroots sport organisations. Taking on an array of critical operational

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and supporting roles and duties, volunteers not only provide the labour required to deliver sporting opportunities to the community, but they often are also the heart and soul of those organisations. To be effective, volunteer contributions must be planned, organised and aligned with both the organisation’s goals and with the volunteer’s motivations for involvement. The chapter takes a human resource management approach to provide a useful framework for good volunteer management. Chapter 10 builds on what was introduced in Chapter 3 concerning the topic of sport governance. This chapter takes an acute view of the sport governance domain by examining the role of women in sport governance positions, sport governance models in nonprofit sport, the role and concept of ethical decision making in sport governance, while also exploring governance practices at organisations such as the IOC, FIFA and other professional sport bodies. This conversation is complemented by a concise overview of current work being undertaken in academia related to sport governance. Chapter 11 explores the important role of leadership in sport management. The chapter outlines the fact that leadership has changed, and what makes an effective leader in the 21st century is not necessarily reflective of what was perceived as effective even only half-a-century ago. The authors contend that leadership is simply the application of power to influence others, whether in a business, personal or a sporting context. Rather than give a complete overview of the broad topic of leadership, the chapter focuses on three emergent leadership theories that reflect the underlying changes in how effective leaders are viewed: transformational, authentic and servant leadership. Three contemporary examples of sporting leaders that articulate each of these leadership approaches are outlined to provide context to the theory. Chapter 12 covers the topic of sponsorship in sport. Sponsorship is a funding mechanism that provides partial support to many sports, arts, entertainment and charity organisations. Sponsorship has also become a communications platform for many companies. Beyond these two practical aspects of sponsoring, the contractual linking of two organisations is also a partnership where individuals must come together to work towards shared goals. This chapter defines sponsorship and also distinguishes it from ambush marketing; it also considers why each party to the agreement seeks the relationship. A consideration of the role of sponsorship in organisations is included, as is a discussion of possible conflicts in sponsoring. The final section examines the case of eSports as a sponsorship property of interest to brands. Chapter 13 affords attention to the topic of sport marketing. The unique aspects of marketing in terms of sport as opposed to traditional marketing are explored, along with how the marketing process has some distinctive characteristics when applied to the sporting context. Traditional marketing theory often relies on the 4 Ps of marketing (product, price, place, promotion), and although these issues are addressed in the chapter, the author also introduces the 4 Cs of sport marketing (consumer, company, competitor, climate), which are catered specifically for sport-related products and services. Other elements of this chapter also examine the topics of market segmentation and brand management, which are seen as being of utmost importance to a number of sporting teams and organisations. Chapter 14 examines the economics of sport. Economics focuses on how scarce resources are utilised to meet a particular goal. As such, economics is an ideal fit for the analysis of sport, especially since goals within sport are often clearly observable.

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Individuals, teams, leagues/competitions and the public sector all have goals, both on and off the field of play. Economics is also the study of how incentives affect our behaviour, and sports provide vivid examples of how individuals and teams respond to changes in incentives. This chapter introduces economics and its application to sport in four areas: the behaviour of the individual athlete or team, the operation of sports leagues (considerations and policies), public finance (the demand for government funding), and non-sporting behaviour (cheating and tanking). The chapter draws on several examples across the sporting world to illustrate the important role that economic thinking plays in the modern sport sector. Chapter 15 discusses modern forms of communication in sport management. Social media are pervasive communication tools in contemporary society and modern consumer culture. Its escalated use by athletes, teams and sport organisations has not gone unnoticed. This chapter begins by providing a discussion on social media, along with an overview of existing sport-related social media research. Specific consideration is given to Facebook, Twitter and Instagram due to their rising prominence as platforms of choice within the sport industry. These communication tools are particularly important for sport organisations in the context of branding and the development of consumer brand relationships. This chapter provides a discussion of the key issues associated with social media use in relation to these marketing communication activities. It concludes by exploring various challenges that are faced by sport organisations as they seek to leverage opportunities provided by these new media. Chapter 16 explores how the law is applied and relevant within the sporting context. The law in relation to the world of anti-doping is afforded attention along with an analysis of how criminal law can be applied in sport based cases. Tort law and breaches of tort law appear regularly in the sporting environment, and as such a discussion of the relevance of tort law to the sporting context is included in this chapter, as are issues of negligence, breach of contract and intellectual property, and their related legal implications. Chapter 17 introduces the topic of sport event management. Sport events are an important and growing event sector, encompassing the full spectrum of community sport events and international sport competitions, and offer a range of experiences to event spectators and participants, and generate various impacts on the community. As the types and uses of sport events have grown, sport events have become more complex and require diverse skills of event management, from operation skills to strategic managerial knowledge. In this chapter, the classification of sport events by size, sporting characteristics and temporal characteristics is discussed. The second and third topics to be discussed are the motivations of sport event spectators and participants, and the special nature of sport events, which shapes their experiences. Lastly, a range of impacts of sport events is discussed to illustrate the broader role of sport events for community, economic and social development. Chapter 18, the penultimate chapter in the book, explores sport tourism. The practice of sport tourism can be traced to ancient Greece and activities associated with the Games at Olympia, but it was industrialisation that created the conditions for the development of sport tourism as we know it today. This chapter discusses the way improvements in transportation expanded the horizon of the different types of sport tourists with concepts such as sport involvement and place dependency used to help explain

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their behaviour. The mobility of sport and sport resources is shown to be a powerful influence on contemporary forms of sport tourism. Resource analysis is presented as the starting point of a planning process to use sport tourism as a tool of social and economic development, and a case study of surfing at Byron Bay serves to illustrate the implications of a sport specialisation approach for destination management. Chapter 19 acts as a summary chapter for the entire book. In this chapter we discuss the major points from each of the chapters outlined above while also pointing to the future trends and challenges in the sport management environment.

CHAPTER 2

The impact of sport in society Emma Sherry

Chapter objectives After completing this chapter, you should be able to: UÊ Õ˜`iÀÃÌ>˜`ʅœÜÊëœÀÌÊ«>ÞÃÊ>ʎiÞÊÀœiʈ˜Ê>ÊÜVˆïiÃÊ>˜`ÊVœ““Õ˜ˆÌˆiÃÊ>VÀœÃÃÊ̅iÊ}œLiÆ UÊ `iÃVÀˆLiʅœÜÊëœÀÌʈÃÊÕÃi`ÊLÞÊ}œÛiÀ˜“i˜ÌÃÊ>˜`ʜ̅iÀʜÀ}>˜ˆÃ>̈œ˜ÃÊ̜Ê>V…ˆiÛiÊ>ÊÛ>ÀˆiÌÞÊ œvÊÜVˆ>ÊœÕÌVœ“iÃÆ UÊ ˆ`i˜ÌˆvÞʅœÜÊ}œÛiÀ˜“i˜ÌÃÊ`iÛiœ«Ê«œˆVÞÊ>˜`Ê«Àœ}À>““iÃÊvœÀÊ̅iÊëœÀÌÊÃiV̜À]ʈ˜VÕ`ing regulation of media, integrity of sport, health, sport gambling and community ˆ˜vÀ>ÃÌÀÕVÌÕÀiÆ UÊ `ˆÃVÕÃÃÊ̅iÊÛ>ÀˆiÌÞʜvÊÜ>ÞÃÊVœ““Õ˜ˆÌˆiÃÊ«>À̈Vˆ«>Ìiʈ˜Ê>˜`ÊVœ˜ÃՓiÊëœÀÌ°

Key Terms: Community; Participation; Performance; Government Intervention; Social Change; Sport for Development

PLAYING SPORT When we think of ‘sport’ we often think of the high performance, professional leagues and events that capture the attention of millions across the globe each week. However, there is so much more to sport than the top end, commercial or professional spectacles, and, for many – or indeed most – of us, our participation in sport is as a child or as a participant in community clubs and events. This chapter discusses how we play sport, as children in informal play, at school or in modified sport programmes, and as youth or adults in the community. It is on these fields of sport that we see first hand the impact of sport in society.

CHILDREN AND SPORT From the moment children can crawl, they begin to play; they create and participate in activities for enjoyment and recreation. As children develop their gross motor skills, this spontaneous play becomes more organised and structured, although often following rules of their own design or that suit the location of play. It is at the time of starting school,

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although often earlier, that many children first participate in organised or structured sport in school or via community club or private sport programmes (Coakley, Hallinan & McDonald, 2011). The role of sport in the lives of children is complex, as for some families sport is an unnecessary distraction from education, work or the arts, whereas for others, sport is integral to their family and community context (Dowling, 2015). The education system in many nations, however, has mandated physical education as a key component of a child’s overall education (Hoye, Nicholson & Houlihan, 2010), in particular to ensure that all children develop their gross motor skills and physical strength and fitness (Eime, Young, Harvey, Charity & Payne, 2013). Today the focus on school sport and physical education can be simultaneously for pleasure and participation and also to provide the first introduction to the power and performance sports noted by Coakley and colleagues (2011) above. Due to broad societal changes in many Western nations, we have seen concurrent changes to the delivery of sport programmes to children. Changes such as the increased workforce participation of both parents and in the understanding of what makes a ‘good’ parent have resulted in increased opportunities for formally organised sport programmes outside school hours (Coakley et al., 2011). Further, increased fears of parents around the perceived dangers of unstructured and unsupervised play have resulted in an increase in parent or adult controlled and delivered sport experiences for children (Coakley et al., 2011), in direct contrast to the relatively ‘free-range’ parenting of earlier eras. A final important factor in the increase of structured sport programmes for children has been the global professionalisation of sport, which has resulted in the increased visibility of an extraordinary variety of sports at the professional level via multiple forms of media (Nicholson, Kerr & Sherwood, 2015). In addition, for many children, a future as a professional or elite athlete is a more tangible and visible goal than for previous generations (Coakley et al., 2011). Indeed, the notion that one can make one’s fortune as a professional athlete has resulted an incredible increase in the early specialisation of sport participation for children, as the goal to reach the top, it is argued, requires early talent identification and specialist coaching (Sotiriadou & Shilbury, 2009). Questions remain unanswered, however, about the efficacy and indeed ethics of early specialisation, with some arguing that early specialisation can lead to adverse physical and psychological health outcomes (Mostafavifar, Best & Myer, 2013). In many Western societies, we are noting a push back from this hyper-organised, performance focused sport programming, in favour of more encouragement to allow children the time and space to learn skills, develop fitness, resilience and strength and participate for the enjoyment of the activity (Burdette & Whitaker, 2005). This has been realised through an increase in modified sport programmes specifically designed for young children that switch the focus to skills and fun (e.g. Hot Shots tennis in Australia) (Phillips & Warner, 2016) and the increase in participation numbers for non-traditional sports including skateboarding, surfing and roller derby.

COMMUNITY SPORT Traditionally, local community sport clubs and leagues are organised at the grassroots level by the community and governed by local associations or regional governing bodies

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(Hoye, Nicholson, Westerbeek, Smith & Stewart, 2016; Misener & Doherty, 2009). For many communities, sport participation for adults occurs in local community clubs and leagues, with varying levels of participation, from those who are only seeking a fun opportunity, to those who are on the pathway into – or out of – semi-elite competition. However, this traditional format of organised sport is being challenged as many individuals in Western nations are increasingly time poor; in response, many sports are now developing modified versions of their games to sustain or increase participation and to broaden the participation base. Shorter versions of games, often with rule changes and less physical fitness required, are being trialled in sports such as Australian Rules football (AFL 9s), tennis (Fast 4), rugby (Rugby Sevens) and netball (Fast 5). By providing opportunities for the community to participate in sports in a way that suits their needs, the traditional sports are ensuring their sustained success and longevity (Sotiriadou, Wicker & Quick, 2014). Similarly, changing sport consumption patterns have led to changes in format. For example, in the sport of cricket, which was once only played all in white in a five-day format, has developed new products to meet the needs of modern audiences. The introduction of the one-day series (Wagg, 2013) and later the T20 format, both of which feature faster, more spectacular game play, has been a resounding commercial success for the International Cricket Council (ICC). Not only have the changes resulted in more spectators and television viewers (Anstead & O’Loughlin, 2011) as they reach very different audience demographics, but the format changes have also allowed for more diverse participation from non-traditional cricket participants, such as women and girls or those culturally new to the game (ICC, 2016).

OLDER ADULTS One of the largest and fastest growing demographic groups in the community are older adults and, as a result of increased health and life expectancy, greater disposable income and longer periods of retirement, we have seen a subsequent increase in demand for competitive Masters sport and programmes targeting older adults. The World Masters Games began in 1985 and have grown to become ‘potentially the largest participatory multisport competition in the world’ (IMGA, 2010). The Games are open to competitors of all abilities, with the stated aim of the International Masters Games Association (IMGA) being to support the Olympic movement and promote the Olympic Charter message of ‘sport for all’. The IMGA aims are to promote and encourage mature athletes from all over the world to participate in competitive sport in a socially stimulating atmosphere; there are no national teams, nor qualification requirements, other than the requirement that participants are over the minimum age set by sport federations for each sport (IMGA, 2010). The Games carry an overarching message of friendship, inclusion and participation, regardless of ability, national allegiance, race, gender or religion (IMGA, 2010). In addition to competitive sport for older adults via the Masters Games, many sports also actively develop specific programmes and events for older adults, or those who are no longer able to compete in the open level of competition. Walking Football is a modified version of soccer, which is gaining popularity across the United Kingdom and

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Europe (Walking Football, 2016). The game, aimed primarily at people over the age of 50, is played at walking pace and players are penalised if they break into a run. Only introduced in 2011, walking football’s popularity is evidenced by the boom in the number of new walking football teams and the development of a national league in the United Kingdom (Walking Football, 2016). Sports such as tennis, lawn bowls and golf pride themselves on being lifelong sports that can be played socially into older age, and in addition to providing health and fitness benefits (WHO, 2015), participation in sport also facilitates strong social connections and social support (Holt & Talbot, 2011).

ALTERNATIVE SPORTS AND EVENTS As the popularity of traditional sports wanes, although these sports are working towards developing new and engaging sport programme offerings, more and more people are being drawn to alternative sports and events, such as: barre classes, crossfit and mud runs, the most famous of which is the Tough Mudder franchise. These activities provide fitness and physical challenges, often in a team environment, but outside the traditional organised sport system. The appeal of events such as these is a combination of the personal challenge of overcoming, quite literally, obstacles, with no ongoing commitment to participation or membership of a club or association. In comparison, programmes such as hot yoga, barre and Pilates are providing physical activity opportunities for those, predominantly female (Fitbit, 2016), who also wish to develop or maintain their health and fitness in a more holistic and non-competitive environment. All of these alternative activities and events provide a sport-like experience for participants, outside of the traditional sport structures. In response, many sports are working with similar models of programme design and delivery, such as fitness programmes based on sport activities – for example, NetFit, a netball initiative, or Cardio Tennis, a tennis fitness programme – in an attempt to capture this market.

SPORT AND GOVERNMENT One primary arena in which sport impacts on society, or more appropriately where society impacts on sport, is the intervention of government on the sport sector. This section of the chapter provides a brief outline of six key areas where government most commonly attempts to regulate and control sport and sport organisations: health, gambling and integrity, discrimination, media, sport facilities and nation building.

Health Although sport participation has the potential to cause injury, sport and the physical activity inherent in most sports have proven benefits for health, such as aerobic fitness, strength and flexibility (WHO, 2015). International governments and international organisations, such as the World Health Organization (WHO), use policy and legislation to increase or encourage the health benefits of sport (Haskell et al., 2007; WHO, 2015). Often linked with health promotion activities, sport and physical activity are leveraged

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by governments in an attempt to address the global obesity epidemic and to help in the prevention of non-communicable diseases (Haskell et al., 2007). Policy instruments most commonly found in the sport and health nexus include: physical activity guidelines; tax incentives; and public awareness and education programmes. Physical activity guidelines are developed and refined by government bodies with the intent of encouraging citizens to be physically active to the extent that they will incur the health benefits associated with sport and physical activity participation (Haskell et al., 2007). Tax incentives are provided with the goal of encouraging increased physical activity: for example, governments might offer tax breaks to parents enrolling their children in sport or physical activities or provide reduced taxes on sporting goods (Tigerstrom, Larre & Sauder, 2011). Public awareness and education campaigns seek to alert the public to the benefits of participating in physical activity and the health implications of inactivity (Knox, Taylor, Biddle & Sherar, 2015) as governments try to use sport and physical activity to reduce the significant burden of health management represented by non-communicable diseases (Habib & Saha, 2010). Limiting the sponsorship of sport teams by tobacco companies, as has occurred in Australia (Hoye et al., 2010), may also be viewed as an intersection of health and sport policy.

Gambling and integrity Gambling or sport betting is one of the fastest growing revenue streams for sport organisations internationally (Hoye et al., 2010) and, as a result, is becoming an increasingly important area for government intervention and policy (Hoye et al., 2010). Gambling has been an inherent component of professional sport since the ancient games, with sports such as horse racing and boxing fundamentally delivered for the purpose of betting and wagering (Forrest, 2006). Hand in glove with gambling goes the concept of integrity in sport, and governments across the globe and international and national sport federations alike seek to use regulation and legislation to ensure the integrity of sport competitions to avoid cheating and match fixing behaviours (Forrest, 2006). Governments in many nations use regulation and policy to control illegal betting and to collect any associated taxation from approved sport betting activities (Hoye et al., 2010). The Australian Sports Commission (ASC), the primary statutory agency charged with administration of sport in Australia, provides good examples of typical government interventions in sport with respect to integrity. The ASC states ‘activities and behaviors that define sport as lacking integrity include: creating an unfair advantage or the manipulation of results through performance enhancing drugs, match fixing or tanking’ (ASC, 2016). In addition, the ASC includes anti-social behaviours displayed by parents, spectators, coaches and athletes, such as bullying, harassment, discrimination and child abuse as lacking in integrity and has instigated policy and guidelines to limit or control such behaviours in the form of member protection policies (ASC, 2016). Further, the ASC has developed a suite of policies, strategies and guidelines that address issues of discrimination in sport: the Fair Go Sport initiative aims to address homophobia; the National Anti-Racism Strategy focuses on reduction of discrimination due to race or ethnicity; the Play by the Rules initiative promotes messages around safety, fairness and inclusion; and

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the Good Sports programme’s intent is to reduce the use of alcohol in community sport clubs (ASC, 2016). Perhaps the most commonly discussed issue of integrity in sport is the issue of doping and the use of performance enhancing drugs. Sensational cases, such as that of Lance Armstrong, which saw a world champion athlete finally, after years of denial, admit to ongoing, systematic use of performance enhancers in the Tour de France, have elevated the issue of doping in the public consciousness. Governments and international agencies have developed strict rules around the use of performance enhancing substances in an effort to ‘preserve what is intrinsically valuable about sport’ (ASC, 2016). The World Anti-Doping Authority (WADA), ‘an international independent agency composed and funded equally by the sport movement and governments of the world’ (WADA, 2016), has developed the World Anti-Doping Code, a document that ‘harmonizes anti-doping policies, rules and regulations within sport organizations and among public authorities around the world’ (WADA, 2016). The code, to which all signatories must adhere, addresses five technical standards: the prohibited list, a record of banned substances; testing and investigations, effective testing of samples; laboratories, accreditation of laboratories; therapeutic use exemptions (TUEs), determining exceptions to the testing regime for therapeutic substances; and protection of privacy and personal information, ensuring all agencies adhere to standards of information protection (WADA, 2016).

Discrimination and safe sport Sport has a long history of being a public platform to enact change in social attitudes, with images of the black power salute on the Olympic podium in the 1968 Mexico City Olympics (Cosgrove, 2014) or of the first female to run the Boston Marathon powerfully illustrative of a broader cultural change (Renick & Velez, 2013). Governments have a role to protect sport participants from harm, both from physical harm, through member protection policies around harassment and abuse, and from discriminatory practices that exclude participation by specific groups, such as women, people of colour, different sexualities and sexual identities, people with a disability and religious belief, as demonstrated by the development and introduction of the suite of policies, strategies and guidelines by the ASC discussed above. The physicality of sport and the potential for power differential between, for example, a parent and child, or a coach and child have unfortunately resulted in many documented cases of child abuse in sport (Hoye et al., 2010). Governments work within their own legislative frameworks and in partnership with national sport organisations to ensure the safety of their participants, particularly children, from harmful behaviours such as physical or sexual abuse. Child protection policies are mandated within many sport organisations, and indeed this concept has now been extended to member protection policies to limit harmful behaviours within sport (ASC, 2016). In addition to abuse prevention, member protection policies and associated government policies seek to address the ongoing and complex issue of discrimination in sport. Traditionally, sport has been a male space, or more specifically a white, privileged male space, with other genders, races, sexualities, abilities and religions often overtly excluded from participation (ASC, 2016; Messner, 2001). Each nation has its own legislative

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framework to protect its community from discriminatory practice; for example, Title IX in the United States, aimed at providing equal access to males and females in sport, or the Anti-Discrimination Act in Australia, addressing discrimination against a range of groups, and these laws apply equally to sports. It is important to note, however, that there are some instances where discrimination in sport is permitted; for example, gender differentiation in the separation of men’s and women’s events in competition (e.g. Parliament of Victoria, 2010). These discriminatory practices are the exception to the rule, and are based on the premise of providing equal opportunity to participate against similarly able competitors.

Media Sport and the media are engaged in a uniquely interdependent relationship: media relies on sport for a significant portion of its content and audience, and sport relies on media for substantial funding and promotion of its events and products. The role of government in the sport media landscape is dependent on the different context for each nation (Nicholson et al., 2015); for some, the regulation of the sport media is minimal, for others, government policy and legislation places a heavier hand on the size and scope of media outlets (Nicholson et al., 2015). When examining the government and sport media context, it is essential to appreciate the rapidly growing and changing face of sport media, particularly the use of new media platforms and social media by sport organisations and broadcasters (Sherwood & Nicholson, 2013). Government plays a key role in sport media via: (1) the regulation of the sale of broadcast rights to sport events and leagues, such as ensuring fair competition between broadcasters to ensure rights; (2) access to sport broadcasts, for example, ensuring key cultural sport events are readily available on free to air television; (3) advertising content associated with sport broadcasts, such as the ban on advertising tobacco products in sport broadcasts in Australia; and (4) media ownership, in order to prevent vertical integration of the sport and media industries (Nicholson et al., 2015).

Facilities As the administrator of the largest funding pool for many nations, government has a key role to play in the development and construction of sport facilities, both community participation facilities and larger stadia that support professional leagues and major or mega sport events. In addition to construction funding, often achieved through a public– private partnership commercial arrangement (Coakley et al., 2011), governments often own and/or manage the public land on which these facilities are built. When developing policy and particular funding programmes for sport facilities, governments must undertake a balancing act to ensure the public good for such an investment; however, the determination of public good may be complicated by factors such as the history or prestige of a certain facility or event, the economic impact that can be drawn to a city or country via the hosting of sport events and the social impact of the facility on the local community, both good and bad (Coakley et al., 2011). Different levels of government develop, manage and fund sport facilities for different reasons; for example, in Australia the majority of sport facilities are managed by local government

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authorities, whereas large stadia that host major and mega events are funded by both state and federal monies (Richards, 2016). Governments also play a role in the ticketing of events, with some governments regulating the sale of tickets to high profile events via anti-scalping legislation (Drayer, 2011).

National identity One of the most visible roles of government in sport is the use of sport as a tool for nation-building and national identity (Marjoribanks & Farquharson, 2012). Sport is an exceptionally visual and culturally important medium through which nations and regions can demonstrate their pride and identity on a global stage. Nowhere is this more illustrative than the Olympic Games, where governments spend many millions of taxpayer funds to bid for the rights to host the Games, and use the Opening Ceremony as a platform to declare their position in the world and the identity they wish to portray (Hogan, 2003). Mega events, such as the Olympic Games, Commonwealth Games and FIFA World Cup, provide a common meeting place for international governments to come together to cheer for their nation and, more importantly, to meet with colleagues, industry and international organisations to keep the wheels of international diplomacy turning (Marjoribanks & Farquharson, 2012). It is important to note, however, that these international sport events are typically dominated by those countries that can afford to invest heavily in high performance sport, leading some to argue that such events reproduce global inequities (Marjoribanks & Farquharson, 2012).

SPORT FOR DEVELOPMENT In recent years, society has become increasingly aware of sport’s capacity to foster a wide range of social and developmental goals (Schulenkorf & Adair, 2014). Consequently, it has received increased attention from government agencies, non-governmental organisations (NGOs), national sporting organisations (NSOs), sport practitioners and researchers both locally and internationally (Schulenkorf, Sherry & Rowe, 2016). In association with these groups, frequently recognised under the banner of sport for development (SFD), there has been a proliferation of sport and physical activity programmes designed to deliver predominantly non-sport outcomes to individuals and their communities (Coalter, 2006). Through engaging groups in physical activity and sport, SFD programmes not only have the opportunity to promote the health and well-being of participants (Caperchione, Kolt, Tennent & Mummery, 2011), but also have the capacity to play a substantial part in the social lives of young people. For individuals, sport provides opportunities to express physical actions, and social identities, and to develop closeness to other people (Spaaij, 2015). Sport for development is an area of exceptional growth in the international sport industry, and sees sport used in communities around the world to effect positive development outcomes. Unlike traditional sport development, where the aim is to develop the sport or athlete to their highest sporting potential, SFD focuses on using sport as a tool to achieve broader aims that are most often outside the scope of the sport itself

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(Coalter, 2006). These programmes most commonly aim to address the following: sport for people with a disability; gender; livelihoods; health; education; and peace and social cohesion. This section of the chapter now briefly discusses each of these.

DISABILITY Unlike programmes for Parasport athletes, where the aim is to develop athletes with a disability and to enhance their sporting achievements, sport programming can also be used as a platform to engage people with a disability in activities that support their quality of life or social integration (Smith, Wegwood, Llewellyn & Shuttleworth, 2015). Sport programmes have been used by a variety of NGOs to provide recreation opportunities for people with a disability (e.g. rugby league programmes in Papua New Guinea; Sherry & Schulenkorf, 2016) or to facilitate skill development and social interaction for people with a disability and the wider community (e.g. community soccer programmes in an intellectual disability supported-living facility; Gallant, Sherry & Nicholson, 2015). The key to these experiences is that the sport programme or activity provides opportunities for people with a disability regularly enjoyed by mainstream populations; the actual sport itself is of less consequence than the opportunity for recreation, social interaction, the negotiation of identity and engagement with support services and programmes to enhance quality of life outcomes (Smith et al., 2015).

GENDER One of the more common target populations for SFD are programmes specifically targeting women and girls. For many nations, women and girls are not afforded the opportunity to participate in sport and physical activity (Sherry & Schulenkorf, 2016); women can be excluded from participating in society more broadly, including reduced access to education and employment and increased risk of harm from others (Sherry & Schulenkorf, 2016). SFD programmes are often used as a culturally appropriate and engaging method to work with women and girls for education and empowerment. A recent example of such programming is found in an ICC initiative, Kriket Bilong Olgeta (Cricket Belongs to Everyone), under way in a number of South Pacific island nations that seeks to engage young women in the sport of cricket and provide a structured education programme around empowerment, hygiene and sexual health (DFAT, 2016). The provision of sport programmes, additional education and mentoring allows the women to discuss sensitive and important issues in a safe and supportive space. Programmes such as these also provide women with transferable skills that can be used for future employment and financial independence.

LIVELIHOODS In addition to being a place for social interaction and fun, sport can also provide opportunities for improving the livelihoods of SFD programme participants. In the context of high income Western countries, evidence of sport being used to support livelihoods can be

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found in programmes that seek to support at-risk populations and provide employment skills; for example, the EPL’s Kicks programme in the UK (EPL, 2016) or the NRL’s School to Work programme in Australia (NRL, 2016) are employment-focused programmes aimed at encouraging young people to make positive life and career decisions. There has been little research in this field of SFD in the international context; however, a key aim of many SFD programmes is to develop local capacity and leadership in programme participants, with the aim to ensure the long-term sustainability and local community ownership of such programmes (Sherry & Schulenkorf, 2016). As a result of the investment in SFD programmes internationally, local staff have been employed to deliver programmes, in coaching and administration roles, and have undertaken further education and training to facilitate future careers, thereby enhancing their employability outside sport (Sherry & Schulenkorf, 2016). Another interesting side effect of some SFD programmes in developing nations has been the growth of local community market stalls alongside sport events. As the sport programmes and events have grown, local women have set up food and drink stalls to service the spectators and participants, increasing their own financial independence alongside the success and growth of the SFD programme.

HEALTH An obvious outcome of many sport programmes is increased physical and mental health (Sherry & O’May, 2013). SFD programmes often specifically target health outcomes when engaging with target populations, with the focus of activities on the improvement of health outcomes for the individuals and their communities through engagement with the programme. An illustrative example of such a programme is Kau Mai Tonga, Ke Tau Netipolo! (Come on Tonga, Let’s Play Netball!), a health and physical activity programme that used the sport of netball to facilitate physical activity and to reduce or prevent non-communicable disease in women aged 15–45 years (Netball Australia, 2014). Similar programmes have been delivered across many different nations with messaging and education around: sexual health, hygiene, healthy food choices, AIDS prevention and water safety (Schulenkorf et al., 2016). In addition, in national Western contexts, many sports provide appealing and targeted programming aimed at encouraging healthy eating: for example, the Western Bulldogs, an AFL team in Melbourne, works with local agencies to provide a men’s health initiative, Sons of the West, a men’s physical activity, health and nutrition programme (Sons of the West, 2016).

EDUCATION Using sport as an enticement to stay in school or higher education can be found in a large number of SFD programmes internationally. The most common approach to SFD and education is the concept of ‘no school, no play’, where students at risk or with a history of truancy are engaged in a SFD programme but their participation in the programme is contingent on their attendance and engagement at school. An example of a programme such as this is Midnight Basketball. Midnight Basketball

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began as an initiative in the United States; its aim was to provide an activity for at-risk youth in order to keep them off the streets and therefore reduce anti-social behaviour. The programme’s success in its originating country has led to it being taken up internationally, including in Australia. The programme, now operating in sites around Australia, provides a mix of sport and life skills to youth aged 12–18; in addition to having dinner and playing in basketball tournaments, participants must also attend life-skills workshops that provide education and mentoring around positive life choices (Midnight Basketball, 2011). Another recent example of SFD and education is the Australian National Rugby League’s League Bilong Laif programme (League for Life), which provided funding of $AUS3.5 million from 2013 to 2016 to help improve physical, social, literacy and maths skills for 50,000 students across 80 schools (Sherry & Schulenkorf, 2016).

PEACE AND SOCIAL COHESION Assessing the outcomes of SFD programmes and interventions is difficult, however, one of the more challenging SFD contexts to both deliver and examine are those targeting the social development outcomes of social cohesion and peace. Sport has a long history of being used as a method of engaging and reconciling disparate or conflicted communities, often illustrated by the First World War example of the British and German troops laying down their arms and playing football on Christmas Day. Research has shown that SFD can provide opportunities for individuals and communities to engage in sport with the aim to achieve conflict resolution and peace building, with the principal goals being: improvement in interpersonal engagement; reduction of intergroup conflict; and to pave the way for peaceful intergroup relations (Schulenkorf, Sugden & Sugden, 2016). Sport can also be used as a mechanism for increasing social cohesion in multicultural or diverse communities, which may not be in overt conflict, but may be experiencing isolation or discrimination (Spaaij, 2015). Similar to the process outlined above for peace-building outcomes, the aims of social cohesion SFD programmes are to increase interpersonal engagement and to provide opportunities for social interaction and the development of social support (Spaaij, 2015). The following case study provides an illustration of the use of sport for social cohesion and the importance of a sport club to the local community.

Case study: The Huddle Katherine Raw – La Trobe University ˜ÌiÀ˜>̈œ˜>Ê “ˆ}À>̈œ˜Ê ˆÃÊ >Ê ÜœÀ`܈`iÊ «…i˜œ“i˜œ˜Ê ̅>ÌÊ Vœ˜Ìˆ˜ÕiÃÊ ÌœÊ }ÀœÜÊ ˆ˜Ê ÃVœ«i]Ê Vœ“«i݈ÌÞÊ>˜`ʈ“«>V̰ʘVÀi>ÃiÃʈ˜Ê}œL>Ê“œLˆˆÌÞ]ÊV…>˜}iÃʈ˜Ê“ˆ}À>̜ÀÞÊ«>ÌÌiÀ˜ÃÊ>˜`Ê Ì…iÊÛ>ÀˆœÕÃʈ“«>VÌÃÊÕ«œ˜Ê˜>̈œ˜Ã]ÊVœ““Õ˜ˆÌˆiÃÊ>˜`Êv>“ˆˆiÃʅ>ÛiÊ>ÊVœ˜ÌÀˆLÕÌi`Ê̜ʓˆ}À>̈œ˜Ê LiVœ“ˆ˜}Ê >Ê ŽiÞÊ «ÀˆœÀˆÌÞÊ vœÀÊ Ì…iÊ ˆ˜ÌiÀ˜>̈œ˜>Ê Vœ““Õ˜ˆÌÞÊ ­1 ]Ê Óä£x®°Ê "ÛiÀÃi>ÃÊ “ˆ}À>̈œ˜Ê …>ÃÊ œ˜}Ê Õ˜`iÀ«ˆ˜˜i`Ê
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The impact of sport in society

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SUMMARY /…ˆÃÊV…>«ÌiÀʅ>Ãʈ˜ÌÀœ`ÕVi`Ê̅iʘœÌˆœ˜ÊœvÊëœÀÌÊ>˜`ʈÌÃʈ“«>VÌʜ˜ÊÜVˆiÌÞ°Ê7iʅ>ÛiÊÃii˜Ê̅>ÌÊ Ã«œÀÌʈÃÊ>ÊÜVˆ>ˆÃˆ˜}ÊvœÀViÊ̅>ÌÊ«ÀœÛˆ`iÃÊ>˜Ê>Ài˜>ÊvœÀÊi˜œÞ“i˜Ì]Ê«>À̈Vˆ«>̈œ˜]ʈ˜VÕȜ˜]Ê̅iÊ `iÛiœ«“i˜ÌʜvÊ«iÀܘ>Ê>˜`ʘ>̈œ˜>Êˆ`i˜ÌˆÌÞÊ>˜`ÊÜVˆ>ÊV…>˜}i°Ê7iʅ>ÛiʘœÌi`]ʅœÜiÛiÀ]Ê Ì…>ÌÊ«>À̈Vˆ«>̈œ˜Êˆ˜ÊëœÀÌÊ`œiÃʘœÌÊ>Õ̜“>̈V>ÞÊÀiÃՏÌʈ˜Ê«œÃˆÌˆÛiʜÕÌVœ“iÃÊ>˜`ʅ>ÛiʵÕiÃ̈œ˜i`Ê̅iÊLiˆivÊ̅>ÌÊëœÀÌʈÃʈ˜…iÀi˜ÌÞʼ}œœ`½°Ê,>̅iÀ]ÊëœÀÌʈÃÊVՏÌÕÀ>ÞÊ>˜`ÊÜVˆ>ÞÊÈÌÕ>Ìi`Ê >˜`ʈÃÊ}ˆÛi˜Ê“i>˜ˆ˜}ÊLÞʈ˜`ˆÛˆ`Õ>ÃÊ>VVœÀ`ˆ˜}Ê̜Ê̅iˆÀÊÜVˆ>]ÊVՏÌÕÀ>Ê>˜`Ê«iÀܘ>ÊiÝ«iÀˆi˜ViÃ°Ê 7iÊ …>ÛiÊ Ãii˜Ê …œÜÊ Ì…iÊ ˆ˜VÀi>Ș}Ê ˆ˜ÌiÀiÃÌÊ ˆ˜Ê ëœÀÌÊ œ˜Ê ̅iÊ «>ÀÌÊ œvÊ }œÛiÀ˜“i˜ÌÃÊ >˜`Ê ˜>̈œ˜>Ê >˜`Ê ˆ˜ÌiÀ˜>̈œ˜>Ê >}i˜VˆiÃ]Ê Ü…ˆV…Ê ÃiiŽÊ ÌœÊ …>À˜iÃÃÊ Ì…iÊ «œÜiÀÊ œvÊ Ã«œÀÌÊ ÌœÊ >V…ˆiÛiÊ ÃœVˆ>ÊœÕÌVœ“iÃ]ʅ>ÃÊv>VˆˆÌ>Ìi`Ê̅iÊiÝ«>˜Ãˆœ˜ÊœvÊëœÀÌÊvœÀÊ`iÛiœ«“i˜ÌÊ«Àœ}À>““iÃʈ˜ÊLœÌ…Ê ˜>̈œ˜>Ê >˜`Ê ˆ˜ÌiÀ˜>̈œ˜>Ê Vœ˜ÌiÝÌÃ°Ê -ÕV…Ê «Àœ}À>““ˆ˜}Ê ÃiiŽÃÊ ÌœÊ ÕÃiÊ Ã«œÀÌÊ ÌœÊ `iˆÛiÀÊ ˆviÊ iÃܘÃ]Ê «ÀœÛˆ`iÊ i`ÕV>̈œ˜Ê >˜`Ê vœÃÌiÀÊ «œÃˆÌˆÛiÊ ÃœVˆ>Ê Ài>̈œ˜Ã°Ê 7…i̅iÀÊ >ÃÊ >Ê Ã«iVÌ>̜À]Ê >Ê serious competitor or a community participant, sport forms a critical element of contemporary …Õ“>˜ÊÜVˆ>Ê>˜`ÊVՏÌÕÀ>ÊiÝ«iÀˆi˜Vi°ÊÌʈÃÊ>ÊÈÌiʜvÊÜVˆ>ˆÃ>̈œ˜]Ê>Ê}i˜iÀ>̜Àʜvʈ˜Vœ“iÊ>˜`Ê >˜Ê >Ài˜>Ê ˆ˜Ê ܅ˆV…Ê ÜiÊ V>˜Ê Vœ“iÊ Ìœ}i̅iÀÊ ÌœÊ ˜i}œÌˆ>ÌiÊ >˜`Ê Ã…>ÀiÊ œÕÀÊ ˆ`i˜ÌˆÌÞÊ >˜`Ê vœÀ}iÊ ˜>̈œ˜>Ê>˜`ʈ˜ÌiÀ˜>̈œ˜>ÊVœ˜˜iV̈œ˜Ã°

REVIEW QUESTIONS £Ê iÃVÀˆLiÊ Ãœ“iÊ œvÊ Ì…iÊ ÀœiÃÊ «>Þi`Ê LÞÊ Ã«œÀÌÊ ˆ˜Ê ÜVˆïiÃÊ >˜`Ê Vœ““Õ˜ˆÌˆiÃÊ >VÀœÃÃÊ Ì…iÊ }œLi° ÓÊ ˜Ê ޜÕÀÊ œ«ˆ˜ˆœ˜]Ê ˆÃÊ ˆÌÊ ˆ“«œÀÌ>˜ÌÊ Ì…>ÌÊ >Ê ÃiV̜ÀÃÊ œvÊ Ì…iÊ Vœ““Õ˜ˆÌÞÊ >ÀiÊ >LiÊ ÌœÊ >VViÃÃÊ Ã«œÀÌÊ>˜`Ê«…ÞÈV>Ê>V̈ۈÌÞ¶Ê7…Þ¶ ÎÊ ˆ˜`ÊiÝ>“«iÃʜvÊ}œÛiÀ˜“i˜ÌÊÃÕ««œÀÌÊvœÀÊëœÀÌÊvÀœ“ÊޜÕÀÊ̜ܘʜÀÊVˆÌÞ°Ê7ÀˆÌiÊ>ÊV>ÃiÊ study that describes the nature of the support, the intended outcomes of the support >˜`Ê̅iʜÕÌVœ“iÃʜvÊ̅iÊÃÕ««œÀ̰ʘÊޜÕÀʜ«ˆ˜ˆœ˜]Ê`ˆ`Ê̅iʜÕÌVœ“iÃʍÕÃ̈vÞÊ̅iÊ}œÛiÀ˜“i˜ÌÊiÝ«i˜`ˆÌÕÀi¶ {Ê ˆÃVÕÃÃÊܓiʜvÊ̅iÊÜ>ÞÃÊ̅>ÌÊëœÀÌʈÃÊÕÃi`ÊLÞÊ}œÛiÀ˜“i˜ÌÃÊ>˜`ʜ̅iÀʜÀ}>˜ˆÃ>̈œ˜ÃÊ ÌœÊ>V…ˆiÛiÊÜVˆ>ÊœÕÌVœ“ið xÊ ˆ˜`Ê>˜ÊiÝ>“«iʜvÊ>ÊëœÀÌÊvœÀÊ`iÛiœ«“i˜ÌÊ«Àœ}À>““iʈ˜ÊޜÕÀÊ̜ܘʜÀÊVˆÌÞ°Ê7…>ÌÊ >ÀiÊ Ì…iÊ ÃœVˆ>Ê >ˆ“ÃÊ œvÊ Ì…iÊ «Àœ}À>““iÊ >˜`Ê …œÜÊ `œÊ ޜÕÊ Ì…ˆ˜ŽÊ ̅iÞÊ Ài>ÌiÊ ÌœÊ LÀœ>`iÀÊ }œÛiÀ˜“i˜ÌÊ«œˆVÞÊ>ˆ“ö ÈÊ ˆÃVÕÃÃÊ̅iÊÜVˆ>]ʅi>Ì…]ÊiVœ˜œ“ˆVÊLi˜iwÌÃʜvÊVœ““Õ˜ˆÌÞÊëœÀÌÊ«ÀœÛˆÃˆœ˜°

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ÕÃÌÀ>ˆ>˜Ê ÕÀi>ÕÊ œvÊ-Ì>̈Ã̈VÃÊ­ `°®] Cultural diversity in Australia°Ê >˜LiÀÀ>]Ê
ÕÃÌÀ>ˆ>\Ê
ÕÃÌÀ>ˆ>˜Ê ÕÀi>ÕʜvÊ-Ì>̈Ã̈Vð
˜ÃÌi>`]Ê °ÊEÊ"½œÕ}…ˆ˜]Ê °Ê­Ó䣣®°Ê/Üi˜ÌÞÓäÊ>Ãʓi`ˆ>ÊiÛi˜Ì°ÊSport in Society, 14­£ä®]Ê£Î{äq£ÎxÇ°
ÕÃÌÀ>ˆ>˜Ê-«œÀÌÃÊ œ““ˆÃȜ˜Ê­
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24

Emma Sherry

ÕÀ`iÌÌi]Ê °Ê °Ê EÊ 7…ˆÌ>ŽiÀ]Ê ,°Ê °Ê ­Óääx®°Ê ,iÃÕÀÀiV̈˜}Ê vÀiiÊ «>ÞÊ ˆ˜Ê ޜ՘}Ê V…ˆ`Ài˜\Ê œœŽˆ˜}Ê Liޜ˜`Ê w̘iÃÃÊ >˜`Ê v>̘iÃÃÊ ÌœÊ >ÌÌi˜Ìˆœ˜]Ê >vwˆ>̈œ˜]Ê >˜`Ê >vviVÌ°Ê Archives of Pediatrics Adolescent Medicine, 159­£®]Ê{Èqxä°

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œ>ŽiÞ]Ê°Ê°]Ê>ˆ˜>˜]Ê °ÊEÊV œ˜>`]Ê °Ê­Ó䣣®°ÊSports in society: Sociological issues and controversiesʭӘ`Êi`°®°Ê œÃ̜˜]Ê
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œ>ÌiÀ]Ê°Ê­ÓääÈ®°ÊSport in-development: A monitoring and evaluation manual°Êœ˜`œ˜\Ê1Ê-«œÀÌ°

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ÊÃÞÃÌi“>̈VÊÀiۈiÜʜvÊ the psychological and social benefits of participation in sport for children and adolescents: Informing `iÛiœ«“i˜ÌʜvÊ>ÊVœ˜Vi«ÌÕ>Ê“œ`iÊœvʅi>Ì…Ê̅ÀœÕ}…ÊëœÀÌ°ÊInternational Journal of Behavioral Nutrition and Physical Activity, 10]ʙnq£Óä°

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The impact of sport in society

25

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CHAPTER 3

Organisational structure and theory of non-profit sport organisations Packianathan Chelladurai, Wirdati Mohd Radzi and Megat Ahmad Kamaluddin Megat Daud

Chapter objectives After completing this chapter you should be able to: UÊ `iÃVÀˆLiÊ̅iÊ՘ˆµÕiÊvi>ÌÕÀiÃʜvÊ>ÊëœÀÌÊ}œÛiÀ˜ˆ˜}ÊLœ`ÞÆ UÊ `ˆÃVÕÃÃÊ̅iÊ̅ÀiiÊ`ˆÃ̈˜VÌÊ`œ“>ˆ˜ÃʜvÊëœÀÌ\Êi}>ˆÌ>Àˆ>˜]ÊiˆÌiÊ>˜`Êi˜ÌiÀÌ>ˆ˜“i˜ÌÊëœÀÌÆ UÊ iÝ«>ˆ˜Ê ̅iÊ Vœ˜Vi«ÌÊ œvÊ …œÀˆâœ˜Ì>Ê >˜`Ê ÛiÀ̈V>Ê `ˆvviÀi˜Ìˆ>̈œ˜Ê œvÊ Õ˜ˆÌÃÊ ÜˆÌ…ˆ˜Ê >Ê Ã«œÀÌÊ }œÛiÀ˜ˆ˜}ÊLœ`ÞÆ UÊ ˆ`i˜ÌˆvÞÊ>˜`Ê`iÃVÀˆLiÊ>«ˆV>ÊÀi뜘ÈLˆˆÌˆiÃʜvÊ>ÊëœÀÌÊ}œÛiÀ˜ˆ˜}ÊLœ`ÞÆ UÊ `iÃVÀˆLiÊ̅iÊÜVˆ>ÊÀi뜘ÈLˆˆÌˆiÃʜvÊ>ÊëœÀÌ°

Key Terms: Domains of Sport; Institutional Subsystem; Managerial Subsystem; Technical Subsystem; Apical Responsibilities; Social Responsibilities

INTRODUCTION The label ‘non-profit sport organisation’ covers a wide variety of sport organisations, including city recreation departments, intramural and interscholastic sport departments in educational institutions, youth sport organisations and sport clubs affiliated with industries, businesses, etc. Prominent among these non-profit sport organisations are the governing bodies of various sports at the international level such as the International Basketball Federation (FIBA), at the national level such as the Badminton Association of Malaysia (BAM), at the provincial/state level such as the Ontario Volleyball Association (OVA) in Canada and at the district level such as Coimbatore Cricket Association in India, as shown in Figure 3.1. This chapter describes and delineates the functions of national sport governing bodies (NSGBs), also known as national sport organisations (NSOs). NSGBs are different from other sport organisations in terms of their purposes and processes. A governing body is defined as the group of officials who create and manage

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International sport governing bodies (e.g. FIBA)

National sport governing bodies (e.g. Badminton Association of Malaysia, BAM) Provincial/state sport governing bodies (e.g. Ontario Volleyball Association, OVA) District sport governing bodies (e.g. Coimbatore Cricket Association)

FIGURE 3.1Ê ˆiÀ>ÀV…ˆV>ÊœÀ`iÀʜvÊ}œÛiÀ˜>˜ViÊvœÀʘœ˜‡«ÀœwÌÊëœÀÌʜÀ}>˜ˆÃ>̈œ˜Ã

the rules that govern the activities and conduct of an organisation, in this case a sport organisation, and who ensure that the rules are followed. Thus, a sport governing body is a sport organisation that has a regulatory or sanctioning function over its terrain composed of (1) the sport it is concerned with, and (2) individuals, groups and units affiliated with it. This particular attribute of an NSGB sets it apart from other organisations in the following ways (Chelladurai & Zintz, 2015).

NSGB COMPARED TO A STATE First, an NSGB resembles a state. There are four kinds of social orders or the institutional rule systems that govern how individuals and collectives pursue their self-interests: the community where one’s self-interests are made subordinate to the collective interest; the market where individuals and organisations in a market pursue their own self-interest and compete with others in the market; the state where individuals delegate the pursuit of their self-interest to the collective power of the state, and authorise it to pursue such a common interest even with force, if necessary; and the association, which is similar to a state in that it also pursues common interests of its members but does not have the same kind of power as a state (Schneider & Grote, 2006). Thus, the sport governing body as an association of its members resembles the state. And the NSGB resembles a federal state where the member units select their representatives to the national association, which is given the authority to govern their activities keeping in focus the needs of both the members and the national association.

Organisational structure and theory

29

Community

Associations

Selfinterests

Market

State

FIGURE 3.2Ê -œVˆ>ÊœÀ`iÀʈ˜ÊëœÀÌÊ}œÛiÀ˜>˜Vi

In fact, an NSGB performs state-like functions (Chelladurai & Zintz, 2015). It represents the nation in international forums. It displays the name of its country on all its team jerseys. It carries the national flag and displays it as often as necessary. The name of the country is displayed in all critical functions and events. The national anthem is played at the victory ceremonies where its own athletes are involved. Just like a nation issuing passports to travel abroad, the NSGB certifies individual athletes to participate in specific events. Typically, a country is governed at the national level (federal or central government), at the provincial level (state or provincial government) and the regional level (regional or district government). In a similar manner, a sport within a country is governed by the NSGB at the national level, the provincial sport governing body (PSGB) at provincial level, also known as the regional sport organisation (RSO), and the district governing body (DSGB) at the district level.

NSGB AS A MONOPOLY AND MONOPSONY A unique attribute of an NSGB is that it is both a monopoly, because no other entity has any control or power over the affairs of the sport in question within the national borders, and at the same time it is a monopsony, because it is the only buyer of the talent produced by member organisations in that the selection of the national teams is solely in the hands of the NSGB (Chelladurai & Zintz, 2015). When we say that an NSGB is a monopoly, it does not mean that individuals cannot participate in the sport. It is conceivable that groups of individuals can play a sport without reference to the NSGB or its affiliates. This happens often in municipal parks and school playgrounds. However, the NSGB is the sole authority authorised by the international sport governing body to promote and

30Ê Ê *>VŽˆ>˜>̅>˜Ê …i>`ÕÀ>ˆÊiÌÊ>°

control the sport within the national borders, organise various tournaments within the country, ensure that the rules of the sport and those of the international federation are followed, take punitive actions against those who break those rules, select national teams for international competitions and represent the country in international forums. It is a monopsony in the sense that those who have excelled in that sport can display their excellence only as part of teams selected by the NSGB or its affiliates at the provincial or district levels and in the competitions organised by the NSGB. Even more striking is the fact that such excellent sportspersons can participate in international competitions only as members of the national teams selected by the NSGB. For example, in the case of Harry Reynolds, the American track athlete who failed a random doping test in the early 1990s, plainly highlights the struggle between an athlete and the NSGB (in this case The Athletic Congress or TAC) that was bound by the regulations of its international federation, the International Amateur Athletic Federation (IAAF ). What is clear from the case is that international federations and its NSGBs practise monopsony in that they consider only their rules and decision making process to be important and, above all, relevant to manage the affairs of their operations, even when it is sometimes in conflict with other matters within their sport environment (McArdle, 2003).

MANAGING THE SPORT It was noted earlier that the NSGB has jurisdiction over the sport it governs and the regional organisations that are affiliated with the national body. Let us focus on the sport first. We begin with the premise that an organisation is a social system recognised and sustained by society because the attainment of stated goals by the organisation is expected to serve society in specific ways (Parsons, 1960). The businesses claim to serve society by providing quality goods and services at lower prices. Non-profits also claim to serve society by providing goods and/or services to specific segments of society who are in need of them. The existence of the NSGB is sanctioned and sustained by society because the goals of the NSGB as stated in its mission and vision statements are expected to benefit society. In fact, the registration of the NSGB with the government is a legal contract. Thus, the NSGB’s primary social responsibility is to serve society by attaining their stated goals of promoting and developing its sport within the rules and regulations set by society (Chelladurai, 2016). Any sport is manifested in three different spheres. Calling these egalitarian sport, elite sport and entertainment sport, Chelladurai (2012) clarified the distinctions between them as follows. Egalitarian sport, variously called mass or participant sport, is fundamentally a gregarious activity engaged in for the pleasure derived from that activity. Egalitarian sport includes everyone irrespective of their ability. It is an inclusionary process with the motto ‘the more the merrier’. But elite sport is restricted to persons of high ability with a determination to excel in the activity. It is characterised by high dedication, huge sacrifices and extraordinary effort over a long time. Thus, in contrast to egalitarian sport, elite sport is a serious business requiring great deal of planning for deliberate practice and progressively challenging competitions. It is an exclusionary process wherein those who do not meet the standards are eliminated at successive levels leaving only the best at the top.

Organisational structure and theory

Elite sport

Entertainment sport

Pursuit of excellence

Spectating

31

Egalitarian sport Pursuit of pleasure

FIGURE 3.3

The Three Es (3Es) of sport participation (adapted from Chelladurai, 2012)

The third segment of the sport industry is entertainment sport. The popularity of a sport is the basis for the entertainment value of that sport. The more popular a sport is, the more attractive it is to watch it being played. Further, the more highly skilled the contestants are, the more appealing it is to watch the contest. It is not surprising that sport organisations have capitalised on this opportunity to commercialise the entertainment value of their respective sports. The major characteristic that distinguishes between the three manifestations or segments is the differing purposes of engagement in sport. People engage in egalitarian sport for the pleasures residing in the activity; participants in elite sports are seeking excellence in that activity; and those who engage in entertainment sport are of two kinds: (1) spectators or the fans who flock to see excellence in competition and (2) those contestants who provide the entertainment. The description of the purposes of these enterprises in terms of who engages in it is one way of saying who the clients of these ventures are. They are the general public in egalitarian sport, the few talented individuals in elite sport and the paying public in entertainment sport. We should also note that in some cases people may not have to pay to watch excellence in action, as, for example, in the case of television viewers. It should also be noted that somebody else is paying to facilitate the television viewing, that is, the sponsors and the advertisers. The three segments can also be contrasted on the basis of the environment they interact with and the opportunities and threats therein. The local community, government, social

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clubs and the local educational institutions constitute the environment for egalitarian sport while the environment of elite sport extends to regional and national governments and sport governing bodies and other competing units. For entertainment sport, while the paying public are mostly from the local community, the franchise (or team) interacts with other teams located in far-off places as well as with sponsors, advertisers and media agencies. Given these differing purposes, the processes of producing the relevant services and the structural arrangements need to be differentiated from one another. Differentiation occurs when an organization is divided into units according to environmental exigencies, and those units are then staffed with people of the appropriate aptitude and skills. Note that the concept of differentiation is not identical to the concept of departmentalization . . . Because each unit is required to interact with different segments of the environment (and these segments differ in terms of certainty, feedback, and rate of change), each organizational unit must be organized differently to enable it to cope with the particular subenvironment and its requirements. A further necessary condition for differentiation is that the members of a unit possess those specific talents and aptitudes that match the demands of the environment. (Chelladurai, 2014, p. 202) It must be recognised that smaller NSGBs may not have the luxury of creating different units for each domain of its sport. But the fundamental argument that the three domains of sport need to be managed differently based on the task requirements of each and the environmental contingencies faced by each is valid even in smaller organisations.

VERTICAL DIFFERENTIATION The above discussion of differentiation dealt with three different organisational units that were horizontally distributed within an NSGB, each dealing with one of egalitarian, elite and entertainment sport. There is an equally important aspect of differentiation of the units that are hierarchically organised with specific functions attached to each one of them. In a typical NSGB, the board of directors (the board for short) is located at the top of the hierarchy. The board’s function is to set the mission and goals for the organisation and to ensure that the processes for achieving the stated goals are implemented properly by the set of managers next in the hierarchical line. Below the board, we find the Chief Executive Officer (CEO) and his or her immediate assistants who are all involved in implementing the strategy approved by the board and supervise the activities of those below them at the operational level, who are, in fact, the providers of the services associated with each domain. Adopting Thompson (1967) and Parsons (1960), Chelladurai (1987, 2014) conceives of these three levels as the institutional, managerial and technical subsystems of an organisation, as shown in Figure 3.4. The technical subsystem is the unit(s) concerned with producing the services associated with each of the domains of sport (i.e. egalitarian, elite and entertainment sport).

Organisational structure and theory

33

Distal environment

Institutional subsystem

Managerial subsystem Technical subsystem Egalitarian sport Elite sport Entertainment sport

Proximal (task) environment FIGURE 3.4Ê Ê6iÀ̈V>ÞÊ

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The nature of the services provided in each domain and the processes thereof define its fundamental requirements. At the next level, we have the managerial subsystem, which has the dual responsibility of both administering the technical system and serving it. In administering the technical unit, the managerial unit ensures that the appropriate processes in providing quality services are adequately followed and that they abide by legal and ethical requirements. In addition, the responsibility of the managerial system is also to ensure that the technical system has the right personnel, enough financial resources, facilities, etc. to carry out the production of services effectively and efficiently. In other words, the managerial system acts as a buffer between the technical system and the environmental turbulences. Finally, the institutional subsystem at the top of this hierarchy sets the objectives and policies of the organisation, recruits and hires the top managers, ensure that these managers execute the policy effectively and interact with the distal environment to legitimise the organisation in order to secure governmental and societal support for the organisation. One line of research undertaken to understand and help the performance of sport governing bodies focuses on the boards of those organisations. A sample of the topics covered include cohesion (Doherty & Carron, 2003), role ambiguity (Sakires, Doherty, Misener, 2009; Doherty & Hoye, 2011), ethics (Henry & Lee, 2004), strategic capability (Ferkins & Shilbury, 2010, 2012), board performance (Ferkins, McDonald & Shilbury,

34Ê Ê *>VŽˆ>˜>̅>˜Ê …i>`ÕÀ>ˆÊiÌÊ>°

2010), intragroup conflict (Hamm-Kerwin & Doherty, 2010), leadership (Hoye, 2004, 2006) and board power (Hoye & Cuskelly, 2003b). Of the above topics, the topic of board capability has been vigorously pursued by Ferkins and her associates (e.g. Ferkins, McDonald & Shilbury, 2010; Ferkins & Shilbury, 2010, 2012; Shilbury & Ferkins, 2011). In the most recent publication, Ferkins and Shilbury (2015) define board strategic capability as ‘the ability of the board to function strategically’, which also ‘involves processes of environmental analysis, strategic thinking and decision-making, as well as the design, enactment, and monitoring of strategic priorities’ (p. 490). More significantly, they identified six central factors of board strategic capability, which are: s s s s

s s

increasing contribution of volunteer board members, including their will to engage in and their skill to execute board functions; board operational knowledge, referring to board member’s understanding of and insights into the operational details of their organisation; board integrating regional entities, denoting the board’s recognition of regional entities and involving them in a collaborative governing process; board maintenance of the monitoring and control function, highlighting the importance of the board evaluating the outcomes and holding the CEO accountable for those outcomes; board co-leading strategy development, which emphasises the significance of the board including the CEO in strategy formulation; board co-leading the integration of strategy into board processes, which refers to the extension of the collaboration into board–CEO shared leadership.

In proposing their theory of Board Strategic Balance, Ferkins and Shilbury argue that board strategic capability: might be further maximised by the board’s ability to balance (and hence understand the relationship between each component) all of the contributing components, to manage the tensions between them, to acknowledge the paradoxes, and pay attention to each in order to achieve optimum strategic capability. (2015, p. 497) It makes eminent sense that the board should be involved in collaborating with the CEO and member units in setting the strategy and formulating the policy thereof and overseeing the implementation of such policy. It is also logical that the board members need to be knowledgeable in the operational procedures of their respective organisations for them to be able to oversee those operations. However, it does not mean that the board should be involved in supervising the dayto-day operations. The governing body must govern; that is, it must provide leadership and strategy and must focus on the ‘big picture’. Governance is about planning the framework for work and ensuring it is done. As such, it is distinct from management (organising the work) and operations (doing the work). As far as possible,

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the governing body should therefore steer clear from making managerial decisions and getting involved in the day-to-day implementation of strategy. (www.wheel.ie/content/management-vs-governance) While the distinctions among the three subsystems have been articulated by others (e.g. Thompson, 1967), Parson’s thrust is unique because he emphasised that there should be a clear break in the simple continuity of the authority structure among them (i.e. between the institutional and managerial subsystems, and between the managerial and technical subsystems). The organisational design should be such that one subsystem does not interfere with the functioning of the other two subsystems. That is, ‘the institutionalization of these relations must typically take a form where the relative independence of each is protected’ (Parsons, 1960, p. 69). Chelladurai (2014) notes that this Parsonian perspective is widely practised in the management of intercollegiate athletics in the United States. While the board of governors of the university (i.e. the institutional subsystem) has considerable power over its athletic department in terms of hiring and firing the athletic director and the coaches, it does not engage in the internal affairs of the department, which is the responsibility of the athletic director and his or her assistants (i.e. the managerial subsystem). By the same token, the managerial subsystem does not interfere in the coaching of the teams (the technical subsystem). In addition, the managerial subsystem resists any attempt by the board or its members to engage in the internal affairs of the technical core, that is, in how the coaches coach their respective teams.

MANAGING THE SUBUNITS Now to the issue of managing the national sport organisation and its regional affiliates. The International Olympic Committee (2014), the Australian Sports Commission (2012) and the European Union (2013) have all articulated several principles of good governance to be followed by sport organisations in general and sport governing bodies in particular. For instance, the IOC advanced the following basic universal principles of good governance to be respected by all Olympic constituents: s s

s s s s s s

TRANSPARENCYOFTHERULESCLEARTEXTSMUSTEXISTANDBEACCESSIBLEANDCIRCULATED lNANCIAL TRANSPARENCY IN PARTICULAR lNANCIAL COMMITMENTS TENDER PROCESS DISCLOsure of financial information, accounts in accordance with generally accepted accounting principles, audit by a qualified, independent entity; TRANSPARENCYOFMANAGEMENTAGENDADOCUMENTATION  TRANSPARENCYOFMANAGERSJOBDESCRIPTIONS OBJECTIVECRITERIAFORRECRUITMENT  TRANSPARENCYOFRISKMANAGEMENT EFlCIENTINTERNALCOMMUNICATION SHARE RESPONSIBILITY CLEAR TEXT ON THE RESPECTIVE RESPONSIBILITIES POLITICALMANAGEment decisions); CONTROLLED RESPONSIBILITIES CLEAR AND REGULAR REPORTING FROM ELECTED AND APPOINTED office holders;

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s s s

REGULARANDLEGITIMATEELECTIONS RIGHTTOAPPEALABOUTALLFORMSOFDISCIPLINARYMEASURES RESPECTOFMINORITIESRESPECTOFTHERIGHTOFEXPRESSIONFREEDOMOFSPEECH 

The above and other documents on good governance have clearly articulated how all of the activities of a sport governing body should be carried out. They all stress that managers of sport governing bodies need to be competent, accountable, ethical, democratic, inclusive, harmonious, transparent and so on. However, they do not address the issue of ‘what’ the NSGBs should be doing. Chelladurai (2006) and Chelladurai and Zintz (2015) have offered a scheme of what the NSGB responsibilities are based on a consideration of the NSGB as the apex of an inter-organisational network consisting of member organisations and as arising from its corporate social responsibility.

APICAL RESPONSIBILITIES OF AN NSGB Based on earlier work on inter-organisational networks (e.g. Human & Provan, 1997; Provan, 1983; Provan & Kenis, 2007; Van Gils, 1998), Chelladurai (2006) and Chelladurai and Zintz (2015) noted that the NSGB has specific functions imposed on it because it is at the apex of an inter-organisational network consisting of state or provincial sport governing bodies. The list of the apical functions they identified include the following.

Governing member organisations The primary task of the NSGB is to govern the member organisations as per its constitution approved by the general body. By the same token, the NSGB should ensure that the member units also follow their respective constitutions and abide by the rules and regulations of the parent body, the National Olympic Committee (NOC) and the government agencies.

Guarding democracy in the NSGB The NSGB should maintain and sustain the integrity of the democratic processes in its own affairs and those of the member units. As a corollary, the NSGB should also ensure equal representation and equal rights of participation of all member units. Finally, to ensure the democratic process, the NSGB should facilitate free exchange of all relevant information among all participants in the network.

Fostering cooperation and collaboration among member units The NSGB should also facilitate pleasant and productive interactions among member organisations for better coordination of interdependent activities among member organisations and foster cooperation among them such that there is free flow of information and sharing of knowledge and reductions in uncertainty in transactions among member organisations (Kraatz, 1998; Park, 1996; Provan, 1983).

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Creating trust The NSGB has to cultivate the trust between itself and the other NSGBs, which is fundamental for member organisations to follow the lead of the NSGB (Provan & Kenis, 2007). By the same token, the NSGB needs to create the trust between itself and the government agencies and sponsoring entities that are major sources of resources.

Generation and sharing of revenues Just like any other organisation, the NSGB should engage in generating monetary resources through sponsorships, TV contracts, donations, government subsidies and licensing and ticketing to ensure its own survival and prosperity. In addition, its apical responsibility would dictate that it shares such resources with member organisations.

Enhancing member capacity to generate funds Another apical responsibility of the NSGB would be to facilitate member organisations to generate their own resources by educating them on the dynamics of securing sponsorships, TV contracts, donations and government funds (Provan & Milward, 2001).

Facilitating effective management of member organisations The NSGB should also attempt to improve the management of the finances of member organisations by passing on its own expertise and arranging seminars and other meetings where experts can teach the members of provincial or regional organisations (Human & Provan, 1997).

Managing diversity NSGBs should take steps to increase the number of women and members of ethnic minorities in its managerial and coaching ranks at the national and regional levels. As managing sport becomes more mainstream, the importance of consideration of the uniqueness and diversity of members of the NSGB becomes more apparent than ever. Managing sport in a multiethnic society of today has become a specialised skill (Megat Daud & Radzi, 2012). It is fundamental that every NSGB tries to popularise its own sport. With increasing popularity of the sport, there will be greater flow of resources.

Protecting the image of the sport Another significant responsibility for the NSGB is to project and protect the image of the sport by ensuring ethical conduct by all involved in the sport. It would necessitate preventive measures that would include educational programmes highlighting the harmful effects of any illicit behaviours (e.g. gambling and doping).

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Developing new products The NSGB, in its attempt to popularise its sport, may attempt to create new forms of its sport (e.g. Twenty20 cricket, futsal, beach volleyball), and organise new formats of competitions for age groups in both genders and across various regions of the country.

Guiding pursuit of excellence To meet the goal of producing excellent athletes, the NSGB should focus on (1) identifying athletic talent, (2) providing expert coaching and scientific support, (3) conducting regional, national and international competitions, and (4) preparing the teams for international competitions. A significant component of this function is the training and certification of coaches and officials. More importantly, the NSGB would endeavour to instil in everyone the virtues of achieving excellence through personal determination, sacrifice and deliberate practice.

Athlete welfare The national team athletes are among the most significant stakeholder group, and thus attending to their welfare is among the most important priorities for the NSGB. The NSGB needs to institute and carry out effective programmes to counsel and guide the athletes. The NSGB should also take efforts to mobilise and supplement the resources of their member organisations to attend to the welfare of the athletes under their charge.

Leadership The NSGB should avoid being content with addressing minor issues that have consensus and setting aside major issues that are contested. The NSGB has to move beyond this stagnant approach and take on the leadership role in defining new priorities with an action plan, articulating clear policy platforms and taking credible positions. The NSGB needs to show the member organisations new ways of thinking and doing things. There is yet another perspective on the NSGB that provides an insight into what the NSGB should be doing, i.e. the social responsibilities of the NSGB.

CORPORATE SOCIAL RESPONSIBILITY Goal attainment as the primary social responsibility Friedman (1970, p. 126) claimed that there is one and only one social responsibility of a business – to use its resources and engage in activities designed to increase its profits so long it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud. Carroll (1979, 1983) identified four dominant responsibilities of a business: (1) economic responsibility, meaning that the business must make profit; (2) legal responsibility to

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abide by the laws of the land; (3) ethical responsibility, where the business abides by the norms of society that are not covered in the law; and (4) discretionary responsibility, referring to voluntary activities to benefit society. Both of these authors considered that the primary and superseding responsibility of a business is of an economic nature, followed by its legal responsibility. The basis for this categorical statement is that businesses are set up to make profits and thus their primary responsibility is to make profits for the owners. Extending the above thinking, Chelladurai (2016) posits that the fundamental responsibility of any organisation (business or otherwise; profit or non-profit) is to achieve its stated goals because it is established and managed only to achieve its stated goals. It is one thing to say that an organisation’s responsibility is to achieve its goals but it is another to say that it is its social responsibility. For this assertion, an organisation needs to be viewed from the societal perspective. An organisation is a social system recognised and sustained by society because the attainment of stated goals by the organisation is expected to serve society in specific ways (Parsons, 1960). Non-profits also claim to serve society by providing goods and/or services to specific segments of society that are in need of them. The existence of the NSGB is sanctioned and sustained by society because the goals of the NSGB as stated in its mission and vision statements are expected to benefit society. In fact, the registration of the NSGB with the government is a legal contract. Thus, the NSGB’s primary social responsibility is to serve society by attaining their stated goals within the rules and regulations set by society.

Not harming others as a social responsibility All organisations, including non-profit organisations, can legitimise themselves only by adhering to the laws and norms of society. Obviously, the laws, rules and norms of society are aimed at promoting the common good. The flip side of this view is that the function of law is to prevent one from harming others (Bastiat, 1848). Bastiat (1848) noted that the law is to prevent injustice and not to promote justice. This notion is upheld in modern tort law, which does not impose duties upon people to affirmatively do the right and just thing but imposes the duty not to act unreasonably and hurt someone (e.g. the Reasonable Person Standard Test). The essence of the laws and rules, then, is that organisations (profit or non-profit) shall not harm others in the process of attempting to achieve their respective goals. Thus, the second key responsibility of all organisations should be ‘not to harm others’. The United Nations (2010) compact for businesses has a set of prescriptions on what they should do, and an equally strong set of proscriptions on what they should not do. And these prescriptions zero in on not harming others. Campbell (2007) was emphatic in asserting the notion of ‘no harm done’ as the only essential feature of corporate social responsibility when he stated: ‘I view corporations as acting in socially responsible ways if . . . they must not knowingly do anything that could harm their stakeholders – notably, their investors, employees, customers, suppliers, or the local community within which they operate’ (p. 951). There is a recent report by NBC that artificial turf used for soccer may cause cancer (www.nbcnews.com/news/investigations/how-safe-artificial-turf-yourchild-plays-n2201660). If that is true, then all sport organisations that use artificial turf are causing harm to their clients by exposing them to a cancer-causing environment. In a

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similar manner, use of cheap and faulty equipment in any of the sport’s operations can result in harm to their clients. When a national team member is selected because of who he or she is, we are hurting another person who deserves to be on the team.

Deception and fraud When Friedman emphasised that pursuit of profits should be without deception or fraud, he must have thought of false advertising and claiming superior qualities for a product or a service. The markets around the world are full of products and services that do not meet the original billing. It is astounding that Volkswagen has been deliberately cheating the government and its consumers for so long. These issues of deception and fraud are not limited to business and industries. Even non-profits may engage in deception and fraud. The current turmoil over the extensive corruption within FIFA is a result of the deception and fraud practised by some of the senior administrators and board members. Any time an NSGB permits or encourages the use of performance enhancing drugs or modifies the birth records of its junior players, it is engaged in deception and fraud.

Rectification as a social responsibility It is conceivable that despite the best intentions and efforts behind an organisational activity, it may occasionally result in harm to others (e.g. workers, clients and external stakeholders). In these cases, an equally important social responsibility of the concerned organisation is to immediately contain the harm, make amends for the harm done and ensure that such mishaps will not occur again. Thus rectification becomes an equally important social responsibility of organisations. A very good example of rectifying a mistake occurred immediately after the 2011 Super Bowl in Dallas. The 400 ticketholders who could not be accommodated within the stadium were given $5,000 each and were promised a ticket for the 2012 Super Bowl. The instant replay in sport competitions is another instance of rectifying mistakes immediately. To sum up, the three primary social responsibilities of a sport organisation should be: 1 2 3

instituting and following rational and open structures and processes for the attainment of its stated goals; ensuring that organisational activities in the pursuit of its goals do not harm anyone (individuals, groups, units or organisations); rectifying mistakes that harm others and making amends for the harm done.

In the final analysis, the effectiveness of an NSGB is contingent on how well it carries out the functions mandated by its strategic position as the apex of an inter-organisational network and how well it discharges its social responsibilities.

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°Ê ­Óä£ä®°Ê ˜ÌÀ>}ÀœÕ«Ê Vœ˜yˆVÌÊ ˆ˜Ê ˜œ˜«ÀœwÌÊ Ã«œÀÌÊ Lœ>À`Ã°Ê Journal of Sport Management, 24]ÊÓ{xqÓÇ£° i˜ÀÞ]Ê°ÊEÊii]Ê*°Ê °Ê­Óää{®°ÊœÛiÀ˜>˜ViÊ>˜`Êi̅ˆVÃʈ˜ÊëœÀÌ°Ê˜Ê°Ê iiV…ÊEÊ-°Ê …>`܈VŽÊ­ `î]ÊThe business of sport managementÊ­««°ÊÓxq{£®°Ê>ÀœÜ\Ê*i>ÀÜ˜Ê `ÕV>̈œ˜° œÞi]Ê ,°Ê ­Óää{®°Ê i>`iÀq“i“LiÀÊ iÝV…>˜}iÃÊ >˜`Ê Lœ>À`Ê «iÀvœÀ“>˜ViÊ œvÊ ÛœÕ˜Ì>ÀÞÊ Ã«œÀÌÊ œÀ}>˜ˆÃ>̈œ˜Ã°Ê Nonprofit Management & Leadership, 15]ÊxxqÇä° œÞi]Ê ,°Ê ­ÓääÈ®°Ê i>`iÀň«Ê ܈̅ˆ˜Ê
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Organisational structure and theory

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CHAPTER 4

Professional sport Paul Turner

Chapter objectives After completing this chapter you should be able to: UÊ `iw˜iÊ܅>ÌʈÃʓi>˜ÌÊLÞÊ«ÀœviÃȜ˜>ÊëœÀÌÆ UÊ `iÃVÀˆLiÊ̅iʎiÞʈ˜ÌiÀ˜>Ê>˜`ÊiÝÌiÀ˜>ÊÃÌ>Ži…œ`iÀÃÊ>ÃÜVˆ>Ìi`Ê܈̅ʫÀœviÃȜ˜>ÊëœÀÌÆ UÊ ˆ`i˜ÌˆvÞÊ̅iÊ՘ˆµÕiʈ˜ÌiÀiÃÌÃÊ̅iʈ˜ÌiÀ˜>Ê>˜`ÊiÝÌiÀ˜>ÊÃÌ>Ži…œ`iÀÃʅ>ÛiÊ܈̅ʫÀœviÃȜ˜>Ê ëœÀÌÆ UÊ Õ˜`iÀÃÌ>˜`Ê̅iÊ՘ˆµÕiÊVœ˜ÌiÝÌÊ«ÀœviÃȜ˜>ÊëœÀÌʅ>ÃÊ܈̅ʈÌÃÊÃÌ>Ži…œ`iÀð

Key Terms: Professional; Stakeholder; Athletes; Sport Organisations; Sport Context

INTRODUCTION Professional sport generates significant revenues and has a profound impact on the lives of billions of people (Szymanski & Kuypers, 1999). Smith and Stewart (2010) highlight that the entities within the professional sport environment seek to maximise outcomes through winning trophies; simultaneously cooperating via shared revenue streams while at the same time competing with rival clubs and channelling the passion from athletes (employees) and fans (customers). Professional sport must continue to commercialise, commodify and increase its market share in order to survive the competitive landscape, but it must do this while retaining what is essential and attractive to its core constituency. This core is represented by highly passionate and motivated fans who see on-field success as being paramount to the existence of the sport. Attention on achieving a balance between winning and on-field success, and revenue and profitability, is a crucial decision in contributing to success in professional sport (Smith & Stewart, 2010). This chapter identifies the unique features of professional sport and some of its dimensions through an emphasis on four internally oriented and four externally oriented stakeholder contributions. The internal stakeholders are represented by athletes, clubs, leagues and governing bodies (international federations/national governing bodies) that impact on professional sport. The external stakeholders are represented by the fans, community,

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media and corporate interests that impact on professional sport. The desire for professional sport to retain its foundations of connecting with its core constituencies, while also ensuring solid business practices, introduces the professional sportscape as a context identified here. While these internal and external stakeholders are not the sole domain of the professional sport contribution, they are sufficiently representative to warrant attention. Figure 4.1 provides an overview of the stakeholder dimensions that fit within the professional sportscape.

INTERNAL STAKEHOLDERS Simplistically, professional sport can be defined as the delivery of sport for which athletes receive payment. This payment will usually be in the form of a salary to the athlete that reflects income for work undertaken. While this simplistic approach to defining professional sport acknowledges the ‘job of an athlete’, there is much more to the internal stakeholder contribution than just the athlete. The conduct of sport and resulting employment of athletes is often through the clubs or the governing bodies, which in turn depend on a league structure being in place to fixture ongoing competitions. This competition may be presented in the form of a regular league format (such as the English Premier League (EPL)) or a cyclical event format provided through major events organised by the governing body (or associated entity) responsible for the sport, such as the Formula One Grand Prix event circuit. Each internal stakeholder group is identified and examined in turn.

ATHLETES Athletes play an integral role in the delivery of professional sport. Smith and Stewart (2010) indicated that professional athletes are essentially business assets who are instrumental in attracting supporters, sponsors and media exposure. These athletes have strong public support and corporate affiliations, often attain hero status and attract enormous crowds.

Fans/supporters

Athletes

External stakeholders

Internal stakeholders

Community

League

Professional sport

Governing bodies

Media

FIGURE 4.1

Clubs

Corporations

The professional sportscape

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At the professional level, the career of an athlete can be quite lucrative. National Basketball Association (NBA) athletes have been reported as being the highest paid athletes in the world, with an average player reportedly earning US$4.6 million in the 2014–2015 season. The advantage NBA players have is that this average reflects their smaller roster than other sports, such as the National Football League (NFL). The NBA involves 448 athletes who share in US$2.1 billion in collective salaries, compared to the 1,648 athletes in the NFL who share a total of US$3.6 billion, an average salary of just US$2.1 million (Gaines, 2015). This average is not shared evenly across every player in these respective leagues, but it does highlight the potential rewards that are on offer to those who can achieve at the elite level. Contrary to the high-end salary opportunities, salary.com (2016) identified the actual average salary a professional athlete earns, reporting that the ‘median annual Professional Athlete salary is $US32,349 as at March 2016’ (salary.com, 2016). This salary result can vary widely depending on many factors, relating to the sport undertaken and the level at which it occurs. An example of the salary effect is that a Minor League baseballer can earn as little as US$3,000 per season, in a job requiring seven day a week availability and extensive bus travel across the country (Grossman, 2016). Equally in tennis, professional tennis players earn prize money per round at each event they play. Excluding any personal sponsorship deals a player may have, while Novak Djokovic won more than US$14 million in 2014 as the sport’s highest earner, Lukas Zvikas featured at the bottom of the ATP earnings list with US$36 in winnings for playing doubles (Grossman, 2016). While that final total of $36 may be an aberration rather than the rule, it is clear that those who fall outside the top tier of professional athletes may not necessarily obtain lucrative financial rewards (Grossman, 2016). This emphasis on the earning potential of professional athletes does not even consider the salary divide between men’s and women’s professional sport. Alongside this potentially enormous earning capacity, one of the unique features of sport identified by Smith and Stewart (2010) is that athletes are subjected to a level of adulation and interest that can border on excessive. Every on-field athletic action is broken down for review, analysed and commented upon by the media. While the on-field analysis is an expected part of the daily news report, an athlete’s life off the field is also considered to be open to public scrutiny. Athletes can be required to uphold public standards that would not normally be accepted in other spheres of business or life (Smith & Stewart, 2010). Professional athletes’ lives can achieve celebrity status, and every move they make is followed and dissected by the fans, the league and the club. Every misdemeanour or deviant action is reported on and presented for public consumption. An athlete is considered to be a role model, subjected to sanctions or interventions if they deviate from ‘good’ behaviours. Athletes are discouraged from engaging in behaviours that will upset or affect corporate supporters or the fans. At the same time that an athlete retains enormous earning capacity and bargaining power, the behavioural expectations placed upon them by a range of stakeholders are significant.

LEAGUES Professional sport leagues provide structured competitions for teams to engage in, with organised seasons of play, a unitary set of playing rules and the capacity for spectator

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interest and league and team profitability. A combination of cooperation and competition between clubs is required to ensure that the most efficient and effective outcomes are achieved (Turner, 2012). Cooperating, while at the same time competing, presents a relationship of reliance, alongside the need for continued on- and off-field success for each team. This relationship encourages teams to provide support for their opponents, while at the same time being in competition to beat them. In most industries, organisations would not be permitted to operate in this way (Turner, 2012). Szymanski and Kuypers (1999) highlight that this creates somewhat of a paradox for sport. Clubs must compete in a hostile environment against numerous, aggressive rivals, while at the same time cooperating with these rivals to the degree necessary to benefit the entire group. Sport leagues, particularly outside of those responsible for Association football, largely resort to behaving like a cartel in order to restrict any one team from dominating the competition. The reason behind this is to facilitate sufficient revenue and profits for all members of the league or competition, while ensuring that each team retains a chance to be the winner in any one season. The cartel-like practices employed by leagues include collective agreements across: salary levels; player recruitment and drafting; admission pricing; game scheduling; income distribution; and broadcasting arrangements (Smith & Stewart, 2010). The major sport leagues in the world generate billions of dollars annually, as sponsors, media and fans flock to the events, which in turn attracts huge corporate interest, and this commodification of professional sport ensures that leagues continue to be big business (Mason, 1999). Professional sport leagues can be represented in a number of ways, in terms of how they are structured and who is responsible for them. Cricket Australia (the national governing body (NGB) for the sport) conducts its Sheffield Shield competition, the EPL displays many of the features of an oligarchy with its billionaire club owners, while boxing identifies strongly with a promotor-led sport structure (Smith & Stewart, 2010). While the governance or structure of professional sport can be classified in different ways, many leagues display mixed versions of these structures. A sport such as motor racing displays cartel, oligarchy and promotor-led elements throughout the whole of its set-up. Additionally, these leagues may be formed to provide a series of events or a structured set of fixtures across a season. Competitions in North American sport leagues have essentially been formed as closed leagues, with each club representing a franchise. Leagues in Australia adopt a similar model to the North American system, restricting new entrants and premised on licences being applied to the respective club franchises. Across Europe the leagues formed are open leagues with promotion and relegation, which ensures that clubs seek to strengthen their squads in order to avoid the threat of relegation, while the possibility of promotion encourages teams in lower divisions to do likewise. It can be argued that promotion and relegation battles ensure greater fan interest as more games actually matter with teams being in contention for the championship or, alternatively, relegation (Sloane, 2007).

