Is the recession killing sport
Download
1 / 17

IS THE RECESSION KILLING SPORT - PowerPoint PPT Presentation


  • 360 Views
  • Updated On :

IS THE RECESSION KILLING SPORT?. Professor Simon Chadwick Chair in Sport Business Strategy Director of CIBS. Aims of the presentation. To examine the impact the recession is having on sport To assess whether or not sport is recession-resistant

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'IS THE RECESSION KILLING SPORT' - Pat_Xavi


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Is the recession killing sport l.jpg

IS THE RECESSION KILLING SPORT?

Professor Simon Chadwick

Chair in Sport Business Strategy

Director of CIBS


Aims of the presentation l.jpg
Aims of the presentation

  • To examine the impact the recession is having on sport

  • To assess whether or not sport is recession-resistant

  • To identify the impact recession is having on sport

  • To establish whether or not the recession is killing sport


Slide3 l.jpg

  • Editor of books including: The Business of Sport Management, The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • Editor of Henry Stewart Sport Marketing talk series

  • Editor of Butterworth Heinemann Sport Marketing book series

  • Former editor of the International Journal of Sports Marketing and Sponsorship

  • Consulted with and/or advised organisations including FC Barcelona, Atletico Madrid, UEFA, International Tennis Federation, four Grand Slam tennis tournaments, Mastercard, The Economist, European Sponsorship Association

  • Written for, or been quoted in/by, outlets including Wall Street Journal, Forbes, Financial Times, Business Week, Time Magazine, BBC, CNN, ESPN, Reuters


Please note l.jpg
Please note The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • All numerical data is drawn from secondary sources

  • For further details of these sources, participants are asked to directly contact the presenter


The story so far l.jpg
The story so far.... The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • Honda, Kawasaki and Subaru withdrawn from motorsport

  • Manchester United lose £56 million AIG shirt sponsorship

  • US National Football League indicates it will cut workforce by 10%

  • Tiger Woods loses five year $8 million endorsement contract with Buick

  • Vancouver 2010 Olympic Games takes out additional $800 million loan to cover financial shortfall

  • 2009 Indian Masters golf tournament cancelled

  • Arena Football League in US cancelled for the season

  • Liverpool FC new stadium building project put on hold


Slide6 l.jpg
But.... The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • In UK, following Beijing Olympics, sales of bicycles up 20%; sports bras up 27%; energy bars and sports drinks up 155%; swimming equipment up 36%;

  • Superbowl 2009: TV viewership up 1 million (97.4m to 98.4m); advertising investment up $20 million (from $186 million to $206 million)

  • Manchester City sold for £200million+ in summer 2008

  • Premier League signs new live TV rights deal for £1.78 billion, surpassing previous deal

  • Badminton England signs record-breaking sponsorship deal with Yonex; rumours persist that Manchesters United and City will both sign lucrative, record-breaking shirt sponsorship deals


Is sport in recession l.jpg
Is sport in recession? The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • We actually don’t know because the value of the sport economy is not measured

  • Sense that the world sport economy worth 3% of GDP; in EU between 1% and 2% of GDP; in UK between 2% and 3% of GDP

  • General economic downturn is impacting upon sport

  • Differential effects


A geo political dimension l.jpg
A geo-political dimension? The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • Is this a Western sporting recession?

  • Is it a global sporting recession?

  • Will the recession be an international tipping point?

  • Is the balance of sporting power shifting eastwards?

  • Are we seeing a move away from socio-cultural and commercial sport?

  • To nation-state sport?


Is sport recession resistant l.jpg
Is sport recession resistant? The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • A unique product

  • A superior product

  • A necessity product

  • A socio-culturally embedded product

  • A commercially-driven product

  • A nation-state product


Consumption in crisis times l.jpg
Consumption in crisis times The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • Escapism

  • Self-esteem

  • Eustress

  • Aesthetic

  • Economic

  • Entertainment

  • Group affiliation

  • Family activity


Previous recessions l.jpg
Previous recessions The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • Case of F1 motor racing

  • 1925 season: World Champions Alfa Romeo pulled out of F1

  • 1926 French Grand Prix only three cars started

  • 1927 Delage team won all four Grand Prix and then withdrew from championship

  • 1928 motorsport infrastructure that was in place led to series of team start-ups

  • Smaller, flexible, responsive, teams joined the championship

  • Despite economic gloom, teams increased and sport grew in popularity


Nature of impact l.jpg
Nature of impact The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • Sport is not immune

  • Sport is more recession-resistant than other industries

  • Some sports more recession-resistant than others

  • Some athletes, teams and clubs are more recession-resistant than others

  • Downturn is polarising sport – prospering minority v struggling majority

  • Ticket sales, broadcasting revenues, commercial revenues are on the frontline


Those who likely to suffer l.jpg
Those who likely to suffer The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • The ‘Debt Devils’

  • The ‘Distantly Doomed’

  • The ‘Financially Fallible’

  • The ‘Selling Slaves’

  • The ‘Knee-Jerkers’

  • The ‘Management Malcontents’

  • The ‘High Street High-Jacked’


Those likely to benefit l.jpg
Those likely to benefit The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • The ‘Bling Brigade’

  • The ‘Glory Givers’

  • The ‘Nifty Nichers’

  • The ‘Fearless Friendlies’

  • The ‘Guarantee Grafters’

  • The ‘Loyalty Lovers’

  • The ‘Price Promoters’


Conclusions l.jpg
Conclusions The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • The recession is not killing sport

  • But it is changing it

  • Sport more recession-resistant than most

  • Some better equipped to deal with it than others

  • Some organisations will have to ‘change or die’

  • Asking serious questions about way sport is run

  • Changing balance of global sporting power

  • Polarising sport


Slide16 l.jpg


Further information l.jpg
Further information The Marketing of Sport, International Cases in the Business of Sport and Managing Football: An International Perspective

  • CIBS website: www.coventry.ac.uk/cibs

  • Coventry University website: www.coventry.ac.uk

  • E-mail: [email protected]


ad