The Media And The Economics Of Sport Sport Essay Example

sports merchandise, attracting advertiser benefits, and gaining support from sports sponsors. The ultimate goal is to maximize profits from these various aspects. According to Ashutosh Srivastava (2007), CEO of MindShare Asia Pacific, nothing captures attention quite like sports do; they evoke strong emotions and keep people engaged whether watching live or on TV. In today's global economic environment, both sports and media are increasingly commodified and commercialized.
Sports clubs have adopted a business management approach in which their professional athletes are treated as commodities that can be traded for profit through transfer fees. An example of this connection between sports and media is the transfer of David Beckham, who was sold for ?24.5 million when he moved from Manchester United to Real Madrid (Beckham joins Real Madrid, 2003). This commercialization has resulted in various business activities such as trading and selling memorabilia, as well as athletes serving as ambassadors for companies. These activities are crucial for sports clubs to expand their global fan base and generate more revenue.

The relationship between sports and media in today's society is a perfect combination that has evolved into a joint promotion and development of both industries. This collaboration is inevitable and advantageous within the context of industrial cooperation. Sports have been interconnected with media for centuries, dating back to ancient Greece when Phidippides ran from Marathon to Athens to deliver a message of peace, thus linking sports with information dissemination. Throughout history, coverage of sports has always been a prominent part of media content. Over a century ago, Pulitzer, an American sports journalist recognized audience engagement as one of the key elements for media success alongside scandals and crime. Currently,

this insight remains relevant with the constant influx of sports coverage.The connection between sports and media is reinforced by the presence of numerous professional sports channels and an endless array of sports newspapers. Sports, being a popular leisure activity, naturally attracts a lot of attention and contributes to the growing popularity of sports media. However, the media's focus on sports is not solely based on this main reason but also connected to its own characteristics in sports reporting.

One characteristic is the engaging nature of sports reporting which includes fun, emotion, and entertainment - all inherent in sports themselves. According to the dictionary definition of "Sports," it involves physical strength, knowledge, skill in game or sport and sometimes pursued as a career in outdoor or indoor settings. Sport itself is a dynamic process that often produces unpredictable and enjoyable outcomes.

As a result, spectators can find temporary relief from life's pressures while experiencing physical and mental pleasure through watching sports. Sports have become an integral part of people's lives valued for their intelligence and significant role in culture. The coverage of sports exceeds that of other news topics attracting a diverse audience regardless of ethnicity, nationality, gender or age. This coverage is unrestricted and offers varied content and styles.

Recreational sports avoid sensitive subjects like politics allowing for limitless coverage and storytelling methods.Sports serve as a universal language that transcends domestic interests and extends globally. Examples of this can be seen in popular leagues like the English Premier League in football and the NBA in basketball. This phenomenon is also evident in China, where foreign competitions garner more attention than domestic events. The advancement of modern media technology

has enabled increased sports coverage, fostering engagement among audiences and creating opportunities for sports enthusiasts to pursue journalism in this field. Those involved in the world of sports share a common appreciation for sports, audience interaction, and personal experience.

In today's modern media landscape, various forms such as newspapers, magazines, text and images, television, and live broadcasts allow viewers to have a similar experience of the atmosphere and real-life visuals or sounds from their own homes. Television provides the added benefit of allowing viewers to appreciate detailed aspects of the real world through slow motion. Technological advancements also enable viewers to actively participate in games through methods like quizzes.

Sports reporting holds unique advantages over other types of news reports due to its appeal to audiences, athletic content, and immersive environment. Therefore, success in sports reporting is inevitable. The relationship between sports media and sports has traditionally been closely intertwined and logical;In recent years, there has been a shift in the relationship between media and the sports industry. Media not only covers and reports on sports but also organizes events sponsored by television stations or influential publications. This can be seen with trapeze wars or Go Game tournaments organized by media companies like China's New People's Daily.

One example of this relationship is Rupert Murdoch's Sky Television controlling broadcasting rights for the English Premier League. Similarly, prominent football clubs like AC Milan and Paris Saint Germain are supported by various media entities within the European Super League Group.

The sports industry has become a significant sector for national economies, particularly in Western countries where it has experienced substantial growth. For instance, in the United States, it ranks 11th in

terms of its contribution to the national economy, surpassing sectors such as petrochemicals, automotive, aerospace, primary metal, and wood processing.

Since the late 1980s, Italy has recognized its "football industry" as one of its top ten pillar industries. In the United Kingdom, the value of the sports industry reached ?70 billion in the 20th century - surpassing both automotive and tobacco industries. The government received over ?2.4 billion in revenue from sports alone.