CLUBS The organisational model of sport was originally formed around independent clubs, within associations and federations established around predominantly amateur, non-profit

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principles (Szymanski, 2009). While the non-profit emphasis has largely been retained for professional sport organisations around the world, the emergence of professional sport has connected with commercialisation, globalisation and increasing interests. Estimates now place the world’s 50 most valuable sport teams as being worth on average US$1.75 billion each. Real Madrid ranks number one with a valuation of US$3.26 billion, followed closely by the Dallas Cowboys and New York Yankees with a value of $3.2 billion each. The worth of teams within this top 50 has increased from a minimum valuation of US$856 million in 2013 to $1.15 billion in 2014. Within the top 50 there are 22 baseball (ranked 12) and basketball (ranked 10) franchises, with the NFL having 20 franchises and football (soccer) seven. In total 62 sport franchises globally are worth at least US$1 billion (Badenhausen, 2015). The value of these professional clubs clearly classifies them as large business entities. While clubs can be considered significant businesses in their own right, their ownership and structures may differ between specific sports, leagues and countries. In Australia most clubs operate within a licensed league format and are recognised as non-profit entities where revenues are diverted back into the sport. The Australian approach also relies on a volunteer board of directors implementing the policy and direction supported through strong membership from supporters. This is in contrast to the North American model of club ownership where high profile businesses or individuals, including family trusts, own most of the professional teams. European football has a mix of fan ownership, business ownership and even clubs that are listed on the stock exchange and publicly traded. Whatever the ownership model of clubs, and notwithstanding their economic value in a business context whereby they can be traded or sold for profit, the importance of professional sport clubs in their communities is significant. Fans still display an overwhelming emotional connection and allegiance to their club that many other business organisations would love to replicate. This explains why the level of interest by corporations and businesses to invest in and be associated with professional clubs continues to be significant.

GOVERNING BODIES While it may be a league or club that influences the direction of professional sport, the governing body of the sport can also have a great impact. The governing body, Australian Football League (AFL), in a sport such as AFL is wholly responsible for managing not just the league competition, but the entirety of the sport. It creates the policy and direction in which the sport evolves. That means that not only does it direct funds to the clubs for the league competition, it is also responsible for the development and overall growth of the sport. Revenue is deployed in order to ensure the long-term benefit of the sport, a decision that may not always be fully sanctioned by the clubs (Smith & Stewart, 2010). In the case of the AFL it assigns a licence to the clubs to be part of the competition. This enables the clubs to participate without fear of being relegated or removed from the competition. The ongoing licence to retain their position in a league competition is a major feature of most major leagues outside of Association football.

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The governing bodies play an important role in ensuring that the broader development of the sport is supported and that the athletes, league or individual clubs do not overstep their standing within the sport. A recent example of this is the rejection by the European Professional Football Leagues (EPFL) of the establishment of a European Super League. This Super League was proposed by a selection of the continent’s elite football clubs investigating breaking away from their respective top-tier divisions in order to form a new competition (SportBusiness, 2016a). The EPFL response was that creation of this league would seriously damage the long-term aspirations of smaller teams, who currently qualify for the UEFA Champions League and Europa League competitions. Five clubs from the EPL (Manchester United, Liverpool, Arsenal, Chelsea and Manchester City) were reported to have held talks about forming/joining a European Super League. This league would have been organised independently, and not by the governing bodies of football, UEFA or FIFA. The EPFL’s view was that Europe’s elite clubs should seek to guarantee better redistribution of wealth in order to achieve a more level playing field rather than destroying the dreams and goals of numerous clubs to compete at the highest level in Europe (SportBusiness, 2016a). In a further case, the International (Field) Hockey Federation (FIH) recently announced a major development in hockey through its 10-year hockey revolution initiative. This initiative was formed to raise the global profile of, and increase participation in, the sport. From 2019, it was proposed that all national teams would play one another home and away each year, complementing the 4-year Olympic Games and Hockey World Cup cycles. The FIH would establish specific criteria around the teams to participate in order to ensure quality, alongside three main objectives: to ‘generate a massive change in TV and media coverage for hockey; create big, bold, packed and loud events and; make a step change to increase future revenues’ (SportBusiness, 2016b). The governing bodies can play an integral role in supporting the greater good of the sport, while ensuring that all stakeholders in the sport have a chance to benefit.

EXTERNAL STAKEHOLDERS While the internal stakeholders focused on the athlete and the organisations that administer professional sport, the external stakeholders can be represented by the parties that are interested or affected by professional sport. These parties represent the spectators/fans who display an intensity and passion for their sport that is often seen as extending well beyond the boundaries of normal commercial interest. The fans represent specific communities that are important to the ongoing commitment to sport, and as a result the corporate and media interest has risen to a level some consider obscene or even beyond sustainability. The global sport market was estimated to be worth in excess of US$145 billion in 2014. These figures are derived only from the revenue obtained through gate revenues ($43 billion), media rights ($37 billion), sponsorship ($45 billion) and merchandise ($19 billion) and represent revenue streams for professional sport clubs only. It is envisaged that these revenues will continue to rise into the future, with the major contributor to growth being derived through enhanced media rights deals (PwC, 2011). Advances in broadcasting and technology present opportunities for fans and corporations to view and engage with the professional sport product. The introduction of social

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media is providing opportunities to fans to engage with their sport with greater intensity of experience, enabling sponsors to associate with and contribute to the experience, while ensuring sophisticated data mining and resulting marketing opportunities allow increasing levels of intelligence and insight into target markets. All sporting organisations attempt to balance their increasing commercial demands on their sport with the requirement to maintain the integrity and unpredictability of making sporting competitions exciting and appealing to their fans.

SPECTATORS/FANS A core feature of professional sport is its innate feature of engaging fans and delivering intensely emotional and loyal attachments (Mason, 1999). This is underpinned by a powerful sense of identification, with strong belonging and emotional attachment. This strength of loyalty and identification ensures that one form of sporting product cannot be easily replaced by any other. Fans will not readily substitute their attachment to their team or sport, even if the team underperforms, and even when this underperformance extends over multiple years. This strong and passionate attachment, loyalty, vicarious identification and blind optimism are crucial differentiators for sport (Smith & Stewart, 2010). Spectators attend games, view sport on television and through other media devices, and engage and interact via social media. New media opportunities are making this interaction occur with greater immediacy and with less emphasis on location. A spectator can access a live game via a mobile device anywhere around the globe, accessing the full game, highlights, live scores and results or statistics at the touch of a button. This means that spectators today are more informed and more discerning than at any other time in history. The requirement for this accessibility to be provided in a seamless and efficient way, catering for the needs and demands of the fan, is essential. No longer will substandard service, run-down facilities and poor communication access be tolerated. Professional sport has identified the need to create stadiums that cater for the needs of all fans, websites that provide suitable connectivity and access to information and broadcasts that cover all angles incorporating multiple replays. To ensure this unreserved passionate loyalty and following is continued, the professional sport delivery must continue to provide outcomes that meet the needs of the fans. Whatever the management approach, however, people still display a strong affiliation with the sport, club and athlete. While the sport presents highly skilled athletes individually or in teams, all with relatively equal attributes and capable of producing high quality outcomes, the fan interest in sport continues unabated. Mason (1999) identified that sport’s most notable distinction is its relationship with its consumers, which drives sport into being a vehicle for the promotion of corporate interests.

CORPORATIONS Professional sport provides an attractive live product experience that is of great appeal not only to fans at the ground, but also for extensive advertising and broadcast interests. The interest of spectators/fans in sport is instrumental in driving the success of

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professional sport. The overwhelming passion and involvement of the fans for sport teams brings enormous commercial and media interest. This corporate interest introduces revenue sources through association with the sport through sponsorships and broadcasting interests. Sponsorships generate enormous interest and provide significant revenue to professional sport. Equally, the opportunity for branding and consumer connection can be enormous for business. Recent discussion has emerged over the ethical association between sponsors and professional sport. Manchester United made very clear statements about separation of their increasing commercial demands from sponsorship and the team’s performance when they were renewing their sponsorship portfolio in 2013. They emphatically declared that their hunt for silverware would not be affected by increasing commercial demands. A record £357 million shirt sponsorship deal with Chevrolet that took effect from the start of the 2014–2015 season, coupled with a 5-year contract with Russian airline Aeroflot that generated in excess of £25 million, were recent additions to the business interests of the club. This did not include the major shirt manufacturing deal with Nike that was still under discussion at that time, although the club ultimately chose Adidas as its shirt sponsor. These arrangements left some people wondering about the demands these agreements place on the staff, including the manager who stated that he was aware of the additional demands of dealing with sponsors. Group managing director Richard Arnold clearly advised that sponsors would not impact performances on the pitch, stating that ‘there is nothing like sport. In sport there is nothing like football and in football there is nothing like Manchester United in terms of delivering connection and exposure’ (Stone, 2013).

COMMUNITY While the league product in professional sport developed around fan interests, and predominantly for those who traditionally attended games, the community attention has evolved considerably. The attention of professional sport is still on the fan, but this goes beyond the traditional ‘localised’ focus of the past. Years ago, a professional club primarily represented the local region of which it was a part. Many clubs emerged to represent one city or town, or in the case of a sport like the AFL, even one suburban region within a particular city. The ‘localised’ version of professional sport where a singular community is represented is now very much a thing of the past. While sport clubs and leagues still retain a strong impact on their traditional markets, the need to ‘globalise’ or ‘internationalise’ within professional sport is occurring at a rapid rate. This has seen the expansion of leagues and major events into markets in all corners of the world, developing fan, sponsor and media interests in new markets. Sport leagues that were once the domain of suburbs, towns or regions within a community are now less attached to a specific place. Major leagues such as the EPL and NBA are now accessible and attractive to a global supporter network. A club such as Manchester United boasts a global following of 659 million fans, far exceeding the ‘red’ side of the city of Manchester that represents just 0.1% of the supporter base (Prior, 2013). While this figure, presented through market research, was questioned in some circles, it still points to the global support of the club being quite enormous.

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Another recent example of globalisation saw a Memorandum of Understanding (MoU) signed between the AFL and the City of Shanghai. AFL club Port Adelaide and its new partner, property developer Shanghai Cred Real Estate (SCRE), agreed that an AFL match would be held in the city in the near future (SportBusiness, 2016c). While there are many supporters of these and other examples of the globalisation of professional sport, there are also many detractors. Fans have expressed concern at their club being rostered to play competition games in alternative markets, thereby denying the local community a home fixture. Leagues and clubs are seeking to expand their reach and this can affect the traditional communities and bases they have served. Expansion must not come at the expense of forgetting the powerful impact the professional sport brand has on members of the local community. Given that these sport organisations are fan based, their success continues to rely on building strong and engaged communities, wherever they may be located. One way that professional sport organisations are attempting to stay connected to their local communities is through the implementation of corporate social responsibility (CSR) programmes. These programmes seek to support and promote loyalty and connections with youth, fans, businesses, non-profits, local governments and other key stakeholders by means beyond what would ordinarily constitute their core business (Kihl, Babiak & Tainsky, 2014). The National Rugby League (NRL), for example, integrates with their core community in three ways beyond simply providing a rugby league competition. The NRL states that its purpose for serving its communities is to lead and inspire people from all walks of life to be the best they can. They seek to do this by providing pathways and opportunities for people to live positive, respectful and healthy lives. Their programmes focus on ‘NRL Respect’, which seeks to develop self-respect and social responsibility, encouraging inclusion and speaking out against racism, bullying, violence and discrimination. Other foci are on ‘NRL Learn’, which aims to promote the importance of study, education and hard work, and ‘NRL Health’, which encompasses a physical and mental health and well-being message (NRL, 2015). There are many other aspects of community that professional sport impacts, such as through gambling, economic, social and environmental impacts, club and team relocations and ownership, and even event and facility management issues. The community effect is a very powerful and significant area that sport must be mindful of and attend to in order to ensure that it does not ignore these important constituent groups. Expansion, globalisation and relocation are fine to ensure creation of new markets and ultimately revenues, but must occur with existing community consideration.

MEDIA Professional sport is now one of the most expensive media products, representing a market that exceeds US$37 billion for professional sport clubs alone. This figure does not take into account expenditure on major events such as the US$7.5 billion that American network NBC paid the International Olympic Committee (IOC) for Olympic rights until 2032 (Sherwood, 2016). While criticised for being enormously overvalued, NBC referred to its tradition (being the US broadcaster of the Olympic Games since

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1964), and its belief that the Olympics represent more than just money and that it supports other programming and attracts significant viewer interest, as strong reasoning. Commentary around this decision to lock in a media contract until 2032 was met with some derision and incredulity by other media providers. Rivals state that NBC does not know what the media outlook will be over that time, with the potential for radical shifts in technology and habits over an almost 20-year time frame. Questions over whether people will even be watching sport, aside from how they might consume it, have been raised. Added to this, the network has no idea of where the Games will be held, or even the time zone in which they will be held, and this represents an extreme gamble by an organisation (Sherwood, 2016). The example of the Olympic Games highlights a key aspect relating to media and professional sport. While the financial contribution from traditional media sources has continued to grow, many more opportunities are being brought about through the changes occurring with respect to the introduction of the over the top (OTT) content sector. Media players such as Google, Netflix, YouTube and Amazon can operate with lower costs and far wider distribution via the Internet than traditional terrestrial broadcasters. One result of this is that these companies are increasingly seeking to acquire the rights to distribute professional sport. While the exact model between the sport and media organisations is still evolving, there is a clear appetite by these media companies to distribute sport across their platforms. The model of traditional rights payments to sport might now extend towards other possibilities, such as a revenue sharing approach, or a merger/acquisition of clubs and leagues by the media organisation. Whatever the approach, the media interest in sport is continuing to grow, and the end result is that revenue associated with media rights is growing with it. While the uncertainty surrounding the broadcast of professional sport in emerging new media markets exists, other factors associated with media can impact on communities. Barnes (2016) referred to 2016 as the year that sport dies. He believes that as long as sport can retain the public interest then it will continue to retain its appeal, but suggests there are signs that people are losing faith in the innocence and meaning of sport and this is in large part being driven by the media coverage and level of investment. Barnes cited instances of doping, betting indiscretions, improper behaviour of athletes and, more recently, improper management practices, indicating that these negative aspects may be damaging the trust the public has in their sport. Sponsors have withdrawn support, such as Adidas recently announcing its withdrawal, four years early, from the IAAF as a result of doping scandals surrounding the sport. This could amount to tens of millions of dollars lost by the sport. The Australian Open tennis tournament in January 2016 was a highlight not just for tennis, but for players being implicated in throwing matches for payments. These and other issues are causing significant damage to the sports affected. It is not only the poor behaviour or governance and policies being brought into question. The influence of external parties who invest in sport is becoming legendary. Chelsea has an owner who, on a whim, will change the manager and players because of poor performance. Adidas now sponsors the kit of Manchester United in a deal worth £75 million a year. The Adidas CEO reportedly dropped a careful hint that Manchester United’s current style of play did not meet their approval, stating ‘we are satisfied but the actual way of playing is not exactly what we want it to be’. This raises

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concerns over the style vs substance vs commercial value (Stone, 2013). This level of interference begs the question of whether even tactics are an aspect of commerce and the media. It also raises questions of whether professional sport is entertainment or something quite different.

Case study: making it ‘big’ in the National Football League (NFL) -…ÕÌiÊ ­Óä£x®Ê iÝ>“ˆ˜i`Ê …œÜÊ `ˆvwVՏÌÊ ˆÌÊ ˆÃÊ vœÀÊ >˜Ê ˆ˜`ˆÛˆ`Õ>Ê ÌœÊ ¼“>ŽiÊ ˆÌ½Ê ˆ˜ÌœÊ ̅iÊ «ÀœviÃȜ˜>Ê i>}ÕiÃ]Ê …ˆ}…ˆ}…̈˜}Ê >ÀÀÞ`Ê >ޘi½ÃÊ >ÌÌi“«ÌÊ ÌœÊ LÀi>ŽÊ ˆ˜ÌœÊ ̅iÊ Ê ÀœÃÌiÀÊ >vÌiÀÊ Liˆ˜}Ê>ʅˆ}…Ê«ÀœwiÊ>̅iÌiʈ˜Ê>Ê`ˆvviÀi˜ÌÊëœÀÌÊ­ÀÕ}LÞʏi>}Õi®°Ê>ޘiʏivÌÊ̅iÊ >̈œ˜>Ê ,Õ}LÞÊ i>}ÕiÊ ˆ˜Ê ­ ,®Ê
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Ê Þi>ÀÃÊ œÕÌÊ œvÊ ˆÌ½]Ê >˜`Ê Ì…>ÌÊ ¼Ì…iÊ “ˆ˜ˆ“Õ“Ê ˆ˜Vœ“iÊ >vÌiÀÊ Ì>ÝiÃÊ QˆÃRÊ f1-ÓxÓ]äääÊ«iÀÊ>˜˜Õ“ÊvœÀÊ̅œÃiÊ̅>Ìʓ>Žiʈ̽]ʅ>À`ÞÊi˜œÕ}…Ê̜ÊÃÕÃÌ>ˆ˜Ê̅iÊÀiÃÌʜvÊ>˜Ê >̅iÌi½Ãʏˆvi°Ê7…ˆiÊ̅iÊiÝ>“«iʈ˜`ˆV>ÌiÃÊ̅iÊ`ˆvwVՏÌÞʜvÊ>V…ˆiۈ˜}ÊÃÕÃÌ>ˆ˜i`ÊÃÕVViÃÃʈ˜Ê «ÀœviÃȜ˜>Ê ëœÀÌ]Ê vœÀÊ Ì…œÃiÊ Ü…œÊ `œÊ “>ŽiÊ Ì…iÊ VÕÌÊ vœÀÊ >Ê ÃÕÃÌ>ˆ˜i`Ê «iÀˆœ`Ê œvÊ Ìˆ“i]Ê Ì…iÊ ÀiÜ>À`Ãʜ˜ÊœvviÀÊ­>ÃÊÃÌ>Ìi`ʈ˜Ê`ˆÃVÕÃȜ˜Ê>LœÕÌÊ̅iÊ>̅iÌi®ÊV>˜ÊLiÊiÝÌi˜ÃˆÛi° Ê œÕ«i`Ê܈̅Ê̅iÊ`ˆvwVՏÌÞʈ˜Ê“>Žˆ˜}Ê̅iÊÌÀ>˜ÃˆÌˆœ˜]Ê̅iÀiʈÃÊ>ÃœÊ̅iʘiViÃÈÌÞÊ̜ʼi>À˜Ê ̅iÊ }>“i½]Ê ¼i>À˜Ê ̅iÊ «>ÞÃ½Ê >˜`Ê ¼wÌÊ ˆ˜ÌœÊ ̅iÊ ÀiµÕˆÀi“i˜ÌÃÊ œvÊ >Ê vœÀiˆ}˜Ê }>“i½°Ê 7…ˆiÊ Ì…iÊ >ÀÀÞ`Ê>ޘiÊÌÀ>˜ÃˆÌˆœ˜ÊÜ>ÃÊ՘`iÀÊÜ>Þ]Ê̅iÊÀi«œÀÌʜvʅˆÃÊwÀÃÌʜvwVˆ>Ê Ê}>“i]Ê܅iÀiʅiÊ vՓLi`Ê Ì…iÊ wÀÃÌÊ «Õ˜ÌÊ Ì…>ÌÊ V>“iÊ …ˆÃÊ Ü>ÞÊ LivœÀiÊ V>ÀÀވ˜}Ê Ì…iÊ L>Ê vœÕÀÊ Ìˆ“iÃ]Ê }>ˆ˜ˆ˜}Ê >Ê ÀiëiVÌ>LiÊ£ÎÊÞ>À`ÃÊvœÀʅˆÃÊÌi>“]Ê̅iÊ->˜ÊÀ>˜VˆÃVœÊ{™iÀÃÊ­V Տˆ˜}]ÊÓä£x®]ÊiÝi“«ˆwiÃÊ Ì…iÊÌÀ>˜ÃˆÌˆœ˜ÊÀiµÕˆÀi`°Ê>ޘi½ÃÊ«ÀiۈœÕÃÊiÝ«iÀˆi˜Viʈ˜Ê̅iÊܜÀ`ʜvÊ̅iÊ ,]Ê܅iÀiÊvœÀÊ̅iÊ “œÃÌÊ«>ÀÌÊ̅iÊëœÀÌʈÃÊVœ˜Ìˆ˜ÕœÕÃÊ>˜`ÊÀi«œÀÌi`ÞÊVœ˜ÃՓiÃÊxäʓˆ˜ÕÌiýÊ>VÌÕ>Ê«>ވ˜}Ê̈“iÊ >VÀœÃÃÊ>˜Ên䇓ˆ˜ÕÌiʜvwVˆ>Ê}>“iʏi˜}̅Ê̈“i]ʈÃʈ˜ÊÃÌ>ÀŽÊVœ˜ÌÀ>ÃÌÊ̜ʅˆÃʘiÜÊiÝ«iÀˆi˜Vi°

But what is all the fuss about anyway?
˜Ê Ê}>“iÊÀi«œÀÌi`ÞÊ«ÀœÛˆ`iÃʜ˜ÞÊ££Ê“ˆ˜ÕÌiÃʜvÊ>VÌÕ>Ê«>ވ˜}Ê̈“iÊ>VÀœÃÃÊ>˜ÊœvwVˆ>Ê}>“iʏi˜}̅ʜvÊÈäʓˆ˜ÕÌiÃ]Ê܈̅Ê>˜Þʜ˜iÊ«>Þʏ>Ã̈˜}ʜ˜Ê>ÛiÀ>}iÊ{ÊÃiVœ˜`ÃÊ­V Տˆ˜}]Ê Óä£x®°Ê Ê ˆ˜ÛœÛiÃÊ vÀiµÕi˜ÌÊ Ã̜««>}iÃ]Ê vÀiµÕi˜ÌÊ LÀi>ŽÃÊ >˜`Ê Ìi>“ÃÊ œvÊ «>ÞiÀÃÊ Vœ˜ÃÌ>˜ÌÞÊ i˜ÌiÀˆ˜}Ê >˜`Ê i>ۈ˜}Ê Ì…iÊ wi`Ê œvÊ «>ÞÊ `i«i˜`ˆ˜}Ê œ˜Ê ̅iÊ ÀiµÕˆÀi“i˜ÌÃÊ œvÊ Ì…iÊ Ìi>“°Ê/…iʜvwVˆ>Ê}>“iÊ̈“iʜvÊÈäʓˆ˜ÕÌiÃÊV>˜ÊiÝÌi˜`Ê̅iÊ>VÌÕ>ÊLÀœ>`V>ÃÌÊiÛi˜ÌÊ>VÀœÃÃÊ “œÀiÊ Ì…>˜Ê vœÕÀÊ …œÕÀðÊ
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̅iÊ Ê ˆ˜ÛœÛiÃÊ ˆ˜vÀiµÕi˜ÌÊ ­œÀÊ iÛi˜Ê ˜ˆ®Ê ˆ˜ÛœÛi“i˜ÌÊ ˆ˜Ê ̅iÊ }>“iÊ >V̈œ˜Ê «>Vˆ˜}Ê iÛi˜Ê }Ài>ÌiÀÊ«ÀiÃÃÕÀiʜ˜Ê̅iÊ>̅iÌiÊ̜ʫiÀvœÀ“ʈ˜Ê̅œÃiÊLÀˆivʓœ“i˜ÌÃÊ>Û>ˆ>LiÊ̜Ê̅i“° Ê /…ˆÃÊ̈“ˆ˜}ʜvÊ>˜Ê Ê}>“iÊÃÕ}}iÃÌÃÊ̅>ÌÊ̅iÊ}>“iʈÃʜÛiÀÀ՘ÊLÞʜ̅iÀÊVœ˜ÌÀˆLṎœ˜ÃÊ Liޜ˜`Ê ÕÃÌÊ Ì…iÊ «ÀiÃi˜Ì>̈œ˜Ê œvÊ Ì…iÊ Ã«œÀÌ°Ê -œ“iÊ >À}ÕiÊ Ì…>ÌÊ Ì…iÊ Ã«œÀÌÊ ˜œÜÊ «ÀiÃi˜ÌÃÊ >Ê Ûi…ˆViÊ vœÀÊ “i`ˆ>Ê >˜`Ê >`ÛiÀ̈Ș}É뜘ÜÀň«Ê “iÃÃ>}iÃ°Ê -ˆÌ>˜i˜Ê ­Óä£{®]Ê >˜Ê >`ÛiÀ̈Ș}ÊiÝiVṎÛiʈ˜ÛœÛi`ʈ˜ÊVÀi>̈˜}Ê>`ÃÊvœÀÊ̅iÊ-Õ«iÀÊ œÜ]ʈ˜`ˆV>ÌiÃÊ̅>ÌÊ>Ê-Õ«iÀÊ œÜÊ >`Ê ˆÃÊ Ài>ÞÊ ÜœÀÌ…Ê Ì…iÊ 1-f{Ê “ˆˆœ˜Ê ˆÌÊ VœÃÌÊ ˆ˜Ê Óä£{°Ê -ˆÌ>˜i˜½ÃÊ “iÃÃ>}iÊ ˆÃÊ Ì…>ÌÊ Ü…ˆiÊ >Ê Îä‡ÃiVœ˜`Ê-Õ«iÀÊ œÜÊ>`ÛiÀ̈Ș}Ê«>ViÊVœÃÌÊf{ʓˆˆœ˜]Ê̅iÊÓä£{ÊiÛi˜ÌÊÜ>ÃÊۈiÜi`ÊLÞÊ £änʓˆˆœ˜Ê«iœ«iʈ˜Ê̅iÊ1˜ˆÌi`Ê-Ì>ÌiÃÊ>˜`Ê̅>Ìʓ>˜ÞÊ«iœ«iÊ­Õ«Ê̜Êx䯮ÊÌ՘iʈ˜ÊiÝVÕÈÛiÞÊ̜ÊۈiÜÊ̅iÊ>`ðÊ-ˆÌ>˜i˜Ê>ÃœÊiÝ«ÀiÃÃi`Ê̅>ÌÊ܅ˆiÊVœ““iÀVˆ>ÊLÀi>ŽÃʈ˜Ê“œÃÌÊÌiiۈȜ˜Ê «Àœ}À>““ˆ˜}Ê >ÀiÊ Vœ˜Ãˆ`iÀi`Ê ˆ˜ÌiÀÀի̈œ˜ÃÊ ÌœÊ Ì…iÊ i˜ÌiÀÌ>ˆ˜“i˜Ì]Ê -Õ«iÀÊ œÜÊ >`ÃÊ >ÀiÊVœ˜Ãˆ`iÀi`Ê̜ÊLiÊ`ˆvviÀi˜Ì° Ê 7…ÞÊ`ˆvviÀi˜Ì¶Ê/…iÀiʈÃÊiۈ`i˜ViÊ̜ÊÃÕ}}iÃÌÊ̅>Ì]Ê܅ˆiÊi>V…Ê>`Êvi>ÌÕÀiʓ>ÞÊLiÊ>ÌÊÀˆÃŽÊ œvÊÀiViˆÛˆ˜}Ê«œœÀÊÀiۈiÜÃ]Ê̅iʜ««œÀÌ՘ˆÌÞÊ«ÀiÃi˜Ìi`ÊvœÀʼ̅iÊ*,ÊÛ>Õi½Ê>˜`ʼÀi«>ÞÊÛ>Õi½Ê œvÊ>Ê}Ài>ÌÊ-Õ«iÀÊ œÜÊëœÌÊ>œ˜iÊV>˜ÊLiÊܜÀ̅Ê̅iÊ}>“i½Ãʼ…ˆ}…Ê“i`ˆ>ÊVœÃ̽ʭ-ˆÌ>˜i˜]Ê Óä£{®°Ê -ˆÌ>˜i˜Ê VÀi>Ìi`Ê >`ÃÊ vœÀÊ Ì…iÊ Óä£ÓÊ >˜`Ê Óä£ÎÊ -Õ«iÀÊ œÜÃÊ vœÀÊ «iÀvœÀ“>˜ViÊ À՘˜ˆ˜}Ê Ã…œiÃÊ ¼-ŽiV…iÀý]Ê ÜˆÌ…Ê Ì…iÊ Ã«œÌÃÊ ÀiViˆÛˆ˜}Ê œÛiÀÊ ÓääÊ Ài«>ÞÃÊ œ˜Ê ˜iÜÃÊ ÃÌ>̈œ˜ÃÊ throughout the country and millions of YouTube hits, and being mentioned in hundreds of ˜iÜë>«iÀÊÀi«œÀÌÃ]ÊŜܘʈ˜ÊœÀÊÜÀˆÌÌi˜Ê>LœÕÌʈ˜Ê˜Õ“iÀœÕÃÊLœ}ÃÊ>˜`Ê`ˆÃVÕÃÃi`ʜ˜Ê̅iÊ À>`ˆœ°Ê¼/…iÊÛ>ÕiʜvÊ̅iÊ*,Ê}>À˜iÀi`ÊvÀœ“Ê̅iÃiÊëœÌÃÊi>ȏÞʵÕ>`ÀÕ«i`Ê̅iÊ>VÌÕ>Ê-Õ«iÀÊ œÜÊ“i`ˆ>ÊVœÃ̽ʭ-ˆÌ>˜i˜]ÊÓä£{®°ÊÌÊ>ÃœÊVœ˜ÌÀˆLÕÌi`Ê̜Ê-ŽiV…iÀÃʈ˜VÀi>Ș}ʈÌÃÊÃ>iÃÊLÞÊ ÓȯʜÛiÀÊ̅œÃiÊÌܜÊÞi>ÀðÊ"̅iÀÊVœ“«>˜ˆiÃÊÃÕV…Ê>ÃÊ
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SUMMARY *ÀœviÃȜ˜>ÊëœÀÌʈÃÊiÝ>“ˆ˜i`Ê̅ÀœÕ}…Ê̅iÊ`iÛiœ«“i˜ÌʜvÊ>ëiVÌÃÊ>ÀœÕ˜`Ê̅iÊ«ÀœviÃȜ˜>Ê ëœÀÌÃV>«i°Ê /…iÊ «ÀœviÃȜ˜>Ê ëœÀÌÃV>«iÊ ˆ˜ÌÀœ`ÕViÃÊ Ì…iÊ ˆ˜ÌiÀ˜>Ê ÃÌ>Ži…œ`iÀÊ }ÀœÕ«ÃÊ Vœ“«ÀˆÃˆ˜}Ê Ì…iÊ >̅iÌiÃ]Ê VÕLÃ]Ê i>}ÕiÃÊ >˜`Ê }œÛiÀ˜ˆ˜}Ê Lœ`ˆiÃ°Ê /…iÃiÊ }ÀœÕ«ÃÊ «ÀœÛˆ`iÊ Ì…iÊ >̅ïVÊ Vœ˜ÌÀˆLṎœ˜]Ê Vœ“«ï̈œ˜Ê >˜`Ê ÀՏiÃÊ >˜`Ê Ài}Տ>̈œ˜ÃÊ >ÀœÕ˜`Ê …œÜÊ Ì…iÊ Ã«œÀÌÊ ÜˆÊ LiÊ «ÀiÃi˜Ìi`Ê>˜`ÊVœ˜`ÕVÌi`°Ê ÝÌiÀ˜>ÊÃÌ>Ži…œ`iÀÊ}ÀœÕ«ÃÊÃÕV…Ê>ÃÊ̅iÊëiVÌ>̜ÀÃ]ÊVœ““Õ˜ˆÌˆiÃ]Ê VœÀ«œÀ>̈œ˜ÃÊ>˜`ʓi`ˆ>Ê`ˆÃ«>ÞÊ>˜Êi˜…>˜Vi`ʈ˜ÛœÛi“i˜ÌÊ>˜`ʈ˜ÛiÃ̓i˜Ìʈ˜Ê«ÀœviÃȜ˜>Ê ëœÀÌ]Ê܅ˆV…Ê>ÃœÊˆ“«>VÌÃʜ˜Ê̅iÊ`iˆÛiÀÞ°Ê/…iÊ«ÀœviÃȜ˜>Ê>̅iÌiʈÃÊ՘`iÀʓœÀiÊÃVÀṎ˜ÞÊ Ì…>˜Ê iÛiÀÊ LivœÀi°Ê >˜Ã]Ê Ü…ˆiÊ Ã̈Ê ÃÌÀœ˜}ÞÊ “œÌˆÛ>Ìi`Ê >˜`Ê «>ÃȜ˜>ÌiÊ vœÀÊ Ì…iˆÀÊ Ìi>“ÃÊ >˜`Ê athletes, are becoming increasingly discerning and demanding for success, accessibility >˜`Ê ˜iÜÃ°Ê /i>“ÃÊ >ÀiÊ ÃiiŽˆ˜}Ê ÌœÊ i˜ÌiÀÊ ˜iÜÊ “>ÀŽiÌÃÊ Ü…ˆiÊ Ã̈Ê ÀiÌ>ˆ˜ˆ˜}Ê ˆ˜ŽÃÊ ÌœÊ i݈Ã̈˜}Ê Vœ““Õ˜ˆÌˆiÃ°Ê œÀ«œÀ>ÌiÊ ˆ˜ÌiÀiÃÌÃÊ >˜`Ê Ì…iÊ “i`ˆ>Ê >Ê ̅iÊ Ü…ˆiÊ >ÀiÊ ÃiiŽˆ˜}Ê ÌœÊ ˆ˜ÛiÃÌÊ ˆ˜Ê ̅iÊ >««i>ÊœvÊ̅iÃiʏi>}ÕiÃ]ÊÌi>“ÃÊ>˜`Ê>̅iÌiðÊ/…iÊi˜`ÊÀiÃՏÌʈÃÊ>˜Êi˜ÛˆÀœ˜“i˜ÌÊ̅>Ìʘii`ÃÊ to be carefully (and professionally) managed to ensure ongoing success and continued ˆ˜ÌiÀiÃÌʈ˜ÌœÊ̅iÊvÕÌÕÀi°

56

Paul Turner

REVIEW QUESTIONS £Ê 7…>ÌÊ`œÊޜÕÊ̅ˆ˜ŽÊ̅iʓ>œÀʈÃÃÕiÃÊ>ÀiÊÃÕÀÀœÕ˜`ˆ˜}Ê«ÀœviÃȜ˜>ÊëœÀ̶Ê/…œÃiʈÃÃÕiÃÊ >vviV̈˜}Ê̅iʈ˜ÌiÀ˜>ÊÃÌ>Ži…œ`iÀöÊ/…œÃiʈÃÃÕiÃÊ>vviV̈˜}Ê̅iÊiÝÌiÀ˜>ÊÃÌ>Ži…œ`iÀÃ¶Ê ˆÃVÕÃð ÓÊ -…œÕ`Ê«ÀœviÃȜ˜>ÊVÕLÃÊLiÊÀiÃÌÀˆVÌi`ÊLÞʏi>}ÕiʜÀÊ}œÛiÀ˜ˆ˜}ÊLœ`ˆiÃÊvÀœ“ÊVÀi>̈˜}Ê Ì…iˆÀʜܘÊëœÀÌʏi>}ÕiöÊ7…ÞÉ܅ÞʘœÌ¶ ÎÊ /…iʈ“«>VÌʜvÊ̅iÊVœÀ«œÀ>ÌiÊÃiV̜ÀÊ>˜`ʓi`ˆ>ʜ˜Ê«ÀœviÃȜ˜>ÊëœÀÌʈÃÊi˜œÀ“œÕðÊ>ÃÊ ˆÌÊ}œ˜iÊ̜œÊv>À¶Ê œ““i˜Ì° {Ê
ÀiÊ L>`Ê Li…>ۈœÕÀÃÊ LÞÊ >̅iÌiÃ]Ê v>˜ÃÊ œÀÊ Ã«œÀÌÊ “>˜>}iÀÃÊ …>ۈ˜}Ê >˜Ê ˆ“«>VÌÊ œ˜Ê ̅iÊ ˆ˜ÌiÀiÃÌÊ«iœ«iʅ>Ûiʈ˜Ê«ÀœviÃȜ˜>ÊëœÀ̶Ê-Õ««œÀÌÊޜÕÀÊۈiÜ° xÊ >Žˆ˜}Ê̅iÊ}À>`iÊ>ÃÊ>Ê«ÀœviÃȜ˜>ÊëœÀÌëiÀܘʈ˜Ê>Ê`ˆvviÀi˜ÌÊëœÀÌÊvÀœ“Ê̅iʜ˜iÊ̅iÞÊ …>ÛiÊ«ÀiۈœÕÏÞÊÌÀ>ˆ˜i`ÊvœÀÊ`œiÃʅ>««i˜°Ê œ˜Ãˆ`iÀˆ˜}Ê̅iÊV>ÃiÊÃÌÕ`Þ]Ê«ÀœÛˆ`iÊܓiÊ iÝ>“«iÃÊ Ü…iÀiÊ Ì…ˆÃÊ …>ÃÊ œVVÕÀÀi`Ê >˜`Ê Vœ““i˜ÌÊ œ˜Ê ̅iÊ «œÃÈLiÊ `ˆvwVՏ̈iÃÊ Ì…iÃiÊ >̅iÌiÃʓ>Þʅ>Ûiʅ>`Ê̜ʜÛiÀVœ“i°

REFERENCES >`i˜…>ÕÃi˜]Ê°Ê­Óä£x®°Ê/…iÊܜÀ`½ÃÊxäʓœÃÌÊÛ>Õ>LiÊëœÀÌÃÊÌi>“ÃÊÓä£x°Ê,iÌÀˆiÛi`ÊvÀœ“ÊÜÜÜ°vœÀLið Vœ“ÉÈÌiÃɎÕÀÌL>`i˜…>ÕÃi˜ÉÓä£xÉäÇÉ£xÉ̅i‡ÊÜ œÀ`Çx䇓œÃ̇ÊÛ >Õ>Li‡Ã«œÀÌÇÊÌi>“ÇÓä£xÉ ›ÓäxVnÎÇ`xÇv`° >À˜iÃ]Ê -°Ê ­Óä£È®°Ê /…ˆÃÊ VœÕ`Ê LiÊ Ì…iÊ Þi>ÀÊ Ì…>ÌÊ Ã«œÀÌÊ ÃÌ>ÀÌÃÊ ÌœÊ `ˆi°Ê ,iÌÀˆiÛi`Ê vÀœ“Ê ÜÜܰëiVÌ>̜À°Vœ° ՎÉÓä£ÈÉä£É̅ˆÃ‡ÊVœÕ`‡Li‡Ê̅i‡Þi>À‡Ê̅>̇ëœÀ̇ÊÃÌ>ÀÌÇ̜‡Ê`ˆi° ÀÕÃÌiˆ˜]Ê°Ê­Óä£{®°Ê ʈÃÊLiÌ̈˜}ÊfÇ°ÈxÊLˆˆœ˜Ê̅>ÌʈÌʎ˜œÜÃÊ܅>ÌÊ/6Ê܈ÊœœŽÊˆŽiʈ˜ÊÓäÎÓ°Ê,iÌÀˆiÛi`Ê vÀœ“Ê ÜÜÜ°Lœœ“LiÀ}°Vœ“ɘiÜÃÉ>À̈ViÃÉÓä£{‡äx‡änɘLVÇÊLJ`œÌ‡ÊÈx‡Lˆˆœ˜‡ÊœÞ“«ˆVÇLÀœ>`V>Ã̇Ê`i>‡ ˆÃ‡Ê>‡Li̇ʜ˜‡Ûˆ`iœÃ‡ÊvÕÌÕÀi° >ˆ˜iÃ]Ê °Ê­Óä£x®°Ê/…iÊ
ʈÃÊ̅iʅˆ}…iÃ̇ʫ>ވ˜}ÊëœÀÌÃʏi>}Õiʈ˜Ê̅iÊܜÀ`°Ê,iÌÀˆiÛi`ÊvÀœ“ÊÜÜÜ°LÕȘiÃȘÈ`iÀ°Vœ“°>ÕÉëœÀÌÇʏi>}ÕiÇ̜«‡ÊÃ>>ÀˆiÇÓä£x‡x¶Àr1-E,r/° ÀœÃÓ>˜]Ê °Ê ­Óä£È®°Ê /…iÊ œÜiÃÌÊ «>ˆ`Ê >̅iÌiÃÊ ˆ˜Ê >Ê œvÊ «ÀœviÃȜ˜>Ê ëœÀÌÃ°Ê ,iÌÀˆiÛi`Ê vÀœ“Ê ÜÜÜ°“i˜ÃœÕÀ˜>°Vœ“É>`Ûi˜ÌÕÀiÉÀ>ViÇÊëœÀÌÃÉ̅i‡ÊœÜiÃ̇«>ˆ`‡Ê>̅iÌiLj˜‡Ê>‡œv‡Ê«ÀœviÃȜ˜>‡Ã«œÀÌÇÊÓä£{££Óx° ˆ…]Ê °]Ê >Lˆ>Ž]Ê °Ê EÊ />ˆ˜ÃŽÞ]Ê -°Ê ­Óä£{®°Ê Û>Õ>̈˜}Ê Ì…iÊ ˆ“«i“i˜Ì>̈œ˜Ê œvÊ >Ê «ÀœviÃȜ˜>Ê ëœÀÌÊ Ìi>“½ÃÊ VœÀ«œÀ>ÌiÊVœ““Õ˜ˆÌÞʈ˜ÛœÛi“i˜Ìʈ˜ˆÌˆ>̈Ûi°ÊJournal of Sport Management, 28]ÊÎÓ{qÎÎÇ° >ܘ]Ê °Ê-°Ê­£™™™®°Ê7…>ÌʈÃÊ̅iÊëœÀÌÃÊ«Àœ`ÕVÌÊ>˜`Ê܅œÊLÕÞÃʈ̶Ê/…iʓ>ÀŽï˜}ʜvÊ«ÀœviÃȜ˜>ÊëœÀÌÃÊ i>}ÕiðÊEuropean Journal of Marketing, 33­ÎÉ{®]Ê{äÓq{£™° V Տˆ˜}]Ê°Ê­Óä£x]Ê£ÈÊ
«Àˆ®°Ê>ÀÀÞ`Ê>ޘiÊv>˜ÃÊLiÊÜ>À˜i`\Ê/…iÊ>ÛiÀ>}iÊ Ê}>“iʈ˜ÛœÛiÃʍÕÃÌÊ££Ê “ˆ˜ÕÌiÃʜvÊÀi>Ê>V̈œ˜°ÊThe Age° ,°Ê­Óä£x®°Ê ,ÊÜVˆ>Êˆ“«>VÌÊÀi«œÀÌÊÓä£x°Ê,iÌÀˆiÛi`ÊvÀœ“ÊÜÜÜ°˜À°Vœ“É«œÀÌ>ÃɘÀÉÀ>`i`ˆÌœÀÉ`œVՓi˜ÌÃɘÀÚÜVˆ>Úˆ“«>VÌÚÀi«œÀÌ°«`v° *ÀˆœÀ]Ê °Ê­Óä£Î®°Ê œÊ>˜Ê1Ì`ÊÀi>Þʅ>ÛiÊÈx™“ÊÃÕ««œÀÌiÀöÊ,iÌÀˆiÛi`ÊvÀœ“ÊÜÜÜ°LLV°Vœ“ɘiÜÃɓ>}>∘i‡ÊÓ£{ÇnnxÇ° *Ü °Ê­Ó䣣®°Ê …>˜}ˆ˜}Ê̅iÊ}>“i\Ê"Õ̏œœŽÊvœÀÊ̅iÊ}œL>ÊëœÀÌÃʓ>ÀŽiÌÊ̜ÊÓä£x°Ê,iÌÀˆiÛi`ÊvÀœ“ÊÜÜÜ° «ÜV°Vœ“ÉëœÀÌÜÕ̏œœŽ° Ã>>ÀÞ°Vœ“°Ê­Óä£È®°Ê*ÀœviÃȜ˜>Ê>̅iÌiÊÃ>>ÀˆiðÊ,iÌÀˆiÛi`ÊvÀœ“ÊÜÜÜ£°Ã>>ÀÞ°Vœ“É*ÀœviÃȜ˜>‡Ê
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Professional sport

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CHAPTER 5

The global sport environment Eric MacIntosh and John Harris

Chapter objectives After completing this chapter you should be able to: UÊ }i>˜Ê>˜Êˆ`i>ʜvÊ̅iÊi˜œÀ“ˆÌÞʜvÊ̅iÊ}œL>ÊëœÀÌʏ>˜`ÃV>«iÊ>˜`Ê̅iÊ}ÀœÜˆ˜}ʘ>ÌÕÀiʜvÊ multi and single sport event opportunities; UÊ }>ˆ˜Ê>˜Êi˜…>˜Vi`Ê>Ü>Ài˜iÃÃʜvÊ̅iʓ>ˆ˜Ê œÀ̅Ê
“iÀˆV>˜Ê«ÀœviÃȜ˜>ÊëœÀÌʏi>}ÕiÃ½Ê international initiatives; UÊ }>ˆ˜Ê >˜Ê >Ü>Ài˜iÃÃÊ œvÊ Ãœ“iÊ œvÊ Ì…iÊ `ˆvviÀi˜ÌÊ ÌÞ«iÃÊ œvÊ Ã«œÀÌÊ i>}ÕiÃÊ >˜`Ê Ì…iˆÀÊ «Àœ“ˆnence in a particular market; UÊ }>ˆ˜Ê >˜Ê >««ÀiVˆ>̈œ˜Ê vœÀÊ Ì…iÊ ˆ˜VÀi>Ãi`Ê ÕÃ>}iÊ >˜`Ê ÀœiÊ œvÊ ÃœVˆ>Ê “i`ˆ>Ê ˆ˜Ê «ÀœviÃsional sport.

Key Terms: Participation; Consumption; Professional Leagues; Social Media; Internationalisation

AN INTRODUCTION TO THE GLOBAL SPORT ENVIRONMENT Sport touches us all regardless of where we live in the world. Whether it is friendly banter with a colleague about the game last night (e.g. the score, a certain play, an important goal), a discussion with a parent of the local sport team (e.g. volunteer roles, upcoming fundraisers), planning a social engagement around a broadcast of the next sport event (e.g. Rugby World Cup, March Madness), or simply organising your next activity (e.g. scheduling your race, booking the course), the power of sport is omnipresent on a global scale. It is no surprise that people love to discuss, consume and participate in sport all over the world. Yet, while we share some similarities in these respects, the sporting opportunities and landscape is vastly different from country to country. Take, for example, Canada, where ice hockey and (perhaps surprisingly) lacrosse are the national sports. These sports are an integral part of the national identity of Canada. Internationally, Canada is considered to be an ice hockey-mad country, but is lacrosse also seen as an important sport?

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In reality both ice hockey (or simply hockey to Canadians) and lacrosse have two very different participant and consumer markets in Canada. Additionally, they are but two of myriad sports that Canadians discuss, consume and participate in every day. Did you know that soccer is actually the most played sport by Canadian children from 5 to 14 years old (where approximately 42% participate)? In Canada, participation rates for swimming (24%) in this same age category are actually higher than hockey (22%). Other popular participation sports for Canadian youth include basketball (16%), baseball (14%), volleyball (8%) and gymnastics (8%) (Canadian Heritage, 2013). Baseball and basketball also hold a strong consumer interest in Canada with professional leagues in both sports. However, this is not a chapter about what sport is like in Canada. This introduction highlights the fact that the sport system in a country (regardless of where in the world one is discussing) is shaped by a complex history of development. Specific to Canada, the cultural influences of First Nations people and French and English immigrants have shaped the sport system. Hence, to truly understand a sport within any country is to appreciate and acknowledge that the historical, cultural, political and socioeconomic conditions all play a role in shaping the sporting environment. In Wales, rugby union is the national sport and occupies an important position in the wider culture. It is often described as the national sport and is positioned as something of a ‘classless’ game. Yet the sport came from an English public (fee paying) school where it was nurtured by the social elite. It developed in Wales during a period of significant inward migration as the country became an industrial hub of the world. Many of these immigrants were from England, the big neighbour next door and the country that Wales still most wants to beat on the rugby field. Wales was one of the foundation nations of rugby’s international federation now known as World Rugby, and is part of the hegemonic core of the international game (see Harris, 2010). For a nation of three million people, it has contributed a great deal to the sport in an international perspective. In addition to the many contextual differences and realities that shape sport within any particular country, one must also appreciate that sport systems across the globe are continuously changing from year to year. Factors such as governmental change, and the national and international monies that flow in and out of sport organisations through broadcasting rights and event hosting deals, are just two examples to note. From a global sport environment viewpoint, then, there are myriad factors influencing the sport system of a nation. It is apparent that keeping up with the trends in sport in one country alone is difficult enough, so tracking them on a global scale is a monumental and perhaps impossible task. A cursory review of how professional sport is handled from Europe to North America, for instance, reveals many differences (see Markovits & Rensmann, 2010). Furthermore, what is culturally relevant is vastly different from one continent or region to the next. Consequently, it should come as no surprise that there are major differences between what is discussed, participated in or consumed from one place to the next. Furthermore, many distinctions in how sport is managed and marketed can be seen based solely on the size of the population. In China the sport fan market is in excess of 281 million fans, whereas the United Arab Emirates has a small market of just over three million fans (Know the Fan Report, 2014). Yet, despite the various different cultures, climates, geographies and languages that exist globally, there are certain sports and sporting events that capture the imagination of the masses across the world. Mega events like the Summer Olympic Games and the

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FIFA World Cup (Men) receive tremendous media coverage and sponsorship monies. Success on the international sporting stage is considered very important and the performances of a nation in the Olympic Games are often viewed as reflecting its position in the wider world order. While parts of this chapter will discuss these two biggest sporting events, the majority of it will focus on the increased internationalisation of sport leagues and consider some of the key issues shaping contemporary sport. From a Global Sport Environment perspective, there are many sports (e.g. cricket, baseball, basketball, rugby) that are discussed, participated in and consumed passionately from one country to the next. In addition, there are varieties of these sports (e.g. Twenty20 cricket, Rugby Sevens) and a plethora of competitions within the sporting calendar that add to the enormous size of the international sport marketplace. Consequently, sport is an enormous worldwide market and, as we will see later on in this chapter, the sport landscape is constantly changing and increasingly internationalising. Many of the more omnipresent professional leagues are attempting to capitalise on the international appetite for their sport, a trend that will seemingly grow. All told, the world of sport is abundant and many opportunities are available to host events, act as a tourist, participate or even watch your favourite team on mobile technology.

SPORTING OPPORTUNITIES The popularity of a particular sport, from both a participant and consumer point of view, largely depends on the region of the world one is discussing. For example, football is a very popular team based sport in many regions such as Europe, Africa, Asia and South America (see Giulianotti & Robertson, 2009). However, this does not mean that other team sports like cricket, netball, rugby union or (field) hockey do not have strong and passionate followings in some of the same countries where football is popular. While noting that one sport is the most popular is interesting and headline catching, it can also sometimes be misleading as representative of what is actually happening within the wider sport system of a particular nation. For instance, some of the more popular team based sports leagues in North America, such as in ice hockey (NHL) or American football (NFL), have recently experienced considerable media attention related to the long-term consequences of concussions due to the contact that occurs in these sports. As a result of these contemporary and ongoing discussions, participation in these sports at the grassroots level may suffer. Consider that for parents, head injury and safety issues may lead them to question their child’s participation despite the cultural popularity of the sport. Concomitantly, both (ice) hockey and American football are financially draining commitments and time consuming for parents. Consequently, we see that in this case, health, financial and logistical issues may negatively influence sport participation despite a very high consumer based interest. Thus, sport systems change due in part to new knowledge being created, and the new trends and opportunities that are available. In the case of these two team based sports in particular, it begs the question of how the knowledge and awareness around concussion and injuries will reshape the sport participation landscape in North America and even other parts of the world. While the sport may be different, similar concerns around head injuries also dominate discussions of safety in rugby union and World Rugby is carefully

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monitoring this issue. There has recently been a call in the UK and Ireland to ban tackling in school rugby, with over 70 academics and doctors signing an open letter to government ministers (BBC, 2016). This attracted considerable media attention and continues to provoke much discussion. Of course, there are many other ways in which sport consumption and participation patterns can change. When new opportunities become available to participate and consume within the sport system (e.g. hosting a major single or multisport event, changes to technology), we increasingly see a focus on the supposed legacy of hosting such events, particularly in relation to the promise of increased physical activity rates among host nation residents. In recent years, there has been a proliferation of both single and multisport event hosting opportunities at the youth, adult and senior level nationally and internationally, and we continue to see sport become more global in this respect. Consider the hosting opportunities recently for the Summer Olympic Games (Beijing 2008; Rio 2016), FIFA World Cup (South Africa 2010; Brazil 2014), Commonwealth Games (Delhi 2010) and a multitude of world championships hosted in what are often described as developing nations. We can clearly see the ‘soft power’ of sport here as a means of public diplomacy and reimaging a nation on the international stage. These events can create new opportunities and challenges for countries to build and develop their infrastructure for their athletic talent while showcasing cultural richness and contributing to legacy (Getz, 2005; Parent, Rouillard & Leopkey, 2011). Furthermore, when it comes to hosting an event, there is often an increased pressure on host nations to perform well. We have seen this in our respective nations where the 2010 Winter Olympic Games in Vancouver and the 2014 Commonwealth Games in Glasgow both resulted in record medal tallies for the home teams. The expectation levels and pressure to perform for the host nation can be high. When a national team fails to meet these expectations, as was the case with the England men’s team at the 2015 Rugby World Cup, there is an inevitable media backlash and often a change to the coaching team. These large property rights holders now also organise sport competitions for younger people (e.g. Youth Olympic Games and Commonwealth Youth Games), and one can understand the burgeoning sport event opportunities and developing international landscape. While the case could be made that the property rights holders are simply trying to grow their market share and develop their brand through the younger athletic talent (MacIntosh, in press), the advent of these games has undoubtedly created new opportunities for smaller sport/host cities (in terms of population) to develop their sport system, while also providing an enhanced international environment for other athletes to compete in. For instance, a cursory review of the Commonwealth Youth Games shows that the hosts have a relatively small population when compared with host cities of the Commonwealth Games (see MacIntosh, in press). Like the youth based multisport event offerings, there are also many single sport event opportunities to compete (e.g. FIFA Youth World Cup, International Ice Hockey Federation World Juniors and Junior Wimbledon). Indeed, the increasing number of youth competitions and the global pressure to succeed have resulted in a redesign of many national talent development systems (Barreiros, Cote & Fonseca, 2014). Many sport systems now have an increased focus on the development pathways of younger people and hold their own national competitions (e.g. the Canada Games). Sport events

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like these are said to build up the sporting pedigree of young athletes and are intended to help ready the athlete for regional and international events. Yet, they are not without significant stressors to younger athletes (Parent, Kristianson & MacIntosh, 2014). The availability of regional competitions for single and team based sport events are abundant. Today, there are many sport competitions available to athletes. For example, regional competitions such as the Asian Games, Oceania Games, Islamic Games, Island Games, Francophone Games, South American Games, European Maccabi Games, Pan American Games, to name but a few, are now providing ample sporting opportunities for athletes and many of these events hold considerable sponsorship and broadcasting rights for the property rights holders. Indeed, there seems to be a burgeoning area of sport event opportunities. Consider that the sporting calendar also offers other events such as the World University Games, World Military Games, World Police and Fire Games, the Gay Games, Special Olympics and the Invictus Games. Indeed, the world of sport goes well beyond the big two (Olympic Games and FIFA World Cup) for the amateur and professional athlete. When it comes to the professional realm of sport, there are circuits in a number of popular sports, including the Rugby World Cup, Cricket World Cup, the World Baseball Classic, the World Cup of Hockey and the Ryder Cup. Professional golf and tennis have their own lucrative circuits for both men and women that have a significant place on the sporting calendar. By now, it should be very clear that the global sport environment is incredibly broad. The amount of sport events is truly staggering. The tourism opportunities around many of these events have produced a desire among governments to bid for the rights to host many of them. However, some places in the world are synonymous with specific events. There also exists a rich breeding ground of business activity in specific cities for certain events, including the likes of the Tour de France, Calgary Stampede, Boston Marathon and the Running of the Bulls that are now central to wider tourism promotion in these locales. Annual events such as these can be important contributors to the local economy, where key stakeholders attempt to capitalise on the name brand of the event and demonstrate city prowess in an international context. In the next section, we turn to some case study examples of professional North American sport in an attempt to illuminate some of the strategies employed in league based activities to grow the market share within the global sporting environment.

EXPANDING SPORT INTERNATIONALLY: A NORTH AMERICAN STRATEGIC PERSPECTIVE As we have seen, there is no shortage of opportunity in the world of sport to participate in and consume both single and multisport events. Not surprisingly, the prospects of growing the popularity of a sport are among the strategies of the biggest North American professional sport leagues (NBA, NHL, NFL and MLB). With the travel and technology now available, sport leagues are investing in expanding their product offerings. Indeed, it has never been easier for many people to connect with their favourite sport league, team or player. From time to time, a fan who resides a considerable distance from the national market of a particular league is able to attend a pre-season or regular season game or

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watch their favourite player compete. Thus, for many leagues, it is good business practice to provide the non-traditional and non-local fans with consumption opportunities in efforts to grow the brand internationally. The NFL has had a mixed bag of results growing the game outside the United States. For example, the NFL created the World League of American Football (1991), which later became NFL Europe (rebranded in 1998), but this initiative ultimately failed. In more recent years, embarking upon a different strategy, the NFL has had some success at establishing a relationship with international fans in London, through staging games at Wembley Stadium. This began with the inaugural NFL International Series in 2007 with a match between the Miami Dolphins and the New York Giants. Over the past 10 years, the NFL has strategically invested in the International Series. For six consecutive seasons (2007–2012), the NFL had one regular season game outside the United States. The format was expanded at the beginning of the 2013 season to have two games held internationally at Wembley, and in 2014 and 2015 three games were held outside the United States. In 2016, the NFL will see two games at Wembley again (a commitment to play at least two games until 2020), and also one at Twickenham Stadium (home to the England rugby union team). While the rosters of NFL teams are still almost entirely composed of players from the United States, the league continues to remain committed to growing the sport internationally and tickets for the matches in London are very popular. Indeed, the announcement that the NFL partnered with the Rugby Football Union (RFU) to play a minimum of three regular season games at Twickenham over a 3-year period is a sign for an emergent relationship that could spawn new marketing streams for the two sports. The deal, which is the first of its kind for the RFU, starts in October 2016 with the matchup for the first International Series game at Twickenham (NFL, 2016). Considering that an NFL season is composed of 16 regular season games, and games are spread out usually over seven days, it is possible (and perhaps feasible) to one day see a team in the league have a home stadium in England. This is a topic that has been discussed in media articles on both sides of the Atlantic (e.g. Daily Mail, 2014; USA Today, 2014). Of the four bigger professional league based sports in North America, arguably the one that has been the most successful with internationalising their product is the NBA. The NBA has made a concerted effort to have pre-season and regular season games held in various international markets for some time. In 2016, as part of their NBA Global Games campaign, a regular season game between Orlando Magic and Toronto Raptors took place in the O2 Arena in London. In 2015 games were also played in Shanghai (LA Clippers vs Charlotte Hornets), due in part to the prominence and popularity of basketball in the Chinese market and, of course, the sheer size of that market. Indeed, the NBA has made profound efforts to grow the sport internationally in a variety of countries and has taken strides to strategically create a dedicated website in different languages to cater to the international appeal of the league. Perhaps not coincidentally, and very much unlike the NFL, the composition of NBA rosters comprises many different nationalities. In recent years, the recruitment of Division 1 college basketball players from countries in (for example) Africa, South America and Europe has increased (Fay, Velez & Thibault, 2014). This reflects the growing popularity of basketball on a global scale (see Markovits & Rensmann, 2010) and has helped contribute to the international talent on NBA rosters.

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To illustrate how international rosters have become in the NBA, consider the 2015–2016 Toronto Raptors as an example of a melting pot of players where almost half of the roster comprises athletes from outside the United States. The roster consisted of athletes from Lithuania, Argentina, Canada, Democratic Republic of Congo and Brazil. The team has utilised the marketing campaign titled ‘We the North’ to place itself as the only team in the NBA outside the United States, Canada’s team. It is also interesting that, as a marketing campaign, the team has utilised Cantonese correspondence within the local Toronto market to build the client base within the Toronto Chinese community. For Maple Leaf Sport and Entertainment (which owns the team), it is a savvy and strategic decision given the immense scope of the Chinese market in Toronto. However, it is not only the Toronto Raptors that have benefited from the global appeal of basketball. Other rosters around the NBA are also testament to the popularity and growth of the sport across the globe. While some of this could be attributed to the NBA’s efforts to grow the game, basketball has long had a wide population and consumer based appeal (with other professional leagues around the world) and through the FIBA development system. MLB has included athletes from (for example) Japan, the Dominican Republic and South Korea for some years. For its part, MLB has also made concerted efforts to strengthen its brand internationally and provide multi-language information on its website for fans in these areas to access. There has been a swath of pitching talent coming from Japan (e.g. Daisuke Matsuzaka, Yu Darvis, Mashiro Tanaka, Junichi Tazawa and Koji Uehara). Players from the Dominican Republic have had a long and rather storied history of success in MLB (e.g. Pedro Martinez, David Ortiz, Vladimir Guerrero, Albert Pujols). In more recent times, athletes from South Korea have made their way onto MLB rosters (Shin-soo Choo, Chan-ho Park, Byung-hyun Kim, Jung-ho Kang, Byung-ho Park). While MLB has had great success at internationalising its sport, it has had help from the various franchises that regularly host academies in the Dominican Republic, Venezuela and other countries as a way to promote the game and identify talented players (Bravo, Orejan, Velez & de D’amico, 2012; Kurlansky, 2010). The league has invested heavily in growing its position in the international market. One of the more prominent strategies to grow the game of baseball was the launch of the World Baseball Classic in 2006. This was an initiative developed specifically to develop the profile and position of MLB outside North America (Klein, 2006) and has been met with much enthusiasm in many countries around the world. The NHL has also strategically invested in growing the game internationally. As far back as 1938, exhibition games were played in Europe between the Montreal Canadians and Detroit Red Wings (NHL, 2015). Not surprisingly, the NHL has invested in the colder climate areas to grow the game. The sport has tremendous appeal in Russia, and one of the most hotly contested international ice hockey events ever was the international series between Canada and the Soviet Union (known in Canada as the 1972 Summit Series). In this fiercely contested series, which Canada eventually won 4–3–1, the creation of a true global rivalry for the sport’s domination emerged. Although it took several years to see the migration of Soviet talent into the NHL due to the wider political climate, today, Russian hockey players like Alex Ovechkin, Pavol Datsyuk and Evgeni Malkin are NHL stars with legions of fans. For the NHL, having various international showcase events, like the Summit Series and other prominent tournaments like the Winter Olympics, IIHF World Hockey

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Championship and IIHF World Juniors, has seen the game grow in popularity outside North America (in countries such as Finland, Sweden, the Czech Republic and Russia especially). These countries continuously produce top level international players and have many athletes who perform well in the various professional sport leagues around the world in hockey (Swiss, Swedish, German and KHL). One could easily make the case that for the NHL, having its players regularly participate in the Winter Olympic schedule (since Salt Lake City in 2002) has helped to grow the game internationally. During the 2010 Winter Olympics in Vancouver, 141 NHL players represented their countries (NHL, 2015). While the international strategy is abundantly clear for the NHL, the league has also embarked on various strategies to showcase its international talent, including in 1998 when the NHL changed the All-Star Game format to become an international competition (North America vs World All Stars). Today, the NHL regularly plays games in different parts of Europe. Clearly, we see that internationalising the sport leagues in North America is both a strategy and a priority. However, there are also numerous examples of other sport teams and leagues from around the world attempting to develop their presence in North America and/or other markets. Many English Premier League (EPL) football teams have long favoured the United States as a site for pre-season tours and EPL matches are now screened live in the United States and Canada during the course of the season. In 2016, English rugby union sides London Irish and Saracens played against each other in a regular season fixture staged at the Red Bull Arena in New Jersey. We are likely to see other teams from England follow this path in future years. Rugby continues to develop markedly in the United States, with the launch of the first professional domestic league in 2016, and the inclusion of Rugby Sevens in the 2016 Olympic Games offering new opportunities and momentum to develop the sport that was the forerunner to American football. Indeed, the internationalisation of teams, leagues and star players will continue in the years to come.

PROFESSIONAL SPORT LEAGUE STRUCTURES: SAMENESS AND DIFFERENCE Professional sport leagues around the world have both similarities and differences in how they are structured. One of the major differences between how sport leagues are structured globally is whether or not the league is either open (through the promotion and relegation system) or closed (the same teams in the league year after year unless there is expansion or a franchise folding). The North American professional sport leagues are closed systems, with the same teams competing each year in the same league for the same prize. In Europe, the majority of the leagues are open and the relegation system is implemented where bottom teams move down a league and the top teams from the league below move up. In 2016, the EPL produced a remarkable story when Leicester City became league champions despite narrowly avoiding relegation to the league below one year earlier. This was a true ‘underdog’ story and has attracted considerable international media attention. The EPL, which was already arguably the most popular sport league in the world, has received extended global coverage because of this. As a reflection of the global football business, the EPL title was won under the guidance of an

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Italian coach (who had previously coached the Greek national team), with significant financial investment from the Thai owners, and with players from (for example) Algeria, Argentina, Denmark, Germany, Ghana and Japan alongside their English counterparts, once again showing the true international athlete talent collective on one team. Another part of the North American system that differs to some degree from the European system is the idea of revenue sharing among teams in the league. Dietl, Fort and Lang (2012) noted that in the German Bundesliga, television rights are marketed by the league and distributed according to each club’s position at the end of the season, where top teams are rewarded more financially for performance. Within the Champions League, television revenues are also marketed collectively by UEFA and distributed according to a formula, which includes the club’s success as well as the size of the television market in the different countries (Dietl et al., 2012). Those that stay at the top of domestic leagues gain more revenue, causing the possibility of less parity. Given that a weaker or lower-placed team receives a smaller portion of the financial pie, the case could be made that competitive balance diminishes. In a regional context, we also see the biggest and richest clubs dominating European football where the financial rewards for qualification to the Champions League are now getting bigger and bigger as the popularity of the sport continues across major television markets. Meanwhile, in North American professional leagues, revenue sharing, or rather the splitting of operating profits, is more common, particularly in NFL, NHL and NBA (and to a modest degree in MLB). As Wenz (2012) noted, while each of these leagues engages in a form of revenue sharing that differs in formula, all face the same issue in struggling to achieve competitive balance as a result of the ideal, and ‘the highest level of competitive balance that can exist occurs when all teams are equal, and each team has the same probability of winning each contest and of winning league championships’ (p. 479). However, this ideal is not consistent with each team’s individual profit maximisation goal and so perfect competitive balance in a league is near impossible to achieve, particularly when you consider the size of the local market (Wenz, 2012). Whether it is gate revenue sharing, collective sales of media rights or salary caps, each league system operates somewhat differently (Peeters, 2015). In conjunction with the idea of league revenue sharing come the negotiations that take place during each collective bargaining period between the league and its players. In the case of the NHL, they have their own special committee to oversee and adjust league revenue sharing each year with a sophisticated formula to do so. Peeters (2015) noted that gate revenue sharing, for example, while widely used in the US major leagues, is largely absent in European soccer. Another significant difference between the European and North American model of sport is that teams in Europe may compete simultaneously in multiple competitions (e.g. in football, teams can compete in league championships, cup competitions and regional events). As Humphreys and Watanabe (2012) noted, the EPL sees teams compete in league matches for the championship, which has no playoff format and is determined only by the outcome of the regular season league standings. In addition, the teams that compete in the league also compete in other domestic knockout-style tournaments (FA Cup and League Cup), and the teams that finish the highest in the league have the chance to compete within intercontinental competitions like the UEFA Champions League or Europa League. The leading players from these clubs may also represent their national teams in international competitions during the regular season.

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There are other differences of note, such as the sponsorship success of logos on team shirts within the EPL. However, some of the North American sport leagues (like NASCAR and Major League Soccer) have also had similar success in this regard. Most recently, the Philadelphia 76ers of the NBA signed an agreement with StubHub to carry their logo (Canadian Press, 2016). This emergence of sponsored logos on team shirts is likely to be another future revenue stream for the NBA and other professional league teams in North America to adopt.

SOCIAL MEDIA: CHANGING THE SPORT MANAGEMENT GAME Today, the expansion of the World Wide Web and various social media has resulted in the emergence of the ‘connected fan’, where fans can connect with other like-minded individuals (Hull & Lewis, 2014) to both consume and produce content available for others. Boyle (2011) noted that there are some key factors that are shaping the relationship between media and sport organisations, including the marketisation of the media itself, the evolution of the digital landscape and the issues within globalisation including but not limited to the economy, identity and cultural practice/interest in sport. This very rapid development within the information technology domain, and in particular the various social media platforms, is changing sport and sport management. People now have the capability to access all types of information (e.g. player statistics, sport schedules, archived news pictures etc.), which has shaped the way people consume sport and the way organisations must now focus and manage the various platforms on their website and in their facilities. Today, many people now have access to sport information via their smartphones and personal computers. While watching sport on TV is still a viable and most popular option (Know the Fan Report, 2014), fans are increasingly spending more time getting information through more instant access and selfdirected means in a mobile fashion anywhere and at any time. Unlike the local newspaper, this information is not restricted to geography (although geo-blocking can restrict the type of information available such as live action and video). Rights holders and media companies are increasingly looking at ways to work social media into the overall commercial offering for their loyal and new consumer bases locally, nationally and internationally (given the ability of fans to connect from anywhere and at any time). Boyle (2011, p. 18) noted that ‘we are moving to an age where debates about old and new media are becoming outdated and the new paradigm is one that places the relationship between content and screens at its core’. Social media is now at the heart of sport business and digital rights are driving the changes in the delivery and type of content produced by leagues and teams. For even the casual sport fan, the ability to connect and consume information is important. This requires sport organisations to employ staff who can write compelling, trustworthy and interesting stories quickly and on a regular basis. However, what is compelling to an older audience may not be the same thing that is sought by millennials. Whereas perhaps as much as 10 years ago, social media was the domain of younger generations, we now see that the passion and use extends to people of all (or older) ages. Hence, for a sport organisation, this also means that it must have knowledge of not just

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the production of interesting and relevant content, but also the backroom technology needed to ensure that its platforms are up to speed and that (for example) geo-blocking protection is working to help protect it from copyright or licensing issues. The availability and accessibility of connected devices such as live HDTV and Internet streaming allows fans around the world to consume sport ‘live’. The second screen, and screen size (tablets vs phones), can provide people with the action they are seeking in different formats. Rowe and Hutchins (2014) provided an interesting example of watching Usain Bolt win the men’s 100-metre sprint during the 2012 Olympic Games. Although only 80,000 people could have seen the event in ‘live site’, by means of media arrangements the real ‘live’ audience numbers could be measured in billions (or at least hundreds of millions) rather than thousands. Today, people are not limited to spatial locations for sport consumption. The real reach of sport, through various broadcast rights and media platforms, is tremendous. Rowe and Hutchins (2014) noted that the purchasers of broadcast rights for the Olympics were initially concerned that ‘new/social media would splinter audience attention and so reduce the size of the “audited” audiences on which they rely’ (p. 12). Consider that now people who ‘live site’ can share their experience through photo, video and/or text with others almost instantaneously through the likes of Twitter and other shareable content. This technology provides an account of (or close to) ‘real-time’ experiences and exposure on a broad international platform. However, this concern about reducing the size of audience figures proved a moot point, as the conversation between people using social media actually brought people into viewing the live televised event (Rowe & Hutchins, 2014). Social media, in conjunction/simultaneously with traditional media, allows fans to communicate directly and easily with each other and to build identity at a time, place and frequency that best suits the individual. Without doubt, there is a strong convergence of sport organisations using social media. The effect of social media has seen traditional media like newsprint begin to combine social media into their format. Some organisations now use social media to bring in consumer opinions so that the ‘broadcasters’ can interact with the people/fans watching the programme by answering questions. Hence, we see that social media, accompanying traditional modes, are advancing the second screen experience. For sport organisations and or property rights holders, the advent of social media and the new technology that is constantly appearing has created a need to have policies that help manage their products and services. Interestingly, we have seen new policy created for how athletes are allowed to use social media. Professional teams want to have their fans connect with the team and they use the profile of star players to bring fans into the two-way communication. Yet there is also concern about the potentially damaging effects of athletes tweeting inappropriate comments or posting images on social media that could cause offence.

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REVIEW QUESTIONS £Ê ˆÃÌÊ wÛiÊ Ü>ÞÃÊ ˆ˜Ê ܅ˆV…Ê >Ê Ã«œÀÌÊ ÃÞÃÌi“Ê œvÊ ÞœÕÀÊ VœÕ˜ÌÀÞÊ ˆÃɅ>ÃÊ Lii˜Ê ˆ˜yÕi˜Vi`Ê LÞÊ globalisation. ÓÊ 7…>ÌÊÌÞ«iʜvʘiÜʎ˜œÜi`}iʜÀÊ`ˆÃVœÕÀÃiʈ˜ÊޜÕÀÊVœÕ˜ÌÀÞʓ>Þʅ>ÛiÊ>˜Êˆ˜yÕi˜Viʜ˜Ê the global sport environment? ÎÊ ˆÃÌÊ>Ìʏi>ÃÌÊ̅ÀiiÊÜ>ÞÃʈ˜Ê܅ˆV…Ê̅iÊÃÌÀÕVÌÕÀiʜvÊëœÀÌʏi>}ÕiÃÊ`ˆvviÀÃÊLiÌÜii˜Ê ÕÀœ«iÊ >˜`Ê œÀ̅Ê
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SECTION 2

Foundations of sport management

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CHAPTER 6

Creating high performing non-profit sport organisations Popi Sotiriadou and Veerle De Bosscher

Chapter objectives At the end of this chapter, readers should be able to: UÊ œÕ̏ˆ˜iÊ Ì…iÊ Ã«œÀÌÊ “>˜>}i“i˜ÌÊ «ÀœViÃÃÊ œvÊ ˆ`i˜Ìˆvވ˜}É>ÌÌÀ>V̈˜}Ê Ì>i˜Ìi`Ê >̅iÌiÃ]Ê `iÛiœ«ˆ˜}ÉÀiÌ>ˆ˜ˆ˜}Ê Ì…i“Ê >˜`Ê ˜ÕÀÌÕÀˆ˜}Ê Ì…iˆÀÊ œ˜}‡ÊÌiÀ“Ê ÃÕVViÃÃÊ ÕȘ}Ê Ì…iÊ >ÌÌÀ>V̈œ˜]Ê ÀiÌi˜Ìˆœ˜ÉÌÀ>˜ÃˆÌˆœ˜Ê>˜`ʘÕÀÌÕÀˆ˜}Ê­
,/ ®ÊœvÊ̅iÊ>̅iÌiÊ`iÛiœ«“i˜Ìʓœ`iÆ UÊ ÀiVœ}˜ˆÃiÊ Ì…iÊ ÃÌ>Ži…œ`iÀÃÊ ˆ˜ÛœÛi`Ê ˆ˜Ê “>˜>}ˆ˜}Ê …ˆ}…Ê «iÀvœÀ“>˜ViÊ ­*®Ê ëœÀÌ]Ê Ì…iÊ ÀœiÃÊ>˜`Ê̅iÊÀi>̈œ˜Ã…ˆ«ÃÊLiÌÜii˜ÊÃÌ>Ži…œ`iÀÃʜÀʜÀ}>˜ˆÃ>̈œ˜ÃÊ̅>Ìʈ˜yÕi˜ViÊ>̅iÌiÊ `iÛiœ«“i˜ÌÆ UÊ Õ˜`iÀÃÌ>˜`Ê̅iʓ>VÀœ]ʓiÜÊ>˜`ʓˆVÀœÊiÛiÊ`iÌiÀ“ˆ˜>˜ÌÃʜvʓ>˜>}ˆ˜}Ê*ÊëœÀÌÊ>˜`Ê Ì…iÊÜ>ÞÃÊ̅iÞʈ˜yÕi˜ViÊiˆÌiÊ>̅iÌiÃÊ>˜`ÊiˆÌiÊëœÀÌÊÃÞÃÌi“ÃÆ UÊ >««ÞÊ̅iÊÃÌÀ>Ìi}ˆVʓ>˜>}i“i˜ÌÊ«ÀœViÃÃÊ̜Ê*ÊëœÀÌ]Ê>˜`Ê՘`iÀÃÌ>˜`Ê̅iÊ`ˆvviÀi˜ViÃÊ LiÌÜii˜Ê*ÊÃÌÀ>Ìi}ÞÊvœÀ“Տ>̈œ˜Ê>˜`ʈ“«i“i˜Ì>̈œ˜Æ UÊ `ˆvviÀi˜Ìˆ>ÌiÊLiÌÜii˜Ê*ÊÃÌÀ>Ìi}Þ]Ê*ʓ>˜>}i“i˜ÌÊ>˜`Ê*Ê«œˆVÞ°

Key Terms: High Performance Sport; Managing HP Sport; Athlete Attraction, Retention, Transition and Nurturing Processes; HP Sport Strategy Formation and Implementation

INTRODUCTION This chapter outlines the three principles of managing high performance (HP) sport. These principles are (1) the elite athlete development process, (2) the determinants of managing the HP sport environment, and (3) the strategic management of HP sport. Understanding and applying these principles helps sport managers and sport organisations to manage HP sport environments, athletes and team successfully. High performance sport is the top end of sport development and encapsulates any athlete or team that competes at an international or national level (Sotiriadou & Shilbury, 2013). High performance sport management is about identifying, measuring and developing the performance of athletes and teams, and aligning their performance with

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the strategic goals of the sport organisation. Therefore, HP sport management is defined as the process of (1) understanding what is to be achieved (planning), (2) developing the capacity of people and organisations to achieve it (capacity building and leading), (3) providing the required support (resourcing), and (4) offering feedback to athletes and teams to improve their performance (monitoring and evaluating). Planning, capacity building and leading, resourcing, and monitoring and evaluating athlete progress and performances represent the key performance management functions in managing HP sport. Consequently, managing HP sport is the application of performance management processes to the context of HP sport in order to obtain and maintain sporting excellence (Sotiriadou, 2013). The evolution of managing HP sport dates back to the 1950s and the onset of the Cold War. Political and military tensions between Western Bloc (i.e. the United States and its allies) and Eastern Bloc (i.e. the Soviet Union and its allies) powers prompted government support to systematically develop elite sport, to achieve diplomatic objectives (Riordan, 1978). Consequently, in their efforts to demonstrate superiority over American capitalism, communist bloc countries, including the Soviet Union and the German Democratic Republic, invested heavily in HP sport. Since then, systematic talent identification processes, evolutionary sport sciences, specialised coaching, training and facilities, as well as advanced athlete development programmes, became the ‘new’ HP model that many other countries outside the communist bloc, including Australia, Canada and the United Kingdom, have embraced and further advanced. As the ‘know-how’ of managing HP sport and the well- and long-held secrets of developing athletes and nurturing success were disclosed over time, many countries have replicated successful HP systems and structures and improved performances and success. The success of replicating a systematic development of elite athletes from country to country came to a halt when nations realised that there is no ‘one model fits all’ approach to managing HP sport. In the early 2000s, researchers, countries, national sport organisations, high performance managers and coaches began to seek sport-, countryand context-specific mechanisms to manage HP sport. Over the past two decades, the focus in managing HP sport has shifted towards the search for better or new ways to develop elite sport and create a competitive advantage for nations. Due to a lack of HP-specific planning tools, sport organisations and people working within HP sport have long borrowed and applied generic management principles, theories and models (such as situation analysis and strengths, weaknesses, opportunities and threats analysis). As the management of HP sport is an established field of study, generic management principles alone are insufficient to explain the complexity of the field, and the need to develop HP specific practices and theories is clear. It is now well understood that these mechanisms need to be country and context specific for the principles of managing HP sport to generate results. There is a consensus among researchers that the development of elite athletes requires a systematic approach to create pathways that will attract talented athletes and allow them to transition to elite level and maintain elite level success long term (Sotiriadou & Shilbury, 2009; Sotiriadou, Quick & Shilbury, 2006). Consequently, countries, governments, sport systems and sport managers all over the world recognise the need to advance the development of sport in a strategic and systematic way.

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The three principles of managing HP sport that this chapter outlines are: 1

2

3

The principle of elite athlete development process. The elite athlete development process is explained using an organisational approach and by applying the elite athlete Attraction, Retention, Transition and Nurturing model (Sotiriadou, Shilbury & Quick, 2008). The principle of HP sport environments. The HP sport environment and its implications for elite athlete development are explained from a macro, meso and micro level perspective. The principle of strategic management of HP sport. Strategic management in the context of HP sport is explained using HP sport strategy formation and implementation models.

THE THREE PRINCIPLES OF MANAGING HP SPORT The three principles of HP management offer the necessary guidelines for the decisions and actions of HP managers, and represent the underlying factors that form the foundations of successful HP sport management within sport organisations.

