Understanding Sports Management: International Perspectives

Understanding Sport
Management
Sport management is a rapidly developing industry which continues to grow in size and
scope on an international scale. This comprehensive and engaging textbook offers a com-
plete introduction to core principles and best practice in contemporary sport manage-
ment. Adopting an issues-based approach and drawing on the very latest research, it
demonstrates how theory translates into practice across all the key functional areas of
sport management, from governance and leadership to tourism and events.
Written by a team of experts from across the globe, the book explores sport manage-
ment from a truly international perspective and looks at all levels from professional,
high-performance sport to non-prot and grassroots. With extended real-world case
studies and an array of helpful features in every chapter, it addresses crucial topics
such as:
s MANAGINGORGANISATIONALPERFORMANCE
s COMMUNICATIONANDSOCIALMEDIA
s SPONSORSHIPANDMARKETING
s THEIMPACTOFSPORTONSOCIETY
s FUTUREDIRECTIONSFORSPORTMANAGEMENT
Complemented by a companion website full of additional teaching and learning

resources for students and instructors, this is an essential textbook for any degree-level
sport management course.
Trish Bradbury is a senior lecturer at Massey University, New Zealand, where she lec-
tures in both sport management and core management programmes of study. She has
extensive experience in managing/coaching organisations and sports teams, and actively
volunteers in the sport community. Her major research interests concern aspects of
sport/business management related to events, HRM, organisation development and per-
formance management. Dr Bradbury has published in various journals such as Sport
Management Review, Sport, Business and Management and International Journal of Sports
Marketing and Sponsorship. Her rst book is Sport Governance: International Case Studies
(Routledge, 2013).
Ian OBoyle is a researcher in the area of sport governance and leadership. He is also the
Director of the CERM Performance Indicators Project, which focuses on researching
operational indicators and customers perceptions of service quality for local government
sports and leisure facilities and services, providing improved operational decision-making
and internal and external benchmarking. His work appears in the leading sport manage-
ment journals such as Journal of Sport Management, Sport Management Review and Euro-
pean Sport Management Quarterly. In 2015, Dr OBoyle received a Research Excellence
Award from the UniSA Business School in recognition of his extensive high quality
research record.
Understanding Sport
Management
International perspectives
Edited by
Trish Bradbury and
Ian OBoyle
First published 2017
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
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Routledge is an imprint of the Taylor & Francis Group, an informa business
2017 Trish Bradbury and Ian OBoyle
The right of Trish Bradbury and Ian OBoyle to be identied as the
authors of the editorial matter, and of the authors for their individual
chapters, has been asserted in accordance with sections 77 and 78 of
the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or
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explanation without intent to infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Names: Bradbury, Trish, editor. | OBoyle, Ian, editor.
Title: Understanding sport management : international perspectives /
edited by Trish Bradbury and Ian OBoyle.
Description: Abingdon, Oxon ; New York, NY : Routledge, 2017. |
Includes bibliographical references and index.
Identiers: LCCN 2016032191| ISBN 9781138100626 (hardback) |
ISBN 9781138100633 (pbk.) | ISBN 9781315657554 (ebook)
Subjects: LCSH: Sports administration. | SportsMarketing. | Sports
sponsorship. | Communication in sports.
Classication: LCC GV713 .U64 2017 | DDC 796.06/9dc23
LC record available at https://lccn.loc.gov/2016032191
ISBN: 978-1-138-10062-6 (hbk)

ISBN: 978-1-138-10063-3 (pbk)
ISBN: 978-1-315-65755-4 (ebk)
Typeset in Berling and Futura

by Wearset Ltd, Boldon, Tyne and Wear
Visit the companion website: www.routledge.com/cw/bradbury
Contents
List of gures vii

List of tables ix
Notes on contributors xi
SECTION 1 The sport management environment 1
1 The new sport management environment 3

Ian OBoyle and Trish Bradbury
2 The impact of sport in society 11
Emma Sherry
3 Organisational structure and theory of non-prot sport
organisations 27
Packianathan Chelladurai, Wirdati Mohd Radzi and
Megat Ahmad Kamaluddin Megat Daud
4 Professional sport 44
Paul Turner
5 The global sport environment 58
Eric MacIntosh and John Harris
SECTION 2 Foundations of sport management 73

6 Creating high performing non-prot sport organisations 75
Popi Sotiriadou and Veerle De Bosscher
7 Controlling and managing organisational performance: the
viable system model 95
Winnie OGrady and John Davies
vi Contents
8 Strategic management in non-prot sport 116

Ian OBoyle
9 Managing volunteers in grassroots sport 130
Tracy Taylor and Ashlee Morgan
10 Sport governance 145
Ian OBoyle
11 Leadership in sport management 159
Duncan Murray and Sarah Chua
12 Soliciting sport sponsorship 172
T. Bettina Cornwell
13 Sport marketing 184
Brenda Pitts
14 The economics of sport 198
Sam Richardson
SECTION 3 Elements of sport management 213

15 Communication and social media 215
Ashleigh-Jane Thompson
16 Sport law 229
Neville Cox
17 Sport event management 243
Insun Sunny Lee and Graham Brown
18 Sport tourism 259
Graham Brown and Insun Sunny Lee
19 The continuing evolution of sport management 273
Trish Bradbury and Ian OBoyle
Index 282
Figures
3.1 Hierarchical order of governance for non-prot sport organisations 28

3.2 Social order in sport governance 29
3.3 The Three Es (3Es) of sport participation 31
3.4 Vertically differentiated subsystems of a sport governing body 33
4.1 The professional sportscape 45
6.1 The seven pathways of sport development 81
7.1 Schematic representation of Beers Viable Systems Model the VSM 97
7.2a The Auckland Kingz and systemic failure 99
7.2b The Auckland Kingz and systemic failure 100
7.3a Essendon Football Club and systemic balance 101
7.3b Essendon Football Club and systemic balance 102
7.4 Board of Cricket Control in India: systemic role conict 103
7.5a NZRFU: governance structure and processes prior to and post
reorganisation 105
7.5b NZRFU: governance structure and processes prior to reorganisation 106
7.5c NZRFU: governance structure and processes post reorganisation 107
7.6a The VSM representation of a notional high performance sport system
as a set of nested organisational systems 109
7.6b HPS: systemic notions of communication and control 110
8.1 Cyclical model for strategic management 120
8.2 Rowing NSW scorecard for 20132014 126
11.1 The ve sources of power 162
11.2 Proposed framework by Avolio et al. (2004) 167
12.1 Sport property and sponsor goals and partnership success
characteristics 176
13.1 Contemporary sport marketing theory and process 187
13.2 The Sport Marketing Management Model 188
14.1 A two team sport league: teams in identical markets 203
14.2 A two team sport league: teams in differing markets 204
14.3 The decision to take performance enhancing drugs: a payoff matrix 208
17.1 Scale of impacts by size of event 244
17.2 The torch relay map of London 2012 Olympic Games 255
This page intentionally left blank
Tables
7.1 Conceptual underpinnings of the VSM 98

A7.1 The VSM: a process for assessing organisational effectiveness and
viability 112
8.1 Strategic management design processes 121
13.1 The 4 Cs of sport marketing 189
13.2 The 4 Ps of the marketing mix 192
14.1 Where to play Inglis: fullback or centre? 201
17.1 Event tourist career trajectory 248
17.2 The impacts of sport events 251
18.1 Sport tourism activities classication 262
18.2 The sport and travel motivations of sport tourists 263
Contributors
Graham Brown
Professor Graham Brown is Professor of Tourism Management and a Founding Member
and Director of the Centre of Tourism and Leisure Management at the University of South
Australia Business School. He has an international reputation in tourism and works closely
with tourism organisations both nationally and internationally. Professor Brown has pub-
lished over 50 book chapters and journal articles and has co-authored the book Tourism
Marketing: An Asia Pacic Perspective (2008). He serves on the Editorial Boards of leading
sport and tourism journals and has acted as the Regional Director (Asia Pacic) for the
International Journal of Contemporary Hospitality Management. Professor Brown lectures at
undergraduate and postgraduate levels, and, in recent years, doctoral scholars he has super-
vised have won national and international awards for the quality of their research.
Packianathan Chelladurai
Chelladurai, Distinguished Professor, Troy University, is a Founding Member of the North
American Society for Sport Management (NASSM) and the European Association for
Sport Management (EASM). He is the rst recipient of the Earle F. Zeigler Award from
NASSM, the Merit Award for Distinguished Service to Sport Management Education from
the European Association of Sport Management (EASM) and Sport Management Scholar
Lifetime Achievement Award from Southern Sport Management Association. On 18 June
2012, he was awarded the honorary degree of Letters of Law (LLD) by the University of
Western Ontario, Canada for his contributions to sport management. In 2015, EASM
named its most prestigious award the EASM Chelladurai Award.
Sarah Chua
Sarah Chua is a Lecturer at the University of South Australia. She currently teaches on
the Sport and Recreation Management programme, as well as taking a course on busi-
ness sociology. She publishes in the area of leadership. Her PhD is on the role that
gender, leadership style and appearance play in how we evaluate leader effectiveness.
Specically she is looking at the effect across diverse cultures.
T. Bettina Cornwell
T. Bettina Cornwell (PhD in Marketing, University of Texas) is the Edwin E. and June
Woldt Cone Professor of Marketing in the Lundquist College of Business at the
xii Contributors
University of Oregon. Prior to joining the University of Oregon, she was Professor of
Marketing and Sport Management at the University of Michigan. Her research focuses
on marketing communications and consumer behaviour and often includes inter-
national and public policy emphases. Bettinas research on corporate sponsorship of
sports, arts and charity has appeared in the Journal of Advertising, Journal of Advert-
ising Research, Journal of Consumer Research, Journal of Experimental Psychology:
Applied, Journal of the Academy of Marketing Science and Psychology & Marketing. Her
book Sponsorship in Marketing: Effective Communication through Sports, Arts and Events
was published by Routledge in 2014. She was the 2009 American Marketing Associ-
ation, Sports Marketing and Special Events Special Interest Group, award recipient for
Distinguished Contributions to the Scientic Understanding of Sports Business and is
the 2016 Thomas C. Stewart Distinguished Professor at the Lundquist College of
Business.
Neville Cox
Neville Cox is Professor of Law and Dean of Graduate Studies in Trinity College Dublin.
He is also a practising barrister who has represented a number of athletes accused of
doping offences. He is the author of Blasphemy and the Law (2000), Sport and the Law
(2004), Employment Law (2009) and Defamation Law and Practice (2014). He is also the
author of numerous book chapters and law review articles.
John Davies
John Davies is Professor of Management Studies, Associate Dean (International & Exec-
utive Education) and Director of Academic Programmes Accreditation within the Victo-
ria Business School, Wellington, New Zealand. A former Head of Victoria Management
School, he graduated from the universities of Wales and Lancaster with a background in
operational research, and has research interests within the decision and systems sciences,
and sports management. He has published in journals spanning the decision and systems
sciences, technology management and sport management: for example, Decision Science,
Omega The International Journal of Management Science, Journal of the Operational
Research Society, Journal of Sport & Tourism, International Journal of Sports Management
and Marketing, European Journal of Sport Management, International Journal of Production
Research, R&D Management, European Journal of Marketing, Long Range Planning. He is
a Past-President of the Wellington Rugby Football Union and of Poneke Football Club,
Wellingtons leading multicultural sport club.
Veerle De Bosscher
Veerle De Bosscher is an Associate Professor at the Department of Sports Policy and
Management at the Vrije Universiteit Brussel (VUB), Belgium and was a Guest Professor
at Utrecht University (the Netherlands). Her research expertise is in the area of elite
sport, sport development, sport policy and management, youth sport, effectiveness,
benchmarking and competitiveness. She has published 11 books (e.g. the Global Sporting
Arms Race, Managing High Performance Sport), written more than 70 refereed articles,
delivered over 130 presentations and been invited as a keynote speaker at over 50
conferences around the world. She is leading a worldwide international network on high
performance sport and (elite) sport policy systems called SPLISS (Sports Policy factors
Contributors xiii
Leading to International Sporting Success), which was also the subject of her PhD in
2007, and is now developing in several directions (e.g. sport specic, PARA-SPLISS).
Veerle is co-editor of the International Journal of Sport Policy and Politics (IJSPP) and the
Global Sport Management Journal, and board member of the European Sport Management
Quarterly (ESMQ), the European Association of Sport Management (EASM) and the
Steering Committee of elite sport in Belgium (Flanders). Over the past years she has
been a consultant in several organisations worldwide.
John Harris
Currently Associate Dean Research in the Glasgow School for Business and Society at
Glasgow Caledonian University, Dr Harris was previously a tenured Associate Professor
in Sport Administration at Kent State University (USA) and has also worked at univer-
sities in England and Wales. His publications include the sole-authored text Rugby Union
and Globalization and the co-edited collections on Football and Migration and Sport and
Social Identities. Dr Harris is Leisure & Events Subject Editor for the Journal of Hospital-
ity, Leisure, Sport and Tourism Education and also serves on the editorial boards of the
International Journal of Sport Communication and the Journal of Sport & Tourism.
Insun Sunny Lee

Dr Sunny Lee is a Lecturer in Event and Tourism Management in the School of Manage-
ment, University of South Australia. Her research interests include the role/impact of
events (business events, festivals, sport events), visitor experiences, youth tourism, ethnic
identity issues in the tourism industry, destination branding and regional development. She
has been involved in various research projects in a range of event management and visitor
studies at the local level as well as internationally, such as research on destination branding,
event setting and facilities, event visitor experience and satisfaction, and tourist experience,
using qualitative and quantitative methods. Her research has been published in top journals
in the eld of tourism and event management.
Eric MacIntosh
A current Associate Professor of Sport Management at the University of Ottawa in
Canada, Dr MacIntosh researches and teaches on various organisational behaviour and
marketing topics covering concepts such as organisational culture, leadership, image and
brand. His research delves into the functioning of the organisation and how creating a
favourable culture can transmit positively internally through human resources and out-
wardly into the marketplace. Dr MacIntosh has been involved in many research projects
with prominent international multisport events and sport organisations (e.g. Common-
wealth Games, Youth Olympic Games, Right to Play). He is a widely published scholar
and an avid speaker in sport management internationally. Dr MacIntosh has also co-
edited the book International Sport Management.

