Sports as a Business it is more than just a game
Peter Guber, CEO of Mandalay Entertainment states that “Fans think they own their team, they think they make a difference in the outcome of the game. ” The focus of professional sports centers heavily on what is most marketable to the fans, and what respective organizations have to do to keep their ticket and merchandise sales healthy. People tend to overlook the perspectives of the athletes themselves. Therefore, there are aspects of the business of professional sports that must also be brought to the attention of the general public. One of the defining characteristics of the sports business is definitely the endorsement deals that are involved. In stark contrast, Oklahoma City Thunder franchise player Russell Westbrook just signed a groundbreaking contract that would pay him an astonishing $250 million over the course of five years.
Naturally, big payouts are not uncommon when it comes to professional combat sports as well. Take for example, the super fight between Conor McGregor and Floyd Mayweather. Extracts from the contract between Mayweather and McGregor revealed by the Nevada State Athletic Commission indicates that Mayweather pocketed in over $100 million while McGregor had to settle for $30 million. However, UFC head Lorenzo Fertitta stated that a normal-scale UFC fighter gets scheduled to the ring 3 times a year, taking home $200,000 per fight, an equivalent of $600,000 a year. Reebok exec Michael Lunardelli stated on an MMA podcast "You cannot make everybody happy. Some people are going to criticize the deal. They may feel that they lost some sponsorships as part of this apparel deal. The way we look at it is, we're not deciding where the money goes.
Reebok remains ambivalent regarding this issue and although mixed martial arts is going through a tremendous surge in viewership, it still has a long way to go in establishing its legitimacy as a professional sport. The best illustration is still Mayweather, who still earns top dollars no matter the outcome in the ring. Commercialization of sport continues because of the astronomical transfer amounts clubs pay to acquire the services of unique players. Recall the transfers of Cristiano Ronaldo, Kaka, Shevchenko, or Fernando Torres. Both moved from one club to the other within Europe with vast amounts paid to acquire them. Remember the clubs were willing to pay these figures because they knew they would quickly recoup the sum through endorsement deals, shirt sales, or increased gate revenues the stars were likely to attract.
Real Madrid possess over half of Ronaldo's image rights, which enables them to hugely gain from his profitable patronage deals with Nike, Castrol, and others. Real Madrid is fundamentally set up on the expanded vision which involves plotting and implementing diverse marketing plains directed to alleviating the worth of the club’s name. The incorporation of this model has led to a massive rise in profits from marketing. Without contradiction, such models have made Real Madrid the pacesetter in world soccer. Regarding the evolving of economic aspects of soccer, the most viable point worth noting has been the club’s enactment of a directorate model that has converted a conventional soccer club into a fashionable media and sports enterprise. Currently, throughout leading sporting tournaments, digital presences and social platforms matter to Nike and Adidas as much as the number of national regalia both brands avail to squads and the subjection top endorsements offer in the brawl for leadership.
For the past decade, Adidas has boasted the highest number of teams in its manufacturing list of kitties in every single tournament. The coming championship alone proves that, because 37% of the 24 teams playing will depend on German sports giant to avail their kits, In comparison to 25% (six) of the teams having Nike as their maker, Puma will have 21% (five) while the remaining 17% (four) taken by other minor suppliers. Nike’s social media figures dominate those of Adidas because on Twitter, Nike has 4. million followers, Adidas has 2. The other notable recent incident involved Kermit Washington, a retired NBA player, who accepted the charge of spending funds allocated to an African charity he arranged on holidays, jewelry, and other personal commodities. Washington had previously pleaded not guilty to the charges in June of 2016.
Washington was due to stand trial in federal court Monday in Kansas City, Missouri, but on Thursday publicly opted to confess to two counts of making a false declaration in a tax obligation and the other offense of aggravated identity pilferage. With the commercialization of sports, players are not just there to win, but to get money and live luxury lives. In conclusion, although the commercialization of sport has its downsides, but however, there also should be an appreciation of its positive effects. org/10. Gillett, A. The business of sports agents. Business History, 1-2. doi. J. Wiley. McDowell, M. A Cultural History of Association Football in Scotland, 1865-1902. Lewiston: The Edwin Mellen Press.
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