Principle 1: elite athlete development process There is a plethora of studies that outline the different athlete development phases, processes and transitions (e.g. Balyi & Hamilton, 2004; Bloom, 1985; Côté, 1999; Côté & Fraser-Thomas, 2007; Wylleman & Lavallee, 2004; see Brouwers, De Bosscher & Sotiriadou, 2012, for a detailed overview of the most influential athlete development and transition models). In their empirical study, Sotiriadou et al. (2008, p. 266) defined elite athlete development as ‘a dynamic process, in which sport development stakeholder involvement provides the necessary sport development strategies and pathways to facilitate the attraction, retention/transition and nurturing’ (ARTN) of athletes. An athlete pathway describes two things: (1) a continuum of their development during the ARTN process (continuum of development), and (2) athlete movement and shifts at various levels or types of involvement with sport (movement in the sport system). The continuum of development during the ARTN process includes talent identification and selection, development of skills and competencies, experiences at national and international level competitions and achievement of elite sporting performance and success. Athlete movement in the sport system, outside a continuum, involves their engagement in other roles than playing sport such as coaches, umpires, commentators, administrators or volunteers, participating at grassroots levels, or moving to another continuum of a different sport (e.g. retiring from gymnastics and moving to diving). Sport organisations can identify athlete development pathways within their sport, and then build programmes and implement strategies that would encourage participation and promote excellence (Richards, 2016). However, creating successful athlete continuation and development through developmental pathways has traditionally been a great challenge for sport administrators and sport organisations that cannot ‘see’ or ‘fill in’ gaps in developmental pathways, and athlete development programmes fail. Some

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sports get the balance of athlete continuation and progression right while others struggle. A typical example in the Australian context is represented in two football codes, the Australian Football League (AFL) and soccer. While both codes are very popular platforms for grassroots participation, pathways to elite AFL game appear to be a lot better structured with better talent retention and transition to elite compared to soccer and the A-League. Consequently, the AFL player participation pathways are: (1) comprehensive (levels of participation that link), (2) inclusive and equitable (accommodates all young people), (3) coherent (prescribes links between levels), (4) developmental (meets children’s needs), and (5) informed (by research and practice) (Australian Football League, 2016). Considerable research has focused on identifying the ideal trajectory for athletes, from the first exposure to fundamental movement skills to elite competitive success (Richards, 2016). Many sports have tried to design pathways and deliver effective support and systems. Yet, understanding the pathway to athletic excellence remains a coveted objective for a range of sporting stakeholders (Gulbin, Weissensteiner, Oldenziel & Gagné, 2013). There are three key reasons that explain why many sports fail to design and deliver successful athlete development pathways. Skills development versus organisational approaches to sport development First, many sports base their athlete development process on coaching or skill development models. As the definition of athlete pathways explains, athlete development can be examined and explained from both a coaching and an organisational perspective. The problem identified in such sports is that they design pathways for various athlete skill development stages and do not take into account the organisational context, stakeholder input (e.g. policy development and strategy implementation), the logistics around sport development throughputs (e.g. training facilities, camps, coaching, competitions and events) and the need or use of other organisational resources (both human and financial). As the definition of athlete development denotes, the examination of stakeholder involvement and sport development strategies is essential for identifying the right pathways. In their overview of the most influential athlete development and transition models, Brouwers, De Bosscher and Sotiriadou (2012) suggested that these models represent various efforts to explain athlete development processes from a coaching, psychological or physical developmental perceptive. Indeed, the literature on talent development models suggests that these athlete development models are the results of sport science, sport coaching and sport psychology studies, without looking at the implication for the organisational context and management. Bloom (1985), for instance, argued that development is a three-staged approach, including initiation, development and perfection. Another often-used model is one from Côté and Fraser-Thomas (2007), which presents the sampling years or entry into sport with deliberate play and practice, recreational years and specialising years. The long-term athlete development model (Balyi, 2001) outlines training stages from learning the fundamentals, to learning to train, training to train and training to compete, then training to win and, eventually, athlete retirement. Then, in a different model, Wylleman and Lavallee (2004) propose an athlete development model that is inclusive of the athletic, psychological, psychosocial and academic

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vocational level. Over the past years, this literature has been complemented with authors highlighting the importance of the context within which development takes place. For example, Baker and Horton (2004) distinguish the primary influences of performance (e.g. genetics, training, psychology) from the secondary influences that indirectly influence performance such as sociocultural factors, cultural importance, instructional resources, familial support and sport maturity. Henriksen, Stambulova and Roessler (2010) shifted researchers’ focus from individual talent to the Athletic Talent Development Environment (ATDE) model that consists of micro and macro levels, athletic and non-athletic domains and the given time frame (past, present and future). These models offer substantial insight into the athlete pathways continuum in terms of skills development, training and micro level driven athlete traits and provide a useful approach to coaches and trainers in designing programmes and training techniques that reflect athlete needs. However, as the definition of an athlete pathway denotes, in addition to understanding the developmental continuum, it is also essential to understand the role of sport organisations at various levels (e.g. international, national, local), and the people within them (including coaches, umpires, commentators, administrators, HP directors or volunteers), on athlete movement in the sport system. In other words, examining athlete development from an organisational perceptive. As such, in sport management literature, Sotiriadou (2010, 2013) proposed the ARTN model previously described. The ARTN is an organisational model of athlete development that examines sport organisations and their efforts to develop athletes as an open system (Sotiriadou, 2013). This means that as sports and sport organisations interact with their environment and exchange or process information with various stakeholders, they operate in an open system where inputs, throughputs, outputs and performances are all important factors to consider. As sport organisations interact with their environment, they draw certain inputs from it (e.g. funding, programmes and policy direction) and convert these to performance outputs. In summary, the ARTN model places sport development within the context of systems theory (Midgley, 2003) (i.e. a process of ‘input throughout output’) and outlines sport development as a process that is inclusive of stakeholder involvement (input) that provides strategies or policies (throughput) for successful pathways (output) (Sotiriadou, Brouwers & De Bosscher, 2016). This means that the ARTN takes into account the environment within which sport organisations develop athletes. Non-empirical versus evidence based approaches to sport development Second, some sports fail to design relevant athlete development pathways because they apply non-empirically derived or outdated models of sport development as opposed to models that consider people’s ‘movements’ in the sport system. The sport development pyramid (Eady, 1993), which is a representation of sport development in the form of a pyramid with mass participation at the base and elite athletes at the top, is a simple nonempirically derived metaphor. Despite the fact that it does not explain the complexities of HP sport development (Green & Houlihan, 2005; Sotiriadou & Shilbury, 2009; van Bottenburg, 2003), it has gained much acceptance because of its simplicity. Indeed, Gulbin et al. (2013) explained that it is common for sports to generalise athlete development as an ascending scale of competition development and this is usually depicted as a

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pyramid or some other closely related linear model. There was a time when a pyramid was quite a logical way of building sport programmes (besides the fact that not all athletes follow that pyramid and drop out earlier from sport). However, the sport environment has changed, with many other stakeholders and organisations being involved in sport (e.g. commercial sector) and the pyramid model does not cover sport development in its entirety. As sport development is a much more convoluted process and far from linear, in order to achieve a more informed understanding of athlete development, researchers have advocated for a more detailed assessment of the development process (e.g. Vaeyens, Lenoir, Williams & Philippaerts, 2008). Furthermore, Abbott, Button, Pepping and Collins (2005) argued that approaches that fail to acknowledge the multifaceted nature of development are in danger of missing the complex, dynamic and linear nature of athlete development. To illustrate the multifaceted nature of sport development from an organisational perspective, simply consider the role of a coach at the different levels of athlete development and the ways their role varies depending on the level at which they operate. During the attraction process coaches have a very different role as the development of basic skills is important. However, their role in developing elite athletes or training them for success is greatly different. Such stakeholder role details, and much more, also needs to be taken into account in developing HP pathways in sport. As Gulbin et al. (2013) at the Australian Institute of Sport have demonstrated, the performance development of an athlete does not always follow a predictable or linear ascent. In their work, Sotiriadou et al. (2016) suggested that there are ‘seven pathways’. Figure 6.1 shows the movement of individuals (elite or not elite) within the sport development space. The seven pathways recognise that people could play sports without the desire to become elite athletes (1). Other people may transition to higher levels of competition (2) and become elite athletes (3). At the end of their careers some athletes may retire and leave sport (4), while others may re-enter a pathway as an athlete in a different sport (5). Athletes or participants can stop participating and work or volunteer in the sport system in various capacities (e.g. coaching or umpiring) (6), or leave the elite level and play sport at grassroots (e.g. at a Masters club) or competitions levels (7) (e.g. Masters Games) (Sotiriadou et al., 2016). Adopting an informed and strategic approach to sport development Third, athlete development pathways need to be (1) informed by the environment and context they will be operationalised in and (2) managed using a strategic approach. An important step in improving the outcomes and cost-efficiency of elite athlete development is having a comprehensive understanding of the factors that contribute to the evolution of talent (Gulbin et al., 2013). Yet, many sport organisations adopt a micro level analysis (e.g. athlete specific traits and individual elements can affect an athlete’s progression and transition along the performance continuum like natural ability and mental toughness). However, in addition to these individual elements that contribute to development, it is equally important to understand how the broader (macro) and wider (meso) environments can also influence development. These macro, meso and micro environments represent Principle 2 and are the focus of the next section. The strategic approach to managing and implementing HP pathways represent Principle 3, which is discussed after Principle 2.

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(6) Re-entry in another capacity

Re-entry Entry paths Exit paths Links for re-entries Entry to another sport

(5)

Elite (3)

Exit

(4)

Exit (7) Entry point(s)

Talent/pre-elite competitions (2)

Grassroots participation (1)

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Principle 2: the determinants of managing HP sport People are not born as athletes; they need to invest great time, energy, resources and passion in their sport, and be surrounded by people who provide a range of support services. Athlete training and competition opportunities hone their skills, and with the guidance of coaches, physiotherapists, doctors, dieticians and sport scientists they improve their performance and enhance their physical and mental readiness. Over time, the support services from national governing bodies, governments, Olympic committees and/or private partners have made working towards a sporting career an attractive proposition to athletes (De Bosscher, Sotiriadou, Brouwers & Truyens, 2015). Talent, whether it is in sport, arts, sciences or other life endeavours, is an individual quality that can only be fully expressed in a specific social environment and with the support of others (van Bottenburg, 2009). Consequently, HP sport management is multifactorial and dynamic in nature, with athletes altering and adapting according to the environment in which they are nurtured, and management needs to take these factors into account. Not all factors influencing the success of athletes can be developed or managed (De Bosscher et al., 2015). Those factors can be classified at three levels: macro, meso and micro level (De Bosscher, De Knop, Van Bottenburg & Shibli, 2006). Macro level determinants Macro level factors influence the dynamic, social and cultural environments in which people live, including the economy, demography, geography and climate, urbanisation, politics and national culture. Research shows that over 50% of international sporting success of countries can be explained by mainly three macro variables: population, wealth (expressed as gross domestic product per capita) and (formerly) communism

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(referring to a particular political system) (e.g. De Bosscher, 2007). These factors cannot be directly influenced and as such are difficult to manage. Some consensus is building among researchers that the impact of these macro level factors has decreased over time. For example, their predictive value to medals was only 41.6% at the London Olympic Games in 2012 (De Bosscher et al., 2015). Nevertheless, macro factors are important to consider and necessary to understand when shaping HP sport strategies (Andersen & Ronglan, 2012; Bergsgard, Houlihan, Mangset, Nødland & Rommetveldt, 2007). While macro level factors have an important effect on HP systems and athletes, they are hard to manage and difficult to evaluate (De Bosscher et al., 2015). In summary, commercial, political, social and cultural factors are closely intertwined with the management of HP sport and affect the operation of all sport organisations (public, non-profit or commercial sectors) at national or international levels (Houlihan, 2013). This is why HP systems in different sports have similar goals, but different tracks on how these systems are developed and, consequently, how they are managed (Andersen & Ronglan 2012; De Bosscher et al., 2015). How these macro level factors influence HP management and the way managers deal with them is hard to determine or generalise, because they are complicated, multilayered and country, sport and context specific. The HP environment is also dynamic because initial policy decisions can determine a future policy choice, which is referred to as ‘path dependency’ (Houlihan & Green, 2007). Therefore, managers need to formulate the strategies that best fit the historical, cultural and political context of the HP sport system. Meso level determinants As nations have become strategic in the way they produce elite athletes, they rely less on these uncontrollable macro level variables and more on variables that are widely regarded as being components of an HP sport system. As such, HP sport has attracted attention from governments and performance managers around the world who increasingly believe that ‘elite sport success is developable or manageable’ (De Bosscher et al., 2015, p. 39). HP management can be achieved more effectively as the result of proactive resourcing and creation of an HP system, rather than simply relying on passive macroeconomic variables. This influence is exercised at the meso level. An increasing number of studies have been conducted to identify how HP management and policies can influence success at a national policy level (e.g. Brouwers, Sotiriadou & De Bosscher, 2015a; De Bosscher et al., 2006; De Bosscher, Bingham & Shibli, 2008; Digel, Burk & Fahrner, 2006; Oakley & Green, 2001) and to understand elite sport from a broader political or historical perspective (e.g. Andersen & Ronglan, 2012; Bergsgard et al., 2007; Green & Houlihan, 2005; Houlihan & Green, 2007) and at a sport-specific level (e.g. Andersen & Ronglan, 2012; Böhlke, 2007; Böhlke & Robinson, 2009; Brouwers, Sotiriadou & De Bosscher, 2015b; Robinson & Minikin, 2011; Sotiriadou, Gowthorp & De Bosscher, 2014; Truyens, De Bosscher, Heyndels & Westerbeek, 2013), as ‘success of countries tends to be concentrated in sports or specific events, in other words, countries typically specialize’ (Truyens et al., 2013, p. 1). What is concluded from these studies is that there are broad common categories of how HP systems can be managed; these factors have been clustered in different ways depending on the scope (see De Bosscher et al., 2015).

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One of the meso level models frequently used by performance managers and policy makers is the SPLISS (Sport Policy factors Leading to International Sporting Success) model (De Bosscher et al., 2006). This model identifies nine pillars and specifies 96 critical success factors (CSFs) that contribute to improving the HP sporting success of a nation (De Bosscher et al., 2015). Specifically, financial support (pillar 1) and an integrated approach to policy development through organisation, structure and governance (pillar 2) are necessary conditions for the development of athletic careers. Pillars 3, 4 and 5 represent the sequences of the athlete development stages, including foundation and participation (pillar 3), talent identification and development systems (pillar 4) and athletic and post-career support (pillar 5). Investment in the four remaining pillars (pillar 6, training facilities; pillar 7, provision for and development of coaches; pillar 8, national and international competition structure; pillar 9, scientific research and innovation) is essential for the development of elite athletes. The model has also been applied to other contexts at a sport-specific level (e.g. athletics, Truyens et al., 2013; tennis, Brouwers et al., 2015b; canoe, Sotiriadou et al., 2014; judo, Mazzei, 2016), or Paralympics at a state level (Brazil; Böhme et al., in press). When these nine pillars are compared to recent international comparative studies on elite sport systems (e.g. Andersen & Ronglan 2012; Bergsgard et al., 2007; Digel et al., 2006; Houlihan & Green, 2007), they show a high degree of overlap with what other authors consider to be the elements of an HP system. The main difference is that the nine pillars in the SPLISS study are underpinned by CSFs and subfactors, and that the focus is on meso level factors in relation to the success of countries. It is important to stress that the nine pillars of the SPLISS model are general dimensions for which it can be argued that all factors are manageable and can be classified under one of these pillars. De Bosscher et al. (2006, p. 209) state that the SPLISS function is ‘not deterministic: rather it aims to identify pivotal issues and to generate crucial questions in a benchmark study of elite sport systems’. The SPLISS model is therefore dynamic and will continuously be adapted over time, over different sport settings, different sport contexts and situations. Micro level determinants While meso level factors influence the success of nations, micro level factors influence the success of individual athletes, ranging from the influence of inherited genes to the social influence of parents, friends and coaches. Some micro level factors can be controlled, such as training techniques or tactics, and others cannot, such as genetics. There is much literature explaining the personal achievements of athletes (e.g. Conzelmann & Nagel, 2003; Wylleman & Lavallee, 2004), mainly in sport science and sport coaching research. This literature helps understand what determines athletes’ performance holistically from an individual athlete perspective, and clearly has consequences for the organisation of HP sport at a meso level. This research is focused on the individual athlete or their close environment and examines the discovery and development of athletic talent (Henriksen et al., 2010). Over time, this literature has been complemented with authors highlighting the importance of the context within which development takes place. Henriksen et al.’s (2010) holistic model is interesting because, although it takes a micro

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level approach, it uses systems theory (Patton & McMahon, 2006) to shift researchers’ focus from individual talent to the ATDE model. Starting from the athlete at the centre of the model, it also describes the factors that influence talent development at the micro level (managers, coaches, clubmates) and the personal environment (peers, family, school). In addition, it adds the meso level (e.g. sport federations and clubs) and macro level (education and sport culture) factors. There are links between meso and micro level factors. Well-considered micro level factors provide a fertile ground for HP management at the meso level to be effective. When, for instance, coaches adopt age-appropriate sport development programmes that take into account the athlete’s physical and psychological stages of development (i.e. micro level factors), inevitably they work towards and allow for optimal talent development and identification processes (i.e. meso level factors that lead to athlete success). Similarly, meso level policies, such as athlete support services and sport scientists, cater for athlete-specific needs at a micro level. These micro and meso level factors, and the ways they link, are discussed in the following case study on equestrian sport.

Case study 1: micro and macro level analysis

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ÃÊ >˜Ê *Ê Ã«œÀÌÊ “>˜>}iÀÊ ÜœÀŽˆ˜}Ê ˆ˜Ê iµÕiÃÌÀˆ>˜Ê ëœÀÌ]Ê Ü…>ÌÊ >ÀiÊ Ì…iÊ «œÌi˜Ìˆ>Ê >̅iÌi‡Ê ëiVˆwVʘii`ÃÊޜÕÀÊ>̅iÌiÃʓ>ÞÊv>ViÊ>ÌÊ>ʓˆVÀœÊiÛi¶ Ê >Ãi`ʜ˜Ê̅iÊÃi݇ʈ˜Ìi}À>Ìi`ÊÃÌÀÕVÌÕÀiʜvÊiµÕiÃÌÀˆ>˜ÊëœÀÌÊ>˜`Ê̅iÊLÀœ>`Ê>}iÊÀ>˜}iʜvÊ >̅iÌiÃÊ«>À̈Vˆ«>̈˜}Ê>ÌÊiˆÌiʏiÛi]Ê܅>ÌʓiÜʏiÛiÊÃÌÀ>Ìi}ˆiÃÊܜՏ`ÊޜÕÊ>`œ«ÌÊ>ÃÊ>˜Ê*Ê “>˜>}iÀÊܜÀŽˆ˜}ʈ˜ÊiµÕiÃÌÀˆ>˜ÊëœÀ̶ Ê /…ˆÃÊV>ÃiÊÃÌÕ`ÞÊÀiۈiÜÃÊ̅iÊÀiiÛ>˜ViÊ>˜`Ê>««ˆV>̈œ˜ÊœvÊ̅iÊ/
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Principle 3: the strategic management of HP sport The aforementioned macro, meso and micro level analyses are an essential step, an initial assessment, in informing HP sport strategies. HP sport is characterised by the effective amalgamation and synergy of elements including financial and managerial support, coaching, sport sciences and sport medicine support, talent identification and athlete pathways, training facilities and equipment, and competitions. Nations are becoming more strategic in the way they produce elite athletes (De Bosscher et al., 2008). Consequently, national sport systems have moved beyond the mere application of sport sciences and coaching as a sole base for elite athlete success. There is a rapid recognition and overwhelming evidence to suggest that the ‘new’ point of difference and competitive advantage for nations is effective management and governance (e.g. Ferkins, Shilbury & McDonald, 2005; Hoye, 2007) of HP sport and all the processes involved. An HP sport strategy reflects this need to create a point of difference. A well-prepared HP sport strategy needs to be aligned with and complement the overall strategy and strategic plan of a sport organisation. It needs to convey the organisation’s goals in a simple and clear way, so that the organisation’s members can embrace it and implement its goals. These goals need to be achievable, using resources in effective ways, and timebound in order for the organisations to be able to measure its successes (i.e. monitor and evaluate key performance indicators) and understand the areas where it needs to improve and the ways it can do so for sustainable progress and success. However, HP sports operate in fast-changing and highly volatile environments. This is why sport organisations, coaches, athletes and teams are required to work in innovative ways and collaborate with other organisations in order to achieve better results and gain a competitive advantage. Strategies, policies and goals It is important to stress that many people either are confused about terms strategy and policy or use them interchangeably, but they are not the same. Policy provides the framework for strategy formulation, or in other words the direction. Hence, policy is also regarded as a mini mission statement (or a set of principles and rules) that directs organisations’ decisions and acts as a basis for guiding actions. If you think about achieving elite athlete development, policy is often engaged with the ‘ways’ to do it, strategy is concerned with the ‘means’ and planning is about the delivery of the ‘ends’. Therefore, in simple terms, sport policies offer the framework for sport organisations to shape and action strategies that will enable them to achieve their goals. For instance, a national junior sport policy offers sport organisations and other providers of junior sport a framework for developing junior sport in a country. The implementation of that framework is set out around specific strategies that relate to developing junior sport in that country. Then, planning is about making choices about how to use the organisation’s resources and the required actions to achieve the choices made in the strategy. Hence, strategy is the ‘game plan’, chosen to achieve the organisational objectives or attain a competitive advantage.

ˆ}…Ê«iÀvœÀ“ˆ˜}ʘœ˜‡«ÀœwÌÊëœÀÌʜÀ}>˜ˆÃ>̈œ˜ÃÊ Ê 87

Strategy formulation, implementation and evaluation The principle of strategic management of HP sport includes the formulation, implementation and evaluation of strategies in order to achieve a sport’s or a nation’s policy direction. Sport organisations and sport managers often reflect on what is ‘management’ and how is ‘strategic management’ different from management? Strategic management is defined as the set of decisions and actions that result in the formulation and implementation (strategic) of plans designed to achieve a company’s objectives, and involves the planning, directing, organising, and controlling (management) of a company’s strategyrelated decisions and actions (Pearce, Robinson & Subramanian, 2000). This definition can be split into two halves. The first half outlines the key traits of strategy (i.e. formulation and implementation of plans) and the second half outlines the key functions of management (i.e. planning, directing, organising and controlling). Specifically, strategic management involves three key stages, each with various steps: (1) strategy formulation, (2) strategy implementation, and (3) strategy evaluation. HP strategy formulation involves the development of the organisation’s (or team’s or athlete’s) mission; what the organisation or team does and what it aims to achieve. Remember that according to Principle 2, an analysis of the organisation’s macro, meso and micro environment within which it operates is also conducted in order to inform strategy formulation. Then, the organisation or team is ready to develop HP strategies that boards of directors and HP managers deem appropriate for the direction the organisation, team or athlete ought to take to achieve their goals. Once sports have completed their HP strategy formulation, HP managers need to facilitate strategy implementation. Strategy implementation is the process of putting the formulated strategies into action. Managers are required to communicate the strategies to coaches, athletes and sport scientists in order to execute HP activities that will yield the best results. The success and effectiveness of HP strategies depend on how well the managers apply management functions to action. As such, HP strategy implementation relates to the manager’s ability to manage and motivate the team or athletes, communicate the vision and goals of the organisation and everyone who operates within the organisation, monitor performances and detect or rectify issues in a timely fashion. Strategy evaluation is the process of measuring performances, analysing variance between set and achieved goals and taking corrective action where goals have not been achieved. Strategy evaluation helps sport organisations determine if the strategies lead to achieving the mission and goals. The process begins by evaluating if the results that have been realised have been successful. However, evaluation in the area of managing high performance is not easy as it would be in a for-profit organisation where sales and profits or shareholder returns are some of the key measures. Specifically, for some nations the mere fact of having athlete representation at the Olympic Games is a significant outcome. For other nations, winning fewer than, say, 40 Olympic medals is seen as failing to meet their goals. This is a significant point in the strategy cycle because it illustrates how each nation, sport organisation, athlete or team is required to set goals based on their own environmental evaluation (see Principle 2). In conclusion, Principle 3 represents the final stage in managing HP sport. Yet, it needs to be informed by the macro, meso and micro level analyses (Principle 2) and a

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comprehensive analysis of the existing elite athlete development process (Principle 1). Significantly, this section explains that there is a distinction between HP sport policies and HP sport strategies since elite sport policies help sport organisations to determine ‘what is to be done’. HP strategies represent the plan of action and help operationalise the policies into actions that will help achieve goals. Policy is a guideline to achieve objectives whereas strategy is about method of understanding environment and making a plan for what needs to be done to achieve the objectives outlined in the policy. For example, the SPLISS model offers a useful policy framework because it lends itself as the guideline for HP managers to operationalise and action strategies for HP sport.

Case study 2: managing HP sport in Papua New Guinea

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°]Ê ÕÌ̜˜]Ê °]Ê*i««ˆ˜}]Ê°Ê°ÊEÊ œˆ˜Ã]Ê °Ê­Óääx®°Ê1˜˜>ÌÕÀ>ÊÃiiV̈œ˜\Ê/>i˜Ìʈ`i˜ÌˆwV>̈œ˜Ê>˜`Ê `iÛiœ«“i˜Ìʈ˜ÊëœÀÌ°ÊNonlinear Dynamics, Psychology, and Life Sciences, 9­£®]ÊÈ£qnn°
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92

Popi Sotiriadou and Veerle De Bosscher


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Ê ÀiۈiÜÊ œvÊ «Àˆ“>ÀÞÊ >˜`Ê ÃiVœ˜`>ÀÞÊ ˆ˜yÕi˜ViÃÊ œ˜Ê ëœÀÌÊ iÝ«iÀ̈Ãi°Ê High Ability Studies, 15­Ó®]ÊÓ££qÓÓn° >Þˆ]Ê°Ê­Óä䣮°Ê-«œÀÌÊÃÞÃÌi“ÊLՈ`ˆ˜}Ê>˜`ʏœ˜}‡ÊÌiÀ“Ê>̅iÌiÊ`iÛiœ«“i˜Ìʈ˜Ê ÀˆÌˆÃ…Ê œÕ“Lˆ>°ÊCanada: SportsMed BS]Ê£™{° >Þˆ]Ê°ÊEÊ>“ˆÌœ˜]Ê
°Ê­Óää{®°Êœ˜}‡ÊÌiÀ“Ê>̅iÌiÊ`iÛiœ«“i˜Ì\Ê/À>ˆ˜>LˆˆÌÞʈ˜ÊV…ˆ`…œœ`Ê>˜`Ê>`œiÃVi˜Vi°Ê Olympic Coach, 16­£®]Ê{q™° °Ê­Óä£{®°Ê7œÀ`ÊV>ÃÃÊ«iÀvœÀ“>˜Vi°Ê,iÌÀˆiÛi`Ê££Ê
Õ}ÕÃÌÊvÀœ“ÊÜÜÜ°Liv°Vœ°ÕŽÉ*iÀvœÀ“>˜Vi‡Ê*Àœ}À>““i° iÀ}Ã}>À`]Ê °Ê
°]ʜՏˆ…>˜]Ê °]Ê>˜}ÃiÌ]Ê*°]Ê ©`>˜`]Ê-°Ê°ÊEÊ,œ““iÌÛi`Ì]Ê°Ê­ÓääÇ®°ÊSport policy: A comparative analysis of stability and change°Ê"ÝvœÀ`\Ê ÕÌÌiÀܜÀ̅Êiˆ˜i“>˜˜° œœ“]Ê °Ê-°Ê­ `°®°Ê­£™nx®°ÊDeveloping talent in young people°Ê iÜÊ9œÀŽ°Ê >>˜Ìˆ˜i° œœ“]Ê °Ê-°ÊEÊ-œÃ˜ˆ>Ž]Ê°Ê
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94

Popi Sotiriadou and Veerle De Bosscher

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CHAPTER 7

Controlling and managing organisational performance The viable system model Winnie O’Grady and John Davies Chapter objectives After completing this chapter you should be able to: UÊ >À̈VՏ>ÌiÊ Ì…iÊ ˜>ÌÕÀiÊ œvÊ Ì…iÊ Ûˆ>LiÊ ÃÞÃÌi“ÃÊ “œ`iÊ ­6-®Ê >ÃÊ >˜Ê >ÌiÀ˜>̈ÛiÊ “i>˜ÃÊ œvÊ depicting organisations as systems – their design, structure and processes; UÊ >À̈VՏ>ÌiÊ Ì…iÊ ˆ“«œÀÌ>˜ÌÊ ÃÞÃÌi“ÃÊ Vœ˜Vi«ÌÃÊ >˜`Ê ÃÞÃÌi“ˆVÊ Ài>̈œ˜Ã…ˆ«ÃÊ Ì…>ÌÊ V…>À>VÌiÀˆÃiÊ organisational viability and effectiveness, in particular: Ê UÊ Ì…iÊÃÞÃÌi“ˆVÊv՘V̈œ˜ÃÊ̅>ÌÊ>Êۈ>LiÊÃÞÃÌi“ÃÊV>ÀÀÞʜÕÌ Ê UÊ Ì…iʈ˜yÕi˜ViʜvÊVœ““Õ˜ˆV>̈œ˜Ãʜ˜ÊœÀ}>˜ˆÃ>̈œ˜>Êœ«iÀ>̈œ˜ÃÆ UÊ ÕÃiÊ̅iÊ6-Ê>ÃÊ>Ê`ˆ>}˜œÃ̈VÊ̜œÊvœÀÊ՘`iÀÃÌ>˜`ˆ˜}ʅœÜʜÀ}>˜ˆÃ>̈œ˜>Ê>˜`Êi˜ÛˆÀœ˜“i˜Ì>Êv>V̜ÀÃʈ˜yÕi˜ViʜÀ}>˜ˆÃ>̈œ˜>Ê«iÀvœÀ“>˜Vi]Ê«>À̈VՏ>ÀÞ\ Ê UÊ Ì…iÊÃÞÃÌi“ˆVʈ“«>VÌʜvʜÀ}>˜ˆÃ>̈œ˜>Ê«ÕÀ«œÃi]ʈ`i˜ÌˆÌÞ]ÊۈȜ˜]ÊÛ>ÕiÃ Ê UÊ Ê̅iÊ ÃÞÃÌi“ˆVÊ ˆ˜yÕi˜ViÊ œvÊ Vœ““Õ˜ˆV>̈œ˜ÃÊ >˜`Ê ˆ˜vœÀ“>̈œ˜Ê yœÜÃÊ ˆ˜Ê `iÛiœ«ˆ˜}Ê œÀ}>˜ˆÃ>̈œ˜>ÊVœ…iȜ˜Ê>˜`ÊVœ˜ÌÀœi`Ê«Àœ}ÀiÃÃÊ̜Ü>À`ÃʜÀ}>˜ˆÃ>̈œ˜>Ê}œ>Ã°

Key Terms: Organisational Design; Systems Thinking; Sustainability; Management Control; Viable Systems Model

INTRODUCTION This chapter introduces the viable system model (VSM) of Stafford Beer (1979, 1981, 1985) as a tool for understanding factors influencing performance in organisations. The model is used to depict and analyse the effectiveness of organisational structures observed in well-known sport organisations. The discussion reveals the impact of observed systemic structure on organisational performance and effectiveness. The case situations presented in this chapter are drawn from contemporary and historical sport organisations – notional, virtual and real. An appendix presents a set of questions for evaluating the structure of sport organisations.

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The chapter is structured first to outline the VSM, a well-established framework (Beer, 1979, 1981, 1985) for designing and diagnosing organisational structure, i.e. the functions and information flows comprising organisations.1 The chapter complements prior work demonstrating the value of the VSM for examining the structure and functioning of sport organisations (Davies, 1997a, 1997b, 1999; Haggerty, 1988). In particular, it applies the model to a series of sport organisations to understand the impact of systemic structure and communications on performance. The analyses reveal instances of systemic function and dysfunction, and illustrate how communications between subsystems impact organisational performance. The case situations have been chosen to illustrate the value and usefulness of the VSM for evaluating different aspects of organisational design, functioning and effectiveness. Finally, the chapter draws on the lessons learned to offer a process to guide the design of sport organisations and thereby provide useful insights about organisational performance and effectiveness.

AN OVERVIEW OF THE VSM A full description of the VSM is provided in Beer’s major works (1979, 1981, 1985) and in more recent interpretations in Christopher (2007) and Hoverstadt (2008). A parsimonious outline of the VSM and its conceptual underpinnings is provided here. A schematic representation is shown in Figure 7.1. The VSM is based on cybernetics, defined as ‘the science of effective organisation – the science of communication and control, in the animal and machine’ (Beer, 1985, p. ix). The cybernetic building blocks pertinent to the examples in this chapter, namely viability, complexity, single and double-loop learning, variety, requisite variety and variety engineering, are explained briefly in Table 7.1. Organisations that conform to cybernetics principles are able to self-regulate. They can respond to changes in the environment so that they maintain progress towards their goals and purposes, i.e. they are able to remain in control. Being in control implies the organisation behaves as expected and can achieve its intended outcomes. Obversely, being out of control implies the organisation does not act or perform as expected or uphold organisational values, and has divergent goals and purposes. Beer (1979) recognised that clear communication of organisational purpose, identity, visionary values (ends) and missionary values (means) are critical for achieving control. Accordingly, he investigated how managing communications, both information channels and information, influence performance and the fulfilment of purpose. Poorly designed communications force managers to wade through too much information, make decisions based on incomplete information and delay decisions. Well-designed communications provide information and advice that is complete, actionable and timely. Beer’s conceptualisation of organisational structure differs from other representations focused on managerial hierarchies, operational and functional compartmentalisation and authority relationships. The viable systems structure encompasses organisational identity, purpose, values, systemic functions, communication channels and information flows, as discussed next.

>˜>}ˆ˜}ʜÀ}>˜ˆÃ>̈œ˜>Ê«iÀvœÀ“>˜ViÊ Ê 97 Meta-system S5 decides: identity, purpose, vision, mission, values

Environment System 5

S4 strategises: gathers intelligence and engages in strategy development

System 4 Future environment S3* Local environment

System 3 S2

S3 resources and supports the carrying out of purpose engages in financial and operational planning and control S3* informal audit-like monitoring and intelligence gathering S2 informal and formal coordination

S1 operations S1 units deliver on purpose

FIGURE 7.1Ê -V…i“>̈VÊÀi«ÀiÃi˜Ì>̈œ˜ÊœvÊ iiÀ½ÃÊ6ˆ>LiÊ-ÞÃÌi“ÃÊœ`iÊqÊ̅iÊ6-

Note ÞÊ Vœ˜Ûi˜Ìˆœ˜]Ê 6-Ê `ˆ>}À>“ÃÊ ˆ˜VÕ`iÊ Ì…iÊ i˜ÛˆÀœ˜“i˜Ì]Ê Ãi«>À>ÌiÊ Ì…iÊ iÌ>‡-ÞÃÌi“Ê ­,iVÌ>˜}i®Ê vÀœ“Ê -£Ê "«iÀ>̈œ˜ÃÊ ­ ˆÀVi®]Ê >˜`Ê `i«ˆVÌÊ Vœ““Õ˜ˆV>̈œ˜Ê V…>˜˜iÃÊ >˜`Ê vii`L>VŽÊ œœ«ÃÊ >ÃÊ `ˆÀiVÌi`Ê >ÀVÃÊ œÀÊ ˆ˜iÃ°Ê 7iÊÀi«ÀiÃi˜ÌÊÃÞÃÌi“ˆVÊL>>˜Vi]ÊÃ>ÞÊLiÌÜii˜Ê-x]Ê-{Ê>˜`Ê-Î]Ê>ÃÊLÕiÊÀiVÌ>˜}iÃʜvÊȓˆ>ÀÊÈâi°Ê˜Ê̅iÊ V>ÃiÊ ÃˆÌÕ>̈œ˜ÃÊ ÌœÊ vœœÜ]Ê ÃÞÃÌi“ˆVÊ ˆ“L>>˜ViÊ ˆÃÊ `i˜œÌi`Ê LÞÊ ÀiVÌ>˜}iÃ]Ê VˆÀViÃÊ œÀÊ ÌÀˆ>˜}iÃÊ œvÊ `ˆÃ«Àœ‡ «œÀ̈œ˜>ÌiÊÈâið

THE VSM Beer (1979, 1981, 1985) conceptualises viable systems as networks of communication channels bonding five necessary and sufficient subsystems referred to as systems 1 to 5. The VSM diagrammatically represents organisational structure portraying both systemic functions and the communications linking them, as shown in Figure 7.1. System 1 (S1) comprises the autonomous operational units that create organisational value as envisioned by the organisation’s identity and purpose. The remaining four subsystems create a Meta-System to guide, support and regulate the operation of System 1. System 5 (S5) establishes and promulgates the identity, vision, direction, purpose and mission of the organisation and represents these to the wider external and internal environments, including the S1 units. System 4 (S4) is responsible for intelligence, strategising and strategy development. System 3 (S3) comprises operational planning, resourcing, monitoring, control and audit functions relating to the autonomous units. System 2 (S2) effects overall coordination of and between autonomous units. The cases presented here illustrate how the VSM and its schematic representations can be usefully applied to diagnose key managerial issues. The selected situations range from historic to contemporary. Information used in the VSM analyses is drawn from a range of sources including magazines and newspaper accounts, commissioned reports

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TABLE 7.1Ê œ˜Vi«ÌÕ>Ê՘`iÀ«ˆ˜˜ˆ˜}ÃʜvÊ̅iÊ6-

£ Viability and environmental complexity ViabilityÊÀiyiVÌÃÊ>˜ÊœÀ}>˜ˆÃ>̈œ˜½ÃÊ>LˆˆÌÞÊ̜ʓ>ˆ˜Ì>ˆ˜ÊˆÌÃʜܘÊi݈ÃÌi˜Vi°Ê/œÊLiÊۈ>LiÊ organisations must be able to respond to their environmental complexity including i˜ÛˆÀœ˜“i˜Ì>ÊVœ˜`ˆÌˆœ˜ÃÊ̅>Ìʅ>`ʘœÌÊLii˜ÊvœÀiÃii˜Ê܅i˜Ê̅iÊÃÞÃÌi“ÊÜ>Ãʼ`iÈ}˜i`½° 2 Single and double-loop learning œÃÌʜÀ}>˜ˆÃ>̈œ˜ÃÊ>ÀiÊ«ÀœwVˆi˜ÌÊ>ÌÊȘ}i‡œœ«Êi>À˜ˆ˜}Ê̅>Ìʈ˜ÛœÛiÃÊÃiÌ̈˜}ʜLiV̈ÛiÃÊ>˜`Ê “œ˜ˆÌœÀˆ˜}Ê«Àœ}ÀiÃÃÊ̜Ü>À`ÃÊ̅i“°ÊiÜÊ>ÀiÊVœ“«iÌi˜ÌÊ>ÌÊdouble-loop learningÊ܅ˆV…ÊÀiˆiÃÊ œ˜ÊÀi}Տ>ÀʵÕiÃ̈œ˜ˆ˜}ʜvÊ̅iÊ>««Àœ«Àˆ>Ìi˜iÃÃʜvÊVÕÀÀi˜ÌʜLiV̈ÛiÃÊiëiVˆ>Þʈ˜Êˆ}…ÌʜvÊ i˜ÛˆÀœ˜“i˜Ì>ÊV…>˜}i°Ê œÕLi‡œœ«Êi>À˜ˆ˜}Ê՘`iÀ«ˆ˜ÃÊÃÌÀ>Ìi}ˆÃˆ˜}Ê­ iiÀ]Ê£™x™®°Ê/…iÊ concepts of viability and double-loop learningÊ>Àiʏˆ˜Ži`°Ê"À}>˜ˆÃ>̈œ˜ÃÊ܈̅Ê>ÊV>«>VˆÌÞÊvœÀÊ double-loop learning can adapt and remain viableʜÛiÀʏœ˜}Ê«iÀˆœ`ÃʜvÊ̈“i°ÊDouble-loop learningʈÃÊLՈÌʈ˜ÌœÊ̅iÊ6-Êۈ>ʈ˜ÌiÀ>V̈œ˜ÃÊLiÌÜii˜Ê̅iÊÃÌÀ>Ìi}ˆVʈ˜Ìiˆ}i˜ViÊ}>̅iÀˆ˜}Ê >˜`ʜ«iÀ>̈œ˜>ÊVœ˜ÌÀœÊv՘V̈œ˜Ã° Î Complexity, variety and requisite variety Variety is a measure of complexity and indicates the number of distinguishable states in the i˜ÛˆÀœ˜“i˜ÌʏˆŽiÞÊ̜ʈ“«>VÌʜ˜Ê̅iÊ>V…ˆiÛi“i˜ÌʜvʜÀ}>˜ˆÃ>̈œ˜>Ê}œ>ÃÊ>˜`Ê«ÕÀ«œÃiÃÊ ­ iiÀ]Ê£™n£]Ê«°Ê{£®°ÊVarietyÊV>˜Êœ˜ÞÊLiÊ`iw˜i`ʈ˜ÊÀi>̈œ˜Ê̜Ê>Êpurpose° Viability depends on an organisation maintaining requisite varietyÊ܈̅ʈÌÃÊi˜ÛˆÀœ˜“i˜Ì°Ê /…>ÌʈÃ]ʈÌʓÕÃÌʅ>ÛiÊ̅iÊV>«>VˆÌÞÊ̜ÊÀi뜘`Ê̜ÊV…>˜}ˆ˜}Êi˜ÛˆÀœ˜“i˜Ì>ÊÃÌ>ÌiÃÊ܅ˆiÊ Vœ˜Ìˆ˜Õˆ˜}Ê̜Ê>V…ˆiÛiʈÌÃÊ}œ>ÃÊ>˜`Ê«ÕÀ«œÃið Requisite varietyÊÈ}˜ˆwiÃÊ>˜ÊœÀ}>˜ˆÃ>̈œ˜ÊV>˜ÊÃÕVViÃÃvՏÞÊÀi뜘`Ê̜ʈÌÃÊi˜ÛˆÀœ˜“i˜ÌÊ ­>VŽÃœ˜]Ê£™n™]Ê«°Ê{£{®Ê>˜`Êremain in control° { Variety engineering 6>ÀˆiÌÞÊi˜}ˆ˜iiÀˆ˜}ʈÃÊ̅iÊ«ÀœViÃÃÊ̅ÀœÕ}…Ê܅ˆV…Ê>˜ÊœÀ}>˜ˆÃ>̈œ˜ÊÃiiŽÃÊ̜ʓ>ˆ˜Ì>ˆ˜Ê ÀiµÕˆÃˆÌiÊÛ>ÀˆiÌÞ°ÊÌʈ˜ÛœÛiÃʈ˜VÀi>Ș}Ê­>“«ˆvވ˜}®Ê̅iʜÀ}>˜ˆÃ>̈œ˜½ÃÊ>LˆˆÌÞÊ̜ÊÀi뜘`ÊÌœÊ i˜ÛˆÀœ˜“i˜Ì>ÊÛ>ÀˆiÌÞÊ>˜`ɜÀÊÀi`ÕVˆ˜}Ê­>ÌÌi˜Õ>̈˜}®Ê̅iÊi˜ÛˆÀœ˜“i˜Ì>ÊÛ>ÀˆiÌÞʈÌʅ>ÃÊÌœÊ …>˜`iÊ­ iiÀ]Ê£™nx]Ê««°ÊÓÎqÎ{®°Ê
ÊëœÀÌʜÀ}>˜ˆÃ>̈œ˜ÊV>˜]ÊvœÀÊiÝ>“«i]Ê>“«ˆvÞʈÌÃÊ>LˆˆÌÞÊ to respond to conditions in a semi-professional league by improving its playing squad, «>ÞiÀÊ>˜`ÊVœ>V…Ê`iÛiœ«“i˜ÌÊ«Àœ}À>““iʜÀʈÌÃÊw˜>˜ViðÊ
ÌiÀ˜>̈ÛiÞ]ʈÌÊV>˜Ê>ÌÌi˜Õ>ÌiÊ Ì…iÊÛ>ÀˆiÌÞÊLiˆ˜}Êv>Vi`ÊLÞÊ>ۜˆ`ˆ˜}ÊiˆÌiÊVœ“«ï̈œ˜ÊœÀÊ܈̅`À>܈˜}ʈÌÃÊÌi>“ÃÊ̜ÊÜVˆ>Ê }À>`iðÊ"À}>˜ˆÃ>̈œ˜ÃÊV>˜Ê̅ÕÃÊi˜}ˆ˜iiÀÊÛ>ÀˆiÌÞʈ˜Ê`ˆvviÀi˜ÌÊÜ>Þð

and informal discussions with knowledgeable individuals. The cases are intended to illustrate how the VSM guides the diagnosis of an organisation rather than to judge the effectiveness of the organisations per se.

CASE EXAMPLE 1: AUCKLAND FOOTBALL KINGZ IN 2003 – A CASE OF SYSTEMIC FAILURE The Auckland Football Kingz joined Australia’s National Soccer League (NSL) in 1999 but struggled for success both on and off the field. They failed to win, to develop a fanbase or gain financial support (Gray, 2003). By mid-2003 their performance was subject to considerable criticism (Maddaford, 2003a, 2003b, 2003c, 2003d). While they managed to survive in the short term, they trailed the NSL standings, were unable to

>˜>}ˆ˜}ʜÀ}>˜ˆÃ>̈œ˜>Ê«iÀvœÀ“>˜ViÊ Ê 99

pay facility hire fees on time and struggled to build a full-time playing squad. Ultimately, they resorted to evening training sessions to attract local players and reduce their salary bill. Effectively they had become a semi-professional club. A major restructure addressed the club’s identity, organisation and personnel, and the Kingz resurfaced as the New Zealand Knights. The Knights’ first season (2005) coincided with the inaugural season of the A-League, which replaced the NSL, before losing their playing licence to the Wellington Phoenix in 2007. A VSM depiction of the effectiveness of the Kingz organisation is shown in Figures 7.2a and 7.2b. The right-hand side of Figure 7.2a shows the Kingz as one element of our System in Focus (SIF ), which is the New Zealand Football system. The Kingz football team is shown as one of the S1 units carrying out the purpose of the wider SIF. New Zealand Football manages the allocation of S3 resource to its S1 units, and provided the Kingz with the licence needed to compete in what was then the NSL. Each S1 unit of a viable system should be able to survive in its own right, meaning it must also be a viable system (Beer, 1985). Figure 7.2a depicts, with the arrow, how an S1 at a higher level of recursion can be viewed as a SIF at a lower level of recursion. The VSM in Figure 7.2b ‘enlarges’ the Kingz and depicts it as the SIF. As a SIF, the Kingz should perform the five functions comprising the subsystems of a viable system, albeit at one level of nestedness or recursion lower than the original NZ Football level SIF. With their licence in hand, the Kingz could have been expected to develop their own S5 role to uphold the reputation of NZ Football and establish their own identity as a club. However, the ease with which the Kingz’ organisation changed their name to the NZ Knights in 2005 signalled a weak and dysfunctional S5. The Kingz had failed to create and project their unique identity to stakeholders within and outside the organisation. NZ football 2003 S5

National level S3 resourcing ‘obtain licence for Pro Team to compete in ASL’ – now the A League S4 strategy and intelligence seek and develop NZ players and coaches

S3 resourcing ‘provide wellresourced assistant/techno coaches, facilities and venue’

S4

S3 S3

S5 identity ‘must uphold reputation of NZ soccer’

S2 coordination ‘must prevent NZ NSL teams fighting for reserve players’

S1 units ‘players perform!’

FIGURE 7.2aÊ /…iÊ
ÕVŽ>˜`ʈ˜}âÊ>˜`ÊÃÞÃÌi“ˆVÊv>ˆÕÀi

<< All Whites National Team

Kingz Pro Team

<< National League Federations

100

Winnie O’Grady and John Davies Football Kingz

S5 identity >>> $



  of NZ soccer $
ans did not identify
"
 S4 strategy and intelligence >>> $


velop NZ play



<< Kingz Pro Team in ASL << Limited development activities


  $

  $

  $


!
" 




 $


!
 



acilities to players

S2 coordination $


vent NZ NSL teams


or reserve players

S1 units $
‘players did not perform!’ FIGURE 7.2bÊ /…iÊ
ÕVŽ>˜`ʈ˜}âÊ>˜`ÊÃÞÃÌi“ˆVÊv>ˆÕÀi

The Kingz could have been expected to establish their own S4 strategy for seeking out and developing New Zealand players and coaches. Their decision to recruit several players finishing their careers in English and other European leagues proved inappropriate and infeasible. Finally, the Kingz S3 resourcing subsystem failed to provide appropriate coaches or playing and training facilities (see Figure 7.2b). In VSM terms, the Kingz case provides an instructive example of systemic failure. It is therefore not surprising that despite rebranding as the New Zealand Knights the organisation did not survive beyond the inaugural season of the A-League. The weaknesses in the Meta-System and in S1 operations explain the failure of the football club. In contrast to the New Zealand Knights, the Essendon Football Club had no apparent systemic weaknesses at the turn of the millennium (Connolly, 2010). Essendon is discussed next.

CASE EXAMPLE 2: ESSENDON FOOTBALL CLUB IN 2000 – A CASE OF SYSTEMIC SUCCESS In 2000, the Australian Rules football club, Essendon, had a stellar season both on and off the field. The club was described as having one of the most well-rounded and skilful playing teams and squads in the history of the Australian Football League (AFL). Their success was viewed as an indicator of a dynasty in the making.2 The case situation reflects Essendon Club as having a clear sense of identity and purpose expressed as ‘the Essendon Way’. In Figure 7.3a, it is aligned with S5 identity. This identity pervaded the Meta-System and its functions, through actions and communications expressed by S4, S3 and S2, and subsequently manifested in the S1 playing units’ supportive team culture and values of trust and autonomy.

>˜>}ˆ˜}ʜÀ}>˜ˆÃ>̈œ˜>Ê«iÀvœÀ“>˜ViÊ Ê 101 Club level

Environment System 5

S5 identity $
‘the Essendon way’

System 4

S4 strategy $
‘search and recruit Essendon people’

Future environment System 3 S3* Local environment

S2

S3 resourcing $
‘load the coaching staff with Essendon people’ S2 coordination $
‘coaching common skills, moves, values’

S1 units $
‘trust and autonomy’ $
‘supportive team culture’ S1 Operations deliver on purpose FIGURE 7.3aÊ ÃÃi˜`œ˜ÊœœÌL>Ê ÕLÊ>˜`ÊÃÞÃÌi“ˆVÊL>>˜Vi

Figure 7.3b similarly depicts how other elements of the Essendon Meta-System (S4 strategising and S3 resourcing functions) at the club level influenced the S1 operations at the club level. The figure not only reveals the congruence of focus between systems 1 to 5 at the teams level, but also with the Meta-System of the wider Essendon club level. This alignment signifies the organisation has achieved systemic and holistic balance.

CASE EXAMPLE 3: BCCI – BOARD OF CRICKET CONTROL IN INDIA – A CASE OF SYSTEMIC ROLE CONFLICT According to Mike Atherton, former captain of the England cricket team, money and gambling syndicates are impacting the way cricket is organised and played throughout the world. Their influence is apparent on in-game activities such as spot fixing, on the results of cricket matches, and on businesses associated with the game. Of particular concern is how money is impacting the Indian Premier League – the IPL – and also the governing body, the Board of Control for Cricket in India (BCCI), which authorises and distributes licences for the franchised teams playing in the IPL. Various conflicts of interests are evident, including BCCI members having ownership stakes in franchise teams; media commentators sitting on the IPL governing body; and media payments to BCCI influencing broadcast rights for test, state and IPL matches and the scheduling of matches (Atherton, 2008, 2010).

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Essendon club level

Essendon club level

System 5

S4 strategy s@SEARCHANDRECRUIT %SSENDONPEOPLE s@RECRUITBESTFROMDRAFT s@PICKOTHERSWHOWILL BENEFIT%SSENDONIN THELONGTERM

S3 resourcing s@LOADTHECOACHINGSTAFF WITH%SSENDONPEOPLE s@PROVIDEQUALITYCOACHES TECHNOCOACHES ANDTRAINERS

System 4

System 3 S2

Teams level S5 identity s@PROJECTCULTUREOF QUALITYANDEXCELLENCE

Teams level S5 identity s@STAYTRUETO%SSENDONWAY s@VALUEPERFORMANCESTATSAND ANALYSIS

S4 strategy and intelligence sSEEKPLAYERSCAPABLEOF WINNINGCHAMPIONSHIP

S4 strategy and intelligence sSEEKPOTENTIAL%SSENDON COACHES

S3 resourcing s@PROVIDEBESTRAW MATERIALS

S3 resourcing s@PROVIDEWELL RESOURCED ASSISTANTTECHNOCOACHES

S2 coordination s@HOMOGENEOUSGROUP OFPLAYERS

S2 coordination s@DEVELOPMENTOFUNIT TEAMANDTACTICALSKILLS

S1 teams s@TRUSTANDAUTONOMY s@SUPPORTIVETEAMCULTURE s@PRACTICEDEVELOPSSKILLSANDFINESSE

FIGURE 7.3bÊ ÃÃi˜`œ˜ÊœœÌL>Ê ÕLÊ>˜`ÊÃÞÃÌi“ˆVÊL>>˜Vi

In such a climate of money influence, players can easily be led astray. From a VSM perspective, the S5 moral governance of the game is inadequate and does not provide appropriate guidance to direct player behaviour at the S1 franchise team level. Players are rationalising unethical behaviour, reasoning that ‘if everyone else is on the gravy train, why should . . . [I] . . . miss out’. Atherton’s belief is that cricket will regain its greatness only when there is transformation at the very top. In VSM terms, this means a recalibration of S5 guiding values. Those responsible for S5 governance must create a ‘feeling for the . . . values of the . . . game’ and not focus solely on maximising revenue and their own political interests. The schematic presentation in Figure 7.4 displays the S5 weaknesses relating to identity, raison d’être and values. The dysfunctional values pervade all other subsystems and are particularly apparent in the behaviours of S1 franchise teams and players. Figure 7.4 depicts the perceived systemic role conflict of BCCI members between their MetaSystem roles and their vested interests in the S1 IPL units. It also shows a biased or overbearing S3 function privileging selected S1 operations, especially the IPL, and a dominating media influence on the Meta-System strategy and strategising. If, as Atherton (2010) states, leadership is everything, then developing an effective S5 function that

>˜>}ˆ˜}ʜÀ}>˜ˆÃ>̈œ˜>Ê«iÀvœÀ“>˜ViÊ Ê 103 Ownership of IPL Franchises by BCCI board members

Environment S5 S4 S3 Media influence

S3*

S2

<< Indian national team << National teams << States << Other competitions << IPL

FIGURE 7.4Ê œ>À`ʜvÊ ÀˆVŽiÌÊ œ˜ÌÀœÊˆ˜Ê˜`ˆ>\ÊÃÞÃÌi“ˆVÊÀœiÊVœ˜yˆVÌ

emphasises the importance of vision, mission and values (Cummings & Davies, 1994) is paramount. It is up to S5 to ensure values are promulgated and accepted throughout the systems at all levels of recursion.

CASE EXAMPLE 4: THE NEW ZEALAND RUGBY FOOTBALL UNION – ORGANISATIONAL RESTRUCTURING AND REDESIGN. DIAGNOSTIC VALIDATION By 1992, the New Zealand Rugby Football Union (NZRFU) had ‘enjoyed a continuous and sustained period as the premier sport in New Zealand’ spanning 100 years (NZRFU, 1995a). The sport’s governing body, the NZRFU (now NZRU), continually produced a winning national team with the All Blacks recognised as the most successful team in any New Zealand sport code over the century. Subsequent to the 1987 inaugural Rugby World Cup, won by the All Blacks, the game of rugby was presented with emerging challenges that the NZRFU wanted to prepare for, respond to and overcome. It was apparent that Council members were struggling to complete more and more ‘administrative’ and ‘managerial’ tasks in a timely, business-like fashion. The NZRFU responded by increasing staffing from 6 to 15. Additional pressures arose from the increasing need for funding; increasing commercialism; changing demographics and lifestyles affecting participation and volunteering; and changes within the education system affecting participation. Consequently, the

104

Winnie O’Grady and John Davies

NZRFU through its Council commissioned the Boston Consulting Group (BCG) to undertake an independent review of rugby, its structure, strengths and weaknesses, and of the issues and opportunities facing the game. The intent was to identify governance, organisational and competition structures that would sustain and maintain the success of the game in New Zealand. This proactivity by the NZRFU implied it had a vision to promote the continued development and spread of rugby at all levels in New Zealand and around the world. After two years of consultation and research, BCG presented its recommendations in the so-called Boston Report on NZ Rugby (NZRFU, 1995a). The report identified that the game itself was likely to become professional at the international level, anticipating the post-1995 World Cup move to professionalisation (Fitzsimons, 1996). The emerging ‘business of rugby’ needed advanced managerial and business skills not always available among the eclectic mix of volunteers traditionally involved in running rugby; required a heavy time commitment that would preclude individuals with the appropriate skills making themselves available for election to unpaid positions; and could not rely on Council members elected by geographical regions with parochial interests as the best way to advance the interest of the sport as a whole (Davies, 1999). The report also noted that 19 Council members were involved in 17 management subcommittees, undertaking operational duties rather than strategising and planning activities. Council members found it difficult to balance multiple roles, to complete assigned tasks within the time volunteered to the Council, to keep in touch with the grassroots constituents who elected them and to maintain effective communications with other Council members, provincial unions, the media, sponsors and other stakeholders. BCG presented nine recommendations to the NZRFU involving major initiatives around governance, competitions and marketing/finance. In turn, the NZRFU Council established three groups comprising Council members and ‘independent experts’ to further examine the initiatives. In October 1995, a modified set of proposals was presented to Provincial Unions for their feedback before the final recommendations were approved by NZRFU Council in November (NZRFU, 1995b). In December, at a Special General Meeting, the constitution was changed and in March 1996 the NZRFU Council voted itself out of existence. Figure 7.5a provides a tabular summary and interpretation of the major findings and recommendations of the Boston Report. Figures 7.5a, 7.5b and 7.5c present a VSM diagnostic of the cybernetic/systemic strengths and weaknesses of NZRFU governance and management processes both before (Figure 7.5b) and after reorganisation (Figure 7.5c). As noted above, at the time of the BCG review, the NZRFU perceived its S5 identity and vision as developing and spreading the game at all levels throughout New Zealand and the world. Consequently, the restructuring can be interpreted as a strengthening of the governance functions, S5 deliberations of purpose and strategic direction, S4 strategy development activities and the S3 planning functions. Recommendations to remove elected Board members from operational activities served to reduce their roles and workload and shift focus to their Meta-Systemic roles of promoting identity and developing strategy. Beyond removing numerous councillor-based committees, professional administrators and managers were hired for S1 operational roles. These changes were expected to

Governance membership post reorganisation 9 Board Members (3 selected by independent appointments panel)

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Recommendations

Governance membership prior to reorganisation 19 Council Members elected to serve particular constituencies, and contribute to: 17 management sub-committes, including Maori Rugby Board, Junior Advisory Board, Finance and Marketing, etc.

106

Winnie O’Grady and John Davies Meta-system S5 decides: identity, purpose, vision mission, values

System 5 IRB

Provincial chairpersons

S4 strategises: intelligence and strategy development

System 4 Provincial CEOs Advisory Sponsors, groups media, etc. Partners

Local environment

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S3 resources and supports the carrying out of purpose engages in operational planning and control, policy development S3* informal audit-like intelligence gathering S2 informal and formal co-ordination

Players << International rugby << Provincial rugby Coaches << Community and junior rugby S1 operations

FIGURE 7.5bÊ

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provide an environment in which S1 units would take initiative, make decisions and act expeditiously in the interests of the sport guided by a strong sense of S5 identity and purpose and a policy framework. The restructuring provided the NZRFU with an opportunity to improve communications and enhance relationships with ‘grassroots’ members and Provincial Unions. Communications and communication channels were developed around regular meetings between the Board and Provincial Union chairpersons and increased visits of the CEO and Board to Provincial Unions. These meetings provided opportunities to exchange ideas informally, to dissolve feelings of ‘them and us’ and to alert the NZRFU about developing emergencies, i.e. to act as an algedonic channel conveying timely information about emerging issues of concern before they became ‘sores’. In VSM terms, such communications strengthened the operation of multiple systems. They strengthened S4 intelligence and informed the strategy development function, provided an improved yet substantially informal S3* monitoring/audit function and enhanced S2 coordination. These communications characterise organisations that can remain informed about and in tune with developments in their environment; better serve their purpose by meeting the needs of stakeholders in a planned and coordinated fashion; and channel information to the right people at the right time without increasing bureaucracy and formality.

>˜>}ˆ˜}ʜÀ}>˜ˆÃ>̈œ˜>Ê«iÀvœÀ“>˜ViÊ Ê 107 Meta-system S5 decides: identity, purpose, vision mission, values

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Provincial CEOs Advisory Sponsors, groups media, etc. Partners Local environment

S4 strategises: gathers intelligence and engages in strategy development

System 4

S3*

System 3

S2

S3 resources and supports the carrying out of purpose engages in financial and operational planning and control S3* informal audit-like monitoring and intelligence gathering S2 informal and formal coordination

Players << International rugby << Provincial rugby Coaches

<< Junior rugby

S1 operations

FIGURE 7.5cÊ

S1 operations S1 units deliver on purpose

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CASE EXAMPLE 5: HIGH PERFORMANCE SPORT – A CASE OF SYSTEMIC COMMUNICATION AND CONTROL The final case scenario considers the management of High Performance Sport, a notional organisation perceived as a unit nested within the wider system of Sport New Zealand (Sport NZ). In contrast to the previous case studies, the focus here is on communications within the system and how they influence organisational control. Beer (1981) observed that organisational performance is influenced by both organisational structure and information flows. He stated (1981, p. 155) that: ‘Beyond these structural considerations we need to consider the effectiveness of the information flows – and particularly the nature of the filters and the relative time lags around the separate organizational loops.’ The importance of communications within the VSM, indicated by lines in the VSM diagrams, cannot be overstated. The effectiveness of subsystems, and the organisation as a whole, depends on the communications between interacting components of the system. The information being passed from one element to another must be accurate, complete and timely, and understood by the recipient. This observation applies to both ‘soft’ information such as ethos and values, and ‘hard’ information such as performance reports. The VSM can guide assessments of information flows and their likely impact on organisational performance. Organisational goals and purposes are more likely to be achieved when communications facilitate requisite variety (see Table 7.1). Appropriately designed information flows enable managers to match their information processing

108

Winnie O’Grady and John Davies

capability to their information processing needs and to respond appropriately to changing conditions (Beer, 1979, 1981, 1985). Whereas the NZRFU case focused on governance processes, this discussion focuses on key information exchanges underpinning operational control (in contrast to strategic control3). These communications include information to establish resourcing arrangements and accountability requirements, to coordinate the operation of S1 units and to monitor specific aspects of operations on an ad hoc basis. Each type of information flow is handled by a dedicated channel, labelled A to D in Figures 7.6a and 7.6b. The design of these information flows influences how operations are managed, how subsystem functions are executed and how readily performance targets are achieved. The case scenario considers the notional High Performance Sport (HPS) system presented in Figure 7.6a. The system depicted in Figure 7.6a comprises three nested systems illustrating the VSM notions of embeddedness and recursion. The system in focus (SIF) is HPS, a system responsible for producing NZ athletes who can win medals in elite competition. HPS is both an embedded S1 unit of the broader Sport NZ system and a viable system in its own right. ‘Enlarging’ HPS reveals its viable structure with Targeted and Campaign National Sport Organisations (NSOs) as the embedded S1 units. HPS provides different types of resources to NSOs including funding, specialist expertise and administrative support. The information exchanges between operational units and the Meta-System enable HPS to keep the system in control and moving towards its goals and targets. We note that the more challenging the goals, and the more uncertain the process for producing winning athletes, the greater the need to allow managers to respond flexibly to changing conditions. That is, the information being exchanged must support managers’ efforts to establish requisite variety. The following discussion considers how information exchanges between HPS and NSOs impact managers’ requisite variety and thereby the performance of the HPS system. Each information exchange between the Meta-System and S1 is discussed in turn. Resourcing (A) and Accountability (B): The resourcing and accountability agreement between HPS and NSOs is detailed in performance and investment schedules, covering one Olympic funding cycle from summer Olympics to summer Olympics. The schedule details the resources that HPS will provide including financial resources to cover core operating expenses and athlete performance support (APS) resources to provide expertise in areas such as physiotherapy, nutrition and strength and conditioning training. It also specifies the reporting and performance requirements for NSOs. Key performance indicators (KPIs) may include medals, podium finishes and rankings as well as programme KPIs drawn from each sport’s strategic plan, for example, coaching development or participation in international competitions. HPS’s approach to resource provision is not formulaic and does not set spending limits for specific areas such as coaching, competitions or support services. NSOs regularly report their financial and KPI performance to HPS. Quarterly financial reports summarise expenditures by major expense categories (e.g. core, APS, coaching and athlete development) compared to budgeted amounts. Annual performance reviews (APR) focus on whether sports are on track to deliver the expected Olympic performances rather than on achievement of annual targets. During the APR process, NSOs are asked to reflect on the current year’s performance, identify new learnings and specify activities that will be maintained, introduced and halted.

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110

Winnie O’Grady and John Davies Environment

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The information flows underpinning HPS resourcing and accountability processes increase the system’s overall ability to respond to uncertainties impacting goal achievement. NSOs are able to deviate from the agreed investment schedule during the year as circumstances change. They can reallocate resources from one use to another without having to renegotiate with HPS (although they are expected to keep it informed about material changes). Accountability reports summarised by major expenditure categories provide more flexibility than those requiring line item reporting. The annual review process encourages NSOs to continually learn, improve and dynamically adjust activities and programmes to maintain progress towards Olympic performance goals. Furthermore, summarised accountability reports reduce the cognitive load on HPS managers, ensuring they are not overloaded with detail yet are sufficiently informed to determine whether financial and KPI performance is on track. Audit (D): HPS can enhance its understanding of the factors impacting NSO performance by seeking more detailed information directly from S1 units on an ad hoc basis. This information supplements and extends routinely reported performance information. According to HPS, it has developed ‘lines of sight’ into NSO operations through its ‘intimate partnership’ with them. There are regular interactions between HPS staff, particularly APS staff or performance consultants, and their counterparts in NSOs. These interactions allow HPS managers to understand what is actually happening inside sport organisations and reduce the risk of being misled by NSOs claiming that everything is under control and on track when the reality is something different. The information

>˜>}ˆ˜}ʜÀ}>˜ˆÃ>̈œ˜>Ê«iÀvœÀ“>˜ViÊ Ê 111

gathered via monitoring processes enhances HPS’s ability to identify issues that need to be addressed to ensure goals are achieved. Finally, the informal way HPS staff gather this information does not increase the reporting burden for NSOs. Coordination (C): HPS is responsible for facilitating the smooth functioning of the group of NSOs comprising S1. While NSOs typically operate independently, they nonetheless compete for resources from HPS and expect their resourcing requests to be treated equitably. HPS uses the performance and investment schedule as a standardised approach for requesting resources and applies similar criteria for assessing these requests. The standard procedures limit the likelihood that any one NSO can dominate the process to the detriment of other sport bodies. Clear and standardised procedures allow NSO managers to identify and access the resources they need and protect HPS managers from continuous requests for resources, presented in different formats, and supported by different types of information.

SUMMARY /…ˆÃÊV…>«ÌiÀʅ>ÃÊ`i“œ˜ÃÌÀ>Ìi`]Ê̅ÀœÕ}…Ê̅iÊÕÃiʜvÊV>ÃiÊÃVi˜>ÀˆœÃ]ʅœÜÊ̅iÊ6-ÊV>˜ÊLiÊ>««ˆi`Ê >ÃÊ>ÊVœ˜Vi«ÌÕ>ÊvÀ>“iܜÀŽÊ̜Ê`ˆ>}˜œÃiʜÀ}>˜ˆÃ>̈œ˜>ÊivviV̈Ûi˜iÃÃÊ>˜`ÊÀiÛi>ÊˆÌÃÊ«ÀiVÕÀÜÀðÊÌÊ has argued that the success of sport organisations need not be based on the competitive success of their teams; it can be assessed in terms of their sustainability or viability, the systemic balance œvÊ Ì…iˆÀÊ v՘V̈œ˜Ã]Ê Ì…iÊ Ài>̈ÛiÊ L>>˜ViÊ LiÌÜii˜Ê ÃÞÃÌi“ˆVÊ ÃÌÀi˜}̅ÃÊ >˜`Ê Üi>Ž˜iÃÃiÃ]Ê >˜`Ê Ì…iÊ ivviV̈Ûi˜iÃÃʜvÊ̅iˆÀÊVœ““Õ˜ˆV>̈œ˜Ê>˜`ʈ˜vœÀ“>̈œ˜ÊyœÜð Ê iiÀ½ÃÊ6ˆ>LiÊ-ÞÃÌi“ÃÊvÀ>“iܜÀŽÊ«ÀœÛˆ`iÃʈ˜Ãˆ}…ÌÃÊ>LœÕÌ\Ê̅iÊi݈ÃÌi˜ViÊ>˜`ʜ«iÀ>̈œ˜ÊœvÊ ÃÞÃÌi“ˆVÊv՘V̈œ˜ÃÆÊ̅iÊÀœiʜvÊ-xʈ˜Ê«Àœ“œÌˆ˜}Ê̅iÊÛ>ÕiÃÊ>˜`ÊÃÞÃÌi“ˆVʈ`i˜ÌˆÌÞÊ̜Ê}Ո`iÊ̅iÊ >V̈ۈ̈iÃʜvÊ-£Ê>Õ̜˜œ“œÕÃÊ՘ˆÌÃÊ>˜`Ê}Õ>À`Ê>}>ˆ˜ÃÌÊ՘i̅ˆV>ÊLi…>ۈœÕÀÆÊ̅iÊÃÞÃÌi“ˆVʈ“«>VÌÊ œvÊÀœiÊVœ˜yˆVÌÊ>˜`Ê̅iʜÛiÀLÕÀ`i˜ˆ˜}ʜvʈ˜`ˆÛˆ`Õ>ÃÊV…>À}i`Ê܈̅ÊiÌ>‡Ê-ÞÃÌi“ˆVÊÀi뜘ÈLˆˆÌˆiÃÆÊ>˜`Ê̅iÊÃÞÃÌi“ˆVÊVœ˜ÌÀˆLṎœ˜ÊœvÊÜi‡Ê`iÈ}˜i`ÊVœ““Õ˜ˆV>̈œ˜Ã°ÊÌÊV>˜ÊLiÊÕÃi`Ê̜Ê>ÃÃiÃÃÊ Ì…iÊÃÞÃÌi“ˆVÊÃÌÀi˜}̅ÃÊ>˜`ÊÜi>Ž˜iÃÃiÃʈ˜yÕi˜Vˆ˜}ÊVÕÀÀi˜ÌÊ«iÀvœÀ“>˜ViÊ>˜`Ê}Ո`iÊÀiÃÌÀÕVÌÕÀˆ˜}Ê «ÀœViÃÃiÃ°Ê ˜`ii`]Ê Ì…iÊ 6-Ê V>˜Ê …i«Ê œÀ}>˜ˆÃ>̈œ˜ÃÊ LiVœ“iÊ Ûˆ>LiÊ >˜`Ê Ãiv‡ÊÃÕÃÌ>ˆ˜ˆ˜}Ê >˜`ʈ“«ÀœÛiÊ̅iˆÀÊV>«>LˆˆÌÞÊvœÀÊ>`>«ÌˆÛiʏi>À˜ˆ˜}° Ê /…iʈ˜ÌiÀ«ÀïÛiÊ>««ˆV>̈œ˜ÊœvÊۈ>LiÊÃÞÃÌi“ÃÊ̅ˆ˜Žˆ˜}ÊÀiÛi>i`Ê̅iʘ>ÌÕÀiʜvÊÃÞÃÌi“ˆVÊv>ˆÕÀiÊ ˆ˜Ê>ÊÜVViÀÊVÕLÆÊ̅iÊ՘`iÀ«ˆ˜˜ˆ˜}ÃʜvÊëœÀ̈˜}ÊÃÕVViÃÃʈ˜Ê>˜Ê
ÕÃÌÀ>ˆ>˜Ê,ՏiÃÊvœœÌL>ÊVÕLÆÊ̅iÊ œÀˆ}ˆ˜Ãʜvʈ˜>««Àœ«Àˆ>ÌiÊLi…>ۈœÕÀʈ˜Ê>ÊVÀˆVŽiÌʜÀ}>˜ˆÃ>̈œ˜ÆÊ̅iÊÀ>̈œ˜>iÊvœÀÊ>˜`ÊÃÞÃÌi“ˆVÊivviVtiveness of organisational restructuring in a rugby union governing body; and the impact of com“Õ˜ˆV>̈œ˜ÃÊ>˜`ʈ˜vœÀ“>̈œ˜ÊyœÜÃʈ˜Ê>ʅˆ}…Ê«iÀvœÀ“>˜ViÊëœÀÌʜÀ}>˜ˆÃ>̈œ˜° Ê /…iÊÃVi˜>ÀˆœÃʅˆ}…ˆ}…Ìi`ʅœÜʜÀ}>˜ˆÃ>̈œ˜>Êˆ`i˜ÌˆÌÞ]Ê«ÕÀ«œÃiÊ>˜`ÊÛ>ÕiÃʈ“«>VÌÊ̅iÊv՘V̈œ˜ˆ˜}ʜvʜÀ}>˜ˆÃ>̈œ˜>ÊÃÞÃÌi“ðÊ/…iÊiÝ>“«iÃÊŜÜi`Ê̅>Ì\ʈ˜Ê>ÊÜVViÀÊVÕL]Ê̅iʏ>VŽÊœvÊ>˜Ê >««Àœ«Àˆ>ÌiÊ-xʈ`i˜ÌˆÌÞÊ>˜`ÊÃi˜ÃiʜvÊÃÌÀ>Ìi}ˆVÊ`ˆÀiV̈œ˜Êˆ˜yÕi˜Vi`Ê̅iÊÃÞÃÌi“ˆVÊv>ˆÕÀiÊ̅>ÌÊvœœÜi`ÆÊ ˆ˜Ê >˜Ê
ÕÃÌÀ>ˆ>˜Ê ,ՏiÃÊ vœœÌL>Ê VÕL]Ê Ì…iÊ >LˆˆÌÞÊ ÌœÊ ivviV̈ÛiÞÊ Vœ““Õ˜ˆV>ÌiÊ -xÊ Û>ÕiÃÊ Ì…ÀœÕ}…œÕÌÊ̅iÊ܈`iÀʜÀ}>˜ˆÃ>̈œ˜ÊÀiˆ˜vœÀVi`Ê-xÊÛ>ÕiÃÊi݅ˆLˆÌi`ÊLÞʓ>˜>}i“i˜ÌÊ>˜`Ê«>ÞiÀÃÊ >ÌÊ Ì…iÊ -£Ê «Ài“ˆiÀÊ Ìi>“Ê iÛiÆÊ ˆ˜Ê >Ê ÀÕ}LÞÊ Õ˜ˆœ˜Ê }œÛiÀ˜ˆ˜}Ê Lœ`Þ]Ê Ì…iÊ ˆ˜>LˆˆÌÞÊ ÌœÊ Ãi«>À>ÌiÊ Ì…iÊ ˆ`i˜ÌˆÌÞÊVÀi>̈˜}]Ê`ˆÀiV̈œ˜ÊÃiÌ̈˜}Ê}œÛiÀ˜>˜ViÊv՘V̈œ˜ÃÊvÀœ“Ê̅iʼ…>˜`Çʜ˜½Ê`>އÊ̜‡`>Þʓ>˜>}i“i˜ÌʜvÊÃÌ>Ži…œ`iÀÃ]Ê«iœ«iÊ>˜`Êw˜>˜Viʏi`Ê̜ÊÃÞÃÌi“ˆVÊÀœiÊVœ˜vÕȜ˜Ê>˜`ÊÀœiʜÛiÀœ>`°

112

Winnie O’Grady and John Davies

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REVIEW QUESTIONS £Ê 7…>ÌÊ `ˆvviÀi˜Ìˆ>ÌiÃÊ Ì…iÊ 6ˆ>LiÊ -ÞÃÌi“ÃÊ œ`iÊ vÀœ“Ê “œÀiÊ ÌÀ>`ˆÌˆœ˜>Ê vÀ>“iܜÀŽÃÊ vœÀÊ iÝ>“ˆ˜ˆ˜}ʜÀ}>˜ˆÃ>̈œ˜>ÊÃÌÀÕVÌÕÀiÊ>˜`ʜÀ}>˜ˆÃ>̈œ˜>ÊivviV̈Ûi˜iÃö ÓÊ Ý«>ˆ˜Ê ܅ÞÊ Õ˜`iÀÃÌ>˜`ˆ˜}Ê ˆ`i˜ÌˆÌÞ]Ê «ÕÀ«œÃiÊ >˜`Ê œÀ}>˜ˆÃ>̈œ˜>Ê Û>ÕiÃÊ >ÀiÊ ÃœÊ ˆ“«œÀÌ>˜ÌÊvœÀÊ՘`iÀÃÌ>˜`ˆ˜}ʜÀ}>˜ˆÃ>̈œ˜>ÊivviV̈Ûi˜iÃÃÆÊ>˜`Ê܅ÞÊ՘`iÀÃÌ>˜`ˆ˜}Ê̅iÊ environment, adaptability and capability to respond appropriately to changes in the i˜ÛˆÀœ˜“i˜ÌÊ>ÀiÊÜʈ“«œÀÌ>˜ÌÊ̜ʜÀ}>˜ˆÃ>̈œ˜>Êۈ>LˆˆÌÞ° ÎÊ iÃVÀˆLiÊ Ì…iÊ ÃÞÃÌi“ˆVÊ v՘V̈œ˜ÃÊ Ì…>ÌÊ >Ê ۈ>LiÊ ÃÞÃÌi“ÃÊ V>ÀÀÞÊ œÕÌÊ >˜`Ê …œÜÊ Ì…iÞÊ >ÀiÊ related to one another, and the usefulness of conceptualising organisations in terms of >ÊiÌ>‡Ê-ÞÃÌi“Ê>˜`Ê>˜Ê"«iÀ>̈œ˜ÃÊÃÞÃÌi“° {Ê iÃVÀˆLiÊ Ü…ÞÊ Vœ““Õ˜ˆV>̈œ˜ÃÊ >˜`Ê ˆ˜vœÀ“>̈œ˜Ê yœÜÃÊ >ÀiÊ ÃœÊ ˆ“«œÀÌ>˜ÌÊ vœÀÊ i˜ÃÕÀˆ˜}Ê ÃÞÃÌi“ˆVÊ v՘V̈œ˜ˆ˜}Ê ˆÃÊ Vœ…iÈÛiÊ >˜`Ê Ì…>ÌÊ «Àœ}ÀiÃÃÊ ÌœÜ>À`ÃÊ œÀ}>˜ˆÃ>̈œ˜>Ê }œ>ÃÊ ˆÃÊ Õ˜`iÀÊVœ˜ÌÀœ° xÊ Ý«>ˆ˜Ê܅>ÌÊ̅iʘœÌˆœ˜ÊœvÊVœ˜ÌÀœÊ“i>˜Ãʈ˜Ê̅iÊVœ˜ÌiÝÌʜvÊ>Ê6-Ê>˜>ÞÈÃ]Ê>˜`ʅœÜÊ̅iÊ ÀiiÛ>˜ÌÊ`iÈ}˜ÊœvÊVœ““Õ˜ˆV>̈œ˜ÃÊ>˜`ʈ˜vœÀ“>̈œ˜ÊV…>˜˜iÃʈÃʈ“«œÀÌ>˜ÌÊvœÀÊVœ˜ÌÀœ°

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Who are we as an organisation? What do we want to achieve?

Process

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114

Winnie O’Grady and John Davies

Notes £Ê /…iÊ6-ʅ>Ãʏœ˜}ÊLii˜Ê>`ۜV>Ìi`Ê>ÃÊ>Ê̜œÊvœÀÊ՘`iÀÃÌ>˜`ˆ˜}ʜÀ}>˜ˆÃ>̈œ˜>Ê`iÈ}˜Ê­ ÀœVŽiÃLÞ]Ê Õ““ˆ˜}ÃÊEÊ >ۈiÃ]Ê£™™xÆÊ Ã«iœ]Ê£™n™ÆÊ>VŽÃœ˜]Ê£™n™®Ê>˜`ʅ>ÃÊLii˜Ê>««ˆi`Ê̜Ê>Ê܈`iÊÀ>˜}iʜvʜÀ}>˜ˆÃ>̈œ˜ÃÊ ˆ˜VÕ`ˆ˜}Ê Ì…œÃiÊ œvÊ >˜Vˆi˜ÌÊ
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CHAPTER 8

Strategic management in non-profit sport Ian O’Boyle

Chapter objectives After completing this chapter you should be able to: UÊ Õ˜`iÀÃÌ>˜`Ê̅iÊL>ÈVÃʜvÊ>ÊÃÌÀ>Ìi}ˆVÊ«>˜Æ UÊ Õ˜`iÀÃÌ>˜`ÊLiÃÌÊ«À>V̈ViÊvœÀʅœÜÊÃÌÀ>Ìi}ˆVÊ«>˜ÃÊ>ÀiÊvœÀ“i`Æ UÊ LiVœ“iÊv>“ˆˆ>ÀÊ܈̅Ê̅iÊÛ>ÀˆœÕÃÊii“i˜ÌÃʜvÊ>ÊÃÌÀ>Ìi}ˆVÊ«>˜Æ UÊ i>À˜Ê̅iʈ“«œÀÌ>˜ViʜvÊ}œ>ÊÃiÌ̈˜}Ê>˜`Ê«iÀvœÀ“>˜Viʓ>˜>}i“i˜ÌÊ܅i˜Ê>ÌÌi“«Ìˆ˜}Ê ÌœÊ>V…ˆiÛiÊÃÌÀ>Ìi}ˆVʜLiV̈ÛiÃÆ UÊ Õ˜`iÀÃÌ>˜`Ê Ì…iÊ ÀœiÊ œvÊ Ì…iÊ ˆ˜`ˆÛˆ`Õ>Ê i“«œÞiiÉۜÕ˜ÌiiÀÊ ˆ˜Ê v>VˆˆÌ>̈˜}Ê Ì…iÊ >V…ˆiÛi“i˜ÌʜvÊÃÌÀ>Ìi}ˆVʜLiV̈Ûið

Key Terms: Chief Executive Officer (CEO); Board; Mission Statement; Vision Statement

INTRODUCTION Undertaking the strategic planning process is arguably the number one role of the board within any organisation. Leading the strategic planning process is often done in collaboration with the Chief Executive Officer (CEO) and other senior staff but as the board’s role is primarily concerned with the long-term or ‘strategic’ outlook for an organisation, ultimate responsibility must inevitably rest with these individuals. In its simplest terms, a strategic plan is a written document that outlines detailed information about an organisation and provides some direction for how the organisation may evolve in the future. It summarises the practical elements of the planning process and condenses this information into a digestible format to help provide the aforementioned direction for the organisation and indeed what steps must be taken to achieve progress towards the stated direction. There are a number of common elements to almost all strategic plans that are seen as essential to ensure the plan is designed in the best possible manner and allow the organisation the potential to achieve objectives and goals that may be contained therein. It would be rare to come across a strategic plan that does not contain a

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mission statement as a core building block upon which the plan has been developed. A mission statement is an articulation of the main purpose of an organisation – why the organisation exists, what do they do, who do they do it for. An effective mission statement should guide the actions of the individuals associated with the organisation, spell out its overall objective and allude to a path of how this objective is to be achieved. In essence, a mission statement provides a framework within which the organisation’s actions are formulated. A mission statement is not to be confused with a vision statement. While a mission statement provides details for the core reason for existing, the vision statement is an articulation of where the organisation sees itself in the future, often within a stated time frame. The stated time frame aspect of vision statements are often seen as important because in their absence, there is ultimately a lack of accountability and perhaps a lack of impetus to ensure that the vison of the organisation will be achieved at a given time point. An example of a vision statement that contains a stated time frame is seen in the strategic plan of Cricket Australia, the national sporting organisation responsible for governing and managing all aspects of cricket within Australia. The vision statement reads: To be Australia’s favourite sport – A sport for all Australians. To achieve this vision, the strategy contains both short-term targets and long-term aspirations. In the short-term (by 2017), cricket aims to be number one in the country for: viewership; fan passion; participation; team success; unified sport. In the longer terms, cricket aspires to be number one in the country for: share of all sport media voice; attendance; investment in the game. (Cricket Australia, 2015)

STRATEGIC PLANNING IN SPORT ORGANISATIONS Sport organisations, depending on their type and operating environment, will have various goals and objectives that they wish to achieve. Increasing participation and membership numbers, attracting additional revenue streams, seeking out and retaining a strong volunteer base, developing coaches and officials, achieving high performance results and maintaining good governance and financial management standards are all examples of some of the objectives that these types of organisation may have. Sport organisations at the community or ‘grassroots’ level may or may not have a strategic plan that guides the entity and this will often depend upon the level of expertise and experience that those running the organisation may have. As we move up the chain to larger organisations at regional, state and national levels it would be extremely rare for any of these bodies to be operating without the guidance of a detailed strategic plan, especially where an organisation has paid employees and a recognised board of directors. Indeed, taking Australia as an example, all national sporting organisations are required to submit their strategic plans to the Australian Sport Commission, which is the government agency that provides significant funding to these entities and without such funding, many of these entities would struggle to fulfil their mission. This situation is replicated in a number of other nations with similar sport systems such as Ireland, the United Kingdom, New Zealand and Canada.