Megat received his bachelor and masters degrees in sport management from St. Thomas
University, Miami, Florida. In doing so he became one of the rst Malaysians to have a
degree in sport management. He was then entrusted by the University of Malaya to
initiate the countrys rst sport management baccalaureate programme in 1995. He is
xiv Contributors
now a Senior Lecturer at the Faculty of Education and his research interests are in the
study of sport industry, nancial aspects of sport as well as sport management education.
He was appointed consultant by the Ministry of Youth and Sport, Malaysia to conduct
research in the sport industry as well as training the trainers of local sport management.
He was Vice President of the Asian Association for Sport Management for two terms
and is the Founding Member of the Malaysian Association for Sport Management.
Ashlee Morgan
Ashlee Morgan splits her time between academic work and operating her own business
in the hospitality/events sector. Ashlee recently completed her PhD in sport manage-
ment and was a lecturer in the Management Discipline Group at the UTS Business
School. Ashlee is now a casual academic, teaching and researching with colleagues at a
number of Australian universities. Her research interests are primarily in strategic alli-
ances and business relationships within the sport industry.
Duncan Murray
Duncan Murray, PhD, is a Senior Lecturer in Sport and Recreation Management at
the University of South Australia. He has published in a range of academic journals in
areas, including: leadership, globalisation, celebrity endorsement in sport, customer
behaviour in recreation and sport settings, tourism, appearance and attractiveness and
the management of sport and recreation. He recently contributed a chapter on culture,
sport and migration to the latest edition of the textbook Australian Leisure and is an
editorial board member for Sport, Business, Management: An International Journal. He
is a reviewer of academic papers for a number of leisure, recreation and sport aca-
demic journals, including the Journal of Leisure Research, Managing Leisure and Annals
of Leisure Research.
Winnie OGrady
Winnie OGrady is a Lecturer in Management Accounting at the University of Auck-
land. Her research addresses the integrated operation of performance management and
control systems, using the Viable System Model and other frameworks of management
control systems as framing devices. Additional research areas include beyond budgeting
and lean approaches to performance management and control. Winnie has published in
Management Accounting Research, Qualitative Research in Management and Accounting
and the Accounting Research Journal.
Brenda Pitts
Dr Brenda G. Pitts is a Professor of Sport Management and Director of the Sport
Business Research Center at Georgia State University in Atlanta, Georgia. Dr Pitts
has received the most prestigious awards in the elds of sport management and sport
marketing including the Dr. Earle F. Zeigler Scholar Award, Distinguished Sport
Management Educator 2014, Garth Paton Distinguished Service Award 2004, the
Diversity Award 2016, Nominee for the Stotlar Award for Distinguished Educator in
Sport Marketing, and one of the rst Research Fellows of the North American Society
for Sport Management (NASSM) and of the Sport Marketing Association (SMA). She
is author or co-author of six sport marketing textbooks, one of which is translated
Contributors xv
into three languages, co-author of the rst textbook on research methods in sport
management, and the editor and an author in three Sport Marketing Associations
Book of Papers. She is a Founding Team Member of the new World Association for
Sport Management, and serves as Associate Editor for the Global Sport Business
Journal of the Global Sport Business Association. Dr Pitts has published numerous
papers in several scholarly journals. On the fun side of life, Dr Pitts is an avid athlete
and loves to play, enjoying all kinds of sports. Her prolic career in basketball from
grade six through University of Alabama and professional brought her such awards as
the retirement of her high school basketball uniform number, membership in the A
Club of the University of Alabama, Huntsville (Alabama) Sports Hall of Fame
Inductee, Womens Basketball Hall of Fame Inductee as a player in the rst Womens
Professional Basketball League (WBL) and an inductee nominee for the Alabama
Sports Hall of Fame.
Wirdati Mohd Radzi

Wirdati is currently a Senior Lecturer at the Sport Centre, University of Malaya Kuala
Lumpur. With a background in law and sport management, she lectures in sport manage-
ment subjects such as sport law and risk management, among others. She is actively
involved in research on the social aspects of gender and/in sport. She is also interested in
research areas that involve multicultural aspects and sport, especially Muslims, as well as
the sociological aspect of sport within Muslim communities. Her PhD thesis is on Muslim
women sport managers in Malaysia and introduced her to another aspect of research
interest concerning sport policy and governance. She is also involved at the regional Asian
Association of Sport Management, having been elected as the Treasurer in 2014.
Sam Richardson
Sam Richardson is a Senior Lecturer in Economics in the School of Economics and
Finance at Massey University. He teaches principles and intermediate level micro-
economics, as well as sport economics. His research covers several areas within the eco-
nomics of sport, including the realised impacts of sport facilities and major sport events
on host economies, as well as the value of sport-generated remittances in the South
Pacic and the value of imported New Zealand rugby coaches on international teams.
Emma Sherry
Emma Sherry is an Associate Professor within the La Trobe University Centre for Sport
and Social Impact, specialising in the area of sport development. Emmas current
research interests include community development through sport activities, undertaking
a broad range of research projects with national and regional sport organisations in Aus-
tralia and Oceania, including Netball Australia, National Rugby League, Australian Foot-
ball League, Tennis Australia and Hockey Victoria. Other recent research has included
access and equity in sport participation, sport in correctional facilities and sport and
recreation for at-risk and marginalised communities. Emma is currently supervising a
number of PhD students in the areas of sport for development in India and with refugee
communities, para-sport athlete well-being and elite athlete career transition. Emma is
also co-editor for the Journal of Sport for Development and is on the Editorial Board of
Communications and Sport Journal.
xvi Contributors
Popi Sotiriadou
Dr Popi Sotiriadou is an Associate Professor of Sport Management at the Grifth Busi-
ness School, Grifth University, Australia. The areas of her research expertise include
sport development, high performance management, athlete branding, club management
and sport policy. Her research has gained such acceptance that she has been invited to
consult the Australian Sports Commission, Sarawak (Malaysia), Cycling Australia,
Basketball Queensland and the Queensland Academy of Sport on sport development
and high performance management. Popi was the Guest Editor for a special issue of
Sport Management Review on sport development published in 2008, and the special issue
on Managing High Performance Sport of the European Sport Management Quarterly. She
has published the books The Sport Development Processes and Practices in Australia: The
Attraction, Retention, Transition and Nurturing of Participants and Athletes (2008) and
Managing High Performance Sport (2013).
Tracy Taylor
Tracy is a Professor of Sport Management, with a particular focus on human resource
management and executive leadership development. Her research covers the areas of
cultural diversity management in sport, volunteer management and sport and security.
She has published over 100 research peer reviewed journal publications, over 20 book
chapters, four books and various consultancy project reports. Professor Taylor regularly
delivers executive education programmes in leadership and executive development. She
is currently on the IOC Athlete Learning Gateway Advisory Board and the Australian
National Rugby League Research Board. She is also a Professor in the IOC-recognised
Masters Executive Managing Olympic Studies and the Masters programme of the
Russian International Olympic University. She is currently the Editor of the European
Sport Management Quarterly.
Ashleigh-Jane Thompson, PhD, is a Lecturer in the School of Sport and Exercise at
Massey University, Palmerston North. Her research examines the utilisation of new
media by sport organisations and athletes, as well as the impact of social media on sport
fandom, and has been published in journals such as Communication and Sport, the Inter-
national Journal of Sport Communication and the Journal of Applied Sport Management.
Additionally she has presented her research at numerous international conferences in
countries such as Australia, the United States, Ireland and the United Kingdom. In addi-
tion to her scholarly pursuits, Ashleigh maintains active connections with the sport
industry by partnering with sport organisations for research projects, as well as volun-
teering as a media operations assistant at national and international sporting events.
Paul Turner
Paul Turner is a Senior Lecturer in the Department of Management in the Deakin Busi-
ness School at Deakin University. He has worked within the Sport Management Program
at Deakin for over 20 years having been Course Director from 2005 to 2010. He was
also programme coordinator for the Honours Program within the School of Management
and Marketing from 2011 to 2015. Paul has published in the Journal of Sport Manage-
ment, Sport Management Review and Sport Marketing Quarterly, primarily in the area of
Contributors xvii
sport broadcasting and media. He has (co)presented numerous conference papers at over
30 domestic and international sport management conferences. He previously worked in
Womens Soccer (National), State Soccer and State Touch sporting Associations in Aus-
tralia, also being a recipient of an Australian Sports Medal in 2000 for services to
womens soccer. He was the Competition Coordinator for Melbourne Football for the
Sydney Olympic Broadcasting Organisation (SOBO) during the 2000 Olympic Games.
SECTION 1
The sport management