By 2001, globally, the sports industry achieved a value of $400 billion USD. Profitability is undeniably a major focus within this industry as it strives to attract more viewers and increase economic benefits.Media outlets use news reports to promote their business products and increase cost-effectiveness. The convergence of sports and media in the "attention" economy involves capturing audience attention and selling it to advertisers for greater revenue. Sports serves as a vital source for the media, creating a public market where returns are crucial for sustaining sports. Additionally, sports requires popularity, skill, professional abilities, and industry expertise, enabling an impact on the media industry. Thus, the collaboration between the media and sports industries is a natural and beneficial combination that promotes close cooperation and mutual growth (Yu, 2002).

In recent years, the development of the sports industry has greatly influenced the media, particularly in Western countries. While funding poses initial challenges when developing sports as an industry, multinational companies like Coca-Cola and Kodak have contributed to its growth in both media representation and overall prosperity. Notably, milestones such as the first television broadcast of the World Cup football game during the 1954 World Cup in Switzerland highlight how significant role played by media in shaping

this sport's development. FIFA expanded its membership to 200 countries through partnerships with athletics and media platforms which made it become largest international federationIn the 1980s, the NBA faced significant debt and potential closure. To combat this, they established a media communications division under Stern's leadership. This move proved successful as television revenues accounted for over 55% of overall revenue by the late 1980s. Each new contract signed had the potential to increase their revenue by more than 50%. In 2004, ABC, ESPN Sports Television Network, America Online, and Time Warner jointly acquired the television rights for the NBA for four years at a value of $2.64 billion - setting a record for broadcast fees.

Following financial setbacks from previous Olympic Games investments in Montreal (1976) and Moscow (1980), government support for hosting future Olympics was discontinued. Los Angeles became the sole host city until 1984 when it exclusively hosted the Olympic Games organized by businessman Ueberroth. These games were unique as they did not rely on government funding but instead raised $700 million and made a net profit of $215 million. The "Ueberroth mode" revolutionized the Olympic television broadcast rights, allowing for maximum profit.

The International Olympic Committee announced that NBC spent billions of dollars acquiring the television rights for various Olympic Games. For example, NBC paid $22 billion for the 2010 Winter Olympics and 2012 Summer Olympics in the United States, as well as $15 billion for the 2006 Turin Winter Olympics in Italy and 2008 Beijing Summer Olympics.The Moscow Olympics in 1980 made $87.9841 million from television broadcasting, primarily through sales of TV rights, advertising auctions, and commercial sponsorships. This demonstrates the increasing importance

of the relationship between athletics and media in modern society, as broadcasting sports events not only increases their popularity but also expands their audience beyond regular sports participants. Consequently, sports governing bodies now prioritize television broadcasting as a crucial aspect of strategic sports development.

In terms of the sports media industry, it is constantly evolving and expanding with over 1500 television stations and approximately 12,000 local radio sports programs available in the United States alone. On average, a sports viewer watches about 179 hours of sports programming each year. The role of print media in sports is also significant, with over 1500 daily newspapers and 7500 weekly newspapers in the US having dedicated sports pages. Around 19% of all news journalists cover sports-related topics.

When it comes to telecasting networks competing for broadcast rights like the Olympic Games in the United States, major players include ABC, CBS, and NBC. Other networks such as FOX, UPN, WB, and ESPN also participate in this competition.Since 1995, three broadcasting networks in Europe have had over 20 sports channels that are accessible to approximately 150 million households worldwide through cable and satellite. The media and sports industries offer significant potential for development and profit, attracting investors. For instance, sponsorship fees in China's Chinese Football League reached 140 million yuan in 2003, with domestic enterprises like Shide Group investing over 100 million yuan annually exclusively in football. Moreover, commercial systems have been introduced in China for popular sports such as basketball, volleyball, and table tennis to attract further investments. Both domestic and foreign researchers recognize the combination of sports and media as a growing industry with promising future prospects. This relationship between

the sports and media sectors is often referred to as a "marriage made in heaven" due to their collaborative platform for cooperation and opportunities for growth. The successful bid to host the 2008 Olympic Games in China has had a significant impact on the development of the Chinese sports media and industry. Numerous sources (Andrews, 2005; Hundley & Billings, 2010; Kotler, 1993; Lu, 2000; Real, 1998) have acknowledged this acceleration while Rowe (1999), Samuelson (1992), Schirato (2007), Schultz (2002), Chen (2000), Jinghua Newspaper (2003), Yu (2002), Agencies (2007) have also recognized this progress.To access more information, please visit the website www.tsinghua.edu.cn/docsn/cbx/cft/xinxi/xinxi-shalong-wu.htm. You can also find details about Beckham's addition to Real Madrid at hypertext transfer protocol://news.bbc.co.uk/sport1/hi/front_page/2998868.stm. For additional information on Wang's work from 2003, you can visit www.tsinghua.edu.cn/docsn/cbx/cft/xinxi/xinxi-shalong-wu.htm and it was accessed on April 19th [Online].