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Much like the strategic planning process within ‘traditional’ organisations, the process can help sport organisations to understand their unique point of difference and the distinctive competencies they may have in comparison to their competitors. The sporting industry is a fast-paced and highly competitive environment and as such an organisation should develop a strategic plan that is designed to be implemented over a 2–4 year time frame. Furthermore, as changes in the internal and external operating environment will inevitably occur throughout the life of the strategic plan, it should be a ‘living document’ that is flexible enough to adapt to these changes without changing the entire direction or overall objectives that are imbedded within the plan itself. Within the sporting environment specifically, strategic plans should be re-evaluated and updated as necessary to ensure they remain relevant to the current context within which the organisation finds itself.

ACADEMIC RESEARCH AND STRATEGIC PLANNING IN SPORT A wide consensus now exits that strategic management should be considered as the on-going organiser of the necessary alignment between the requirements of the environment and the capacities of the enterprise. (Martinet, 1984, p. 1) Within sport management research there is somewhat of a dearth of studies that afford attention to the areas of strategic planning in the sport management industry. However, research has been conducted examining the issue of strategic management within the non-profit sector in general, which clearly the majority of sport organisations also belong to. Sport organisations and other non-profits are predominantly concerned with the effective delivery of their mission. These organisations can often end up earning a profit at year end, but these extra finances must be reinvested within the organisation in order for them to retain their non-profit status. Non-profit sport organisations constitute the majority of organisations involved in local, regional and even national and international sport through amateur leagues and national sport organisations. These entities can take the form of associations, foundations, cooperatives, trusts, societies and even corporations and companies (Kotler & Andreasen, 1991). Nutt and Backoff (1992) stress ‘the importance of strategy in the public and nonprofit sectors due to turbulent conditions that were forcing change’ (p. 2). Joyce (2000) states ‘the formal system of strategic management in the public sector has emerged . . . and is based on strategic planning principles’ (p. 3). Before the 1990s, the term ‘strategy’ was absent from the language of many boardrooms within non-profit sport organisations, and if these entities wished to succeed in an increasingly competitive environment, they could no longer ignore the concept of strategic management in order to adapt to the evolution of sport and how it is currently practised. Literature related to strategic management has the common theme running through it that strategic management in non-profit organisations is different from that in the commercial sector (Nutt & Backoff, 1992). It is argued that a primary cause of the difference between these two sectors is that non-profit organisations have a much higher degree of public responsibility in contrast to traditional commercial organisations. Due

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to the impact and significance of sport on society (see Chapter 2), it is imperative that the issues of accountability and legitimacy are high on the agenda of senior management within sport organisations. They must exercise concern regarding their many stakeholders while traditional businesses can place clients and shareholders as their highest priority, since their main goal is to achieve profits. Non-profit sport organisations must also operate with a satisfactory degree of efficiency and effectiveness (performance) in relation to their various stakeholders. A large amount of volunteerism exists within the non-profit sector, and elected board members often form part of this, who, in principle, decide on the strategy to be followed, as noted earlier. Adding to the complexities of the volunteer–professional staff relationship, their motivations and opinions may be different from those of the salaried managers who are responsible for carrying out the strategy (Chappelet & Bayle, 2005). Even though there are clear differences in strategic management between sport organisations and commercial entities it does not necessarily prevent the application of the concepts and tools of strategic management from the commercial sector being adopted within the non-profit sport environment. It does, however, require a high calibre board and management team, who can take the major differences into account and ensure that the application of these practices would not be counterproductive to the overall objectives of the organisation. Given the evolution of professionalised sport management and the pressure on these bodies to deliver specific outcomes just like a commercial entity, the differences between strategic management within non-profits and for-profits are becoming minimal. Literature relating to strategic management has different views on how the strategic management process should be designed (Goodstein, Nolan & Pfeiffer, 1992; Kotler & Andreasen, 1991; Nutt & Backoff, 1992; Oster, 1995; Slack, 1997). Most authors propose sequential or cyclical models of the process based on stages, phases or tasks. They are often very similar in theory, and simply vary slightly in relation to the nature of the stages or the order in which they are presented (see Table 8.1). Chappelet and Bayle (2005) propose a simple pragmatic model to be used within sport organisations, directly inspired by original ideas on designing strategy practised during the 1970s at Harvard Business School. It is based on four questions that are placed within a cyclical model (see Figure 8.1). The authors suggest that for each of these questions, there is a corresponding answer that must be supplied by those who wish to carry out strategic management: s s s s

3TEP!NALYSIS7HEREAREWENOWn%XTERNALANDINTERNALANALYSIS 3TEP6ISION7HEREDOWEWANTTOBEn.EWVISION MISSIONANDOBJECTIVES 3TEP!CTION(OWDOWEGETTHEREn3TRATEGIESANDTACTICS 3TEP#ONTROL!REWEGETTINGTHEREn"ENCHMARKSANDINDICATORS

THE FORMATION OF A STRATEGIC PLAN During the formation of a strategic plan, it is important to gain an insight into the expectations of stakeholders to ensure their needs are catered for within the impending strategy. Along with Chappelet and Bayle’s (2005) cyclical model, the authors also

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ANALYSIS Where are we now?

CONTROL Are we getting there?

FIGURE 8.1

VISION Where do we want to be?

ACTION How do we get there?

Cyclical model for strategic management (adapted from Chappelet & Bayle, 2005)

present nine steps to be followed to ensure all stakeholders (internal and external) of a sport organisation can be involved in the development of the strategic plan: 1 2 3 4 5 6 7 8 9

Board agrees on the strategic management process; Board prepares strategic review statement; Stakeholder expectations are assessed; Board prepares draft strategic plan; Draft plan is circulated to stakeholders for feedback; Board ratifies strategic plan; Budgeting is carried out to align with strategic objectives; Strategic plan is circulated throughout the organisation (and externally); Objectives are systemically monitored and evaluated (performance management practices).

The minimum amount of time the board and the CEO should allow for the strategic planning process to evolve should be set at no less than 12 months. Larger and more complex sport organisations may require more time than this. Within the purest form of organisational theory, management are responsible for delivering on the elements of the strategic plan that will allow the organisation to achieve its objectives. However, it is also arguably imperative that management are involved in the strategic planning process itself also (not just the board) as they will have intimate knowledge of a number of issues that will impact the goals and objectives laid out in the strategy. Their feedback in the planning stage may prove to be invaluable. Along with engagement with the management staff within the organisation, it is also crucial that the board consult with a wide range of other stakeholders such as athletes, coaches, parents, sponsors and funding agencies when undertaking the strategic planning process. This allows each stakeholder group a voice in the process and caters for their views and opinions to be incorporated into the future agenda for the organisation. This consultation could be undertaken through face to face meetings, via telephone or perhaps most conveniently through online surveys via social media or the organisation’s website.

Strategic management in non-profit sport TABLE 8.1

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Strategic management design processes

Author(s)

Design

Process

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Proposes specific steps for non-profits implementing strategic management

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Consultation and engagement with the various stakeholder groups is clearly an integral component of an effective strategic planning process. This should be complemented by a significant level of desk based research such as analysing and perhaps altering the mission and vision of the organisation to ensure they remain relevant to the current operating environment and the direction of the organisation in a modern sporting environment. It is also imperative that the actual capabilities of the organisation are examined to ensure that goals and objectives are not overly ambitious and that they have the real potential to be achieved within the life of the plan.

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The level of funding and the various revenue streams the organisation have will clearly either facilitate or inhibit the reality of achieving the objectives as set out in the strategic plan. Likewise, the physical resources available and the number of players, coaches, officials and volunteers will all impact on these goals. All variables such as the above must be scrutinised to ensure that the objectives of the organisation are realistic, otherwise the strategic planning process may serve little purpose as overly ambitious or unrealistic goals will ultimately lead to demotivation and frustration within the organisation and its various stakeholder groups. Perhaps the best way of conducting this desk based research is to conduct a SWOT analysis.

THE SWOT ANALYSIS Before developing the strategic plan the board needs to know where the organisation sits within its internal operating environment and indeed why and how it finds itself in its current positon. The best way to get a clear picture of the internal operating environment of the organisation is to carry out a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. By using the SWOT analysis organisations can identify where they stand in the market and from that point go forward and make future plans based on current knowledge. Working through this process will give a clearer idea of: s s s s

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Strengths When analysing strengths, the organisation must concentrate on itself (not other organisations or threats) and its ability to achieve the outcomes it wants. Examples of strengths may include: s s s s s s

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Weaknesses Weaknesses often appear as the direct opposite of the strengths listed above and may include:

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WEAKlNANCIALBASE DIMINISHINGDESIREOFPARTICIPANTS FEWVOLUNTEERS NOPOLITICALORCORPORATESUPPORT POORFACILITIES LACKOFMEDIAEXPOSURE POORGOVERNANCESTRUCTURES

Opportunities Opportunities refer to the possibilities of new growth because of the changes in the external environment and can include such things as: s s s s s

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Threats In line with strengths and weaknesses, the threats are often very similar to the opportunities. Examples of threats include: s s s s s

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MAKING PROGRESS TOWARDS STRATEGIC GOALS Once a strategic plan has been developed and agreed upon by the board and CEO it is time to go about implementing it. A strategic plan serves little purpose if it is developed then sits in a file on a computer or a desk in an office without actually being utilised to guide decision making and the actions of the organisation. In this regard, it is important to circulate the strategy to all stakeholders associated with the organisation. This can be done through hard copy format but in order to make the plan as accessible as possible it should be available for download on the organisation’s website and promoted through the organisation’s social media platforms. The major task for the CEO and management staff once a strategy has been developed is to make progress towards achieving the agreed upon goals and objectives contained within it. At this point the strategic planning process somewhat merges into organisational performance management where specific tools, systems and practices can be adopted to ensure strategic imperatives are being met or have the potential to be met

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(O’Boyle, 2012a, 2014, 2015; O’Boyle & Hassan, 2014, 2015). If the plan has been developed correctly and has followed best practice, each major objective should have associated processes and actions documented to provide a path of action as to how these objectives will be achieved. Nonetheless, these processes will require acute ongoing management. The concept of organisational performance management is a relatively new concept in the world of non-profit sport but as the sector comes to grip with a more professionalised and commercialised environment, we are beginning to see more and more entities adopt such practices and realise the benefit these systems have for strategic management. The most popular tool utilised to ensure strategic goals are being achieved has generally been the adoption or adaptation of a system known as the Balanced Scorecard. Kaplan and Norton (1992) developed this performance management tool, which has been used as an effective strategic planning and management tool by many organisations and across varied industries. It has provided senior management and the board with an effective way of monitoring actions and processes undertaken by employees and allowed them to keep a record of these actions and consequences in an efficient and defined manner. The Balanced Scorecard is perceived to be the most widely used of the various performance management tools that have become available and although initially only adopted in mostly Western countries, it has now spread throughout the global business environment. Since 2000, use of the Balanced Scorecard and its derivatives such as the Performance Prism (Neely, Adams & Kennerley, 2002) has become commonplace in organisations throughout the world. Kurtzman (1997) claims that almost 70% of companies responding to a questionnaire were measuring organisational performance in a way that was extremely similar to that of the Balanced Scorecard. This method of organisational performance management has been implemented by government institutions, small businesses and corporations, and has started to be adopted within the non-profit sport sector. Standardised Balanced Scorecards (working from a common template) are easily accessible for organisations and can have a potentially positive impact on many organisations. However, using one organisation’s Balanced Scorecard and attempting to apply it to another organisation can prove problematic and research has suggested that one of the major benefits of the Scorecard lies within the design process itself (Kurtzman, 1997). If the strategic planning process has been conducted correctly, much of the design process for a bespoke Balanced Scorecard will already have been completed through the identification of the necessary processes and actions required to achieve strategic imperatives. The unique aspect of the Balanced Scorecard, which was originally seen as a radically new development in the measurement initiatives adopted by organisations, was that it combined financial and non-financial aspects of organisations to give a more detailed view of how the organisation was actually performing within its operating environment. In addition, utility and clarity were further enhanced as Kaplan and Norton suggested measures within an organisation should be condensed and grouped together so they could be easily displayed within a simple four box model (Kaplan & Norton, 1992). It became clear that selection of measures, relating to both the filtering and clustering process, would prove to be the integral activity that management must address in the

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implementation of this system. The measures to be selected, according to Kaplan and Norton, should be synonymous with issues and initiatives that are relevant within the organisation’s strategic plan and a simple process of requiring information concerning attitudinal issues would determine which measures should be associated with each perspective (Kaplan & Norton, 1992). As noted above, Kaplan and Norton’s (1992) initial design was laid out as a simple ‘four box’ model that could help organisations ensure they were getting the best results out of all the resources available to them. The model suggested that financial measures should not be the only perspective to be analysed. They proposed three other perspectives along with the traditional financial one: Internal Business Process, Learning and Growth, and the Customer were also selected to form the major concerns within an organisation. Research surrounding Balanced Scorecards is vast and some authors have suggested the renaming of these perspectives along with the addition of further perspectives within the model. This may have particular importance for the adoption of the tool within non-profit sport organisations as these entities can often have comparatively different performance dimensions to those operating within a traditional profit-driven business environment. These arguments have become apparent as a result of recognition that dissimilar but equivalent perspectives would potentially give rise to a different set of measures. A crucial element of the adoption of this model is that users have confidence around the aspects chosen to be measured and that they are relevant, otherwise results achieved may be regarded as being insignificant. The case study involving Rowing New South Wales is a perfect example of how the organisation has developed its own bespoke Balanced Scorecard type measurement tool to track and help achieve key objectives contained within the organisation’s strategic plan.

Case Study: the Strategic Framework for Rowing New South Wales Strategic Plan 2013–2017 Introduction ,œÜˆ˜}Ê iÜÊ -œÕÌ…Ê 7>iÃÊ -ÌÀ>Ìi}ˆVÊ *>˜Ê ­Óä£ÎqÓä£Ç®Ê œÕ̏ˆ˜iÃÊ Ì…iÊ «>Ì…Ê ÜiÊ ÜˆÊ Ì>ŽiÊ ÌœÊ >V…ˆiÛiÊ œÕÀÊ ÛˆÃˆœ˜Ê œvÊ «œÃˆÌˆœ˜ˆ˜}Ê iÜÊ -œÕÌ…Ê 7>iÃÊ >ÃÊ
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Ian O’Boyle

>˜`ÊÜiÊ܈Ê>}>ˆ˜ÊV>ÊÕ«œ˜Ê̅iÊÃÕ««œÀÌʜvÊ̅iÊÀœÜˆ˜}ÊVœ““Õ˜ˆÌÞÊ̜ʅi«ÊÕÃÊ>V…ˆiÛiʜÕÀÊ }œ>ÃÊ œ˜Ê >˜`Ê œvvÊ Ì…iÊ Ü>ÌiÀ°Ê 7iÊ ÀiVœ}˜ˆÃiÊ Ì…>ÌÊ Ì…iÊ i˜œÀ“œÕÃÊ Vœ˜ÌÀˆLṎœ˜ÃÊ œvÊ œÕÀÊ VÕLÃ]Ê ÃV…œœÃÊ>˜`ÊۜÕ˜ÌiiÀÃÊ>ÀiÊVÀÕVˆ>Ê̜ÊÀœÜˆ˜}½ÃÊ«ÀœÃ«iÀˆÌÞ° Vision ÃÊ̜ÊLiÊ
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Metric

Target

Monitor

1 Highest ranked state on the RA Cup point score. Maintain three gold medals at the Interstate Regatta. Highest rank Youth Cup. 2 U19 (25% athletes and 40% coaches), U23 (25% athletes and 40% coaches), and Senior A (30% athletes and 25% coaches) 3 5% improvement in point score analysis of NSW Club and school results at Aust. Champs (5pts 1st; 3pts 2nd; 2pts 3rd; 1pt A finalists) % of NSW athletes for composite crews

1 Annually at the conclusion of Nationals 2 At the announcement of the Australian team 3 Annually at the conclusion of Nationals

Participation 2 3 22.5% 4

1 5,500 members of Rowing NSW 2 72 Regatta conducted; 50,000 raced and 19,000 entries received 3 500 supporting, Recreational and Official members 4 Equal numbers men/women competing 19–30 years

1 2 3 4

Monthly CEO report Monthly CEO report Monthly Annually

1 Growth within existing competition classes at RNSW Regattas Regatta and competition 2 Conduct of Marquee regattas 3 Add non-elite U21 – big boats 25% 4 Increased number of accredited BRO and available volunteers

1 5% increase participation from U19–26 Year on Year for 4 years 2 State Championships, Reindeer Regatta, Schoolboy and Schoolgirl head of the River, Riverview Gold Cup 3 Introduce U21 Comp × 6 Regattas 2013–2014 season 4 100 accredited and active NSW BROs

1 2 3 4

Annually Monthly CEO report Monthly CEO report Quarterly CEO report

1 Mainstream media mentions and press relations 2 RNSW comms outbout and effectiveness 3 Number of members receipt of comms 4 Number attendees at target social functions

1 6 major news articles relating to NSW events. 20 local paper articles 2 75% member satisfaction with communications from surveys conducted 3 2,500 e-news and 2,500 Facebook friends, 600 Twitter followers 4 Presentation Awards (200), Support the Crew (350), KC&QC Luncheon (280), media event

1 Monitoring monthly, report quarterly 2 Survey quarterly 3 Monitor monthly 4 Annually

1 Gross turnover, surplus and reserves 2 Club development 3 Non-competitive revenue generated 4 Member satisfaction rating

1 Inc: $1,010,000. Exp: $985,000 ($25,000 surplus) 2 Four camps conducted (Schoolboy, Schoolgirl and 2 × Masters) 3 $850,000 4 75% member satisfaction from surveys conducted

1 2 3 4

1 State ranking at interstate competition 2 Percentage of NSW Performance representatives in AUS team 3 Per capita performance at 22.5% Australian Rowing Championships

1 Number of competitive members Seats raced Rowing NSW membership mix Gender equality in 19–30 comp?

Promotion 15%

Rowing NSW 15%

FIGURE 8.2Ê ,œÜˆ˜}Ê

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Annually Monthly quarterly Annually Survey each regatta

Strategic management in non-profit sport

127

ROLE OF THE INDIVIDUAL IN ACHIEVING STRATEGIC OBJECTIVES We often hear the cliché that an organisation’s most valuable resources are the people within it. In terms of strategic planning and management this is certainly the case. It is the people who work within the organisation that will develop the processes and lead the actions that will enable the organisation to achieve its strategic vision and mission. It is therefore of utmost importance that suitable systems of individual performance management are in place to ensure that the actions of employees are indeed contributing to overall strategic objectives (O’Boyle, 2012b, 2013a, 2013b; O’Boyle & Cummins, 2013; O’Boyle & Hassan, 2013). Ensuring that employees are motivated and can see how their own work contributes to these wider organisational goals is arguably a crucial role for management but also a difficult one to achieve. The term ‘line of sight’ has commonly been used as a method of allowing individual employees to visualise this process in action. Line of sight requires clear linkages between individual job descriptions, operational plans and strategic plans. This may be of particular importance for sport organisations where the roles of individual employees can often be varied. The question remains, however, how can management ensure that individual roles and the actions of employees AREINLINEWITHBROADERSTRATEGICINITIATIVES Conducting regular performance appraisal meetings is arguably the most effective way to ensure that this is the case. During these meetings, key performance indicators for individual employees can be discussed along with future objectives and a plan of how these will be achieved. The identification of training or development needs can also be conducted at this time, which inevitably can assist the organisation to achieve strategic imperatives, highly qualified and experienced employees, allowing the organisation to achieve strategic imperatives in the most efficient and effective manner. Performance appraisal meetings in the traditional sense normally occur between an individual employee and their line manager. The norm for these appraisals would be at one-year intervals but many organisations are seeing the value of conducting these meetings every six months. The volume of employees reporting to a single manager within an organisation will obviously impact on the ability to conduct appraisals at higher or lower frequencies. Given that the majority of sport organisations, particularly those within the non-profit sector, employ far fewer individuals in comparison to their corporate counterparts, it is not unreasonable to suggest that performance appraisal meetings could be conducted at six-month intervals in these entities. This would certainly allow management to ensure that roles and actions at the individual level are feeding directly into operational and therefore strategic plans. Performance based pay is far from the norm in non-profit sport organisations but senior management including CEOs can often have these types of rewards built into their contracts. Although there is much debate on the effectiveness of these rewards, they certainly provide some accountability to ensure that senior management are making progress towards the organisation’s strategic vision. These rewards will of course be granted or denied following each eligible employee’s own performance appraisal meeting with their relevant manager or, in the case of the CEO, the board.

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Ian O’Boyle

Conducting performance appraisals for employees certainly has many benefits in terms of monitoring performance and making progress towards a strategic vision. However, somewhat unique to the non-profit sporting environment is the level of volunteerism in the industry and the reliance on volunteers to contribute towards the achievement of strategic objectives. It is very difficult if not impossible to conduct a traditional performance appraisal of a volunteer as there is little leverage to work with in terms of their non-remunerated status. However, as above, the more experienced, qualified and skilled volunteers are, the more potential they have to actively make a major contribution to the objectives set out in the strategy. It is therefore important to assess the training and development needs of key volunteer positions in the organisation (including board members) and invest in their development accordingly.

SUMMARY Strategic planning is a key process in the functioning of all contemporary sport organisations vÀœ“Ê̅iʏœV>ÊVÕLʏiÛiÊ̜Ê̅iʈ˜ÌiÀ˜>̈œ˜>Ê}œÛiÀ˜ˆ˜}ÊLœ`Þ°Ê
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CHAPTER 9

Managing volunteers in grassroots sport Tracy Taylor and Ashlee Morgan

Chapter objectives After completing this chapter you should be able to: UÊ …ˆ}…ˆ}…ÌÊ̅iʈ“«œÀÌ>˜ÌÊÀœiÊ̅>ÌÊۜÕ˜ÌiiÀÃÊ«>Þʈ˜Ê}À>ÃÃÀœœÌÃÊëœÀÌÆ UÊ ˆ`i˜ÌˆvÞʎiÞÊ>ëiVÌÃʜvʓ>˜>}ˆ˜}ÊۜÕ˜ÌiiÀÃʈ˜Ê}À>ÃÃÀœœÌÃÊëœÀÌÆ UÊ œÕ̏ˆ˜iÊ ii“i˜ÌÃÊ œvÊ ÛœÕ˜ÌiiÀÊ ÀiVÀՈ̓i˜Ì]Ê ÌÀ>ˆ˜ˆ˜}Ê >˜`Ê `iÛiœ«“i˜Ì]Ê >˜`Ê “œÌˆÛ>̈œ˜Ê >˜`Ê«iÀvœÀ“>˜ViÆ UÊ «ÀœÛˆ`iÊ iÝ>“«iÃÊ œvÊ ÀiÃi>ÀV…Ê >˜`Ê iۈ`i˜ViÊ L>Ãi`Ê }œœ`Ê «À>V̈ViÊ ˆ˜Ê ۜÕ˜ÌiiÀÊ management.

Key Terms: Sport Volunteers; Human Resource Management; Recruitment; Retention; Motivation

INTRODUCTION Grassroots sport (or community sport) is typically viewed as having a range of positive outcomes for its participants; not only benefiting those who actively take part in the sport itself, but also creating benefits for those involved in the delivery of the sporting experience (e.g. coaches, referees, volunteers). The positive traits, functions and outcomes attributed to both active participation in sport and involvement in its delivery have increasingly been the focus of state and national government policy. Sport is seen as a means of addressing a broad array of social issues and policy challenges (Bloyce & Smith, 2010; Coakley, 2011; Coalter, 2007, 2008; Hylton & Totten, 2008). While some researchers (e.g. Coalter, 2015; Nicholls, Giles & Sethna, 2011) have questioned the role of sport in creating positive change in personal and community development, many Western governments continue to expound the belief that sport has a crucial role to play in building an effective society and collaborative communities. Providing these positive sporting opportunities to all members of the community requires a sport delivery system that is functional and adequately resourced. Typically, volunteers provide the resources required to support local sport organisations.

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It is acknowledged here that the way sport is delivered varies significantly between countries, depending on the nation’s sport structure. Within most systems, local sport organisations consist of a mixture of three main types of providers: the voluntary or civic sector, the public or state sector and the commercial or market sector (Vos et al., 2012). For the purpose of this chapter, locally based sport and club sport that is delivered by non-profit sport organisations are referred to as ‘grassroots’ or community sport. Furthermore, the emphasis in this chapter is on sport-specific organisations; that is, organisations that have a mission to deliver one sport (e.g. tennis or football) in contrast to multisport community enterprises (e.g. recreation and fitness centres) or associations that run sport programmes to achieve non-sport ends (e.g. community health centres). For most non-profit sport organisations, volunteer labour plays a significant role in service delivery (Cuskelly, Taylor, Hoye & Darcy, 2006; Davies, 2004; Seippel, 2002) due to a limited financial resource base. Volunteers not only have considerable economic value in terms of the impact of their labour (Andreff, 2006; Breuer & Wicker, 2009; Gratton & Taylor, 2000), but also contribute to social capital, social cohesion and the development of organisational culture. However, increasing commercialisation and professionalisation of the sport sector, changing work and leisure patterns, and introduction of more and more restrictive legislation and regulations have created additional pressures on the volunteer workforce (Cuskelly et al., 2006; Horch & Schütte, 2009; Stenling & Fahlén, 2009; Vos et al., 2012). Additionally, many state funding bodies now expect sports to become more like ‘businesses’, which means professionalising service delivery and management to strengthen their competitive position (Thiel & Mayer, 2009). However, a cautionary note has been sounded, suggesting that this move to have a central focus on efficiency and professionalisation may lead to alienation of the ‘traditional’ volunteer and result in a decrease in sport volunteers (Vos et al., 2012). It has been argued that grassroots sport organisations often operate with insufficient resources, limited paid staff and a reliance on volunteers who may or may not have the competencies required to ensure organisational sustainability (Misener & Doherty, 2009, 2013). The importance of appointing and retaining appropriately qualified and paid employees is well established; however, ensuring volunteers are competent and have the right culture fit and approach to service delivery is also critical to a club’s performance and stakeholder satisfaction (Lock, Filo, Kunkel & Skinner, 2013). This chapter discusses human resource management considerations of attracting, selecting, retaining and managing sport volunteers. It draws on research based evidence and ‘real life’ examples to illustrate key issues and present examples of good practice. For the purpose of this chapter, a sport volunteer is defined as an individual who gives their time for the common good of sport, without financial gain. Sport volunteering may be in a formally constituted role within a sport organisation, such as a club manager or board member, or it may be in less formalised roles including assisting with fund raising for a club or helping on an ad hoc basis. Within sport there tends to be two main types of sport volunteer, those who assist within community sport organisations at local, regional, state or national level, and those who volunteer at one-off or annual sport events. Both types of volunteer are discussed in this chapter.

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VOLUNTEERS IN SPORT Community sport clubs and organisations provide recreational and competitive sport programmes at local or ‘grassroots’ level. In most Western countries volunteers are critical human resources in the governance of community sport and associated service provision. These organisations are heavily dependent on the work of volunteers for a range of duties, including programme delivery, general administration, operational and governance and management roles (Cuskelly et al., 2006). Volunteers within community sport organisations cover the logistics of sport provision and undertake critical financial tasks, such as preparing grant applications (Sotiriadou & Wicker, 2013). As pressure on volunteers to perform a plethora of duties increases and considering their value as providers of community sport, volunteer management related research has gained significant momentum in the past 15 years. It is worth noting that most of the theorising about community sport volunteer motivations has been conducted within the context of North American, Antipodean and Western European contexts where non-profit sport delivery systems are similarly constituted. The importance of volunteers to community sport has seen a notable output of research examining multifarious aspects of volunteer recruitment, management and retention. Volunteer-dependent organisations are increasingly implementing human resource management techniques to improve their recruitment and retention of volunteer personnel. Understanding individuals’ different reasons for volunteering is part of the process of effective volunteer planning and management (Newton, Becker & Bell, 2014). Insight into what motivates individuals to volunteer can assist with satisfying their needs and encouraging ongoing commitment and dedication to the organisation. Studies on volunteer motivations have identified a variety of reasons why people become sport volunteers. It is recognised that understanding and identifying volunteer types can potentially assist sport organisations and clubs in the design of their volunteer human resource management practices, and better satisfy the needs of volunteers. For example, Treuren (2014) examined volunteers’ motivation from five event organisations in Australia and found three distinct motivation profiles. These were: enthusiasts, who enjoy various aspects of volunteering; conscripts, who volunteer with some level of reluctance; and instrumentalists, who volunteer in search of material benefit. Furthermore, analysis of the Australian Bureau of Statistics survey data indicated that volunteers in sport organisations reported a variety of motivations for volunteering, with the three main reasons being: (1) to help others in the community (53% of volunteers); (2) personal satisfaction (46%); and (3) personal or family involvement (46%) (Australian Bureau of Statistics, 2011). New Zealand research on the motivation of volunteers and their experiences is documented in The Heart of Sport: the Experiences and Motivations of Sports Volunteers (Sport and Recreation New Zealand, 2011). While 95% of all respondents reported that they would recommend being a sport volunteer to other people, over one-third of all sport volunteers considered quitting their main role in the 12 months prior to the survey. Issues of time and work commitments, personality clashes, club ‘politics’ and a feeling that it is time to move on were given as the main reasons for considering leaving. Additionally, one-third said that they would not continue volunteering if family members involved with the club left the organisation. These data raise a number of questions regarding how sport organisations should plan for and manage their volunteer workforce.

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VOLUNTEERS AND HUMAN RESOURCE MANAGEMENT PLANNING Human resource management planning, processes and practices guide the selection and recruitment of volunteers. It is important to understand how different human resource management methods and approaches can be used to enhance motivation and create a positive workplace. The approach of sport organisations to volunteer management varies depending on the sport itself, the country’s culture and sport system, the level of access to a pool of volunteers and a range of local factors. It is critical that host sport organisations appreciate their environmental and cultural context, are clear about the role of volunteers within the organisation and understand why people volunteer. For example, in the German context, Hallmann (2015) examined determinants of and time committed to volunteering in sport. Hallman’s main findings indicate that men are more likely to volunteer than women, and that human capital and the motive of shaping society negatively influences the decision to volunteer. However, engagement in other voluntary positions had a positive effect on volunteering. Time committed to volunteering was influenced by: male gender, having children, meeting people, club membership, shaping society and number of voluntary engagements (Hallmann, 2015). In a comprehensive study of the organisational capacity of Canadian community sport clubs, Doherty, Misener and Cuskelly (2013) identified seven critical elements of human resource management that influence club goal achievement. These were: (1) enthusiasm – individuals’ passion, dedication and energy to work; (2) human capital – knowledge and experience within the club; (3) common focus regarding club values and priorities; (4) sufficient volunteers; (5) continuity of volunteers; (6) volunteer succession; and (7) development and support for volunteers. They concluded that for community sport organisations, dedicated volunteers who have relevant skills or knowledge are critical to optimising organisational performance (Doherty et al., 2013). Community sport organisations can inherit various benefits by forming relationships with other organisations. Inter-organisational relationships provide access to resources, knowledge, social benefits and community cohesion (Misener & Doherty, 2013). Collaborating with other organisations and inheriting such benefits can potentially ease some of the burden placed on the volunteer workforce of the community sport sector.

VOLUNTEER RECRUITMENT Volunteer recruitment is a significant human resource management issue for community sport organisations. Volunteers are often former players or have family/friends playing within the club/organisation. Encouraging past and present players to take on volunteer positions has been a crucial element in sustainable recruitment practices. In investigating this issue, Cuskelly and O’Brien (2013) proposed a transition-extension framework that considers psychological and social factors that contribute to individuals transitioning from playing sport to volunteering in sport. They provide insight into the transitioning phase in volunteering, which is valuable for community sport organisations seeking to retain and encourage longevity of individuals’ involvement within the sport. Their study

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examined stalwart volunteers (those who played and volunteered for over 20 years) within community sport organisations in Australia. They found that the sense of identity gained through involvement with sport (predominantly within a particular organisation) was a significant driver for volunteers to continue volunteering. Relationships, a sense of belonging and feeling of competence gained through feedback from others, also motivated volunteers to continue with their duties (Cuskelly & O’Brien, 2013). Schlesinger, Klenk and Nagel (2015) investigated decision making processes in the recruitment of volunteers within nine sport clubs in Switzerland. They found that recruitment was reactive as opposed to strategically planned, decisions were rather superficial with limited discussion and decision making processes were determined by key personnel involved in establishing club policy (Schlesinger et al., 2015). They concluded that the success of recruitment practices is determined by the competence of the decision makers within sport clubs. In a study of Market Segmentation Study for Volunteers, the Australian Sports Commission (2014) provides data to assist sport organisations to develop targeted and effective volunteer recruitment and retention strategies. The research examined the attitudes, motivators, needs and barriers that underpin Australians’ decisions to volunteer in sport, including at club level and other types of sport-related volunteering, as compared to other (non-sport) voluntary activities. The Australian adult population was segmented into 10 types, based on attitudes to volunteering and current volunteering behaviour. These were: s

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(APPY (ELPERS n VOLUNTEERS WHO SUPPORT THEIR FAMILY IN THEIR ACTIVITIES BY VOLUNteering in club sport. These volunteers are likely to be involved in multiple activities. #OMMUNITY#OMMITTEDnTHESEVOLUNTEERSAREMOTIVATEDBYTHESOCIALINTERACTION and enjoyment that volunteering offers. They have a feeling of identity and commitment to a community organisation and its future. /PPORTUNISTS n THIS GROUP OF PERSONS VOLUNTEER TO GAIN A PERSONAL BENElT SUCH AS practical skills or work experience. They also enjoy being part of the atmosphere of a sporting environment, or having the chance to meet elite athletes or sporting personalities. !LTRUISTSnTHESEVOLUNTEERSHAVEDESIRETOHELPOTHERS GIVEBACKTOTHECOMMUNITY and to help the disadvantaged. /VERCOMMITTEDnTHESEPERSONSVOLUNTEERBECAUSETHEYFEELITISEXPECTEDOFTHEM They often feel that they could use their time elsewhere. /CCUPIED/BSERVERSnTHISGROUPISNOTAVERSETOVOLUNTEERINGFORACLUBSPORT BUT they simply have other priorities and are more likely to volunteer if their own child is directly involved. 3IDELINED n PERSONS WHO ARE OPEN MINDED ABOUT VOLUNTEERING BUT INJURY LACK OF time or other personal reasons become a barrier. 3ELF3ERVERSnTHISGROUPISYETTOlNDACAUSETHEYFEELPASSIONATEABOUT4HEYMAY be motivated if they perceive a personal benefit. 7ELL)NTENTIONEDnTHISGROUPHASNOREALREASONTOVOLUNTEERWITHINTHESPORTSECTOR They are unlikely to be sport participants themselves. 5NINVOLVEDnTHISGROUPHASLITTLEINTERESTINEITHERSPORTORVOLUNTEERINGINGENERAL

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VOLUNTEER MANAGEMENT Building a grassroots sport volunteer workforce, especially when sport organisations do not have access to financial incentives or other resource based motivations, requires consideration of the use of opportunity-enhancing human resource management strategies. The latter are designed to motivate volunteers through practices such as redesigning volunteers’ tasks to be more empowering and enriching or to expand and extend their knowledge and skills base. There are numerous organisations/programmes that assist grassroots sport with recruitment, training and retention of volunteers. For example, V Star, an initiative of the Government of South Australia, helps sport and recreation clubs to manage volunteers (www.ors.sa.gov.au/sport_and_recreation/volunteering). V Star is a free web tool that provides a range of ideas, templates and resources for grassroots clubs. For example, it provides a quiz to determine how your club is currently performing, helpful hints for clubs and customised templates that can be downloaded. V Star also supports the STARCLUB programme. The STARCLUB programme recognises clubs that are well run, manage volunteers efficiently and provide a safe and welcoming environment (www.recsport.sa.gov.au/starclub/index.php). Clubs can measure themselves against the STARCLUB criteria and receive information and support to improve their operations and environment.

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VOLUNTEER SATISFACTION AND RETENTION Recently Bang (2015) studied volunteer members of non-profit sport organisations in the United States and his work provides insight into the role of age in influencing job satisfaction and intention to continue volunteering. The results provide insight for sport management practitioners with regard to strategically tailoring recruitment and training approaches to reflect the needs of volunteers of varying ages. It was found that younger volunteers’ perceived professional respect for others in the organisation is likely to impact their degree of job satisfaction. However, job satisfaction is much more likely to encourage retention of older volunteers than their younger counterparts (Bang, 2015). Scholars continue to research various aspects of managerial practice and organisational capacity that might improve volunteer human resource management. It has been suggested that club governance and philosophy significantly affect both volunteer and financial problems (Coates, Wicker, Feiler & Breuer, 2014). A recent study in the Australian non-profit sector found that to increase volunteer commitment and intention to continue volunteering, learning and developing opportunities need to be clearly promoted within the organisation (Newton et al., 2014). Similarly, in a sport event context in Britain, Allen and Bartle (2014) found that volunteers’ level of engagement was related to a combination of initial motivation and management practices. Community sport is typically run on minimal budgets and with limited resources. Thus, volunteers provide significant value in this sector. There is increasing financial pressure on non-profit community sport organisations as a result of increasing financial costs and issues with generating income (Cordery, Sim & Baskerville, 2013). These financial constraints stem from the need to upgrade facilities and expand services while operating in a highly competitive market with regard to attracting grants and/or sponsorship investment. Thus, volunteers within the community sport sector are being asked to stretch minimal resources further. As Wicker and Breuer (2013) discuss, there may be a correlation between high volunteer dependence and financial problems in sport clubs. Their study of organisational problems within German non-profit sport clubs revealed that clubs with high revenue experienced only minor volunteer issues, while those with high volunteer dependence suffered financial difficulties (Wicker & Breuer, 2013). Volunteers and paid staff working in community sport must look for new and innovative techniques and practices to minimise financial vulnerability and ensure the organisation’s sustainability. Changes in the sport sector related to the adoption of technology and innovation by community sport organisations also impacts volunteers (Hoeber, Doherty, Hoeber & Wolfe, 2015; Hoeber & Hoeber, 2012). Innovations can be technical or administrative. Technical innovations in community sport relate to particular sports and the delivery of programmes (Hoeber et al., 2015). Administrative innovations include support required to deliver programmes (Hoeber et al., 2015), and the management of volunteers. Hoeber et al. (2015) examined the types of innovation adopted by ultimate frisbee, curling, soccer and swimming clubs across Canada and found that clubs are trying to ease the burden on their volunteers by pursuing new initiatives. Particularly within ultimate frisbee clubs, a relatively new sport, attention was given to innovative methods to engage volunteers (Hoeber et al., 2015). A recent study by Aisbett and Hoye (2015) examined the relationship between human resource management support practices and volunteers’ commitment and

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satisfaction at a community cycling event in Australia. They found that volunteers’ satisfaction was more strongly attributed to informal support provided by their supervisor than formal procedures established at the organisational level. Additionally, it was reported that the volunteers’ level of commitment was more closely related to formal organisational support they received. Such research emphasises the importance of human resource management practices with volunteers in addition to paid staff. Aisbett and Hoye (2015) noted that the formal support provided by the organisation and the informal support provided by supervisors are important human resource management considerations when managing a team of volunteers.

VOLUNTEER MOTIVATIONS In recent years, interest in the relationship between volunteer motivation, satisfaction and experience has increased (Bang, Ross & Reio, 2012; Giannoulakis, Wang & Felver, 2015). Research indicates that the motives and experiences of volunteers differ greatly depending on their form of volunteerism (Wollebæk, Skirstad & Hanstad, 2014). There is a distinction between volunteers involved in the long-term delivery of sport and episodic or event volunteers (Güntert, Neufeind & Wehner, 2015; Wollebæk et al., 2014). Wollebæk et al. (2014) define these two types of volunteerism as collective volunteerism and reflexive volunteerism. Collective volunteerism involves participation as a means to confirm group identity. In collective volunteerism, organisational socialisation is strong and the individual is seen as an organisational member (Wollebæk et al., 2014). Reflexive volunteerism, on the other hand, is characterised by a low level of connection between the individual and organisation. This is usually associated with short-term events, where the organisation has less inherent value to the individual. Wollebæk et al. (2014) studied volunteerism at the point of intersection between collective and reflexive volunteer cultures. Data was collected from volunteers prior to the 2010 test event for the FIS Nordic World Ski Championships in Norway. Because sport events in Norway are run by clubs and their members, this event could not be categorised as a purely collective or reflexive context. It was discovered that volunteers for this event were different from general sport volunteers (Wollebæk et al., 2014). The data revealed two distinct groups of volunteers: (1) those that volunteer regularly and are associated with organised sport; and (2) those that do not volunteer regularly and are not affiliated with organised sport (Wollebæk et al., 2014). This latter group, in contrast to group (1), were younger, predominantly female and low-income earners. These volunteers were not motivated by interest in the sport or to make friends; rather they saw this event as an opportunity to enhance their own social and human capital. Wollebæk et al. (2014) suggested that collective and reflexive cultures of volunteerism can coexist at one sporting event.

LONG- TERM CLUB/ORGANISATION VOLUNTEERS Given the important role volunteers play in the delivery of sport, it is critical that sport clubs are effective in recruiting, managing and retaining volunteers (Hallmann, 2015).

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As noted previously, it is also important for organisations to understand what motivates volunteers, as volunteer experiences are evaluated relative to individual motivations. Bang et al. (2012) investigated the role of a volunteer’s level of job satisfaction in the relationship between motivation and effective organisational commitment. Data was obtained from volunteers of 22 non-profit sport organisations in the United States. The results indicated that motivation has a direct influence on commitment (Bang et al., 2012). Darcy, Maxwell, Edwards, Onyx and Sherker (2014) studied the development of social capital within Surf Life Saving Australia (SLSA), an Australian non-profit sport organisation that provides a safety and rescue service on Australian beaches. SLSA is predominantly operated by volunteers at club level and provides unique sporting opportunities and competitions. Darcy et al. (2014) conducted focus groups with a range of SLSA clubs from different regions of Australia. Their most notable finding was the overarching importance of belonging among volunteers, with a focus on bonding and mateship between members (Darcy et al., 2014). Shared social values including responsibility, commitment, respect and giving back to the community were also important (Darcy et al., 2014). This study highlights the potential of volunteer networks within sport organisations to facilitate the development of social capital throughout communities. In the communities studied, both individual and collective forms of social capital were evidenced. Creating a sense of belonging and developing individual skills (e.g. leadership, communication and self-confidence) within a club provides opportunity to enhance social capital throughout the broader community (Darcy et al., 2014).

EVENT VOLUNTEERS Volunteerism at sport events has been studied in a range of contexts from mega sport events such as the Olympic Games (Fairley, Green, O’Brien & Chalip, 2014) to smallscale local events (Kerwin, Warner, Walker & Stevens, 2015). In a mega event context, the prestige of the event and opportunity to be part of the event are dominant motivators for volunteers (Giannoulakis et al., 2015). Güntert et al. (2015) suggested that individuals may be motivated to volunteer at events for the pure excitement and entertainment value that events provide. Studying volunteers at the 2008 European Football Championship in Switzerland, these authors discovered that excitement and good citizenship (including patriotism and hospitality) are important volunteer values (Güntert et al., 2015). Similarly, Lee, Reisinger, Kim and Yoon (2014) found patriotism to be a strong determinant of satisfaction among volunteers of Expo 2012 in Yeosu, Korea. This study drew on self-determination theory to explore volunteer motivation as mediated by satisfaction and attitudes towards volunteering. Four constructs of volunteer motivation were found: altruism, patriotism, intrinsic and extrinsic dimensions (Lee et al., 2014). This event was promoted by the Korean government as a national mega event, which potentially led to citizens viewing volunteering for the event as their civic duty. Volunteer satisfaction was strongly influenced by intrinsic motivation, while the relationship between satisfaction and extrinsic motivation was weak (Lee et al., 2014). These results indicate that patriotism and intrinsic motivation can be pivotal drivers of mega event volunteer satisfaction.

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Giannoulakis et al. (2015) similarly examined the relationship between motivation, experience and satisfaction among volunteers at the Asian Games in Qatar. The main motivation for volunteers’ involvement was event-related factors and the primary influence on volunteers’ experiences was recognition and acknowledgement (Giannoulakis et al., 2015). As the authors noted, this was possibly due to the cultural context of the study and the fact that the participants were predominantly male and Qatari. It was found that satisfaction was related to the fulfilment of event-related motives and positive event experiences (Giannoulakis et al., 2015). VanSickle, Pierce and Diacin (2015) also investigated volunteers’ motivations and consequent satisfaction in the context of the 2012 Super Bowl in the United States. Four volunteer motivations were found: community support, love of sport, personal growth and career development (VanSickle et al., 2015). These all significantly affected satisfaction levels among the volunteer network (VanSickle et al., 2015). Also in a mega event context, Fairley et al. (2014) investigated the role identity of volunteers at the Sydney 2000 Olympic Games. Data was collected from volunteers in the lead-up to and during the event. Further data was collected 12 years after the event from pioneer volunteers, those who had been involved in the event in the very early planning stages. For the Sydney Olympic Games, 500 pioneer volunteers were recruited during the three to four years prior to the event (Fairley et al., 2014). Pioneer volunteers are episodic volunteers and, due to their involvement in the early years of event planning, are also long-term or continuous volunteers. Fairley et al. (2014) found that one of the major differences was that pioneer volunteers formed friendships during the course of their involvement. Twelve years after the event these pioneer volunteers still get together and have continued to volunteer together at other events. Pioneer volunteers also reported a strong sense of affiliation with the organisation, as they witnessed a significant amount of activity behind the scenes that led to feelings of connection and ownership of the event (Fairley et al., 2014). During the event, pioneer volunteers transitioned into general volunteer positions, supervised by paid staff. It was noted that their experience developed over the previous few years was not recognised, which presented a potential threat to their role identity as pioneer volunteers. This study highlighted that during transition periods from pre-event to event roles, strategies should be implemented to ensure that the role identity of pioneer volunteers is respected. Hallmann and Harms (2012) also investigated the determinants of motivation for sport event volunteers. Volunteers at the 2011 Handball Champions League final in Cologne and the 2011 Concours Hippique International Officiel in Aachen were studied. While there were slight differences between events, generally across both contexts, intrinsic factors were more influential than extrinsic motivation (Hallmann & Harms, 2012). It was found that expression of values and personal growth had the strongest influence on motivation and future behaviour (Hallmann & Harms, 2012). Kodama, Doherty and Popovic (2013) provided a unique insight into the experience of mega event volunteers. Through autoethnographic data recorded by the lead author, this study presented the lived experience of a volunteer at the 2010 Winter Olympic Games in Vancouver. The study highlighted the excitement of the event and the process of ‘making the cut’ as a volunteer. Of notable importance was the team of volunteers, and the shared purpose, experiences and support within this team (Kodama et al., 2013). It was found that event volunteering created individual identity as well as

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connections among volunteer networks. One point of contention raised in this paper was related to volunteer role/job uncertainty stemming from ambiguity of logistics (Kodama et al., 2013). While autonomy in decision making has been associated with favourable outcomes among event volunteers (Güntert et al., 2015), Kodama et al. posit that ambiguity in this context should be avoided. Thus, volunteers should be given certain degrees of freedom in decision making and utilising personal initiative; however, they should not be working with uncertainty. In the context of a small-scale sport event, Kerwin et al. (2015) explored sense of community among volunteers. At a canoe and kayak event in Canada they applied the six factor Sense of Community in Sport Scale (SCS) to test sense of community among volunteers and whether the volunteer experience enhances sense of community. Kerwin, Warner, Walker and Stevens (2015) proposed this SCS based on a study of athletes and suggested this be applied in a volunteer context. Kerwin et al. (2015) found that five of the six factors were supported including administrative consideration, common interest, equity in administrative decisions, leadership and social spaces. The SCS factor that did not show statistical fit with this volunteer data was competition (Kerwin et al., 2015). The authors recommended that the construct of competition requires further research as a value within the sense of community framework. Welty-Peachey, Lyras, Cohen, Bruening and Cunningham’s (2014) investigation of the motivations of volunteers was conducted at a multinational sport for development event, the 2011 World Scholar-Athlete Games in the United States. This event brings young people from all over the world together to participate in games and activities, promoting peace, inclusivity and fairness. Volunteers were motivated by values’ alignment with the event and what it endorses (Welty-Peachey et al., 2014). Volunteers were also driven by a social motive, the opportunity to meet new people and learn about different cultures. Understanding and career factors were also noted. That is, volunteers sought new skills and knowledge through their event experience. The final motivation was self-enhancement, as they enjoyed being part of the event delivery process and engaging with the event participants. These results differ from mega event contexts, as the desire to be part of a high profile professional sport event is not relevant. In this sport for development context, the importance of values, giving back to the community and social aspects of volunteering is highlighted (Welty-Peachey et al., 2014). Therefore, it is suggested that sport for development event organisers should not only promote the values of the event, but also the social engagement opportunities. Kristiansen, Skirstad, Parent and Waddington (2015) examined volunteering in the Norwegian town of Vikersund in the lead-up to hosting the 2013 Ski Flying World Cup. Vikersund has long hosted major competitions in ski flying and recently hosted two World Cups and one World Championship. In a town with a population of fewer than 3,000 people, these events attracted over 1,000 local volunteers. While most volunteer studies focus on the individual, this study investigated the long-term commitment by a whole community of volunteers. It was found that long-term volunteering is an institutionalised social process, which is associated with strong collective identity in the community. Local pride and high community identity were pivotal elements in the volunteer process, and these were reinforced by building stakeholder relationships and through resisting external powers over time (Kristiansen et al., 2015). This study indicates that volunteering can be a collective way for communities to celebrate their community identification and local pride.

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Schlesinger and Gubler (2015) investigated the extent to which volunteers at sport events differed in the motives of their engagement, and how to classify these volunteers. They looked at the motives of 1,169 event volunteers at the 2014 European Athletics Championships in Zürich. They found that motivational processes differ among sport event volunteers and that volunteers sometimes combine contradictory bundles of motives. Four different volunteer motive profiles were identified and described by their positive levels on the individual motive dimension: the community supporters, the material incentive seekers, the social networkers and the career and personal growth pursuers. They concluded that a motive based typology of sport event volunteers can provide event managers with information that can be used to create distinctive and designable working conditions and tasks that can be tailored to a wide range of individual prerequisites.

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144

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CHAPTER 10

Sport governance Ian O’Boyle

Chapter objectives After completing this chapter you should be able to: UÊ Õ˜`iÀÃÌ>˜`Ê܅>ÌÊ̅iÊÌiÀ“Ê}œÛiÀ˜>˜Viʓi>˜ÃÆ UÊ `iÃVÀˆLiʅœÜÊ`ˆvviÀi˜ÌÊÌÞ«iÃʜvÊëœÀÌʜÀ}>˜ˆÃ>̈œ˜ÃÊ>ÀiÊ}œÛiÀ˜i`Æ UÊ LiVœ“iÊv>“ˆˆ>ÀÊ܈̅Ê̅iÊÀœiʜvÊ̅iÊLœ>À`ʈ˜ÊëœÀÌʜÀ}>˜ˆÃ>̈œ˜ÃÆ UÊ i>À˜Ê̅iʈ“«œÀÌ>˜ViʜvÊi̅ˆVÃʈ˜ÊëœÀÌÊ}œÛiÀ˜>˜ViÆ UÊ Õ˜`iÀÃÌ>˜`Ê̅iʈ“«œÀÌ>˜ViʜvÊ}i˜`iÀÊ`ˆÛiÀÈÌÞʈ˜ÊëœÀÌÊ}œÛiÀ˜>˜Vi°

Key Terms: Board; Ethics; Federal Model; Unitary Model; Gender Diversity

INTRODUCTION Governance is not a synonym for management. Governance refers to the structures and processes used by an organisation to develop its strategic goals and direction, monitor its performance against these goals and ensure that its board acts in the best interests of the members. Management is concerned with the daily operations of an organisation and ensuring operational goals are being met. The style and form of governance applied will vary across industries, the size of the organisation in question and the stakeholders involved. Differentiating between the terms stakeholder and shareholder is a key component to understand how governance structures vary between corporate and non-profit entities; for instance, those involved in the governance of sport. In the corporate environment a shareholder is an individual or group who has a vested financial interest in the success of the organisation. The concept of a shareholder is generally absent from the world of non-profit sport governance, but like their corporate counterparts, these organisations have a variety of stakeholders that are important for the management and governance of these bodies. Therefore, the skillsets that are required for those charged with governing in the non-profit sport context as opposed to the corporate environment can often be quite different. The basic principles of good governance include: transparency, accountability, democracy, responsibility, equity, efficiency, effectiveness and communication. These are all

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principles that board members should follow along with some more specific roles to ensure that they are following best practice in relation to contemporary sport governance. Reflecting the opening sentence in this chapter, the board’s role is not at the management level within an organisation. The Chief Executive Officer (CEO) and his or her senior management team are responsible for carrying out the daily operations of the organisation and the board’s role reflects a more strategic or long-term view coupled with an oversight role for management. It is important for the board to allow the CEO to perform his or her role and certainly to provide support, but at the same time refrain from becoming involved in the day-to-day operations of the organisation. Apart from the principles of good governance outlined above, some of the more specific roles of the board in a non-profit sport organisation may include: s s s s s s s s

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The above are some relatively generic roles that the board in a non-profit sport organisation may be required to fulfil. The ability of a board to carry out these roles may depend on a number of factors, and potentially impacting on this ability is the manner in which the board is structured, including its size. The average size of a board in a national sport organisation (NSO) in Australia, for instance, is between seven and nine members. In the past, these boards would generally have had much larger numbers as they needed to attract as much expertise as possible, and high calibre board members were often difficult to attract. As the sporting environment has become more professionalised and indeed commercialised, these organisations have reformed their board structures to ensure that members have specific skillsets relevant to the current challenges their organisations are facing. The identification and recruitment of board members with such specific skillsets allows for a reduction in the size of the board, which removes issues such as poor intragroup communication and the potential formation of factions, and instead promotes easier decision making processes and arguably more constructive board meetings. Another issue that potentially impacts on the ability of the board to fulfil its various roles is board independence. In countries where a federal model of sport governance exists, such as Australia, New Zealand, the United Kingdom and Canada, delegate representation has traditionally been the norm in terms of board composition. This means that a representative from each region or state would assume a position as a director on the national board, which would often result in issues of self-interest or parochialism arising where delegates become primarily concerned with protecting the interests of their home states or regions as opposed to the interests of the organisation from a whole of sport perspective. This situation has led to calls for more independent boards where members do not have any direct affiliation with a constituent member body. Some organisations have moved to complete independent board membership

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whereas others have come halfway by incorporating more independent directors while still retaining elements of a delegate representative system. This is commonly referred to as the hybrid model. The above provides an introduction to sport governance in terms of the major issues related to the board within a sport organisation. The remainder of this chapter goes deeper into some of the core issues facing contemporary sport organisations in terms of their governance. Issues such as governance models, gender diversity, ethics, corruption, and indeed the differences in governance between non-profit and professional sport, will be explored. But first, the section below provides a brief synopsis of the work undertaken in academic research related to board governance in this important and interesting area of the sport management environment.

ACADEMIC RESEARCH AND SPORT GOVERNANCE The need for sport organisations to improve their governance has seen an increase in attention both within the industry itself and in academic research (e.g. Adriaanse & Schofield, 2013; ASC, 2013; Hassan & O’Boyle, 2016; Hoye & Doherty, 2011; Ferkins, Shilbury & McDonald, 2009; O’Boyle & Shilbury, 2015; Shilbury, O’Boyle & Ferkins, 2016; Taylor & O’Sullivan, 2009). Current thinking on sport governance from an academic perspective typically adapts theoretical and conceptual models from more established fields of inquiry, primarily those in the commercial or other non-profit literature bases including public administration (Ferkins & Shilbury, 2010; Shilbury & Ferkins, 2014). Theoretical frameworks including agency, institutional, resource dependence, stakeholder, network and stewardship have all been applied in this way in previous studies (Bradbury & O’Boyle, 2015; Dickson, Arnold & Chalip, 2005; Henry & Lee, 2004; Hoye & Cuskelly, 2007; Mason, Thibault & Misener, 2006; O’Boyle, 2015; O’Boyle & Bradbury, 2013; Soares, Correia & Rosado, 2010). An important element of the extant literature is research relating to the volunteer nature of the majority of boards in the non-profit sport sector. This voluntary involvement complicates the issue of sport governance as the skills, qualities and characteristics that are required to govern and lead effectively, and collectively, under a collaborative governance approach cannot always be guaranteed to be present within voluntary boards (Shilbury, Ferkins & Smythe, 2013). Studies related to voluntary boards have provided insight into the correlates of volunteer board performance in the non-profit sporting context; yet, investigations of the interrelationships between boards such as those operating in governance networks have not been well documented (Doherty & Carron, 2003; Doherty & Hoye, 2011; Hoye & Auld, 2001; Hoye & Cuskelly, 2003, 2004; Hoye, 2004, 2006). The volunteer nature of these boards is reflective of the delegate representative model of board composition that has been traditionally synonymous with federal governing structures as noted previously (Hoye & Cuskelly, 2007). This representative model explains the levels of trust that are built within networks as delegates are generally elected to represent the interests of their own affiliations and not necessarily those of the sport (or a network) as a whole (Shilbury et al., 2013). Furthermore, the selection of essential skillsets potentially required to foster trusting relationships such as high level leadership skills, and communication and negotiation skills, is difficult given the nature

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of the nomination process in delegate models. Within the non-profit context in general, Kearns (1995) suggested that board members should possess specific talents that add value to the board, and a clear understanding of their role and selflessness. It can be seen how a delegate representative model may not necessarily facilitate this situation and, hence, the inclusion of these qualities in non-profit sport boards. All of these issues are further complicated by the limitations on time that volunteer board members may have to interact with other governing powers in a network.

SPORT GOVERNANCE MODELS In countries such as Austria, Canada, New Zealand, Ireland, the UK and a host of other European nations, sport governance models generally fall under two categories: a federal model or a unitary model. The federal model of sport governance is most often a reflection of the political system that operates within a country where various states or regions are affiliated with a national government. In the Australian example, for instance, each of the six states have the power to govern in their own right concerning a number of issues such as policing and education, but are also subject to the laws of the Commonwealth or federal government in terms of issues such as tax and national defence. As a direct reflection of this, sport governing bodies at state levels within Australia are legally autonomous bodies and do not have to work closely with their respective national sport organisation if they choose not to. However, it is generally always in the best interest of a state and indeed a sport to have all affiliated bodies working in cohesion for obvious reasons. Harmonious relationships in sports that operate under a federal model, whether in Australia or internationally, are not always the norm, however. The independent status of these entities often results in tensions that manifest in distrust and conflict and in some instances a complete breakdown of communication between governing bodies within a sport network. Clearly this is not an ideal situation for a sport code to find itself in. Industry bodies, such as the Australian Sport Commission, are well aware of the challenges imbedded in such a system and indeed have attempted to develop policies to encourage more harmonious relationships in these networks. One of the principles in the Australian Sport Commission’s (2013) Mandatory Governing Principles reads: Different sporting organisations operate under different governance structures. While not requiring the adoption of any single model, the ASC will consider closely whether sports’ governance models are likely to enable them to achieve their core participation and high performance objectives in the most cost effective fashion. Each structure should be clearly documented with a clear delineation of the roles, responsibilities and powers of the Board, management and each body involved. Further, there should be no overlap in the powers of any two bodies or individuals in a governance structure. (ASC, 2013, p. 2) The alternative model to the federated structure is commonly referred to as the unitary model. In this system the state bodies that constitute a sporting network are essentially

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replaced with offices of a national body and direct lines of accountability and reporting are established with the national entity. The boards at state level are disbanded and the national body then holds the balance of power in terms of making decisions that impact the whole of the sport. In certain situations, an advisory board may be retained at the state level to act as a consultative body and as a voice for the local membership. The major benefits of this model, aside from removing the issue of distrust and conflict, is that one strategic plan can be rolled out across the entire sport and common high performance and participation initiatives can be implemented in all states creating economies of scale and minimising any duplication of resources. Of course there are significant challenges that must be overcome if a sport network is to attempt to implement such a model. Overcoming the existing conflict and distrust that may be present in the network is of prime importance. Achieving ‘buy in’ from the states will be difficult if low levels of trust exist. In order for a unitary system to be adopted, state boards are the ones who have to relinquish power and ultimately vote themselves out of office, a task that many may find challenging. Furthermore, a federal model allows for localised governance of a sporting code in different geographical regions. The unitary model may appear to be somewhat of a blunt instrument that does not necessarily account for the different challenges and pressures being faced by different regions in the sport. For countries where there is a large geographical size such as Canada and Australia, this issue becomes even more prominent.

WOMEN IN SPORT GOVERNANCE Women remain underrepresented on the majority of sporting boards at international and national levels. Few sport federations have more than 30% of female board members and the average is closer to, or below, 20%. So, is it important to measure and track the number of women on the boards of sport governing bodies? Is gender balance and diversity needed on a board to increase board and organisational performance? Fewer female voices at the top levels in sport will reinforce the situation of female athletes being second-class citizens in relation to media coverage, sponsorship and salaries (Women on Boards, 2014). Let’s look at some statistics from organisations such as the International Olympic Committee (IOC) and other sport federations: The Olympic Charter states that ‘The IOC encourages and supports the promotion of women in sport at all levels and in all structures with a view to implementing the principle of equality of men and women’. The London Olympics saw the highest participation by female athletes: 4,676 (44.2%) of the 10,569 athletes who competed. Other statistics included: s s

.ATIONAL/LYMPIC#OMMITTEES./#S HADWOMENASCHEFSDEMISSION ./#SHADWOMENASmAGBEARERS 

The IOC Executive Board itself comprises 15 members of whom only 4 are women (27%). Of the 115 members of the IOC, less than 25% are female. Affiliated bodies such as the NOCs have less than 20% women on their governing bodies.

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Looking at international sport federations in general, as of 2015, only those representing gymnastics, squash, hockey, triathlon, softball and netball have more than 30% women on their governing boards. The international federations representing boxing, cricket, handball, judo, rugby, shooting and tennis do not have any female representation on their governing bodies. Let’s take the Australian Olympic and Commonwealth Games Committees as examples: s

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&EMALE ATHLETES ARE PARTICIPATING AND WINNING MEDALS AT RATES EQUAL TO OR HIGHER than, their male counterparts, but continue not to be appointed to executive and board roles. 4HE  !USTRALIAN /LYMPIC TEAM CONSISTED OF  MEN AND  WOMEN THE women won 57% of the medals (20 medals out of 35), even though there were more medals available for male athletes to win. 4HE!USTRALIAN/LYMPIC#OMMITTEE"OARDCURRENTLYCONSISTSOFPEOPLEOFWHICH 5 (35.7%) are women. The Commonwealth Games Association only has 2 women from a board of 20.

The Australian Sport Commission (2013) has set out a new requirement in Principle 2.6 of its Mandatory Governing Principles, relating to gender balance on national sport organisation boards: There is good evidence that diversity on Boards leads to better corporate performance. The Commonwealth Government has set a target of a minimum of 40 per cent of Commonwealth Boards being female. Similarly, the ASC’s position is that each NSO should seek to achieve a target of 40 per cent female representation, which the ASC will review pending progress and the overall skills mix of boards. Reporting on gender representation for NSO executive management positions will also be required. (ASC, 2013, p. 3) The ASC ‘named and shamed’ all those sports funded by the ASC that had less than 20% female representation on their boards. At the time these were Archery Australia, Australian Paralympic Committee, Australian Rugby League Commission, Basketball Australia, Boxing Australia Limited, Confederation of Australian Motor Sport (none), Cricket Australia, Diving Australia, Judo Federation of Australia (none), Motorcycling Australia and Surf Life Saving Australia. In the case of Basketball Australia, the ASC Mandatory Principles led to a major review of the nomination and election process for the board in 2014. The barriers to advancement for increased female representation of sport governing boards appears to be related to a number of issues including attitudes and perceptions of the ‘male-dominated’ sport culture, perceptions and expectations of women, work-life issues, and the need to change the structure lower down to give more opportunities to women to come through and sit on boards at club level, state level and then up to national level. Regardless of the real or perceived barriers, increasing levels of participation and success by females in all sporting arenas is ‘raising the bar’ when it comes to acceptable

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numbers of women in key decision making roles on sport boards. The pipeline argument that there are no suitable or interested women available to take on board roles has not been sustainable for many years. It is as important for the world’s aspiring female athletes to see role models in the corporate boxes and the boardrooms as it is representing their country.

SPORT GOVERNANCE AND ETHICS We see cases of unethical practice almost daily, whether in our own lives or being reported in the media. Unethical behaviour associated with sport has also featured prominently in the media in recent years, such as financial mismanagement at organisations like FIFA, match fixing, cheating and abuse in the sport context. The ideals of sport are founded on concepts of fair play and good conduct but as we are all well aware, these principles can often be absent from the actions of players, coaches, fans and organisations in general involved in the world of sport. Many would argue that one of the key functions of a well-governed sport is to ensure that high standards of ethics are upheld in all aspects of the organisation’s reach. Some of the specific examples that have received international infamy include: NFL teams giving monetary rewards (bounties) for injuring an opposing team’s player; NCAA athletes (mainly football and basketball) generate millions of dollars for video game companies and receive no compensation for the use of their image and likeness; the use of performance enhancing drugs in a variety of sporting codes; professional athletes tweeting racial slurs or other inappropriate postings on social media. Sadly we are all too familiar with these types of instance. This is problematic because ‘the sport industry prides itself on providing wholesome entertainment, promoting positive values, building character, and creating good role models. Unethical behaviour threatens all of the positive benefits’ (Ridinger & Greenwell, 2005, p. 156). Dealing with ethical dilemmas may be a challenging task for the board of a sport organisation. They will be looked upon by the stakeholders of the organisation and perhaps the general public for leadership regarding ethical issues and to ensure that they do the right thing. However, what exactly the right thing is and how to decide on the right thing to do can often be a difficult task. These decisions, particularly if they involve a high profile sport and/or athletes, will be heavily scrutinised by the media, fans and readers of the news that may have an impact on the future of the organisation. Perhaps the best way that a board can ensure that the best decision is reached in relation to ethical dilemmas is to have an agreed upon systematic process established that they can follow for each ethical dilemma that may arise. An example may be: 1 2 3 4 5 6

Identify the correct problem to solve; Gather all pertinent information; Explore codes of conduct that shed light on the issue; Do not let your own values/beliefs cloud judgement; Consult with other governing bodies; List decision options;

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Look for a win–win outcome if possible; %NSURETHEDECISIONMAKINGPROCESSISTRANSPARENTANDDOCUMENTED Take time to make/announce the decision; Make the best decision possible; Evaluate the decision over time.

A closely linked area to the topic of ethics in sport governance is that of corporate social responsibility. This term refers to how good a corporate ‘citizen’ the organisation is. It is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing ‘more’ into human capital, the environment and the relations with stakeholders. (European Commission, 2001, p. 4) There is no singular measure of good citizenship because by its very nature it can only be ascertained by the perspectives of a multitude of stakeholders. One example is provided by Carroll (1991): 1 2 3 4

Economic – the lowest level of CSR Legal Ethical Philanthropic – the highest level of CSR.

GOVERNANCE AND THE OLYMPIC GAMES 4HEMODERN/LYMPIC'AMESWEREREBORNIN WHENALL MALEATHLETESFROM nations competed in 9 different sports. Flash forward to London 2012 when 10,569 athletes from 204 nations competed in 26 sports. The Olympics have clearly grown in size and complexity and therefore require a suitable international governing structure. Three main levels of organisational influence direct the Olympic Games: 1 2 3

The Olympics are organised through the jurisdiction of the International Olympic Committee. Bids to host the Olympic Games are made through National Olympic Committees. The responsibility for organising a successful bid falls on the Organising Committee for the Olympic Games (OCOG).

The IOC has its headquarters in Switzerland and is a non-profit institution independent from any government or nation. Members of the IOC are elected at the ‘Session’ or Annual General Assembly from the worldwide sporting community. There are 115 members of the IOC; however, having an NOC does not guarantee that a nation will have a representative on the IOC. Historically, IOC members were elected by other members of the committee but this process was heavily criticised for being elitist and

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biased. The composition of the IOC now sees 70 positions reserved for ‘ordinary’ individual members, 15 for active Olympic athletes, 15 for members of international sport federations and 15 from NOCs. Between annual Sessions, the governance of the IOC is charged with the IOC executive committee. There are 15 positions on this board including the president, 4 vice presidents and 10 members elected from the Session. Each member of the board serves a four-year term, with the exception of the president who serves an eight-year term. The IOC generates extensive revenues through its ownership of the rights to the Olympic Games and associated trademarks. Bid cities also have to guarantee a percentage of the revenue generated through hosting will be returned to the IOC. However, the largest portion of IOC revenue comes through sponsorship and broadcasting rights associated with the Olympic Games every four years. Exploring the value of broadcasting rights, specifically for the Rio 2016 Games and beyond from locations such as Australia, Europe and the United States, it is easy to see how the IOC has evolved to become such a powerful global entity within the governance of sport: s

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The IOC and its executive board are certainly the two most powerful bodies when it comes to Olympic sport governance but the NOCs and local organising committees (LOCs) also have an important role to play in the governance of the Olympic movement. NOCs control operations and policy relative to the Olympics within a particular country. They are the official body representing the delegation of a country’s athletes at the Games. Only athletes certified by an NOC can compete at the Games. If entering the bidding process, the NOC must nominate one city no later than nine years in advance of the Games, then the IOC makes a decision on hosting rights seven years in advance of the event. The LOC for an Olympic Games event also plays a crucial role in the Olympic governance system. They are responsible for organising the initial bid, and if the bid is successful, they are responsible for virtually all preparation associated with the Games. They usually also remain in place after the Games to finalise accounts, for reporting and to kick-start the ‘legacy’ of the event. LOCs are generally made up of both volunteers and paid staff and they almost act as an organisation in and of themselves. The Olympic Games are run like a business and LOCs are expected to do so also. The goal for the LOC is to have surplus funds to leave as a legacy for the next host city. As noted above, broadcasting rights and corporate sponsorship form the backbone of such revenue and are becoming increasingly more important as the costs for hosting an /LYMPIC'AMESGROWTOASTRONOMICALLEVELS,ONDON3UMMER'AMES!5$BILLION 3OCHI7INTER'AMES!5$BILLION

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GOVERNANCE AND FIFA FIFA, the world governing body for the sport of soccer (football), provides perhaps the best and certainly most well-known example of sport governance in practice. Referring back to the principles of good governance at the beginning of the chapter, it could easily be argued that FIFA have been accused of following very few if any of them. FIFA and corruption in terms of sport governance have gone hand in hand dating back almost 20 years but it is only recently that the extent of this corruption has been truly unveiled. In 2015, 14 current and former FIFA officials and associates were indicted by the FBI in the United States on charges of rampant, systematic and deep-rooted corruption. FIFA’s president at the time, Sepp Blatter, had always denied any wrongdoing but eventually became the focus of a Swiss-led criminal investigation over a ‘disloyal’ payment to another FIFA official, Michel Platini. The manner in which FIFA presidents are elected has been a serious cause for concern in relation to the organisation’s governance. Each of the 209 FIFA member nations casts a single vote for the body’s president. This system gives smaller countries outsized influence. For instance, a vote from Andorra weighs exactly the same as a vote from Germany. Furthermore, Blatter was accused of using FIFA development money, earmarked for promoting soccer in impoverished nations, to secure presidential votes and general support for his initiatives. The allegations of corruption came to a head at FIFA following the bidding processes FOR THE  AND  7ORLD #UPS AWARDED TO 2USSIA AND 1ATAR RESPECTIVELY )N December 2014, FIFA chose not to release its own investigation into corruption, instead releasing an executive summary that it said exonerated the organisation from any corruption charges. The report’s independent author, American lawyer Michael Garcia, resigned in protest. Financial mismanagement does not appear to be the only form of corruption that was taking place at FIFA. Allegations have surfaced that the German and Saudi governments, coupled with investments by German corporates in South Korea and Thailand, ensured that Germany won its 2006 hosting rights by one vote in 2000. It is suggested that the German government of then Chancellor Gerhard Schröder complied with a request from the German Football Association to lift at short notice an embargo on weapons sales to Saudi Arabia and supply it with anti-tank rocket launchers in a bid to ensure that the then Saudi member of the FIFA executive committee Abdullah Al-Dabal would vote for Germany rather than Morocco. Other allegations suggest that German companies such as Volkswagen, Daimler and Bayer promised to significantly increase their investments in Thailand and South Korea to secure the votes of two other FIFA executive members. The arrests and investigations of the FIFA officials cast doubt over the transparency and honesty of the process of allocating World Cup tournaments, electing its president and the administration of funds, including those earmarked for improving football facilities in some of FIFA’s poorer members.

-«œÀÌÊ}œÛiÀ˜>˜ViÊ Ê 155

GOVERNANCE IN PROFESSIONAL SPORT (NBA AND NFL) The governance of professional sport is very different to governance within the non-profit sporting context. Professional sport is a business. These organisations are not necessarily in existence to provide a public good or a major benefit to the community (although undoubtedly some do). Governance in professional sport is much more akin to the governance structures we see in the corporate environment reflecting the common for-profit nature of these entities. However, there are also some unique aspects to the world of professional sport governance that we do not see in either the corporate or non-profit governance systems. In this section the focus is primarily on governance of the National Basketball Association (NBA) and the National Football league (NFL) in the United States as they provide the best examples of professional sport governance in practice. Although not identical, these leagues share a number of commonalities in that they have a league commissioner, a board comprising team owners and a central administrative body that handles the day-to-day operations of the league. The commissioner in a professional sport league is a powerful entity who passes judgement on a number of issues that concern the ongoing activities of the league. They are in somewhat of an unusual positon in that they can be seen as an employee of the owners but in other ways they have the disciplinary power of the owners. An example of this occurred in the NBA in 2014 when Los Angeles Clippers’ owner Donald Sterling was banned from the league for racist remarks. Some of the general roles and functions of a league commissioner include: s s s s s s

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The other major party in the governance of the NBA and NFL are the owners. Despite a wide range of powers, the commissioner is not necessarily an all-powerful entity in these leagues. Owners can decide on strategic issues such as franchise relocation, league expansion or contraction, rule changes and revenue sharing. Of course, one of the major issues for owners is to negotiate the salary cap in consultation with the league and players’ unions. Ownership of a professional NBA or NFL franchise does not come cheap and many of these owners are very successful business people in their own right who have a passion for the sport they are involved with. Of course, sport team ownership in the NBA or NFL is ideally not a philanthropic exercise. Although some teams lose money each year, a franchise has almost never been sold for less than its original purchase price. Some examples of prominent owners include Microsoft’s Paul Allen (Portland Trailblazers and Seattle Seahawks), Microsoft’s Steve Ballmer (LA Clippers), Michael Jordan (Charlotte Bobcats), Jay-Z (Brooklyn Nets) and Mark Cuban (Dallas Mavericks).

156

Ian O’Boyle

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Ê«iÀëiV̈Ûiʜ˜ÊVœÀÀի̈œ˜Êˆ˜Ê ̅iÊLˆ``ˆ˜}Ê«ÀœViÃÃÊvœÀÊ̅iÊ"Þ“«ˆVÊ>“iðÊJournal of Sport Management, 20]ÊxÓqÇΰ "½ œÞi]Ê°Ê­Óä£x®°Ê>VˆˆÌ>̈Ûiʏi>`iÀň«Êˆ˜ÊëœÀÌʓ>˜>}i“i˜Ì°Ê˜Ê °ÊÕÀÀ>Þ]Ê°Ê"½ œÞiÊEÊ*°Ê Փ“ˆ˜ÃÊ ­ `î]ÊLeadership in sportÊ­««°Ên£q™{®°Ê
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Lˆ˜}`œ˜\Ê ,œÕ̏i`}i° "½ œÞi]Ê°ÊEÊ-…ˆLÕÀÞ]Ê °Ê­Óä£x®°Ê Ý«œÀˆ˜}ʈÃÃÕiÃʜvÊÌÀÕÃÌʈ˜ÊVœ>LœÀ>̈ÛiÊëœÀÌÊ}œÛiÀ˜>˜Vi°ÊJournal of Sport Management°Ê
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Leadership in sport management Duncan Murray and Sarah Chua

Chapter objectives After completing this chapter you should be able to: UÊ ÀiVœ}˜ˆÃiÊ̅>Ìʏi>`iÀň«ÊˆÃÊ̅iÊ>««ˆV>̈œ˜ÊœvÊ«œÜiÀÆ UÊ ˆ`i˜ÌˆvÞÊ̅iÊ`ˆvviÀi˜ViÃÊLiÌÜii˜Ê>ʏi>`iÀÊ>˜`Ê>ʓ>˜>}iÀÆ UÊ …>ÛiÊ >Ê L>ÈVÊ Õ˜`iÀÃÌ>˜`ˆ˜}Ê œvÊ Ãœ“iÊ œvÊ Ì…iÊ Vœ˜Ìi“«œÀ>ÀÞÊ vœVÕÃiÃÊ œvÊ “>˜>}i“i˜ÌÊ Ì…iœÀÞÊ ­ÌÀ>˜ÃvœÀ“>̈œ˜>]Ê ÃiÀÛ>˜ÌÊ >˜`Ê >Õ̅i˜ÌˆVÊ i>`iÀň«®Ê >ÃÊ Ì…iÞÊ «iÀÌ>ˆ˜Ê ÌœÊ Ã«œÀÌÊ organisations.

Key Terms: Leadership; Power; Transformational; Servant; Authenticity.

INTRODUCTION There is little doubt that effective leadership is considered essential to the functioning of any organisation. However, many of us still seem to struggle with what a leader is specifically required to do to be effective. Leaders often have their attention dispersed over a range of both strategic and operational imperatives. Leaders of organisations therefore need to have the capacity to focus on and address multiple divergent issues simultaneously. They must have a grasp of both the human and the functional or technical side of the organisation. They need to think in the moment, as well as the future. They need to consider both the internal and the external environment of the organisation, the culture, the climate. Still, despite these complexities, leadership is perfectly simple and yet obviously also incredibly complicated. In essence it is about the application of power to influence others, in order to achieve the desired goals and outcomes of the organisation. Thus, a leader’s skills, and how they approach this task, are vital. For the leader of a sport organisation, the basic tenet of the role is no different. Sport is the context, and may slightly influence approaches, but ultimately the central components of leadership are universal. This chapter focuses on the concept of leadership at the broader level, specifically how some of the major contemporary leadership theories pertain to sport organisations.

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It discusses what leadership is, what the main contemporary theories of effective leadership are and how they pertain to sport management in particular. Specifically, the nature of leadership, rather than management, in the sport management field is explored. Leadership is defined and how leadership equals the application of power to achieve influence is considered. Some of the key contemporary theories pertinent to leadership in sport management are also explored using sport (organisation) examples to highlight how the theories are directly relevant to the role of a sport manager or administrator and to demonstrate their application.

WHAT IS A LEADER? So, what is a leader? Are people born leaders? Or is leadership something you can learn? It has been proposed that great leaders achieve extraordinary things by inspiring others with a common purpose or vision (Kouzes & Pozner, 1988). How do they achieve this? What makes one person highly capable in this space while others fall short? Exceptional leaders seem to have the ability to transmute their vision into a concrete reality. They have the capacity for their followers to buy into their vision and to act in a fashion that makes the vision a reality. Many people use the terms ‘leader’ and ‘manager’ interchangeably. However, there is a notable distinction between the two constructs. A leader is not a manager. A leader may be a manager, but it is not a fait accompli. Likewise a manager may not be a leader. They may be a leader in name, they may have authority, but they may not lead. Leadership is therefore distinct to management, but it does have links to it, in particular via the application of power, which will be explored in detail later in this chapter.

LEADER VERSUS MANAGER Although the two terms are used interchangeably, when we scratch the surface we see that there are notable distinctions between leadership and management. We can have leaders who do not manage. They may inspire and influence followers, but they have little direct management over the individuals that follow them. Some political leaders may fall into this category. They can inspire public adoration and devotion, but they have very little direct management influence over those followers (the case of Donald Trump and his supporters in the lead-up to the 2016 US presidential election may highlight this). Likewise, there are also managers who do not lead. A manager who is very good at ensuring that organisational policies are adhered to may be an excellent manager, but may well have no leadership acumen at all. To simplify the distinction, a leader is an agent of change. They seek change; they seek to take their club, team or organisation to a new place, a better place. In contrast, the role of a manager is to maintain consistency and the status quo. Managers who are good at the process side of their job are thus the antithesis of leaders as they actively seek what great leaders repudiate: routine.

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HOW TO DEFINE LEADERSHIP When we consider what a leader is, what leadership is, it seems so simple. Well, it is leading, isn’t it? But what does it consist of? What constitutes leadership? There are a multitude of definitions of leadership. To touch on a few, Jacobs (1970, p. 232) defined leadership as ‘An interaction between persons in which one presents information of a sort and in such a manner that the other becomes convinced that his outcomes will be improved if he behaves in the manner suggested or desired’. Likewise, Donelly, Ivancevich and Gibson (1985, p. 362), define leadership as ‘an attempt at influencing the activities of followers through the communication process and toward the attainment of some goal or goals’. Finally, Northouse (2007, p. 3) proposes that leadership is ‘a process whereby an individual influences a group of individuals to achieve a common goal’.

Leadership: power and influence What emerges from these definitions is that leadership, for all its different foci and characteristics, is simply, at its core, a process of influence. It is about a person trying to achieve desired outcomes (goals, or a vision perhaps) through their influence on or of others. So how is this influence transmitted? How can a leader influence others? This is where the idea that leaders have power comes into play; that leadership is the application of some form of socially prescribed power in order to influence others.

THE FIVE SOURCES OF POWER Unfortunately, we tend to view power through a negative lens; however, it is not, in and of itself, a bad thing or automatically a dictatorial expression of social control. Put simply power may be expressed as the ability to get someone else to do something you want done. So where does this power come from? French and Raven in 1959 proposed that there were five sources of power: reward, coercion, legitimacy, expert and referent power (French & Raven, 1959). They proposed that three (reward, coercion and legitimacy) were embedded within the position or the formal role of the individual, meaning a manager’s official title, their role within the organisational hierarchy and/or their level of authority. Anyone in the position has (potentially) the commensurate level of positional authority. In contrast, French and Raven stated that the remaining two (expert and referent) resided in the individual, or the person. These were reflective of underlying qualities, characteristics or behaviours of the individual that that person then brought to the role of leader. These five sources are detailed in Figure 11.1.

Reward power Reward power is simply the ability the leader has to influence others through rewards. This reward obviously has to be of value to the subordinate for it to have the potential to influence them. The capacity to offer rewards is enshrined within the authority of the position itself; anyone within a given position has the capacity to offer commensurate rewards. Such rewards typically include pay, a bonus, a promotion or other benefits.

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PERSONAL INFLUENCE

POSITIONAL AUTHORITY

Reward

Coercion

Legitimacy

Expert

Referent

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A sport example may be the manager of a football team. The manager may offer a player an increase in their match payments, based on them improving their performance.

Coercive power Coercive power typically refers to the leader’s ability to punish, based on their positional authority. The application of coercive power may include threatening the subordinate with some form of discipline, a pay cut, removal of benefits or position. Coercive power only has impact if the subordinate knows that the leader will follow through with it. In the case of the manager of the football team, examples of coercive power may include threatening to drop a player to the reserves based on their poor performances, removing the captaincy or vice-captaincy from them or fining them for poor off-field behaviour.