environment
CHAPTER 1
The new sport management

environment
Ian OBoyle and Trish Bradbury
Key Terms: Professionalism; Commercialisation; Governance; Financial Management
INTRODUCTION
Sport management has come a long way in the past 20 years. As a previously volunteer-
led sector even at upper echelons of the industry, the sport management environment
has now evolved into a legitimate professional and commercial sector and continues to
grow in size and scope in many nations throughout the world. The growth in broadcast-
ing revenue and other commercial aspects of the industry have largely fuelled this more
professionalised approach and this has undoubtedly had a trickle-down effect through-
out all levels of sporting structures, from elite to community based sport. The industry
has often been criticised for not staying on pace with developments in the traditional
business sector such as adopting what may be considered to be best practice in those
environments, but over the past decade we are seeing more and more sport based organi-
sations align their operations with traditional business and management practices that
has legitimised the sector further and has made it a respected and vibrant part of the
global business and management environment.
However, the uniqueness of sport, as an overall product, presents a number of chal-
lenges and complexities that must be overcome, such as the use of performance enhanc-
ing drugs in elite level sport, governance failures and challenges at almost all levels of the
industry, specic strategic and marketing principles that must be applied, and the emer-
gence of match xing and other forms of unethical behaviour, to name a few. This book
discusses the most important of these challenges as individual chapters and relies on the
most up-to-date academic research in the eld to provide insight and perhaps to illumi-
nate a path of how such challenges can be addressed and overcome. As the opening
section in this book, the current chapter attempts to provide a context for the current
state of the sport management eld while also highlighting what is to follow in the forth-
coming chapters.
4 Ian OBoyle and Trish Bradbury
THE SPORT MANAGEMENT ENVIRONMENT
The sport management industry, like most other sectors, is heavily impacted by a
number of other environments, such as the political, economic, social, technological and
legal environments. From a political standpoint, many sport organisations rely directly
on government support to fund their activities and to produce high performance athletes
while maintaining growing participation levels in their respective sports. We also regu-
larly see the impact that geopolitics has on the sport management environment through
the selection of countries to host mega sporting events such as the Olympic Games and
football World Cups. Organisations such as the International Olympic Committee
(IOC) and the Fdration Internationale de Football Association (FIFA) have become as
much politically based entities as they are sporting organisations with ties to major
players in the global political environment that heavily impact the global sporting frame-
work. From the economic and social perspectives, the sport management industry is also
impacted due to issues such as the global nancial crisis, which saw a general decline in
commercial sponsorship within the sector, and social trends such as individuals leading
more sedentary lifestyles and growing levels of obesity in various countries. Technology
is also having a major impact within sport management from the growth of eSports, to
improving the capabilities of sport organisations, to enhancing the customer (fan) experi-
ence through increased viewing options via smartphones, tablets, social media and live
streaming of many major sporting events. And of course, the impact of the legal environ-
ment on sport management continues to be signicant, particularly around issues such as
the growth of combat sports like the Ultimate Fighting Championship (UFC) and their
regulations, corruption and nancial irregularities in organisations such as FIFA, match
xing and the use of illicit and performance enhancing drugs by athletes.
As the sport management industry has adopted a more professional ethos, we con-
tinue to see a steady growth in the ability of certain entities to generate signicant levels
of nance. We often see big headlines of the major sporting leagues around the world
signing multibillion-dollar broadcasting deals that allow these entities to increase player
salaries and nancial returns to owners/investors while safeguarding the future of such
leagues through a strong nancial foundation. However, although in certain contexts,
such as in the sport of Australian Rules football, there may be a trickle-down effect to
lower levels of the code, many non-prot sport organisations continue to struggle nan-
cially and are often at risk of building up large levels of debt and having to be bailed out
by afliated organisations, as was the case with the Otago Rugby Union and New
Zealand Rugby (NZR) in 2012.
It is becoming increasingly important to ensure that individuals who are in positions of
power in sport organisations, such as senior managers and board members, have an ade-
quate level of business and nancial management acumen to provide the prospect of nan-
cial sustainability for their respective sports. There are many sources of nance a non-prot
sport organisation can access, which is often referred to as the income mix. In many
western European nations and within Australasia, signicant funding for non-prot sport
comes from government entities, but this is often tied to the potential for those sports to
perform well at major sporting events and achieve high performance results. As a result,
this form of funding is notoriously unpredictable and unstable and sport organisations
The new sport management environment 5
should not rely solely on this type of income. Diversication in the income mix is crucial
for the sustainability of these sporting codes and the ability of organisations to generate
commercial income, including corporate sponsorship, is paramount. Yet again, however,
the ability of sport organisations to achieve this is often dependent on the calibre of indi-
viduals involved in the management and governance of these entities.
Perhaps the biggest issue to impact the sport management environment in recent
years, both at the elite and non-elite level, is the area of sport governance. The topic
received global media attention in 2015 due to the level of corruption that was uncov-
ered in FIFA surrounding the illegal payments and misappropriation of funds embedded
in the culture of FIFA and facilitated by some of the most senior gures in the organisa-
tion, including former president Sepp Blatter. What followed was an investigation by the
Department of Justice in the United States and several indictments of senior FIFA of-
cials. FIFA itself has attempted to undertake a reform process but has been criticised for
not doing enough, and many of the alleged actors in the corrupt regime of the old FIFA
continue to act in positions of power in the supposedly reformed entity.
One of the major points in relation to this embedded culture of corruption and fail-
ings of sport governance has been the awarding of FIFA World Cups to Russia in 2018
and Qatar in 2022, with both bids apparently awarded through bribery and other
unethical and immoral actions on behalf of those in inuential positions. With regard to
Qatar 2022, the labour practices involved in the building of stadia to host the event have
come under scrutiny, with many construction workers having been killed due to unsafe
site conditions and other workers denied basic employee rights. FIFA has tried to dis-
tance itself from these issues by claiming that it is not its responsibility to govern the
labour practices of a country that is hosting a future World Cup.
FIFA is not the only international sport governing body to have made headlines for
poor sport governance practice in recent years. The IOCs lack of leadership around the
hosting of the 2016 summer Olympic Games in Rio de Janeiro has been called into
question. Many health experts throughout the world had called for these Games to be
postponed or moved to another location based on the prevalence of the Zika virus in
Brazil and the potential for it to spread globally should the Olympics go ahead in Rio.
Unsurprisingly, however, the IOC has been unwilling to postpone or move the Games
and this decision has been supported by the World Health Organization (WHO), with
whom the IOC has a close relationship that has been labelled by many as a conict of
interest surrounding this decision.
Lack of good governance practice is apparent not only in the upper echelons of the
sport management environment but also in systems that are characterised as non-prot
and responsible for governing sporting codes from elite to community level. In countries
where a federal model of sport governance exists, such as the UK, Australia, New
Zealand, Canada and a host of other major sporting nations, the issue of governance has
been at the fore as sporting systems try to establish streamlined networks that work
closely together to achieve whole of sport progression as opposed to an environment
where organisations often work in isolation and at times are in conict with their afli-
ated entities. This issue has been recognised by a number of state based sporting agencies
such as UK Sport, the Australian Sport Commission (ASC) and Sport NZ, which have
all called for better governance practices in non-prot sport and have produced docu-
ments and resources to assist organisations in this endeavour.
In relation to sport governance, an issue that regularly receives media attention and is
certainly a concern for many sporting entities is the area of performance enhancing drugs
(PEDs) in sport. The World Anti-Doping Agency (WADA) is often criticised for not
having a strong enough hold on the issue of PEDs in sport and for not dealing with the
issue appropriately. High prole athletes such as Lance Armstrong and Maria Sharapova
have brought the issue to the fore once again in recent times, and the extent to which
PEDs are being abused in high performance sport appears to be far greater than most
would have predicted. Russias state-sponsored doping programme is a prime example of
how far governments are willing to go to achieve success in international sporting events
and paints a dire picture of the culture of using such drugs that appears to be embedded
in certain sports and within certain countries sport science regimes.
As we can see, the sport management environment is far more complex than it was a
decade ago, both in terms of its professional and commercial capabilities but also in
terms of the issues facing the sector. The industry needs effective leadership from within
its own ranks that is based on best practice from more established elds such as the tra-
ditional business discipline. Academic work is an important element of driving the sport
management industry forward and relevant academic research is beginning to play a
signicant role in the development of policy and practices within many sporting bodies
both at the governance and management levels. We anticipate that this book, which
relies on the latest research in the eld in relation to a number of pertinent areas of sport
management enquiry, will add to the current conversation and assist in developing a best
practice approach for a variety of areas in the sport management industry.
STRUCTURE OF THE BOOK
This opening chapter presents a rough guide for the current context of the sport man-
agement environment and some of the major issues facing the industry in the 21st
century. This is followed by Chapter 2, which deals with the role of sport in society.
Sport has been ubiquitous to all cultures throughout history, playing an essential role in
the social and community life of people across the globe. We have found evidence of
sport and play in cave paintings, ancient artefacts, art and media, with sport being a
space for acculturation, learning important life skills, health and tness and of course
enjoyment as a participant or as a spectator. The focus of this chapter is on the impact of
sport in society and the various roles that sport can play for individuals, the community,
nations and internationally. This chapter will provide a brief discussion of sport and its
role in society before discussing how sport impacts different aspects of society, including:
playing sport, sport and government policy and sport for development.
Chapter 3 addresses the structural and functional aspects of sport governing bodies.
After describing the unique attributes of a sport governing body, the authors describe
the need for and the nature of the horizontal differentiation of the three manifestations
of sport: egalitarian sport, elite sport and entertainment sport. It is also stressed that
there should be a vertical differentiation of the three hierarchical units in a sport govern-
ing body, which are the institutional subsystem (i.e. board of directors), the managerial
subsystem consisting of the chief executive ofcers and their associates, and the technical
subsystem, which is involved in producing the services offered by national sport
governing bodies (NSGBs). The chapter also outlines the specic responsibilities of an
NSGB stemming from its position as the apex of an inter-organisational network.
Chapter 4 explores the world of professional sport. Professional sport is associated
with a payment to athletes involved in delivering sport, usually via a club or league com-
petition. These sports comprise many stakeholders who have a direct impact on their
functioning. These stakeholders represent internal groups such as the athletes, clubs,
leagues and governing bodies who have a direct impact on professional sport. This group
represents the people who provide the rules and regulations and actual spectacle of
professional sport. External groups represented by the fans, communities, corporations
and media are other stakeholders who contribute through attending, reporting and
having a commercial association with professional sport. The involvement these stake-
holder groups have on the professional sport system is addressed throughout this
chapter.
Chapter 5 focuses on the global sport environment. The chapter discusses the enor-
mity of the global sport landscape and the growing nature of multi and single sport event
opportunities. Given the ease of transportation and the available technologies that allow
for sport consumption, many professional sport leagues are strategically increasing their
product offering in overseas markets. However, there are many differences regarding
how professional sport leagues are organised. The different types of sport leagues and
their prominence in a particular market are addressed in this chapter. Attention is also
afforded to one of the most important changes in recent years within the global sport
environment: the role that social media plays in sport organisations communication.
Chapter 6 outlines and discusses the three principles of managing high performance
(HP) sport in non-prot sport organisations. These principles are (a) the elite athlete
development process, (b) the determinants of managing HP sport and (c) the strategic
management of HP sport. These three principles take the reader on an educational
journey that starts with the examination of managing the talent identication and devel-
opment pathways to the exploration of the macro, meso and micro environments and
the factors within them that inuence success in the athlete and sport development
process. It concludes with the importance of managing sport using a strategic approach
in order to achieve a competitive advantage and maintain long-term success in managing
HP sport.
Chapter 7 introduces the viable system model (VSM) as a tool for understanding
factors inuencing performance in organisations. The model is used to depict and analyse
the effectiveness of organisational structures observed in well-known sporting organisa-
tions. The discussion reveals the impact of observed systemic structure on organisational
performance and effectiveness. The case situations presented in this chapter are drawn
from contemporary and historical sport organisations both notional (virtual) and real.
Chapter 8 explores the strategic planning process in sport organisations. The import-
ance of developing adequate strategic plans and going through a robust process are dis-
cussed in this chapter. The various elements of a strategic plan are discussed alongside a
discussion focusing on the importance of goal setting and performance management in
order to achieve strategic objectives. The relevance of individual employees roles and
responsibilities in relation to the achievement of strategic imperatives is also examined.
Chapter 9 has a focus on the issue of volunteerism in sport. Volunteers are the life-
blood of most grassroots sport organisations. Taking on an array of critical operational
and supporting roles and duties, volunteers not only provide the labour required to
deliver sporting opportunities to the community, but they often are also the heart and
soul of those organisations. To be effective, volunteer contributions must be planned,
organised and aligned with both the organisations goals and with the volunteers moti-
vations for involvement. The chapter takes a human resource management approach to
provide a useful framework for good volunteer management.
Chapter 10 builds on what was introduced in Chapter 3 concerning the topic of sport
governance. This chapter takes an acute view of the sport governance domain by exam-
ining the role of women in sport governance positions, sport governance models in non-
prot sport, the role and concept of ethical decision making in sport governance, while
also exploring governance practices at organisations such as the IOC, FIFA and other
professional sport bodies. This conversation is complemented by a concise overview of
current work being undertaken in academia related to sport governance.
Chapter 11 explores the important role of leadership in sport management. The
chapter outlines the fact that leadership has changed, and what makes an effective leader
in the 21st century is not necessarily reective of what was perceived as effective even
only half-a-century ago. The authors contend that leadership is simply the application of
power to inuence others, whether in a business, personal or a sporting context. Rather
than give a complete overview of the broad topic of leadership, the chapter focuses on
three emergent leadership theories that reect the underlying changes in how effective
leaders are viewed: transformational, authentic and servant leadership. Three con-
temporary examples of sporting leaders that articulate each of these leadership
approaches are outlined to provide context to the theory.
Chapter 12 covers the topic of sponsorship in sport. Sponsorship is a funding mech-
anism that provides partial support to many sports, arts, entertainment and charity
organisations. Sponsorship has also become a communications platform for many com-
panies. Beyond these two practical aspects of sponsoring, the contractual linking of two
organisations is also a partnership where individuals must come together to work towards
shared goals. This chapter denes sponsorship and also distinguishes it from ambush
marketing; it also considers why each party to the agreement seeks the relationship. A
consideration of the role of sponsorship in organisations is included, as is a discussion of
possible conicts in sponsoring. The nal section examines the case of eSports as a spon-
sorship property of interest to brands.
Chapter 13 affords attention to the topic of sport marketing. The unique aspects of
marketing in terms of sport as opposed to traditional marketing are explored, along with
how the marketing process has some distinctive characteristics when applied to the
sporting context. Traditional marketing theory often relies on the 4 Ps of marketing
(product, price, place, promotion), and although these issues are addressed in the
chapter, the author also introduces the 4 Cs of sport marketing (consumer, company,
competitor, climate), which are catered specically for sport-related products and ser-
vices. Other elements of this chapter also examine the topics of market segmentation
and brand management, which are seen as being of utmost importance to a number of
sporting teams and organisations.
Chapter 14 examines the economics of sport. Economics focuses on how scarce
resources are utilised to meet a particular goal. As such, economics is an ideal t for the
analysis of sport, especially since goals within sport are often clearly observable.
Individuals, teams, leagues/competitions and the public sector all have goals, both on
and off the eld of play. Economics is also the study of how incentives affect our
behaviour, and sports provide vivid examples of how individuals and teams respond to
changes in incentives. This chapter introduces economics and its application to sport in
four areas: the behaviour of the individual athlete or team, the operation of sports
leagues (considerations and policies), public nance (the demand for government
funding), and non-sporting behaviour (cheating and tanking). The chapter draws on
several examples across the sporting world to illustrate the important role that economic
thinking plays in the modern sport sector.
Chapter 15 discusses modern forms of communication in sport management. Social
media are pervasive communication tools in contemporary society and modern con-
sumer culture. Its escalated use by athletes, teams and sport organisations has not gone
unnoticed. This chapter begins by providing a discussion on social media, along with an
overview of existing sport-related social media research. Specic consideration is given
to Facebook, Twitter and Instagram due to their rising prominence as platforms of choice
within the sport industry. These communication tools are particularly important for
sport organisations in the context of branding and the development of consumer brand
relationships. This chapter provides a discussion of the key issues associated with social
media use in relation to these marketing communication activities. It concludes by
exploring various challenges that are faced by sport organisations as they seek to leverage
opportunities provided by these new media.
Chapter 16 explores how the law is applied and relevant within the sporting context.
The law in relation to the world of anti-doping is afforded attention along with an ana-
lysis of how criminal law can be applied in sport based cases. Tort law and breaches of
tort law appear regularly in the sporting environment, and as such a discussion of the
relevance of tort law to the sporting context is included in this chapter, as are issues of
negligence, breach of contract and intellectual property, and their related legal
implications.
Chapter 17 introduces the topic of sport event management. Sport events are an
important and growing event sector, encompassing the full spectrum of community
sport events and international sport competitions, and offer a range of experiences to
event spectators and participants, and generate various impacts on the community. As
the types and uses of sport events have grown, sport events have become more complex
and require diverse skills of event management, from operation skills to strategic mana-
gerial knowledge. In this chapter, the classication of sport events by size, sporting char-
acteristics and temporal characteristics is discussed. The second and third topics to be
discussed are the motivations of sport event spectators and participants, and the special
nature of sport events, which shapes their experiences. Lastly, a range of impacts of
sport events is discussed to illustrate the broader role of sport events for community,
economic and social development.
Chapter 18, the penultimate chapter in the book, explores sport tourism. The prac-
tice of sport tourism can be traced to ancient Greece and activities associated with the
Games at Olympia, but it was industrialisation that created the conditions for the devel-
opment of sport tourism as we know it today. This chapter discusses the way improve-
ments in transportation expanded the horizon of the different types of sport tourists
with concepts such as sport involvement and place dependency used to help explain
their behaviour. The mobility of sport and sport resources is shown to be a powerful
inuence on contemporary forms of sport tourism. Resource analysis is presented as the
starting point of a planning process to use sport tourism as a tool of social and economic
development, and a case study of surng at Byron Bay serves to illustrate the implica-
tions of a sport specialisation approach for destination management.
Chapter 19 acts as a summary chapter for the entire book. In this chapter we discuss
the major points from each of the chapters outlined above while also pointing to the
future trends and challenges in the sport management environment.
CHAPTER 2
The impact of sport in society

Emma Sherry
Chapter objectives
After completing this chapter, you should be able to:
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U ìVLii`L}ii>ì}>>>Vii>>i
vV>Vi
U ìv}iiìiV>`}>iviiV]V`-
ing regulation of media, integrity of sport, health, sport gambling and community
v>Vi
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Key Terms: Community; Participation; Performance; Government Intervention; Social

Change; Sport for Development
PLAYING SPORT
When we think of sport we often think of the high performance, professional leagues and
events that capture the attention of millions across the globe each week. However, there is
so much more to sport than the top end, commercial or professional spectacles, and, for
many or indeed most of us, our participation in sport is as a child or as a participant in
community clubs and events. This chapter discusses how we play sport, as children in
informal play, at school or in modied sport programmes, and as youth or adults in the
community. It is on these elds of sport that we see rst hand the impact of sport in society.
CHILDREN AND SPORT

