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SPORTS MANAGEMENT

SPORTS MANAGEMENT

Lately, sports have become a major economic and social activity. As the significance of sports in society increases, so does sports management. All sports organizations, including public, non-profit, and professional ones, require professional management to attain the best outcomes. Other factors that have made sports management necessary are that sports organizations employ millions globally, and many people watch them. Therefore, as the consumption of sports changes, it calls for a change in sports production and management. Sports managers in the 21st Century need to apply strategic planning just like in modern businesses. Such is because they deal with multi-million contract deals, have global networks, and deal with the welfare of elite athletes who earn huge perks. However, factors affecting sports management are unique since sports consumers exhibit irrational passions for athletes or specific sports. Therefore, sports managers must apply strategic techniques that maintain the traditional nostalgic attachment to sports.

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Factors Influencing Sports Management

Media Involvement

Today, sports is not just about the participants. Sports events are watched by all and sundry across the globe. That has led to the commercialization of the sport as media stations seek to broadcast the events to a global audience (BBC, 2019). The media industry compensates sports institutions to get broadcasting rights. In return, the media can influence the management of some aspects of the sport.

The media focus has led to several changes in how sports institutions are managed. First, media focus drives performance improvement (BBC, 2019). Aware that many people watch them globally, competitors and sports managers always try to improve their performance levels. For instance, in professional football, team owners fire managers who cannot deliver according to expectations. The media greatly influence such decisions because they highlight the performance flaws of a sports team’s management. Second, the media has influenced the introduction of technology to detect fouls missed by match officials. This followed glaring flaws that were previously exposed and criticized by the media. Unlike traditional businesses, the media focus is more influential among sports organizations since it is a major stakeholder.

The media has also made resources available to improve sports facilities. That is because sports institutions strike deals with television to grant them broadcasting rights (BBC, 2019). In return, the high incomes attract top-level professional athletes who enhance performance. As the performance of a sports institution improves, financial gains also improve.

Technology 

Technology also has a significant influence on sports management. Technology has been particularly significant in creating alternative income sources for sports institutions (Shropshire et al., 2016). These organizations need side income to complement their mainstream revenue. To that end, technology has helped sports institutions grow and stabilize their income.

A major influence of technology has been the creation of more revenue streams besides the traditional ones. Traditionally, sports institutions only relied upon fees paid by broadcasters, selling sports merchandise with a player or team logo and gate fees as income generators. However, technology presents new opportunities that these teams can leverage to create more revenue. For instance, they can create subscription services for followers to follow sporting events online (Shropshire et al., 2016). Team websites present some of the most suitable platforms through which teams can interact with their followers globally. As sports institutions embrace this technological evolution, they will face legal requirements that border property rights and patents. That is because there is a need to protect their content from infringement by third parties. The technological phenomenon has introduced new managerial considerations.

Also, the continuous improvement of technology has led to the introduction of cable television (Shropshire et al., 2016). Cable television is important in sports because of its strong demographics. Due to the wide viewership, sports institutions can spread their content to a much wider audience than satellite television. Cable television also gives emerging sports a chance to gain global viewership. These are the kinds of sports that are yet to get a global audience. Although the initial viewership may be small, cable TVs bring to the table an opportunity to gradually introduce the new sport and gradually build organic consumers.

Government Policy

According to Shropshire et al. (2016), the government also plays a major role in sports management. The government’s role is particularly tied to sports funding. A government provides two-tiered funding at the grassroots level and for professional elite teams. The primary goal of providing finances at the grassroots level is to promote positive health practices among the population. Research has shown that an active population leads to better health and enhanced productivity. Nonetheless, government officials tend to focus on financing elite teams, which earns them public support. Such a government policy geared towards sports promotion ensures that teams are always facilitated when they face financial shortages. Government financing has helped teams that enjoy massive support remain afloat.