Legitimate power Legitimate power is ensconced in a leader’s position (Raven, 2008). This power is conferred by the very nature of the authority inherent in the position within the organisation. The marketing manager of a professional baseball club has legitimate authority over all the staff who work in that department simply through the nature of their position. This power confers the ability to influence via the authority of the position. An example of the use of legitimate power would be if the marketing manager of the baseball club requested staff to assist with a charity drive for the club. Many staff may well agree to participate, even though it may be outside their formal role. However, being asked by the individual with legitimate power due to their position or status in the organisation, often gives the request legitimacy, outside of coercion or potential reward.

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Expert power Expert power relates to the potential an individual has to influence others due to their specific, or special, expertise. This may include the leader possessing experience, knowledge, skills or information that is central to how they are perceived in their role. It gives them a credibility that is based within them as an individual, rather than due to their position. A pertinent example may be a former Olympic champion swimmer who is working as a professional swimming coach. The coach is providing feedback to their athlete on their stroke. The swimmer would listen to the coach due to their expertise. (‘I’ll listen as they have the knowledge and experience and they are a former champion, so they’re probably right.’)

Referent power Referent power is the ability of the leader to influence their subordinate through identification. French and Raven (1959) define identification as a desire for an individual (in this case a subordinate) to emulate the other. This is usually driven by an attraction to that leader, often due to admiration in which the leader is held. This could be due to their charisma, the interpersonal relationships they have formed with subordinates or even their charm. Interestingly some leaders may not be aware of the level of referent power they have over their followers. It is heavily based on how the subordinate views the leader, and thus the power is conferred by the subordinate to the leader. A pertinent sport example may be a beloved former player returning to coach their old team. Their charisma and the desire of the players to identify with that coach would be reflective of referent power.

HOW TO TURN POWER INTO INFLUENCE To be a good and successful leader, it is clear that you need to appropriately employ all five sources of power. Simply relying on reward and coercion will not maintain motivation of employees, followers or subordinates; it will not facilitate them buying into your vision of leadership. Threats of punishment, for example, will often result only in very short-term compliance and may create feelings of resentment. Likewise, a highly charismatic individual with very limited expertise, or with no legitimate authority, may not be able to maintain influence as people may simply question their requests. (‘You don’t know anything about this, so why should I follow your direction?’ or ‘You’re not my boss. I don’t have to answer to you!’) Exactly how the leader applies power will determine the level of influence, and thus compliance, they have. This could range from: s s s s

ENTHUSIASTICCOMMITMENT INDIFFERENTCOMPLIANCE RELUCTANTOBEDIENCETO FULLRESISTANCE

Still, Schemerhorn et al. (2014) suggest that personal power often is the difference between an outstanding leader and a mediocre one. A leader who has legitimate power

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has the ability to direct, but they may not have the ability to inspire, to get the subordinate or follower (be it an employee, a player or a political supporter) to buy into the vision they are articulating. From this perspective expert, and notably referent power, is key. The importance of the leader as a referent, as a source of motivation and one who reflects an aspirational quality for followers is the basis of some of the key contemporary theories relating to leadership: transformational, authentic and servant leadership. The essence of these theories is explored, and then why they are increasingly gaining traction as critical leadership theories to understand in contemporary sport organisations.

TRANSFORMATIONAL LEADERSHIP Transformational leadership was first proposed by Burns (1978) as an extension of charismatic leadership. Charismatic leaders were seen as individuals possessing a high degree of referent power. This would lead them to have the potential to motivate their followers, players or supporters towards their goals. However, transformational leadership, while drawing upon charismatic leadership, goes further. A transformational leader is more than a charismatic leader as they transform the organisation as well as the people that follow them. Most notably, transformational leadership doesn’t just simply consider the qualities and attributes of the leader; it focuses on how that leader is perceived by their followers. Bass and Riggio (2006, p. 4) define transformational leaders as: Those who stimulate and inspire followers to both achieve extraordinary outcomes and, in the process, develop their own leadership capacity. Transformational leaders help followers grow and develop into leaders by responding to individual followers’ needs by empowering them and by aligning the objectives and goals of the individual followers, the leader, the group, and the larger organization. Transformational leaders therefore benefit both the follower and the organisation. They create new leaders. They appeal to higher-order motives of followers, such as their players. They inspire followers to act beyond their own vested interests and in the broader interest of the organisation. Transformational leaders are agents of change and therefore an organisation and its members are different after the actions of a transformational leader. Transformational leadership was originally conceptualised as comprising four dimensions or components:

Inspirational motivation Leaders can inspire their followers to a higher level of performance. Likewise they increase the followers’ expectations about what is achievable (Kirkbride, 2006). Many coaches of sport teams highlight inspirationally motivating leader behaviour. Coaches ideally provide their players or athletes with aspirational and attainable future goals, stimulating their players’ own desires to want to achieve greater on-field success.

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Idealised influence Akin to charisma, idealised influence relates to the leader possessing the qualities and behaviours that mark them as a role model and someone to aspire to emulate. It encompasses their ability to model or reflect their beliefs and values in how they lead, which in turn provides a model with which followers can align themselves.

Intellectual stimulation As agents of change, transformational leaders encourage creativity and innovative thinking among followers. They promote the need to change the existing organisational paradigms and think proactively and outside the square.

Individualised consideration A transformational leader promotes an ethos of support and personal focus on followers, their goals and aspirations. They seek input from followers and recognise the contributions and ideas of members.

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AUTHENTIC LEADERSHIP Although authentic leadership has not gained the same level of attention in the sport management literature as some other theories (notably transformational leadership), it is highly likely that far more will be heard of this theory in relation to sport leadership over the next decade. Authentic leadership draws from the notion of behavioural integrity, that is, an authentic leader will ‘walk the talk’. Put simply, authentic leaders are those whose actions reflect their stated values and beliefs. Luthans and Avolio (2003) suggested that from this perspective the leader’s character, rather than the style they employ, is most important. The authentic leader, they suggest, is typified by being self-aware, cognisant of both their strengths and their weaknesses. They also have a keen understanding of how they, as a leader, can affect others. This awareness is conducive to creating an organisational environment that allows for self-development among employees. Whitehead (2009) suggested that authentic leaders have three key characteristics: 1 2 3

They are self-aware. They seek improvement and consider the well-being of their followers. They are guided by a strong ethical and moral framework that engenders a strong degree of trust in them among their followers. They are committed to their organisation being successful, as long as the framework of their values is adhered to.

Authentic leadership has been linked to a range of positive organisational outcomes. For example, organisations with authentic leaders have a higher level of employee satisfaction, as well as higher organisational commitment among their employees (Jensen & Luthans, 2006). In addition, improved citizenship behaviours, higher performance and reduced intention to leave have also been identified as among the positive outcomes of an authentic leader (Davis & Rothstein, 2006). Therefore authentic leadership is part of a process that leads to improved performance. The alignment between a leader’s values and behaviours gives them credibility in the eyes of their followers (Gardner, Avolio, Luthans, May & Walumbwa, 2005). This personal and social identification results in higher trust among subordinates, as well as other more affective qualities, such as more positive feelings and hope, which in turn lead to improved performance. This is articulated in Avolio, Gardner, Walumbwa, Luthans and May’s (2004) model of the authentic leadership process (see Figure 11.2).

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So how does this idea of authenticity pertain to sport leadership? Authentic leaders would seem to have the potential to be particularly positive for sport organisations because they facilitate and support the group members’ self-determination and creativity (Ilies, Morgeson & Nahrgang, 2005). In some ways authenticity appears therefore to augment transformational leadership. If a transformational leader inspires followers to buy into their vision, then the authentic leader assures followers that the vision they are buying into is a worthwhile one. This has particular relevance for managers or coaches of sport teams.

Case study: Tony Dungy, NFL coach
vÌiÀÊ>ÊV>ÀiiÀÊ«>ވ˜}Ê ÊvœÀÊ̅iÊ*ˆÌÌÃLÕÀ}…Ê-ÌiiiÀÃÊ>˜`Ê̅i˜Ê̅iÊ->˜ÊÀ>˜VˆÃVœÊ{™iÀÃ]Ê /œ˜ÞÊ Õ˜}ÞÊ̜œŽÊœÛiÀÊ>Ãʅi>`ÊVœ>V…ÊœvÊ̅iÊ/>“«>Ê >ÞÊ ÕVV>˜iiÀÃʈ˜Ê£™™È°ÊiÊLՈÌÊ Ì…iÊÌi>“ÊÕ«Ê̜Ê̅iÊ«œˆ˜ÌÊ܅iÀiÊ̅iÞÊܜ˜Ê̅iÊ-Õ«iÀÊ œÜÊˆ˜ÊÓääÓ°ÊœœÜˆ˜}Ê̅ˆÃ]ÊvÀœ“Ê ÓääÓÊ ÌœÊ ÓäänÊ …iÊ Vœ>V…i`Ê Ì…iÊ ˜`ˆ>˜>«œˆÃÊ œÌÃ]Ê i>`ˆ˜}Ê Ì…i“Ê ÌœÊ Ì…iÊ ÓääÇÊ Ê Championship. Ê œÜiÛiÀ]ʜ˜iʜvÊ̅iʓœÃÌʘœÌ>LiÊvi>ÌÕÀiÃʜvÊ Õ˜}Þ½ÃÊ>««Àœ>V…ʈÃÊ̅>ÌʅiʈÃÊ}i˜Õˆ˜iÊ >˜`ÊÌÀÕiÊ̜ʅˆ“ÃivÊ>˜`ʅˆÃÊÛ>ÕiðÊiÊÀiyiVÌÃÊ>˜`ÊÛ>ÕiÃÊ̅iʵÕ>ˆÌˆiÃʜvÊ>Õ̅i˜ÌˆVˆÌÞÊ>˜`Ê being an authentic and ethical leader. His style has been noted as being one that vœVÕÃiÃÊ œ˜Ê LՈ`ˆ˜}Ê }œœ`Ê Ài>̈œ˜Ã…ˆ«ÃÊ ÜˆÌ…Ê …ˆÃÊ «>ÞiÀÃ°Ê iÊ ÀiyiVÌi`Ê }i˜Õˆ˜iÊ ÀiëiVÌÊ >˜`ÊVœ˜ViÀ˜ÊvœÀʅˆÃÊ«>ÞiÀÃÊ>˜`]ÊiÛi˜Ê`ÕÀˆ˜}Ê`ˆvwVՏÌÊ̈“iÃ]ʓ>ˆ˜Ì>ˆ˜i`Ê̅ˆÃÊ>««Àœ>V…°Ê Dungy has noted that this authentic approach did lead to him missing out on a number œvÊ …i>`Ê Vœ>V…Ê «œÃˆÌˆœ˜Ã]Ê >ÃÊ …ˆÃÊ ÃÌޏiÊ Ü>ؽÌÊ Vœ˜Ãˆ`iÀi`Ê ÀÕ̅iÃÃÊ œÀÊ …>À`Ê i˜œÕ}…Ê ÌœÊ ÃÕVVii`Ê>ÌÊ̅iʅˆ}…iÃÌʏiÛi°

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Duncan Murray and Sarah Chua

Ê ˜Ê …ˆÃÊ LœœŽÊ The Mentor LeaderÊ ­Óä£ä]Ê «°Ê Ýۈˆ®]Ê Õ˜}ÞÊ ÃÌ>Ìi`Ê Ì…>ÌÊ ¼-ÕVViÃÃvÕÊ “i˜ÌœÀÊ i>`iÀÃÊ “>ŽiÊ Ì…iÊ «iœ«iÊ Ì…iÞÊ i>`Ê LiÌÌiÀÊ «>ÞiÀÃ]Ê ÜœÀŽiÀÃ]Ê ÃÌÕ`i˜Ìý°Ê
Ê Vœ““ˆÌ“i˜ÌÊ ÌœÊ œ˜i½ÃÊ vœœÜiÀÃÊ ˆÃÊ œ˜iÊ œvÊ Ì…iÊ …>“>ÀŽÃÊ œvÊ >˜Ê >Õ̅i˜ÌˆVÊ i>`iÀ°Ê ÌÊ ˆÃÊ Ì…iÊ v>VˆˆÌ>̈œ˜Ê œvÊ ˆ“«ÀœÛˆ˜}Ê Ì…iÊ «>ÞiÀ½ÃÊ Ãiv‡Ê`iÌiÀ“ˆ˜>̈œ˜Ê >˜`Ê VÀi>̈ۈÌÞ°Ê œÜiÛiÀ]Ê Ì…iÊ ÌÀÕiÊ “i>ÃÕÀiÊ œvÊ Õ˜}Þ½ÃÊ ÃÌ>˜`ˆ˜}Ê >ÃÊ >˜Ê >Õ̅i˜ÌˆVÊ Vœ>V…Ê ܜՏ`Ê LiÊ …ˆÃÊ >LˆˆÌÞÊ ÌœÊ ÃÌ>ÞÊ ÌÀÕiÊ ÌœÊ …ˆÃÊ LiˆivÃÊ ˆÀÀiëiV̈ÛiʜvÊ̅iÊÀiÃՏÌʜ˜Ê̅iÊÃVœÀiLœ>À`Ê>ÌÊ̅iÊi˜`ʜvÊ̅iʓ>ÌV…°

SERVANT LEADERSHIP Dungy’s approach ties in to the final type of leadership approach, servant leadership, which has been gaining recent traction and interest (Greenleaf, 1977). In essence, servant leadership proposes that the leader reverses the traditional view of the organisational hierarchy, and that rather than viewing their followers as people through which they achieve their goals or visions, they should view followers and the follower’s interests as at the heart of their responsibility as a leader. Greenleaf (1977) proposed that a servant leader is a servant first and foremost to their organisation and to their followers. The idea of service therefore is that the leader has a responsibility to nurture, to develop, to defend and to empower their employees or followers. In the context of sport, Vella, Oades and Crowe (2010) suggest that servant leadership is defined by thee core characteristics of the leader. The leader has: 1 2 3

trust humility a commitment to the service of others. This includes empowering their followers, demonstrating empathic understanding to them and their situations, being fair and demonstrating principles of social justice, and encouraging and facilitating personal growth among their followers.

The servant leader is therefore a mentor and a guide to the follower, one who places the follower’s needs first, and in doing so, improves the outcomes for the organisation. The effectiveness of servant leadership in sport was highlighted by Riecke, Hammermeister and Chase (2008) in their study of high school basketball players. They found that if the coach was perceived as higher in all three of the characteristics outlined previously, then the players reported higher levels of intrinsic motivation, satisfaction, task orientation and performed better than players with coaches who rated lower in servant leadership. In particular, trust and a commitment to service were particularly notable in their effect. Greater expression of the qualities of a servant leader increases the referent power of the leader. This increases the level of influence they have with their followers. The followers are more likely to buy into the leader’s vision and thus a positive symbiotic relationship that serves both leader and follower is created.

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Case study: Claudio Ranieri, Leicester City coach ÌÊÜ>ÃÊ>Êv>ˆÀއÊÌ>iÊÃi>ܘÊqÊ>Êx]äää\£ÊV…>˜Vi°Ê˜ÊÓä£ÈÊiˆViÃÌiÀÊ ˆÌÞ]Ê«iÀi˜˜ˆ>Þʈ˜Ê̅iÊ Àii}>̈œ˜Ê`œ}w}…Ì]ʏˆvÌi`Ê̅iÊ ˜}ˆÃ…Ê*Ài“ˆiÀÊi>}ÕiÊ­ *®ÊÌÀœ«…ÞÊvœÀÊ̅iÊwÀÃÌÊ̈“iʈ˜Ê̅iˆÀÊ …ˆÃ̜ÀÞ°Ê9iÌÊ̅iÊ>V…ˆiÛi“i˜ÌÊÜ>ÃÊ>Ê̅iʓœÀiÊÃÕÀ«ÀˆÃˆ˜}Ê}ˆÛi˜Ê̅iʏ>VŽÊœvÊLˆ}ʘ>“iÃ]ʜÀÊ ˜œÌ>LiÊ ÃÌ>ÀÃ]Ê >“œ˜}Ê Ì…iˆÀÊ ÃµÕ>`Ê >ÌÊ Ì…iÊ ÃÌ>ÀÌÊ œvÊ Ì…iÊ Ãi>ܘ°Ê /…iÞÊ Üœ˜Ê >Ê ÌˆÌiÊ Ì…>ÌÊ …>`Ê Lii˜ÊÅ>Ài`ÊvœÀÊ̅iʏ>ÃÌÊÓäÊÞi>ÀÃÊLiÌÜii˜ÊvœÕÀÊ}ˆ>˜ÌÊVÕLÃ\Ê
ÀÃi˜>]Ê>˜V…iÃÌiÀÊ1˜ˆÌi`]Ê >˜V…iÃÌiÀÊ ˆÌÞÊ>˜`Ê …iÃi>°Ê
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>Õ`ˆœÊ,>˜ˆiÀˆ° Ê ,>˜ˆiÀˆÊÜ>ÃʘœÊÃÌÀ>˜}iÀÊ̜Ê̜«ÊiÛiÊvœœÌL>Êˆ˜Ê ÕÀœ«i]ʅ>ۈ˜}Ê«ÀiۈœÕÏÞÊVœ>V…i`Ê Ìi>“Ãʈ˜VÕ`ˆ˜}Ê …iÃi>]ʘÌiÀʈ>˜]Ê
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̏ïVœÊ>`Àˆ`Ê >˜`Ê6>i˜Vˆ>°ÊœÜiÛiÀ]Ê>ʎiÞÊVœ“«œ˜i˜ÌʜvʅˆÃÊÃÕVViÃÃʏˆiÃʈ˜Ê̅iÊÜ>ÞʅiÊÌÀi>Ìi`ʅˆÃÊ ÀœiÊ܈̅Ê̅iÊÌi>“°ÊÀœ“Ê̅iʜÕÌÃiÌ]ʅiÊ`ˆÃ«>Þi`Ê̅iʵÕ>ˆÌˆiÃʜvÊ>ÊÃiÀÛ>˜Ìʏi>`iÀ°ÊiÊ ÜœÀŽi`Ê܈̅ʅˆÃÊiˆViÃÌiÀÊ ˆÌÞÊ«>ÞiÀÃÊ̜Ê}iÌÊ̅iÊLiÃÌʜÕÌʜvÊ̅i“Ê>˜`Ê̜ÊVœ˜Ãˆ`iÀÊ̅iˆÀÊ ˜ii`ðÊ/œÊ̅ˆÃÊi˜`]ʅiʏˆ“ˆÌi`ÊÌ>V̈V>ÊV…>˜}iÃÆʅiÊÀiµÕˆÀi`Ê«>ÞiÀÃÊ̜ʅ>ÛiÊÀiÃÌÊ`>ÞÃÊ >˜`Ê `ˆ`˜½ÌÊ ˆ“«œÃiÊ >Ê ÃÌÀˆVÌÊ `ˆiÌ>ÀÞÊ Ài}ˆ“iÊ œ˜Ê ̅i“°Ê ,>̅iÀÊ Ì…>˜Ê LÕÞÊ ˆ˜Ê Lˆ}Ê ˜>“iÃ]Ê ,>˜ˆiÀˆÊ LՈÌÊ Ì…iÊ Ìi>“Ê >ÀœÕ˜`Ê Ì…iÊ V…>À>VÌiÀˆÃ̈VÃÊ œvÊ Ì…iÊ «>ÞiÀÃ°Ê iÊ “>`iÊ ˆÌÊ Vi>ÀÊ ÌœÊ Ì…i“Ê̅>ÌʅiÊÌÀÕÃÌi`Ê̅i“]Ê>˜`ʈ˜Ê`œˆ˜}ÊÜÊVi>ÀÞÊÀiyiVÌi`Ê̅iÊv>VÌÊ̅>ÌʅˆÃÊÀœiÊÜ>ÃÊÌœÊ ÃiÀÛiÊ Ì…iÊ Ìi>“]Ê ÌœÊ ÌÀÞÊ ÌœÊ >ÃÈÃÌÊ Ì…iÊ «>ÞiÀÃÊ ÌœÊ >V…ˆiÛiÊ Ì…iˆÀÊ LiÃÌ°Ê /…iÊ ÃÌÀi˜}Ì…Ê >˜`Ê ÃÕVViÃÃʜvÊ̅ˆÃÊÃiÀÛ>˜ÌÊ>««Àœ>V…ÊÜ>ÃÊVi>ÀÞÊ>««>Ài˜ÌÊ>ÃÊ̅iÊÓä£xÉÓä£ÈÊ *ÊÃi>Ü˜Ê `ÀiÜÊ̜Ê>ÊVœÃi°

SUMMARY This chapter introduced the concept of leadership, seeking to define it and to distinguish LiÌÜii˜ÊˆÌÊ>˜`ʓ>˜>}i“i˜Ì°ÊÌÊ«Àœ«œÃi`Ê̅>Ìʏi>`iÀÃÊ`ˆvviÀÊvÀœ“Ê“>˜>}iÀÃʈ˜Ê̅>ÌÊ̅iÞÊ>ÀiÊ agents of change, that they seek change to take both the organisation and its members to a LiÌÌiÀÊ«œÃˆÌˆœ˜°Ê/…iÊwÛiÊÜÕÀViÃʜÀÊL>ÃiÃʜvÊ«œÜiÀÊÜiÀiʜÕ̏ˆ˜i`]Ê>˜`ʈÌÊÜ>ÃÊ«Àœ«œÃi`Ê̅>ÌÊ Ü…>ÌÊ`iw˜iÃÊ}Ài>Ìʏi>`iÀÃÊ>««i>ÀÃÊ̜ÊLiÊ̅iˆÀÊ>VViÃÃÊ̜]ʜÀÊÕÃiʜv]Ê«iÀܘ>Ê«œÜiÀ° Three theories and styles that should become increasingly central to sport management >˜`ʏi>`iÀň«ÊœÛiÀÊ̅iʘiÝÌÊ`iV>`iÊÜiÀiÊiÝ«œÀi`\ÊÌÀ>˜ÃvœÀ“>̈œ˜>]Ê>Õ̅i˜ÌˆVÊ>˜`ÊÃiÀÛ>˜ÌÊ i>`iÀň«°Ê >V…Ê̅iœÀÞʅ>ÃÊȓˆ>ÀˆÌˆiÃʈ˜Ê̅>ÌʈÌʈÃÊvœœÜiÀ‡ÊvœVÕÃi`°Ê/…iʏi>`iÀʈÃÊ̅iÊVœ˜`ՈÌÊ Ì…ÀœÕ}…Ê܅ˆV…Ê«iÀvœÀ“>˜ViʈÃʈ“«ÀœÛi`°Ê˜Êi>V…Ê̅iœÀÞÊ̅iʏi>`iÀÊv>VˆˆÌ>ÌiÃÊ̅iÊ«ÀœViÃÃʜvÊ «iÀvœÀ“>˜ViÊ Ì…ÀœÕ}…Ê ̅iÊ vœœÜiÀ°Ê 7ˆÌ…Ê V…>˜}ˆ˜}Ê ÃœVˆ>Ê Û>ÕiÃÊ >˜`Ê ÜˆÌ…Ê «iÀ…>«ÃÊ >˜Ê ˆ˜VÀi>Ãi`Ê Ãiv‡ÊvœVÕÃÊ ÜˆÌ…Ê Ì…iÊ ˜iÝÌÊ }i˜iÀ>̈œ˜Ê œvÊ >̅iÌiÃ]Ê >Ê vœœÜiÀ‡ÊVi˜ÌÀˆVÊ i>`iÀÊ ÜˆÊ LiÊ increasingly critical to sport performance in organisations.

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Duncan Murray and Sarah Chua

REVIEW QUESTIONS £Ê œ˜Ãˆ`iÀÊ >˜Ê iÝ>“«iÊ vÀœ“Ê ޜÕÀÊ iÝ«iÀˆi˜ViÃÊ œvÊ i>`iÀÃ]Ê œÀÊ ÞœÕÀÊ iÝ«iÀˆi˜ViÃÊ >ÃÊ >Ê i>`iÀÊޜÕÀÃiv]Ê܅iÀiÊ̅iʏi>`iÀÊ>ÃÊ>˜Ê>}i˜ÌʜvÊV…>˜}iʈÃÊVi>À°Ê`i˜ÌˆvÞÊ>˜`Ê`ˆÃVÕÃÃÊ >ʏi>`iÀň«ÊiÝ>“«iÊ̅>Ìʅ>ؽÌʈ˜ÛœÛi`ÊV…>˜}iʜvÊܓiÊvœÀ“° ÓÊ 7…>ÌÊ>ÀiÊ̅iÊwÛiÊL>ÃiÃʜvÊ«œÜiÀ¶Ê ÀˆiyÞʜÕ̏ˆ˜iÊ̅iʎiÞÊvi>ÌÕÀiÃʜvÊi>V…Ê>˜`ÊÕÃiÊ>Ê sport example to highlight their application. ÎÊ 7…>ÌÊ >ÀiÊ Ì…iÊ Ãˆ“ˆ>ÀˆÌˆiÃÊ >˜`Ê `ˆvviÀi˜ViÃÊ LiÌÜii˜Ê ÌÀ>˜ÃvœÀ“>̈œ˜>Ê >˜`Ê ÃiÀÛ>˜ÌÊ leadership? {Ê /…ˆ˜ŽÊœvÊ>˜ÊiÝ>“«iÊvÀœ“ÊޜÕÀÊiÝ«iÀˆi˜ViÃʜvÊ>ʏi>`iÀÊ܅œÊޜÕÊLiˆiÛiÊÜ>ÃÊ>Õ̅i˜ÌˆV°ÊˆÃÌÊ̅iˆÀÊV…>À>VÌiÀˆÃ̈VÃÊ̅>Ìʓ>ŽiÊޜÕÊLiˆiÛiÊ̅ˆÃ°

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CHAPTER 12

Soliciting sport sponsorship T. Bettina Cornwell

Chapter objectives After completing this chapter you should be able to: UÊ Vi>ÀÞÊ՘`iÀÃÌ>˜`Ê뜘ÜÀň«ÊvÀœ“Ê̅iÊ«iÀëiV̈ÛiʜvÊ̅iÊ뜘ÜÀÊ>˜`Ê̅iÊ뜘ÃiiÆ UÊ LiÊ>LiÊ̜Ê`ˆÃ̈˜}ՈÅÊÌÀÕiÊ뜘ÜÀÃÊvÀœ“Ê>“LÕÅiÀÃÆ UÊ …>ÛiÊ>ÊÃi˜ÃiʜvÊ̅iÊV…>i˜}iÃʜvʓi>ÃÕÀˆ˜}Ê>˜`ÊiÛ>Õ>̈˜}Ê뜘ÜÀň«Æ UÊ …œ`ʈ“«ÀiÃȜ˜ÃʜvÊ̅iÊ«œÃÈLiÊvÕÌÕÀiÊV…>˜}iÃÊ̜Ê̅iÊ뜘ÜÀˆ˜}ʏ>˜`ÃV>«i°

Key Terms: Sponsorship; Marketing; Sport; Finance; Communications

INTRODUCTION Sponsorship is big business. Projected worldwide spending for 2016 is US$60.2 billion (IEGSR, 2016). Importantly, sponsorship spending tallied as deals do not account for the additional spending that brands engage in to leverage the sponsorship relationship. There is also a vibrant grassroots level sponsorship that is not accounted for in these numbers, such as when a local orthodontist sponsors a community youth baseball team. Sponsorship is dynamic. It is continuously reinvented in practice. For example, sponsorship used to be largely concerned with brand name awareness when in a stadium, or at an event, signage was sold but has evolved to be a sophisticated branding platform. Sponsorship is complex and becoming more so over time. What many people think of as a relationship between a sponsor and a sport property is more often a relationship between a portfolio of partnerships held by a brand and a roster of partnerships held by the sport property. Added to this are beneficiary charity relationships, often held by sports, as well as myriad third party intermediaries. These characteristics, dynamism and complexity make sponsoring both interesting to study and challenging to manage.

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DEFINING SPONSORSHIP Sponsorship can be considered an exchange between a sponsor and a sponsee whereby the latter receives a fee, or value, and the former obtains the right to associate itself with the activity sponsored (Cornwell & Maignan, 1998). Since the word sponsee is not widely used, another term for the entity sponsored has evolved in use and that term is ‘property’. Sport property is short for sport ‘property rights holder’ since this partner holds the rights of association such as the use of trademarks (e.g. the Olympic rings) and other assets such as the physical venue where sports are played. Sponsoring begins with a deal between the sponsor and the property but for largescale relationships, as much or more can be spent on leveraging the contractual relationship as is spent on establishing it. Leveraging is known as the investment in communicating about and through the sponsorship that is in excess of the sponsorship deal. This spending might be on advertising that is thematically tied to the sponsorship, promotion or social media campaigns, just to name a few examples. Activation is a term reserved here, as suggested in Weeks, Cornwell and Drennan (2008), to describe ‘communications that promote the engagement, involvement, or participation of the sponsorship audience with the sponsor’ (p. 639). Activation is the portion of leveraging that is engagement oriented such as a booth at an event where individuals can interact with the brand or an online photo contest where brand use images are posted. Bringing all this together is the term ‘sponsorship-linked marketing’, which is defined as ‘the orchestration and implementation of marketing activities for the purpose of building and communicating an association (link) to a sponsorship’ (Cornwell, 1995, p. 15). In the main, it is the degree of this leveraging that typically determines the success of the relationship, and this depends on further investment in financial and human resources.

UNDERSTANDING WHY COMPANIES SPONSOR Historically, sponsorship was thought of and utilised like advertising with the main goal being brand awareness. Greater brand awareness is thought to be contributory to eventual product and service sales for the sponsor. While awareness is still important, companies want more than simple logo exposure and the hope of eventual sales. Brands are not per se boring, but they are rarely as exciting as sport, arts, music or dance. For example, Tide brand laundry detergent is perhaps not as exciting as the NASCAR auto racing that the brand sponsors. Brands seek to align with properties to build awareness but also to build brand image. Brands borrow image and meaning from the characteristics of events (Gwinner & Eaton, 1999) and, while less extensively documented, properties borrow image from brands. A good example here would be the iconic brand value that the SF 49ers have in their stadium sponsor, Levi’s. Considering that brands have portfolios of properties and properties have rosters of sponsors, it has become ever more important to understand the effects of combinations of relationships on outcomes of interest. In a study of a two sport property portfolio, Chien, Cornwell and Pappu (2011) found that when a brand is combined with a sport and a charity, the resulting combination is best able to promote a particular brand personality perception when both elements in the portfolio share the same type of

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personality. For example, the sport of rugby and the charity Greenpeace, known for undertaking drastic measures in support of its environmental cause, both have a rugged image and, in combination, are able to move this perception of ruggedness to a brand. In contrast, a more sophisticated sport like golf may not combine well with the ruggedness of Greenpeace in influencing the image of a brand as rugged. In addition to awareness and image, another popular goal of the sponsor includes hospitality or a place, time and special occasion where clients or future customers might be entertained. For many brand categories, and in particular for business to business transactions where cultivation of a transaction may take years, hospitality may be the main reason to sponsor. Another obvious goal for some product categories is direct on-site sales. A good example here is pouring rights for drinks at a stadium and another would be the sale of team merchandise. Other reasons for a brand to sponsor are product demonstration or trial. For example, in auto racing, motor oil treatment STP, when utilised in race cars that are associated with winning, might be perceived as an effective oil additive to improve the performance of any car (Cornwell, Pruitt & Van Ness, 2001). Events might also be an ideal place to distribute products to the consumers most likely to buy them in the future. Here the ubiquitous swag bag of running events comes to mind. This is where many bars, drinks, gels and supplements have been introduced to the running community. Sponsoring may also hold a corporate social responsibility (CSR) goal. Companies often see sponsoring local events, particularly grassroots non-professional sport, as a way to interact with and give back to their community. This may be envisioned in many ways. A sponsorship may respond to a particular need in a community such as a park or a homeless shelter. Social responsibility may be enacted through sponsorship by partnering with an existing charity or non-profit to support their goals, as when automaker BMW teams with Habitat for Humanity to build houses for those in need of housing. Relationships might also stem from perceptions of responsibility to the local community as when a company is headquartered in the same city as a professional team. Naturally, any single sponsorship might allow a company to communicate with and serve several stakeholder groups at once. On the other hand, some companies may engage some partner relationships to speak to their consumers and others to speak to the interest of their board of directors. Clearly, the kinds of goals that brands may hold for sponsoring are as endless as the creativity of the sponsor and the willingness of the partner.

UNDERSTANDING WHY PROPERTIES WANT SPONSORSHIP For many sport teams, leagues, events and activities, sponsor investments form part of the budget. For instance, Olympic sponsorship partner investments account for nearly half of the Olympic budget. Many sport properties will have a set of ‘assets’ they seek to sell to prospective sponsors such as opening ceremony sponsor, official supplier or event title sponsor. Historically, assets were packaged as levels of sponsor commitment such as gold, silver and bronze but there is sustained movement away from such prepackaging towards a sponsor objectives oriented discussion of suitable assets. Support, once agreed

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upon, may be financial or value in kind (VIK). A typical VIK example would be when a brand provides products used or consumed at the event, such as shirts for players, sport drinks for participants or time-keeping equipment for competitions. Values might also come from human capital such as volunteers or experts that assist in developing a sport offering. Traditional discussions of sponsoring from the perspective of the sport typically centre on the financial contribution of sponsors to sport. From the grassroots softball team to the professional F1 auto racing team, sponsorship supports the ability to play and compete. That said, many sports are now harnessing the brand building capabilities of their partnerships. Sport properties are often interested in the leveraging commitment that brands bring to a deal. When brands spend to communicate a link to a property this can increase awareness and image for the sport. In a sense the brand’s advertising, when they are integrated in it, becomes the sport’s advertising too. In addition to financial support and brand building for the sport, sponsors often bring and share their expertise. Beyond the provided expertise that might be written into a contract, companies as sponsors may be sought because they have marketing or management expertise that the sport needs.

SPONSORSHIP GOALS IN CONFLICT In that companies and sports have differing goals, there are naturally arising areas of conflict. First, in most instances, it is in the sport’s best interest to gain a long-term commitment from a sponsor. This has the advantage of securing stable funding but also reduces the cost of recruiting new sponsors. While a long-term commitment on the part of a company to a sport property should have many communication advantages, it might also be advantageous to have the flexibility of a short contract (perhaps with the first right of refusal to renew). A second area that is rapidly changing is that of exclusivity. Historically, companies have sought relationships for their brands that allow them to be the only brand in the product or service category, such as the only beverage or the only automobile brand associated with the event. In contrast, the sport property will likely want to slice the cake thinly by offering a beverage sponsorship in, say, water, sport drink and tea because these may bring more revenue. They may further seek sponsorships that are not exclusive but that are also not in conflict by having, for example, a luxury automaker and an economy automaker where the price point for the vehicles, and thus the markets for them, do not overlap. Another area with two views would be price. Naturally, the company wants more assets for less money and the sport property will want more money with a limited commitment of property assets. Agreement is reached on price and other important characteristics such as duration and exclusivity, via negotiation. With large-scale sponsorships this will likely also involve intermediaries that perform a number of functions. For example, after the 2016 move of the National Basketball Association (NBA) to allow a three-year trial of an on-jersey sponsorship patch, most teams sought an outside consultant to ascertain the approximate market value of their new sponsorship real estate.

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In summary, there are many sponsorship-specific goals that may be congruent or in conflict as sponsor and sport properties seek to work together in a relationship. It is, however, important to recognise that meaningful, long-term sponsorship relationships can influence a range of goals for each entity that may be, at first glance, not sponsorship related. Figure 12.1 shows a simplified set of goals for a typical sport property and sponsor that may be, but are not necessarily, advanced by the sponsorship relationship. Many of these have been discussed above. Also in Figure 12.1 is a list of partnership success characteristics that support the move from simple sponsorship solicitation to partnership building.

PARTNERSHIP SUCCESS CHARACTERISTICS In a series of studies across several continents and sponsorship managers on both the sponsor and property side, researchers (Farrelly & Quester, 2003, 2005a, 2005b; Farrelly, Quester & Burton, 2006) have developed a set of characteristics that successful relationships in this space possess. Akin to almost any relationship in any context, trust and commitment are important to sponsorship. What they found was that, particular to

Sponsor goals

Awareness/ticket/event/ merchandise sales

Customer and client awareness/image/sales/ relationships

Financial support for operations/venue, employees/players Community social support/volunteers acceptance/investment

Sponsorship relationship

Sport property goals

Employee esprit de corps/productivity/ employer branding Acceptance/facilitation in channels of distribution Social and financial investment/ reputation/cooperation

Traditional and social media coverage/ revenue/image

Partnership success characteristics Trust Commitment Strategic compatibility Goal convergence Satisfaction

FIGURE 12.1

Sport property and sponsor goals and partnership success characteristics

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sponsorship, commitment is often measured as key leveraging investments made by partners and, in particular, sponsors. Further, commitment to the relationship as leveraging was related to economic satisfaction with the relationship, whereas trust was related to both economic and non-economic satisfaction. In essence, as shown in many contexts, trust is central to relationships. Another aspect that makes for success in partnerships is strategic compatibility. This is found when partners have goals that complement one another and what many in practice call ‘overlapping values’. For example, in the goals of the sport property, to have strong traditional (e.g. broadcast) and social media are central both for revenues and for image. Likewise, sponsors seek presentation in these media so as to develop awareness and image of their firm or product. Clearly, working together on plans involving both parties would be an aspect of strategic compatibility. Goal convergence is another aspect of a successful partnership but this may develop over time. Farrelly and Quester (2005b, p. 58) in their work with the Australian Football League (AFL) offer the following as an example of promotion plans oriented to mutual investment: Partners must present a detailed picture of where they wish to take their respective brands, and how sponsorship will contribute to this. There is no point in us developing a detailed plan if it does not have complete (real) support of the AFL. This is the future of sponsoring, where sponsor and sponsee come together synergistically. A last comment on successful partnerships comes from a discussion of the sources of failure. Farrelly (2010) found that problem areas in sponsorship often arise when commitment asymmetry is present, where one of the partners feels that they are giving or doing more than the other. Another source of failure stems from there being a capability gap, in particular when the sport property does not have brand-building know-how. Sponsors felt that properties did not have the capabilities to blend the resources of the organisations in order to advance goals. While not discussed in the research as a source of this challenge, it is easy to see how those with a sport background with the property and those with a business background with the brand have differing views on sponsorship enactment.

SOLICITING SPONSORSHIP While it is most frequently the sport property that makes the first move and solicits a sponsorship relationship, often companies or brand managers who know what they want open the conversation about sponsoring. For those sport properties seeking sponsorship, the starting point is typically a list of potential sponsors. Unfortunately, the second step for many sport properties is then to prepare a sales pitch that is general in nature rather than specialised to match the goals of the sponsor. This is in part understandable since learning the potential sponsor’s goals and objectives relative to a sport would require a direct conversation with them. When the first meeting is the pitch, there is little possibility of a truly tailored offering. This shortcoming of a pitch to understand the brand may lie with the sport property but may also be brought about by the limited time a sponsor offers for getting to know each other before a pitch is made.

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Sponsorship sits within the marketing plan for a company or brand. Historically, sponsorship was thought of as tactical but it has become more and more strategic over time, to the point where, for some companies, it essentially constitutes the driving force of the marketing plan. Sponsoring is typically seen as a cost of marketing or promotion. Within the sport property at a professional team or major event, there will be a sponsorship sales team. Again these differing vantage points may form part of the challenge in finding and maintaining a successful partnership.

AMBUSH MARKETING Any discussion of sponsorship brings up the exciting topic of ambushing. Townley, Harrington and Couchman (1998, p. 1) define ambush marketing as: Unauthorized association by businesses of their names, brands, products or services with a sports event or competition through any one of a wide range of marketing activities; unauthorized in the sense that the controller of the commercial rights in such events, usually the relevant governing body, has neither sanctioned nor licensed the association, either itself or through commercial agents. The main goal of ambushers is similar to that of true sponsors: to associate with events, teams or leagues and benefit from their popularity. This association may be confusing for stakeholders or may take awareness or image from the true sponsor and thus devalue their investment. Given the goal of building an association to a property or event, ambushing can take myriad forms. Chadwick and Burton (2011) developed a typology of ambushing activities but ambushing is a moving target and with evolving technologies. The ways to ambush are endless. Cornwell (2014) argues that the various forms of ambushing can be described along two dimensions, intent and legality. These dimensions produce four groups of ambushers: 1

2

3 4

Intentional and illegal ambushing sets out to gain from some form of interaction in a sponsored context and willingly violates the law. For example, appropriating the marks used by a property without permission would be illegal. This form of sponsorship is less and less common. Intentional but not illegal ambushing activities come close to the ‘line in the sand’ but stay on the legal side of activities. A good example here is sponsoring athletes at an event and leveraging these associations so much that audiences assume the brand to be an event sponsor. Unintentional and legal ambushing, also known as incidental ambushing, happens when a brand is seemingly appropriate as a sponsor and so is assumed to be. Unintentional and illegal ambushing are not really ambushers at all but rather violate ambushing laws in the process of marketing products.

The important point about an ambusher is that they do not have a contractual agreement that allows their association with a sport property. Interestingly, it is often the

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sport that serves as the policing agent in sponsorship relationships since the value of their asset is reduced if ambushing takes value from their sponsor. This is, however, a challenging position between the true sponsor and ambusher and can drain resources if there is an important contested ambush. As an example of how important ambushing is to sponsorship partnerships one can consider the recent changes to the Olympics’ ‘Rule 40’. The International Olympic Committee (IOC) Rule 40 decreed that during the Games any advertising featuring Olympic athletes had to be from official partners. Given that many Olympic athletes have a sponsor before going to the Games, this was argued by athletes to be a deprivation of both media attention and sponsorship income during a period in which their value would be the highest. After years of lobbying, the athletes were successful in amending the rule. Under the new limitations advertising cannot feature the term ‘Olympics’ or even ‘summer’ or ‘winter’ but can promote already sponsored athletes in contexts that signal their athletic position and status. The following is an example of the careful path taken in the lead-up to the 2016 Olympics to avoid clashing with the Rule 40 limits: In March, Under Armour released a commercial showing Phelps swimming to a song called ‘The Last Goodbye’ and then facing a flash of cameras – images that evoke his Olympic successes. Phelps is aiming to qualify for Rio in what would be his fifth and potentially final Games. (Baker, 2016) Michael Phelps is strongly associated with the Olympics, so the argument is that his Under Armour relationship can be linked to the Olympics without violating the rule but at the same time offering considerable awareness to his current sponsor.

MEASURING SPONSORSHIP One of the single largest challenges in sponsorship as a business activity is to measure the outcomes stemming from sponsoring. The tricky part is to separate the effects of sponsorship from all the other influences to like, buy or recommend a brand. Many declarations of sponsorship success fail to capture the starting state of brand awareness, attitude or purchase intention for the sponsor. Were individuals already aware of the brand? Did they already like it? Was it the signage at the venue that was successful or the fact that the brand also held an endorsement contract with a popular player or both? The sponsored property is often asked to supply information to the sponsor that helps them make sense of their investment. It is also common for the brand to pay for the services of an independent third party to measure sponsorship outcomes, or on occasion to do this work themselves. Interestingly, and somewhat surprisingly, there is a dearth of sponsorship measurement. One international survey found ‘twothirds of sponsors do not “always or almost always” measure sponsorship effectiveness’ (Meenaghan, 2011, p. 34); however, the trend is towards increasing measurement and accountability in sponsorship spending. Measuring is the ‘yardstick’ by which one learns how a sponsorship did relative to an objective. Was brand recognition after the sponsored event higher than before the event?

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When several sponsorships are in a portfolio, one question that is often asked is which ones are performing relative to criteria and which are not? This requires an evaluation across properties relative to outcomes such as recall, recognition, liking, preference, return on objectives (ROO) or return on investment (ROI). Another tricky part here is to find a common metric for comparison. Sometimes, this is simply not possible. Sponsorships that are oriented to hospitality may collect contacts and business cards but cannot be easily evaluated by the same metric as products that are sold on site. To the extent that the sponsored property can support measurement of the outcomes for the sponsor, a property makes their offering more valuable. Measurement that benchmarks against other sponsors and shows trends is more valuable than absolute numbers. Measurement that can feed into the sponsors’ overall evaluation system, if they have one, also makes the property more valuable. Lastly, measurement that is trustworthy and free from biased reporting is the key to a long-term relationship.

TRENDS IN SPORT SPONSORSHIP Trends in sponsorship emanate from the property, the sponsor and from the broader environmental context. One clear trend among leading sport properties is to consolidate sponsor rosters with the goal of having fewer larger sponsors for longer. The grounds for this goal are numerous. Having fewer sponsors to support reduces the servicing burden for the property and at the same time increases the probability of being able to offer quality service due to a smaller roster. To have fewer sponsors, each contributing a larger portion of the sponsorship pie, also reduces the energy that must be invested in soliciting new sponsors. Lastly, longer sponsorship relationships have the potential for better sponsorship outcomes for all involved. Trends in sponsoring from the sponsor perspective begin with increased demands for flexibility to meet communication, marketing and other organisational goals. Companies and brands as sponsors are ever less willing to take asset packages that do not ideally fit their goals. Another trend is towards more integrated relationships with other sponsors of the property; while this is being advanced by some proactive sport properties, it is often sponsor-led. Sponsorship grew in the last decades from more properties being sponsored that had not previously had sponsors. Sponsorship also grew as new sports came into being such as action sports. The latest trend, one that some may dispute as being sport, is the rapid expansion of eSports and the similarly rapid expansion of eSports sponsoring.

SOLICITING SPONSORSHIP CASE EXAMPLE While eSports may not be a traditional sport, it has all the elements of one: teams, leagues, competitions, channels and sponsorship. While some might consider it a competition rather than a sport, it is arguably no less a sport than is auto racing. In a sense, looking at eSports as a case study allows one to see the dynamics of sponsoring at play. Just like any other fledgling sport, it started small but the speed of growth witnessed in the last few years could only be possible in a space that is so technology based. ESports,

Soliciting sport sponsorship 181

according to NewZoo, a research firm focused on the digital game market, will surpass sports like ice hockey and American football in terms of global followers by 2017. Global revenues were US$325 million in 2015 and estimated to exceed US$1 billion by 2019. The problem is that this new sport wants sponsorship from mainstream brands but at the same time is reluctant to become mainstream and alienate their core audience. Both enthusiast core audiences and occasional viewers number over 100 million each year. The eSports demographic is largely under 35 years of age and therefore very attractive to potential mainstream sponsoring companies. Big brands are worried when considering a new sport with an evolving structure; how will disputes be settled, how will they be protected from ambushing? How can a rising entertainment ‘sport’ attract new companies and their brands as sponsors? At the same time, how can brands reach the attractive gaming market without making a misstep with the gaming audience and with their current consumers? The eSports ecosystem for competitive gaming consists of both amateur and professional gamers, often organised as teams. For example, Cloud9 is a US based team that began competing in League of Legends, a multiplayer online battle game published by Riot Games. Cloud9 competes in the North American League of Legends Championship Series and has teams that compete in other popular games and competitions such as Call of Duty and Counter-Strike: Global Offensive. As in traditional sports, they have a logo, a website and sell merchandise to avid fans; unlike traditional sports, an event will have a number of different games at a single tournament. A comparison could be made here to the Olympics. The ecosystem also includes media channels, as does the traditional sport ecosystem. For example, Twitch is a live streaming platform owned by Amazon and devoted to gaming. The game play can be confusing to the newcomer and the speed of play can be likened to that of a hockey puck travelling over digital ice. On the one hand, it is very accessible because anyone could have tried gaming, unlike auto racing, which has limited participation and many viewers. On the other hand, the constant evolution of games and their complexity makes it challenging for the non-player to catch on or catch up. Terms borrowed from linguistics are helpful in describing the relationship of brands to eSports properties: emic and etic. Emic brands are brands tightly related to the sponsored activity, whereas etic brands are outside this realm. Similar terms in traditional sport, such as functionally linked products and services, are used in the sport in some way and image-linked brands are connected by concepts or advertising. An emic brand activating in eSport is iBUYPOWER, a gaming personal computer firm. Their Counter Logic Gaming PC has three offerings, a basic model, mid-tier and high end (LaFleur, 2015). From their emic view, they tailor and named their product for gamers, they sponsor teams, they blog about eSport and they engage in banner advertising online. The etic brand has fewer options, and, at first, less understanding of the eSport community and what leveraging and activation options would be favoured. A sponsor steeped in traditional sport partnerships might sponsor a team and consider magazine advertising targeted to reach the eSport demographic but this may be perceived as overly commercial or even ‘old school’ to the typical eSports enthusiast. The new sponsor also has little idea of how ambushing might be undertaken in this new context. While venue ambushing might parallel the kinds of things seen with traditional sports, it is difficult to assess the online and social media vulnerabilities to ambushing.

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How can eSport properties communicate their value and put their potential partners at ease? How can potential sponsors become more informed about this new opportunity? How can they build partnerships that evolve into the future and follow the trajectory of eSports expansion?

REVIEW QUESTIONS £Ê 2 ÎÊ 4 5

Ý«>ˆ˜Ê̅iÊ`ˆvviÀi˜ViÊLiÌÜii˜Ê뜘ÜÀň«Ê`i>Ã]ʏiÛiÀ>}ˆ˜}Ê>˜`Ê>V̈Û>̈œ˜° How do the goals of sponsor and sponsee differ? 7…>ÌÊ}œ>Ãʓˆ}…ÌÊLÕȘiÃÃÊ̜ÊLÕȘiÃÃÊwÀ“Ãʅ>ÛiÊ܅i˜Ê뜘ÜÀˆ˜}Ê>ÊëœÀ̶ What are ambushers seeking and why is this a threat to true sponsors? Describe the trends apparent in sponsoring and speculate on future trends.

REFERENCES >ŽiÀ]Ê°Ê °Ê­Óä£È®°Ê À>˜`ÃÊÃiiŽˆ˜}Ê,ˆœÊ}œ`ʈ˜Ê˜iÜÊ>`ÛiÀ̈Ș}Ê«>ވ˜}Êwi`°ÊYahoo Sports°Ê,iÌÀˆiÛi`Ê ™Ê ՘iÊ Óä£ÈÊ vÀœ“Ê …ÌÌ«\ÉÉëœÀÌðÞ>…œœ°Vœ“ɘiÜÃÉLÀ>˜`ÇÊÃiiŽ‡Àˆœ‡Ê}œ`‡>`ÛiÀ̈Ș}‡Ê«>ވ˜}‡wi`‡Ê 051139360-oly.html.

…>`܈VŽ]Ê-°ÊEÊ ÕÀ̜˜]Ê °Ê­Ó䣣®°Ê/…iÊiۜÛˆ˜}ÊÜ«…ˆÃ̈V>̈œ˜ÊœvÊ>“LÕÅʓ>ÀŽï˜}\Ê
ÊÌÞ«œœ}ÞʜvÊÃÌÀ>Ìegies. Thunderbird International Business Review, 53(6), 709–719. Chien, P. M., Cornwell, T. B. & Pappu, R. (2011). Sponsorship portfolio as a brand-image creation strategy. Journal of Business Research, 64(2), 142–149.

œÀ˜Üi]Ê/°Ê °Ê­£™™x®°Ê-«œ˜ÃœÀň«‡Êˆ˜Ži`ʓ>ÀŽï˜}Ê`iÛiœ«“i˜Ì°ÊSport Marketing Quarterly, 4(4), 13–24. Cornwell, T. B. (2008). State of the art and science in sponsorship-linked marketing. Journal of Advertising, 37(3), 41–55. Cornwell, T. B. (2014). Sponsorship in marketing: Effective communication through sports, arts and events. Abingdon: Routledge.

œÀ˜Üi]Ê /°Ê °Ê EÊ >ˆ}˜>˜]Ê °Ê ­£™™n®°Ê ,iÃi>ÀV…Ê œ˜Ê 뜘ÜÀň«\Ê ˜ÌiÀ˜>̈œ˜>Ê ÀiۈiÜÊ >˜`Ê >««À>ˆÃ>°Ê Journal of Advertising, 27(2), 1–21.

œÀ˜Üi]Ê/°Ê °]Ê*ÀՈÌÌ]Ê-°Ê7°ÊEÊ6>˜Ê iÃÃ]Ê,°Ê­Óä䣮°Ê
˜ÊiÝ«œÀ>̜ÀÞÊ>˜>ÞÈÃʜvÊ̅iÊÛ>ÕiʜvÊ܈˜˜ˆ˜}ʈ˜Ê motorsports: Sponsorship-linked marketing and shareholder wealth. Journal of Advertising Research, 41(1), 17–31. Cornwell, T. B., Weeks, C. S. & Roy, D. P. (2005). Sponsorship-linked marketing: Opening the black box. Journal of Advertising, 34(2), 21–42. Farrelly, F. (2010). Not playing the game: Why sport sponsorship relationships break down. Journal of Sport Management, 24, 319–337. Farrelly, F. J. & Quester, P. G. (2005a). Examining important relationship quality constructs of the focal sponsorship exchange. Industrial Marketing Management, 34(3), 211–219. >ÀÀiÞ]Ê °Ê EÊ +ÕiÃÌiÀ]Ê *°Ê ­ÓääxL®°Ê ˜ÛiÃ̈}>̈˜}Ê >À}i‡ÊÃV>iÊ Ã«œ˜ÃœÀň«Ê Ài>̈œ˜Ã…ˆ«ÃÊ >ÃÊ Vœ‡Ê“>ÀŽï˜}Ê alliances. Business Horizons, 48(1), 55–62. Farrelly, F. & Quester, P. (2003). The effects of market orientation on trust and commitment: The case of the sponsorship business-to-business relationship. European Journal of Marketing, 37(3/4), 530–553. >ÀÀiÞ]Ê°]Ê+ÕiÃÌiÀ]Ê*°ÊEÊ ÕÀ̜˜]Ê,°Ê­ÓääÈ®°Ê …>˜}iÃʈ˜Ê뜘ÜÀň«ÊÛ>Õi\Ê œ“«iÌi˜VˆiÃÊ>˜`ÊV>«>Lˆities of successful sponsorship relationships. Industrial Marketing Management, 35(8), 1016–1026.

Soliciting sport sponsorship 183 ܈˜˜iÀ]Ê°Ê*°ÊEÊ >̜˜]Ê°Ê­£™™™®°Ê Ո`ˆ˜}ÊLÀ>˜`ʈ“>}iÊ̅ÀœÕ}…ÊiÛi˜ÌÊ뜘ÜÀň«\Ê/…iÊÀœiʜvʈ“>}iÊ transfer. Journal of Advertising, 28(4), 47–57. IEG Sponsorship Report (IEGSR). (2016, 5 January). As sponsorship borders fall, spending rises. ,iÌÀˆiÛi`Ê ™Ê ՘iÊ Óä£ÈÊ vÀœ“Ê ÜÜܰ뜘ÜÀň«°Vœ“É -,ÉÓä£ÈÉä£ÉäxÉ
ÇÊ-«œ˜ÃœÀň«‡ œÀ`iÀÃ‡Ê Fall,-Spending-Rises.aspx. >iÕÀ]Ê
°Ê­Óä£x]ÊÓnÊ>Þ®°Ê-«œ˜ÃœÀň«Ê>V̈Û>̈œ˜\ÊœÜÊ̜Ê}iÌÊ̅iʓœÃÌʜÕÌʜvÊ>Ê«>À̘iÀň«°ÊEsports Observer. Meenaghan, T. (2011, February). Mind the gap in sponsorship measurement. ADMAP, pp. 34–36. i˜œ˜]Ê *°Ê EÊ >]Ê °Ê ­Óä£x®°Ê , °Ê ,iÌÀˆiÛi`Ê ™Ê ՘iÊ Óä£ÈÊ vÀœ“Ê …ÌÌ«Ã\ÉÉÀi`iv°Vœ“ÉœÀˆ}ˆ˜>É}œœ`‡Ê game-why-esports-is-the-next-major-league-sport. iÜ✜°Ê­Óä£È]ÊÓxÊ>˜Õ>ÀÞ®°ÊœL>ÊiëœÀÌÃʓ>ÀŽiÌÊÀi«œÀÌ\Ê,iÛi˜ÕiÃÊ̜ʍՓ«Ê̜Êf{ÈΓʈ˜ÊÓä£ÈÊ>ÃÊ1-Ê i>`ÃÊ Ì…iÊ Ü>Þ°Ê ,iÌÀˆiÛi`Ê ™Ê ՘iÊ Óä£ÈÊ vÀœ“Ê …ÌÌ«Ã\ÉɘiÜ✜°Vœ“Ɉ˜Ãˆ}…ÌÃÉ>À̈ViÃÉ}œL>‡ÊiëœÀÌÇ “>ÀŽi̇ÊÀi«œÀ̇ÀiÛi˜ÕiÇÊ̜‡Õ“«‡Ê̜‡{È·“ˆˆœ˜‡Êˆ˜‡Óä£È‡>ÇÊÕǏi>`ÇÊ̅i‡Ü>Þ° /œÜ˜iÞ]Ê-°]Ê>ÀÀˆ˜}̜˜]Ê °ÊEÊ œÕV…“>˜]Ê °Ê­£™™n®°Ê/…iʏi}>Ê>˜`Ê«À>V̈V>Ê«ÀiÛi˜Ìˆœ˜ÊœvÊ>“LÕÅʓ>Àketing in sports. Psychology and Marketing, 15, 333–348. 7iiŽÃ]Ê °Ê-°]Ê œÀ˜Üi]Ê/°Ê °ÊEÊ Ài˜˜>˜]Ê°Ê °Ê­Óään®°ÊiÛiÀ>}ˆ˜}Ê뜘ÜÀň«Ãʜ˜Ê̅iʈ˜ÌiÀ˜iÌ\Ê
V̈Û>tion, congruence, and articulation. Psychology & Marketing, 25(7), 637–654.

CHAPTER 13

Sport marketing Brenda Pitts

Chapter objectives After completing this chapter you should be able to: UÊ `iw˜iÊëœÀÌʓ>ÀŽï˜}Æ UÊ >««ÀiVˆ>ÌiÊ̅>ÌÊÃÕVViÃÃvՏÊëœÀÌʓ>ÀŽï˜}ÊLi}ˆ˜ÃÊ܈̅Ê՘`iÀÃÌ>˜`ˆ˜}Ê̅iʈ˜`ÕÃÌÀÞÊ>˜`Ê Ì…iÊVœ˜ÃՓiÀÆ UÊ Õ˜`iÀÃÌ>˜`Ê̅iÊ«ÀœViÃÃʜvÊëœÀÌʓ>ÀŽï˜}Æ UÊ Õ˜`iÀÃÌ>˜`Ê̅iÊ{Ê ÃÊ>˜`Ê{Ê*ÃʜvÊëœÀÌʓ>ÀŽï˜}Æ UÊ >««ÀiVˆ>ÌiÊ̅iʈ“«œÀÌ>˜ViʜvÊLÀ>˜`ˆ˜}Ê>˜`Ê«œÃˆÌˆœ˜ˆ˜}Æ UÊ Õ˜`iÀÃÌ>˜`Ê̅iʘii`ÊvœÀÊ>˜`ÊÛ>ÕiʜvÊëœÀÌʓ>ÀŽï˜}ÊÀiÃi>ÀV…°

Key Terms: Sport Marketing; The 4 Cs of Sport Marketing; The 4 Ps of Sport Marketing; Branding; Sport Marketing Research

WHAT IS SPORT MARKETING? Sport management professionals at every sport business must develop strategies and make decisions that will keep the business from failing, but more importantly will make the business a resounding success. There are many variables that influence every business. Thus, the sport management professional needs to stay informed in order to make decisions and strategies that will drive the business towards success. Sport marketing is one of the many management activities within a sport business. Some of those management activities include financial management, operations, manufacturing management, retail management, human resources management, design management and legal issues management. Most companies have the resources to hire experts in each area. The sport marketing professional will be charged with overseeing all of the company’s marketing activities. The activities comprise many different tasks and responsibilities such as determining the company’s product and everything about the product, setting price and developing pricing strategies, creating an advertising strategy, developing and managing the company’s social media activities, and managing the company’s brand.

-«œÀÌʓ>ÀŽï˜}Ê Ê 185

‘Sport marketing’ is derived from its foundational discipline and business activity ‘marketing’. It is important to understand how sport marketing is similar to and different from marketing. Beginning with definitions, one definition of ‘marketing’ comes from the American Marketing Association (AMA): ‘Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large’ (AMA, 2013). Although the entire world of business comprises numerous and different types of business, the AMA definition can be applied to and used by marketing professionals in nearly all types of business. Indeed, it can be applied and used in the sport business industry. However, it is important to have a definition specific to the sport business industry. Thus, ‘sport marketing’ is defined as ‘the process of designing and implementing activities for the production, pricing, promotion, and distribution of a sport product to satisfy the needs or desires of consumers and to achieve the company’s objectives’ (Pitts & Stotlar, 2013, p. 82). As you can see in the two definitions, there are more similarities than differences. Both definitions speak of creating something of value (a product) for consumers through the use of processes and activities. The primary difference is that the AMA definition is extremely broad so as to be inclusive of and applied to any and every type of business, while the Pitts and Stotlar definition of sport marketing is focused on only one industry – the sport business industry. Moreover, herein lies the difference between a generic business administration degree and a sport business administration degree: the generic business administration degree is broad and generic enough that the graduate might apply principles of business to most types of business, whereas the sport business administration degree is focused on and applied to one primary business industry – the sport business industry. In brief, every business wants and needs to determine what product is needed and/or desired by a set of consumers (a target market), how to produce and provide that product in such a way that consumers will respond by acquiring the product. Therefore, in brief, it can be said that sport marketing is giving the consumer what they want. It is, of course, more complex and involves a plethora of variables, processes and activities. Sport businesses today must use sport marketing ‘as a significant business function to the extent that every facet of the company is guided by sport marketing concepts’ (Pitts & Stotlar, 2013, p. 83).

WHAT IS THE SPORT BUSINESS INDUSTRY? The sport business industry is the market in which the products offered are sports, fitness, recreation or leisure activities and may be activities, goods, services, people, places or ideas (Pitts & Stotlar, 2013). The industry is massive and diverse today. Sport activity dates back to the earliest human history. Humans have always played sport and games. This is evident in a number of ways: drawings on cave walls, depictions on ancient pottery and artefacts uncovered. This means that there were also people who created, managed and marketed these sports and games. Thus, sport business management and marketing must be among the oldest professions on earth. Nonetheless, as a field of study and a titled degree, the sport business management academic degree is

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relatively young when compared to other fields such as law and medicine. This, however, does not mean that people have not been professionally trained in some way in order to create the vast sport business industry as we know it today. Prior to the modern era in which we find the beginnings of university study offerings labelled as sport administration, sport management, sport business or sport business management, those who wanted to work in the industry found other ways to be educated and trained. These methods usually involved trainer or apprentice programmes inside sport businesses, or taking courses about sport and courses about business without a declared degree title other than perhaps physical education, recreation management and/or business administration. Perhaps the first sport business degree programme was offered at the Florida Southern University in the United States in 1949, and perhaps the first creation of the title or phrase ‘sports administration’ is found in a 1964 book that contains a chapter titled ‘Careers in Sports Administration’ (Isaacs, 1964). The university programme was described as Florida Southern College, recognizing that baseball business management was a profession in which no training at the college academic level had heretofore been offered, instituted at the Baseball Administration School to provide students an opportunity to study and learn at first hand the major problems of the baseball business executive. (Isaacs, 1964, p. 136) Sports, games, play, leisure, recreation, fitness and sport tourism have all evolved to constitute what is today considered one of the largest and most complex business industries in many countries and as a global business as well – the sport business industry. The primary reason for the growth, development, size and complexity of this industry is people and their love of sports – without people, the sport industry would not exist (Pitts & Stotlar, 2013). Within the industry, there are numerous industry segments primarily based on types of product. The largest of these is the ‘participant sport industry segment’. This is the segment comprising all the activities in which amateurs participate – all those who are not professional athletes, or those who engage in highly competitive and organised commercial sports, from recreational activities to organised weekend outdoor leisure outings to those millions who participate in triathlons and those millions who participate in activities such as sailing. Some of the multitude of activities include walking, hiking, fishing, soccer, boating, yoga, scuba diving, basketball, golf, riding horses, swimming, sailing, snow-skiing and many, many more. The second largest industry segment is the sporting goods industry. This comprises sport equipment, footwear, apparel and all other gear. As you can imagine, millions (perhaps billions) who engage in play and/or sporting activities need sport equipment, gear, footwear and apparel, thus making this industry segment the second largest. Some of the other segments of the industry include athlete management companies, professional sport, sport governing bodies, sport business advertising, sport law companies, high school sport, college sport, sport and recreational facility architecture and construction firms, and sport media and broadcasting companies.

-«œÀÌʓ>ÀŽï˜}Ê Ê 187

THE SPORT MARKETING PROCESS The activities of sport marketing are many and range from simple promotional staging to pricing to strategic planning to multi-year marketing plans. Modern sport marketing is founded upon and uses the information from several different fields of study, and from the knowledge and wisdom of sport marketing professionals working in the sport business industry. Figure 13.1 illustrates these disciplines and denotes the many different aspects of each one that helps inform contemporary sport marketing theory, fundamentals and process. For example, the academic discipline of communication comprises several topics that are essential to sport marketing today, such as the study of advertising, journalism and social media. Sociology is focused on the study of humans. Consumers of sport, whether they are participants in sport, spectators of sport events or consumers of sporting goods, are humans. Therefore, there is much to learn from sociology that is applied to the study of consumers in sport marketing. And a very important informant to sport marketing is the sport marketing professional – the person who works in the sport business industry practising sport marketing. They inform us with their knowledge and practice of sport marketing, which we professors of sport marketing then write about for our textbooks, such as this book, and teach about in our classrooms so that students like you, the reader, can learn from professionals in the field. Figure 13.2 illustrates the Sport Marketing Management Model in which the major elements of sport marketing are illustrated. Each element comprises numerous activities and processes. Each element is not a separate process from all others – each element is interconnected to the other. There might be individuals in the company charged with making decisions about one of the elements, but those individuals must be coordinating their decisions with others who are making decisions in other departments. For example, if the company has an individual or group of individuals whose responsibility is to set price and develop pricing strategies, that individual has a responsibility to work with

Contemporary sport marketing theory and process

Sport studies

Sport management Sociology of sport Sport psychology Leisure management Recreation management Sport law Sports tourism Sports information

Business

Management Marketing Finance Business law Consumer behaviour International business entrepreneurship Information management

Communication

Sociology

Media and technology

Media studies Advertising Broadcasting Public relations Media relations Journalism Communication

Cultural studies Population studies Labour market studies Human relations Personnel management Sociology

Electronic media Computer science Software engineering Web business Web marketing E-commerce Broadcast media Social media marketing

FIGURE 13.1Ê œ˜Ìi“«œÀ>ÀÞÊëœÀÌʓ>ÀŽï˜}Ê̅iœÀÞÊ>˜`Ê«ÀœViÃÃ

Sport marketing professionals Sport marketing professionals who work in the industry, such as sport marketing research, college, professional and high school sports, snow sports, sporting goods, facilities, media, governing, racing and more

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Brenda Pitts Company mission and goals

Research and information collection

Consumer

Company

Competitor

Climate

Segmentation

Target market decisions

Sport marketing mix decisions and strategies

Product

Price

Place

Promotion

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those who are charged with determining the product. The primary reason is that the decisions about a product – its manufacture, distribution and retail – has an effect on cost and thus price. So, if the product costs US$35.00 to manufacture, distribute and sell to retail outlets, the pricing team must know this in order to make decisions about setting the price for the product at every step of the way. They must also know what the mission and goals of the company are in order to incorporate them. For example, if the company is a for-profit, and one of their goals is to clear a 10% profit margin on this product, then the pricing team can incorporate that into their decisions. With this example, the product might be priced for sale to distributors at 10% above cost to meet the goal. In another example, the advertising team must work with the product team. If the product being manufactured is, for example, a tennis racket targeted for the youth market, then the advertising team must know this so that they can develop promotional materials and advertising for the product specific to the youth market. Most of the decisions and strategies in each of the elements must be made based on real and factual information. This information must come from research. Therefore, the top part of the model contains ‘The 4 Cs of Sport Marketing’ – elements titled

-«œÀÌʓ>ÀŽï˜}Ê Ê 189

‘consumer, company, competitor and climate’. These four categories are the primary categories of information that the sport business must constantly collect in order to use the information to inform decisions and strategies. For this, everyone in the company must be aware of and involved in the research being conducted by the company. In fact, many companies have a research department, sometimes called the research and development department, whose responsibility is to conduct research for the company.

SPORT COMPANY MISSION AND GOALS The foundation of a company is its mission and goals. Every company falls into two broad categories: for-profit and non-profit. This categorisation will determine how the company behaves. A for-profit company is in business primarily to sell product and make a profit. A non-profit company or organisation is in business to offer a product at nearcost and make enough money to stay in business. Quite often, a non-profit business or organisation is exempt from typical business taxes, whereas the for-profit company is subject to taxes and other laws.

RESEARCH AND INFORMATION COLLECTION: THE 4 Cs OF SPORT MARKETING Every company or organisation must have good and accurate information from which to make decisions and develop competitive strategies in all areas of the company. This information falls into four categories and have been labelled ‘The 4 Cs of Sport Marketing’ (Pitts & Stotlar, 2013). Table 13.1 gives the basic information in each of the 4 Cs that needs to be studied.

TABLE 13.1Ê /…iÊ{Ê ÃʜvÊëœÀÌʓ>ÀŽï˜}

Consumer

Company

Competitor

Climate

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Economic Legal Political Social/cultural Ethical Technological Education

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The 4 Cs of sport marketing: the consumer Information about the consumer is paramount to success. The company or organisation must attempt to know as much as possible about their consumers and potential consumers. Much of this information falls into five categories: demographics, psychographics, purchase behaviour, product use and behaviouristic. Demographics information is statistical characteristics of information and data about the consumer. Some of these include such basic information as gender, age, race/ethnicity or national origin, income, education, relationship status and children. Demographics are the first set of data to describe common characteristics of a set of humans – a market. For example, for a tennis racket produced specifically for the youth market, the demographics might be as such: age 10 to 15, female and male, all races and of a family in a high income bracket. This data will help with such marketing decisions as setting price, for example. If the target demographics include ‘high income bracket’, then the price for the racket will be much higher than other rackets. Psychographics include information that is of a psychological nature, such as attitudes, aspirations, beliefs, notions and emotions. This might include such information as favourite colour, favourite sport, favourite professional athlete, religious beliefs, reasons for playing sport, reasons for climbing Mount Everest and others. In an example, the youth tennis racket might be given a professional athlete’s name as a label based on research that shows the targeted youth market adore Serena Williams. Thus, the company may call the racket ‘The Serena’ racket. Because the research shows the targeted market really like Serena Williams they will be more inclined to be attracted to and to purchase a racket with Serena’s name on it. Purchase behaviour information is the study of how consumers behave in specific relation to making a purchase. This also includes research on how consumers make purchase decisions – do they have a process, do they consult with family or friends, do they comparison-shop and are they environmentally conscious and so will try to purchase goods from companies claiming to be environmentally friendly? Another type of research involves purchase intention. For example, if a specific company is a sponsor of a sport event, will the consumer be more inclined to purchase from that company? Product use information is the study of how the consumer will use the product. For some products, the use is simplistic – a soccer ball is used to play soccer. However, when considering more details about soccer, the use may be that the soccer ball will be used strictly for practice, or that the ball needed is one that will be used strictly for matches. This information affects the manufacturing process for the product. For example, with the research about product use and now knowing that soccer consumers need some type of soccer ball for practice and a soccer ball that strictly conforms to official specifications for use in official soccer matches, the manufacturer can now use that information to make different soccer balls. Behaviouristic information involves the study of how consumers behave in relation to all shopping. It involves studying such information as what type of stores consumers prefer, where consumers prefer to shop, how far they are willing to travel to a store, how consumers react to holiday sales promotions and how consumers move throughout a store once inside. For example, if the research shows that to purchase tickets to a rugby game consumers prefer to shop at an online ticket company, then the company offering

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the rugby game will know to try to offer online ticket shopping because that is the preferred shopping behaviour by the consumer. In another example, if a sporting goods retail store’s research shows that consumers walking around inside the store are avoiding a particular area of the store, more research needs to be done to determine why and then address it. Or, if the store’s research shows consumers are using the self-service checkouts at a much higher rate than the cashier-tended checkouts, then the store’s management team might decide to instal more self-service checkouts.

The 4 Cs of sport marketing: the company You have a responsibility to know as much as you possibly can about your own company. This means that your company must constantly conduct research on itself. The research will show where there may be weaknesses and strengths, what financial resources are available and what are needed, what human resources are a strength or a weakness, and much more. This data will inform the management team’s decisions and strategies regarding the company.

The 4 Cs of sport marketing: the competitor It is highly important that you know as much about all of the competitors to your company as you know about your own company. Research must involve studying every company or organisation that has a product that directly and indirectly competes with your product. Knowing about the competitors will give you information to help with many decisions and strategies. For example, if one of your competitors holds the number one market share for a product that you also produce, perhaps you will make marketing decisions or financial decisions to try to push your company to take over the number one spot.

The 4 Cs of sport marketing: the climate Climate factors are those that are situational or context variables in which the company exists. These include such factors as the economic climate, legal climate, political climate, cultural situation, ethical climate and more (see Table 13.1). All of these factors might have effects on every decision that your company has to make. For example, having done your research and knowing that your country is in a recession, this might affect your price and pricing strategy decisions. In another example, perhaps recently a law was passed that dictates security measures at sport events. Your company must know this law and thus make decisions and strategies to comply with the law. And in another example, let’s say that the current trend regarding the environment is that people in your country want a push for new sport facilities to be environmentally sensitive. If you are a sport facility architectural firm, you must be aware of this in order to attempt to build this into the plans for the new facility.

SEGMENTATION AND TARGET MARKET DECISIONS Focused on the consumer, your company must know what consumer segments and specific markets it will focus and target. Selecting specific consumer segments and then

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target markets will drive the decisions of the company in everything about the product(s), pricing, distribution and promotion. This is why segmentation and target marketing decisions must come before the next marketing activity, the marketing mix decisions. Segmentation is the division of a whole into homogeneous groups. The whole population of people can be segmented into groups that have similar characteristics. The company then selects which of these segments to target – thus, target marketing. For example, the entire population of people who play soccer in a country have some similarities and differences. Market segmentation is the process of categorising them into different groups based on common characteristics. So, for example, age can be used as one characteristic. Most soccer organisations have age group leagues. Or, skill can be used. There are professional soccer players, recreational club soccer players and beginner soccer players. Let’s say your company manufactures soccer balls. You may decide to target each of these markets and make soccer balls specific to the specifications of each group. That way, your company will sell many more soccer balls by targeting different markets. Target marketing is the selection of specific consumer segments for which customised marketing mix elements are developed. For example, let’s say your company has decided to make products specifically for the youth market. Thus, the youth market is one of your target markets. Everything about the product – let’s say it is a tennis racket – will be customised for that market, as well as the price and pricing strategies, distribution and promotions.

MARKETING MIX: THE 4 PS OF SPORT MARKETING The marketing mix comprises four elements also informally called ‘The 4 Ps’ (see Table 13.2). A marketing professor in the 1960s, Jerome McCarthy, is credited with developing the idea of the marketing mix (Van Vliet, 2011). Of the many activities and tasks for a

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Product

Price

Place

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œ““Õ˜ˆV>̈œ˜Ê̜É܈̅Ê̅iÊ consumer about the product

Functions Features Accessories Utility Use Instructions Installation -iÀۈVi Warranty Product lines *>VŽ>}ˆ˜} Branding

"LiV̈Ûià i݈LˆˆÌÞ Product life cycle Terms Warranty Sales Special order

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`ÛiÀ̈Ș}ʓi̅œ`à >ÀŽiÌÊ`i“>˜` Publicity Public relations Media relations E-commerce M-commerce -œVˆ>Ê“i`ˆ>ʓˆÝ

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business, McCarthy organised them all into the four categories he called the marketing mix, or the 4 Ps of marketing. These elements are product, price, place and promotion. Although other authors in both marketing and sport marketing have discussed five or six or even seven Ps, the most commonly accepted rendition is the original four marketing mix elements.

The 4 Ps of marketing: product The product is what the company offers to the consumer. A company may have one product or more than one. For example, a sport law company offers legal services to the consumer – one product, although there may be some variations of that product. In another example, a sporting goods manufacturer might produce thousands of products. Products are the centrepiece of the company – the product is what the consumer is seeking (Pitts & Stotlar, 2013). A sport product may be any activity, good, service, people, places or ideas (Pitts & Stotlar, 2013). Activities comprise sport and recreation activities offered to the consumer, such as a basketball league or a golf course. Goods are tangible goods, such as soccer balls, a motorcycle helmet or snow skis. Goods also include sport and recreational footwear and apparel. A service product is primarily an intangible product, such as a tennis racket stringing service, or a golf club cleaning service, or an officiating service. People as products are those who are primarily professional athletes and coaches who are bought and sold for their performance. A place product can be a place sold for a number of reasons, such as a sport facility specifically for rent, a sport hall of fame or a swimming pool for rent. An ‘idea’ product is the product offered by such companies as a sport marketing advertising company, or a sport facility architectural company – they sell ‘ideas’.

The 4 Ps of marketing: price Price is the exchange of something for something – that is, someone exchanges something of value for something of value. In many cases, the price for something is money. In some cases, the price for something may be services or goods. The price of something may have a tremendous effect on the consumer – the consumer may have high emotional attachment to something they are purchasing, it may be that what the consumer gets for the money is of value, or it may be whether or not the consumer thinks they are getting a ‘good deal’. Price is a sensitive issue for many consumers, so the sport marketing professional must be sensitive to price. Setting the price for a product is a very important decision for the sport marketing professional. The decision is based on many factors, most of which should be based on information gained from research, and the research must be in the 4 Cs of sport marketing: the consumer, the company, the competitor and the climate. There are many different pricing methods available for the company. Some of these include cost-plus pricing, going-rate pricing, demand-oriented pricing and seasonal pricing. Cost-plus pricing involves making a determination of a specific amount to add to the cost of producing a product, and price will be set using that. The going-rate pricing method involves using the research on your competitors and determining what is the ‘going rate’ among the competitors for a product. You then set your price at the going rate. The demand-oriented

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pricing method involves dynamic pricing, where the price can fluctuate based on demand increase or decrease. If demand for the product increases, price can be increased. If demand decreases, price can be decreased. This method is also often called dynamic pricing. The airline industry has used this method for years. The sporting industry is beginning to use this method. In one example, for a recent NBA game, demand for a specific ticket grew so high that the price for it skyrocketed to over US$27,500 (Turner, 2016). This is not new – every men’s or women’s World Cup soccer championship or Olympic Games events bring people who are so highly interested in going to the event that they are willing to pay incredible amounts of money for a ticket. Seasonal pricing method involves setting prices based on seasonal demand. Seasonal might mean climate seasons, or it can mean seasons of the year, or holiday seasons. Pricing can be changed to reflect demand for sports that are seasonal. For example, snow skiing facilities can charge higher prices when winter is in full swing and so demand is high. In relation to seasons of the year, this might involve using climate season as a reason to set special prices, such as an autumn season sales event or a spring season sales event. Holiday seasons are a popular method. Many companies use holidays for pricing strategies to either raise or lower prices.

The 4 Ps of marketing: place Place is another word used for distribution. Distribution is the process of getting the product from the producer to the consumer. An important factor to remember is that the sport business industry comprises a variety of types of product: activities, goods, services, people, places and ideas. In a traditional distribution method, a good – a tangible product such as a tennis racket – must be transported from the factory through several places until it reaches the final place of sale, usually the retail store. There might be several steps in this process, called the distribution system or distribution channel. If the product is a sport event for entertainment, such as a professional netball game, the consumer must travel to the facility where the game will be played. Some of the factors for attracting the consumer include placement of the facility – the company will usually put the facility in an area that is convenient and accessible to as many people as possible. A good example of this is the Olympic and Paralympic Games. Held every four years, the International Olympic Committee (IOC) will select a host destination city that offers many factors that will make the place as attractive as possible to as many consumers as possible around the world. If the product is a sport activity, such as golf, the golf company will place the golf course as close as possible to those types of consumers targeted for the golf course. If it is decided that the golf course will be a ‘high-end’ course (meaning high-priced), income and geographic data will be very important. The golf company will find a site very close to the target market and build the course there.

The 4 Ps of marketing: promotion This element of marketing is the one that most people think is all of marketing. That’s because what most consumers see is the advertising and promotional efforts of a company. Promotion comprises several different categories: advertising, personal sales, sales promotions and publicity.

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The sport marketing professional must develop a full promotion plan comprising many different promotional methods. As all other marketing mix elements, promotion methods will be selected based on the information resulting from research on the 4 Cs. This full plan is typically called the promotional mix. The promotional mix is the combination of promotional methods that will help the company meet its objectives effectively (Pitts & Stotlar, 2013). It is rare that a company will use only one promotional method – for example, a company using only email promotions (such as, sending a coupon by email). Companies are much more successful using a broad plan of several different methods over a specified period of time. Each promotional method is unique and most serve a different function. For example, television advertising (commercials) can reach a large number of consumers, but target marketing is limited to known viewers of TV programming for that specific period of time. On the other hand, research shows that mostly older consumers watch traditional news shows held at traditional news hours, so certain companies with products targeted to that market will be successful in placing advertising on TV during that period of time. A well-known sport event in the United States is the annual Super Bowl – American football’s professional championship game. Commercials during the Super Bowl have become quite a well-watched and judged phenomenon, with high level advertising companies weighing in on which commercials were the best and which were the worst. Companies that advertise during the hours of the Super Bowl game are well aware of the research and target market viewers, as well as the extra publicity they will get because of the additional attention to the commercial rating game. The sport marketing professional must establish promotion objectives. Objectives of promotion include demand-oriented, education-oriented and image-oriented promotion. The demand-oriented objective is to affect behaviour, to be persuasive enough to increase demand and push the consumer to purchase the product. The educationoriented objective is to affect knowledge, to educate or inform the consumer about the company or its product in some way. For example, a sport business might simply want to create advertising to inform its consumers of an upcoming sales event. The imageoriented objective is to affect attitude or perception, inform or change what a consumer thinks about a product or a company. For example, a company might want to affect its good image in the minds of consumers by creating advertising that just tells the consumer how many ways the company gives back to the community, or donates funds to cancer research, or gives to the local youth sport organisation. It is important to first determine what you want to achieve with your promotional methods – the objectives will inform which promotional methods to select.