From the moment children can crawl, they begin to play; they create and participate in
activities for enjoyment and recreation. As children develop their gross motor skills, this
spontaneous play becomes more organised and structured, although often following rules
of their own design or that suit the location of play. It is at the time of starting school,
12 Emma Sherry
although often earlier, that many children rst participate in organised or structured sport
in school or via community club or private sport programmes (Coakley, Hallinan &
McDonald, 2011).
The role of sport in the lives of children is complex, as for some families sport is an
unnecessary distraction from education, work or the arts, whereas for others, sport is
integral to their family and community context (Dowling, 2015). The education system in
many nations, however, has mandated physical education as a key component of a childs
overall education (Hoye, Nicholson & Houlihan, 2010), in particular to ensure that all chil-
dren develop their gross motor skills and physical strength and tness (Eime, Young,
Harvey, Charity & Payne, 2013). Today the focus on school sport and physical education
can be simultaneously for pleasure and participation and also to provide the rst introduc-
tion to the power and performance sports noted by Coakley and colleagues (2011) above.
Due to broad societal changes in many Western nations, we have seen concurrent
changes to the delivery of sport programmes to children. Changes such as the increased
workforce participation of both parents and in the understanding of what makes a good
parent have resulted in increased opportunities for formally organised sport programmes
outside school hours (Coakley et al., 2011). Further, increased fears of parents around
the perceived dangers of unstructured and unsupervised play have resulted in an increase
in parent or adult controlled and delivered sport experiences for children (Coakley et al.,
2011), in direct contrast to the relatively free-range parenting of earlier eras. A nal
important factor in the increase of structured sport programmes for children has been
the global professionalisation of sport, which has resulted in the increased visibility of an
extraordinary variety of sports at the professional level via multiple forms of media
(Nicholson, Kerr & Sherwood, 2015). In addition, for many children, a future as a
professional or elite athlete is a more tangible and visible goal than for previous genera-
tions (Coakley et al., 2011). Indeed, the notion that one can make ones fortune as a
professional athlete has resulted an incredible increase in the early specialisation of sport
participation for children, as the goal to reach the top, it is argued, requires early talent
identication and specialist coaching (Sotiriadou & Shilbury, 2009). Questions remain
unanswered, however, about the efcacy and indeed ethics of early specialisation, with
some arguing that early specialisation can lead to adverse physical and psychological
health outcomes (Mostafavifar, Best & Myer, 2013).
In many Western societies, we are noting a push back from this hyper-organised,
performance focused sport programming, in favour of more encouragement to allow
children the time and space to learn skills, develop tness, resilience and strength and
participate for the enjoyment of the activity (Burdette & Whitaker, 2005). This has
been realised through an increase in modied sport programmes specically designed
for young children that switch the focus to skills and fun (e.g. Hot Shots tennis in
Australia) (Phillips & Warner, 2016) and the increase in participation numbers for
non-traditional sports including skateboarding, surng and roller derby.
COMMUNITY SPORT
Traditionally, local community sport clubs and leagues are organised at the grassroots
level by the community and governed by local associations or regional governing bodies
The impact of sport in society 13
(Hoye, Nicholson, Westerbeek, Smith & Stewart, 2016; Misener & Doherty, 2009). For
many communities, sport participation for adults occurs in local community clubs and
leagues, with varying levels of participation, from those who are only seeking a fun
opportunity, to those who are on the pathway into or out of semi-elite competition.
However, this traditional format of organised sport is being challenged as many indi-
viduals in Western nations are increasingly time poor; in response, many sports are now
developing modied versions of their games to sustain or increase participation and to
broaden the participation base.
Shorter versions of games, often with rule changes and less physical tness required,
are being trialled in sports such as Australian Rules football (AFL 9s), tennis (Fast 4),
rugby (Rugby Sevens) and netball (Fast 5). By providing opportunities for the com-
munity to participate in sports in a way that suits their needs, the traditional sports are
ensuring their sustained success and longevity (Sotiriadou, Wicker & Quick, 2014). Sim-
ilarly, changing sport consumption patterns have led to changes in format. For example,
in the sport of cricket, which was once only played all in white in a ve-day format, has
developed new products to meet the needs of modern audiences. The introduction of
the one-day series (Wagg, 2013) and later the T20 format, both of which feature faster,
more spectacular game play, has been a resounding commercial success for the Inter-
national Cricket Council (ICC). Not only have the changes resulted in more spectators
and television viewers (Anstead & OLoughlin, 2011) as they reach very different audi-
ence demographics, but the format changes have also allowed for more diverse participa-
tion from non-traditional cricket participants, such as women and girls or those culturally
new to the game (ICC, 2016).
OLDER ADULTS
One of the largest and fastest growing demographic groups in the community are older
adults and, as a result of increased health and life expectancy, greater disposable income
and longer periods of retirement, we have seen a subsequent increase in demand for
competitive Masters sport and programmes targeting older adults. The World Masters
Games began in 1985 and have grown to become potentially the largest participatory
multisport competition in the world (IMGA, 2010). The Games are open to competi-
tors of all abilities, with the stated aim of the International Masters Games Association
(IMGA) being to support the Olympic movement and promote the Olympic Charter
message of sport for all. The IMGA aims are to promote and encourage mature athletes
from all over the world to participate in competitive sport in a socially stimulating atmo-
sphere; there are no national teams, nor qualication requirements, other than the
requirement that participants are over the minimum age set by sport federations for each
sport (IMGA, 2010). The Games carry an overarching message of friendship, inclusion
and participation, regardless of ability, national allegiance, race, gender or religion
(IMGA, 2010).
In addition to competitive sport for older adults via the Masters Games, many sports
also actively develop specic programmes and events for older adults, or those who are
no longer able to compete in the open level of competition. Walking Football is a modi-
ed version of soccer, which is gaining popularity across the United Kingdom and
14 Emma Sherry
Europe (Walking Football, 2016). The game, aimed primarily at people over the age of
50, is played at walking pace and players are penalised if they break into a run. Only
introduced in 2011, walking footballs popularity is evidenced by the boom in the
number of new walking football teams and the development of a national league in the
United Kingdom (Walking Football, 2016). Sports such as tennis, lawn bowls and golf
pride themselves on being lifelong sports that can be played socially into older age, and
in addition to providing health and tness benets (WHO, 2015), participation in sport
also facilitates strong social connections and social support (Holt & Talbot, 2011).
ALTERNATIVE SPORTS AND EVENTS
As the popularity of traditional sports wanes, although these sports are working towards
developing new and engaging sport programme offerings, more and more people are
being drawn to alternative sports and events, such as: barre classes, crosst and mud
runs, the most famous of which is the Tough Mudder franchise. These activities provide
tness and physical challenges, often in a team environment, but outside the traditional
organised sport system. The appeal of events such as these is a combination of the per-
sonal challenge of overcoming, quite literally, obstacles, with no ongoing commitment to
participation or membership of a club or association. In comparison, programmes such
as hot yoga, barre and Pilates are providing physical activity opportunities for those, pre-
dominantly female (Fitbit, 2016), who also wish to develop or maintain their health and
tness in a more holistic and non-competitive environment. All of these alternative
activities and events provide a sport-like experience for participants, outside of the tradi-
tional sport structures. In response, many sports are working with similar models of pro-
gramme design and delivery, such as tness programmes based on sport activities for
example, NetFit, a netball initiative, or Cardio Tennis, a tennis tness programme in
an attempt to capture this market.
SPORT AND GOVERNMENT
One primary arena in which sport impacts on society, or more appropriately where
society impacts on sport, is the intervention of government on the sport sector. This
section of the chapter provides a brief outline of six key areas where government most
commonly attempts to regulate and control sport and sport organisations: health, gamb-
ling and integrity, discrimination, media, sport facilities and nation building.
Health
Although sport participation has the potential to cause injury, sport and the physical
activity inherent in most sports have proven benets for health, such as aerobic tness,
strength and exibility (WHO, 2015). International governments and international
organisations, such as the World Health Organization (WHO), use policy and legislation
to increase or encourage the health benets of sport (Haskell et al., 2007; WHO, 2015).
Often linked with health promotion activities, sport and physical activity are leveraged
by governments in an attempt to address the global obesity epidemic and to help in the
prevention of non-communicable diseases (Haskell et al., 2007).
Policy instruments most commonly found in the sport and health nexus include:
physical activity guidelines; tax incentives; and public awareness and education
programmes.
Physical activity guidelines are developed and rened by government bodies with the
intent of encouraging citizens to be physically active to the extent that they will incur
the health benets associated with sport and physical activity participation (Haskell
et al., 2007). Tax incentives are provided with the goal of encouraging increased physical
activity: for example, governments might offer tax breaks to parents enrolling their
children in sport or physical activities or provide reduced taxes on sporting goods
(Tigerstrom, Larre & Sauder, 2011).
Public awareness and education campaigns seek to alert the public to the benets of
participating in physical activity and the health implications of inactivity (Knox, Taylor,
Biddle & Sherar, 2015) as governments try to use sport and physical activity to reduce
the signicant burden of health management represented by non-communicable diseases
(Habib & Saha, 2010). Limiting the sponsorship of sport teams by tobacco companies,
as has occurred in Australia (Hoye et al., 2010), may also be viewed as an intersection of
health and sport policy.
Gambling and integrity

Gambling or sport betting is one of the fastest growing revenue streams for sport organi-
sations internationally (Hoye et al., 2010) and, as a result, is becoming an increasingly
important area for government intervention and policy (Hoye et al., 2010). Gambling
has been an inherent component of professional sport since the ancient games, with
sports such as horse racing and boxing fundamentally delivered for the purpose of
betting and wagering (Forrest, 2006). Hand in glove with gambling goes the concept of
integrity in sport, and governments across the globe and international and national sport
federations alike seek to use regulation and legislation to ensure the integrity of sport
competitions to avoid cheating and match xing behaviours (Forrest, 2006). Govern-
ments in many nations use regulation and policy to control illegal betting and to collect
any associated taxation from approved sport betting activities (Hoye et al., 2010).
The Australian Sports Commission (ASC), the primary statutory agency charged with
administration of sport in Australia, provides good examples of typical government inter-
ventions in sport with respect to integrity. The ASC states activities and behaviors that
dene sport as lacking integrity include: creating an unfair advantage or the manipula-
tion of results through performance enhancing drugs, match xing or tanking (ASC,
2016). In addition, the ASC includes anti-social behaviours displayed by parents, spec-
tators, coaches and athletes, such as bullying, harassment, discrimination and child abuse
as lacking in integrity and has instigated policy and guidelines to limit or control such
behaviours in the form of member protection policies (ASC, 2016). Further, the ASC
has developed a suite of policies, strategies and guidelines that address issues of discrimi-
nation in sport: the Fair Go Sport initiative aims to address homophobia; the National
Anti-Racism Strategy focuses on reduction of discrimination due to race or ethnicity; the
Play by the Rules initiative promotes messages around safety, fairness and inclusion; and
16 Emma Sherry
the Good Sports programmes intent is to reduce the use of alcohol in community sport
clubs (ASC, 2016).
Perhaps the most commonly discussed issue of integrity in sport is the issue of
doping and the use of performance enhancing drugs. Sensational cases, such as that of
Lance Armstrong, which saw a world champion athlete nally, after years of denial,
admit to ongoing, systematic use of performance enhancers in the Tour de France,
have elevated the issue of doping in the public consciousness. Governments and inter-
national agencies have developed strict rules around the use of performance enhancing
substances in an effort to preserve what is intrinsically valuable about sport (ASC,
2016). The World Anti-Doping Authority (WADA), an international independent
agency composed and funded equally by the sport movement and governments of the
world (WADA, 2016), has developed the World Anti-Doping Code, a document that
harmonizes anti-doping policies, rules and regulations within sport organizations and
among public authorities around the world (WADA, 2016). The code, to which all
signatories must adhere, addresses ve technical standards: the prohibited list, a record
of banned substances; testing and investigations, effective testing of samples; laborato-
ries, accreditation of laboratories; therapeutic use exemptions (TUEs), determining
exceptions to the testing regime for therapeutic substances; and protection of privacy
and personal information, ensuring all agencies adhere to standards of information
protection (WADA, 2016).
Discrimination and safe sport

