Sport as a Business: Introduction

Abstract

The role of sport is concrete in business terms, quotes Eric Falt, United Nations (UN) Director of Communications (2004):

It is an industry with unparalleled global reach and power. Globally, sport-related turn-over amounts to three per cent of world total economic activity. In the United Kingdom, for example, sport-related turn-over equals that of the automotive and food industries. Major events such as the soccer World Cup or Formula One Grand Prix are watched around the world. … At the same time, the corporate practices of this worldwide industry can and do have widespread impact, socially and environmentally.

Some sports have achieved a global status; there are more members of the Fédération Internationale de Football Association (FIFA) than of the UN. Football (or ‘soccer’ as it is known in America) is a growth sport; however, its commercial representation can only be considered strong in certain world regions. For example, in 2009, the German Bundesliga overtook the English Premier League to be ranked as the world’s most profitable football league, stacking up €172 million of operating profits, whilst the Premier League more than halved their revenues from €224 million to €96 million in the same year.¹ In total, the big five European football leagues (England’s Premier League, Germany’s Bundesliga, Italy’s Serie A, Spain’s La Liga and France’s Ligue 1) generated revenues of €7,900 million in 2008/09 (€6,300 million in 2004/05 (Jones, Parkes and Houlihan, 2006)).²