BRAND MANAGEMENT Part of the job for the company and the sport marketing professional is to create and then manage the brand of the company. Brand is the physical logo, symbol, title or name for, or of, the company. More important is the reputation and attitude of the consumer towards the brand. When a company develops a level of integrity and trust for the company in the consumer’s world, it can trust ‘the brand’ to partially carry the company. For example, a well-known and highly recognised brand around the world is the Nike

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company. Many people would recognise its logo immediately. The company spent many years and millions of dollars to impress that logo as well as the name of the company – the brand – into the minds of consumers around the world. On the other hand, the company must back up with what it purports to be – if the company claims to sell high quality products and tells the consumer that they can ‘trust’ the brand simply based on the name on the product, then the quality had better be there or the consumer will protest against the product and the company. Creating brand recognition is paramount for a company. This way, the company may simply place their logo somewhere and many consumers will, from memory, recognise the logo and be able to name the company. This is important in the sport business industry because there is so much sponsorship in sport. One of the primary reasons for sponsorship is to increase brand recognition – place the company name or logo in front of the thousands, perhaps millions, of consumers who will be present and will see the name or logo. Once exposed, the brain records what it has seen and the consumer will most likely remember the logo or brand. One of the primary purposes of this is to affect purchase decisions – when the consumer the goes shopping for something, let’s say for a tennis racket, and among the 30 or more brands of tennis rackets, they see one logo that the brain recognises, that recognition can positively affect the consumer’s decision making process. Yes, it is psychological – but the vast majority of the activities of marketing are all about psychologically manipulating the consumer so that they will purchase your company’s product.

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REFERENCES
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®°Ê ­Óä£Î®°Ê About AMA: Definition of marketing.Ê ,iÌÀˆiÛi`Ê vÀœ“Ê ÜÜÜ°“>ÀŽï˜}‡Ê`ˆV̈œ˜>ÀÞ°œÀ}É>“>° Ã>>VÃ]Ê-°Ê­£™È{®°ÊCareers and opportunities in sports°Ê iÜÊ9œÀŽ\Ê °Ê°Ê ÕÌ̜˜ÊEÊ œ° *ˆÌÌÃ]Ê °Ê°ÊEÊ-̜̏>À]Ê °Ê°Ê­Óä£Î®°ÊFundamentals of sport marketingÊ­{̅Êi`°®°ÊœÀ}>˜ÌœÜ˜]Ê76\ʈ̘iÃÃÊ ˜vœÀ“>̈œ˜Ê/iV…˜œœ}Þ° /ÕÀ˜iÀ]Ê-°Ê­Óä£È]Ê£ÓÊ
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CHAPTER 14

The economics of sport Sam Richardson

Chapter objectives After completing this chapter you should be able to: UÊ `iw˜iÊiVœ˜œ“ˆVÃÊ>˜`ʈ`i˜ÌˆvÞÊiÝ>“«iÃʜvÊ`iVˆÃˆœ˜Ãʓ>`iʈ˜Ê>ÊëœÀ̈˜}ÊVœ˜ÌiÝÌÊ̅>ÌÊ are applicable to economics; UÊ Õ˜`iÀÃÌ>˜`Ê̅iÊÀœiʜvʜ««œÀÌ՘ˆÌÞÊVœÃÌʈ˜Ê>̅iÌiýÊ>˜`ÊVœ>V…iýÊ`iVˆÃˆœ˜Ê“>Žˆ˜}Æ UÊ iÝ«>ˆ˜Ê܅ÞÊÃÕ«iÀÃÌ>ÀÊ>̅iÌiÃÊi>À˜Ê“œÀiÊ̅>˜Ê̅iʘiÝÌÊLiÃÌÊ«>ÞiÀÃÆ UÊ `iÃVÀˆLiÊ Ü…ÞÊ «>ÀˆÌÞÊ ˆÃÊ ˜œÌÊ ˜iViÃÃ>ÀˆÞÊ ˆ`i>Ê vÀœ“Ê >Ê i>}Õi½ÃÊ «iÀëiV̈Ûi]Ê >˜`Ê Ü…ÞÊ >ÌÌi“«ÌÃÊ̜ʈ˜yÕi˜ViÊ«>ÀˆÌÞʅ>ÛiʘœÌÊ>Ü>ÞÃÊLii˜ÊÃÕVViÃÃvÕÆ UÊ œÕ̏ˆ˜iÊ̅iÊ>À}Փi˜ÌÃÊÕÃi`Ê̜Ê>`ۜV>ÌiÊvœÀÊ«ÕLˆVÊv՘`ˆ˜}Ê̜Ü>À`ÃÊëœÀÌÊv>VˆˆÌˆiÃÊ>˜`Ê iÛi˜ÌÃÆ UÊ >««ÀiVˆ>ÌiÊ܅ÞÊ>̅iÌiÃʓ>ÞʘœÌʘiViÃÃ>ÀˆÞÊLi…>Ûiʈ˜Ê>ʓ>˜˜iÀÊVœ˜ÃˆÃÌi˜ÌÊ܈̅ʜ«Ìˆ“ˆÃˆ˜}Ê̅iˆÀÊ«iÀvœÀ“>˜ViÊ܈̅ˆ˜Ê̅iÊÀՏiÃʜvÊ̅iÊ}>“i°

Key Terms: Opportunity Cost; Diminishing Marginal Product; Competitive Balance; Rottenberg’s Invariance Principle; Nash Equilibrium

INTRODUCTION Economics is the study of how people use scarce resources and the implications of the allocation of these scarce resources for society. Resources in a sporting context include talent, time and effort spent on developing skills, equipment and techniques to improve performance and the knowledge of how to combine them to best effect. Scarcity is thus a crucial feature of economics. Scarcity is the situation we find ourselves in when we have potentially unlimited wants, but limited resources from which to satisfy these wants. In sport, examples of scarcity are plentiful. How can a CEO of a professional sport franchise acquire talent within the constraint of a salary cap? How can an athlete improve their performance (e.g. get bigger, faster, stronger or more agile) when faced with the limitations of their bodies? Which players does a coach choose to start a game given there are only so many starting positions? How does a city decide whether to

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attract a professional sport franchise or improve the public transport system, for example? We all face constraints that impact upon our behaviour, which suggests that the decisions we make are motivated by scarcity. In the case of the athlete, their time is scarce. In the case of the coach, starting positions are scarce. In the case of the CEO, the money he or she has to spend on players is scarce. For the city, public funds are scarce. If there was no scarcity there would be no need to choose between alternatives, and no need to study economics. People generally make decisions through careful evaluation of the benefits and costs of a particular choice. Economists say that rational people think at the margin, meaning that they consider the incremental benefits and costs that occur as a result of a given decision. They decide to undertake a particular course of action if the benefits of taking that action exceed the costs of taking that action. An important cost from an economist’s perspective is the opportunity cost, or the value of the next best alternative to a forgone action. The opportunity cost of choosing to play a sport at school, for example, is the time and effort that you could have spent pursuing another extracurricular activity. Coaches compare the benefits of a particular option (whether to start player X in the team, for example) with the opportunity cost of that option (starting player Y instead). If the benefits of an option exceed the costs of that option, then that option would be taken. If the costs exceed the benefit, alternative options would be considered. The key difference between the application of economic theory to business and sport is that for sport the definition of output is not clear. Output in sport can be several things, which are often produced jointly between competing athletes or teams, be that attendance at games, the sale of broadcast rights and the sale of media, among others (see Neale, 1964). Accordingly, the definition of the producer of such outputs, or the firm in an economics term, is also subject to debate. Some argue that the individual or team is the firm by virtue of the fact that the individual or team jointly produces the outcome of the contest. There is also a case for the league or competition as the firm, as they coordinate and organise the individuals or teams into structured competitions, and it is these competitions that generate interest and value to advertisers, sponsors, media outlets, etc. Leagues often compete with other leagues in the same and other sports, which many argue enhances the claims of the league or competition as the firm. One can consider both individuals/teams and leagues/competitions as firms to a certain extent, depending upon the output that is considered. The complex nature of output and the definition of the firm in sport can make it challenging to apply lessons from economic theory in a business context to sport. A clothing firm, for example, produces clothing and competes with other sellers in a market for clothing. It makes sense for a clothing firm to want to monopolise its market on profit grounds to capture the market and maximise profits. Economists would often discourage cooperation between clothing firms on the grounds of efficiency (the resulting market outcome would be further away from the competitive outcome). In sport, however, although individuals and teams compete with each other like clothing firms, there is considerably less incentive for an individual or team to dominate their competitions or leagues over time. This is because a dominant team reduces the value of their jointly produced output with other teams; fewer people are likely to attend games in which the outcome is a foregone conclusion. The tension between individual versus collective interests is an important feature of sport, and warrants careful consideration.

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Sport around the world is becoming more and more commercialised, and some label sport big business as a result. It is hard to disagree when one considers the role of broadcasting deals for professional sport and their explosion in size in recent years. Likewise, the seemingly ever-increasing amounts of money spent on the hosting of mega events like the Olympic Games has resulted in greater attention being given to the sport industry. Sport (both amateur and professional) often relies upon some degree of financial contribution from government (local, regional and central) in the form of the provision of taxpayer (public) funds. How should governments decide what projects (not just sport projects, but other community projects) are worthy of receiving scarce public funds? Proponents of a particular project often advocate for government support by producing commissioned economic reports that outline the economic importance of the project to the local economy. In many cases, governments, in turn, require evaluation of taxpayerfunded initiatives, often measurement against benchmarks, to decide whether what was promised actually delivered.

THE ON- FIELD ECONOMICS OF AN INDIVIDUAL ATHLETE OR TEAM Economists are often interested in how an athlete or a team is able to perform to the best of their ability – how do they win? Several key concepts from economics play a part in the quest to improve performance and win on the field. Athletes and sport teams can invest in considerable resources in their preparation for a contest. Economists refer to this preparation as a production process that involves such things as training (often utilising specialist equipment) and coaching, including team selection and strategy, among other things. As part of this process, individual athletes are often faced with a choice of what sport to play, what event or position to focus on, among others. Coaches in team sport, likewise, face the dilemma of choosing team selection and strategy – how best to combine team members to produce the best performance. A key concept in this particular choice is specialisation – the choice of what sport to focus on, what event to focus on or position to play (for athletes) or what position to play each player (for coaches). For teams, the coach or manager must consider what position to play a particular player in, and while they will almost certainly factor in a player’s preference, the primary consideration is often how a player’s selection affects the team performance. An example of such a decision is examined in the case study below.

Case study: where do you play G.I.?

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«œÃˆÌˆœ˜]Ê Ì…iÊ µÕiÃ̈œ˜Ê œvÊ Ü…iÀiÊ ÌœÊ «>ÞÊ …ˆ“Ê vœVÕÃiÃÊ œ˜Ê ̅iÊ >ÌiÀ˜>̈ÛiÊ Ü>ÞÃÊ ˆ˜Ê ܅ˆV…Ê ̅iÊ Ìi>“ÊV>˜ÊVœÛiÀÊi>V…Ê«œÃˆÌˆœ˜°Êvʘ}ˆÃÊ«>ÞÃÊvՏL>VŽ]ʅiÊ܈Êˆ“«ÀœÛiÊ̅iÊÌi>“Ê`ÕiÊ̜ʅˆÃÊ «>ÞÊ̅iÀi]Ê>˜`Ê̅iÊÌi>“Ê܈ÊVœÛiÀÊ̅iÊVi˜ÌÀiÊ«œÃˆÌˆœ˜Ê܈̅Ê>˜œÌ…iÀÊ«>ÞiÀÊ܈̅ˆ˜Ê̅iÊõÕ>`°Ê vʘ}ˆÃÊ«>ÞÃÊVi˜ÌÀi]ʅiʈ“«ÀœÛiÃÊ̅iÊÌi>“Ê`ÕiÊ̜ʅˆÃÊ«>ÞÊ̅iÀi]Ê>˜`Ê̅iÊÌi>“Ê܈ÊVœÛiÀÊ Ì…iÊvՏL>VŽÊ«œÃˆÌˆœ˜Ê܈̅Ê>˜œÌ…iÀÊ«>ÞiÀʈ˜Ê̅iÊõÕ>`°Ê-iiÊ̅iʅޫœÌ…ïV>Ê˜Õ“LiÀÃʈ˜Ê̅iÊ Ì>LiÊLiœÜÊ>˜`ÊVœ˜Ãˆ`iÀÊ̅iʵÕiÃ̈œ˜\Ê܅iÀiÊŜՏ`ʘ}ˆÃÊ«>Þ¶ TABLE 14.1Ê Ê7…iÀiÊ̜ʫ>Þʘ}ˆÃ\ÊvՏL>VŽÊœÀÊVi˜ÌÀi¶

Inglis’s performance effect

Replacement Overall impact on performance effect team performance

˜}ˆÃÊ«>ÞÃÊvՏL>VŽ]Ê replacement plays centre

+4%

–1%

+3%

˜}ˆÃÊ«>ÞÃÊVi˜ÌÀi]Ê replacement plays vՏL>VŽ

+5%

–3%

+2%

vʘ}ˆÃÊ«>ÞÃÊvՏL>VŽ]ʅˆÃÊ«ÀiÃi˜ViÊ̅iÀiʈ“«ÀœÛiÃÊ̅iÊ«iÀvœÀ“>˜ViʜvʅˆÃÊÌi>“ÊLÞÊ{¯°Ê iÊV>˜˜œÌ]ʅœÜiÛiÀ]Ê«>ÞÊVi˜ÌÀiÊ>ÌÊ̅iÊÃ>“iÊ̈“i]ÊÜʈÌʈÃʘiViÃÃ>ÀÞÊ̜ʫ>ÞÊ>ÊÀi«>Vi“i˜ÌÊ>ÌÊVi˜ÌÀiÊ̅>Ìʅ>À“ÃÊ̅iÊÌi>“½ÃÊ«iÀvœÀ“>˜ViÊLÞÊ£¯°Ê/…ÕÃÊ«>ވ˜}ʘ}ˆÃÊ>ÌÊvՏL>VŽÊ ܈Êˆ“«ÀœÛiÊ̅iÊÌi>“Ê«iÀvœÀ“>˜ViÊLÞÊί°ÊvʅiÊ«>ÞÃÊvՏL>VŽ]Ê̅i˜Ê̅iʜ««œÀÌ՘ˆÌÞÊVœÃÌÊ œvÊ̅>ÌÊV…œˆViʈÃÊ̅iÊÛ>ÕiʜvÊ̅iÊ>ÌiÀ˜>̈Ûi]Ê«>ވ˜}ʅˆ“Ê>ÌÊVi˜ÌÀi°Êvʘ}ˆÃÊ«>ÞÃÊ>ÌÊVi˜ÌÀiÊ ­>˜`Ê >Ê Ài«>Vi“i˜ÌÊ «>ÞÃÊ >ÌÊ vՏL>VŽ®]Ê Ì…iÊ œÛiÀ>Ê ˆ“«ÀœÛi“i˜ÌÊ ˆ˜Ê Ìi>“Ê «iÀvœÀ“>˜ViÊ ˆÃÊ Ó¯]Ê܅ˆV…ʈÃʏiÃÃÊ̅>˜Ê̅iʈ“«ÀœÛi“i˜ÌʜvÊ̅iÊÌi>“ʈvʅiÊ«>ÞÃÊ>ÌÊvՏL>VŽ°Ê
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In the case study and in team selection in general, economists are interested in how the team’s performance will be affected. The impact of each player on the team’s performance is known as the player’s marginal product. The concept of marginal product is the change in output that occurs with an additional player. We often hear of examples in sport where teams aggressively recruit several star players in a bid to chase championship glory in a closing window of opportunity. Fans are often excited by such moves and believe that the addition of further stars will increase the chances of their team winning the championship. Ultimately, however, there are only a set number of players in a team, and in most cases there is only one ball, opportunities with which must be shared around the team. If a team already has a prolific scorer, adding a second scorer will reduce the productivity of the first player as the second player takes some of the scoring opportunities away from them. The second scorer may have come from a team where they were the primary scorer and had most of the scoring opportunities. Joining the new team will likely cause the second scorer to have fewer opportunities than they did before, and thus their scoring may well be lower as a result. The declining productivity of each additional player is what is known as diminishing marginal product. In some instances, desperate mid-season recruitment drives to push for playoff success can lead

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to failure as in many instances players used to starring roles in weaker teams struggle to adjust to reduced roles in stronger teams. The nature of the production process of an individual or a team’s output has implications for the costs that an individual or a team incurs. In general, costs are divided into fixed costs and variable costs. Variable costs are those costs that change as output changes. Fixed costs are those that do not vary with output. For a sport team, many costs are fixed in nature, particularly if the season schedule is consistent from one season to the next. Examples of fixed costs include the facility costs they incur (stadium rent, for instance), as well as player salaries. This is important, as player costs are typically the largest single component of team costs. One final question we consider in this section is how athletes are paid. Economists have a well-established field of inquiry into the connection between sport performance and pay, beginning with Scully’s (1974) pioneering paper on pay and performance in Major League Baseball. Scully estimated players’ marginal revenue product (MRP) to measure the impact of the reserve clause on player earnings. Economic theory predicts that if the labour market is perfectly competitive, wages should equal the workers’ MRPs. Scully estimated MRP by initially examining the impact that a team’s winning percentage had on team revenues before considering the impact of player performance measures on a team’s winning percentage. Krautmann (1999) adopted a different approach to estimating a player’s value, instead using information from the free agent market to estimate the value of a player’s performance to a team. The validity of each approach has come under close scrutiny by Bradbury (2013), with his verdict that both approaches have advantages and weaknesses. The measurement of an individual player’s productivity is a growing area (see Berri, Schmidt & Brook, 2007; Bradbury, 2007). While there is a logical connection between player productivity and pay, it does not necessarily explain why some athletes earn considerably more than others when there is often only a small difference in performance or ability between them and the next best player. This is the economics of superstars, and there are two reasons why superstars are paid more than the second best player in their position. First, consumers demand the best, and so more people are willing to attend and pay more to see the best players play. What separates superstars of sport and entertainment from the likes of the best doctors or lawyers is the ability to supply the product to a large audience. Technology, in this case television and the Internet, has enabled demand for the best to be met through broadcasting of games to satisfy the huge demand that exists to view the best athletes in the world. Where the best doctors, for example, can earn sizeable income from people travelling to be treated by them, the costs of replicating the doctor’s services effectively restricts the doctor’s earning potential. Sport stars, actors and actresses can earn substantially more from having their services broadcast at low cost to millions of paying fans worldwide.

THE ECONOMICS OF SPORT LEAGUES AND COMPETITIONS In the previous section some important issues were considered surrounding the individual athlete and team, and it was noted that their performance objectives are related to on-field success. Also noted, the league can be considered as a producer of output as

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Team B’s marginal revenue ($)

Team A’s marginal revenue ($)

they coordinate, schedule and manage the operation of sporting contests to generate a league outcome. The attitude of the league is different to that of the individual or team; after all, there can be only one winner of the league championship each season. The league is concerned with the joint product generated by the individual teams and the marketability of the league to sponsors and broadcasters. An important consideration is the uncertainty of outcome in league contests. People generally prefer to attend games in which the outcomes of the games are uncertain. Leagues are most focused upon attaining on-field competitive balance between teams, and tend to use off-field measures to influence the on-field competition across the league. There is very real tension between the objectives of individual teams and league objectives. This tension is exacerbated when individual teams have differing objectives (for instance, some teams may choose a profit maximising goal, while other teams might choose a win, or utility, maximising goal). A win maximising goal differs from a profit maximising goal in that win maximising requires a team to cover its costs or to break even. Typically, a win maximising winning percentage of a team in a league is greater than the profit maximising win percentage of the same team. When teams in the same league have differing objectives, it can be harder for league interventions to bring about the desired changes to competitive balance in a league. Let’s take the idea of parity, both on and off the field, and consider whether it is in any way ideal. To begin with, let’s focus on off-field parity. Let’s consider a simple two team league. If the teams have identical market characteristics (e.g. same sized city, identical commercial sponsorship potential, identical stadium, etc.) then both teams would have the same marginal revenues that accrue from their acquisition of playing talent. A team’s marginal revenues decline as their winning percentage increases, as there is less interest in the team the more successful they become, everything else held constant. Thus, if we graphed the two marginal revenue functions together as in Figure 14.1, the outcome would be that each team’s optimal win percentage would be 0.500 (or 50%).1

MR(B) 0

MR(A) 0.5 Win percentage

FIGURE 14.1Ê
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0

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MR-A1 MR-A2

MR-B2 MR-B1

MR(A) MR(B) 0

MR(A) WP(A) = 0.6 WP(B) = 0.4 Win percentage 0.5

FIGURE 14.2Ê
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0

Team B’s marginal revenue ($)

Team A’s marginal revenue ($)

Now, let’s say that one of the teams (Team A) in Figure 14.2 was from a larger market, while Team B remained in the same sized (smaller) market. Team A would have a higher marginal revenue at every win percentage (as depicted by MR(A)*), and the optimal outcome in this case is where Team A wins 60% of the games and Team B wins 40% of the games. One might ask why the optimal outcome in Figure 14.2 is not where both teams win 50% of their games. At the point where Team A wins 50% of its games, its marginal revenue (MR-A1) exceeds that of Team B (MR-B1). This means that Team A can pay Team B to acquire some of its talent that will have the effect of increasing Team A’s win percentage (and reducing Team B’s win percentage) while at the same time increasing Team B’s revenues. The optimal win percentage is reached where the marginal revenues of both teams are equal (MR-A2 = MR-B2). At the optimum point there is no incentive for a team to buy talent from or sell talent to the other. From the point of view of our simple two team league, the optimal outcome corresponds to a higher win percentage for the large market team, and a lower win percentage for the small market team, a theoretical result that is consistent for leagues with larger numbers of teams. Despite this, however, we hear teams complaining about an ‘uneven playing field’, and debates around ‘haves and have nots’ where small market teams find it difficult to compete with large market teams on the field as well as off it, with large market teams often being considerably wealthier than their small market counterparts. It is important to note that large market teams have an obligation to purchase players that will achieve the optimum win percentage for their market size, as this is how they derive their revenues. It is evident, at least from a theoretical perspective, that the optimal win percentage in a league is not 50% for each team when you have teams from non-identical markets. To address the imbalance between large and small market teams, many sport leagues instituted a reserve clause system (a restricted labour market) as a fundamental feature of the league’s labour market. Essentially, a reserve clause system bound players to teams for as long as their careers lasted, and the only way a player could move from team to

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team was if their team agreed to trade the player to another team. The rationale for the reserve clause was simple: it was designed to prevent large market teams from acquiring all of the best talent from small market teams. Small market teams were able to hold on to players as long as they wished, and were able to trade them to other teams if it made sense for them to do so. The biggest challenge to the restrictions of the reserve clause came with the advent of free agency in the 1970s. Player unions instituted around this time were critical of the reserve clause, claiming it held down player salaries. Team owners were critical of the idea of free agency, claiming that the abolition of the reserve clause would see the best players leaving small market teams to the highest bidder for their services, which are typically the large market teams, and the gap between small market and large market teams would widen. A famous proposition, known as the invariance principle, was published by pioneering sport economist Simon Rottenberg in 1956. Essentially, Rottenberg’s invariance principle suggested that no matter who receives the benefit from player movement, whether under a reserve clause system (a system where player movement is under team control) or free agency (where off-contract players can sell their services to the highest bidder), talent will end up where it is valued most highly.2 Indeed, the predictions of the invariance principle proved correct. The advent of free agency saw next to no change in the number of players moving from small market teams to large market teams. Large market teams did not win more than small market teams; however, the salaries paid to players increased significantly.3 Leagues have sought in several ways to reduce the disparity between small market and large market teams. Salary caps and revenue sharing are two common measures designed to give teams an equal opportunity to secure playing talent. Under a salary cap system a team cannot purchase all of the best players as it is typically not affordable to do so under league salary cap rules. Revenue sharing has resulted in large market teams effectively subsidising small market teams to equalise revenues. Likewise, some leagues have adopted luxury taxes that are similar in principle to revenue sharing. Another proposed solution to reducing imbalances in leagues has been the reverse order entry draft, where the worst performed sides in the previous season get the top picks for the draft class of the following year in a bid to equalise talent levels across teams. To examine the impact of these interventions, economists have calculated measures of competitive balance both within and across seasons. There are a variety of competitive balance measures that exist, all of which are appropriate given the situation one is interested in examining. Perhaps the most common measure of within season competitive balance is the ratio of standard deviations, or RSD, of a league. This involves the calculation of the actual standard deviation of winning percentages across a league, and this figure is divided by the ideal standard deviation for the league, which is the standard deviation of a perfectly balanced league. The ideal standard deviation is measured by 0.5 ____ _ √m

(1)

where m is the number of games played by each team in the season. Thus the closer a league is to perfect balance, the closer the measure gets to one. An interesting discussion of competitive balance can be had by reading Fort (2003), Humphreys (2002), Kahane (2003) and Sanderson and Siegfried (2003). Data presented in Fort (2011)

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suggests that attempts to alter competitive balance have had little to no effect across the big four North American major league sports (NFL, NBA, MLB and NHL).

PUBLIC FINANCE: GOVERNMENT AND SPORT Increasingly, demands are being made from proponents of sporting activities, programmes, events and facilities, to governments at all levels (local, regional and central) for taxpayer assistance in funding these activities. The vast sums of public money being spent by recent hosts of the Olympic Games, including Athens in 2004 (US$16 billion), Beijing in 2008 (US$40 billion), London in 2012 (US$15 billion) and the Sochi Winter Games in 2014 (US$51 billion), were funded largely by the public sector. The sheer scale of public money poured into hosting mega events including the summer and winter Olympics, as well as the FIFA World Cup finals, suggest that there must be some compelling arguments in their favour. Several arguments are typically presented to justify public funding, with the most common argument being the economic impacts that a particular activity will have on the host economy. Indeed, the use of economic impact studies has long been a feature of advocacy campaigns for publicly funded sport facilities and sport events. The facility or event, so the argument goes, will bring spending into the local area, which will in turn stimulate the local economy as the spending ripples through the economy in the form of a multiplier effect. This often results in much larger impacts than the initial cost involved to build the facility or host the event. Independent scholarly research has largely refuted the economic impact argument of facilities and events, and several reasons have been given for why this is so. The most prominent of these have been the arguments outlined by Siegfried and Zimbalist (2006) that include (1) the substitution effect, where most spending generated by facilities and events is local spending, which is substituted from elsewhere in the local economy; (2) the impact of leakages that occur when athletes earnings are channelled out of, instead of into, the local economy; and (3) the budgetary impact that occurs when public funding towards a facility or event is diverted from other projects. Economic impact analysis typically completely ignores the opportunity cost of public funding, which is an extremely important consideration of government. Evidence suggests that tangible economic gains from sporting mega events are few and far between. Since the Seoul Summer Olympics of 1988, only two of six host countries of the Summer Games (the United States and the United Kingdom) and only one of six Winter Games host countries (Canada) experienced higher economic growth in the four-year period following the Games than the construction-fuelled four years preceding the event. Another argument for hosting mega sport events that has been widely publicised has been the potential for impacts on trade. Rose and Spiegel (2011) found that hosting the Olympic Games was associated with a large and permanent increase in exports, an effect that was also found for unsuccessful bidders to host the Games. They hypothesised that countries send a signal of economic openness by bidding for the Games. Maennig and Richter (2012) found that the effect disappeared when consideration was given to a possible selection bias; countries that bid for the Games were structurally different from non-bidding countries.

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In recent times the major supporting argument for public funding has shifted from tangible economic impacts to intangible public good benefits. Teams and events generate benefits that are both non-excludable (that is, nobody can be prevented from enjoying the benefits) and non-rival (one person’s enjoyment does not diminish another person’s ability to enjoy the benefits). Public good benefits include such things as civic pride and psychic income (see Crompton, 2004). The value of such benefits have been estimated by economists, and despite the fact that the benefits can potentially be quantified, independent scholarly research has found that public good benefits are typically insufficient to justify public funding of events and facilities. So what should governments consider when faced with a proposal to provide public funding towards a sporting project? A good starting point would be thorough consideration of the expected benefits and costs of the project. In the case of a sport event, for instance, economists would tend to advocate a careful evaluation of projected benefits (both tangible and intangible) in the form of a benefit–cost analysis (see Kesenne, 2005). A benefit–cost analysis attempts to quantify the benefits accruing to the local community from the event, and comparing these to the costs (up-front and ongoing) as well as the opportunity costs of hosting the event. While ex-post (after the fact) analysis is typically not performed for privately funded sport projects, some governments are moving towards guidelines for post-event evaluation to determine whether the pre-event predictions actually materialised, as well as ensuring that such evaluations are conducted in a consistent manner.

‘SAY IT AIN’T SO!’ LOSING THE ROMANCE: CHEATING AND CORRUPTION IN SPORT When introduced to sport at a young age, one of the first things you are encouraged to do is to play the game ‘in the right spirit’. This can be defined in many ways, and these might include playing to win, to play hard but fair, to try your best or simply to have fun. One of the assumed ideals of sport is the spirit in which a sporting contest is undertaken. The Olympics movement says that ‘[b]lending sport with culture and education, Olympism seeks to create a way of life based on the joy found in effort, the educational value of good example and respect for universal fundamental ethical principles’ (emphasis added).4 People play sport for reasons that include trying your best, setting an example and playing the game fairly and within (or to the limit of ) the rules. In recent times, however, there is cause to believe that not everyone necessarily competes in the appropriate spirit. Perhaps the spectacle that brought drug-aided cheating to prominence was the Men’s 100m Final in the 1988 Olympic Games in Seoul, Korea. The race was won by Canadian Ben Johnson in a then world record time of 9.79 seconds. Three days later Johnson was exposed as a drugs cheat due to elevated levels of the steroid stanozolol in his body and had his gold medal and world record stripped. The developments shocked the sporting world. Johnson is by no means alone in drug cheat infamy. Other prominent athletes caught doping in recent times include US cycling legend Lance Armstrong, who won seven Tour de France titles; US track star Marion Jones, who won three gold medals in the 2000 Olympic Games; and Belgian shot putter Nadzeja Ostapchuk, who won gold in the shot put at the 2012 Olympic Games.

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Case study: is cheating ever an ‘optimal’ strategy? ˜Ê iVœ˜œ“ˆVÃ]Ê ÃÌÀ>Ìi}ˆVÊ Li…>ۈœÕÀÊ ˆÃÊ >˜>ÞÃi`Ê ÕȘ}Ê game theory]Ê Ü…iÀiÊ ˆ˜ÌiÀ>V̈œ˜Ê LiÌÜii˜Ê>ʏˆ“ˆÌi`ʘՓLiÀÃʜvÊ«>ÞiÀÃʈ˜Ê>Ê}>“iʈÃʓœ`ii`°Ê7iÊV>˜ÊÕÃiÊ}>“iÊ̅iœÀÞÊ ÌœÊ “œ`iÊ >Ê ÃVi˜>ÀˆœÊ ܅iÀiÊ >̅iÌiÃÊ “ˆ}…ÌÊ Vœ˜Ãˆ`iÀÊ V…i>̈˜}Ê LÞÊ Ì>Žˆ˜}Ê «iÀvœÀ“>˜ViÊ i˜…>˜Vˆ˜}Ê`ÀÕ}ð Ê œ˜Ãˆ`iÀÊÌܜÊ>̅iÌiÃ]Ê/œ“Ê>˜`Ê ˆVŽ°Ê œÌ…Ê>ÀiʜvÊiµÕ>Ê>LˆˆÌÞÊ>˜`Ê>ÀiÊVœ“«ï˜}ÊvœÀÊ wÀÃÌÊ«Àˆâiʈ˜Ê>ÊÀ>Vi°Ê/…iÞʅ>ÛiÊÌܜÊV…œˆViÃ]Ê̜ÊVœ“«iÌiÊ܈̅œÕÌÊ«iÀvœÀ“>˜ViÊi˜…>˜Vˆ˜}Ê `ÀÕ}ÃÊ ­* Ã®Ê œÀÊ ÌœÊ Vœ“«iÌiÊ ÜˆÌ…Ê * Ã°Ê vÊ ˜iˆÌ…iÀÊ >̅iÌiÊ Ì>ŽiÃÊ * Ã]Ê i>V…Ê ܈Ê …>ÛiÊ >˜Ê iµÕ>Ê V…>˜ViÊ œvÊ Üˆ˜˜ˆ˜}Ê Ì…iÊ À>Vi°Ê vÊ œ˜iÊ œvÊ Ì…i“Ê Ì>ŽiÃÊ * ÃÊ Ü…ˆiÊ Ì…iÊ œÌ…iÀÊ `œiÃÊ ˜œÌÊ Ì…i˜Ê̅iÊ>̅iÌiÊÌ>Žˆ˜}Ê* ÃÊ܈Ê܈˜Ê̅iÊVœ˜ÌiÃÌ°ÊvÊLœÌ…ÊÌ>ŽiÊ* Ã]Êi>V…Ê܈Ê>}>ˆ˜Ê…>ÛiÊ >˜ÊiµÕ>ÊV…>˜ViʜvÊ܈˜˜ˆ˜}Ê̅iÊÀ>Vi°Ê* Ãʅ>ÛiÊÈ`iÊivviVÌÃ]ʅœÜiÛiÀ]Ê>˜`ÊÌ>Žˆ˜}Ê̅i“Ê i>`ÃÊ̜Ê>`ÛiÀÃiʅi>Ì…ÊivviVÌÃʏ>ÌiÀʈ˜Êˆvi° Ê 7iÊV>˜Ê«ÕÌÊ̅iʈ˜vœÀ“>̈œ˜Ê>LœÛiʈ˜ÌœÊ>Ê«>ޜvvʓ>ÌÀˆÝ]Ê܅ˆV…ʈÃÊŜܘʈ˜Êˆ}ÕÀiÊ£{°Î° Dick Take PEDs

Don’t take PEDs

Tom: No advantage, harmful health effects

Tom: Wins contest, harmful health effects

Dick: No advantage, harmful health effects

Dick: Loses contest, healthy

Tom: Loses contest, healthy

Tom: No advantage, healthy

Dick: Wins contest, harmful health effects

Dick: No advantage, healthy

Take PEDs

Tom

Don’t take PEDs

FIGURE 14.3Ê /…iÊ`iVˆÃˆœ˜Ê̜ÊÌ>ŽiÊ«iÀvœÀ“>˜ViÊi˜…>˜Vˆ˜}Ê`ÀÕ}Ã\Ê>Ê«>ޜvvʓ>ÌÀˆÝ

Ê /œÊÃiiÊ܅>ÌÊ̅iʏˆŽiÞʜÕÌVœ“iʜvÊ̅ˆÃÊ}>“iʈÃ]ÊÜiÊVœ˜Ãˆ`iÀÊi>V…Ê«œÌi˜Ìˆ>Êˆ˜ÌiÀ>V̈œ˜Ê ˆ˜ÊÌÕÀ˜°ÊvÊ/œ“ÊÌ>ŽiÃÊ* Ã]Ê ˆVŽÊV>˜ÊV…œœÃiÊ̜ÊiˆÌ…iÀÊÌ>ŽiÊ* ÃÊ­>˜`ʅ>ÛiʘœÊ>`Û>˜Ì>}iÊ ˆ˜Ê̅iÊVœ˜ÌiÃÌ]ÊLÕÌÊÃÕvviÀÊ>`ÛiÀÃiʅi>Ì…ÊivviVÌÃÊ`ÕiÊ̜Ê`ÀÕ}ÊÕÃi®ÊœÀʘœÌÊ̜ÊÌ>ŽiÊ* ÃÊ­>˜`Ê œÃiÊ Ì…iÊ Vœ˜ÌiÃÌ]Ê LÕÌÊ Ài“>ˆ˜Ê …i>Ì…Þ®°Ê ˆVŽ½ÃÊ LiÃÌÊ V…œˆVi]Ê >ÃÊ v>ÀÊ >ÃÊ Üˆ˜˜ˆ˜}Ê Ì…iÊ À>ViÊ ˆÃÊ Vœ˜ViÀ˜i`]ʈÃÊ̜ÊÌ>ŽiÊ* Ã]ÊLiV>ÕÃiÊÌ>Žˆ˜}Ê* ÃÊ>Ìʏi>ÃÌÊ}ˆÛiÃʅˆ“Ê>˜ÊiµÕ>ÊV…>˜ViʜvÊ Üˆ˜˜ˆ˜}°ÊvÊ/œ“Ê`œiÃʘœÌÊÌ>ŽiÊ* Ã]Ê̅i˜Ê ˆVŽÊV>˜ÊiˆÌ…iÀÊÌ>ŽiÊ* ÃÊ­>˜`Ê܈˜Ê̅iÊÀ>Vi]Ê >Ì…œÕ}…Ê…iÊ܈Ê>ÃœÊÃÕvviÀÊ>`ÛiÀÃiʅi>Ì…ÊivviVÌîʜÀʘœÌÊÌ>ŽiÊ* ÃÊ­>˜`ʅ>ÛiÊ>˜ÊiµÕ>Ê V…>˜ViʜvÊ܈˜˜ˆ˜}Ê̅iÊÀ>ViÊLÕÌÊ>ÃœÊÀi“>ˆ˜Ê…i>Ì…Þ®°ÊˆÃÊLiÃÌÊV…œˆViʈÃÊ̜ÊÌ>ŽiÊ* Ã]Ê>ÃÊ >ÌÊܜÀÃÌʅiÊ܈Ê…>ÛiÊ>˜ÊiµÕ>ÊV…>˜ViʜvÊ܈˜˜ˆ˜}Ê̅iÊÀ>Vi°Ê/…ÕÃ]Ê ˆVŽÊ…>ÃÊ>Êdominant strategy]Ê >Ê ÃÌÀ>Ìi}ÞÊ Ì…>ÌÊ …iÊ ÜˆÊ «>ÞÊ Ài}>À`iÃÃʜvÊ܅>ÌÊ/œ“ÊV…œœÃiÃ]Ê܅ˆV…ʈÃÊ̜ÊÌ>ŽiÊ * Ã°Ê /…iÊ «>ޜvvÃÊ ˆ˜Ê ̅ˆÃÊ }>“iÊ >ÀiÊ Ãޓ“iÌÀˆVÆÊ Ì…>ÌÊ ˆÃ]Ê /œ“½ÃÊ V…œˆViÃÊ >ÀiÊ ˆ`i˜ÌˆV>Ê ÌœÊ Ì…œÃiʜvÊ ˆVŽ°Ê/œ“Ê>ÃœÊ…>ÃÊ>Ê`œ“ˆ˜>˜ÌÊÃÌÀ>Ìi}ÞÊ̜ÊÌ>ŽiÊ* ðÊ/…iʜÕÌVœ“iʜvÊ̅iÊ}>“i]Ê called the Nash equilibrium]Ê ˆÃÊ vœÕ˜`Ê ˆ˜Ê >Ê µÕ>`À>˜ÌÊ Ü…iÀiÊ Ì…iÀiÊ >ÀiÊ “>ÌV…ˆ˜}Ê LiÃÌÊ Ài뜘ÃiÃ°Ê iV>ÕÃiÊLœÌ…Ê>̅iÌiÃʅ>ÛiÊ`œ“ˆ˜>˜ÌÊÃÌÀ>Ìi}ˆiÃ]Ê̅iÊ >ÅÊiµÕˆˆLÀˆÕ“ʈ˜Ê̅ˆÃÊ }>“iʈÃÊ܅iÀiÊLœÌ…ÊÌ>ŽiÊ* Ã]ÊLœÌ…Ê…>ÛiÊ>˜ÊiµÕ>ÊV…>˜ViʜvÊ܈˜˜ˆ˜}Ê̅iÊÀ>ViÊ>˜`ÊLœÌ…Ê

The economics of sport

209

ÃÕvviÀÊ>`ÛiÀÃiʅi>Ì…ÊivviVÌðÊ/…ˆÃÊ«>À̈VՏ>ÀʜÕÌVœ“iʈÃʎ˜œÜ˜Ê>ÃÊ>Êprisoner’s dilemma – >Ê ÃˆÌÕ>̈œ˜Ê ܅iÀiÊ Ì…iÊ LiÃÌÊ œÕÌVœ“iÊ vÀœ“Ê >˜Ê ˆ˜`ˆÛˆ`Õ>½ÃÊ «œˆ˜ÌÊ œvÊ ÛˆiÜÊ ˆÃÊ ÜœÀÃiÊ Ì…>˜Ê >Ê Vœœ«iÀ>̈ÛiʜÕÌVœ“i°Ê7iÊV>˜ÊÃiiÊ̅ˆÃÊ܅i˜ÊÜiÊVœ˜Ãˆ`iÀÊ̅iÊLœÌ̜“ÊÀˆ}…̇ʅ>˜`ʵÕ>`À>˜ÌÊ œvÊ̅iʓ>ÌÀˆÝ°Ê/…iÊ«>ޜvvÊ̜ÊLœÌ…Ê>̅iÌiÃʈÃÊLiÌÌiÀÊ̅>˜Ê̅iÊ >ÅÊiµÕˆˆLÀˆÕ“°Ê >V…Ê…>ÃÊ >˜ÊiµÕ>ÊV…>˜ViʜvÊ܈˜˜ˆ˜}ÊLÕÌÊ܈̅œÕÌÊ̅iʅi>Ì…ÊivviVÌÃʜvÊ* ðʘÊ̅ˆÃÊV>Ãi]ʘiˆÌ…iÀÊ >̅iÌiÊܜՏ`ÊV…œœÃiʘœÌÊ̜ÊÌ>ŽiÊ* ÃÊ>ÃʈÌʈÃÊ>Êdominated strategy°

Sometimes measures designed to encourage effort can have the opposite effect. Under the traditional rules of the reverse order draft mentioned in the previous section, teams with the worst record at the end of the season drafted the first pick overall. There appears to be a clear incentive for teams out of playoff contention to ‘tank’; that is, to lose more games than they might otherwise have lost in an effort to secure a high draft pick. The NBA instituted a weighted lottery system to reduce this incentive. The team with the worst record was no longer guaranteed to get the highest pick, but instead they had the highest chance, while teams with progressively better records had lower chances of winning the highest pick. Research by Price, Soebbing, Berri and Humphreys (2010) found evidence that teams eliminated from playoff contention in the NBA appeared to lose more games under the weighted lottery system than under the traditional rules. It appeared that the NBA’s intervention actually resulted in an increase in the behaviour it was designed to discourage. Another contributing factor that cannot be ignored in the discussion around unsporting behaviour is the role of sport betting. For as long as sport has existed, there have been links to gambling on the outcome of sporting contests. The modern sport betting environment has several features that increase the likelihood of betting-related corruption in sport. See Forrest (2012) for an in-depth summary of these features and the associated issues.

SUMMARY

Vœ˜œ“ˆVÃʈÃÊ̅iÊÃÌÕ`ÞʜvÊ̅iʓ>˜>}i“i˜ÌʜvÊÃV>ÀViÊÀiÜÕÀViÃÊ̜ÊvՏwÊ>Ê«>À̈VՏ>ÀÊ}œ>°Ê/…iÊ `iw˜ˆÌˆœ˜ÊœvÊ̅iʼwÀ“½Êˆ˜ÊëœÀÌʈÃʘœÌÊVi>À‡ÊVÕÌ°ÊÌÊ`i«i˜`ÃÊÕ«œ˜Ê̅iÊ՘ˆÌʜvÊ>˜>ÞÈÃ]Ê>ÃÊLœÌ…Ê̅iÊ ˆ˜`ˆÛˆ`Õ>ÉÌi>“Ê>˜`Ê̅iʏi>}ÕiÉVœ“«ï̈œ˜Ê…>ÛiÊii“i˜ÌÃʜvÊwÀ“ÊLi…>ۈœÕÀ°Ê
˜Êˆ˜`ˆÛˆ`Õ>½ÃÊ ÃiiV̈œ˜ÊœvÊ>ÊëœÀÌÊ>˜`Ê>ÊVœ>V…½ÃÊÃiiV̈œ˜ÊœvÊ>Ê«>ÞiÀʈ˜Ê>ÊÌi>“Êvi>ÌÕÀiÊ̅iÊ>««ˆV>̈œ˜ÊœvÊ œ««œÀÌ՘ˆÌÞÊVœÃÌ°Ê ˆ“ˆ˜ˆÃ…ˆ˜}ʓ>À}ˆ˜>Ê«Àœ`ÕVÌʈÃÊ>˜Êˆ“«œÀÌ>˜ÌÊvi>ÌÕÀiʜvÊëœÀÌ°Ê/…iÊ>``ˆÌˆœ˜Ê œvÊ>ÊÃÌ>ÀÊ«>ÞiÀÊ̜Ê>ÊÌi>“Ê̅>ÌÊ>Ài>`Þʅ>ÃÊÃÌ>ÀÊ«>ÞiÀÃÊ`œiÃʘœÌʘiViÃÃ>ÀˆÞʈ“«ÀœÛiÊ̅iʘiÜÊ «>ÞiÀ½ÃÊ­œÀÊ̅iˆÀÊÌi>“½Ã®Ê«iÀvœÀ“>˜Vi°Ê
̅iÌiÃÊ>ÀiÊ«>ˆ`ÊÀi>̈ÛiÊ̜Ê̅iˆÀʈ˜`ˆÛˆ`Õ>Ê«iÀvœÀ“>˜ViÃÊ>˜`Ê̅iÊÌi>“½ÃÊ«iÀvœÀ“>˜Vi°Ê-Õ«iÀÃÌ>ÀÊ«>ÞiÀÃÊi>À˜Ê“œÀiÊ̅>˜Ê̅iʘiÝÌÊLiÃÌÊ«>ÞiÀÊ`ÕiÊ ÌœÊ >Ê Vœ“Lˆ˜>̈œ˜Ê œvÊ ÌÜœÊ V…>À>VÌiÀˆÃ̈VÃÊ ˆ˜VÕ`ˆ˜}Ê …ˆ}…Ê `i“>˜`Ê vœÀÊ Ûˆi܈˜}Ê Ì…iÊ LiÃÌÊ «>ÞiÀÃÊ >˜`Ê̅iÊ>LˆˆÌÞÊ̜ʫÀœÛˆ`iÊ̅iÊ«iÀvœÀ“>˜ViÃʜvÊ̅iÊLiÃÌÊ«>ÞiÀÃʭۈ>ÊLÀœ>`V>ÃÌîÊ>ÌʏœÜÊVœÃÌÊÌœÊ v>˜ÃÊܜÀ`܈`i°Ê-«œÀÌʏi>}ÕiÃÊVœ˜ViÀ˜Ê̅i“ÃiÛiÃÊ܈̅ʫÀœ“œÌˆ˜}ÊVœ“«ï̈ÛiÊL>>˜ViÊ܈̅ˆ˜Ê ̅iʏi>}Õi°Êi>}ÕiÃÊÌÞ«ˆV>ÞÊ>`œ«ÌÊÃiÛiÀ>Ê«œˆVˆiÃÊ̜ʫÀœ“œÌiÊVœ“«ï̈ÛiÊL>>˜Vi]ʈ˜VÕ`ˆ˜}Ê Ì…iÊ ˆŽiÃÊ œvÊ Ã>>ÀÞÊ V>«Ã]Ê ÕÝÕÀÞÊ Ì>ÝiÃ]Ê ÀiÛiÀÃiÊ œÀ`iÀÊ «>ÞiÀÊ `À>vÌÃ]Ê ÀiÛi˜ÕiÊ Ã…>Àˆ˜}Ê >˜`Ê ÀiÃiÀÛiÊV>ÕÃiðÊ*>ÀˆÌÞʭ̅>ÌʈÃ]ÊiµÕ>ˆÌÞʈ˜Êœ˜‡Êwi`Ê«iÀvœÀ“>˜Vi®ÊˆÃʘœÌʘiViÃÃ>ÀˆÞÊLiÃÌÊvœÀÊ>Ê i>}Õi°Ê
Êȓ«iÊÌܜÊÌi>“ʏi>}ÕiÊÀi«ÀiÃi˜Ì>̈œ˜ÊŜÜÃÊ܅ÞÊÌi>“Ãʈ˜Ê>À}iÀʓ>ÀŽiÌÃÊŜՏ`Ê

210

Sam Richardson

܈˜Ê“œÀiÊ>˜`ÊÌi>“Ãʈ˜ÊÓ>iÀʓ>ÀŽiÌÃÊŜՏ`Ê܈˜ÊiÃðÊ,œÌÌi˜LiÀ}½ÃÊ­£™xȮʈ˜Û>Àˆ>˜ViÊ«Àœ«œÃˆÌˆœ˜ÊÃÌ>ÌiÃÊ̅>ÌÊÌ>i˜ÌÊ܈Êi˜`ÊÕ«Ê܈̅Ê̅iʅˆ}…iÃÌÊLˆ``iÀÊÀi}>À`iÃÃʜvÊ܅i̅iÀÊ>ÊÀiÃiÀÛiÊ V>ÕÃiÊÃÞÃÌi“ÊœÀÊvÀiiÊ>}i˜VÞʈÃʈ˜ÊivviVÌ°Ê
À}Փi˜ÌÃÊvœÀÊ«ÕLˆVÊv՘`ˆ˜}ʜvÊëœÀÌÊv>VˆˆÌˆiÃÊ>˜`Ê iÛi˜ÌÃʈ˜VÕ`iÊiVœ˜œ“ˆVʈ“«>VÌÃÊ>˜`Ê«ÕLˆVÊ}œœ`ÊLi˜iwÌðÊ/…iÃiÊV>ˆ“ÃÊ>ÀiÊÌÞ«ˆV>ÞʘœÌÊÃÕ««œÀÌi`ÊLÞʈ˜`i«i˜`i˜ÌÊÃV…œ>ÀÞÊÀiÃi>ÀV…°Ê
̅iÌiÃʅ>Ûiʈ˜Vi˜ÌˆÛiÃÊ̜ÊV…i>ÌʜÀÊ«iÀvœÀ“ÊLiœÜÊ Ì…iÊLiÃÌʜvÊ̅iˆÀÊ>LˆˆÌÞ°Ê/…ˆÃÊLi…>ۈœÕÀÊV>˜Êˆ˜VÕ`iÊÌ>Žˆ˜}Ê«iÀvœÀ“>˜ViÊi˜…>˜Vˆ˜}Ê`ÀÕ}ÃÊ>˜`Ê Ì>˜Žˆ˜}°Ê/…iÀiʈÃÊ>ÃœÊ>ÊVi>Àʏˆ˜ŽÊLiÌÜii˜ÊLiÌ̈˜}‡ÊÀi>Ìi`ÊVœÀÀի̈œ˜Êˆ˜ÊëœÀÌÊ>˜`Ê̅iÊ`iÛiœ«“i˜ÌʜvÊ̅iʓœ`iÀ˜ÊLiÌ̈˜}ʓ>ÀŽiÌ°

REVIEW QUESTIONS £Ê œÜÊ `œÊ >̅iÌiÃÊ Ü…œÊ >ÀiÊ ÃŽˆi`Ê ˆ˜Ê “œÀiÊ Ì…>˜Ê œ˜iÊ Ã«œÀÌÊ `iVˆ`iÊ Ü…ˆV…Ê ëœÀÌÊ ÌœÊ Ã«iVˆ>ˆÃiʈ˜¶Ê7…>ÌÊVœ˜Ãˆ`iÀ>̈œ˜ÃÊ>vviVÌÊ̅iˆÀÊ`iVˆÃˆœ˜ÃÊ>˜`ʅœÜ¶ ÓÊ 7…ÞÊ`œiÃÊ>ÊëœÀÌʏi>}ÕiÊÜ>˜ÌÊÌi>“ÃÊ̜ÊLiʼ}œœ`]ÊLÕÌʘœÌÊ̜œÊ}œœ`½¶ ÎÊ -iÛiÀ>ÊëœÀÌʏi>}ÕiÃÊ>`œ«ÌÊVœ“Lˆ˜>̈œ˜ÃʜvÊ«œˆVˆiÃÊ`iÈ}˜i`Ê̜ʫÀœ“œÌiÊVœ“«ï̈ÛiÊ L>>˜Vi°ÊœÀÊiÝ>“«i]ʓ>˜Þʓ>œÀʏi>}ÕiÊëœÀÌÃʈ˜Ê œÀ̅Ê
“iÀˆV>ʅ>ÛiÊÃ>>ÀÞÊV>«ÃÊ Vœ“Lˆ˜i`Ê܈̅ÊÀiÛi˜ÕiÊÅ>Àˆ˜}°Ê œÊޜÕÊiÝ«iVÌÊ̅>ÌÊ܈̅ʓœÀiÊ«œˆVˆiÃʈ˜Ê«>ViÊëœÀÌÊ i>}ÕiÃÊ܈ÊLiʓœÀiÊL>>˜Vi`]Ê>˜`Ê܅޶ {Ê 7œÕ`ʈÌÊiÛiÀʓ>ŽiÊÃi˜ÃiÊvœÀÊ>Ê`iÛiœ«ˆ˜}ÊVœÕ˜ÌÀÞÊ̜ÊVœ˜Ãˆ`iÀʅœÃ̈˜}Ê̅iÊ"Þ“«ˆVÊ >“iö xÊ
̅iÌiÃÊ œvÌi˜Ê V…i>ÌÊ LÞÊ Ì>Žˆ˜}Ê «iÀvœÀ“>˜ViÊ i˜…>˜Vˆ˜}Ê `ÀÕ}Ã°Ê iëˆÌiÊ Ì…iÊ v>VÌÊ Ì…>ÌÊ Ì…iÀiÊ>ÀiʜvÌi˜ÊÛiÀÞÊÃ̈vvÊ«i˜>ÌˆiÃʈ“«œÃi`ʜ˜Ê>̅iÌiÃÊV>Õ}…ÌÊÌ>Žˆ˜}ÊÃÕV…ÊÃÕLÃÌ>˜ViÃ]Ê “>˜ÞÊVœ˜Ìˆ˜ÕiÊ̜ÊÌ>ŽiÊ̅i“°Ê/…ˆ˜ŽÊœvÊÀi>ܘÃÊ܅ް

Notes £Ê

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REFERENCES iÀÀˆ]Ê °Ê°]Ê-V…“ˆ`Ì]Ê°Ê °ÊEÊ ÀœœŽ]Ê-°Ê°Ê­ÓääÇ®°ÊThe wages of wins°Ê-Ì>˜vœÀ`]Ê
\Ê-Ì>˜vœÀ`Ê1˜ˆÛiÀÈÌÞÊ *ÀiÃð À>`LÕÀÞ]Ê°Ê °Ê­ÓääÇ®°ÊThe baseball economist°Ê iÜÊ9œÀŽ]Ê 9\Ê ÕÌ̜˜° À>`LÕÀÞ]Ê °Ê °Ê ­Óä£Î®°Ê 7…>ÌÊ ˆÃÊ Àˆ}…ÌÊ ÜˆÌ…Ê -VՏÞ½ÃÊ iÃ̈“>ÌiÃÊ œvÊ >Ê «>ÞiÀ½ÃÊ “>À}ˆ˜>Ê ÀiÛi˜ÕiÊ «Àœ`ÕVÌ°Ê Journal of Sports Economics, 14]ÊnÇq™È°

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Àœ“«Ìœ˜]Ê°Ê°Ê­Óää{®°Ê iޜ˜`ÊiVœ˜œ“ˆVʈ“«>VÌ\Ê
˜Ê>ÌiÀ˜>̈ÛiÊÀ>̈œ˜>iÊvœÀÊ̅iÊ«ÕLˆVÊÃÕLÈ`Þʜvʓ>œÀÊ i>}ÕiÊëœÀÌÃÊv>VˆˆÌˆiðÊJournal of Sport Management, 18]Ê{äqxn° œÀÀiÃÌ]Ê °Ê ­Óä£Ó®°Ê iÌ̈˜}Ê >˜`Ê Ì…iÊ ˆ˜Ìi}ÀˆÌÞÊ œvÊ Ã«œÀÌ°Ê ˜Ê *°Ê °Ê
˜`iÀܘ]Ê °Ê -°Ê >VŽÃ…>Ü]Ê ,°Ê °Ê ,°Ê -ˆiŽ“>˜˜ÊEÊ°Ê-œiŽÊ­ `î]ÊSports betting: Law and policyÊ­««°Ê£{qÓÈ®.Ê/…iÊ>}Õi\Ê
ÃÃiÀÊ*ÀiÃð œÀÌ]Ê,°Ê­Óääή°Ê/…ˆ˜Žˆ˜}ʭܓiʓœÀi®Ê>LœÕÌÊVœ“«ï̈ÛiÊL>>˜Vi°ÊJournal of Sports Economics, 4]ÊÓnäqÓnΰ œÀÌ]Ê,°Ê­Ó䣣®°ÊSports economics°Ê1««iÀÊ->``iÊ,ˆÛiÀ]Ê \Ê*Ài˜ÌˆViÊ>° Փ«…ÀiÞÃ]Ê °Ê,°Ê­ÓääÓ®°Ê
ÌiÀ˜>̈Ûiʓi>ÃÕÀiÃʜvÊVœ“«ï̈ÛiÊL>>˜Viʈ˜ÊëœÀÌÃʏi>}ÕiðÊJournal of Sports Economics, 3]Ê£ÎÎq£{n° >…>˜i]Ê°Ê°Ê­Óääή°Ê œ““i˜ÌÃʜ˜Ê¼/…ˆ˜Žˆ˜}Ê>LœÕÌÊVœ“«ï̈ÛiÊL>>˜Vi½°ÊJournal of Sports Economics, 4]ÊÓnnqә£° iÃi˜˜i]Ê-°Ê­Óääx®°Ê œÊÜiʘii`Ê>˜ÊiVœ˜œ“ˆVʈ“«>VÌÊÃÌÕ`ÞʜÀÊ>ÊVœÃÌqLi˜iwÌÊ>˜>ÞÈÃʜvÊ>ÊëœÀÌÃÊiÛi˜Ì¶Ê European Sport Management Quarterly, 5]Ê£ÎÎq£{Ó° À>Õ̓>˜˜]Ê
°Ê °Ê ­£™™™®°Ê 7…>̽ÃÊ ÜÀœ˜}Ê ÜˆÌ…Ê -VՏÞ‡ÊiÃ̈“>ÌiÃÊ œvÊ >Ê «>ÞiÀ½ÃÊ “>À}ˆ˜>Ê ÀiÛi˜ÕiÊ «Àœ`ÕVÌ°Ê Economic Inquiry, 37]ÊÎșqÎn£° >i˜˜ˆ}]Ê 7°Ê EÊ ,ˆV…ÌiÀ]Ê °Ê ­Óä£Ó®°Ê Ý«œÀÌÃÊ >˜`Ê "Þ“«ˆVÊ >“iÃ\Ê ÃÊ Ì…iÀiÊ >Ê Ãˆ}˜>Ê ivviVÌ¶Ê Journal of Sports Economics, 13]ÊÈÎxqÈ{£° i>i]Ê7°Ê °Ê­£™È{®°Ê/…iÊ«iVՏˆ>ÀÊiVœ˜œ“ˆVÃʜvÊ«ÀœviÃȜ˜>ÊëœÀÌÃ\Ê
ÊVœ˜ÌÀˆLṎœ˜Ê̜Ê̅iÊ̅iœÀÞʜvÊ̅iÊwÀ“Ê ˆ˜ÊëœÀ̈˜}ÊVœ“«ï̈œ˜Ê>˜`ʈ˜Ê“>ÀŽiÌÊVœ“«ï̈œ˜°ÊThe Quarterly Journal of Economics, 78]Ê£q£{° *ÀˆVi]Ê°]Ê-œiLLˆ˜}]Ê °Ê*°]Ê iÀÀˆ]Ê °ÊEÊՓ«…ÀiÞÃ]Ê °Ê,°Ê­Óä£ä®°Ê/œÕÀ˜>“i˜Ìʈ˜Vi˜ÌˆÛiÃ]ʏi>}ÕiÊ«œˆVÞ]Ê>˜`Ê
ÊÌi>“Ê«iÀvœÀ“>˜ViÊÀiۈÈÌi`°ÊJournal of Sports Economics, 11]Ê££Çq£Îx° ,œÃi]Ê
°Ê°ÊEÊ-«ˆi}i]Ê°Ê°Ê­Ó䣣®°Ê/…iÊ"Þ“«ˆVÊivviVÌ°ÊThe Economic Journal, 121]ÊÈxÓqÈÇÇ° ,œÌÌi˜LiÀ}]Ê-°Ê­£™xÈ®°Ê/…iÊL>ÃiL>Ê«>ÞiÀ½Ãʏ>LœÀʓ>ÀŽiÌ°ÊJournal of Political Economy, 64­Î®]ÊÓ{ÓqÓxn° ->˜`iÀܘ]Ê
°Ê ,°Ê EÊ -ˆi}vÀˆi`]Ê °Ê °Ê ­Óääή°Ê /…ˆ˜Žˆ˜}Ê >LœÕÌÊ Vœ“«ï̈ÛiÊ L>>˜Vi°Ê Journal of Sports Economics, 4]ÊÓxxqÓǙ° -VՏÞ]Ê°Ê7°Ê­£™Ç{®°Ê*>ÞÊ>˜`Ê«iÀvœÀ“>˜Viʈ˜Ê>œÀÊi>}ÕiÊ >ÃiL>°ÊThe American Economic Review, 64]ʙ£xq™Îä° -ˆi}vÀˆi`]Ê°ÊEÊ<ˆ“L>ˆÃÌ]Ê
°Ê­ÓääÈ®°Ê*œˆVÞÊvœÀՓ\Ê Vœ˜œ“ˆVÃʜvÊëœÀÌÊqÊ/…iÊiVœ˜œ“ˆVʈ“«>VÌʜvÊëœÀÌÃÊ v>VˆˆÌˆiÃ]ÊÌi>“ÃÊ>˜`ʓi}>‡ÊiÛi˜ÌðÊAustralian Economic Review, 39]Ê{Óäq{ÓÇ°

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SECTION 3

Elements of sport management

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CHAPTER 15

Communication and social media Ashleigh-Jane Thompson

Chapter objectives After completing this chapter you should be able to: UÊ iÝ«>ˆ˜Ê̅iÊÈ}˜ˆwV>˜ViʜvÊÜVˆ>Ê“i`ˆ>Ê̜Ê>̅iÌiÃ]ÊÌi>“ÃÊ>˜`ÊëœÀÌʜÀ}>˜ˆÃ>̈œ˜ÃÆ UÊ `iÃVÀˆLiÊ̅iÊ՘ˆµÕi˜iÃÃʜvÊ`ˆvviÀi˜ÌÊÜVˆ>Ê“i`ˆ>Ê«>ÌvœÀ“ÃÆ UÊ `ˆÃVÕÃÃÊ̅iÊÀœiʜvÊÜVˆ>Ê“i`ˆ>ʈ˜ÊVœ˜ÃՓiÀqLÀ>˜`ÊÀi>̈œ˜Ã…ˆ«ÃÆ UÊ Õ˜`iÀÃÌ>˜`Ê̅iÊV…>i˜}iÃʜvÊÕȘ}ÊÜVˆ>Ê“i`ˆ>°

Key Terms: Social Media; Brand; Marketing Communication; Two-way Communication; Consumer–Brand Relationships

INTRODUCTION In the 21st century, social media has become one of the key defining features in how we communicate. Social media have not only changed how we connect with our family and friends, but also modified how brands communicate with consumers and even enabled consumers to communicate with each other. The following figures illustrate the overwhelming use and ubiquity of social media in modern society: s s s s

&ACEBOOK HAS AMASSED MORE THAN  BILLION USERS OVER  OF USERS ARE FROM OUTSIDETHE5NITED3TATES53 OR#ANADA&ACEBOOK   4WITTER HAS OVER  MILLION USERS OVER  OF USERS ARE FROM OUTSIDE THE 53 4WITTER   OF)NTERNET USINGYOUNGADULTSAGEDnUSE)NSTAGRAMHALFOFALL)NSTAGRAM USERS USETHESITEDAILY$UGGAN %LLISON ,AMPE ,ENHART-ADDEN   5SERSSPEND ONAVERAGE ATLEASTTWOHOURSPERDAYONSOCIALMEDIA'AILLE  

The phenomenon of social media use has grown exponentially over recent years, and so, too, has its influence. Some argue that they are now as influential, if not more, than traDITIONAL MEDIA $RURY  2EYNEKE 0ITT  "ERTHON   'IVEN THE EXPANSIVE

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nature and scope of social media, it is not surprising that numerous definitions exist. However, the term social media is most commonly used to describe online tools that allow sharing of information and content (e.g. video, images, text, news, opinion), and participation and collaboration through social interaction between individuals and entiTIES SUCHASORGANISATIONS&ILO ,OCK+ARG 2EYNEKEETAL  7HILESOCIAL MEDIA WERE ORIGINALLY DESIGNED FOR FRIENDS TO CONNECT WITH FRIENDS &OURNIER  !VERY  THERE HAS BEEN A SIGNIlCANT EVOLUTION OF ITS USE WITH PRIVATE PUBLIC AND NON profit organisations joining social media platforms to engage with their target stakeholders.

SOCIAL MEDIA AND SPORT !SWITHOTHERINDUSTRIES SOCIALMEDIAHAVENOTGONEUNNOTICEDINSPORT)NFACT THEYARE ONE OF THE FASTEST GROWING AREAS FOR SPORT MARKETING AND COMMUNICATION 0EGORARO  CREATING A REVOLUTION IN TRADITIONAL MARKETING COMMUNICATION ,U !NDERSON  0ITTS  ANDPROVIDINGSPORTBRANDSWITHUNPARALLELEDOPPORTUNITIESTOREACHALARGE CONSUMERBASE0EGORARO 7ILLIAMS#HINN  &OREXAMPLE AFTEREXAMINING PERCEPTIONSOFSPORTANDENTERTAINMENTVENUEMANAGERS 2OTHSCHILD DETERMINED that the significant rise in social media use in sport has resulted in the decline of traditional marketing and communication methods. Indeed, social media has profoundly changed the way sport organisations comMUNICATEWITHFANS4HOMPSON -ARTIN 'EE%AGLEMAN  !STHECURRENTGENERAtion of ‘net-users’ becomes more familiar with two-way communication, it is argued that they expect their favourite sport brands to communicate and connect with them via THESE CHANNELS "ALLOULI  (UTCHINSON  +ASSING  3ANDERSON  7ILLIAMS  #HINN  3PORTBRANDSFAILINGTOEMBRACETHESECHANGESANDENGAGEINSUCHACTIVITY risk losing sport fans and the opportunities social media provide. These opportunities include, but are not limited to, developing social connections, direct communication of BRANDIMAGEANDENHANCEDLOYALTY7ALDEN7ATERS 7ALLACE 7ILSON-ILOCH 7ATERS "URKE *ACKSON"UNING 7ILLIAMS#HINN   7HILE SOME SPORT BRANDS ARE STILL TRYING TO lND THEIR PLACE IN A CONSTANTLY CHANGING communications landscape, others are creatively utilising social media technologies and the functionality they provide to reach out to existing consumers and attract new ones. &OR EXAMPLE IN AN ATTEMPT TO CONNECT WITH INTERNATIONAL FANS AND DRIVE INTERNATIONAL MEMBERSHIP SALES TO COMBAT A SATURATED MARKET IN THE 5+ !RSENAL &OOTBALL #LUB launched various digital media applications to extend its relationships and interaction WITHANINTERNATIONALFANBASEBEYONDTHEIN STADIAEXPERIENCE+NOOP  )NADDItion, sport brands are looking at ways to integrate social media into their facilities to support in-stadia engagement. The Cleveland Indians, for example, launched a ‘social suite’ to provide fans with the opportunity to discuss the ‘Tribe’ with other attendees AND ONLINE FOLLOWERS FROM A 7I &I ENABLED SUITE AT 0ROGRESSIVE &IELD 0FAHL +REUTZER -ALESKI ,ILLIBRIDGE2YZNAR  3UCHDIGITALSPACESARENOWBECOMINGMOREPROMInent among other sport teams and events. The emergence and uptake of social media have transformed sport media and its consumption. The majority of sport organisations appear to be using social media to grow

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THEIR BRANDS AND INCREASE FAN LOYALTY !RMSTRONG $ELIA  'IARDINA  &ILO ET AL -ENG 3TAVROS7ESTBERG 4HOMPSONETAL  )NADDITION THESESITES are utilised to drive real-time interaction, while offering direct feedback and updates. One of the key features of social media use in sport is the ability to overcome barriers to FANACCESS0EGORARO  !SARESULT SOCIALMEDIAAREPARTICULARLYEFFECTIVEINSPORT as they allow fans, athletes and teams to easily connect with one another (Hambrick, 3IMMONS 'REENHALGH  'REENWELL  3ANDERSON  +ASSING  7ALDEN  7ATERS  WHICHISIMPORTANTASFANSACCESSIBILITYTOSPORTENTITIESISCENTRALTOTHE FORMATIONOFFANIDENTITY3UTTON -C$ONALD -ILNE#IMPERMAN   Social media also aid in developing online communities that bring sport fans together. Recent studies provide evidence to suggest that many uses of social media are focused towards creating fan unity and developing online communities that allow for fan interACTION'REENE $OTTERWEICH 0ALMERO'OOD  %NABLINGFANSTOSHARETHEIRSPORT ‘consuming passions’ contributes to establishing and/or reinforcing bonds between them #OVA  #OVA  -C!LEXANDER 3CHOUTEN  +OENIG  -UNIZ *R  /'UINN  )FSPORTBRANDSUSESOCIALMEDIATOCOMMUNICATEWITHFANSANDMAKEUSEOFTHESE benefits, it is suggested that it would aid them in achieving brand and relationship building goals. 0FAHLETAL OFFERANUMBEROFEXAMPLESOFHOWSPORTMARKETERSHAVEADAPTED and are paying attention to the opportunities and options that social media provide. 3ANDERSONAND+ASSING ARGUETHATDIRECTCOMMUNICATIONS ASPROVIDEDBYSOCIAL media, have revolutionised sport media by giving athletes and teams an opportunity to circumvent traditional media outlets. This is particularly important for certain athletes, niche sports and sport organisations that suffer from a lack of mainstream media attenTION%AGLEMAN 'EURIN %AGLEMAN#LAVIO 4HOMPSONETAL   !SARESULTOFSUCHCHANGES SPORTORGANISATIONSNOWPRODUCETHEIROWNCONTENTAND shape communication messages that support their brand and relationship building ENDEAVOURS!S$AVID#ARTER HEADOF53#3PORTS"USINESS)NSTITUTE STATES@ASCELEBRITY endorsements move beyond the superstars, the mid-level player with personality and social-media savvy can reach endorsement and name-recognition levels that were once ONLYTHEDOMAINOFTHEBESTOFTHEBEST"ARBARISI  &ORMER#LEVELAND)NDIAN.ICK 3WISHERISONESUCHEXAMPLE!SARESULTOFHISSOCIALMEDIAPRESENCE HEWASAPPROACHED by Mercedes to participate in the car manufacturer’s Super Bowl campaign. #ONSEQUENTLY "ALLOULIAND(UTCHINSON CLAIMTHATEVERYATHLETE TEAMORSPORT ORGANISATIONSHOULDBEINVOLVEDINSOCIALMEDIAINSOMEWAY&ORSPORTBRANDS &ACEBOOK and Twitter appear to be the most utilised social media platforms. However, while they remain the focus of many sport organisations attempting to communicate with fans, other social sites such as Instagram are also gaining traction.

FACEBOOK &ACEBOOK WAS ORIGINALLY CREATED IN  AND DURING ITS INCEPTION WAS A SITE WHERE INDIviduals created online profiles and uploaded their own content to be shared with others. (OWEVER IN  &ACEBOOK OPENED AN OPPORTUNITY FOR ORGANISATIONS TO REGISTER AS SITE USERS 9AN   )NITIALLY ORGANISATIONS CREATED PROlLES THAT MIMICKED THAT OF AN

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INDIVIDUAL BUTIN&ACEBOOKINTRODUCEDTHE@PAGEFEATURE ALLOWINGORGANISATIONSTO CUSTOMISETHEIRPRESENCEANDCOMMUNICATEWITHUSERSINANEWWAY7ALLACEETAL   2EmECTINGTHEWIDESPREADADOPTIONOF&ACEBOOK ANUMBEROFSPORTORGANISATIONSHAVE APAGEON&ACEBOOKTODEVELOPASOCIALMEDIAPRESENCE2ESEARCHEXAMININGFANMOTIVATIONSFORINTERACTINGANDENGAGINGON&ACEBOOKREVEALTHATSPORTFANSAPPEARTOBELARGELY MOTIVATEDBYINTERACTIVITY#LAVIO7ALSH  INFORMATION#LAVIO7ALSH  ¾ZSOY  ANDENJOYMENT-AHAN 3TAVROS -ENG 7ESTBERG&ARRELLY   3TAVROSETAL ALSOFOUNDTHATFOLLOWERSOFSEVERAL.ATIONAL"ASKETBALL!SSOCIATION ."! TEAMS WERE ALSO MOTIVATED BY PASSION HOPE ESTEEM AND CAMARADERIE )N ADDItion, there are distinct usage patterns among sport-specific followers, based on certain DEMOGRAPHICVARIABLESSUCHASGENDER AGEANDSPORTSEE#LAVIO #LAVIO 7ALSH #OYLE A ¾ZSOY   &ACEBOOK PAGE ATTRIBUTES ALSO INmUENCE PARTICIPATION BY sport fans, with those that signal authenticity and engagement having the greatest impact ON&ACEBOOKFANBASES0RONSCHINSKE 'ROZA7ALKER   &URTHERMORE LIMITEDRESEARCHHASEXPLORED&ACEBOOKUSAGEANDITSRELEVANCETOBRAND MANAGEMENTFORCOLLEGEATHLETICDEPARTMENTS7ALLACEETAL  #ANADIANNATIONAL SPORT ORGANISATIONS !BEZA  /2EILLY  AND .ORTH !MERICAN SPORT LEAGUES 7ALDEN7ATERS  4HESESTUDIESDESCRIBE&ACEBOOKASANUNDER UTILISEDTOOLBY these sport organisations, with little evidence that they use this platform to create or support a relationship dialogue. Indeed, some sport organisations are failing to take ADVANTAGEOFTHEOPPORTUNITIESAFFORDEDBY&ACEBOOKTOENGAGEWITHTHEIRFANBASES

TWITTER Twitter is ‘a real-time information network that connects [users] to the latest informaTION ABOUT WHAT ;THEY= lND INTERESTING 4WITTER   7HILE &ACEBOOK HAS ENJOYED SUBSTANTIALGROWTH 4WITTERHASAMASSEDALARGEUSERBASESINCEITSINCEPTIONIN)T allows users to post updates to ‘followers’, using short text based messages (referred to AS@TWEETS OFCHARACTERS0EGORARO 7ITKEMPER ,IM7ALDBURGER   Users, whether they are individuals, organisations or brands, can create personalised accounts to share tweets and follow other users. They can then respond to other users’ messages directly, or retransmit (‘retweet’) messages to their own followers. $UE TO ITS INCREASED USAGE A NUMBER OF SPORT ORGANISATIONS HAVE SOUGHT TO UTILISE Twitter to share information, communicate and interact in real time with various stakeHOLDER GROUPS (AMBRICK  ,OVEJOY 7ATERS  3AXTON  AND IT HAS BECOME the preferred tool for many sport organisations to engage socially through the Internet. 'IBBS /2EILLYAND"RUNETTES STUDYONTHE#ANADIAN&OOTBALL,EAGUEIDENTIlED promotion as a motivating factor for Twitter usage. This finding is consistent with $ITTMORE -C#ARTHY -C%VOY AND #LAVIOS  STUDY ON !MERICAN INTERCOLLEGIATE athletic administrators, who perceived Twitter usage fell into one of three primary purposes: interpersonal (i.e. two-way communication), informational (i.e. information dissemination) and promotion (i.e. relating to upcoming activities as a marketing function). !THLETESAREALSOPROMINENTUSERSOF4WITTER(AMBRICKETAL DISCOVEREDTHATTHE MOSTCOMMONUSEAMONGTHEATHLETESTHEYSTUDIEDWASPERSONALDIVERSION,ESSCOMMON uses among athletes included sharing sport information, promotion, fan-ship and content.

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+ASSINGAND3ANDERSONS STUDYOFPROFESSIONALCYCLISTSFOUNDSIMILARUSES ALONGWITH other themes of: sharing of opinions and commentary, interactivity engagement and @CULTIVATIONOFINSIDERPERSPECTIVESFORFANSP !CCORDINGTO0EGORARO 4WITTER could be used by athletes to ‘create positive exposure, engage fans, and increase their visibilITYP ALLOWINGTHEMTOBUILDTHEIRBRANDANDSTRENGTHENTHEIRREPUTATION &AN RESPONSES HAVE ALSO INDICATED POTENTIAL OUTCOMES DERIVED FROM FOLLOWING SPORT ENTITIESON4WITTER!S&REDERICK ,IM #LAVIO 0EDERSENAND"URCH LEARNED FANS felt a greater sense of engagement with athletes that were more social and interactive. &ANSALSOAPPEARTOBELARGELYMOTIVATEDTOFOLLOWSPORTBRANDSON4WITTERBYINFORMATION #LAVIO  7ALSH  $HURUP  $LODLO  7ITKEMPER ET AL  NEWS 'IBBSETAL  ANDENJOYMENT$HURUP$LODLO 7ITKEMPERETAL  

INSTAGRAM 6ISUALLYBASEDSOCIALMEDIAARENOWAMONGTHEMOSTPOPULARSOCIALMEDIASITES7ATKINS ,EE  )NSTAGRAMISONEOFTHEBEST KNOWNVISUALPLATFORMS/FlCIALLYLAUNCHED IN  IT IS A MOBILE APPLICATION THAT ALLOWS USERS TO UPLOAD THEIR OWN PHOTOS AND  SECOND VIDEOS AS WELL AS COMMENT AND LIKE PHOTOS AND VIDEOS FROM OTHER USERS 'EURIN %AGLEMAN  "URCH   )T WAS PURCHASED BY &ACEBOOK IN  AND IS REGARDEDASTHEFASTESTGROWINGSOCIALMEDIASITEWITHOVERMILLIONWORLDWIDEUSERS 'EURIN %AGLEMAN"URCH 3MITH3ANDERSON  )MAGESINCLUDEDON)NSTAGRAMCANALSOBESHAREDONOTHERSOCIALMEDIASITESEG&ACEBOOKOR4WITTER  7ITH THE INCREASED MAINSTREAM USAGE OF )NSTAGRAM A NUMBER OF SPORT ORGANISATIONS and athletes have started using it, claiming that followers appear to be drawn to the ability to gain access to behind the scenes photos from their sporting idols (Clavio,   !THLETES IN PARTICULAR ARE UTILISING )NSTAGRAM AS A SITE THROUGH WHICH THEY CAN SHOWCASE THEIR PERSONAL LIKES INTERESTS AND FAMILIES 3MITH  3ANDERSON  AND MAKE ANNOUNCEMENTS DIRECTLY TO FOLLOWERS #HAWANSKY   )N  7OMENS .ATIONAL"ASKETBALL!SSOCIATION7."! STAR'LORY*OHNSONPOSTEDAPHOTOTOTHESITE ALONGWITHTHECAPTION7ELCOME4O4HE*OHNSON&AMILY ANNOUNCINGTHATSHEANDFORMER PARTNER "RITTNEY 'RINER WERE EXPECTING A BABY (OWEVER ATHLETES HAVE FALLEN FOUL OF their teams for posting inappropriate content to the site. In one such example from  THE3AN&RANCISCOERSSUSPENDED"RANDON*ACOBSFORUPLOADINGAPHOTOANDTHE comment ‘I am on this team rotting away so why would I wanna put any pics up of anyTHINGTHATSAYNINERS%30.   !S A VISUAL MEDIUM )NSTAGRAM HAS IMPORTANT MARKETING AND BRANDING IMPLICATIONS FORSPORTBRANDS&EWSTUDIESCURRENTLYEXAMINEITSUSEWITHINTHESPORTINGCONTEXT BUT THOSE THAT DO HAVE EXPLORED ATHLETES SELF PRESENTATION ON )NSTAGRAM 7HILE THE EMERgence of such sites provide athletes (and organisations) with the power to exert more CONTROL OVER THEIR SELF PRESENTATION 3ANDERSON  RESEARCH REVEALS THAT ATHLETES appear to be conforming to gender norms and traditional mass media portrayals. In line with this, female athletes have been shown to post content that is more personal and SEXUALLY SUGGESTIVE IN NATURE 'EURIN %AGLEMAN  "URCH  3MITH  3ANDERSON  (OWEVER ATHLETESOFBOTHGENDERS SHOULDPOSTAWIDEVARIETYOFPHOTOTYPES PARTICULARLYIFTHEYWISHTOBUILDTHEIRATHLETEBRAND'EURIN %AGLEMAN"URCH  

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BRANDING AND SOCIAL MEDIA !S THE POPULARITY OF SOCIAL MEDIA INCREASES SPORT ORGANISATIONS MUST DEVELOP SPECIlC STRATEGIESTOUSESOCIALMEDIATOENHANCEFANLOYALTYANDBUILDBRANDS)OAKIMIDIS   However, sport managers are warned not to simply transfer traditional marketing comMUNICATION EFFORTS AND STRATEGIES TO THESE EMERGENT MEDIA !CCORDING TO %DELMAN  @CONSUMERSTODAYCONNECTWITHBRANDSINFUNDAMENTALLYDIFFERENTWAYSTHAT means traditional marketing strategies must be redesigned to accord with how brand RELATIONSHIPSHAVECHANGEDP +ASSINGAND3ANDERSON NOTETHATSOCIALMEDIA offer considerable shifts in the interaction and consumption of sport, whereby professional sport brands now have the opportunity to foster a personal relationship with conSUMERS FACILITATEDBYINCREASEDBRANDINTERACTION'LADDEN&UNK 2OSS 2USSELL "ANG  7ITHINCREASEDINTERACTION BRANDASSOCIATIONSANDSYMBOLICANDEXPERIential benefits (i.e. fan identification, escapism and entertainment) can be reinforced 9AN   In the online branding context, brand experience plays a crucial role in brand building. The experience consumers have with a brand significantly affects their satisfaction and trust in the brand. Improving consumers’ experience with a brand can lead to INCREASED BRAND FAMILIARITY 3IMMONS   (IGH QUALITY ONLINE INTERACTIONS AND engagement are key in this process, such that consumers develop positive brand associATIONSTHATLEADTOINCREASEDBRANDLOYALTYANDIDENTIlCATION"OWDEN 3IMMONS  !S"RODIE (OLLEBEEK *URICAND)LIC INDICATE ITISCLOSELYTIEDTOTHETREND of creating an ‘interactive experience and value co-creation within marketing relationSHIPSP #ONSEQUENTLY THEEMERGENCEOFSOCIALMEDIAHASHADAPROFOUNDEFFECT ONBRANDMANAGEMENTANDTHEPOTENTIALTOBUILDSPORTBRANDSVIATHESEMEDIA7ALLACE ETAL   Communication is essential to the branding process, and thus its centrality to branding strategy cannot be ignored. Social media have dramatically changed the communication landscape. These platforms transcend geographic and temporal barriers, enabling brands to have direct contact with fans regardless of their location. In effect, they expose new international markets. Brands seeking to develop relationships with both current and potential consumers pursue social media as a means to achieve this. In one of the few studies that explicitly explores social media as brand manageMENTTOOLS 7ALLACEETAL SUGGESTTHATSOCIALMEDIAPROVIDESPORTBRANDSWITH the opportunity to build and maintain brand image, association and awareness through their communication with fans. However, they also report that in the context of their study, little marketing related activity was undertaken. The authors CONCLUDE THAT THE CAPABILITIES OF &ACEBOOK WERE UNDER UTILISED AS LINKS AND STATUS updates were the most dominant communication method, and thus possibilities for INTERACTION WERE LIMITED )N A SIMILAR STUDY IN THE CONTEXT OF THE 7."!S USE OF 4WITTER 0EGORARO  FOUND LITTLE PROMOTIONAL ACTIVITY WAS UNDERTAKEN IE sponsor mentions, tickets and/or merchandise sales) and opportunities to display interactivity were limited. If sport brands want to strategically leverage social media for branding related purposes, it must be supported by continued interaction and direct engagement.