Sport has a long history of being a public platform to enact change in social attitudes,
with images of the black power salute on the Olympic podium in the 1968 Mexico City
Olympics (Cosgrove, 2014) or of the rst female to run the Boston Marathon power-
fully illustrative of a broader cultural change (Renick & Velez, 2013). Governments have
a role to protect sport participants from harm, both from physical harm, through
member protection policies around harassment and abuse, and from discriminatory prac-
tices that exclude participation by specic groups, such as women, people of colour, dif-
ferent sexualities and sexual identities, people with a disability and religious belief, as
demonstrated by the development and introduction of the suite of policies, strategies
and guidelines by the ASC discussed above.
The physicality of sport and the potential for power differential between, for
example, a parent and child, or a coach and child have unfortunately resulted in many
documented cases of child abuse in sport (Hoye et al., 2010). Governments work within
their own legislative frameworks and in partnership with national sport organisations to
ensure the safety of their participants, particularly children, from harmful behaviours
such as physical or sexual abuse. Child protection policies are mandated within many
sport organisations, and indeed this concept has now been extended to member protec-
tion policies to limit harmful behaviours within sport (ASC, 2016).
In addition to abuse prevention, member protection policies and associated govern-
ment policies seek to address the ongoing and complex issue of discrimination in sport.
Traditionally, sport has been a male space, or more specically a white, privileged male
space, with other genders, races, sexualities, abilities and religions often overtly excluded
from participation (ASC, 2016; Messner, 2001). Each nation has its own legislative
framework to protect its community from discriminatory practice; for example, Title IX
in the United States, aimed at providing equal access to males and females in sport, or
the Anti-Discrimination Act in Australia, addressing discrimination against a range of
groups, and these laws apply equally to sports. It is important to note, however, that
there are some instances where discrimination in sport is permitted; for example, gender
differentiation in the separation of mens and womens events in competition (e.g.
Parliament of Victoria, 2010). These discriminatory practices are the exception to the
rule, and are based on the premise of providing equal opportunity to participate against
similarly able competitors.
Media
Sport and the media are engaged in a uniquely interdependent relationship: media relies
on sport for a signicant portion of its content and audience, and sport relies on media
for substantial funding and promotion of its events and products. The role of govern-
ment in the sport media landscape is dependent on the different context for each nation
(Nicholson et al., 2015); for some, the regulation of the sport media is minimal, for
others, government policy and legislation places a heavier hand on the size and scope
of media outlets (Nicholson et al., 2015). When examining the government and sport
media context, it is essential to appreciate the rapidly growing and changing face of
sport media, particularly the use of new media platforms and social media by sport
organisations and broadcasters (Sherwood & Nicholson, 2013).
Government plays a key role in sport media via: (1) the regulation of the sale of
broadcast rights to sport events and leagues, such as ensuring fair competition between
broadcasters to ensure rights; (2) access to sport broadcasts, for example, ensuring key
cultural sport events are readily available on free to air television; (3) advertising content
associated with sport broadcasts, such as the ban on advertising tobacco products in
sport broadcasts in Australia; and (4) media ownership, in order to prevent vertical inte-
gration of the sport and media industries (Nicholson et al., 2015).
Facilities
As the administrator of the largest funding pool for many nations, government has a key
role to play in the development and construction of sport facilities, both community
participation facilities and larger stadia that support professional leagues and major or
mega sport events. In addition to construction funding, often achieved through a public
private partnership commercial arrangement (Coakley et al., 2011), governments often
own and/or manage the public land on which these facilities are built.
When developing policy and particular funding programmes for sport facilities, gov-
ernments must undertake a balancing act to ensure the public good for such an invest-
ment; however, the determination of public good may be complicated by factors such as
the history or prestige of a certain facility or event, the economic impact that can be
drawn to a city or country via the hosting of sport events and the social impact of the
facility on the local community, both good and bad (Coakley et al., 2011). Different
levels of government develop, manage and fund sport facilities for different reasons; for
example, in Australia the majority of sport facilities are managed by local government
18 Emma Sherry
authorities, whereas large stadia that host major and mega events are funded by both
state and federal monies (Richards, 2016). Governments also play a role in the ticketing
of events, with some governments regulating the sale of tickets to high prole events via
anti-scalping legislation (Drayer, 2011).
National identity
One of the most visible roles of government in sport is the use of sport as a tool for
nation-building and national identity (Marjoribanks & Farquharson, 2012). Sport is an
exceptionally visual and culturally important medium through which nations and
regions can demonstrate their pride and identity on a global stage. Nowhere is this
more illustrative than the Olympic Games, where governments spend many millions
of taxpayer funds to bid for the rights to host the Games, and use the Opening Cere-
mony as a platform to declare their position in the world and the identity they wish to
portray (Hogan, 2003).
Mega events, such as the Olympic Games, Commonwealth Games and FIFA World
Cup, provide a common meeting place for international governments to come together
to cheer for their nation and, more importantly, to meet with colleagues, industry and
international organisations to keep the wheels of international diplomacy turning
(Marjoribanks & Farquharson, 2012). It is important to note, however, that these inter-
national sport events are typically dominated by those countries that can afford to invest
heavily in high performance sport, leading some to argue that such events reproduce
global inequities (Marjoribanks & Farquharson, 2012).
SPORT FOR DEVELOPMENT
In recent years, society has become increasingly aware of sports capacity to foster a wide
range of social and developmental goals (Schulenkorf & Adair, 2014). Consequently, it
has received increased attention from government agencies, non-governmental organisa-
tions (NGOs), national sporting organisations (NSOs), sport practitioners and research-
ers both locally and internationally (Schulenkorf, Sherry & Rowe, 2016). In association
with these groups, frequently recognised under the banner of sport for development
(SFD), there has been a proliferation of sport and physical activity programmes designed
to deliver predominantly non-sport outcomes to individuals and their communities
(Coalter, 2006). Through engaging groups in physical activity and sport, SFD pro-
grammes not only have the opportunity to promote the health and well-being of parti-
cipants (Caperchione, Kolt, Tennent & Mummery, 2011), but also have the capacity to
play a substantial part in the social lives of young people. For individuals, sport provides
opportunities to express physical actions, and social identities, and to develop closeness
to other people (Spaaij, 2015).
Sport for development is an area of exceptional growth in the international sport
industry, and sees sport used in communities around the world to effect positive devel-
opment outcomes. Unlike traditional sport development, where the aim is to develop
the sport or athlete to their highest sporting potential, SFD focuses on using sport as a
tool to achieve broader aims that are most often outside the scope of the sport itself
(Coalter, 2006). These programmes most commonly aim to address the following: sport
for people with a disability; gender; livelihoods; health; education; and peace and social
cohesion. This section of the chapter now briey discusses each of these.
DISABILITY
Unlike programmes for Parasport athletes, where the aim is to develop athletes with a
disability and to enhance their sporting achievements, sport programming can also be
used as a platform to engage people with a disability in activities that support their
quality of life or social integration (Smith, Wegwood, Llewellyn & Shuttleworth, 2015).
Sport programmes have been used by a variety of NGOs to provide recreation oppor-
tunities for people with a disability (e.g. rugby league programmes in Papua New
Guinea; Sherry & Schulenkorf, 2016) or to facilitate skill development and social inter-
action for people with a disability and the wider community (e.g. community soccer
programmes in an intellectual disability supported-living facility; Gallant, Sherry &
Nicholson, 2015). The key to these experiences is that the sport programme or activity
provides opportunities for people with a disability regularly enjoyed by mainstream
populations; the actual sport itself is of less consequence than the opportunity for recre-
ation, social interaction, the negotiation of identity and engagement with support ser-
vices and programmes to enhance quality of life outcomes (Smith et al., 2015).
GENDER
One of the more common target populations for SFD are programmes specically targeting
women and girls. For many nations, women and girls are not afforded the opportunity to
participate in sport and physical activity (Sherry & Schulenkorf, 2016); women can be
excluded from participating in society more broadly, including reduced access to education
and employment and increased risk of harm from others (Sherry & Schulenkorf, 2016).
SFD programmes are often used as a culturally appropriate and engaging method to work
with women and girls for education and empowerment. A recent example of such pro-
gramming is found in an ICC initiative, Kriket Bilong Olgeta (Cricket Belongs to Everyone),
under way in a number of South Pacic island nations that seeks to engage young women
in the sport of cricket and provide a structured education programme around empower-
ment, hygiene and sexual health (DFAT, 2016). The provision of sport programmes, addi-
tional education and mentoring allows the women to discuss sensitive and important issues
in a safe and supportive space. Programmes such as these also provide women with trans-
ferable skills that can be used for future employment and nancial independence.
LIVELIHOODS
In addition to being a place for social interaction and fun, sport can also provide opportun-
ities for improving the livelihoods of SFD programme participants. In the context of high
income Western countries, evidence of sport being used to support livelihoods can be
20 Emma Sherry
found in programmes that seek to support at-risk populations and provide employment
skills; for example, the EPLs Kicks programme in the UK (EPL, 2016) or the NRLs School
to Work programme in Australia (NRL, 2016) are employment-focused programmes aimed
at encouraging young people to make positive life and career decisions. There has been
little research in this eld of SFD in the international context; however, a key aim of many
SFD programmes is to develop local capacity and leadership in programme participants,
with the aim to ensure the long-term sustainability and local community ownership of such
programmes (Sherry & Schulenkorf, 2016). As a result of the investment in SFD pro-
grammes internationally, local staff have been employed to deliver programmes, in coach-
ing and administration roles, and have undertaken further education and training to
facilitate future careers, thereby enhancing their employability outside sport (Sherry &
Schulenkorf, 2016). Another interesting side effect of some SFD programmes in develop-
ing nations has been the growth of local community market stalls alongside sport events.
As the sport programmes and events have grown, local women have set up food and drink
stalls to service the spectators and participants, increasing their own nancial independence
alongside the success and growth of the SFD programme.
HEALTH
An obvious outcome of many sport programmes is increased physical and mental

health (Sherry & OMay, 2013). SFD programmes often specically target health out-
comes when engaging with target populations, with the focus of activities on the
improvement of health outcomes for the individuals and their communities through
engagement with the programme. An illustrative example of such a programme is Kau
Mai Tonga, Ke Tau Netipolo! (Come on Tonga, Lets Play Netball!), a health and phys-
ical activity programme that used the sport of netball to facilitate physical activity and
to reduce or prevent non-communicable disease in women aged 1545 years (Netball
Australia, 2014).
Similar programmes have been delivered across many different nations with mes-
saging and education around: sexual health, hygiene, healthy food choices, AIDS pre-
vention and water safety (Schulenkorf et al., 2016). In addition, in national Western
contexts, many sports provide appealing and targeted programming aimed at encour-
aging healthy eating: for example, the Western Bulldogs, an AFL team in Melbourne,
works with local agencies to provide a mens health initiative, Sons of the West, a mens
physical activity, health and nutrition programme (Sons of the West, 2016).
EDUCATION
Using sport as an enticement to stay in school or higher education can be found in a

large number of SFD programmes internationally. The most common approach to
SFD and education is the concept of no school, no play, where students at risk or
with a history of truancy are engaged in a SFD programme but their participation in
the programme is contingent on their attendance and engagement at school. An
example of a programme such as this is Midnight Basketball. Midnight Basketball
began as an initiative in the United States; its aim was to provide an activity for at-risk
youth in order to keep them off the streets and therefore reduce anti-social behaviour.
The programmes success in its originating country has led to it being taken up inter-
nationally, including in Australia. The programme, now operating in sites around
Australia, provides a mix of sport and life skills to youth aged 1218; in addition to
having dinner and playing in basketball tournaments, participants must also attend
life-skills workshops that provide education and mentoring around positive life choices
(Midnight Basketball, 2011). Another recent example of SFD and education is the
Australian National Rugby Leagues League Bilong Laif programme (League for Life),
which provided funding of $AUS3.5 million from 2013 to 2016 to help improve
physical, social, literacy and maths skills for 50,000 students across 80 schools (Sherry
& Schulenkorf, 2016).
PEACE AND SOCIAL COHESION
Assessing the outcomes of SFD programmes and interventions is difcult, however,

one of the more challenging SFD contexts to both deliver and examine are those tar-
geting the social development outcomes of social cohesion and peace. Sport has a long
history of being used as a method of engaging and reconciling disparate or conicted
communities, often illustrated by the First World War example of the British and
German troops laying down their arms and playing football on Christmas Day.
Research has shown that SFD can provide opportunities for individuals and com-
munities to engage in sport with the aim to achieve conict resolution and peace
building, with the principal goals being: improvement in interpersonal engagement;
reduction of intergroup conict; and to pave the way for peaceful intergroup relations
(Schulenkorf, Sugden & Sugden, 2016).
Sport can also be used as a mechanism for increasing social cohesion in multicultural
or diverse communities, which may not be in overt conict, but may be experiencing
isolation or discrimination (Spaaij, 2015). Similar to the process outlined above for
peace-building outcomes, the aims of social cohesion SFD programmes are to increase
interpersonal engagement and to provide opportunities for social interaction and the
development of social support (Spaaij, 2015). The following case study provides an illus-
tration of the use of sport for social cohesion and the importance of a sport club to the
local community.
Case study: The Huddle

Katherine Raw La Trobe University
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REFERENCES
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v->V `] Cultural diversity in Australia
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24 Emma Sherry
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wi >` v>i >i] >vw>] >` >vviV Archives of Pediatrics Adolescent Medicine,
159]{qx
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V>yiViBMC Public Health, 11]q
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siesì` ]\V>}i `V>
>i]Sport in-development: A monitoring and evaluation manual`\1-
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VQualitative Research in Sport, Exercise and Health, 7x]q
>i] >}iivviViiv>V>}>>1i`->i>iSport Man-
agement Review, 14]q
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the psychological and social benets of participation in sport for children and adolescents: Informing
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tion and Physical Activity, 10]nq
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public health: Updated recommendation for adults from the American College of Sports Medicine and
the American Heart Association
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CHAPTER 3
Organisational structure and

theory of non-prot sport
organisations
Packianathan Chelladurai, Wirdati Mohd Radzi and
Chapter objectives
After completing this chapter you should be able to:
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Key Terms: Domains of Sport; Institutional Subsystem; Managerial Subsystem; Techni-

cal Subsystem; Apical Responsibilities; Social Responsibilities
INTRODUCTION
The label non-prot sport organisation covers a wide variety of sport organisations, includ-
ing city recreation departments, intramural and interscholastic sport departments in educa-
tional institutions, youth sport organisations and sport clubs afliated with industries,
businesses, etc. Prominent among these non-prot sport organisations are the governing
bodies of various sports at the international level such as the International Basketball Feder-
ation (FIBA), at the national level such as the Badminton Association of Malaysia (BAM),
at the provincial/state level such as the Ontario Volleyball Association (OVA) in Canada
and at the district level such as Coimbatore Cricket Association in India, as shown in Figure
3.1. This chapter describes and delineates the functions of national sport governing bodies
(NSGBs), also known as national sport organisations (NSOs).
NSGBs are different from other sport organisations in terms of their purposes and
processes. A governing body is dened as the group of ofcials who create and manage
28 *>V>>>
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International sport governing

bodies (e.g. FIBA)
National sport governing bodies

(e.g. Badminton Association of
Malaysia, BAM)
Provincial/state sport governing

bodies (e.g. Ontario Volleyball
Association, OVA)
District sport governing bodies

(e.g. Coimbatore Cricket
Association)
FIGURE 3.1 i>VV>ìv}i>Vivw}>>
the rules that govern the activities and conduct of an organisation, in this case a sport
organisation, and who ensure that the rules are followed. Thus, a sport governing body is
a sport organisation that has a regulatory or sanctioning function over its terrain com-
posed of (1) the sport it is concerned with, and (2) individuals, groups and units afli-
ated with it. This particular attribute of an NSGB sets it apart from other organisations
in the following ways (Chelladurai & Zintz, 2015).
NSGB COMPARED TO A STATE
First, an NSGB resembles a state. There are four kinds of social orders or the institu-
tional rule systems that govern how individuals and collectives pursue their self-interests:
the community where ones self-interests are made subordinate to the collective interest;
the market where individuals and organisations in a market pursue their own self-interest
and compete with others in the market; the state where individuals delegate the pursuit
of their self-interest to the collective power of the state, and authorise it to pursue such
a common interest even with force, if necessary; and the association, which is similar to a
state in that it also pursues common interests of its members but does not have the same
kind of power as a state (Schneider & Grote, 2006). Thus, the sport governing body as
an association of its members resembles the state. And the NSGB resembles a federal
state where the member units select their representatives to the national association,
which is given the authority to govern their activities keeping in focus the needs of both
the members and the national association.
Organisational structure and theory 29
Community
Associations
Self- Market
interests
State
FIGURE 3.2 -V>ì}i>Vi
In fact, an NSGB performs state-like functions (Chelladurai & Zintz, 2015). It represents
the nation in international forums. It displays the name of its country on all its team jerseys.
It carries the national ag and displays it as often as necessary. The name of the country is
displayed in all critical functions and events. The national anthem is played at the victory
ceremonies where its own athletes are involved. Just like a nation issuing passports to travel
abroad, the NSGB certies individual athletes to participate in specic events.
Typically, a country is governed at the national level (federal or central government),
at the provincial level (state or provincial government) and the regional level (regional or
district government). In a similar manner, a sport within a country is governed by the
NSGB at the national level, the provincial sport governing body (PSGB) at provincial
level, also known as the regional sport organisation (RSO), and the district governing
body (DSGB) at the district level.
NSGB AS A MONOPOLY AND MONOPSONY
A unique attribute of an NSGB is that it is both a monopoly, because no other entity has
any control or power over the affairs of the sport in question within the national borders,
and at the same time it is a monopsony, because it is the only buyer of the talent pro-
duced by member organisations in that the selection of the national teams is solely in the
hands of the NSGB (Chelladurai & Zintz, 2015). When we say that an NSGB is a mono-
poly, it does not mean that individuals cannot participate in the sport. It is conceivable
that groups of individuals can play a sport without reference to the NSGB or its afliates.
This happens often in municipal parks and school playgrounds. However, the NSGB is
the sole authority authorised by the international sport governing body to promote and
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control the sport within the national borders, organise various tournaments within the
country, ensure that the rules of the sport and those of the international federation are
followed, take punitive actions against those who break those rules, select national teams
for international competitions and represent the country in international forums. It is a
monopsony in the sense that those who have excelled in that sport can display their
excellence only as part of teams selected by the NSGB or its afliates at the provincial or
district levels and in the competitions organised by the NSGB. Even more striking is the
fact that such excellent sportspersons can participate in international competitions only
as members of the national teams selected by the NSGB. For example, in the case of
Harry Reynolds, the American track athlete who failed a random doping test in the early
1990s, plainly highlights the struggle between an athlete and the NSGB (in this case The
Athletic Congress or TAC) that was bound by the regulations of its international federa-
tion, the International Amateur Athletic Federation (IAAF ). What is clear from the case
is that international federations and its NSGBs practise monopsony in that they consider
only their rules and decision making process to be important and, above all, relevant to
manage the affairs of their operations, even when it is sometimes in conict with other
matters within their sport environment (McArdle, 2003).
MANAGING THE SPORT
It was noted earlier that the NSGB has jurisdiction over the sport it governs and the
regional organisations that are afliated with the national body. Let us focus on the sport
rst. We begin with the premise that an organisation is a social system recognised and
sustained by society because the attainment of stated goals by the organisation is
expected to serve society in specic ways (Parsons, 1960). The businesses claim to serve
society by providing quality goods and services at lower prices. Non-prots also claim to
serve society by providing goods and/or services to specic segments of society who are
in need of them. The existence of the NSGB is sanctioned and sustained by society
because the goals of the NSGB as stated in its mission and vision statements are expected
to benet society. In fact, the registration of the NSGB with the government is a legal
contract. Thus, the NSGBs primary social responsibility is to serve society by attaining
their stated goals of promoting and developing its sport within the rules and regulations
set by society (Chelladurai, 2016).
Any sport is manifested in three different spheres. Calling these egalitarian sport, elite
sport and entertainment sport, Chelladurai (2012) claried the distinctions between
them as follows. Egalitarian sport, variously called mass or participant sport, is funda-
mentally a gregarious activity engaged in for the pleasure derived from that activity.
Egalitarian sport includes everyone irrespective of their ability. It is an inclusionary
process with the motto the more the merrier.
But elite sport is restricted to persons of high ability with a determination to excel in
the activity. It is characterised by high dedication, huge sacrices and extraordinary
effort over a long time. Thus, in contrast to egalitarian sport, elite sport is a serious busi-
ness requiring great deal of planning for deliberate practice and progressively challenging
competitions. It is an exclusionary process wherein those who do not meet the standards
are eliminated at successive levels leaving only the best at the top.
Elite sport Entertainment sport
Pursuit of Spectating
excellence
Egalitarian sport
Pursuit of pleasure
FIGURE 3.3 The Three Es (3Es) of sport participation (adapted from Chelladurai, 2012)
The third segment of the sport industry is entertainment sport. The popularity of a
sport is the basis for the entertainment value of that sport. The more popular a sport is,
the more attractive it is to watch it being played. Further, the more highly skilled the
contestants are, the more appealing it is to watch the contest. It is not surprising that
sport organisations have capitalised on this opportunity to commercialise the entertain-
ment value of their respective sports.
The major characteristic that distinguishes between the three manifestations or seg-
ments is the differing purposes of engagement in sport. People engage in egalitarian sport
for the pleasures residing in the activity; participants in elite sports are seeking excel-
lence in that activity; and those who engage in entertainment sport are of two kinds: (1)
spectators or the fans who ock to see excellence in competition and (2) those contest-
ants who provide the entertainment. The description of the purposes of these enterprises
in terms of who engages in it is one way of saying who the clients of these ventures are.
They are the general public in egalitarian sport, the few talented individuals in elite sport
and the paying public in entertainment sport. We should also note that in some cases
people may not have to pay to watch excellence in action, as, for example, in the case of
television viewers. It should also be noted that somebody else is paying to facilitate the
television viewing, that is, the sponsors and the advertisers.
The three segments can also be contrasted on the basis of the environment they interact
with and the opportunities and threats therein. The local community, government, social
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clubs and the local educational institutions constitute the environment for egalitarian
sport while the environment of elite sport extends to regional and national governments
and sport governing bodies and other competing units. For entertainment sport, while
the paying public are mostly from the local community, the franchise (or team) interacts
with other teams located in far-off places as well as with sponsors, advertisers and media
agencies.
Given these differing purposes, the processes of producing the relevant services and
the structural arrangements need to be differentiated from one another.
Differentiation occurs when an organization is divided into units according to

