The amount of money to operate for sports events are increasing every year, such as FIFA World cup, ICC Cricket world cup, FedEx cup, UEFA Europa League, the world series, Super Bowl, UEFA Champions League, Asian Games, Winter and summer Olympic and even Paralympic as well. Sporting events are parties that break from daily routine. But, these days, sports events are not just a big event to enjoy or team competes against others. Global Sports events became a turning point for host country, which have been rise for years. Economic benefits is one of the main arguments used by leaders of host nations to justify the huge expenditure connected to organizing international sporting events. (#1)This is why countries are taking risk to spend huge amount …show more content…
Revenue is the money coming in through exchange of money for selling goods, products and provide service. Revenues is the key of an event’s potential success. During the sport events selling the merchandise for fans or tourist generates the revenue. Also, purchasing tickets by spectators to attend the events generates the revenue as well. Moreover, they might purchase food and beverage while attending event, creating another revenue. Because of this, business realized organizing big sports event leads to the successful financial statement and economic benefits. Furthermore, the average number of attendance in usual league games are much lower than number of attendance during the big sporting events. Korean league soccer for example, average attendance at K-league matches are 3000 whereas average attendance during 2002 World cup was about between 40000 and 50000. Besides, the number of attendance at K-league increased after the 2002 World Cup. Various benefits follow by big sport events results in increase of budgeting to produce better events to boost up …show more content…
Extensive construction led to hotel overcapacities, and there is no coherent plan for the after use of venues and some of the largest infrastructure projects. Also, some events did not manage to develop the host countries’ image in the world. Because of this, governments and organizations are reducing the budgets but their expectations are still increasing for hosting the sport events in their
Sporting is one of the universal activities that brings people from different backgrounds together and is viewed as an income generating activity that creates revenue for the participants as well as the location where the activities are held. The NCAA Final Four Basketball Tournament is one of the most anticipated sporting events in the US that attracts a high number of fans in the cities where it is held. Before the Final Four is held in given location, it is imperative for the organizers to have a detailed understanding of the venue so that they can introduce marketing strategies that are in line with the demands of the fans (Snipes & Ingram, 2007). The host committee is charged with the responsibility to come introduce an exhilarating experience for the locals and visitors. Owing to the interest generated
Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
Noll, Roger, and Zimbalist, Andrew. Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums. Brooking institutions press, Summer 1997. Vol. 15 No. 3.
The Reasons Behind the Increasing Commercialism of the Olympic Games The Olympic Games is a world wide event, held once every 4 years. It is the most important event amongst the elite athletes of today. It is viewed on television by billions of people across the world, by satellite transmission (started in Tokyo in 1964). This worldwide viewing attracted sponsors as they realised that by supporting the Olympics their product would be advertised on every product sold, as they would be the 'official sponsor'. The advances in technology has played a fundamental role in the increase in commercialism, as large sums of money are put forwards for television rights over the Games from companies such as Sky, the BBC and ABC.
The sports industry is a very big business that contributes great amounts to the economy in terms of turnover, taxes and jobs. The sports industry has an economic cycle. So it depends on different parts of the year to hold big events. The benefits to be gained are that local communities as suppliers of services and goods obtain increased business.
It was estimated that the Olympic Games 2012 would involve more than 11,000 athletes and officials, 1 million visitors from around the world, and 4 billion television audiences, or more. Therefore, it was important to ensure that the Games preparations were ready on time, delivered high standard sports facilities to the sports professionals while controlled spending within budget.
From 2001 2002 there was a 23% increase in the construction of sports stadiums and arenas with costs of those facilities upwards of $7.8 billion. The growing global sport industry requires that sport facility and event management keep current of new and proven management techniques. Sport Facility Management: Organizing Events and Mitigating Risks by Ammon, Jr., Southall, and Blair, provides readers with a basic introduction to elements of facility management for the full range of sporting and entertainment events. There is a high demand for individuals who are educated and trained in facility management, event organization, and risk management and since the September 11 attacks there has been a great emphasis placed on facility and risk management. Each chapter provides theoretical foundations and practical applications for each critical phase of facility management. The authors provided photographs, case studies, and industry examples to assist the reader in gaining an overall basic, picture of the sporting event and entertainment industry today. The book provides in-depth discussions about positive advances that have made the entire experience easier and more comfortable for fans; and about the negative economic and cultural consequences for sport events after September 11 2001.