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CONSUMER–BRAND RELATIONSHIPS AND SOCIAL MEDIA There has been a significant shift from a transactional to a relational marketing approach, in which interaction, communications and connecting with fans is the central focus. Social media provide organisations with the ideal platform to apply this type of marketing APPROACH ASTHEYSUPPORTINTERACTIONANDNOVELWAYSTOENGAGEWITHCONSUMERS7ALLACE ETAL 7ILLIAMS#HINN  )MPORTANTLY SOCIALMEDIAALLOWORGANISATIONSTHE opportunity to communicate with fans rather than toTHEM0FAHLETAL   Content that is engaging to fans plays a critical role in soliciting such interactions as well as retaining customers. This is a fundamental requirement for building relationships, and as such it is crucial for sport organisations to provide relevant and interaction driven CONTENTONSOCIALMEDIASITES&OREXAMPLE 7ILLIAMSAND#HINN PROVIDEACONceptual examination of the application of online technologies in helping sport organisations meet their wider relationship marketing goals and note that opportunities for interaction and communication are central to the process upon which relationship value is determined. (OWEVER 0EGORAROS  EXAMINATION OF 4WITTER USE BY THE 7."! FOUND FEW examples of relationship building strategies evident in the tweets included in her study. 3IMILARLY INASUBSEQUENTSTUDYEXAMINING&ACEBOOKUSAGEBYFOURMAJOR.ORTH!MERICAN PROFESSIONAL SPORT LEAGUES 7ALDEN AND 7ATERS  FOUND THAT LITTLE TWO WAY interaction was supported by these leagues, with usage focusing on promotion and publicity rather than delivering engagement and supporting discussions by way of responding to fans’ questions. The authors conclude that while social media were used to generate brand awareness, the leagues would be more likely to ensure the development OFRELATIONSHIPSTHROUGHTHEPROVISIONOFOPPORTUNITIESFOR@TRUEENGAGEMENTP  In addition, recent research has found that social media may influence fans’ emotional connection to the brand, such that it affects their relationship. In their examination of )NDY#AR DRIVERS #LAVIO 7ALSH AND 6OORIS B FOUND THAT DRIVERS WERE CONVINCED THATTHEIR4WITTERUSEALLOWEDTHEMTOENGAGEWITHFANSONANEMOTIONALLEVEL!SIMILAR lNDING WAS REPORTED BY $AVIS 0IVEN AND "REAZEALE  YET THEY FURTHER ACKNOWledge that a lack of enjoyment and entertainment in brand interactions negatively affected emotional ties, resulting in ‘on-off consumption encounters with a brand’ P   3PORT MANAGERS NEED TO BE WARY OF THIS AS ENCOUNTERS SUCH AS THIS MAY ULTImately damage the development of any consumer–brand relationships. These discoveries have important practical implications, as emotional bonds developed through social media interaction may influence the strength of fans’ relationships with the brand, necessitating development and management of a brand’s social strategy accordingly.

CHALLENGES The use of social media by sport organisations and sport managers is not without its chalLENGES AND IT WOULD BE REMISS NOT TO ACKNOWLEDGE THESE HERE $UE TO ITS PERCEIVED infancy and unsubstantiated ability to deliver on certain marketing objectives (McCarthy,

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Ashleigh-Jane Thompson

2OWLEY !SHWORTH0IOCH  SOMESPORTORGANISATIONSARESTILLHESITANTTOENGAGE in social media communication and branding endeavours (see Case Study). To this end, previous literature emphasises barriers and perceived challenges, both internal and exterNAL TOTHEADOPTIONOFTHESENEWTECHNOLOGIESAMONGVARIOUSSPORTENTITIES&OREXAMPLE INTHEIRSTUDYONMANAGERSOF#ANADIANRUNNINGEVENTS !BEZA /2EILLYAND2EID identified five challenges that impact on the benefits that sport organisations can derive from social media: lack of control, concerns over credibility, concerns over effectiveness, difficulties identifying true customers and the allocation of organisational resources. Similarly, constant technological developments necessitate that organisations adapt their STRATEGIESACCORDINGLY/3HEA!LONSO 4HOMPSONETAL   7HILE SOCIAL MEDIA CAN PROVIDE SPORT ORGANISATIONS WITH THE MEANS TO SUPPORT THE DEVELOPMENT OF CONSUMERnBRAND RELATIONSHIPS &OURNIER "REAZEALE AND &ETSCHERIN  ARGUETHATTHERISINGUSEOFANDRELIANCEONSUCHTECHNOLOGIESMAYFURTHERCOMPLICATETHERELATIONSHIPBUILDINGTASK)NSUPPORTOFTHISNOTION -C#ARTHYETAL FOUND THAT 5+ FOOTBALL CLUB PERSONNEL WERE SCEPTICAL ABOUT NEGATIVE IMPLICATIONS ON BRANDIMAGEFROMENGAGEMENTIN7EBANDTHEYFELTTHATENGAGINGWITHSOCIALMEDIA may be detrimental to relationship building efforts. In addition, with a plethora of online TOOLS AVAILABLE BRANDS FACE QUESTIONS ABOUT WHERE TO FOCUS THEIR EFFORTS &OR EXAMPLE 7ATERS ET AL  FOUND THAT .ATIONAL &OOTBALL ,EAGUE .&, TEAMS USED THEIR WEBSITEMOREOFTENTHAN&ACEBOOKTOCULTIVATERELATIONSHIPSWITHFANS&URTHERADDINGTO the complexity is the notion that social media were only originally developed as a space for individuals to share and connect with others. Organisations and brands have to negotiate the ‘private space’ of consumers, necessitating different marketing communication ANDBRANDINGPRACTICESTOBEEFFECTIVEINTHISSPACE&OURNIER!VERY   !SMENTIONEDPREVIOUSLY CONSTANTENGAGEMENTWITHFANSCANSERVETOREINFORCEBRAND ASSOCIATIONSANDDEVELOPCONSUMERSBRANDKNOWLEDGE+ELLER  OFFERINGIMPORTANT chances to build the brand. However, unique to the sporting context is the notion of an off season; a time where limited attention is directed to the athlete, team or sport organISATION 4HIS ASPECT IS EVEN MORE PREVALENT FOR SPORT EVENTS 'IVEN THE ABILITY OF SOCIAL media to aid in developing positive brand experiences that may contribute to the development of brand loyalty and consumer–brand relationships, online experiences need to SUPPORTBRANDEXPERIENCESDURINGOUTOFSEASONANDNON EVENTTIMES!SDISENGAGEMENT may be construed by fans as a sign of relationship breakdown, sport managers must make a concerted effort to ensure interaction and engagement is promoted and fostered throughout the year. Increasingly, fans use social media as direct communication tools and actively seek to COMMUNICATE WITH BRANDS ON SOCIAL MEDIA AROUND THE CLOCK 4HOMPSON   4HIS suggests a shift in the way fans communicate with brands, which may result in altered expectations and increases in the amount of data brand personnel need to contend with. 0RACTITIONERS ACKNOWLEDGE THE CHALLENGE OF PROVIDING UNIQUE VALUE ADDED CONTENT ON EACH OF THEIR SOCIAL MEDIA PLATFORMS 4HOMPSON  4HOMPSON ET AL   )T IS now necessary for a brand to meet the needs of fans in order to create value, as it serves as a determinant of the consumer’s relationship to the brand and remains an important issue for sport marketers to manage. Moreover, sport organisations that aim to utilise social media to build their brands and foster long-term consumer–brand relationships must align with the needs of all their

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fans to ensure content and interactions deliver value for their specific fan groups. If they do not, fans may avert or absolve their connection if they perceive content to be irrelevant or too infrequent. Thus, sport managers need to create content that is unique to their organisation and also caters to the diverse needs of their fans, which requires careful attention to the content they present. $ESPITE POTENTIAL OPPORTUNITIES AFFORDED BY SOCIAL MEDIA NOT ALL SPORT EVENTS ARE AS willing to embrace its usage. Social media are viewed as a challenge, rather than an OPPORTUNITY FOR SOME EVENTS 4HE FOLLOWING CASE STUDY OF THE !USTRALIAN /PEN AN annual international tennis tournament) and the Ryder Cup (a men’s golf competition PLAYEDBETWEENTEAMSFROM%UROPEANDTHE53 SERVESTOILLUSTRATETHISPOINTANDHIGHlight the dilemma of social media for sport events.

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Communication and social media

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>ۈœ]Ê°]Ê7>Ã…]Ê*°ÊEÊ œÞi]Ê*°Ê­Óä£Î>®°Ê/…iÊivviVÌÃʜvÊ}i˜`iÀʜ˜Ê«iÀVi«Ìˆœ˜ÃʜvÊÌi>“Ê/܈ÌÌiÀÊvii`Ã°Ê Global Sport Business Journal, 1]Ê£q£{°

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226

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CHAPTER 16

Sport law Neville Cox

Chapter objectives After completing this chapter you should be able to: UÊ Õ˜`iÀÃÌ>˜`ʅœÜÊëœÀÌÊ>˜`Ê̅iʏ>ÜÊV>˜ÊLiVœ“iʈ˜ÌiÀÌ܈˜i`Æ UÊ `ˆÃVÕÃÃÊ̅iʏ>Üʈ˜ÊÀi>̈œ˜Ê̜Ê>˜Ìˆ‡Ê`œ«ˆ˜}ʏi}ˆÃ>̈œ˜Æ UÊ `iÃVÀˆLiʅœÜÊVÀˆ“ˆ˜>Ê>ÜÊV>˜ÊLiÊ>««ˆi`Ê̜Ê̅iÊëœÀ̈˜}ÊVœ˜ÌiÝÌÆ UÊ `ˆÃVÕÃÃʅœÜÊLÀi>V…iÃʜvÊVœ˜ÌÀ>VÌÊ>˜`Ê̜ÀÌʏ>ÜʜvÌi˜ÊÌ>ŽiÊ«>Viʈ˜ÊëœÀÌÆ UÊ Õ˜`iÀÃÌ>˜`Ê̅iÊVœ˜Vi«Ìʜvʈ˜ÌiiVÌÕ>Ê«Àœ«iÀÌÞÊ>˜`ʈÌÃʏi}>Êˆ“«ˆV>̈œ˜Ã°

Key Terms: Tort Law; Contract Law; Intellectual Property; Rights and Equality

INTRODUCTION At one level, the concept of the law having a role to play in the governance of sport may seem an odd thing. Sport, after all, is supposed to be about fair play and Corinthian values, whereas the law exists, in essence, to deal with situations either where these values have been violated or where disputes cannot be amicably resolved. But the reality is that the law is increasingly involved in the way in which sport operates and in this chapter the contexts of such involvement are considered. As will be seen, perhaps the biggest catalyst for the law getting involved in sport is the presence of money as sport becomes a professional endeavour and a very big business globally. This is not to say that the law can never have a role to play where amateur sport is at stake (as will be seen, it can and does), but merely that where a great deal of money is on the line (for example, in the context of exploitation of the so-called image rights of sport bodies), then it is more likely that parties will have recourse to the law to defend what they see as their rights. What is interesting, however, is the fact that in many contexts, lawmakers and courts seem to take the view that the law should either not apply or should apply only in a watered down fashion where sport is at issue. Thus, for example, as is discussed, a punch thrown in a rugby match is less likely to attract criminal liability than is an equivalent

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assault that takes place in a nightclub or another public place. In other words, for whatever reason, the view is taken that ‘sport’ is something that is of benefit (as a matter of public policy) and therefore it should be allowed a considerable degree of laxity in so far as the application of law is concerned.

WHAT IS SPORT? Of course, this raises an initial question (with two levels of enquiry): namely, what is sport or ‘a sport’? At a superficial level, this is significant in that if an activity is defined as ‘a sport’ it may attract charitable status or government funding and, in addition, it will benefit from the relaxed application of the law mentioned in the previous paragraph. After all, if rugby, boxing or MMA were not defined as sports then they might well be illegal. The difficulty, however, is that it can be very difficult to put a precise definition on what is meant by ‘a sport’. Must it involve physical exertion (in which case it is doubtful whether snooker, darts or some Olympic events like clay pigeon shooting could be defined as sport)? Must it involve competition (in which case marathon runners or triathletes who simply want to take part rather than compete, surely the essence of Corinthian values, cannot be seen as being engaged in sport)? Must it involve the presence of a rule enforcer or referee (in which case most amateur sporting activities where no such referee is present could not be defined as sport)? The search for a definition of sport is a difficult one. Frankly, it is probably most accurate (though not very satisfying) simply to say that if a national sport council defines an activity as a sport then it is one and if it doesn’t then it is not. (Something that must be of concern for emerging forms of martial arts whose very legality depends on the question of whether they can be recognised as sport.) The second aspect to the question ‘what is sport?’ is different, but even more relevant in so far as sport law is concerned, and goes to the issue of popular understandings of what is meant by sport. The point is that there are at least three different senses in which the term ‘sport’ is used, in relation to the same activity; let us say the game of soccer. a

b

First there is ‘sport the activity’, an amateur pursuit that contributes to good health, is a source of fun and does not tend to generate revenue. So, if I play a five-a-side soccer match once a week, this is sport, but unless I break someone’s leg through an action that is radically outside the rules of the game, the law is highly unlikely to be concerned in what is happening. At the other end of the spectrum there is ‘sport the business’. Professional soccer, like many other sports, is in effect a giant and highly successful reality television show. Its quite remarkable success lies in its ability to convince people of the fact that what it does is significant for them (even though, quite frankly, it is not). Participants in the show are paid often enormous sums of money to take part despite the relative societal unimportance of their ‘work’, thus an English Premier League (EPL) soccer player might earn in one week perhaps seven times more than a nurse will earn in a year. And, critically, the ‘viewers’ of this show (the fans) buy into the myth of its importance and keep it afloat by funding it through the purchase of tickets, access to televised broadcasts of matches and merchandise. Sport, in this context, is big business. Thus in 2015 the global sport industry was reckoned to be

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c

worth approximately US$1.5 trillion. And because there is so much money involved in this incarnation of sport, it is unsurprising that the law will also be involved. But in the middle, critically, there is what could be termed ‘sport the something special’. This links to both the activity in which ‘ordinary people’ like to participate and also to the reality show that people watch. Far more than any other reality television show, after all, sport generates deep-seated emotions of pride and joy within devotees (and enables them to link what they see on their TV screens with what they may engage in at a very amateur level). This is perhaps most obvious when a national team is playing in an international competition and in this context the morale of an entire country can be raised through pride connected with sporting success of that national team. But it is not only when national pride is at stake that this applies. This chapter is written in the immediate aftermath of the genuinely unprecedented situation where Leicester City FC, at odds of 5000/1, have won the 2015–2016 EPL title. A friend of the chapter’s author, an eminent law professor from Indiana with precisely no connections to the city of Leicester or the game of what he terms ‘soccer’, has been caught up in the evolving story of their success, and his elation when they won the league was truly remarkable. In other words, sport the business (the reality TV show) is, for many people, more than just a business; it is a source of pride and joy, and, in the case of some sport fans it can even be their primary basis for self-identification.

This is enormously important in so far as the law’s involvement in sport is concerned. The law has no interest in regulating ‘sport the activity’ in a way that might chill or restrict the benefits that clearly flow from it. On the other hand, it clearly is interested in regulating sport the ‘business’ (or reality television show) because of the amount of money that is on the line and because of the extent to which the commercial and other rights of persons and businesses are at risk. But in practice, what has happened is that even the regulation of the business of sport has been conditioned by the recognition of the concept of ‘sport the something special’. In other words, the law recognises that to some extent the business of sport should be allowed to be self-regulating, in that (so it is argued) this is the best way to protect the intangible benefits that flow from its status as something special. Thus (to take an obvious example), an objectively recognisable mistake by a referee in allowing or disallowing a goal in a professional soccer match might have drastic commercial consequences if, for example, it led to a team winning a major competition or another team being relegated from the top league of a national soccer structure. In another type of industry, a ‘wrong’ decision of this kind which cost someone that much money might well be legally reviewable. In sport, on the other hand, there is never a question of a referee’s decision being scrutinised for error (rather than for bad faith) by a court of law, and because of the view that if this were permitted it would undermine the ‘special nature’ of sport. To some extent this is the reason why it is now possible to speak of the concept of Sport Law, which implies that this is a distinct body of law, rather than Sport and the Law, which implies that the focus is merely on the application of law to a particular activity. For various reasons, normal legal principles are applied to sport in a bespoke manner, and what emerges is, arguably, a distinct lex sportiva. This chapter will consider, briefly, some of the various contexts in which the law interacts with sport in this bespoke way.

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Before doing so, however, it is necessary briefly to refer to two final and related introductory matters: namely, the organisational structure by which competitive sport is organised and the role of alternative mechanisms, rather than court based litigation, by which disputes in organised sport are, for the most part, now resolved.

THE ORGANISATIONAL STRUCTURE OF SPORT Organised sport, and not merely professional sport, globally operates on the basis of three distinct strands of governance. First, national governments as well as supranational governmental organisations (such as for example, the European Union, UNESCO and the Council of Europe) have a significant role to play in regulating the business and organisation of sport. From a national government perspective this is generally done through the work of national sport councils. The impetus behind such agencies is generally twofold. In the first place, they exist to ensure the proper development of sport within their territory both in terms of funding grassroots sport and also in terms of facilitating and developing elite sport and high performance athletes and national teams who, it is hoped, by achieving sporting glory will bring credit to the country. In addition, they seek to promote ethical sport predominantly though not exclusively in relation to anti-doping policy, something that is considered in detail later. Second, individual sports have their own governing bodies that operate at an international, regional and national level. These bodies have responsibility to organise competitions in the particular sport and, where professional sport is concerned, they are effectively responsible for the entire organisation of the profession in the relevant area. This is itself an interesting dynamic and one that is potentially troubling. As things stand, for example, the organisation of professional soccer in Britain is entirely in the hands of the Football Association (FA), which is affiliated to the European organisation UEFA, and thence to the International Federation (FIFA). In other words, if one wishes to work as a professional soccer player in England one has no choice but to play by the rules of the FA, which necessarily means playing by the rules of UEFA and FIFA, however unfair, arbitrary or unreasonable those rules might be. There are potential ways of challenging these rules (e.g. through an appeal on a point of EU law), but the reality of the situation means that, naturally, the unitary governing body for the sport has a great deal of power and a great deal of capacity to abuse that power. To be clear, there is no insinuation that the English FA is an abusive body; merely that the singular governing body system allows for the possibility of such abuse. Finally, the third strand of governance is that contained within the Olympic movement. Theoretically the International Olympic Committee (IOC), which also spawns regional and national Olympic councils, only has jurisdiction over two weeks of sport every two years (the summer and winter Olympic Games), but in reality it has a great deal more power in sport than this. In the first place, it purports to provide moral leadership over sport. In the second, for a large number of sports, which do not have significant independent revenue streams and depend for survival on their participation in the Olympics and the sponsorship and television revenues that flow to them as a result, the power that the IOC holds over them (in the sense that it can determine whether or not

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they become or remain ‘Olympic sports’) is potentially enormous. Furthermore, the IOC has political clout, not least because countries that might wish, at some stage, to host the Olympic Games will need to ensure that they are on good terms with it. Linked to the IOC are two further bodies of significance in so far as the governance of sport is concerned. First, there is the World Anti-Doping Agency (WADA). This body was set up in 1999 as a response to the apparent inability of sport governing bodies, national governments and the Olympic movement to properly target doping in sport. WADA now works as an independent doping agency that, with the consent of sport federations and national governments, essentially dominates the construction and application of anti-doping rules globally, which will be discussed in more detail later in this chapter. Second, and very importantly, there is the International Court of Arbitration for Sport (CAS), a body that, in its original incarnation, was set up by the IOC but which, since 1993, operates as an independent arbitral body. To understand the functions of CAS it is necessary first to understand the nature of the arbitration mechanism and why it is so significant for sport. In essence, arbitration exists as an alternative to litigation (that is, a normal civil action in court between parties in dispute). The process involves a decision to refer a dispute to a nominated arbitrator. It is a less formal process than incourt litigation and, theoretically, is quicker and cheaper as well. From the perspective of sport governing bodies, moreover, it offers the significant benefit that it seems to represent less of an incursion by an outside body (such as a court) into the way in which sport is internally regulated. For this reason arbitration is the norm for sport disputes in that most governing body rule books, which represent the terms of a contract between it and its members, will contain an arbitration clause; that is, a clause requiring that any disputes arising between members and governing bodies will be resolved exclusively by arbitration. CAS has first instance jurisdiction over all disputes arising in so far as international federations are concerned, but also many rule books from domestic governing bodies will provide for an appeal from the decision of the domestic arbitrator to CAS. The majority of cases heard by CAS relate to the doping issue but, in addition, it will hear a large range of additional and potentially very important issues as well, such as athlete selection.

THE INTERACTION OF LAW AND SPORT For the remainder of this chapter, a brief outline of some of the various contexts in which the law relates to sport will be considered. It is, perhaps, worth making the point that some of these areas are of more relevance in different parts of the world than others. In other words, observations are necessarily general, but in order to properly understand the application of the law to particular sporting issues in particular regions, it will be necessary to consult either a lawyer or a sport law textbook applicable to that region. Furthermore, not every context in which the law affects sports people or the operation of sport will be considered. There is no evaluation, for example, of the application of tax law to sports people or to the regulation of online gambling. Rather the focus is on those areas where, in the author’s view, either the operation of the law has been affected by the fact that it is sport that is at issue or, conversely, those situations where the way in which sport operates has been significantly affected by the law.

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LAW AND THE INTERNAL GOVERNANCE OF SPORT As was mentioned above, in many jurisdictions, courts and lawmakers are content to allow sport to be self-regulating as far as possible, seeing this as the best way to promote the well-being of that sport and of all the values that it brings to society. On the other hand, sport governing bodies have a significant capacity to injure the rights of people because of the power they have in a ‘unitary governing body’ system. So for this reason, the question of whether and when the law will ‘step in’ is based on a balance between, on the one hand, the need to protect the rights of parties and, on the other, the characteristic deference that lawmakers display to the interests of sport in being self-regulating. So far as this balance is concerned, it seems clear that only some of the ‘rules of sport’ will actually be susceptible to legal challenge. Perhaps the clearest way of explaining this is to say that sport is governed by a vast number of different regulations. a

b

c

d

First, there are the playing rules, from the forward pass rule in rugby, to the offside rule in soccer, to the rule that, in order to win a set in tennis one must win at least six games and be two clear games ahead. It is inconceivable that these could be the subject of legal challenge, even though they, more than any other regulation, dominate how the sport is played and mark out winners from losers. Second, there are the safety rules such as the high tackle rule in rugby, for example. As will be seen later, it is possible for someone who is injured in sport to sue because a player breached a safety rule, because a referee didn’t apply it properly or because a governing body was insufficiently careful in designing the rule. Third, there are what might be termed the corporate regulations applying to the business of sport, which are also considered later, virtually all of which can be legally challenged. But for now what is important are the regulations that govern the relationship between the player and the governing body; administrative regulations concerning matters such as admission to the sport and discipline within it. When can these be the subject of legal challenge?

As was mentioned above, it seems clear that the terms of a governing body’s rule book will become the terms of a contract between it and its members. Theoretically, therefore, whenever it breaches these terms (e.g. by not applying a rule properly) then it may be legally challenged for doing so. In addition, however, there may be an implied contractual term that the governing body act in accordance with fair procedures in making its decisions (and in the alternative, the player may rely on constitutional or human rights to fair procedures in bringing such a challenge). So, for example, if a player was banned for two years for a disciplinary infraction but was not given a hearing or was not allowed to present his or her case, then it could be strongly argued that this would represent a breach of his or her right to fair procedures and could be legally challenged. Finally, as was discussed, the reality is that, because of the arbitration clause contained in most sport governing bodies’ rule books, such a challenge would have to be brought by means of arbitration.

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ANTI- DOPING RULES A particularly important example of this kind of rule is that which pertains to doping. It is important because of the unique impact that a doping allegation can have for a sports person in that (1) a finding that a doping offence has occurred will generate, usually, a mandatory period of suspension from taking part in any sporting event for 2–4 years and (2) because there is nothing that will tarnish the reputation of a sports person in the way that a finding that he or she was guilty of a doping offence will. Doping has been around for centuries, but it can be conjectured that it only became a really widespread problem in sport following the outbreak of the Cold War and it only became something in respect of which sport governing bodies, and especially the IOC, became interested some time after that. High profile events like Ben Johnson’s positive drugs test at the 1988 Olympic Games and the debacle surrounding the 1998 Tour de France where widespread doping was discovered to have taken place led to renewed calls for a more effective way of dealing with doping, not least because the ‘fight against doping’ at the time was notoriously fractured. Thus the result in 1999 was the creation of WADA, as previously noted. WADA has had four major impacts in so far as anti-doping policy is concerned. In the first place it has ensured that all governing bodies and national sport councils actually have a concerted and effective anti-doping policy on their books. Second, it has ensured that there is now a genuinely effective level of testing in place including, pivotally, out of competition testing. Third, it has produced a World Anti-Doping Code (of which the current version dates from 2015), which creates a unified policy on issues such as the definition of doping, the process for testing and for dealing with a positive test and the sanction for a positive test. Finally, it has created international standards in various areas, including the list of banned substances in any given year and the accreditation of laboratories to test for doping. It is this code and these standards that form the basis for the anti-doping policies appended to the rule books of most sport governing bodies. The rules themselves are extremely strict and, in certain areas, very controversial. So, for example, the code contains a large number of doping offences including trafficking, evading doping control, failure to provide details of where one is, administering to young people and so on, but the most basic one is committed if one tests positive for the presence of a banned substance in one’s system. Naturally this allows for the possibility that someone might fall foul of anti-doping rules when he or she ingested a banned substance by accident, and quite clearly this has happened. Given the severity of the sanctions for doping, it may seem unfair that someone could lose his or her livelihood and reputation for accidentally ingesting a banned substance that might be contained in medication or in a dietary supplement or whatever. Second, the sanctions for doping are extremely tough, depending on circumstances; they will typically involve either a two or four year suspension from competition, which, in the case of a professional athlete, may well mean the end of their career. It is perhaps difficult to see why someone who intentionally cheats in another context (someone who dives to win a penalty in a football match, for example, thereby setting a bad example to onlookers and also actually distorting the result of the contest) may receive no more than a reprimand or a yellow card, but a player who may have had no intention to cheat but,

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inexplicably, has a banned substance in their system will face a two year ban. Nonetheless, anti-doping laws have a huge moral force behind them and have been upheld before a number of courts and, most importantly, CAS. Furthermore, because of the seriousness of what is at stake, the Code provides for a very strict investigation process and also ensures that there are strict rules for how a doping hearing is to proceed.

RIGHTS AND EQUALITY Finally and briefly, it is important to remember that athletes, even those who are so prominently in the public limelight that members of the public appear to think that they have ownership of them, are still human beings and, consequently, have human and constitutional rights that must be respected by governing bodies. These include rights like the right to fair procedures, the right to privacy and, where professional sport is concerned, the right to earn a livelihood. It is not possible in this chapter to consider all of the contexts in which human rights and sport collide, but it is worth briefly noting that the right to equality is one that generates particular concerns for sport. Sport after all is an inherently unequal thing in that, in general, it favours men over women, the able bodied over the disabled and, potentially, those who are affluent enough to afford expensive sport technology over those who are not. Indeed genetic research suggests that it may even favour people of specific ethnicities over others. In other words, as a societal construct it strikes against one of the most basic values of society and this necessarily creates an obligation for sport governing bodies positively to advantage those sections of society that might be disadvantaged by the way in which sport, especially sport the business, works; for example, by creating specific competitions for women or the disabled.

CRIMINAL LAW The designation of an act as a crime is a statement by the law that that act, either because of its harmful impact or its moral wrongness (or more probably both), is so serious that as a matter of policy, the state should be involved in prosecuting it. In this respect it is different from a tort (considered next), which is a civil wrong, and where it is up to a victim (plaintiff ) to sue the perpetrator (defendant) for harm suffered. Significantly, moreover, an act can simultaneously be a crime and a tort. Thus if attacked in a pub, or possibly on a sport field, the attacker may be criminally prosecuted by the state and also sued in tort by the victim. There are a number of contexts in which sport interacts with criminal law. Some of these will not be dealt with here in any detail. Thus, for example, corruption, match fixing, illegal gambling and so on may well involve criminal offences, as well as leading to sanctions from sport governing bodies. Furthermore, in some countries use of the type of drugs that are banned in sport is also a crime. And there will be miscellaneous things loosely connected with sport (though in violation of the policy of sport governing bodies) that will also be criminal such as cruelty to animals, abuse of children, spectator violence or anti-social behaviour and so on.

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More significant for present purposes, is the question of whether and when activity on the field of play will violate the criminal law, especially laws against criminal assault. Two issues arise here.

THE LEGALITY OF SPORT In the first place it is worth noting that the whole legality of contact sport is something of an exception to normal criminal law principles. What is involved, after all, is a situation (a) where people deliberately try to hurt others and (b) where it is known that catastrophic injuries do, in fact, occur as a result. This is true of contact sports like rugby, but at least in this context the theoretical objective of someone putting in a very hard tackle on an opponent is to stop him or her from making headway with the ball. But it is even more true of sports like boxing or MMA, where rendering one’s opponent unconscious or in such physical pain that they cannot continue is the most effective way of winning the contest. This behaviour would never be tolerated if it happened in a public street where a few people might notice, so why should it be tolerated in sport where there might be thousands of impressionable observers? It has been suggested that the difference between the two scenarios is that in the sporting context participants consent to any ‘assaults’ that occur as a result of the playing of the game. But this is not a satisfactory explanation in that it is a widely accepted legal principle that if something is (for policy reasons) deemed to be a crime, then it does not cease to be a crime because the victim consents to it (one cannot ‘consent’, for example, to being cannibalised). Perhaps the better explanation is that, unlike cannibalism, sport is legal because lawmakers recognise that sport is a ‘good thing’. In other words, it is believed that, as a matter of public policy, sport should be legal. On the other hand many people will wonder what is good about sports like boxing or MMA, which glorify the infliction of pain by one person on another.

WHEN WILL ACTION ON THE FIELD OF PLAY BE CRIMINAL? Whatever the justifications for sport, it can be concluded that its legality is not in question (and as was noted above, this is one of the reasons why it is so critical to have one’s activity deemed to be a sport). But this does not mean that everything that happens on a sport field must also be legal. Theoretically, the fact that something is within the rules of the game does not necessarily mean that it is legal (in that the terms of the criminal law cannot be set by a private organisation like a sport governing body). In practice, however, it is inconceivable that behaviour within the rules of the game will be criminal, and it is highly unlikely that behaviour which is outside the rules but is so common that it represents part of what commentators have termed the ‘playing culture’ of sport (an accidental high tackle in rugby, for example) would be criminally prosecuted. In essence the approach of the law appears to be that if sport is itself lawful as a matter of policy, the same policy would suggest that the law should not seek to inhibit the unfettered playing

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of that sport. In other words, a rugby player should be allowed to focus on scoring tries and preventing opponents from doing the same, and should not have to have one eye on the possibility that if he attempts to tackle an opponent and makes a mistake this could lead to him facing criminal prosecution. As a result it may confidently be suggested that it is only when an action is completely removed from the playing of the game, such as an off the ball punch, that it could and might be criminally prosecuted (although realistically very few such actions will be the subject of prosecutions). This seems appropriate in that deeming an act to be a crime is the ultimate statement from society that it is socially and morally unacceptable. Thus as the English Court of Appeal suggested in R v Barnes, there are three ways of responding to on-field incidents depending on the seriousness of the incident in question. At the lowest level it should be dealt with by the sport governing body; at the next it should be dealt with through a civil action taken by a victim; and it is only at the highest levels of seriousness that the act should warrant criminal prosecution.

TORT LAW As was mentioned above, a tort is a civil wrong whereby an injured party (the plaintiff ) sues the person or entity that caused his or her harm (the defendant). There are any numbers of torts protecting the various rights of citizens; thus the right to reputation is protected by the tort of defamation and the right to the peaceful enjoyment of their property is protected by the tort of nuisance. In a sporting context the tort of trespass to the person (assault and battery) might have application. For present purposes, though, the most significant tort is the tort of negligence. This tort arises where one party owes another a duty of care, breaches the required standard of care by acting unreasonably in the circumstances (the definition of negligence) and, thereby, causes harm to that person. There are of course many manners of circumstances in life where a person’s negligence can cause harm to someone else: for example, if a person provides clients with deficient legal advice or medical care, or employees are provided with an unsafe system of work. Thus the tort of negligence is an amorphous one covering a great deal of behaviour. In so far as the organisation of sport is concerned, what this means is that, in a sporting context, anyone who acts unreasonably and causes harm to another person in circumstances where they owed a duty not to commit the harmful act has committed the tort. The italicised section of the previous sentence is important. A batsman in a cricket match can hit the ball as hard as he wants and without caring what direction he is hitting it in and, if he hits an opposing fielder, his fellow batsman or an umpire, he will not be guilty of negligence because he has no duty not to hit the ball in such unrestrained fashion. But of course there will be many circumstances in which the tort can be committed in a sporting context and perhaps the easiest way to outline these is by reference to the categories of people who might be defendants in cases of this kind. In the first place a participant in a sport event could commit the tort. Theoretically this could arise whenever he or she breaches the rules of the game and thus causes injury to another participant. Realistically, though, liability will tend only to be imposed where

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there is a particularly egregious or unusual breach of the rules. The exception here is the game of golf, where the ‘rules’ of the game are all playing rather than safety rules and hence where the liability of a golfer who injures another will be gauged by reference to commonsense standards having regard to what happened. Alternatively the participant could cause injury to a spectator: for example, by negligently whacking a tennis ball into the crowd in a fit of rage. Second, a referee could commit the tort of negligence. It seems clear that courts would be resistant to a situation where a referee could be sued for negligently applying playing rules: for example, by failing to award a goal that decided the result of a match. But in various jurisdictions, courts have been prepared to impose liability on referees for failing to enforce safety rules: for example, the safety aspects of scrummaging rules in rugby, as a result of which players have been catastrophically injured. Third, coaches and sports teachers can commit the tort, generally in circumstances where, as a result of their negligence, players under their control have become injured. Fourth, it is a matter of controversy as to whether sport governing bodies can be sued for negligence on the basis that the safety rules of sport that they have designed are inadequate to protect the safety and well-being of players. Fifth, the organisers of sport events can potentially be sued by participants or spectators if they have suffered injury as a result of negligence within the organisational framework: for example, in circumstances where, as a result of the supporters being placed too close to the action of, for instance, a motor racing rally, a spectator is hit by a car whose driver has lost control of the vehicle. Finally, the owner or occupier of a sport stadium can be sued if someone inside or outside the stadium suffers harm as a result of either the state of the premises or what is occurring on the premises. In the former situation a spectator might be injured because of a defective stadium wall. In the latter a passer-by might be hit by a cricket ball hit out of a cricket stadium. In addition someone who lives beside a stadium where a sport event is ongoing might sue for the tort of nuisance if his or her ability to enjoy his or her property is significantly impaired as a result of the sport event. Obviously, it is not the case that every time any of the above incidents occur, an injured party can sue for negligence but merely that these are examples of the kind of incidents that generate legal liability. The experience in many countries, moreover, is that the courts, cognisant of the public policy benefits connected with sport, will be extremely reluctant to allow liability to be imposed for a ‘sporting tort’ save in the most extreme circumstances.

INTELLECTUAL PROPERTY LAW AND AMBUSH MARKETING There are various different types of property rights that someone can enjoy, one of which is an ‘intellectual property’ right. As the name suggests, this relates to an entitlement over something that is valuable but which, at the same time, is not tangible or solid like a house or a car or a piece of jewellery. What is being discussed is, in essence, something that is valuable but is the product of the creation of one’s mind such as literary or artistic works, inventions, symbols, designs, names and so on.

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These are extraordinarily important in so far as the business of sport is concerned, because there is such a huge amount of money to be made from the desire of a range of people from supporters to sponsors to be associated with a sporting entity, be it a player, a club or an event. These people can be distinguished from those who simply wish to view an event and who will pay for the privilege as a matter of contract law, as discussed below. Rather these people want to be associated with the entity in different ways. Perhaps they are a company that wants a superstar like David Beckham to feature in advertisements for and to endorse their product. Perhaps they are a supporter of Real Madrid FC or of the Australian rugby team who wish to buy merchandise connected with the team they support, including replica kits to wear. Perhaps they are a company that wants to sponsor the Olympic Games and have its name mentioned in connection with that huge event. The connection between all these different kinds of party is that they want, at some level, to connect with the image of a sporting entity. For this reason it goes without saying that the image of any sporting entity can be exceptionally valuable in the sense that there is a lot of money to be made from it. In some countries, for example many continental European countries, this is relatively unproblematic in that the law recognises a right to an image. Similarly in the US, there is what is termed a tort of appropriation of personality that covers situations of this kind. On the other hand, in other countries, like Australia and the UK, the law has been reluctant to recognise a right to one’s image and a right over an event. This means that lawyers need to devise circuitous means to protect the value of a sporting image. Intellectual property law is of value here. So, for example, it is possible to secure a trademark in a distinguishing mark belonging to the mark holder that prohibits other people using that mark to facilitate the selling of their goods. As a result, a great many sporting brands, images, club crests and so on have been trademarked. Similarly, it is possible to secure a copyright in a design that prohibits anyone other than the copyright holder from using that design for any purpose and, as a result, again many iconic sporting designs from the Manchester United club crest to the Olympic rings are protected by copyright. Finally, in both Australia and England the courts have recognised the possibility that where someone uses a celebrity’s image in circumstances that create an implication that the celebrity is endorsing them or their product, then they may be guilty of what is known as ‘passing off ’; that is, passing off their product as if it had the celebrity’s endorsement. The problem is that, whereas these protections are reasonably effective, nonetheless there will be many ways in which a company can link to a sport event that is not prohibited by intellectual property law. The making of this kind of link is known as ambush marketing and will arise in a diverse range of circumstances ranging from where a company hands out free t-shirts to entrants into a stadium where an event will take place, to where a company runs an advertising campaign in the lead-up to a major sport event that links their product not with the event but rather the relevant sport. The link between them all is that, in the minds of the general public, including those viewing the event on television, a link is drawn between the event and the product of the ‘ambusher’. This is deeply concerning for sport event organisers because they want to attract sponsors who will pay large sums of money to be associated with the event, but if companies know that they can achieve the same level of association with the event by ambush marketing as by sponsoring, then it makes little financial sense to pay the sponsor fee.

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As a result of this, there has been a range of efforts to try to deal with ambush marketing. Certainly for major sport events such as the Olympic Games, it is now almost inevitable that the host country will pass bespoke legislation rendering such ambush marketing a criminal offence. The effectiveness of such laws is, however, uncertain.

CONTRACT LAW A contract is a binding legal agreement and it need hardly be said that professional sport involves a huge number of different contracts. Every time a fee is paid to enter a sport stadium a contract is entered into (and the ticket should contain the entry terms and conditions). Every time a player is paid money by the club that employs him or her, this is considered a contract. Increasingly, contracts may not merely provide for the fact that the player will play for that club, but also permit the club to take some measure of control over the player’s so-called image rights. And at a higher end of the scale, contracts will govern sponsorship agreements, endorsement agreements and television agreements. This is too big an issue to cover in any detail in this chapter.

THE RIGHTS OF EMPLOYEES AND SERVICE PROVIDERS Where the business of sport is concerned, athletes can properly be characterised as either employees, if they are employed by a club, or service providers. In a normal scenario, however, where an employee has a contract with an employer the interests of that employee are protected by any number of laws. In particular, there can be no question of that employee being ‘sold’ to another employee. Indeed such an idea would be repulsive to many as it would hark back to the days of slavery. It is curious, therefore, that such a notion is common within professional sport. From the perspective of European sport, until comparatively recently, a player could be sold even after the conclusion of his or her employment contract and his or her former club could refuse to let him sign for a new club if they did not pay the requisite asking fee. Again from a European perspective, this all changed with the decision of the Court of Justice of the European Union in the colloquially famous case of Union Royale Belge des Sociétés de Football Association ASBL v. Bosman. In this case, using the EU concept of the ‘free movement of workers’, the European Court of Justice struck down two rules that had been inherent to European, and global, soccer: namely (1) that players could be sold at the end of their contract and could be refused permission to play with another club if they were not sold and (2) that clubs competing in pan-European football competitions were required to field a certain number of players of the nationality of the league from which those clubs came. European law thus strongly protects the rights of players who wish to travel within the territory of the European Union to ply their trades. In particular, by designating sport players as employees or workers, the Bosman decision should surely make it clear that this is a context, like any other, in which the normal rules of employment law should apply.

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Having said that, it is arguable that in a number of areas the normal rules of labour and employment law are routinely breached by the way in which professional sport operates. Once again, however, the point is worth making that courts, lawmakers and the general public, convinced by the concept of sport as something special, tend to overlook such issues.

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CHAPTER 17

Sport event management Insun Sunny Lee and Graham Brown

Chapter objectives After completing this chapter you should be able to: UÊ `iÃVÀˆLiÊ̅iÊ`ˆvviÀi˜ÌÊV>ÃÈwV>̈œ˜ÊœvÊëœÀÌÊiÛi˜ÌÃÆ UÊ Õ˜`iÀÃÌ>˜`Ê̅iʓœÌˆÛ>̈œ˜ÃʜvÊëœÀÌÊiÛi˜ÌÊëiVÌ>̜ÀÃÊ>˜`Ê«>À̈Vˆ«>˜ÌÃÆ UÊ `ˆÃVÕÃÃÊ̅iÊëiVˆ>Ê˜>ÌÕÀiʜvÊëœÀÌÊiÛi˜ÌÃÊ̅>ÌÊÅ>«iÃÊëœÀÌÊiÛi˜ÌÊiÝ«iÀˆi˜ViÃÆ UÊ `iÃVÀˆLiÊiVœ˜œ“ˆV]ÊÜVˆ>Ê>˜`Êi˜ÛˆÀœ˜“i˜Ì>Êˆ“«>VÌÃʜvÊëœÀÌÊiÛi˜Ìð

Key Terms: Sport Events; Sport Event Experience; Sport Event Motivation; Sport Event Impacts

INTRODUCTION Sport events are an important and growing event sector, encompassing the full spectrum from community sport events to international sport competitions. They offer a range of experiences to event spectators and participants, and generate various impacts on the community. As the types and uses of sport events have grown, sport events have become more complex and require diverse skills from event management, from operation skills to strategic managerial knowledge, to properly manage a sport event. This chapter provides a broad overview of sport events in terms of the four topics of sport event management. First, the classification of sport events by size and sporting and temporal characteristics is discussed. The second and third topics are the motivations of sport event spectators and participants, and the special nature of sport events that shapes their experiences. Lastly, a range of impacts of sport events is discussed to illustrate the broader role of sport events for community, economic and social development.

SPORT EVENT CLASSIFICATION Sport events take many forms. There is no commonly agreed, strict classification that can be used to describe and characterise sport events. However, there are classifications that

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are commonly used. The classification of events is important as different types of sport events produce their own unique issues related to planning, impacts and management. Several classifications are outlined below.

Size

Scale of impacts

Events can be classified by size. The size varies from competitions in small communities to spectacular sport events that attract universal attention. Although the definitions of these subdivisions are often subjective, this classification is based on the scale of impacts in terms of attendance, media profile, infrastructure, costs and benefits (see Figure 17.1). A mega event is defined as an event that attracts one million visitors or more, costs $500 million or more to stage and garners worldwide media interest as a must see event (Getz, 2005). Examples of mega sport events are the Olympic Games, the Commonwealth Games and the FIFA World Cup. Cities around the world are increasingly hosting high profile events as a means to achieve strategic objectives. Such events can be used as a catalyst to attract event tourists, to stimulate economic growth, to build or strengthen a destination brand/image through media attention and to have the legacy of facilities and infrastructures. Although the difficulties and risks involved in organising and managing mega events have received attention in recent years (Chappelet & Parent, 2015), there are still many cities bidding to host mega sport events. Sports are becoming an important part of the urban economy along the same lines as culture and tourism, and cities try to develop their sport industry through hosting mega sport events. While some cities want to host a mega event mainly to upgrade their national and international position, and for economic and physical regeneration, some of the leading cities of the world (e.g. London 2012 Olympics Games) bid for a mega event to secure their dominance as world-leading centres of economic activity, culture, sport and tourism (Shoval, 2002).

Local/community

Major

Hallmark

Mega-event

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Hallmark events refer to those ‘events that become so identified with the spirit or ethos of a town, city or region that they become synonymous with the name of the place, and gain widespread recognition and awareness’ (Allen, O’Toole, Harris & McDonnell, 2011, p. 13). Such events, which are identified with the very character of these places and their citizens, bring huge tourist dollars, a strong sense of local pride and international recognition. Hallmark events are an important component of destination marketing. For example, the event and destination can become inextricably linked, such as the Tennis Championships at Wimbledon. Hallmark events can even be related to whole countries rather than just cities or regions, with one example being the Tour de France. Major events refer to those events that ‘are capable, by their scale and media interest, of attracting significant visitor numbers, media coverage and economic benefits’ (Allen et al., 2011, p. 14). Many top international sporting championships fit into this category and are increasingly being sought after and bid for by national sporting organisations and governments. UK Sport (1999, p. 4) considers that three elements are required for an event to be classed as a major sporting event: s s s

)T MUST INVOLVE COMPETITION BETWEEN TEAMS ANDOR INDIVIDUALS REPRESENTING A number of nations. )TMUSTATTRACTSIGNIlCANTPUBLICINTERESTNATIONALLYANDINTERNATIONALLYTHROUGHSPECtator attendance and media coverage. )T MUST BE OF INTERNATIONAL SIGNIlCANCE TO THE SPORT CONCERNED AND FEATURE PROMInently on its international calendar.

Local/community events usually operate using existing infrastructures and do not require huge investments of public and private funds to stage. They are more manageable than larger-scale events that frequently result in huge debts for host communities, and might bring in more positive impacts on host communities (Higham, 1999). Local and community sport events produce a range of benefits, including enhancing pride in the community, strengthening a feeling of belonging and celebrating the subculture associated with a particular sport activity. They can also help to expose people to new experiences, and encourage participation in sport activities. Professional sport leagues run by national, state and local sport organisations fit into this category, as well as charity fundraising events that are a growing subsection of community sport events. These charity fundraising events seek to increase the profile and raise funds for their respective charities through sport participation.

Sporting characteristics Sport events can be classified by sporting characteristics (Chappelet & Parent, 2015). An event can include single or several sports. For events using multiple venues to serve multiple sport competitions, special attention must be placed on coordination across the various venues to ensure the event is presented as a unified whole and to avoid any decision making bottlenecks and communication problems. Accessibility for event spectators and co-workers between the venues is another factor to consider when organising such events. Elite competition must be distinguished from mass participation sport events.

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Competition of professional sport players is a core product of many sport events, and spectators attend the event to watch the competition and support a particular player or team. In contrast, mass participation sport events are participatory sport events that attract event participation. This kind of sport event offers a participatory activity as a core product of the event. In this context, spectators who are passive consumers of an event are different from event participants who are active event consumers in terms of motives to attend and their behaviour and experiences at the event.

Temporal characteristics Another important classification of sport events is temporal characteristics of the event, such as the duration and periodicity (Chappelet & Parent, 2015). Regularly scheduled events at one destination require different event planning and management compared to that needed for one-off events. For example, the key tasks of regularly scheduled events at one destination would involve managing loyal event attendees and organising innovative event programmes to increase re-visitation. On the other hand, for those events that move from one destination to another through a formal bid, for instance championships and mega events such as the Olympic Games, knowledge management and transfer processes would be a key task as well as the bid process (Parent, MacDonald & Goulet, 2014). The next host destination can reduce potential problems and mistakes, and successfully plan the event by learning from the knowledge acquired by the previous organisation through its experiences.

MOTIVES OF SPORT EVENT SPECTATORS AND PARTICIPANTS In the event context, each person has different experiences at the same event as personal meanings that are attached to event experiences relate directly to personal needs, interests and motivations. Understanding motivations is one of the ways to explore people’s personal meanings attached to event experiences. Motivation can be described as ‘the driving force within individuals that impels them to action’ (Schiffman, O’Cass, Paladino & Carlson, 2014, p. 74). Event attendees have particular reasons and motivations to take part in certain activities that are undertaken in particular settings at the event. This is so they can gain their desired experiences, leading onto the desired outcomes and benefits for them. Therefore, by having a good understanding of their markets’ motivations, event organisers can manage the event so that it reflects the markets’ needs and wants. A large body of literature has been developed around event motivations, and the escaping and seeking motivation theory (Iso-Ahola, 1980) and the push and pull motives (Dann, 1981) have often been adopted to explain attendees’ motives for attending events in a range of different contexts. s

4HE ESCAPING AND SEEKING MOTIVATION THEORY ASSERTS THAT SEEKING AND ESCAPISM ARE major factors influencing decision making in recreational activity. People are seeking to find personal and interpersonal rewards and hoping to escape aspects of personal and interpersonal environments that bother them. For example, people seek events

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as an opportunity to escape from their personal problems (personal escape), to experience feelings of mastery and excitement (personal seeking), getting away from the usual demands of life (interpersonal escape) and to interact with friends and family (interpersonal seeking). 0USHANDPULLMOTIVESAREALSOCOMMONLYUSEDWHENDISCUSSINGMOTIVATIONWITHIN the context of events. While push factors as internal forces determine the desire to attend an event, pull factors are external factors that determine the choice of event. For example, push motives would be the need for relaxation and socialisation, and pull motives the uniqueness of events such as the presence of famous players and the prestige of the event.

Although the escaping and seeking motivation theory and the push and pull motives are useful to understand general event motivations, Funk, Filo, Beaton and Pritchard (2009, p. 129) identified specific motives of spectators in the context of sport events, which can be classified into five categories: Socialisation, Performance, Excitement, Esteem and Diversion (SPEED). s

s

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3OCIALISATIONISRELATEDTOTHEINTERPERSONALASPECT)TREPRESENTSADESIREFORSOCIABility and the extent to which a person perceives attending a sport event as an opportunity to interact with friends, family and other spectators. It includes group affiliation, family bonding, friend bonding, social interaction and camaraderie. 0ERFORMANCERELATESTOTHEEXTENTTOWHICHANINDIVIDUALBELIEVESTHATSPORTEVENTS provide excellence, beauty and creativity of athletic performance. Individuals are motivated to seek a sport event experience due to opportunities to enjoy the grace, skill and artistry of athletic movement. %XCITEMENT REPRESENTS THE EXTENT TO WHICH A SPORT EVENT IS PERCEIVED AS PROVIDING stimulation through the consumption experience. Individuals are motivated to seek a sport event experience due to opportunities for mental action and exploration from the atmospheric conditions created by the uncertainty of participation and competition, and the spectacle of associated activities. %STEEMREmECTSTHEEXTENTTOWHICHANINDIVIDUALPERCEIVESATTENDINGASPORTEVENT as providing an opportunity for vicarious achievement. Esteem relates closely to motives of self-esteem, group affiliation achievement, community support and vicarious achievement. $IVERSION REmECTS THE EXTENT TO WHICH A PERSON PERCEIVES ATTENDING A SPORT EVENT provides an opportunity to escape the hassles and normal routine of everyday life. Diversion highlights motives of escape.

Although some of Funk et al.’s (2009) five motivations of sport spectators could be relevant to active sport event participants (i.e. amateur sport athletes such as marathon runners, mountain bikers, cyclists), active participants are likely to have different motives as the desired event experiences differ. As mass participation sport events have become increasingly popular over the past 10 years, not only in the total number of events, but also in the numbers of event participants, it is important to distinguish between them when understanding their motives. Benckendorff and Pearce (2012) discuss motives such as the need for self-development and self-actualisation and for transformative experiences

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as more influential to active participants as such events are often set to push the boundaries of personal abilities. The concept of the event travel career trajectory (Getz, 2008) is particularly helpful in understanding motives for active sport event participants. The event travel career trajectory suggests that people highly engaged in a sport are likely to develop event-specific travel careers as they become more highly involved, and event motivations change with respect to the level of engagement in a particular sport. It is argued that as involvement in a sport increases, an event travel career changes across six dimensions (see Table 17.1) that constitute a pattern of travel to sport events that clearly distinguish the highly involved from less involved event goers (Getz & Andersson, 2010).

SPORT EVENT EXPERIENCE In the event industry, the demand for creative event experiences is unquestionably increasing. Therefore, event managers must attempt to coordinate special, emotionally engaging and memorable experiences to accompany event programmes to deliver extraordinary experiences for the attendees and so ensure a sustainable competitive advantage for the event. Events can be seen as a created experience environment in which event attendees can have active dialogue and co-construct personalised experiences. Events are no longer a simple service or entertainment; they rather act as spaces for event attendees to have their own experiences within the event settings provided. The services and products that the event provides may be the same for all attendees, but attendees can construct different experiences and create different values from those experiences. Events as service product experiences consist of three elements (Lovelock, Patterson & Walker, 2004):

TABLE 17.1Ê Ûi˜ÌÊ̜ÕÀˆÃÌÊV>ÀiiÀÊÌÀ>iV̜ÀÞ

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THE core service and benefits that the customer experiences – for example, a sport competition; THEtangible ‘expected’ product – for example, the venue and seating; THE augmented product or additional features that differentiate an event from its competitors – for example, social and educational activities.

Traditional sport events such as the Olympics always incorporate ceremonies and festivals, and it has now become common to incorporate a programme of special events with the sport competition to create a sport festival with heightened appeal (Green, 2001). Many sport events provide social, educational and entertainment activities beyond the actual core product of the event (i.e. the sport competition) in the days surrounding the sport competition. For example, the Tour Down Under, an international professional road cycling event held in South Australia, presents six professional cycling race stages with a wide range of augmented activities such as recreational rides and street parties to attract a broad range of people. These expansions and augmentations provide a useful base for event promotions to broaden their appeal and to increase the number of attendees attracted to the event. It is recognised that the event experience itself cannot be perfectly designed, but it can be facilitated or constrained by producing a specific environment and providing opportunities for experiences specific to that event (Berridge, 2014). Event design is a planned and managed process based on specific understandings of the event objectives and desired experience outcomes. An understanding of the special nature of sport events that shapes event experiences would be useful in event design. Sport events temporarily create special spaces for liminal experiences that are different from everyday experiences. The notion of liminality was developed in the field of anthropology, in the ritual practice theory in particular, to explain the phases in the tribal ritual processes where an ambiguous state is created by participants (Turner, 1982). Event academics (Getz, 2007) acknowledge that event practices contain a liminal phenomenon as events temporarily create special spaces for event experiences that are different from everyday experiences and event visitors can experience the transient state, including communitas, during the event. Communitas, the temporary communal human relationship, is identified as one of the ambiguous states constructed through liminality (Turner, 1982). Communitas describes a special sense of togetherness that exists outside ordinary social structure; attendees have something very specific in common and build temporary relationships among themselves within the group. In the sport event context, the unique ethos associated with a particular sport such as distinctive dress, language and behaviour become acceptable as normal practices within a sport event space. Attendees are able to experience a transformation of the identity that exists in their daily life (Shipway & Jones, 2007) due to the liminality created by an event. This makes it possible to be involved more deeply and more intensively in a sport within the event space. According to the flow theory (Csikszentmihalyi & Csikszentmihalyi, 1988), people feel most happy when they are in a state of concentration with an activity and deeply involved in an enjoyable activity. Sport events have the capability of generating flow experiences through deep involvement, intense concentration and transcendence of self during the event period within the event setting away from their other commitments. Event attendees may undergo a variety of self-transcending experiences at an event that could

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lead to a sense of accomplishment or transformation. A sense of accomplishment, transformation and mastery (e.g. a challenge to abilities) have been identified as dominant motives particularly of sport event active participants such as amateur cyclists (Lamont & McKay, 2012). The engagement with an event can also generate a subculture in which individuals, with diverse social backgrounds, are gathered around the shared core values associated with a particular sport, creating communitas among attendees. A sense of camaraderie (Lamont & McKay, 2012) is also commonly mentioned as one of the factors that can make participants want to return to an event. Thus, the shared sport experiences at an event can increase the emotional intensity of links among participants and affirm the social identity in relation to the particular sport. Sport events present authentic experiences (Hinch & Higham, 2005) as they provide different experiences every time. This perceived authenticity is due to the uncertainty of outcomes, the role of athletic display, the kinaesthetic nature of sport activities and the tendency for strong engagement in sport. The authenticity of sport events makes ordinary space symbolic and valued, and inspires event attendees to build a leisure/sport career. Authentic experiences such as seeing athletes in the flesh, taking a direct part in the sport at a valued event space (e.g. a particular symbolic stadium) and having access to ‘behind the scenes’ (Lamont & McKay, 2012, p. 326), reinforce commitment to the sport activity and help build subcultural capital (Green & Jones, 2005). The perishable characteristic of events as a service experience also enhances authenticity. Even if an event is regularly staged, the event experiences of a specific event are only available at a specific time and cannot be experienced again (Getz, 2007). A particular occurrence of an event experience, such as a famous win by a favourite team, presents authentic personal stories that contribute to develop an individual’s sense of identity (Shipway & Jones, 2007). The behaviours of event attendees, such as purchasing event merchandise or wearing clothing that shows previous attendance at events, are associated with the authentic nature of events. Event merchandise can be used to display an association with a sport activity and event, held at a particular place and at a specific time. This may demonstrate the level of event involvement, linked to an event career, level of skill or knowledge and ability in relation to the specific sport. These behaviours allow participants to present their identity to others and develop their identity simultaneously.

IMPACTS OF SPORT EVENTS All events produce a range of both positive and negative impacts on their host communities. It is important for event managers to identify and monitor these impacts and manage them to achieve the best outcomes for all stakeholders, so that the event contributes positively to the community and economic and social development. The ‘triple bottom line’ approach is a popular tool to take into account the social and environmental impacts, as well as the economic impacts, which involves an analysis of the event impacts when deciding which events to support, or when evaluating the final outcomes of events. Evaluation of impacts of events has to consider not only short-term, tangible and direct impacts but also long-term, intangible and/or indirect impacts. A summary of possible positive and negative impacts of sport events is shown in Table 17.2.

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Impacts of events

Positive impacts

Negative impacts

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Due to the increase in the financial involvement of governments and corporations in sport events, economic impacts of events have been a primary concern of many stakeholders. The three main sources of economic impacts of events are (1) expenditure by visitors from outside the region, (2) capital expenditure on facilities required to conduct the event, and (3) expenditure incurred by event organisers and sponsors to stage the event (Jago & Dwyer, 2006). The first category is the tourism revenue generated by an event. Sport events attract a huge number of event tourists who visit the host city to attend an event from interstate or overseas. In addition to their event-related spending, for example event tickets, event tourists spend on accommodation, travel and goods and services in the host city. The growth in tourism and concentration of economic activity during the event, however, can create a displacement effect (Getz, 2007) that actually hurts local businesses. Local people may stay away from business areas due to eventrelated crowds and disturbance, and sometimes leave town during the event. Other types of tourists may avoid visiting the host city during an event due to inflated prices. To avoid the displacement effect, event leveraging business strategies should be formulated to help a variety of businesses in the community benefit. The second category is related to economic benefits generated when an event attracts new money into the host city from investments and government grants, and sponsorship

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in facilities, such as construction of event venues and infrastructures. Events can serve as a catalyst for accelerating investments in venues and infrastructures that would otherwise be needed. This generates a lot of construction and thereby stimulates employment growth. Mega sport events particularly generate huge benefits from the legacy of infrastructure and venues. Such a legacy might have a long-term benefit in generating new tourism demand and business. The infrastructural developments associated with an event, such as new hotels, transportation and other facilities that benefit tourism, lead to future tax gains. Events lead to more consumption of heavily taxed goods and services, as well as bringing new tourism revenue. The investments in infrastructure and venues should be carefully planned as they could affect the host community negatively. If a new venue was built primarily to host a mega sport event, it would impose higher taxation on residents for maintaining the under-utilised facilities after the event (Getz, 2007). Event legacy planning thus becomes an important element of sport event planning and management to avoid this issue and properly plan how to use the newly developed infrastructure and venues after the event. The last source of economic impacts is expenditure incurred for event operation, for example, equipment rental, venue rental, advertising, suppliers, utilities and other expenses related to day-to-day operations. To maximise these impacts, it is important to use local suppliers and products and employ local people in event operations so that the leakages are minimised and the income remains local. Multiplier analysis of economic impact (Mules & Dwyer, 2005) suggests that the new incomes generated by events are circulated through to other businesses and workers who supply those who first receive the spending, thus re-spending locally. Event stakeholders are no longer exclusively looking at the economic aspects of events. They are paying more attention to the social impacts that events generate for the host community and the strategies to maximise the social benefits. Social impacts of events are considered particularly important as they enhance community support towards staging an event and contribute to social capital and community development. Psychic income has relatively recently received attention as an important impact of events. Psychic income, defined as the emotional and psychological perceptions of local residents of an event (Crompton, 2004), encompasses increased connectedness and social bonding, community pride and community excitement, and a reduced sense of social alienation. The ability that sport events have to increase the permanent level of community interest in a particular sport has also been noted as this leads to greater participation, creating community health benefits (Brown, Lee, King & Shipway, 2015). The catalytic effects of the event on facilities or activities on the community’s well-being can be generated by the event (Dwyer, Mellor, Mistilis & Mules, 2000), for example, youth sport clinics, educational training programmes and philanthropic causes involving sport scholarships, youth, the elderly and the underprivileged. The quality of community life is enhanced through entertainment and recreation opportunities and the use of the new and improved sporting infrastructure. Careful planning needs to take place to reduce any disruption to community life, for example, noise and congestion, overcrowding, increased cost of living and possible conflicts between host and event tourists over resource use. The ability of events to generate media coverage provides an opportunity for the host cities to showcase what they have to offer and promote specific areas to national and

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international audiences. The increased awareness and improved profile of the host community is important to attract tourists and business investments in today’s highly competitive global market. Media management is essential to avoid any negative publicity about the event: for example, issues related to accidents or poor event management on the destination image. Sport events can have a major impact on the physical environment and ecological systems, especially those associated with construction projects. However, events increasingly wish to be associated with positive environmental practices. Some of the attempts in this regard include waste reduction, energy efficiency, recycling and the use of public transport and local suppliers. Some events trigger private and public investment in urban transformation and renewal to include improved appearance through streetscape beautification, rehabilitation or the creation of green spaces (Mules & Dwyer, 2005). For example, the America’s Cup in Auckland in 2000 and 2003 has transformed the Auckland waterfront and left a legacy of an upmarket restaurant precinct (Allen et al., 2011).

Case study: Olympic cities – making key place decisions /…ˆÃÊV>ÃiÊÃÌÕ`ÞʈÃÊ>LœÕÌÊ̅iÊ"Þ“«ˆVÊ>“iðÊÌÊ`À>ÜÃʜ˜Ê̅iÊiÝ«iÀˆi˜ViÃʜvÊ>ʘՓLiÀʜvÊ …œÃÌÊVˆÌˆiÃÊ̜Ê`ˆÃVÕÃÃÊ̅iʈ“«œÀÌ>˜Viʜvʓ>Žˆ˜}ÊÜi‡Êˆ˜vœÀ“i`Ê«>ViÊ`iVˆÃˆœ˜ÃÊ>ÌÊ`ˆvviÀi˜ÌÊ Ã«>̈>ÊÃV>ið Selecting the host city *ÀˆœÀÊ̜ÊÃÕL“ˆÌ̈˜}Ê>ÊLˆ`Ê̜ʅœÃÌÊ̅iÊ"Þ“«ˆVÊ>“iÃ]Ê>ÊVœÕ˜ÌÀÞʓÕÃÌÊÃiiVÌÊ>ÊVˆÌÞÊ̅>ÌʈÃÊ Vœ˜Ãˆ`iÀi`Ê̜ÊLiÊ̅iʓœÃÌÊÃՈÌ>LiÊ̜ÊÃÌ>}iÊ̅iÊVœ“«iÝʓi}>ÊiÛi˜ÌÊ>˜`Ê̜ʅ>ÛiÊ̅iÊLiÃÌÊ V…>˜ViÊ œvÊ Li>̈˜}Ê œÌ…iÀÊ V>˜`ˆ`>ÌiÊ VˆÌˆiÃ°Ê /…ˆÃÊ `iVˆÃˆœ˜Ê ܈Ê LiÊ “>`iÊ LÞÊ Ì…iÊ >̈œ˜>Ê "Þ“«ˆVÊ œ““ˆÌÌiiÊ­ " ®Êˆ˜ÊVœ˜ÃՏÌ>̈œ˜Ê܈̅ÊVˆÌÞ]ÊÃÌ>ÌiÊ>˜`ʘ>̈œ˜>Ê}œÛiÀ˜“i˜ÌðÊÌʈÃÊ ˆ“«œÀÌ>˜ÌÊ vœÀÊ Ì…iÊ Lˆ`Ê ÌœÊ LiÊ ÃÕ««œÀÌi`Ê LÞÊ «ÀˆÛ>ÌiÊ œÀ}>˜ˆÃ>̈œ˜ÃÊ ÃÕV…Ê >ÃÊ …œÌiÃÊ >˜`Ê >ˆÀ‡ ˆ˜iÃ]Ê>˜`Ê̅iÊVˆÌÞÊ̅>ÌʈÃÊÃiiVÌi`Ê܈Ê«ÀiÃi˜Ìʘ>̈œ˜>]ʘœÌʍÕÃÌʏœV>]ʜLiV̈ÛiÃ°Ê iˆˆ˜}½ÃÊ ÃÕVViÃÃvՏÊLˆ`Ê̜ʅœÃÌÊ̅iÊÓäänÊ>“iÃʓ>ÀŽi`Ê̅iÊ>ÀÀˆÛ>ÊœvÊ …ˆ˜>ʜ˜Ê̅iÊܜÀ`ÊÃÌ>}iÊ ­ ÀœÜ˜ÊEÊÕ>˜}]ÊÓä£x®Ê>˜`Ê̅iÊ«>˜Ê̜ÊVœ˜ÃÌÀÕVÌÊΣʘiÜÊÃÌ>`ˆÕ“ÃÊÜ>ÃÊÀi}>À`i`Ê>ÃÊ>˜Ê ¼>ÀV…ˆÌiVÌÕÀ>Ê>˜}Õ>}iÊ̜ʘ>ÀÀ>Ìiʘ>̈œ˜>Ê>“LˆÌˆœ˜Ã½Ê­,i˜]ÊÓään]Ê«°Ê£Çx®°Ê/…iÊVˆÌÞÊ̅>ÌÊ is selected will compete against cities representing other countries and each will be iÛ>Õ>Ìi`ÊLÞÊ̅iʘÌiÀ˜>̈œ˜>Ê"Þ“«ˆVÊ œ““ˆÌÌiiÊ­" ®°Ê/…iÊ" ½ÃÊiÛ>Õ>̈œ˜Ê«ÀœViÃÃÊ ÀiµÕˆÀiÃÊV>˜`ˆ`>ÌiÊVˆÌˆiÃÊ̜ʫÀœVii`Ê̅ÀœÕ}…Ê̅ÀiiÊÃÌ>}iÃÊ­"Þ“«ˆVÃ]ÊÓä£È®\ UÊ -Ì>}iÊ£\Ê*ÀœÛˆ`ˆ˜}Ê̅iˆÀÊ>“iÃÊۈȜ˜]ÊVœ˜Vi«ÌÊ>˜`ʏi}>VÞÊ«>˜Ã° UÊ -Ì>}iÊÓ\Ê i“œ˜ÃÌÀ>̈˜}Ê̅>ÌÊ̅iÞʅ>ÛiÊ̅iʘiViÃÃ>ÀÞʏi}>Ê>˜`Êw˜>˜Vˆ>Ê“iV…>˜ˆÃ“ÃÊ ˆ˜Ê«>ViÊ̜ʅœÃÌÊ̅iÊ"Þ“«ˆVÊ>“ið UÊ -Ì>}iÊÎ\Ê iÃVÀˆLˆ˜}ʜ«iÀ>̈œ˜>Ê«À>V̈ViÃÊ̜Êi˜ÃÕÀiÊ̅>ÌÊ̅iÊ>“iÃÊV>˜ÊLiÊ`iˆÛiÀi`Ê ÃÕVViÃÃvՏÞÊ >˜`Ê Ì…>ÌÊ Ì…iÞÊ ÜˆÊ VÀi>ÌiÊ >Ê ÃÕÃÌ>ˆ˜>LiÊ i}>VÞ°Ê /…iÊ iÝ«iÀˆi˜ViÃÊ Ì…>ÌÊ ÜˆÊ LiÊ œvviÀi`Ê ÌœÊ >Ê ÃÌ>Ži…œ`iÀÃ]Ê «>À̈VՏ>ÀÞÊ Ì…iÊ >̅iÌiÃ]Ê >ÀiÊ >Ê «>À̈VՏ>ÀÊ vœVÕÃÊ œvÊ Ì…iÊ " Ê Û>Õ>̈œ˜Ê œ““ˆÃȜ˜°

254

Insun Sunny Lee and Graham Brown

Promoting national engagement
Ì…œÕ}…Ê ̅iÊ >“iÃÊ >ÀiÊ >Ü>À`i`Ê ÌœÊ >Ê VˆÌÞ]Ê Ì…iÀiÊ ˆÃÊ >Ê ÃÌÀœ˜}Ê «œˆÌˆV>Ê ˆ“«iÀ>̈ÛiÊ ÌœÊ «ÀiÃi˜ÌÊ Ì…iÊ "Þ“«ˆVÃÊ >ÃÊ >Ê ˜>̈œ˜>Ê iÛi˜Ì°Ê ˆ˜>˜Vˆ>Ê ÃÕ««œÀÌÊ vÀœ“Ê ˜>̈œ˜>Ê }œÛiÀ˜“i˜ÌÃÊ ÀiµÕˆÀiÃÊ̅>Ì]Ê>ÃÊv>ÀÊ>ÃÊ«œÃÈLi]ÊLi˜iwÌÃÊLiÊëÀi>`Ê̅ÀœÕ}…œÕÌÊ̅iÊVœÕ˜ÌÀÞ°Ê/…iÊLi˜iwÌÃÊ “>ÞÊ Vœ˜ViÀ˜Ê iVœ˜œ“ˆVÊ œ««œÀÌ՘ˆÌˆiÃ]Ê LÕÌÊ Ì…iÞÊ >ÀiÊ “œÀiÊ ˆŽiÞÊ ÌœÊ LiÊ >ÃÜVˆ>Ìi`Ê ÜˆÌ…Ê «ÃÞV…ˆVʈ˜Vœ“iÊÃÕV…Ê>ÃÊviiˆ˜}Ãʜvʘ>̈œ˜>Ê«Àˆ`iʜÀÊ>ÊÃi˜Ãiʜvʈ`i˜ÌˆwV>̈œ˜Ê܈̅ʫiœ«iÊ Ü…œÊ «>À̈Vˆ«>ÌiÊ ˆ˜Ê ̅iÊ >“iÃ°Ê >˜ÞÊ «iœ«iÊ ˆ˜Ê ̅iÊ …œÃÌÊ VœÕ˜ÌÀÞÊ ˆÛiÊ >ÌÊ }Ài>ÌÊ `ˆÃÌ>˜ViÃÊ from the host city and place decisions are critical to creating meaningful connections to ̅iÊiÛi˜Ì°Ê/…iʓœÃÌʜLۈœÕÃÊ«>ViÊ`iVˆÃˆœ˜]ʈ˜Ê̅ˆÃÊVœ˜ÌiÝÌ]ʈÃÊ>LœÕÌÊ܅iÀiÊ̅iÊ"Þ“«ˆVÊ iÛi˜ÌÃÊ܈ÊLiÊÃÌ>}i`ÆÊvœÀÊiÝ>“«i]Ê>ÃÊ«>ÀÌʜvÊ̅iÊœ˜`œ˜ÊÓä£ÓÊ"Þ“«ˆVÊ>“iÃ]ÊvœœÌL>Ê “>ÌV…iÃÊÜiÀiʅi`ʈ˜Ê̅iÊVˆÌˆiÃʜvÊ>˜V…iÃÌiÀ]Ê iÜV>Ã̏iÊ>˜`Ê œÛi˜ÌÀÞ]ʈ˜Ê ˜}>˜`]Ê>ÃÊ ÜiÊ>Ãʏ>Ã}œÜÊ­-VœÌ>˜`®Ê>˜`Ê >À`ˆvvÊ­7>iî°Ê/…iʓ>ÌV…iÃÊ«ÀœÛˆ`i`ʜ««œÀÌ՘ˆÌˆiÃÊvœÀÊ “>˜ÞÊ «iœ«iÊ ÌœÊ >ÌÌi˜`Ê "Þ“«ˆVÊ iÛi˜ÌÃÊ VœÃiÊ ÌœÊ Ì…iˆÀÊ …œ“iÊ LÕÌÊ Vœ˜˜iV̈œ˜ÃÊ ÜˆÌ…Ê Ì…iÊ >“iÃÊV>˜ÊLiʓ>`iʈ˜ÊœÌ…iÀÊÜ>ÞðÊœÀʈ˜ÃÌ>˜Vi]ʓ>˜ÞʏœV>ÊVœÕ˜VˆÃÊ>VÀœÃÃÊ
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ʓœÀiÊ«Àœ>V̈ÛiÊ«>˜˜ˆ˜}Ê>««Àœ>V…ʈÃʘiViÃÃ>ÀÞÊvœÀÊ̅iʅœÃÌÊVœ““Õ˜ˆÌˆiÃÊ̜ʓ>ŽiÊ Ì…iʜÛiÀ>Êˆ“«>VÌʜvÊ̅iÊëœÀÌÊiÛi˜ÌÊ«œÃˆÌˆÛi°Ê-ÌÀ>Ìi}ˆVÊ«>˜˜ˆ˜}ÊvœÀÊiÛi˜Ìʏi}>VÞʘii`ÃÊ̜ÊLiÊ >««ˆi`Ê ÌœÊ }>ˆ˜Ê Li˜iwVˆ>Ê œ˜}‡ÊÌiÀ“Ê œÕÌVœ“iÃÊ À>̅iÀÊ Ì…>˜Ê iÝ«iV̈˜}Ê Ã«œÀÌÊ iÛi˜ÌÃÊ ÌœÊ `iÀˆÛiÊ Li˜iwÌÃʘ>ÌÕÀ>Þ°

REVIEW QUESTIONS £Ê 7…>ÌÊ >ÀiÊ Ãœ“iÊ œvÊ Ì…iÊ `ˆvviÀi˜ViÃÊ LiÌÜii˜Ê “i}>Ê Ã«œÀÌÊ iÛi˜ÌÃÊ >˜`Ê Vœ““Õ˜ˆÌÞÊ Ã«œÀÌÊ iÛi˜ÌÃʈ˜ÊiÛi˜ÌÊ«>˜˜ˆ˜}Ê>˜`ʓ>˜>}i“i˜Ì¶ ÓÊ 7…>ÌÊ>ÀiÊ̅iʓœÌˆÛ>̈œ˜ÃʜvÊëœÀÌÊiÛi˜ÌÊëiVÌ>̜Àö ÎÊ 7…>ÌʈÃʓi>˜ÌÊLÞÊ>ÊëœÀÌÊiÛi˜ÌÊLiˆ˜}ʈ˜Ê>ʏˆ“ˆ˜>ÊÃiÌ̈˜}¶ {Ê 7…>ÌÊ>ÀiÊ̅iʓ>ˆ˜ÊÜÕÀViÃʜvÊ̅iÊiVœ˜œ“ˆVʈ“«>VÌÃʜvÊiÛi˜Ìö xÊ 7…>ÌʈÃÊ̅iÊ«ÃÞV…ˆVʈ˜Vœ“i¶

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CHAPTER 18

Sport tourism Graham Brown and Insun Sunny Lee

Chapter objectives After completing this chapter you should be able to: UÊ Õ˜`iÀÃÌ>˜`Ê̅iÊVœ˜`ˆÌˆœ˜ÃÊ̅>ÌÊ}>ÛiÊÀˆÃiÊ̜ÊëœÀÌÊ̜ÕÀˆÃ“ʈ˜Ê̅iʘˆ˜iÌii˜Ì…ÊVi˜ÌÕÀÞÆ UÊ `ˆÃVÕÃÃÊ̅iʈ˜yÕi˜ViʜvÊÌÀ>˜Ã«œÀÌ>̈œ˜Ê>˜`ʈ˜vœÀ“>̈œ˜ÊÌiV…˜œœ}Þʜ˜Ê̅iÊ`iÛiœ«“i˜ÌÊ œvÊëœÀÌÊ̜ÕÀˆÃ“Æ UÊ `iw˜iÊëiVˆ>ˆÃ>̈œ˜Ê>˜`Ê`ˆvviÀi˜Ìˆ>̈œ˜Ê>ÃÊÃÌÀ>Ìi}ˆiÃÊvœÀÊ«>˜˜ˆ˜}ÊëœÀÌÊ̜ÕÀˆÃ“Æ UÊ ˆ`i˜ÌˆvÞÊ«ÀœViÃÃiÃÊ̅>ÌÊ>ÀiÊÅ>«ˆ˜}ÊVœ˜Ìi“«œÀ>ÀÞÊ«>ÌÌiÀ˜ÃʜvÊëœÀÌÊ̜ÕÀˆÃ“°

Key Terms: Sport Tourists; Sport Tourism History; Sport Tourism Resources; Sport Tourism Planning; Byron Bay.

INTRODUCTION Analyses of the relationship between sport and tourism can be traced to the 1980s and 1990s (Gibson, 1998; Glyptus; 1982; Standeven & De Knop, 1999) and scholarly interest in sport tourism has grown significantly since this time. Notable landmarks have included an international conference on the relationship between sport and tourism, organised by the World Tourism Organisation and the International Olympic Committee, held in Barcelona in 2001, and the introduction by Routledge in 2006 of the Journal of Sport and Tourism. However, a lack of coordination between sport and tourism organisations has been noted (Brown, Jago, Chalip, Ali & Mules, 2011; Chalip & McGuirty, 2004; Deery & Jago, 2005) and Weed (2003) found there has been a lack of integration at the policy level in the UK. The publication of a number of key textbooks has been timely in support of the growth that has occurred in degree programmes that feature sport tourism and sport event courses. This chapter draws, particularly, on two texts written by Hinch and Higham (Higham & Hinch, 2009; Hinch & Higham, 2011) that offer comprehensive coverage of sport tourism development in the context of processes associated with globalisation, mobility and identity, and the book by Weed and Bull that is structured around the themes of participants, policy and providers of sport tourism

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(Weed & Bull, 2004). In addition, journal articles are used to report recent research and conceptualisations of the field. This chapter discusses the motivations and behaviour of people who gain sport experiences away from their home environment. It also regards sport tourism as an agent of socioeconomic development, which can create a wide range of impacts on the communities that host sport tourists. Some people visit destinations that offer attractive settings to participate in informal sport activities such as hiking, swimming or surfing. They may be motivated by a desire to become fit, and improvements in health following an increase in levels of physical activity are well documented (Derom, Van Wynsberghe & Scheerder, 2015; Funk, Jordan, Ridinger & Kaplanidou, 2011: World Health Organization, 2015). The resources that make these outcomes possible may drive repeat visitation and encourage people to join a sport club at the destination. This makes it possible to interact with like-minded people and to become part of a sport subculture (Green & Chalip, 1998). The related activity affiliation and socialisation can also affect how sport tourists see themselves; their self-identity. This is a product of their perceptions about what it means to be someone who participates in a particular sport and the social norms associated with this participation. A desire to gain additional benefits may encourage people to travel to new destinations; to places that are considered to offer more attractive settings or where additional resources offer new experiences and the opportunity to test advanced skill levels. Alternatively, enduring involvement with a sport that started as part of a tourist experience may transfer to the home environment and become a permanent part of a person’s lifestyle. In this case, the resources that stimulated participation may have been at a tourism destination but the resources that make it possible to pursue regular participation need to be located close to home. This is one example of the complex relationship that exists between forces operating in the home environment and factors that influence the places selected to participate in sport-related activities. Resources that are found in different places can both stimulate and respond to sport tourism. The tourism industry provides a wide range of services to meet the needs of informal sport participants. Resorts promote their sport facilities and tour operators that specialise in adventure tourism try to attract the relevant segment of the sport tourist market. These operators may be small businesses in which someone who is passionate about a particular sport may act as the owner/operator/tour guide. This person will communicate his or her passion to sport tourists who may spend days, weeks or even longer taking part in, often, extreme activities in dramatic settings. The emergence of extreme sport can be seen as a popular move away from the rules and regulations of organised sport (Thomson, 2000). However, growth in the popularity of sports such as snowboarding, accompanied by increased media interest and the development of industry suppliers, such as clothing and equipment manufacturers, have seen them evolve from being alternative to mainstream sports. This illustrates the dynamic nature of sport development and the way it is constantly evolving. Part of the appeal of steep slopes and fast-flowing rivers that challenge mountaineers and kayaking enthusiasts is the contrast that exists between these environments and the densely populated urban areas where most people spend their daily lives. This contrast has been promoted very effectively by places such as Queenstown, New Zealand and Whistler, Canada, which have established reputations as outdoor adventure playgrounds. Their reputations are founded on natural resources; the beautiful mountain scenery and

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the climate that enables a range of outdoor pursuits in different seasons. Destinations supplement natural resources with indoor attractions and services that meet the needs of different types of sport tourist. Collaborative promotional activities by different organisations are designed to achieve a consistent market position for the destination. None of this occurs by chance and an informed and sophisticated approach to destination planning is required. Any development must also be measured against the attitudes of local residents regarding their social, economic and environmental objectives and the longterm sustainability of their community. Sport tourism can be very successful in small communities but it is in the large cities where most organised forms of sport tourism are found. Cities are the setting for behaviour that ranges from the weekly migrations of families across urban areas to support children participating in team sports to the less frequent gatherings of people with a longer tenure as sport participants who compete in Masters Games. Participants in competitive sport adhere to rules, and it is the consistent approach to the way sport is played that has made it possible for challenges to occur between individuals and between teams from around the world. Sport tourists travel to local, regional, national and international sport events to participate as competitors, sport organisers and in many other official and professional capacities. Many more people travel to watch professional sport such as football (NFL), baseball and basketball in the United States, ice hockey in Canada and football (soccer), which is followed passionately throughout much of the world. Many other people travel less frequently as spectators to mega events, such as the Olympic Games and the FIFA World Cup, which are held every four years. The mix of services that constitute a sport tourism experience can be divided into the core product, associated with the game and its outcomes, and ancillary products, such as the services provided in a stadium (Yoshida & James, 2010). A more detailed discussion of sport events is provided specifically in Chapter 17 but it is important to recognise, in the context of sport tourism, that there is considerable competition between cities to host mega events. The cities shortlisted to host the 2012 Olympic Games included some of the most famous capitals in the world; cities that regularly compete with one another to attract many forms of investment. London was named as the successful bidding city, beating Madrid, Moscow, New York and Paris. Cities wish to host mega events for a wide range of reasons, including gaining economic and tourism benefits (De Groote, 2005) and stimulating improvements to the local infrastructure (Smith, 2012). However, it is difficult to determine costs and benefits that are directly attributable to sport tourism when it forms part of integrated development projects. Such projects seek to attract a wide range of investment and to make the host city more attractive to both tourists and local residents. They may include sport venues as well as residential, retail and entertainment precincts. They need to have good transportation links and be well connected, ideally with pedestrian access, to services that provide food, entertainment and accommodation. The success of these developments depends on their ability to improve the atmosphere and vitality of the cities. In recent years, greater emphasis has been placed on design to transform physical settings and make experiences more memorable. For instance, a visible connection between a sport event and the host city can be established by creating a distinctive ‘look’ in the form of graphic representations at sport venues, tourist attractions and other key sites across the city. It is difficult to measure how people react to environmental atmospherics,

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even if they seem to be more engaged and excited. If the changes were designed to enhance the lifestyle of local residents they can be regarded as an outcome of a social leveraging strategy (Chalip, 2006). Similarly, the benefits of improved access to sport facilities and ability to watch high quality sport competitions close to home may be highly valued by host communities. This discussion demonstrates that sport-related travel ‘extends across all spatial scales, levels of competition and competitive-participatory, serious-casual and active-passive dimensions of engagement’ (Hinch & Higham, 2011, p. 3). A number of conceptual frameworks have attempted to classify different components of the diverse sport tourism market. The classification proposed by Standeven and De Knop (1999) focused on the activities undertaken by sport tourists and contrasted single sport activity holidays, such as skiing, with multiple sport activity holidays where people participate in a broad range of more casual activities (Table 18.1). A conceptualisation based on motivations was proposed by Gammon and Robinson (1997), who referred to ‘sport tourism’ when sport was the primary motivation to travel, with tourism activities of secondary importance. ‘Tourism sport’ was used when sport was an incidental part of the desired tourism experience. A weakness of Gammon and Robinson’s (1997) typology is the difficulty in determining the primacy of sport or tourism elements. This has led to the proposition that sport tourism should be regarded as ‘a synergistic phenomenon that is more than the simple combination of sport and tourism’ (Weed, 2005, p. 233) and that it is a ‘phenomenon arising from the unique interaction of activity, people and place’ (Weed & Bull, 2004,

TABLE 18.1Ê -«œÀÌÊ̜ÕÀˆÃ“Ê>V̈ۈ̈iÃÊV>ÃÈwV>̈œ˜

Classification

Examples

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p. 37). The nature of the interaction reflects its societal context and varies between places and across time. By reviewing the history of sport tourism, it is possible to identify factors that have been influential in its development.