environmental exigencies, and those units are then staffed with people of the
appropriate aptitude and skills. Note that the concept of differentiation is not
identical to the concept of departmentalization . . . Because each unit is required
to interact with different segments of the environment (and these segments
differ in terms of certainty, feedback, and rate of change), each organizational
unit must be organized differently to enable it to cope with the particular sub-
environment and its requirements. A further necessary condition for differenti-
ation is that the members of a unit possess those specic talents and aptitudes
that match the demands of the environment.
(Chelladurai, 2014, p. 202)
It must be recognised that smaller NSGBs may not have the luxury of creating different
units for each domain of its sport. But the fundamental argument that the three domains
of sport need to be managed differently based on the task requirements of each and the
environmental contingencies faced by each is valid even in smaller organisations.
VERTICAL DIFFERENTIATION
The above discussion of differentiation dealt with three different organisational units
that were horizontally distributed within an NSGB, each dealing with one of egalitarian,
elite and entertainment sport. There is an equally important aspect of differentiation of
the units that are hierarchically organised with specic functions attached to each one of
them. In a typical NSGB, the board of directors (the board for short) is located at the
top of the hierarchy. The boards function is to set the mission and goals for the organ-
isation and to ensure that the processes for achieving the stated goals are implemented
properly by the set of managers next in the hierarchical line. Below the board, we nd
the Chief Executive Ofcer (CEO) and his or her immediate assistants who are all
involved in implementing the strategy approved by the board and supervise the activities
of those below them at the operational level, who are, in fact, the providers of the ser-
vices associated with each domain.
Adopting Thompson (1967) and Parsons (1960), Chelladurai (1987, 2014) conceives
of these three levels as the institutional, managerial and technical subsystems of an organ-
isation, as shown in Figure 3.4.
The technical subsystem is the unit(s) concerned with producing the services associ-
ated with each of the domains of sport (i.e. egalitarian, elite and entertainment sport).
Distal environment
Institutional subsystem
Managerial
subsystem
Technical subsystem
Egalitarian sport
Elite sport
Entertainment sport
Proximal (task) environment
FIGURE 3.4 6iV>

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The nature of the services provided in each domain and the processes thereof dene its
fundamental requirements. At the next level, we have the managerial subsystem, which
has the dual responsibility of both administering the technical system and serving it. In
administering the technical unit, the managerial unit ensures that the appropriate pro-
cesses in providing quality services are adequately followed and that they abide by legal
and ethical requirements. In addition, the responsibility of the managerial system is also
to ensure that the technical system has the right personnel, enough nancial resources,
facilities, etc. to carry out the production of services effectively and efciently. In other
words, the managerial system acts as a buffer between the technical system and the
environmental turbulences. Finally, the institutional subsystem at the top of this hierarchy
sets the objectives and policies of the organisation, recruits and hires the top managers,
ensure that these managers execute the policy effectively and interact with the distal
environment to legitimise the organisation in order to secure governmental and societal
support for the organisation.
One line of research undertaken to understand and help the performance of sport
governing bodies focuses on the boards of those organisations. A sample of the topics
covered include cohesion (Doherty & Carron, 2003), role ambiguity (Sakires, Doherty,
Misener, 2009; Doherty & Hoye, 2011), ethics (Henry & Lee, 2004), strategic capability
(Ferkins & Shilbury, 2010, 2012), board performance (Ferkins, McDonald & Shilbury,
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2010), intragroup conict (Hamm-Kerwin & Doherty, 2010), leadership (Hoye, 2004,
2006) and board power (Hoye & Cuskelly, 2003b).
Of the above topics, the topic of board capability has been vigorously pursued by
Ferkins and her associates (e.g. Ferkins, McDonald & Shilbury, 2010; Ferkins & Shilbury,
2010, 2012; Shilbury & Ferkins, 2011). In the most recent publication, Ferkins and
Shilbury (2015) dene board strategic capability as the ability of the board to function
strategically, which also involves processes of environmental analysis, strategic thinking
and decision-making, as well as the design, enactment, and monitoring of strategic prior-
ities (p. 490). More signicantly, they identied six central factors of board strategic
capability, which are:
s increasing contribution of volunteer board members, including their will to engage in

and their skill to execute board functions;
s board operational knowledge, referring to board members understanding of and
insights into the operational details of their organisation;
s board integrating regional entities, denoting the boards recognition of regional entities
and involving them in a collaborative governing process;
s board maintenance of the monitoring and control function, highlighting the importance
of the board evaluating the outcomes and holding the CEO accountable for those
outcomes;
s board co-leading strategy development, which emphasises the signicance of the board
including the CEO in strategy formulation;
s board co-leading the integration of strategy into board processes, which refers to the
extension of the collaboration into boardCEO shared leadership.
In proposing their theory of Board Strategic Balance, Ferkins and Shilbury argue that
board strategic capability:
might be further maximised by the boards ability to balance (and hence under-
stand the relationship between each component) all of the contributing com-
ponents, to manage the tensions between them, to acknowledge the paradoxes,
and pay attention to each in order to achieve optimum strategic capability.
(2015, p. 497)
It makes eminent sense that the board should be involved in collaborating with the CEO
and member units in setting the strategy and formulating the policy thereof and oversee-
ing the implementation of such policy. It is also logical that the board members need to
be knowledgeable in the operational procedures of their respective organisations for
them to be able to oversee those operations.
However, it does not mean that the board should be involved in supervising the day-
to-day operations.
The governing body must govern; that is, it must provide leadership and
strategy and must focus on the big picture. Governance is about planning the
framework for work and ensuring it is done. As such, it is distinct from manage-
ment (organising the work) and operations (doing the work). As far as possible,
the governing body should therefore steer clear from making managerial deci-
sions and getting involved in the day-to-day implementation of strategy.
(www.wheel.ie/content/management-vs-governance)
While the distinctions among the three subsystems have been articulated by others (e.g.
Thompson, 1967), Parsons thrust is unique because he emphasised that there should be
a clear break in the simple continuity of the authority structure among them (i.e.
between the institutional and managerial subsystems, and between the managerial and
technical subsystems). The organisational design should be such that one subsystem does
not interfere with the functioning of the other two subsystems. That is, the institution-
alization of these relations must typically take a form where the relative independence of
each is protected (Parsons, 1960, p. 69).
Chelladurai (2014) notes that this Parsonian perspective is widely practised in the
management of intercollegiate athletics in the United States. While the board of gov-
ernors of the university (i.e. the institutional subsystem) has considerable power over its
athletic department in terms of hiring and ring the athletic director and the coaches, it
does not engage in the internal affairs of the department, which is the responsibility of
the athletic director and his or her assistants (i.e. the managerial subsystem). By the
same token, the managerial subsystem does not interfere in the coaching of the teams
(the technical subsystem). In addition, the managerial subsystem resists any attempt by
the board or its members to engage in the internal affairs of the technical core, that is, in
how the coaches coach their respective teams.
MANAGING THE SUBUNITS
Now to the issue of managing the national sport organisation and its regional afliates.
The International Olympic Committee (2014), the Australian Sports Commission
(2012) and the European Union (2013) have all articulated several principles of good
governance to be followed by sport organisations in general and sport governing bodies
in particular.
For instance, the IOC advanced the following basic universal principles of good
governance to be respected by all Olympic constituents:
s TRANSPARENCYOFTHERULESCLEARTEXTSMUSTEXISTANDBEACCESSIBLEANDCIRCULATED
s lNANCIAL TRANSPARENCY IN PARTICULAR lNANCIAL COMMITMENTS TENDER PROCESS DISCLO-
sure of nancial information, accounts in accordance with generally accepted
accounting principles, audit by a qualied, independent entity;
s TRANSPARENCYOFMANAGEMENTAGENDADOCUMENTATION
s TRANSPARENCYOFMANAGERSJOBDESCRIPTIONSOBJECTIVECRITERIAFORRECRUITMENT
s TRANSPARENCYOFRISKMANAGEMENT
s EFlCIENTINTERNALCOMMUNICATION
s SHARE RESPONSIBILITY CLEAR TEXT ON THE RESPECTIVE RESPONSIBILITIES POLITICALMANAGE-
ment decisions);
s CONTROLLED RESPONSIBILITIES CLEAR AND REGULAR REPORTING FROM ELECTED AND APPOINTED
ofce holders;
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s REGULARANDLEGITIMATEELECTIONS
s RIGHTTOAPPEALABOUTALLFORMSOFDISCIPLINARYMEASURES
s RESPECTOFMINORITIESRESPECTOFTHERIGHTOFEXPRESSIONFREEDOMOFSPEECH
The above and other documents on good governance have clearly articulated how all of
the activities of a sport governing body should be carried out. They all stress that man-
agers of sport governing bodies need to be competent, accountable, ethical, democratic,
inclusive, harmonious, transparent and so on. However, they do not address the issue of
what the NSGBs should be doing.
Chelladurai (2006) and Chelladurai and Zintz (2015) have offered a scheme of what
the NSGB responsibilities are based on a consideration of the NSGB as the apex of an
inter-organisational network consisting of member organisations and as arising from its
corporate social responsibility.
APICAL RESPONSIBILITIES OF AN NSGB
Based on earlier work on inter-organisational networks (e.g. Human & Provan, 1997;
Provan, 1983; Provan & Kenis, 2007; Van Gils, 1998), Chelladurai (2006) and Chelladurai
and Zintz (2015) noted that the NSGB has specic functions imposed on it because it is at
the apex of an inter-organisational network consisting of state or provincial sport governing
bodies. The list of the apical functions they identied include the following.
Governing member organisations

The primary task of the NSGB is to govern the member organisations as per its constitu-
tion approved by the general body. By the same token, the NSGB should ensure that the
member units also follow their respective constitutions and abide by the rules and regu-
lations of the parent body, the National Olympic Committee (NOC) and the govern-
ment agencies.
Guarding democracy in the NSGB

The NSGB should maintain and sustain the integrity of the democratic processes in its
own affairs and those of the member units. As a corollary, the NSGB should also ensure
equal representation and equal rights of participation of all member units. Finally, to
ensure the democratic process, the NSGB should facilitate free exchange of all relevant
information among all participants in the network.
Fostering cooperation and collaboration among

member units
The NSGB should also facilitate pleasant and productive interactions among member
organisations for better coordination of interdependent activities among member organi-
sations and foster cooperation among them such that there is free ow of information
and sharing of knowledge and reductions in uncertainty in transactions among member
organisations (Kraatz, 1998; Park, 1996; Provan, 1983).
Creating trust
The NSGB has to cultivate the trust between itself and the other NSGBs, which is
fundamental for member organisations to follow the lead of the NSGB (Provan & Kenis,
2007). By the same token, the NSGB needs to create the trust between itself and the
government agencies and sponsoring entities that are major sources of resources.
Generation and sharing of revenues

Just like any other organisation, the NSGB should engage in generating monetary
resources through sponsorships, TV contracts, donations, government subsidies and
licensing and ticketing to ensure its own survival and prosperity. In addition, its apical
responsibility would dictate that it shares such resources with member organisations.
Enhancing member capacity to generate funds