Another major government influence is notable in sports stadium construction. Team owners mostly focus on setting base in areas with the most profits and other advantages. A team may enjoy massive support in a given city, but the population in such a city may be low. Such a team may be motivated to move to a different area where they will get the most income in gate tickets. On the other hand, a local government is interested in protecting the interests of the local population. Traditionally, such governments provide funding with the hope that they can prevent a team from leaving for another city. However, voter resistance against such government subsidies has been growing lately (Shropshire et al., 2016). Taxpayers feel that it is not moral for a government to finance the construction of stadiums for teams whose owners are extremely wealthy. Several such subsidy funding initiatives have been defeated in the US. As the government withdraws subsidy funding for stadium construction, sports institution owners will be free to decide where they establish their stadiums.

Comparison of the factors that impact the various organizations at the different levels of sports

Globalization

One of the factors that have affected sports institutions is globalization. For instance, the NBA has moved beyond its traditional American base to set up in other areas (Goldberg, 2012). For instance, the organization recently set up a sports academy in China to create a whole set of new generational players (Shropshire et al., 2016). Besides, some regular league games have been played outside the US, in the UK and in Mexico. The goal of such initiatives is to create a quality global product that is acceptable to many. Another globalization aspect adopted by the teams is the introduction of international players in local leagues. After the MLB, the NBA has the second most international players. Another growing trend borders around international team ownership by key stakeholders.

Cultural Exchange

Another factor that impacts the sport is cultural expansion. The concept of globalization has encouraged people from different parts of the world to enjoy basketball activities. Locally, television sports shows provide a platform for distributing sports content. However, globally, sports professionals interact with their followers on social media. As fans interact with social media content, they learn new cultural traits. For instance, the traditional basketball culture of ‘anything goes’, and vicious attacks have spread thanks to social media, particularly Twitter.    Besides, Instagram has provided a platform through which players can live their lifestyles online and interact with their fans. Although international team expansion has not occurred yet, the fact that teams can exchange cultural ideals online indicates that sports are becoming a significant global product.

Diversity Growth

The call for diversity in the sports corridors has also been on the rise. First, there has been widespread advocacy for parity between men and women. The call led to the introduction of women’s leagues that largely failed. Also, there have been calls to ensure fairness when compensating male and female players. The call has particularly been overemphasized in American football circles, where female players demand equal pay like their male counterparts. Their demands have largely failed due to the argument that their sport does not generate as much income as their male counterparts.

The call for diversity also extends to racial inclusion. To ensure racial integration, Major League Baseball (MLB) began initiatives to integrate players from other races apart from the majority white (Zhang, 2018). The campaign started in 1947 but has since gained much success. By 2008, the MLB was fairly balanced with players from all races. During the 2008 season, the league comprised 27% Latinos, 10% Africans, and 2% Asians (Shropshire et al., 2016). The figures have since risen. However, there is a lack of racial inclusion regarding top managerial posts. Only 3 Africans and two Latinos have served as team CEOs or league managers. The pressure to ensure racial inclusion is always on the rise. That is an indication that sport is becoming a global business, hence the need to embrace social responsibility.

Prediction of Factors to Influence Each Level of Sport over the Next Ten Years

Collegiate Level

Collegiate-level athletes will benefit from the increased revenue streams in the future. Traditionally, these sports institutions have relied on revenue originating from fees paid by media for broadcasting rights. However, a new opportunity window is emerging in other platforms. For instance, ticket sales will allow collegiate-level institutions to raise more revenue (McEvoy, Morse & Shapiro, 2013). To enhance ticket sales revenue, collegiate-level institutions collaborate with secondary players like StubHub to secure additional revenue from secondary markets. Another opportunity that presents more revenue is fundraising. A big junk of these institutions’ revenue comes from donors; thus, establishing close networks with them will create more income streams.