THE DEVELOPMENT OF SPORT TOURISM In the first chapter of Sport Tourism Development (Hinch & Higham, 2011), the authors identify four contemporary trends, attributed to different authors: 1 2 3 4

the expanding demographic profile of participants in sport (Glyptis, 1989); heightened interest in health and fitness in Western societies since the 1970s (Collins, 1991); increasing demand for active engagement in recreational pursuits while on holiday since the 1980s (Priestley, 1995); and growing interest in the prominent roles played by sport and sport events in urban renewal and urban imagery and the potential to leverage tourism opportunities associated with sport events (Getz, 1998).

The authors also noted that the ‘sportification of society’ (Standeven & De Knop, 1999) has been ‘facilitated by technological advances’ (Hinch & Higham, 2011, p. 5). Significantly, it was technological advances during the Industrial Revolution in Britain that created the conditions for the development of sport tourism as we know it today.

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However, it is important to recognise that forms of sport tourism have existed throughout history and travelling to watch athletic competition was an important part of Greek life. The games at Olympia, which date from 776 BC, attracted as many as 40,000 people from all parts of the country. During Roman times, gladiatorial combats and chariot races were the most important spectator events and an ideological orientation towards health and fitness was spread throughout the empire. The safe movement of people was made possible by the development of roads and the protection afforded by the Roman army. Following the fall of Rome, there was little further development in transportation until modest improvements with coach travel were made in the sixteenth century. It was not until the nineteenth century, with the development of the railways, that a large proportion of the population was able to travel away from home for the first time. Industrialisation, work in factories and urbanisation had profound implications for sport tourism. Structured regimes provided free time when the emerging working class could participate in team sport. The development of local teams created inter-urban rivalries, which were expressed at games held at stadiums that attracted thousands of paying spectators on Saturday afternoons. At the same time, the growing rail network was connecting cities across the country at relatively cheap prices. Recognition of the structural relationship between sport and tourism gave rise to ‘railway specials’ that offered services to football games and other sporting events. Sport was expanding spatial horizons and many fans in Britain visited cities, including London, for the first time. The ability to transport horses by rail gave rise to a national racing calendar and the railways facilitated the development of the county cricket competition in England, which started in 1873. The impact of the railways was felt in many ways but it was not the only form of transport that influenced the development of sport tourism at this time. Passenger services by steam ship made it possible for sport teams to organise overseas tours, enabling the diffusion of sport culture around the world and the development of international competition. The English cricket team played in Australia for the first time in 1861–1862 and, by the end of the century, English teams were touring all parts of the empire. Participant sports such as skiing and mountaineering also became established in the second half of the nineteenth century with the formation of an Alpine Club and a number of first ascents of the highest European Alpine peaks. By the first decade of the twentieth century, Switzerland had become a winter playground for the affluent upper and middle classes of Britain, many of whom had been educated at Oxford or Cambridge universities. At this time, the privileged elite travelled overseas as sport tourists and, when at home, were often members of sport clubs, linked to universities or other social organisations. The early part of the twentieth century saw incremental change and a continuation of trends that had started in the previous century. Sports such as skiing remained largely a preserve of the rich, and social class had restricted participation in some other sports such as rowing, equestrian activities and polo. The second half of the century saw major changes that allowed large sections of society to embrace sport. Increases in wealth and leisure time and improvements in transportation were particularly influential. Holiday entitlement was enshrined in the Holidays with Pay Act 1938, making it possible for many families to take a holiday away from home. Towards the end of the century, taking four or five weeks’ leave from work had become an accepted part of the lifestyle for many, and households were starting to spend more on leisure than on food, housing or

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transport (OPCS, 1999; Weed & Bull, 2004). It became quite common for families to include a ‘traditional’ beach holiday and a sport holiday into their annual calendar of leisure activities. Increasingly, changes in social attitudes meant that many decisions reflected a desire to be fit and healthy. Those with the strongest desire and greatest ability were often the elderly, particularly those who were able to take early retirement. Increasing levels of car ownership transformed travel and leisure behaviour in the post-war period. During the 1950s, two-thirds of British families used trains to take holidays, mainly at beach resorts, but by 1970 this figure was only one in seven. This change is directly attributable to the growth in car ownership that occurred during this period. In 1949, only 14 out of every 1,000 households had access to a car, and this increased to 60% just 20 years later. The next major impact on the development of sport tourism was caused by the growth of aircraft travel. Landmarks occurred in 1957 when, for the first time, more passengers crossed the Atlantic by plane rather than by ship, and in 1958 with the introduction of the Boeing 707 jet. This marked the start of the jet age and the emergence of the jet set. Popular culture, associated with the travel behaviour of film stars, pop musicians and football players, increased the demand for international travel. This led to the introduction of cheap charter flights. The first package tour by air was offered by Horizon Holiday from the UK to Corsica in 1950, and by 1970 there were two million inclusive tours by charter flight from the UK. Package holidays to warm climates were particularly popular with British and German holidaymakers, and many of the tourism resorts that were developed in Mediterranean countries offered sport activities, particularly golf, tennis and water sports. Sport facilities were also a key part of the appeal of Club Méditerranée resorts, the first of which was opened in Majorca, Spain, in 1950. Air transport reduced the time needed for people to reach distant destinations, and changes in technology have reduced the time it takes for information and images to be sent across the globe. Television became particularly influential as levels of ownership grew in the post-war period. There were five million television sets in just three countries (UK, US, USSR) in 1950 and this increased to 250 million sets in 130 countries by 1970. Continued growth and the development of special sport channels meant that sport could be watched around the clock. Televised sport has become part of popular culture, and major sport events are presented as forms of spectacular entertainment. Tennis at Wimbledon, the Tour de France, Formula One Grand Prix races, the Football World Cup and the Olympic Games are viewed in homes around the world and generate passionate support for national competitors. Televised events are an expression of the way processes associated with globalisation and commercialisation have shaped sport tourism in the contemporary world. It comes as little surprise when the television news shows an image of a child who survived a bomb blast in the Middle East wearing a Dallas Cowboys shirt. This image brings us into the 21st century.

SPORT TOURISM RESOURCES Landscapes of sport are considered to be part of the cultural landscape with modifications creating ‘sportscapes’ (Bale, 1994). The resources that support sport tourism can be analysed in terms of a number of continuums:

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BIOPHYSICALnTECHNOLOGICAL NATURALnANTHROPOGENIC OUTDOORnINDOOR SINGLEUSEnMULTIPLEUSE TEMPORARYSETTINGnPERMANENTFACILITY SMALLSCALEnLARGESCALE SINGLELOCATIONnDISPERSEDSPATIALPATTERN CLOSETOMARKETnDISTANTFROMMARKET

These categories help analyse the sport tourism–environment nexus (Hinch & Higham, 2011) and can be used to understand the types of environmental setting that support different types of activity and the environmental impacts created by sport tourism. Hinch and Higham (2011, p. 9) noted that quite different issues are associated with natural resources and built facilities in sport tourism. Outdoor sports tend to be dependent on specific types of landscape whereas other types of sport are more transportable and the shift towards artificial, enclosed and controlled sports environments, is one of the most telling and obvious trends of the last decade. There is considerable variation in the physical capacity of environments to withstand pressures imposed by sport tourists and, increasingly, site management is attempting to achieve sustainable outcomes. In recent years, a change in social attitudes has encouraged the adoption of ‘proactive environmental stewardship and habitat creation’ (Hinch & Higham, 2011, p. 142). This is evident in political pronouncements in support of bids to host sport events when assurances are given that the environmental quality of sites will be improved as part of any necessary development. This can be readily demonstrated when hazardous, polluted sites are remediated and made suitable for public use, but caution has been expressed about the green credentials of some sport settings. For instance, the highly intensive management of golf courses produces environments that are low in biodiversity (Priestley, 1995). Some resources that are needed to play sport are readily available, and a casual game of football can be played almost anywhere. This finds expression in places as varied as patches of grass in England, dusty squares in North Africa and beaches in Brazil. In each case, children are happy to chase a ball and celebrate when it is kicked between bins, trees or piles of clothes that serve as goalposts. However, a much higher level of resource provision is required to successfully stage a football match at Wembley Stadium with success measured in different ways by the wide range of stakeholders. Place dependency is a useful concept in this context. It concerns the functional qualities of a place and its ability to deliver desired outcomes (Stokols & Schumacker, 1981). It can be used to identify the type of resources that must be available to meet the needs of the people who are seeking different types of outcomes. For example, the quality of the playing surface is important for the players, the view from seating areas is important for spectators and the level of technical support is important for the media. Some resources are only found at specific locations; for instance, there are relatively few places where one can ski. The perceived quality of ski resorts is influenced by factors

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associated with the natural setting and weather conditions, the length and degree of difficulty of ski runs and the range of facilities and services that are offered both on the slopes and in resort villages. The sport heritage and local culture of an area are also important. Each year, lists are produced that identify top-ranked ski and snowboard resorts. The criteria are indicative of the importance placed on access to different types of resources. Artificial slopes linked to shopping malls, as exist in Dubai, do not feature in these lists and would be ridiculed by serious skiers. However, the ability to create snow in the desert demonstrates the opportunity to use sport as a supplementary tourism attraction and how it can become part of destination planning almost anywhere. Sport tourists make decisions about where they would like to engage in sport and may be prepared to incur large costs to travel to destinations that offer desired resources, meaningful experiences and authentic place associations. An extensive period of planning may be seen as an enjoyable part of the sport tourism experience and Weed and Bull (2004) suggest that ‘where sport is pursued at a competitive or elite level, higher quality resources may be preferred, even required’ (p. 46). The concept of involvement has been used in research to help understand sport behaviour (Beaton, Funk, Rindinger & Jordan, 2011; Havitz & Dimanche, 1997) and is instructive in this context. For instance, a person who is highly involved in golf is likely to be knowledgeable about the sport, prepared to spend a relatively large part of disposable income on equipment and fees and regularly devote a large amount of leisure time to playing at local courses. Membership of a golf club and participation in the activities it organises will have broader social and lifestyle implications. The club may also organise international tours so members can play at some of the most prestigious courses around the world. Courses may be regarded as sacred places of golf due to their association with famous golfers and events that feature as historically significant landmarks in the development of the sport. Travelling to play at such courses may be the ultimate expression of a person’s involvement as a golfer and a sport tourist.

PLANNING SPORT TOURISM Planning is a future oriented process that involves an intervention in the development process to foster particular changes. Sport tourism can take the form of an intervention or it could be the objective of process. A rational approach to planning involves establishing measurable goals, conducting feasibility studies and regular evaluations to inform ongoing decision making. A logistical approach requires scheduling tasks, setting timelines, allocating resources and applying control systems. A political approach includes engagement with stakeholders, emphasis on conflict resolution and progressing incrementally with constituent support. The relative importance of measures associated with each approach will vary from place to place and according to the type of interventions that are being made. This requires appreciation of the way sport tourism is integrated in the local environment and host community. The process of identifying opportunities for sport tourism development should start with resource analysis. The extent to which the natural environment serves as the foundation of sport activities and whether it offers a competitive advantage must be assessed. This will likely determine whether additional resources are required and if

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new products need to be developed. This may involve the construction of new facilities and the creation of permanent or temporary structures. Critical decisions about the scale, cost and market demand for new facilities must be made. Accessibility issues may be particularly important and, from a strategic perspective, the role of sport tourism in relation to the existing socioeconomic structure of the community must be considered. A diversified strategy involves developing a wide range of sport tourism activities to attract different sport tourist markets. Alternatively, a specialisation strategy seeks to clearly link a destination with a particular sport, as illustrated in the case study of Byron Bay. A strategy towards diversification or specialisation will dictate the desired market position and will be reflected in how the destination is promoted. Specialisation requires targeting a clearly defined segment of the sport tourist market and attracting the interest of specific media. This includes sport journalists who represent magazines and television production companies that specialise in the relevant sport. Alternatively, a diversified strategy requires the development of promotional campaigns that appeal to a wide range of sport tourists. This offers more flexibility and opportunities to focus on different markets and different types of media at different times. The success of both strategies depends on being able to attract resources that will enhance promotional activities. In this context, destination marketing organisations (DMOs) have collaborated with media organisations to produce television commercials that promote the destination as part of event coverage (Brown, 2001). By playing an active role, the DMO is able to ensure that the promotions reflect the desired destination positioning while the costs of production and airtime are borne by the media organisation. Similar benefits can be gained by working with sport tourism sponsors, which are able to enhance campaign benefits through association with a destination brand (Brown, 2007).

Case study: surfing at Byron Bay Byron Bay is a beachside town located in the north-eastern corner of New South Wales,
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The focus on surfing at Byron Bay was not the result of a specific, top-down decision to make the town a specialised sport tourism destination. Sport tourists were attracted by the natural resources and an environment that supported the development of a distinctive culture. This was encouraged by famous surfers who moved to the town, by surfing and cultural images that were readily presented in the local, national and international media and by support services that have developed in the town. Although the process has not been directly controlled, the case study demonstrates the benefits that can be gained by specialised, integrated sport tourism development.

270

Graham Brown and Insun Sunny Lee

SUMMARY /…iÀiʈÃÊ}ÀœÜˆ˜}ÊÀiVœ}˜ˆÌˆœ˜Ê̅>ÌÊLœÌ…Ê̜ÕÀˆÃÌÃÊ>˜`ÊÀiÈ`i˜ÌÃʜvʅœÃÌÊVœ““Õ˜ˆÌˆiÃÊV>˜ÊLi˜iwÌÊ vÀœ“Ê ëœÀÌÊ ÌœÕÀˆÃ“Ê ­ÃiiÊ 7ii`Ê EÊ Õ]Ê Óää{]Ê V…°Ê Ó®°Ê ,iVi˜ÌÊ ÀiÃi>ÀV…Ê …>ÃÊ `i“œ˜ÃÌÀ>Ìi`Ê Ì…>ÌÊ Ã«œÀÌʜÀ}>˜ˆÃ>̈œ˜ÃÊ>ÀiÊ«ÀiÃi˜Ìi`Ê܈̅Êw˜>˜Vˆ>Ê>˜`ʜ̅iÀʜ««œÀÌ՘ˆÌˆiÃÊLÞÊiÃÌ>LˆÃ…ˆ˜}ÊÃÌÀ>Ìi}ˆVÊ>ˆ>˜ViÃÊ܈̅Ê̜ÕÀʜ«iÀ>̜ÀÃÊ­i˜˜iÞÊEÊ/œœ…iÞ]ÊÓä£{®°Ê
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CHAPTER 19

The continuing evolution of sport management Trish Bradbury and Ian O’Boyle

Chapter objectives After completing this chapter you should be able to: UÊ Õ˜`iÀÃÌ>˜`ʅœÜÊ̜ÊVÀi>ÌiÊivviV̈ÛiÊ>˜`ÊivwVˆi˜ÌÊëœÀÌʓ>˜>}i“i˜ÌÊ«À>V̈ViÃÆ UÊ Õ˜`iÀÃÌ>˜`Ê̅iʈ˜ÌiÀÀi>̈œ˜Ã…ˆ«Ê>˜`ʜÛiÀ>ÀV…ˆ˜}Ê̅i“iÃÊi“iÀ}ˆ˜}Ê>VÀœÃÃÊ̅iÊV…>«ÌiÀÃÆ UÊ `iÃVÀˆLiÊ̅iÊÛ>ÀˆœÕÃÊ`ˆ“i˜Ãˆœ˜ÃʜvÊëœÀÌÊLÕȘiÃÃʓ>˜>}i“i˜ÌÆ UÊ `ˆÃVÕÃÃÊ̅iÊÌÀi˜`ÃÊ>˜`ÊV…>i˜}iÃÊv>Vˆ˜}ÊëœÀÌʓ>˜>}iÀð

Key Terms: Sport Business Management; Trends and Issues in Sport Management; Overarching Themes

INTRODUCTION Sport management is a multifaceted field incorporating many of the business roles found in the private sector. Indeed, sport management is often referred to as sport business management (Beech & Chadwick, 2004; Leberman, Collins & Trenberth, 2012; Trenberth & Hassan, 2012) as the management of sport is now more business-like than it has ever been. This description has gained popularity as the growth, commercialisation and professionalisation of the sport industry have driven changes in the ways sport management is operationalised. Sport business management constructs encompass, for example, core business concepts such as ‘PLOC’, the management processes of planning, leading, organising and controlling. Similarly in sport, human resources or people management is a key focus because, ultimately, this is what sport is about – people! Katz’s managerial skills (human, technical and conceptual) can also been seen as important in sport business management, as can concepts of accountability, performance measurement and management, and the need to comply with legislation and government policy. In all these ways, the management of sport and the management of business can be seen to be rather similar in approach. Understanding Sport Management: International Perspectives provides an array of concepts, some of which relate directly to sport, and others to business more generally.

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Specifically, these business concepts include organisational structure and theory (Chapter 3), controlling and managing organisational performance in high performing organisations (Chapter 7), strategic management (Chapter 8), governance (Chapter 10), leadership (Chapter 11), sponsorship and marketing respectively (Chapters 12 and 13), economics (Chapter 14), communications and social media (Chapter 15) and legal aspects (Chapter 16). The remaining chapters comprise more sport-specific content, such as sport in society (Chapter 2), professional sport (Chapter 4), the global sport environment (Chapter 5), creating high performing sport organisations (Chapter 6), managing grassroots sport (Chapter 9), sport event management (Chapter 17) and finally sport tourism (Chapter 18). It is important that readers of this book, especially students, gain an understanding of all these different elements as they reflect required competencies sport managers of the future will require. The purpose of this concluding chapter is to illustrate the interrelationships of each of these topics and, in effect, show how they operate and interact in the sport management sphere. This chapter will also bring to light the trends and challenges in sport management that, once again, future sport managers must have the capability, knowledge and ingenuity to contend with.

CHAPTER OVERARCHING THEMES AND UNIFYING CONCEPTS Each of the chapters in this book presents essential aspects of the management of sport. However, the concepts introduced in each chapter are not isolated from one another. You would have seen through reading these chapters that many of the concepts interact and overlap and these relationships and unifying connections will now be discussed. Chapter 1 set the scene for this academically research-based book. The chapter emphasised that the sport management field is now considered a legitimate professional and commercial industry and, as noted above, one that has adopted traditional business and management practices. The sport management environment was discussed, encompassing such content as economic, social, technological and geopolitical perspectives, legal, business and financial proficiencies, and sport governance and the culture of corruption and lack of integrity. It then introduced chapter subject matter and issues that were subsequently discussed in greater detail in the later chapters. Chapter 2 provided an understanding of how sport is integrated into society, and is deemed by governmental and other organisations to provide positive social outcomes. Today, many people consider sport from the elite high performance level (see Chapter 6) or the professional level (see Chapters 4 and 5). It must be remembered, though, that sport is played throughout society (also noted in Chapters 5 and 9) by all ages in back gardens, open fields, schools, clubs and at events such as the Youth Olympic Games and the World Masters Games (WMG). This chapter also touched on topics addressed in greater detail in later chapters such as the professionalisation of sport (Chapter 4), globalisation and internationalisation in sport (Chapter 5), and sport and integrity (Chapter 16). Chapter 3 introduced non-profit sport organisations, commonly known as national sport governing bodies (NSGBs) or national sport organisations (NSOs), first talked

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about in Chapter 1. Their distinct features, domains and levels were described, as were their responsibilities, functions and hierarchical units. Specific domains were also acknowledged in other chapters: egalitarian sport, or sport for all, in Chapter 2, professional sport in Chapter 4, elite sport in Chapter 6, and entertainment sport, discussed in Chapter 5. The issue of NSGB performance and governance and board capability were featured in this chapter, and also discussed in Chapters 7 and Chapter 10, respectively. Leadership, the emphasis of Chapter 11, was also briefly touched on. The final concept discussed was corporate social responsibility (CSR). Chapter 4, dedicated to professional sport (also described in Chapter 5), defined professional sport and described both internal sport stakeholders (athletes, clubs, leagues and governing bodies) and external sport stakeholders (spectators, communities, corporations and media), touching on the unique interests of these two groups. Financial data relating to professional athletes’ salaries and the profitability of leagues and teams were presented here. These issues were further discussed in Chapter 14, which focused on the economic aspects of these ventures. Governance (discussed at length in Chapter 10) was also referred to briefly. Chapter 5 focused on the global sport environment and introduced the reader to internationalisation and the global landscape of sport leagues, sport events and social media in sport. Chapter 15 was totally devoted to the adoption and use of social media in sport and sport management and Chapter 5 adds to that discussion. Professional sport league dialogue included in this chapter built upon the information presented in Chapter 4. Chapter 6 described the management of high performance (HP) sport, discussing the three core principles required to guide HP managers’ decisions and actions: the elite athlete development process, managing the HP sport environment and HP stakeholders, and HP strategic management (discussed at length in Chapter 8). The importance of policy formulation and strategy implementation was also stressed. Chapter 7 emphasised organisational performance, which was viewed from the perspective of the Viable System Model (VSM) tool diagnosing organisational effectiveness and understanding structural factors influencing an organisation’s performance. A thorough overview of the VSM was presented with graphics and case studies used to increase the reader’s understanding. Performance management was also touched on in Chapter 8. Chapter 8 outlined strategic management and the strategic planning process, covering goal setting, strategic objective setting and the other elements integral to strategic planning. It stressed that strategic planning is the prime responsibility of a governing board (further discussed in Chapter 10). The strategic planning process provides a useful opportunity for sport organisations to engage with their stakeholders. It can also have a number of associated benefits such as building trust and gaining insights into stakeholders’ concerns, and, of course, the production of a robust and inclusive strategic plan itself. People management and the critical role of volunteers are key concerns for sport managers and were the focus of Chapter 9. This chapter defined a sport volunteer, the types and roles of volunteers and the management of volunteers, including planning, recruitment, retention, motivation and performance and reward systems. Application of human resource management (HRM) processes was considered beneficial for managing a volunteer programme.

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Chapter 10 dealt with sport governance. This topic has been of the focus of considerable media attention in recent times due to allegations of corruption and poor governance practices in many prominent international sporting bodies. Good governance is also being recognised as a crucial element within the wider sport management industry by a number of state/national agencies such as UK Sport, the Australian Sports Commission (ASC) and Sport New Zealand (Sport NZ) that have all focused on this topic. Leadership in sport management was the topic of Chapter 11. This chapter explained the concept and contemporary theories of leadership as well as identifying the differences between a leader and a manager, particularly in relation to sport managers. A summary of the many definitions of leadership, an essential function of any manager, can simply be described as the use of power (a selection of five sources) and/or influence to achieve desired organisational outcomes. Leaders (agents of change) may adopt the follower-focused theories of transformational, authentic or servant leadership to improve the management of sport in their organisations. Leadership was also mentioned in Chapters 6 and 10. The big business of sport sponsorship was the subject of Chapter 12, which explored sponsorship from the perspectives of both the sponsor and sponsee (also termed ‘property’), and sponsorship measurement and evaluation. Ambush marketing, also presented in Chapter 13, the unauthorised association with a product or service like a sport event, was discussed, as was a case example of sponsorship in action via the new ‘sport’ of eSport. A key ‘take-home’ from this chapter is that to be successful in sport sponsorship, the sponsee must understand why companies choose to sponsor and what the properties have to offer a potential sponsor, ensuring compatible sponsorship goals. Chapter 13 discussed sport marketing, providing an overview and highlighting the importance of market research, and understanding both the consumer and the sport business industry when developing a sport marketing approach. Also included was the application of the sport marketing process and the four Cs – consumer, company, competitor and climate – and four Ps – product, price, place and promotion – of any marketing plan. A conversation on branding concluded the chapter, which was mentioned in Chapter 15. Chapter 14 focused on the economics of sport and explained why economics is a perfect gauge for analysing sport. The definitions of (sport) output and the producer of those outputs (the firm) were presented, and differences in their application to sport and business outlined. The importance of competitive balance, which provides uncertainty of outcome on the field of play (Hoye, Smith, Nicholson, Stewart & Westerbeek, 2015), and parity, equality in on-field performances, were also addressed in Chapter 4. Communications and social media, the fastest-growing areas in sport marketing, were discussed in Chapter 15. A discussion of the significance of social media platforms and the alternatives available to sport personnel was followed by an outline of the marketing communication activities of branding and developing consumer brand relationships. The challenges arising from social media usage were also presented. Media in general were briefly mentioned in Chapters 2 and 4 and branding touched on in Chapters 12 and 13. Chapter 16 concentrated on sport law, exploring the increasing intersection of sport and the law and providing sport based case examples. A catalyst for this growth is the presence of money and the reality that sport is becoming more business-like, professional and commercial, as discussed in Chapters 1, 4 and 5. Setting the scene for this chapter, a

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discussion of the definition of sport ensued (Chapter 2), followed by the organisational structure of sport (Chapters 3, 4 and 10) discussing major players in international sport (Chapter 5). Anti-doping legislation, rights and equality, criminal law, contract and tort law and intellectual property and ambush marketing (Chapter 12) were all considered. Chapter 17 covered sport event management, classifying sport events from community to international categories (Chapter 5) and discussing contexts, motivations, consumer experiences and economic issues (Chapter 14). The social and environmental impact of sport events (Chapter 2) were also described in this chapter. The planning and delivery of different sized sport events was also examined, with events classified as mega (see Chapters 2, 4, 5, 6 and 18), hallmark, major or local community. The chapter concluded that proactive planning was necessary in sporting events to ensure a positive consumer event experience and a lasting legacy. The penultimate chapter, Chapter 18, was dedicated to sport tourism. The chapter began with a brief developmental history and description of sport tourism. This was followed by a discussion of the beneficial influences of transportation and technology on sport tourism. Sportscapes, with some examples of the eight resources that support sport tourism, were discussed. It was noted that resource analyses, including finances, facility requirements, availability and accessibility, are required to identify sport tourism developmental opportunities.

WHERE TO FROM HERE? TRENDS AND CHALLENGES IN SPORT MANAGEMENT As noted throughout the chapters, sport and sport organisations are evolving, constantly driven by dynamic changes in the external environment – notably in the broader political, environmental, technological, sociocultural, ecological, demographic, economic and legal sectors. These vicissitudes (changes) affect the ways in which sport is managed. Successful sport managers and employees should be aware of what is happening in both the local and global environments so that they are able to proactively, not reactively, respond. So what are some of the trends and challenges faced by those working in the sport industry? These trends and challenges are affecting the full range of sport endeavours from grassroots community level organisations through to professional and commercial sporting bodies. Let’s consider some of them now. Jeremy Jacobs, owner of the Boston Bruins ice hockey team and Delaware North, a leading foodservice and retail management company at stadiums, arenas and ballparks worldwide (see www.delawarenorth.com/about#sthash.4aS491Xj.dpuf ), assembled futurists and experts to consider sport trends over the next 25 years in a report titled The Future of Sports. He introduced the resulting report by saying: Sports are timeless, yet with each generation, new technology and social dynamics have changed and intensified how we experience sports. In the past fifty years, we have seen many radical changes – broadcast television and cable, credit cards, salary caps, player unions, integration, globalization of the fanbase, shared revenue agreements, and $100 million player contracts . . . The changes

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on the horizon will likely be even more disruptive . . . Change is coming fast. But how these trends intersect, and what our industry will look like as a result, is far from obvious. (McHugh, 2015, p. 1) This view is thought-provoking, even frightening, but at the same time electrifying. Think of the opportunities available for sport and sport stakeholders – consumers, fans, owners, users, teams, athletes, leagues, franchises, sponsors, media and many other interested parties. The speed of this change supports the suggestion that sport managers must recognise and prepare for the trends and challenges that the future will offer. McHugh’s (2015) report addressed a range of evolving trends, which were categorised as stadia, broadcasting, athletes, ‘the third venue’, sponsorship and advertising, teams and leagues, eSports and fantasy sports, fans, extreme and adventure sports, payments and ticketing, and fanbase economics. The great majority of these trends were, in one way or another, also considered by the various authors in this book. This American report is not the only attempt to forecast the future of sport. In Australasia, two central government agencies, the ASC and Sport NZ, have also sought to discern trends and future challenges in sport in the hope of devising appropriate strategic plans for sustainable sport futures in their respective countries. This research also concluded that the sport sector will face significant challenges as a consequence of constant changes in external environments. Peter Miskimmin, Sport NZ Chief Executive, avowed, ‘We know the world is changing and we must change with it’ (Sport New Zealand, 2016). The findings outlined above make an interesting read for those involved in sport. Research suggests that further trends, issues and challenges will transpire, and have already transpired, in aspects of the management of sport. These include problems in governance and sport delivery, issues in grassroots and/or high performance sport, increasing population diversity, sedentary living, the development of new sport forms such as extreme or adventure sport, new participation methods, technology usage and growth in sport consumerism and marketing. To this list, Hajkowicz, Cook, Wilhelmseder and Boughen (2013) further added the effect of population and income growth throughout Asia, which they termed ‘New wealth, new talent’ (p. 25), and the adoption of corporate and business-like structures termed ‘Tracksuits to business suits’ (p. 31). This list is not exhaustive and will likely see many more issues or trends added, such as integrity and ethical issues including match fixing, corruption and drug use (e.g. the use of performance enhancing drugs), and genetic testing and genetic engineering, which are issues incorporated under ‘the athlete’ (p. 16) in McHugh’s (2015) report. Consideration will now be given to some of these issues and trends, as discussed or alluded to in this book, including social media, technology, eSport and online gaming, effects of internationalisation, new sports, adventure or extreme sports, limited resources such as volunteers and finances, and governance roles. Note that the examples provided are just that, and there is a wide range of other potential extensions or situations that may also occur. With the increase in use and spread of communication technology and social media tools (explained in Chapter 15), the world is becoming a single ‘neighbourhood’. Sport fans can consume their favourite sport in real time, and purchase the new and cool sport merchandise of their favourite team or sport superstar at the tap of a smartphone button.

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This fact, in itself, has major ramifications for sport managers. They must ensure that their communication methods are appropriate, so people worldwide can find game schedules and merchandise, and be able to communicate via chat sites with other likeminded fans about the games, products or services of the particular sport organisation. This technology enables eSport and online gaming, as discussed in Chapter 12. As noted in that chapter, online sport and gaming are growing exponentially, with global revenues expected to exceed US$1 billion by 2019. While there is currently debate in the academic sport community as to whether eSport can yet be termed a sport, it no doubt will be viewed as such in the very near future. As a future sport manager, you may face declining participant numbers due to the availability of technology allowing your consumers to ‘play’ their sport online. This view is echoed by Miskimmin, who suggests there is a global trend towards inactivity (Sport New Zealand, 2016) as increasing numbers of people consume their sport online. Chapter 5 discussed the expansion of the globalised sport environment and internationalisation. This may be positive for the sport consumer but not necessarily for those directly involved in sport such as the athletes, for whom the picture may be less rosy. Although athletes may see increased income, global sport for them could mean, for example, increased travel requiring more time away from family, and greater interruption in their personal lives, as fans expect to be part of their daily lives through social media and other forms of virtual reality. Other trends discussed were the growth in the new forms of sport arising from adaptations to traditional sports and the evolution of extreme sports, as discussed in Chapter 2. Sport managers must be aware of upcoming changes and think creatively to keep up with their competitors, other sports and even other forms of entertainment, in adapting their sport to meet the needs of their sport community users. With the increase in consumers’ leisure time, altering demographics, changes in disposable spending and technology usage, sport managers have to be very aware of their competition, both sporting and non-sporting, in order to continue to attract and retain users of their products and services. Another trend, and a challenge to be faced, is the reduction in the number of sport volunteers. This was discussed in Chapter 9. While many grassroots organisations and NSOs are experiencing a drop-off in volunteer numbers, this is typically not the case for mega events like the World Masters Games, which New Zealand is hosting April 2017. The WMG, the largest multisport event worldwide when measured by athlete numbers, is dedicated to the ‘older’ athlete, as noted in Chapter 2. The average age of the projected 25,000 athletes is expected to be 42, although the youngest competitor can be 25 and the most mature into their 90s. Mega events often attract the resources they require, like volunteers, due to the novelty of such events and the opportunity to become part of an international sport event experience (Chapter 17). WMG organisers are seeking 4,000 ‘Pit Crew’, as they have named their volunteer workforce (World Masters Games 2017, 2016). Thus far, organisers have not experienced the challenge that other events and sporting bodies sometimes experience when securing volunteers. Six months out from the Games, organisers indicate that they are on target for volunteer recruitment and have secured 75% of their 4,000 Pit Crew members. ‘Interest continues to build daily and we are confident of attracting the required volunteers to help us deliver the Games’ (J. Wootten, CEO WMG2017, personal communication, 2 November 2016).

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Trish Bradbury and Ian O’Boyle

In addition to the sometimes limited availability of human resources, sport organisations may lack investment and revenue streams. Even though sports, mainly at the professional level, reportedly generate revenue into the millions and even billions, the average regional sport organisation (RSO) or NSO is typically unlikely to be cash rich. As government sport bodies like High Performance Sport New Zealand, Sport England and Sport Canada continue to fund NSOs to varying degrees in the hopes of producing medals at pinnacle events, some organisations, at both the national and regional levels, have trouble keeping their doors open due to ongoing cash flow constraints. Many organisations struggle to deliver their programmes and services and thus we see the rise of user pays or pay as you play options. Also many sport organisations do not have staff with the needed talents and skills to operate and perform at their best. It would be interesting to determine how many RSOs and NSOs have full-time human resource or financial managers. Often these jobs are filled through contracted bodies or are left to the CEO and, if the organisation is big enough, to a division manager. This skills shortage is a concern for many current sport managers and will continue to be one in the future. Finally, the last issue to be discussed is sport governance. As seen in Chapter 10, and often in the media, there are far too many examples of poor governance, which is, and will continue to be, a challenge for sport managers. Chapters 1 and 10 described some governance issues such as those of FIFA, football’s (or soccer’s) international governing body, and provided relevant examples of flawed governance. Governance issues go beyond the strategic management of sport organisations and go as far as to include integrity-related issues like unethical behaviour, corruption, bribery, fraudulent activities, inadequate leadership and the lack of control of performance enhancing drug use. O’Boyle and Bradbury’s Sport Governance: International Case Studies (2013) recognised and exemplified many of these issues from an international perspective. Sport governance issues, although a common educational focus by organisations like Sport NZ and the ASC, will unfortunately be a concern of sport managers into the future.

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REFERENCES iiV…]Ê°ÊEÊ …>`܈VŽ]Ê-°Ê­ `î°Ê­Óää{®°ÊThe business of sport management°Ê>ÀœÜ]Ê1\Ê*i>ÀÜ˜Ê `ÕV>̈œ˜° >ŽœÜˆVâ]Ê -°Ê
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ÌÌi˜Ìˆœ˜Ê i`ˆ>Ê -«>˜Ê >˜`Ê i>Ü>ÀiÊ œÀ̅°Ê ,iÌÀˆiÛi`Ê ™Ê ՘iÊ Óä£ÈÊvÀœ“Ê…ÌÌ«\ÉÉvÕÌÕÀiœv°œÀ}ÉÜ«‡ÊVœ˜Ìi˜ÌÉÕ«œ>`ÃÉ/…i‡ÊÕÌÕÀi‡œv‡Ê-«œÀÌÇÓä£x‡,i«œÀÌ°«`v° "½ œÞi]Ê°ÊEÊ À>`LÕÀÞ]Ê/°Ê­Óä£Î®°ÊSport governance: International case studies°Êœ˜`œ˜\Ê,œÕ̏i`}i° -…ˆLÕÀÞ]Ê °Ê EÊ iiÌÌ]Ê *°Ê ­Ó䣣®°Ê Sport management in Australia: An organisational overview°Ê ÀœÜÃÊ iÃÌ]Ê -7\Ê
i˜ÊEÊ1˜Üˆ˜° -«œÀÌÊ>˜`Ê,iVÀi>̈œ˜Ê iÜʏ>˜`°Ê­Ó䣣®°ÊVolunteers: The heart of sport – The experiences and motivations of sports volunteers°Ê7iˆ˜}̜˜]Ê iÜʏ>˜`\Ê-*
, ° -«œÀÌÊ iÜʏ>˜`°Ê­Óä£È®°Ê œ˜˜iV̈œ˜ÃÊVœ˜viÀi˜ViÊÌ>VŽiÃÊVÀˆÌˆV>Ê̅ˆ˜Žˆ˜}ÊvœÀÊëœÀÌʏi>`iÀðÊ,iÌÀˆiÛi`ÊÓ™Ê ՘iÊÓä£ÈÊvÀœ“ÊÜÜܰëœÀ̘ⰜÀ}°˜âɘiÜÇÊ>˜`‡iÛi˜ÌÃɓi`ˆ>‡ÊÀii>ÃiÇ>˜`‡ÊÕ«`>ÌiÃÉ>À̈ViÃÉVœ˜˜iV̈œ˜Ã‡ ÊVœ˜viÀi˜Vi‡Ì>VŽiÇÊVÀˆÌˆV>‡Ì…ˆ˜Žˆ˜}‡ÊvœÀ‡Ã«œÀ̇ʏi>`iÀð -ޘiÀ}ˆ>°Ê­Óä£x®°ÊFuture of sport in New Zealand°Ê7iˆ˜}̜˜]Ê <\Ê-«œÀÌÊ iÜʏ>˜`°Ê,iÌÀˆiÛi`ÊÓ™Ê ՘iÊÓä£ÈÊvÀœ“ÊÜÜÜ°ÃÀŽ˜œÜi`}i°œÀ}°˜âÉÜ«‡ÊVœ˜Ìi˜ÌÉÕ«œ>`ÃÉÓä£xÉä{ÉÕÌÕÀi‡Êœv‡-«œÀ̇Ê
°«`v° /Ài˜LiÀ̅]Ê°ÊEÊ>ÃÃ>˜]Ê °Ê­Óä£Ó®°ÊManaging sport business: An introduction°Êœ˜`œ˜\Ê,œÕ̏i`}i° 7œÀ`Ê>ÃÌiÀÃÊ>“iÃÊÓä£Ç°Ê­Óä£È]Ê£xÊ>ÀV…®°Ê7œÀ`Ê>ÃÌiÀÃÊ>“iÃÊÓä£Çʘii`ÃÊޜÕtÊ,iÌÀˆiÛi`ÊÓ{Ê ՘iÊÓä£ÈÊvÀœ“ÊÜÜܰܜÀ`“>ÃÌiÀÃ}>“iÃÓä£Ç°Vœ°˜âɏ>ÌiÃ̇ʘiÜÃɓi`ˆ>ÉܜÀ`‡Ê“>ÃÌiÀÇ}>“iÇÊÓä£Ç‡ ˜ii`ÇÊޜՇ>ÇÊ>‡ÛœÕ˜ÌiiÀ°

Index

Page numbers in bold denote figures, those in italics denote tables. 4 Cs of sport marketing 8, 188–9, 189–91, 276 4 Ps of marketing mix 8, 192–5, 276 Abbott, A. 80 Abeza, G. 222 abuse 151; child 15, 16; prevention 16 accountability 108, 110, 119, 145, 273 actual standard deviation 205 Adidas 51, 53 advertising 17, 50, 55, 173, 179, 188, 195 air transport 265 Aisbett, L. 136–7 alcohol 16 All Blacks rugby team 165–6 Allen, J. B. 136 Allen, Paul 155 Alpine Club 264 alternative sports and events 14 Amazon 53 ambush marketing 8, 178–9, 240–1, 276 American football 46, 54–5, 60, 63; Super Bowl 55, 139, 195; see also National Football League (NFL) American Marketing Association (AMA) 185 Ancient Greece and Rome 264 anti-doping rules 9, 16, 233, 235–6 arbitration 233, 234 Armstrong, Lance 6, 16, 207 Arnold, Richard 51 Arsenal Football Club 49, 216 ASC see Australian Sports Commission (ASC) Asian Games 62 associations 28 Athens Olympics (2004) 206 Atherton, M. 101, 102–3 athlete development 7, 75, 76, 77–80, 83, 84–5, 91

athlete pathways 77, 79, 86, 91 athletes/players 7, 44, 45–6; behavioural expectations placed upon 46; factors influencing success of individual 83–4; media interest 46; rights as employees 241–2; as role models 46; salaries 4, 46, 202, 209; and social media 217, 218–19; welfare of 38 Athletic Talent Development Environment (ATDE) model 79, 84 attraction, retention/transition and nurturing (ARTN) of athletes 77, 79 Auckland Football Kingz 98–100 audit 97, 106, 110–11 Australia: anti-discrimination legislation 17; basketball 21, 150; cricket 47, 117; federal model of governance 148; football see Australian Football League (AFL); professional leagues 47; rugby 20, 21, 52; sport facilities 17–18; sport volunteers 132, 134, 135, 137, 138, 139; surfing 138, 268–9; tennis 223, 224 Australian Commonwealth Games Association 150 Australian Football League (AFL) 4, 48, 52, 78, 177; AFL 9s 13; Auskick programme 135; FOX SPORTS PULSE system 135; volunteers 135 Australian Multicultural Foundation (AMF) 22 Australian Olympic Committee Board 150 Australian Open tennis tournament 223, 224 Australian Sports Commission (ASC) 5, 15–16, 35, 117, 134, 148, 150, 276, 278, 280 authentic leadership 8, 166–8, 169 authenticity of sport events 250, 256 Avolio, B. J. 166, 167 Backoff, R. W. 118 Baker, J. 79

Index Baker, L. B. 179 Balanced Scorecard 124–5 Ballmer, Steve 155 Ballouli, K. 217 Bang, H. 136, 138 banned substances 16, 235, 236 Barnes, S. 53 barre classes 14 Bartle, M. 136 baseball 48, 59, 62; internationalisation of 64; Major League Baseball (MLB) 64, 66, 202 basketball 46, 48, 59; internationalisation of 63–4; Midnight Basketball programme 20–1; see also National Basketball Association (NBA); Women’s National Basketball Association (WNBA) Basketball Australia 150 Bass, B. M. 164 Bayle, E. 119–20 Beer, S. 95, 96, 97, 107 Beijing Olympics (2008) 206, 253 Benckendorff, P. 247–8 betting 15, 209, 210 Blatter, Sepp 5, 154 Bloom, B. S. 78 Board of Cricket Control in India (BCCI) 101–3 boards: delegate representative model of composition 147–8; identification and recruitment of members 146; independence 146–7, 156; national sport governing bodies (NSGBs) 32, 33–4; roles in nonprofit sport 146; and strategic planning 116, 119, 120, 128; structure of 146, 156; volunteer nature of 119, 128, 147, 148; women on 146, 149–51 Boston Consulting Group (BCG) 104 Boston Marathon 62 bowls, lawn 14 boxing 15, 47, 150, 237 Boyle, R. 67 Bradbury, J. C. 202 Bradbury, T. 280 brand awareness 173 brand personality 173–4 brand recognition 196 brands 8, 9, 195–6, 215; emic and etic 181; interaction 220, 221; loyalty 216, 220, 222; and social media 216, 217, 218, 219, 220, 221, 222–3, 224; as sponsors 172, 173–4, 181 breach of contract 9, 234 Breuer, C. 136 British Equestrian Federation (BEF) 84–5

283

broadcasting 4, 49, 50, 51, 52–3, 200; Olympics Games 52–3, 153; over the top (OTT) content 53; revenue 3; rights 17; see also media; television Brodie, R. J. 220 Brooklyn Nets 155 Brouwers, J. 78 Bull, C. J. 259–60, 262, 267 bullying 15 Burns, J. 164 Burton, N. 178 Byron Bay, NSW, surfing 268–9 Calgary Stampede 62 Campbell, J. L. 39 Canada: ice hockey 58, 59; lacrosse 58, 59; participation rates 59; sport volunteers 133, 136 canoeing 83 car ownership 265 Carroll, A. B. 38–9, 152 Carter, David 217 CAS see International Court of Arbitration for Sport (CAS) celebrity endorsement 240 Chadwick, S. 178 Chappelet, J. 119–20 charismatic leadership 164 charity fundraising sport events 245 Charlotte Bobcats 155 cheating 9, 15, 151, 207–9, 210, 235–6 Chelladurai, P. 32, 35, 36, 39 Chelsea Football Club 49, 53 Chevrolet 51 Chief Executive Officers (CEOs) 146; national sport governing bodies (NSGBs) 32, 34; and strategic planning 116, 120, 123, 127, 128 Chien, P. M. 173 child abuse 15, 16 child protection policies 16 children and sport 11–12, 59 China 59 Chinn, S. J. 221 Christopher, W. F. 96 Clavio, G. 221 Cleveland Indians 216 climate factors (4 Cs of sport marketing) 189, 191 Cloud9 181 Club Méditerranée 265 clubs see professional clubs coaches 80, 164, 165–6, 167–8, 169, 239 coaching 78, 86 coercive power 161, 162

284

Index

Cold War, and investment in HP sport 76 collective volunteerism 137 Collins, M. F. 263 combat sports 4; see also boxing; martial arts commercialisation 3, 44, 48, 131, 200, 265, 273 commitment, in sponsorship partnerships 176–7 Commonwealth Games 18, 61, 244 Commonwealth Youth Games 61 communication(s) 9, 175, 180, 187, 215, 276, 278–9; marketing 216; two-way 216, 218; and viable system model (VSM) 96, 97, 107–8, 112; see also social media communitas 249, 250 communities 7, 28, 44, 51–2 community development 252 community engagement 254 community sport: events 245, 256; see also grassroots sport community/local pride 140, 245, 252 company (4 Cs of sport marketing) 189, 191 competitions 78, 83; economics of 202–6 competitive balance 203, 204–6, 209, 276 competitors (4 Cs of sport marketing) 189, 191 conflict resolution 21 consumer–brand relationships 221, 222–3, 224 consumer(s) 189, 190–1; behaviour 190–1; demographics 190; product use information 190; purchase behaviour 190 consumption of sport 58, 59; opportunities 60, 61, 62; and social media 67–8, 69 contact sport, legality of 237 contract, breaches of 9, 234 contract law 241 cooperation and collaboration 36, 47 copyright 240 Cornwell, T. B. 173, 178 corporate social responsibility (CSR) 38–40, 52, 152, 174, 275 corporations, as stakeholders 7, 45, 49, 50–1, 55 corruption 4, 5, 40, 154, 156, 236, 274, 280; betting-related 209, 210 cost–benefit analysis 199, 207 cost-plus pricing 193 costs: fixed 202; opportunity 199, 209; variable 202 Côté, J. 78 cricket 150, 264; Board of Cricket Control in India (BCCI) 101–3; Kriket Bilong Olgeta (Cricket Belongs to Everyone) initiative 19; one-day series 13; T20 format 13; World Cups 62 Cricket Australia 47, 117 criminal law 9, 236–8 crossfit 14

Cuban, Mark 155 culture, and high performance (HP) sport 81, 82 Cuskelly, G. 133–4 cybernetics 96 cycling: Tour de France 62, 235, 245; Tour Down Under 249 Dallas Cowboys 48 Dallas Mavericks 155 Darcy, S. 138 Davis, R. 221 De Bosscher, V. 84 De Knop, P. 262 deception 40 demand-oriented pricing method 193–4 democracy 36, 145 demographics, consumer 190 destination marketing 245 destination marketing organisations (DMOs) 268 development goals see sport for development Dietl, H. 66 diminishing marginal product 201–2, 209 disability 16, 19 discretionary responsibility 39 discrimination 15, 16–17 district governing bodies (DSGBs) 29 Dittmore, S. W. 218 diversification in sport tourism 268 diversion, and sport event motivation 247, 256 diversity management 37 Djokovic, Novak 46 Doherty, A. 133 domains of sport 30–2, 41 Donelly, J. H. 161 doping: scandals 6, 16, 53, 207; state-sponsored, Russia 6; see also anti-doping rules; drugs; World Anti-Doping Agency (WADA) double-loop learning 96, 98 drugs: performance-enhancing (PEDs) 3, 4, 6, 15, 16, 151, 207, 208–9, 210; testing 16, 235 Dungy, Tony 167–8 duration of sport events 246 dynamic pricing 194 economic environment 4, 274 economic impact of events 206, 233, 250, 251–2, 256; displacement effect 251; investment 251, 252; new money 251–2 economic responsibility 38, 39 economics 8–9, 198–211, 276; on-field, of an individual athlete or team 200–2; public finance 206–7; of sport leagues and competitions 202–6

Index Edelman, D. C. 220 education, and sport for development (SFD) 20–1 egalitarian sport 6, 30, 31, 32, 41, 275 elite sport 6, 30, 31, 32, 41, 275; see also high performance (HP) sport emic brands 181 employee rights 241–2 employment law 241–2 employment-focused programmes 20 empowerment, of women 19 English Premier League (EPL) 45, 47, 51; internationalisation of 65–6; Kicks programme 20; sponsored logos 67; structure of 65, 66 entertainment sport 6, 30, 31, 32, 41, 275 environmental complexity, in viable system model (VSM) 96, 98 environmental impact: of sport events 250, 251, 253, 256; of sport tourism 266 equality, right to 236 equestrian sport 84–5 escaping and seeking motivation theory 246–7 eSports 4, 180–2, 279 esteem, and sport event motivation 247, 256 ethical responsibility 39 ethics, and governance 8, 151–2, 156, 232 etic brands 181 Europa League 49, 66 European Maccabi Games 62 European Professional Football Leagues (EPFL) 49 European Super League 49 European Union (EU) 35, 232, 241 Eurosport 153 event travel career trajectory 248 events see sport events excellence, pursuit of 38 excitement, and sport event motivation 247, 256 expert power 161, 163, 164 extreme sports 260, 279 Facebook 9, 215, 217–18, 220, 221 facilities see sport facilities Fair Go Sport initiative 15 Fairley, S. 139 fans 48; brand relationships 216, 217, 219, 220, 221, 224; loyalty 217, 220, 224; and social media 216, 217, 218, 219, 221, 222–3, 224; as stakeholders 7, 44, 49, 50–1 Farrelly, F. J. 176–7 Ferkins, L. 34 field hockey 49 FIFA (Fédération Internationale de Football

285

Association) 4, 5, 49, 280; corruption 5, 40, 154, 156; governance and 5, 151, 154, 156, 232; presidents 154; reform 5; World Cups 4, 5, 18, 60, 61, 69, 154, 206, 244 financial constraints, non-profit sport 136 financial management 4–5, 37 financial reporting 108 firm, the: definition of in sport 199, 209 fitness programmes 14 flow experiences 249–50, 256 football 48–9, 78; club ownership 48; league revenue sharing 66; see also American football; Auckland Football Kingz; Australian Football League (AFL); National Football League (NFL); soccer (football) Football Association (FA) 232 for-profit companies 189 Francophone Games 62 Fraser-Thomas, J. 78 fraud 40 Frederick, E. L. 219 free agency 205 French Jr, J. R. 161, 163 Friedman, M. 38 funding: generation of 37; government 4, 9, 17–18, 200, 206–7, 210; income mix 4, 5; sources of 4–5; see also sponsorship Funk, D. C. 247 gambling 15, 209 game theory 208 Gammon, S. 262 Garcia, Michael 154 Gay Games 62 gender 19; differentiation 17; diversity 149–51 geopolitics 4, 274 German Democratic Republic, HP sport investment 76 Germany 154; Bundesliga 66; sport volunteers 133, 136 Getz, D. 263 Giannoulakis, C. 139 Gibbs, C. 218 global sport environment 7, 58–71, 275 globalisation 48, 51–2, 265, 270, 274 Glyptis, S. A. 263 goals 7, 86, 87, 117, 121, 122, 123–6, 127, 145, 161, 164; sponsorship-specific 176–7 going-rate pricing method 193 golf 14, 267; Ryder Cup 62, 223–4 good governance 35–6, 41, 145–6 Good Sport programme 16 Goodsetin, L. 121

286

Index

Google 53 governance 5–6, 34–5, 232–3, 234, 274, 276, 280; academic research and 147–8; and ethics 8, 151–2, 156, 232; failures 3, 5, 151, 280; federal model of 146, 148, 149; good 35–6, 41, 145–6; non-profit sport 5, 8, 145–54, 156; and Olympic Games 152–3; professional sport 8, 155, 156, 232; unitary model of 148–8; role of women in 8, 149–51, 156; see also boards governing bodies 6–7, 27–8, 44, 45, 48–9, 232–3, 234, 239; see also national sport governing bodies (NSGBs); and names of individual bodies government intervention 14–18; discrimination and safe sport 15, 16–17; facilities development and construction 17–18; funding 4, 9, 17–18, 200, 206–7; gambling policy 15; health promotion 14–15; integrity in sport 15–16; media regulation 17; nationbuilding and national identity 18 grassroots sport 12–13, 117; financial constraints 136; safety issues and participation in 60–1; sponsorship 172; technical and administrative innovation in 136; volunteering in see sport volunteers Greenleaf, R. K. 168 Gubler, R. 141 Gulbin, J. 79, 80 Güntert, S. 138 gymnastics 59, 150 Hajkowicz, S. A. 278 Hallmann, K. 133, 139 hallmark sport events 245, 256 handball 150 harassment 15 harm: do no harm principle 39–40, 238; rectification of 40 Harms, G. 139 Hayne, Jarryd 54–5 health, and sport for development (SFD) 20 health policy 14–15; physical activity guidelines 15; public awareness and education programmes 15; tax incentives 15 healthy eating 20 Henriksen, K. 79, 83–4 Henry, Sir Graham 165–6 high performance (HP) sport 7, 75–94, 274, 275; athlete development 7, 75, 76, 77–80, 83, 84–5, 91; and Cold War politics 76; determinants of managing 7, 75, 81–5 (macro level 81–2, 84–5, 87; meso level

82–3, 84, 87; micro level 83–5, 87); managing HP sport distinguished from HP sport management 75–6; Papua New Guinea case study activity 88–90; policies 82, 83, 86, 88; strategic management 7, 75, 77, 86–90, 91; and viable system model (VSM) 107–11; see also elite sport Higham, J. 259, 262, 263, 266, 270 Hinch, T. 259, 262, 263, 266, 270 hockey see field hockey; ice hockey Hoeber, L. 136 holiday entitlement, and sport tourism 264–5 homophobia 15 horse racing 15 Horton, S. 79 hospitality 174, 180 hosting opportunities 61 hot yoga 14 Hoverstadt, P. 96 Hoye, R. 136–7 Huddle, The (case study) 21–2 human capital 175; sport volunteers 133, 137 human resource management 273; and sport volunteers 131, 132, 133–7, 275 Humphreys, B. R. 66 Hutchins, B. 68 Hutchinson, M. 217 IAAF see International Amateur Athletic association (IAAF) iBUYPOWER 181 ICC see International Cricket Council (ICC) ice hockey 58, 59; internationalisation of 64–5; World Cups 62; see also National Hockey League (NHL) ideal standard deviation 205 image rights 229 image of sport, protection of 37 IMGA (International Masters Games Association) 13 impacts of sport events: economic 206, 233, 250, 251–2, 256; environmental 250, 251, 253, 256; negative 251, 256; positive 251, 256; social 250, 251, 252–3, 256 income mix 4, 5 information flows 96, 107–8, 110, 112 infrastructural developments 252 Inglis, Greg 200–1 Instagram 9, 215, 217, 219 institutional subsystem 35; of national sport governing bodies (NSGBs) 32, 33, 41 integrity in sport 15–16, 280 intellectual property 9, 239–40 intercollegiate athletics, United States 35

Index International Amateur Athletic association (IAAF) 30, 53 International Court of Arbitration for Sport (CAS) 233, 236 International Cricket Council (ICC) 13, 19 International (Field) Hockey Federation (FIH) 49 International Masters Games Association (IMGA) 13 International Olympic Committee (IOC) 4, 5, 35, 52, 152–3, 194, 232–3, 235, 259; candidate city evaluation 253; Executive Board composition 149; Rule 40 179; and women in sport 149 internationalisation 274, 279; of professional leagues 60, 62–5, 68–9 Invictus Games 62 IOC see International Olympic Committee (IOC) Islamic Games 62 Jacobs, Brandon 219 Jacobs, Jeremy 277 Jacobs, T. O. 161 Johnson, Ben 207, 235 Johnson, Glory 219 Jones, Marion 207 Jordan, Michael 155 Journal of Sport and Tourism 259 Joyce, P. 118 judo 150 Kaplan, R. S. 124–5 Kassing, J. W. 217, 219, 220 Kearns, K. P. 148 Kerwin, S. 140 key performance indicators (KPIs) 108, 127 Kodama, E. 139–40 Korea 154; sport volunteers 138 Krautman, A. C. 202 Kristiansen, E. 140 Kurtzman, J. 124 Kuypers, T. 47 lacrosse 58, 59 Lavallee, D. 78–9 law 9, 229–30, 231, 233–42, 276–7; contract 241; criminal law 9, 236–8; employment 241–2; and internal governance of sport 234; tort law 9, 236, 238–9 lawn bowls 14 leadership 8, 38, 159–71, 275, 276; authentic 8, 166–8, 169; charismatic 164; definitions of 161; and management distinguished 160, 169; power and influence 161–4; servant 8, 168–9; transformational 8, 164–6, 169

287

leagues see professional leagues learning loops 96, 98 Lee, C.-K. 138 legacy 61, 244, 252, 256 legal environment 4 legal responsibility 38–9 legitimate power 161, 162, 163–4 Leicester City Football Club 65–6, 169, 231 leveraging 173 liminality 249, 256 line of sight 127 livelihoods, improvement of 19–20 Liverpool Football Club 49 local pride 140, 245, 252 local sport events 245, 256 logos 196; sponsored 67 London Olympics (2012) 82, 149, 153, 206, 254, 255 Long Term Athlete Development (LTAD) model 84, 85 Los Angeles Clippers 155 loyalty: brand 216, 220, 222; fan 217, 220, 224 Luthans, F. 166 McCarthy, Jerome 192–3 McHugh, J. 278 Maennig, W. 206 Major League Baseball (MLB) 64, 66, 202 major sporting events 245, 256 managerial subsystem 35; of national sport governing bodies (NSGBs) 32, 33, 41 Manchester City Football Club 49 Manchester United Football Club 49, 51, 53 marginal product 201; diminishing 201–2, 209 marginal revenue 203, 204 marginal revenue product (MRP) 202 market segmentation 8, 191–2; volunteer 134 marketing 180; ambush 8, 178–9, 240–1, 276; defined 185; destination 245; marketing mix 8, 192–5, 276; relational 221; sponsorshiplinked 173; target 192, 195; see also sport marketing marketing communication 216, 220 markets 28 martial arts 230, 237 Martinet, A. C. 118 Mason, D. S. 50 mass participation sport events 245, 246, 256 match fixing 3, 4, 15, 151, 236 media 46, 252–3; ownership 17; regulation of 17; rights deals 49, 52–3; as stakeholders 7, 45, 49, 52–4, 55; see also social media; television

288

Index

Meenaghan, T. 179 mega sporting events 4, 18, 59–60, 200, 261; definition of 244; economic impact of 206, 252; public funding of 206–7; trade impact of 206; volunteers 138–40, 279 member protection policies 16 merchandise 49, 174, 250 meta-system 97 Mexico Olympics (1968) 16 migration 21–2 Miskimmin, Peter 278, 279 mission 87, 97, 189 mission statements 117, 121 missionary values 96 modified sport programmes 13 monopoly, national sport governing bodies (NSGBs) as 29–30 monopsony, national sport governing bodies (NSGBs) as 29–30 motivation: sport tourist 260, 262, 263; sport volunteer 132, 134, 137, 138–9, 140, 141; see also sport event motivation motor racing 47 mountaineering 264 mud runs 14 multiculturalism 22 Nash equilibrium 208–9 nation-building 18 National Anti-Racism Strategy, Australia 15 National Basketball Association (NBA) 46, 51, 175; governance of 155; internationalisation 63–4; revenue sharing 66; sponsored logos 67; weighted lottery system 209 national engagement 254 National Football League (NFL) 46, 54–5, 151, 167–8; governance of 155; internationalisation of 63; revenue sharing 66 National Hockey League (NHL) 64–5; revenue sharing 66 national identity 18 National Olympic Committees (NOCs) 149, 152, 153 national pride 18, 231, 254 National Rugby League (NRL), Australia: corporate social responsibility (CSR) programmes 52; League Bilong Laif (League for Life) programme 21; School to Work programme 20 national sport governing bodies (NSGBs) 7, 27–43, 274, 275, 280; apical responsibilities of 36–8, 41; board of directors 32, 33–4; Chief Executive Officer (CEO) 32, 34; compared to a state 38–9,

41; and domains of sport 30–2, 41; horizontal differentiation of units within 32; institutional subsystem 32, 33, 41; managerial subsystem 32, 33, 41; managing subunits of 35–6; as a monopoly and monopsony 29–30; social responsibility 30, 38–40; technical subsystem 32–3, 41; vertical differentiation of units within 32–5 national sport organisations (NSOs) see national sport governing bodies (NSGBs) natural resources, and sport tourism 260–1, 266, 269 NBA see National Basketball Association NBC (National Broadcasting Company), US 52–3, 153 negligence, tort of 9, 238–9 netball 150; Come on Tonga, Let’s Play Netball! programme 20; NetFit initiative 14 Netflix 53 New York Yankees 48 New Zealand, sport volunteers 132 New Zealand Rugby Football Union (NZRFU) 4, 103–7 Newton, C. 136 NFL see National Football League (NFL) NHL see National Hockey League (NHL) Nike 51, 195–6 NOCs see National Olympic Committees (NOCs) non excludable public good 207 non-profit sport 189; financial pressures 136; funding 4–5; governance 5, 8, 145–54, 156; strategic management and planning 7, 116–29; see also high performance (HP) sport; national sport governing bodies (NSGB); public (government) funding non-rival goods 207 North America: sport leagues (internationalisation of 62–5, 69; structure of 65); see also Canada; United States North American League of Legends Championship Series 181 North Melbourne Football Club (NMFC) 22 Northouse, P. G. 161 Norton, D. P. 124–5 Norway, sport volunteers 137, 140 NRL see National Rugby League (NRL) Nutt, P. C. 118, 121 Nuzman, Carlos Arthur 254 obesity 4, 15 O’Boyle, I. 280 O’Brien, W. 133–4 Oceania Games 62

Index older adults 13 Olympic Charter 13, 149 Olympic Games 4, 59, 60, 69, 194, 232–3, 244, 261; Athens (2004) 206; Beijing (2008) 206, 253; broadcasting rights 52–3, 153; economic impact of hosting 206; governance 152–3; host city selection 253; hosting opportunities 61; impacts on host city 254–5; local organising committees (LOCs) 153; London (2012) 82, 149, 153, 206, 254, 255; Mexico (1968) 16; and nationbuilding and national identity 18; and national engagement 254; National Olympic Committees (NOCs) 149, 152, 153; Rio de Janeiro (2016) 5, 61, 153, 254; sponsorship 153, 174, 179; Sydney (2000) 139, 254, 255; Youth 61, 274; see also International Olympic Committee (IOC); Winter Olympics Olympic movement 13, 232 opportunity cost 199, 209 organisational culture 131 organisational design 35, 96 organisational identity 96, 97, 111 organisational performance 123–5; and organisational structure see viable system model (VSM) organisational purpose 96, 97, 111 organisational values 96, 97, 111 Organising Committee for the Olympic Games (OCOG) 152 Ostapchuk, Nadzeja 207 Oster, S. M. 121 Otago Rugby Union 4 output in sport 199 over the top (OTT) content 53 ownership, of professional clubs/teams 48, 155 Pan American Games 62 Paralympics 83, 194 parity, and professional leagues 203–4, 209–10, 276 Parsons, T. 35 participant sport industry segment 186 participation in sport 58; children 12, 59; constraints on 60–1; mass participation events 245, 246, 256; modified versions to encourage 13; older adults 13–14; opportunities for 60–2; rates of, Canada 59; safety issues 60–1; sport event motivation 247–8, 250, 256; sport tourists 260, 261 passing off problem 240 patriotism, and sport volunteer satisfaction 138

289

pay: and performance 202; superstar athletes 202, 209; see also salaries peace building 21 Pearce, P. 247–8 Pegoraro, A. 219, 220, 221 performance: and pay 202; and sport event motivation 247, 256; and team selection 200–2 performance appraisal 127–8 performance management: individual 127–8, 128; see also organisational performance Performance Prism 124 performance-enhancing drugs (PEDs) 3, 4, 6, 15, 16, 151, 207, 208–9, 210 periodicity of sport events 246 PEST analysis 89 Pfahl, M. E. 217 Philadelphia 76ers 67 physical activity guidelines 15 physical education 12 Pilates 14 Pitts, B. G. 185 place dependency 9, 266–7 place (marketing mix) 192, 194 Platini, Michel 154 Play by the Rules initiative 15 players see athletes/players playing culture 237 playing rules 234, 237, 239 policy: and high performance (HP) sporting success 82, 83, 86, 88; see also health policy political environment 4 politics, and high performance (HP) sport 81–2 population, and international sporting success 81 Portland Trailblazers 155 power: coercive 161, 162; expert 161, 163, 164; legitimate 161, 162, 163–4; referent 161, 163, 164; reward 161–2 Price, J. 209 price/pricing 187–8; cost-plus 193; demandoriented 193–4; dynamic 194; going-rate 193; and marketing mix 192, 193–4; seasonal 194 pride: local/community 140, 245, 252; national 18, 231, 254 Priestley, G. K. 263 prisoner’s dilemma 209 product development 38 product (marketing mix) 192, 193 productivity, player 201–2 professional clubs: cooperation between 47; ownership 48, 155; as stakeholders 7, 44, 45, 47–8; value of 48

290

Index

Professional Golfers Association (PGA) 223, 224 professional leagues 7, 44, 45, 46–7, 245, 275; cartel-like practices 47; commissioners 155; competitive balance 203, 204–6, 209, 276; economics of 202–5; internationalisation of 60, 62–5, 68–9; parity in 203–4, 209–10, 276; promotion and relegation battles 47; reserve clause system 204–5; revenue sharing 66; reverse order entry draft 205, 209; structure of 65–7; see also Australian Football League (AFL); English Premier League (EPL); European Professional Football Leagues (EPFL); Major League Baseball (MLB); National Basketball Association (NBA); National Football League (NFL); National Hockey League (NHL); UEFA, Champions League; UEFA, Europa League professional sport 7, 44–57, 59, 274, 275; broadcasting see broadcasting; media; defined 45; globalisation of 48, 51–2; governance 8, 155, 156, 232; stakeholders (external) 7, 44–5, 49–54, 55, 275; (community 7, 44, 51–2; corporations 7, 45, 49, 50–1, 55; fans/spectators 7, 44, 49, 50–1; media 7, 45, 49, 52–4, 55); stakeholders (internal) 7, 44, 45–9, 55, 275; (athletes 7, 44, 45–6; clubs 7, 44, 45, 47–8; governing bodies 7, 44, 45, 48–9; leagues 7, 44, 45, 46–7); see also professional clubs; professional leagues professionalisation 12, 131, 273, 274 professionalism 3 promotion (marketing mix) 192, 194–5 promotional mix 195 provincial sport governing bodies (PSGBs) 29 psychic income 252, 254 psychographics, consumer 190 psychology 78 public awareness and education programmes 15 public good 207, 210 public (government) funding 4, 9, 17–18, 200, 206–7, 210 Qatar: Football World Cup (2022) 5, 154; sport volunteers 139 Quester, P. 176–7 racism 15 railways 264 Ranieri, Claudio 169 ratio of standard deviations (RSD) 205 Raven, B. 161, 163

Raw, Katherine 21–2 Real Madrid 48 recruitment: of board members 146; of sport volunteers 132, 133–4, 135 referees 239 referent power 161, 163, 164 reflexive volunteerism 137 regional competitions 62 regional sport organisations (RSOs) 29, 280 relational marketing 221 religious belief 16 requisite variety, in viable system model (VSM) 96, 98, 107, 108 reserve clause system 204–5 resourcing 76, 82, 97, 108, 110, 111 retention, volunteer 132, 134, 135, 136–7 revenue 49, 280; broadcasting 3; marginal 203, 204; sharing 37, 44, 66, 205; tourism 251, 252 reward power 161–2 Reynolds, Harry 30 Richter, F. 206 Riecke, M. 168 Riggio, R. E. 164 rights 229, 236; employee 241–2; equality 236; image 229 Rio Olympics (2016) 5, 61, 153, 254 Robinson, T. 262 role models: athletes as 46; leaders as 165 Rose, A. K. 206 Rothschild, P. C. 216 Rottenberg’s invariance principle 205 Rowe, D. 68 Rowing New South Wales, strategic plan 125–6 rugby 4, 59, 150; internationalisation of 65; Rugby Sevens 13; safety issues 60–1; United States 65; Wales 59; World Cups 61, 62; see also National Rugby League (NRL); New Zealand Rugby Football Union (NZRFU); Rugby Football Union (RFU) Rugby Football Union (RFU) 63 rules: playing 234, 237, 239; safety 234, 239 Running of the Bulls 62 Russia: Football World Cup (2018) 5, 154; statesponsored doping 6; see also Soviet Union Ryder Cup 62, 223–4 safety issues 15, 16, 60–1 safety rules 234, 239 salaries: athletes/players 4, 46, 202, 209; men’s versus women’s 46 salary caps 66, 205 Sanderson, J. 217, 219, 220

Index satisfaction, sport volunteer 136–7, 138, 139 Saudi Arabia 154 Scanlon Foundation 22 scarcity 198, 199, 209 Schemerhorn, J. R. Jr. 163 Schlesinger, T. 134, 141 school sport 12, 61 Scully, G. W. 202 seasonal pricing method 194 Seattle Seahawks 155 self-actualisation 247–8, 256 self-development 247–8, 256 self-regulation 231, 234 Sense of Community in Sport Scale (SCS) 140 servant leadership 8, 168–9 sexual health 20 sexuality 16 Sharapova, Maria 6 shareholders 145 Shilbury, D. 34 Shute, R. 54 Siegfried, J. 206 Siltanen, R. 55 single-loop learning 96, 98 Skechers 55 skiing 264, 266–7 skills development 78 Slack, T. 121 Smith, A. 44, 45, 46, 47 soccer (football) 49, 60, 68–9, 78, 230; club ownership 48; and employee rights 241; governing bodies 49, 232; league revenue sharing 66; walking 13–14; World Cups 4, 5, 18, 60, 61, 69, 154, 206, 244; see also English Premier League (EPL); FIFA (Fédération Internationale de Football Association); UEFA Sochi Winter Olympics (2014) 153, 206 social capital: and sport events 252; and sport volunteers 131, 137, 138 social cohesion 21–2, 131 social environment 4, 274 social impact of sport events 250, 251, 252–3, 256 social media 7, 9, 17, 49–50, 67–8, 69, 215–28, 275, 276, 278–9; athletes and 217, 218–19; brands and 216, 217, 218, 219, 220, 221, 222–3; challenges of using 221–4; and consumer–brand relationships 221; definitions of 216; fans and 216, 217, 218, 219, 221, 222–3, 224; and marketing 216, 218, 219, 220, 221–2; and off season brand experiences 222;

291

sport organisations use of 216–17, 218, 220, 221–4 social responsibility 30, 38–40, 52, 152, 174, 275 socialisation 23; and sport event motivation 247, 256 society, impact of sport in 6, 11–26, 274 sociology 187 `soft power’ of sport 61 softball 150 Sons of the West health initiative 20 Sotiriadou, P. 77, 79, 80, 84 South American Games 62 Soviet Union, HP sport investment 76 Special Olympics 62 specialisation 200; national 82; of sport participation for children 12; and sport tourism 268, 269 spectators: sport event motivation 246–7, 256; as sport tourists 261 Spiegel, J. J. 206 SPLISS (Sport Policy factors Leading to International Sporting Success) model 83, 84–5, 88 sponsorship 4, 5, 8, 37, 49, 51, 53, 55, 67, 172–83, 196, 276; and ambush marketing 8, 178–9, 276; brands and 172, 173–4, 181; conflict of goals 175–6; defining 173; duration 175; eSports 180–2; exclusivity 175; grassroots level 172; leveraging and activation 173; measuring 179–80; Olympic Games 153, 173, 179; partnership success characteristics 176–7; price issues 175; soliciting 177–8, 180–2; sources of failure 177; sport properties reasons for seeking 174–5; tobacco 15; trends in 180; trust and commitment factors 176–7; value in kind (VIK) 175 sponsorship-linked marketing 173 sport: as an activity 230; as a business 230–1; definition of 230; organisational structure of 232–3; popular understandings of what is meant by 230–1; as source of pride and joy 231; `special nature’ of 231 sport business degrees 185–6 sport business industry 185–6, 230–1 sport business management 273 Sport Canada 280 sport context 45 sport development: adopting an informed and strategic approach to 80; non-empirical versus evidence based approaches to 79–80; pyramid 79–80; skills development versus organisational approaches to 78–9

292

Index

sport for development (SFD) 18–22, 23; disability programmes 19; and education 20–1; and health 20; and livelihoods 19–20; peace and social cohesion 21–2; volunteers 140; women and girls 19 Sport England 280 sport event experience 248–50; augmented activities and 249; authenticity of 250, 256; communitas and 249, 250; flow experiences 249–50, 256; liminal experiences 249, 256 sport event motivation 246–8, 256; escaping and seeking motivation theory 246–7; participants 247–8, 250, 256; push and pull motives 246, 247, 256; spectators 246–7, 256; see also sport volunteers, motivations sport events 9, 243–58, 277; charity fundraising 245; classification of 243–6, 256 (size 244, 256; sporting characteristics 245–6, 256; temporal characteristics 246); hallmark 245, 256; impact of see impacts of sport events; legacy 61, 244, 252, 256; local/community 245, 256; major 245, 256; mass participation 245, 246, 256; see also mega sporting events sport facilities 17–18; public funding of 206, 210 sport involvement 9, 267 sport marketing 8, 184–97, 276; 4 Cs of 8, 188–9, 189–91, 276; defined 184–5; marketing mix (4 Ps) 8, 192–5, 276; process of 187–9; research 189–91; and social media 216, 218, 219, 220, 221–2 Sport Marketing Management Model 187, 188 sport medicine 86 Sport New Zealand (Sport NZ) 5, 107, 276, 278, 279, 280 sport organisations: and athlete development 77–8, 79; and social media 216–17, 218, 220, 221–4; see also non-profit sport; and names of individual organisations sport properties 172, 173, 174–5 sport psychology 78 sport science 78, 86 sport tourism 9–10, 62, 244, 259–72, 277; activities classification 262; diversification strategy 268; environmental impact of 266; historical development 263–5; and holiday entitlement 264–5; and natural resources 260–1, 266, 269; planning 267–9; resources 265–7; revenue 251, 252; specialisation strategy 268, 269; and technology 263, 270; and transportation 9, 261, 264, 265

sport tourists: motivations 260, 262, 263; participants 260, 261; spectators 261 sport volunteers 130–44, 275, 279; attitudes to volunteering 134; autonomy 140; episodic/ event 137, 138–41; in grassroots sport 7–8, 130–44, 279; human capital 133, 137; human resource management considerations 131, 132, 133–7, 275; long-term 137–8, 139, 140; market segmentation 134; mega events 138–40, 279; motivations 132, 134, 137, 138–9, 140, 141; pioneer 139; recruitment of 132, 133–4, 135; retention 132, 134, 135, 136–7; role/job uncertainty 140; satisfaction 136–7, 138, 139; sense of community 140; social capital 131, 137, 138; sport for development 140 sporting goods industry 186 squash 159 stakeholder analysis 89 stakeholders 145; and athlete development 78, 79; and strategic planning 119–20, 121, 128; see also professional sport, stakeholders Standeven, J. 262 STARCLUB programme, South Australia 135 state, national sport governing bodies (NSGBs) compared to 28–9, 41 Stavros, C. 218 Sterling, Donald 155 Stewart, B. 44, 45, 46, 47 Stotlar, D. K. 185 strategic compatibility, and sponsorship partnerships 177 strategic management and planning 7, 116–29, 275; and academic research 118–19, 121; Balanced Scorecard as tool for 124–5; board members and 116, 119, 120, 128; CEOs and 116, 120, 123, 127, 128; cyclical model for 119, 120; and goals 7, 123–5; high performance (HP) sport 7, 75, 77, 86–90, 91; individuals’ role in achieving strategic objectives 127–8; and performance management 7, 123–5, 128; Rowing New South Wales case study 125–6; stakeholders and 119–20, 121, 128; strategy evaluation 87; strategy formulation 87, 119–22; strategy implementation 87, 123; and SWOT analysis 89, 122–3, 128; volunteers and 119, 128 strategy, as a term 86 Super Bowl 55, 139, 195 superstar athletes, pay 202, 209 Surf Life Saving Australia (SLSA) 138

Index surfing, Byron Bay, News South Wales 268–9 swimming 59 Swisher, Nick 217 Switzerland, sport volunteers 134 SWOT analysis 89, 122–3, 128 Sydney Olympic Games (2000) 139, 254, 255 Szymanski, S. 47 talent identification and development 61–2, 77, 83, 86; see also athlete development tanking 9, 15, 209, 210 target marketing 192, 195 tax incentives 15 team selection, and performance 200–2 technical innovation, and grassroots sport 136 technical subsystem 35; of national sport governing bodies (NSGBs) 32–3, 41 technological environment 4, 274 technology, and sport tourism 263, 270 television 265; advertising 195 tennis 14, 83, 150; Australian Open 223, 224; cardio 14; circuit 62; Fast 4 13; professional 46, 53 Thailand 154 ticketing 18 tobacco sponsorship 15 Toronto Raptors 63, 64 tort law 9, 236, 238–9 Tour de France 62, 235, 245 Tour Down Under 249 tourism see sport tourism Townley, S. 178 trademarks 240 training 78; of volunteers 128 transformational leadership 8, 164–6, 169 transparency 35, 145 transportation, and sport tourism 9, 261, 264, 265 trends and challenges in sport management 277–80 Treuren, G. 132 triathlon 150 trust 37; and sponsorship partnerships 176–7 Twitter 9, 215, 217, 218–19, 220, 221 UEFA 232; Champions League 49, 66; Europa League 49, 66 UK Sport 5, 276 Ultimate Fighting Championship (UFC) 4 Union of European Football Associations see UEFA Union Royale Belge des Sociétés de Football Association ASBL v. Bosman 241 United Arab Emirates 59

293

United States: anti-discrimination legislation 17; baseball 48; basketball 20–1, 46, 48; football 46, 54–5, 60, 63; intercollegiate athletics 35; rugby 65; sport volunteers 136, 139, 140; see also Major League Baseball (MLB); National Basketball Association (NBA); National Football League (NFL); Women’s National Basketball Association (WNBA) V Star initiative, South Australia 135 Vancouver Winter Olympics (2010) 61, 65, 139–40 VanSickle, J. L. 139 variety, in viable system model (VSM) 96, 98 variety engineering 96, 98 Vella, S. A. 168 viability, in viable system model (VSM) 96, 98 viable system model (VSM) 7, 95–115, 275; cases (Auckland Football Kingz 98–100; BCCI (Board of Cricket Control in India) 101–3; Essendon Football Club 100–1; high performance (HP) sport 107–11; New Zealand Rugby Football Union (NZRFU) 103–7); conceptual underpinnings 97–8; overview 96–7 vision statements 117, 121 volleyball 59 volunteer board members 147, 148; and strategic management process 119, 128; training and development 128 volunteerism: collective 137; reflexive 137 volunteers, sport see sport volunteers Walden, J. 221 Wales, rugby union 59 Walking Football 13–14 Wallace, L. 220 Watanabe, N. M. 66 Waters, R. D. 221 wealth, and international sporting success 81 Weed, M. E. 259–60, 262, 267 Weeks, C. S. 173 Welty-Peachey, J. 140 Wenz, M. G. 66 Wicker, P. 136 Williams, J. 221 winning percentages 203–4 Winter Olympics 65; Sochi (2014) 153, 206; Vancouver (2010) 61, 65, 139–40 Wollebæk, D. 137 women: discrimination against 16; empowerment of 19; salaries 46; in sport governance positions 8, 149–51, 156; see also gender

294

Index

Women’s National Basketball Association (WNBA) 220, 221 World Anti-Doping Agency (WADA) 6, 16, 233, 235 World Anti-Doping Code 16 World Baseball Classic 62, 64 World Cup of Hockey 62 World Health Organization (WHO) 5, 14 World League of American Football 63 World Masters Games (WMG) 13, 274, 279 World Military Games 62 World Police and Fire Games 62

World Rugby 59, 60 World Scholar Athlete Games (2011) 140 World Tourism Organisation 259 World University Games 62 Wylleman, P. 78–9 youth competitions 61–2, 274 YouTube 53 Zimbalist, A. 206 Zintz, T. 36 Zvikas, Lukas 46