Another apical responsibility of the NSGB would be to facilitate member organisations
to generate their own resources by educating them on the dynamics of securing sponsor-
ships, TV contracts, donations and government funds (Provan & Milward, 2001).
Facilitating effective management of member

organisations
The NSGB should also attempt to improve the management of the nances of member
organisations by passing on its own expertise and arranging seminars and other meetings
where experts can teach the members of provincial or regional organisations (Human &
Provan, 1997).
Managing diversity
NSGBs should take steps to increase the number of women and members of ethnic
minorities in its managerial and coaching ranks at the national and regional levels. As
managing sport becomes more mainstream, the importance of consideration of the
uniqueness and diversity of members of the NSGB becomes more apparent than ever.
Managing sport in a multiethnic society of today has become a specialised skill (Megat
Daud & Radzi, 2012).
It is fundamental that every NSGB tries to popularise its own sport. With increasing
popularity of the sport, there will be greater ow of resources.
Protecting the image of the sport

Another signicant responsibility for the NSGB is to project and protect the image of
the sport by ensuring ethical conduct by all involved in the sport. It would necessitate
preventive measures that would include educational programmes highlighting the
harmful effects of any illicit behaviours (e.g. gambling and doping).
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Developing new products

The NSGB, in its attempt to popularise its sport, may attempt to create new forms of its
sport (e.g. Twenty20 cricket, futsal, beach volleyball), and organise new formats of com-
petitions for age groups in both genders and across various regions of the country.
Guiding pursuit of excellence

To meet the goal of producing excellent athletes, the NSGB should focus on (1) identi-
fying athletic talent, (2) providing expert coaching and scientic support, (3) conducting
regional, national and international competitions, and (4) preparing the teams for inter-
national competitions. A signicant component of this function is the training and certi-
cation of coaches and ofcials. More importantly, the NSGB would endeavour to instil
in everyone the virtues of achieving excellence through personal determination, sacrice
and deliberate practice.
Athlete welfare
The national team athletes are among the most signicant stakeholder group, and thus
attending to their welfare is among the most important priorities for the NSGB. The
NSGB needs to institute and carry out effective programmes to counsel and guide the
athletes. The NSGB should also take efforts to mobilise and supplement the resources of
their member organisations to attend to the welfare of the athletes under their charge.
Leadership
The NSGB should avoid being content with addressing minor issues that have consensus
and setting aside major issues that are contested. The NSGB has to move beyond this
stagnant approach and take on the leadership role in dening new priorities with an
action plan, articulating clear policy platforms and taking credible positions. The NSGB
needs to show the member organisations new ways of thinking and doing things.
There is yet another perspective on the NSGB that provides an insight into what the
NSGB should be doing, i.e. the social responsibilities of the NSGB.
CORPORATE SOCIAL RESPONSIBILITY
Goal attainment as the primary social responsibility

Friedman (1970, p. 126) claimed that
there is one and only one social responsibility of a business to use its resources
and engage in activities designed to increase its prots so long it stays within the
rules of the game, which is to say, engages in open and free competition without
deception or fraud.
Carroll (1979, 1983) identied four dominant responsibilities of a business: (1) economic
responsibility, meaning that the business must make prot; (2) legal responsibility to
abide by the laws of the land; (3) ethical responsibility, where the business abides by the
norms of society that are not covered in the law; and (4) discretionary responsibility,
referring to voluntary activities to benet society. Both of these authors considered that
the primary and superseding responsibility of a business is of an economic nature, fol-
lowed by its legal responsibility. The basis for this categorical statement is that businesses
are set up to make prots and thus their primary responsibility is to make prots for the
owners.
Extending the above thinking, Chelladurai (2016) posits that the fundamental
responsibility of any organisation (business or otherwise; prot or non-prot) is to
achieve its stated goals because it is established and managed only to achieve its stated
goals. It is one thing to say that an organisations responsibility is to achieve its goals but
it is another to say that it is its social responsibility. For this assertion, an organisation
needs to be viewed from the societal perspective. An organisation is a social system
recognised and sustained by society because the attainment of stated goals by the organ-
isation is expected to serve society in specic ways (Parsons, 1960). Non-prots also
claim to serve society by providing goods and/or services to specic segments of society
that are in need of them. The existence of the NSGB is sanctioned and sustained by
society because the goals of the NSGB as stated in its mission and vision statements are
expected to benet society. In fact, the registration of the NSGB with the government is
a legal contract. Thus, the NSGBs primary social responsibility is to serve society by
attaining their stated goals within the rules and regulations set by society.
Not harming others as a social responsibility

All organisations, including non-prot organisations, can legitimise themselves only by
adhering to the laws and norms of society. Obviously, the laws, rules and norms of
society are aimed at promoting the common good. The ip side of this view is that the
function of law is to prevent one from harming others (Bastiat, 1848). Bastiat (1848)
noted that the law is to prevent injustice and not to promote justice. This notion is
upheld in modern tort law, which does not impose duties upon people to afrmatively
do the right and just thing but imposes the duty not to act unreasonably and hurt
someone (e.g. the Reasonable Person Standard Test).
The essence of the laws and rules, then, is that organisations (prot or non-prot)
shall not harm others in the process of attempting to achieve their respective goals.
Thus, the second key responsibility of all organisations should be not to harm others.
The United Nations (2010) compact for businesses has a set of prescriptions on what
they should do, and an equally strong set of proscriptions on what they should not do.
And these prescriptions zero in on not harming others. Campbell (2007) was emphatic
in asserting the notion of no harm done as the only essential feature of corporate social
responsibility when he stated: I view corporations as acting in socially responsible ways
if . . . they must not knowingly do anything that could harm their stakeholders notably,
their investors, employees, customers, suppliers, or the local community within which
they operate (p. 951). There is a recent report by NBC that articial turf used for soccer
may cause cancer (www.nbcnews.com/news/investigations/how-safe-articial-turf-your-
child-plays-n2201660). If that is true, then all sport organisations that use articial turf
are causing harm to their clients by exposing them to a cancer-causing environment. In a
40 *>V>>>
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similar manner, use of cheap and faulty equipment in any of the sports operations can
result in harm to their clients. When a national team member is selected because of who
he or she is, we are hurting another person who deserves to be on the team.
Deception and fraud

When Friedman emphasised that pursuit of prots should be without deception or fraud,
he must have thought of false advertising and claiming superior qualities for a product or a
service. The markets around the world are full of products and services that do not meet
the original billing. It is astounding that Volkswagen has been deliberately cheating the
government and its consumers for so long. These issues of deception and fraud are not
limited to business and industries. Even non-prots may engage in deception and fraud.
The current turmoil over the extensive corruption within FIFA is a result of the deception
and fraud practised by some of the senior administrators and board members. Any time an
NSGB permits or encourages the use of performance enhancing drugs or modies the birth
records of its junior players, it is engaged in deception and fraud.
Rectication as a social responsibility

It is conceivable that despite the best intentions and efforts behind an organisational
activity, it may occasionally result in harm to others (e.g. workers, clients and external
stakeholders). In these cases, an equally important social responsibility of the concerned
organisation is to immediately contain the harm, make amends for the harm done and
ensure that such mishaps will not occur again. Thus rectication becomes an equally
important social responsibility of organisations. A very good example of rectifying a
mistake occurred immediately after the 2011 Super Bowl in Dallas. The 400 ticket-
holders who could not be accommodated within the stadium were given $5,000 each
and were promised a ticket for the 2012 Super Bowl. The instant replay in sport com-
petitions is another instance of rectifying mistakes immediately.
To sum up, the three primary social responsibilities of a sport organisation should be:
1 instituting and following rational and open structures and processes for the attain-
ment of its stated goals;
2 ensuring that organisational activities in the pursuit of its goals do not harm anyone
(individuals, groups, units or organisations);
3 rectifying mistakes that harm others and making amends for the harm done.
In the nal analysis, the effectiveness of an NSGB is contingent on how well it carries
out the functions mandated by its strategic position as the apex of an inter-organisational
network and how well it discharges its social responsibilities.
SUMMARY
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Management Review, 4{]{qxx
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,} `]The organization and administration of sport`]"\->V
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sport and performance psychologynq{ i9\"v`1i*i
i>`>] * { Managing organizations for sport and physical activity: A systems perspective
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CHAPTER 4
Professional sport
Paul Turner
Chapter objectives
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Key Terms: Professional; Stakeholder; Athletes; Sport Organisations; Sport Context
INTRODUCTION
Professional sport generates signicant revenues and has a profound impact on the lives
of billions of people (Szymanski & Kuypers, 1999). Smith and Stewart (2010) highlight
that the entities within the professional sport environment seek to maximise outcomes
through winning trophies; simultaneously cooperating via shared revenue streams while
at the same time competing with rival clubs and channelling the passion from athletes
(employees) and fans (customers). Professional sport must continue to commercialise,
commodify and increase its market share in order to survive the competitive landscape,
but it must do this while retaining what is essential and attractive to its core constitu-
ency. This core is represented by highly passionate and motivated fans who see on-eld
success as being paramount to the existence of the sport. Attention on achieving a
balance between winning and on-eld success, and revenue and protability, is a crucial
decision in contributing to success in professional sport (Smith & Stewart, 2010).
This chapter identies the unique features of professional sport and some of its dimen-
sions through an emphasis on four internally oriented and four externally oriented stake-
holder contributions. The internal stakeholders are represented by athletes, clubs, leagues
and governing bodies (international federations/national governing bodies) that impact on
professional sport. The external stakeholders are represented by the fans, community,
Professional sport 45
media and corporate interests that impact on professional sport. The desire for professional
sport to retain its foundations of connecting with its core constituencies, while also ensuring
solid business practices, introduces the professional sportscape as a context identied here.
While these internal and external stakeholders are not the sole domain of the professional
sport contribution, they are sufciently representative to warrant attention. Figure 4.1 pro-
vides an overview of the stakeholder dimensions that t within the professional sportscape.
INTERNAL STAKEHOLDERS
Simplistically, professional sport can be dened as the delivery of sport for which athletes
receive payment. This payment will usually be in the form of a salary to the athlete that
reects income for work undertaken. While this simplistic approach to dening professional
sport acknowledges the job of an athlete, there is much more to the internal stakeholder
contribution than just the athlete. The conduct of sport and resulting employment of
athletes is often through the clubs or the governing bodies, which in turn depend on a
league structure being in place to xture ongoing competitions. This competition may be
presented in the form of a regular league format (such as the English Premier League
(EPL)) or a cyclical event format provided through major events organised by the governing
body (or associated entity) responsible for the sport, such as the Formula One Grand Prix
event circuit. Each internal stakeholder group is identied and examined in turn.
ATHLETES
Athletes play an integral role in the delivery of professional sport. Smith and Stewart (2010)
indicated that professional athletes are essentially business assets who are instrumental in
attracting supporters, sponsors and media exposure. These athletes have strong public
support and corporate afliations, often attain hero status and attract enormous crowds.
Fans/supporters External stakeholders Community
Athletes Internal stakeholders League
Professional sport
Governing bodies Clubs
Media Corporations
FIGURE 4.1 The professional sportscape