One may disagree that hosting Olympics is not worthwhile as it requires a city or a country to bring out an enormous sum of money for the preparation and planning of hosting the Olympics. Zimbalist (2012, pp. 116) says that the summer Games roughly generates a total of $5-$6 billion and almost half of it belongs to the International Olympic Committee. On the other hand, the cost of the games has increased roughly
Since it began in 1930, the FIFA World Cup has been the largest single event sports competition in the world. Every four years FIFA, the Fédération International de Football Association, calls upon thirty-two of the world’s greatest soccer teams to compete in the stadiums of the host country. In addition to having one of the top competing teams, Brazil will also be hosting the 2014 FIFA World Cup. The 31 day tournament begins in Sao Paulo on June 12th and ends with the championship match in Rio de Janeiro on July 13th. In recent months Brazil has been busy preparing to host the tournament in twelve brand new stadiums around the nation. The World Cup will cost Brazil an estimated fourteen billion dollars, an amount that continues to increase as plans for the tournament become more elaborate. The amount of money the country will be spending on the tournament angers many of the nation’s citizens. Protests have become a daily occurrence in Brazil as citizens rally against the construction of stadiums and the arrangement of the expensive tournament. It has been argued that hosting the World Cup will benefit Brazil’s businesses and economy; however, the upper class will profit from the publicity of the games, not the thirty-five percent of the population living under the poverty level. The 2014 FIFA World Cup should not take place in Brazil due to the need for improvements in law enforcement, education, and the threat of extreme poverty.
Commercialization is the process of introducing a product to either a mass or niche market. Owners, often, encourage such commercialization because it helps to expose their team or sport to larger audiences, which will help generate revenue. Commercial sport is something not all people are comfortable with or like. I think that it has its place within professional sports alone. But we are seeing it more and more at the college level with Div. 1 NCAA Men’s Basketball and Football. At an elite amateur level, like colligate sport, I think is where commercialization is a bad thing because it takes away from what amateur sport is really about which is participating in athletics while learning. However, the same cannot be said about professional sports. In elite sport, I think that it is almost a required concept. It’s something that is necessary for the survival of the sport itself. Without commercialization, teams wouldn’t be able to pay the players the salaries of their contracts
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...
Sports are one of the most profitable industries in the world. Everyone wants to get their hands on a piece of the action. Those individuals and industries that spend hundreds of millions of dollars on these sports teams are hoping to make a profit, but it may be an indirect profit. It could be a profit for the sports club, or it could be a promotion for another organization (i.e. Rupert Murdoch, FOX). The economics involved with sports have drastically changed over the last ten years.
Many investments for infrastructure construction in the destination primarily designed for the business tourists (hotels, restaurants, transportation…) provide economic profits, and they can also be enjoyed by local residents and leisure tourists.
...ally focused on why cities pursue large scale Mega-events such as the Olympics. The book provides a connection between local politics and economical factors into modern day Mega-events. The author focuses on mainly three recent Olympics that all occurred in the US, breaking it down into three separate case studies answering many such questions as why cities seek such an event their outcome and policy decision. In a well organized manner from the begging of the bidding process to the final outcome the cook gives great incite on concluding if the event was successful or a loss to the city. Overall the book gives great incite of preparing for such a Mega-event like the Olympics and its major issues, the authors do a great job explain and proving their points in a clear and organized manner, all in all a great read helping to understand the politics behind such events.
Global events benefit regional, tourism and community development. Take for instance the Commonwealth Games and the Olympics. They both are events held globally that increase visitor’s expenditure and length of stay while improving destination awareness and increasing civic pride. Janecko, Mules and Ritchie (2002) explain events in small regional destinations are obviously beneficial and often play an important role in tourism development and thereby in regional development however, differ due to size and scale of the event. Global events create employment and increase labour supply, expenditures and even the standard of living. ‘As local economics have adapted to changing to global dynamics, the hosting of international events has become more commonplace and can play a significant role in local development, acting as a catalysts for jo...