The Golden Triangle
Commercialisation is the treating of sport as a commodity, with the market driving decisions. Sponsorship is the provision of funds or support in return for a commercial return. Sport, commercialisation and the media are so closely bound together that the relationship is described as the golden triangle – each point depends on, and profits from, the other two: the media uses sport to attract audiences to sell to advertisers; businesses use the media to advertise and pay sport directly; and sport needs media exposure to attract sponsorship.
- Advantages for elite sport: increased income and promotion, increased sponsorship, better organised and funded events, and improved facilities
- Disadvantages for elite sport: sensationalised reporting; media/sponsors dictating kick-off times and changing the nature of a sport; minority sports losing out; excessive demands on performers; and pressure to win or maintain lucrative contracts
The Media's Influence on Sport: Coverage and Ring-Fencing
Television is the best medium for sport since it transmits live images to huge audiences instantly. Satellite TV (e.g. Sky Sports, BT Sport) charges subscribers for access, shown by BT's purchase of Setanta.
- OFCOM regulates UK telecoms; ring-fenced events must be available on free-to-air TV. Category A events must have live free-to-air coverage (e.g. the FA Cup Final, World Cup Finals); Category B events can be pay-per-view provided a highlights package is free-to-air (e.g. Test cricket, the Open Golf)
- The list of ring-fenced events has shrunk as satellite channels offer riches sporting authorities cannot ignore, e.g. England home Test cricket moving from Category A to B from 2006
- Reasons for continuing to ring-fence events: to reach the widest range of viewers, avoid restricting coverage to those who can pay, increase geographical access, and protect sporting heritage, e.g. the Olympics and Wimbledon
The Growth of Media Money: Premier League TV Rights
Premier League TV rights income has grown from £253.5 million total (1992–97) to £8.7 billion total (2016–19) across successive deals – the sport–media relationship is potentially symbiotic, mutually beneficial, but depends on the media having an interest in covering the sport.
- Sports attractive to broadcasters demand high skill levels, are visually appealing, are easily understood with simple rules, are easy to televise within a short timescale, and have identifiable personalities and role models
- Less popular sports (e.g. badminton, table tennis) attract less coverage, less commercial interest, and remain relatively amateur, creating a vicious circle
Advantages and Disadvantages of Media Coverage
- Advantages: increases the profile of a sport and its performers; increases participation; creates more media-friendly variations of a sport (e.g. Twenty20 cricket); generates higher income and commercial opportunities; and drives up standards of performance and behaviour
- Disadvantages: NGBs and performers lose control to TV companies and sponsors; media control locations, kick-off times and playing seasons; too much sport on TV can lead to boredom; inequalities of coverage disadvantage minority sports; and over-sensationalised coverage can encourage a win-at-all-costs attitude
Why Sport Attracts Business: Commercialisation and Sponsorship
Sport is attractive to business since it offers extensive media coverage, large audiences, a professional high-profile image, and advertising/merchandising/sponsorship opportunities. Sponsorship benefits companies through increased sales and brand awareness, improved company image, corporate hospitality opportunities, and tax deductions.
Marketability of the Individual Performer
Not all elite performers are equally marketable – sponsors want performers who present a positive image and are at the top of their profession, e.g. Nike's $250 million deal with world number one golfer Rory McIlroy over compatriot Graeme McDowell, based on his continued success, clean-cut image and golf's high socio-economic audience.
Sponsorship and the Elite Performer
- Positive effects: increased wages, prize money and extrinsic rewards; increased availability of full-time professional contracts; higher public profile requiring appropriate behaviour; and increased funding for training support and equipment
- Negative effects: increased pressure to win and win-at-all-costs behaviour; deviant behaviour such as playing while injured or taking drugs; being treated as a commodity with overly demanding sponsors; and inequality of funding for minority sports
The Ethics of Sport Sponsorship
Elite performers, e.g. boxer Anthony Joshua, must consider the nature of a sponsor since they are role models with a social duty to others, and should weigh a sponsor's level of control – remembered via SPONSOR: Social duty to others; Personal appearances demanded too much; Opposed nature of the product to reputation; Negative impact on future sponsorship; Support is image dependent; Opposed to the true nature of sport; Role model for others. Counter-arguments: if a product is legal, performers have a right to accept a deal; it is unfair to expect performers to protest when their livelihood is at stake; and performers do not ask to be role models.
Impact on Coaches, Officials and Spectators
- Coaches/managers gain higher profile and salaries and increased funding for squads and facilities, but face intense pressure to win, media demands, and inequalities between clubs
- Officials gain higher profile, salary and access to training and technology, but face increased pressure to get decisions right, media scrutiny, and risk of demotion if a faulty decision is highlighted – remembered via OFICAL: Over-dependency on technology; Faulty decisions highlighted; Increased media pressure; Constant Analysis of decisions; Lack of technology at lower levels
- Spectators benefit from higher performance standards, improved facilities and viewing technology (e.g. Hawkeye), but face increased costs, loss of traditional match features, more breaks in play, fewer tickets (more going to corporate hospitality), and less coverage of minority sports