Professional-Level

Professional sports institutions, on the other hand, are likely to benefit from new streaming possibilities enabled by 5G. The introduction of 5G networks means that fans across the globe can stream their favourite games online at faster speeds (Mi et al., 2020). Also, cloud computing has enabled streamers to access real-time data amid games. At the moment, some broadcasting companies have already started using these fast devices to stream games. Therefore, professional sports organizations need to see how they can leverage improved technology and monetize their high-quality streams.

Olympics Level

Undoubtedly, the Olympic Games are some of the most popular in the world. Their popularity comes with huge sponsorship deals by the world’s largest corporate organizations. At some point, there has been a concern that the sponsorship deals are not proportionate to their marketing value. However, if the recent events are anything to go by, there is no doubt that corporations are willing to raise prices (Shropshire et al., 2016). Over the next decade, sponsors are expected to raise their sponsorship prices to enhance their visibility. One of the controversial sponsors of the Olympic Games is the Coca-Cola Company. Fans and other sports stakeholders across the globe feel that helping Coca-Cola to market negates the very ideals of sports. That is because beverages made by the company are associated with poor health outcomes. However, it won’t be easy to do away with corporate sponsors, considering the money they bring. Fans should brace themselves for wider corporate visibility around the Olympic Games.

Conclusion

In summary, sports commercialization has influenced sports institutions’ managers to adopt management strategies akin to a traditional business company. Sports institutions require strategic management plans, just like any other business. However, some factors in sports management are unique to sports institutions. Some factors influencing sports institutions’ management decisions include government policy, technology, and media involvement. Another concept that influences the conduct of collegiate, professional, and Olympic sports institutions/organizations is globalization. Based on these factors, sports institutions must adopt management strategies that promote their image as global brands.

References

BBC. (2019). Commercialization – AQA – Revision 3 – GCSE Physical Education – BBC Bitesize. BBC Bitesize. https://www.bbc.co.uk/bitesize/guides/zp2jxsg/revision/3

Goldberg, I. (2012). The Globalization of the National Basketball Association Measuring the Impact and Valuation of Foreign Players. https://scholarship.tricolib.brynmawr.edu/bitstream/handle/10066/8294/2012GoldbergI_thesis.pdf?sequence=1

McEvoy, C. D., Morse, A. L., & Shapiro, S. L. (2013). Factors influencing collegiate athletic department revenues. Journal of Issues in Intercollegiate Athletics6, 249-267.

Mi, D., Eyles, J., Jokela, T., Petersen, S., Odarchenko, R., Ozturk, E., Chau, D.-K., Tran, T., Turnbull, R., Kokkinen, H., Altman, B., Bot, M., Ratkaj, D., Renner, O., Gomez-Barquero, D., & Gimenez, J. J. (2020). Demonstrating Immersive Media Delivery on 5G Broadcast and Multicast Testing Networks. IEEE Transactions on Broadcasting, 66(2), 555–570. https://doi.org/10.1109/tbc.2020.2977546

Shropshire, K. L., Davis, T., & N Jeremi Duru. (2016). The business of sports agents. University Of Pennsylvania Press.

Zhang, L. (2018). Race and Status Dynamics in the NBA. https://dash.harvard.edu/bitstream/handle/1/40050107/ZHANG-DISSERTATION-2018.pdf?sequence=4

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Question 


Throughout the course, various elements of professional, collegiate, and Olympic sports have been studied and evaluated. Some of the issues and concerns that were identified in each level of sports significantly impact the sports organizations’ and academic institutions’ operations, financial management, and business practices. Complete a thorough review of factors that influence an organization or institution that operates at each level of sports based on the assigned course readings and five scholarly sources.

SPORTS MANAGEMENT

SPORTS MANAGEMENT

In a narrative format, the paper must include:

Evaluation of three factors that impact the management of a collegiate, professional, and Olympic organization/institution.
Comparison of the factors that impact the various organizations at the different levels of sports.
Prediction of what factors will influence each level of sports over the next ten years.