46 Paul Turner
At the professional level, the career of an athlete can be quite lucrative. National
Basketball Association (NBA) athletes have been reported as being the highest paid
athletes in the world, with an average player reportedly earning US$4.6 million in the
20142015 season. The advantage NBA players have is that this average reects their
smaller roster than other sports, such as the National Football League (NFL). The NBA
involves 448 athletes who share in US$2.1 billion in collective salaries, compared to the
1,648 athletes in the NFL who share a total of US$3.6 billion, an average salary of just
US$2.1 million (Gaines, 2015). This average is not shared evenly across every player in
these respective leagues, but it does highlight the potential rewards that are on offer to
those who can achieve at the elite level.
Contrary to the high-end salary opportunities, salary.com (2016) identied the actual
average salary a professional athlete earns, reporting that the median annual Professional
Athlete salary is $US32,349 as at March 2016 (salary.com, 2016). This salary result can
vary widely depending on many factors, relating to the sport undertaken and the level at
which it occurs. An example of the salary effect is that a Minor League baseballer can earn
as little as US$3,000 per season, in a job requiring seven day a week availability and exten-
sive bus travel across the country (Grossman, 2016). Equally in tennis, professional tennis
players earn prize money per round at each event they play. Excluding any personal spon-
sorship deals a player may have, while Novak Djokovic won more than US$14 million in
2014 as the sports highest earner, Lukas Zvikas featured at the bottom of the ATP earnings
list with US$36 in winnings for playing doubles (Grossman, 2016). While that nal total of
$36 may be an aberration rather than the rule, it is clear that those who fall outside the top
tier of professional athletes may not necessarily obtain lucrative nancial rewards (Gross-
man, 2016). This emphasis on the earning potential of professional athletes does not even
consider the salary divide between mens and womens professional sport.
Alongside this potentially enormous earning capacity, one of the unique features of sport
identied by Smith and Stewart (2010) is that athletes are subjected to a level of adulation
and interest that can border on excessive. Every on-eld athletic action is broken down for
review, analysed and commented upon by the media. While the on-eld analysis is an
expected part of the daily news report, an athletes life off the eld is also considered to be
open to public scrutiny. Athletes can be required to uphold public standards that would not
normally be accepted in other spheres of business or life (Smith & Stewart, 2010).
Professional athletes lives can achieve celebrity status, and every move they make is
followed and dissected by the fans, the league and the club. Every misdemeanour or
deviant action is reported on and presented for public consumption. An athlete is con-
sidered to be a role model, subjected to sanctions or interventions if they deviate from
good behaviours. Athletes are discouraged from engaging in behaviours that will upset
or affect corporate supporters or the fans. At the same time that an athlete retains
enormous earning capacity and bargaining power, the behavioural expectations placed
upon them by a range of stakeholders are signicant.
LEAGUES
Professional sport leagues provide structured competitions for teams to engage in, with
organised seasons of play, a unitary set of playing rules and the capacity for spectator
interest and league and team protability. A combination of cooperation and comp-
etition between clubs is required to ensure that the most efcient and effective outcomes
are achieved (Turner, 2012). Cooperating, while at the same time competing, presents a
relationship of reliance, alongside the need for continued on- and off-eld success for
each team. This relationship encourages teams to provide support for their opponents,
while at the same time being in competition to beat them. In most industries, organisa-
tions would not be permitted to operate in this way (Turner, 2012). Szymanski and
Kuypers (1999) highlight that this creates somewhat of a paradox for sport. Clubs must
compete in a hostile environment against numerous, aggressive rivals, while at the same
time cooperating with these rivals to the degree necessary to benet the entire group.
Sport leagues, particularly outside of those responsible for Association football, largely
resort to behaving like a cartel in order to restrict any one team from dominating the com-
petition. The reason behind this is to facilitate sufcient revenue and prots for all
members of the league or competition, while ensuring that each team retains a chance to
be the winner in any one season. The cartel-like practices employed by leagues include col-
lective agreements across: salary levels; player recruitment and drafting; admission pricing;
game scheduling; income distribution; and broadcasting arrangements (Smith & Stewart,
2010). The major sport leagues in the world generate billions of dollars annually, as spon-
sors, media and fans ock to the events, which in turn attracts huge corporate interest, and
this commodication of professional sport ensures that leagues continue to be big business
(Mason, 1999).
Professional sport leagues can be represented in a number of ways, in terms of how
they are structured and who is responsible for them. Cricket Australia (the national gov-
erning body (NGB) for the sport) conducts its Shefeld Shield competition, the EPL dis-
plays many of the features of an oligarchy with its billionaire club owners, while boxing
identies strongly with a promotor-led sport structure (Smith & Stewart, 2010). While
the governance or structure of professional sport can be classied in different ways, many
leagues display mixed versions of these structures. A sport such as motor racing displays
cartel, oligarchy and promotor-led elements throughout the whole of its set-up.
Additionally, these leagues may be formed to provide a series of events or a struc-
tured set of xtures across a season. Competitions in North American sport leagues have
essentially been formed as closed leagues, with each club representing a franchise.
Leagues in Australia adopt a similar model to the North American system, restricting
new entrants and premised on licences being applied to the respective club franchises.
Across Europe the leagues formed are open leagues with promotion and relegation,
which ensures that clubs seek to strengthen their squads in order to avoid the threat of
relegation, while the possibility of promotion encourages teams in lower divisions to do
likewise. It can be argued that promotion and relegation battles ensure greater fan
interest as more games actually matter with teams being in contention for the champion-
ship or, alternatively, relegation (Sloane, 2007).
CLUBS
The organisational model of sport was originally formed around independent clubs, within
associations and federations established around predominantly amateur, non-prot
48 Paul Turner
principles (Szymanski, 2009). While the non-prot emphasis has largely been retained for
professional sport organisations around the world, the emergence of professional sport has
connected with commercialisation, globalisation and increasing interests. Estimates now
place the worlds 50 most valuable sport teams as being worth on average US$1.75 billion
each. Real Madrid ranks number one with a valuation of US$3.26 billion, followed closely
by the Dallas Cowboys and New York Yankees with a value of $3.2 billion each. The
worth of teams within this top 50 has increased from a minimum valuation of US$856
million in 2013 to $1.15 billion in 2014. Within the top 50 there are 22 baseball (ranked
12) and basketball (ranked 10) franchises, with the NFL having 20 franchises and foot-
ball (soccer) seven. In total 62 sport franchises globally are worth at least US$1 billion
(Badenhausen, 2015).
The value of these professional clubs clearly classies them as large business entities.
While clubs can be considered signicant businesses in their own right, their ownership
and structures may differ between specic sports, leagues and countries. In Australia
most clubs operate within a licensed league format and are recognised as non-prot enti-
ties where revenues are diverted back into the sport. The Australian approach also relies
on a volunteer board of directors implementing the policy and direction supported
through strong membership from supporters. This is in contrast to the North American
model of club ownership where high prole businesses or individuals, including family
trusts, own most of the professional teams. European football has a mix of fan owner-
ship, business ownership and even clubs that are listed on the stock exchange and pub-
licly traded.
Whatever the ownership model of clubs, and notwithstanding their economic value
in a business context whereby they can be traded or sold for prot, the importance of
professional sport clubs in their communities is signicant. Fans still display an over-
whelming emotional connection and allegiance to their club that many other business
organisations would love to replicate. This explains why the level of interest by corpora-
tions and businesses to invest in and be associated with professional clubs continues to
be signicant.
GOVERNING BODIES
While it may be a league or club that inuences the direction of professional sport,
the governing body of the sport can also have a great impact. The governing body,
Australian Football League (AFL), in a sport such as AFL is wholly responsible for
managing not just the league competition, but the entirety of the sport. It creates the
policy and direction in which the sport evolves. That means that not only does it
direct funds to the clubs for the league competition, it is also responsible for the
development and overall growth of the sport. Revenue is deployed in order to ensure
the long-term benet of the sport, a decision that may not always be fully sanctioned
by the clubs (Smith & Stewart, 2010). In the case of the AFL it assigns a licence to
the clubs to be part of the competition. This enables the clubs to participate without
fear of being relegated or removed from the competition. The ongoing licence to
retain their position in a league competition is a major feature of most major leagues
outside of Association football.
The governing bodies play an important role in ensuring that the broader development
of the sport is supported and that the athletes, league or individual clubs do not overstep
their standing within the sport. A recent example of this is the rejection by the European
Professional Football Leagues (EPFL) of the establishment of a European Super League.
This Super League was proposed by a selection of the continents elite football clubs inves-
tigating breaking away from their respective top-tier divisions in order to form a new com-
petition (SportBusiness, 2016a). The EPFL response was that creation of this league would
seriously damage the long-term aspirations of smaller teams, who currently qualify for the
UEFA Champions League and Europa League competitions. Five clubs from the EPL
(Manchester United, Liverpool, Arsenal, Chelsea and Manchester City) were reported to
have held talks about forming/joining a European Super League. This league would have
been organised independently, and not by the governing bodies of football, UEFA or FIFA.
The EPFLs view was that Europes elite clubs should seek to guarantee better redistribution
of wealth in order to achieve a more level playing eld rather than destroying the
dreams and goals of numerous clubs to compete at the highest level in Europe (Sport-
Business, 2016a).
In a further case, the International (Field) Hockey Federation (FIH) recently
announced a major development in hockey through its 10-year hockey revolution initi-
ative. This initiative was formed to raise the global prole of, and increase participation
in, the sport. From 2019, it was proposed that all national teams would play one another
home and away each year, complementing the 4-year Olympic Games and Hockey
World Cup cycles. The FIH would establish specic criteria around the teams to parti-
cipate in order to ensure quality, alongside three main objectives: to generate a massive
change in TV and media coverage for hockey; create big, bold, packed and loud events
and; make a step change to increase future revenues (SportBusiness, 2016b). The gov-
erning bodies can play an integral role in supporting the greater good of the sport, while
ensuring that all stakeholders in the sport have a chance to benet.
EXTERNAL STAKEHOLDERS
While the internal stakeholders focused on the athlete and the organisations that administer
professional sport, the external stakeholders can be represented by the parties that are inter-
ested or affected by professional sport. These parties represent the spectators/fans who
display an intensity and passion for their sport that is often seen as extending well beyond
the boundaries of normal commercial interest. The fans represent specic communities that
are important to the ongoing commitment to sport, and as a result the corporate and media
interest has risen to a level some consider obscene or even beyond sustainability.
The global sport market was estimated to be worth in excess of US$145 billion in
2014. These gures are derived only from the revenue obtained through gate revenues
($43 billion), media rights ($37 billion), sponsorship ($45 billion) and merchandise ($19
billion) and represent revenue streams for professional sport clubs only. It is envisaged
that these revenues will continue to rise into the future, with the major contributor to
growth being derived through enhanced media rights deals (PwC, 2011).
Advances in broadcasting and technology present opportunities for fans and corpora-
tions to view and engage with the professional sport product. The introduction of social
50 Paul Turner
media is providing opportunities to fans to engage with their sport with greater intensity
of experience, enabling sponsors to associate with and contribute to the experience,
while ensuring sophisticated data mining and resulting marketing opportunities allow
increasing levels of intelligence and insight into target markets. All sporting organisations
attempt to balance their increasing commercial demands on their sport with the require-
ment to maintain the integrity and unpredictability of making sporting competitions
exciting and appealing to their fans.
SPECTATORS/FANS
A core feature of professional sport is its innate feature of engaging fans and delivering
intensely emotional and loyal attachments (Mason, 1999). This is underpinned by a
powerful sense of identication, with strong belonging and emotional attachment. This
strength of loyalty and identication ensures that one form of sporting product cannot be
easily replaced by any other. Fans will not readily substitute their attachment to their team
or sport, even if the team underperforms, and even when this underperformance extends
over multiple years. This strong and passionate attachment, loyalty, vicarious identication
and blind optimism are crucial differentiators for sport (Smith & Stewart, 2010).
Spectators attend games, view sport on television and through other media devices,
and engage and interact via social media. New media opportunities are making this inter-
action occur with greater immediacy and with less emphasis on location. A spectator can
access a live game via a mobile device anywhere around the globe, accessing the full
game, highlights, live scores and results or statistics at the touch of a button. This means
that spectators today are more informed and more discerning than at any other time in
history. The requirement for this accessibility to be provided in a seamless and efcient
way, catering for the needs and demands of the fan, is essential. No longer will substand-
ard service, run-down facilities and poor communication access be tolerated. Professional
sport has identied the need to create stadiums that cater for the needs of all fans, web-
sites that provide suitable connectivity and access to information and broadcasts that
cover all angles incorporating multiple replays. To ensure this unreserved passionate
loyalty and following is continued, the professional sport delivery must continue to
provide outcomes that meet the needs of the fans.
Whatever the management approach, however, people still display a strong afliation
with the sport, club and athlete. While the sport presents highly skilled athletes individ-
ually or in teams, all with relatively equal attributes and capable of producing high
quality outcomes, the fan interest in sport continues unabated. Mason (1999) identied
that sports most notable distinction is its relationship with its consumers, which drives
sport into being a vehicle for the promotion of corporate interests.
CORPORATIONS
Professional sport provides an attractive live product experience that is of great appeal
not only to fans at the ground, but also for extensive advertising and broadcast interests.
The interest of spectators/fans in sport is instrumental in driving the success of
professional sport. The overwhelming passion and involvement of the fans for sport
teams brings enormous commercial and media interest. This corporate interest intro-
duces revenue sources through association with the sport through sponsorships and
broadcasting interests. Sponsorships generate enormous interest and provide signicant
revenue to professional sport. Equally, the opportunity for branding and consumer con-
nection can be enormous for business.
Recent discussion has emerged over the ethical association between sponsors and
professional sport. Manchester United made very clear statements about separation of
their increasing commercial demands from sponsorship and the teams performance
when they were renewing their sponsorship portfolio in 2013. They emphatically
declared that their hunt for silverware would not be affected by increasing commercial
demands. A record 357 million shirt sponsorship deal with Chevrolet that took effect
from the start of the 20142015 season, coupled with a 5-year contract with Russian
airline Aeroot that generated in excess of 25 million, were recent additions to the
business interests of the club. This did not include the major shirt manufacturing deal
with Nike that was still under discussion at that time, although the club ultimately chose
Adidas as its shirt sponsor. These arrangements left some people wondering about
the demands these agreements place on the staff, including the manager who stated that
he was aware of the additional demands of dealing with sponsors. Group managing
director Richard Arnold clearly advised that sponsors would not impact performances on
the pitch, stating that there is nothing like sport. In sport there is nothing like football
and in football there is nothing like Manchester United in terms of delivering connection
and exposure (Stone, 2013).
COMMUNITY
While the league product in professional sport developed around fan interests, and pre-
dominantly for those who traditionally attended games, the community attention has
evolved considerably. The attention of professional sport is still on the fan, but this goes
beyond the traditional localised focus of the past. Years ago, a professional club prim-
arily represented the local region of which it was a part. Many clubs emerged to
represent one city or town, or in the case of a sport like the AFL, even one suburban
region within a particular city.
The localised version of professional sport where a singular community is represented is
now very much a thing of the past. While sport clubs and leagues still retain a strong impact
on their traditional markets, the need to globalise or internationalise within professional
sport is occurring at a rapid rate. This has seen the expansion of leagues and major events
into markets in all corners of the world, developing fan, sponsor and media interests in new
markets. Sport leagues that were once the domain of suburbs, towns or regions within a
community are now less attached to a specic place. Major leagues such as the EPL and
NBA are now accessible and attractive to a global supporter network. A club such as Man-
chester United boasts a global following of 659 million fans, far exceeding the red side of
the city of Manchester that represents just 0.1% of the supporter base (Prior, 2013). While
this gure, presented through market research, was questioned in some circles, it still points
to the global support of the club being quite enormous.
52 Paul Turner
Another recent example of globalisation saw a Memorandum of Understanding

(MoU) signed between the AFL and the City of Shanghai. AFL club Port Adelaide and
its new partner, property developer Shanghai Cred Real Estate (SCRE), agreed that an
AFL match would be held in the city in the near future (SportBusiness, 2016c). While
there are many supporters of these and other examples of the globalisation of profes-
sional sport, there are also many detractors. Fans have expressed concern at their club
being rostered to play competition games in alternative markets, thereby denying the
local community a home xture. Leagues and clubs are seeking to expand their reach
and this can affect the traditional communities and bases they have served. Expansion
must not come at the expense of forgetting the powerful impact the professional sport
brand has on members of the local community. Given that these sport organisations are
fan based, their success continues to rely on building strong and engaged communities,
wherever they may be located.
One way that professional sport organisations are attempting to stay connected to
their local communities is through the implementation of corporate social responsib-
ility (CSR) programmes. These programmes seek to support and promote loyalty and
connections with youth, fans, businesses, non-prots, local governments and other key
stakeholders by means beyond what would ordinarily constitute their core business
(Kihl, Babiak & Tainsky, 2014). The National Rugby League (NRL), for example,
integrates with their core community in three ways beyond simply providing a rugby
league competition. The NRL states that its purpose for serving its communities is to
lead and inspire people from all walks of life to be the best they can. They seek to do
this by providing pathways and opportunities for people to live positive, respectful
and healthy lives. Their programmes focus on NRL Respect, which seeks to develop
self-respect and social responsibility, encouraging inclusion and speaking out against
racism, bullying, violence and discrimination. Other foci are on NRL Learn, which
aims to promote the importance of study, education and hard work, and NRL
Health, which encompasses a physical and mental health and well-being message
(NRL, 2015).
There are many other aspects of community that professional sport impacts, such as
through gambling, economic, social and environmental impacts, club and team reloca-
tions and ownership, and even event and facility management issues. The community
effect is a very powerful and signicant area that sport must be mindful of and attend to
in order to ensure that it does not ignore these important constituent groups. Expansion,
globalisation and relocation are ne to ensure creation of new markets and ultimately
revenues, but must occur with existing community consideration.
MEDIA
Professional sport is now one of the most expensive media products, representing a
market that exceeds US$37 billion for professional sport clubs alone. This gure does
not take into account expenditure on major events such as the US$7.5 billion that
American network NBC paid the International Olympic Committee (IOC) for Olympic
rights until 2032 (Sherwood, 2016). While criticised for being enormously overvalued,
NBC referred to its tradition (being the US broadcaster of the Olympic Games since
1964), and its belief that the Olympics represent more than just money and that it
supports other programming and attracts signicant viewer interest, as strong reasoning.
Commentary around this decision to lock in a media contract until 2032 was met with
some derision and incredulity by other media providers. Rivals state that NBC does not
know what the media outlook will be over that time, with the potential for radical shifts
in technology and habits over an almost 20-year time frame. Questions over whether
people will even be watching sport, aside from how they might consume it, have been
raised. Added to this, the network has no idea of where the Games will be held, or even
the time zone in which they will be held, and this represents an extreme gamble by an
organisation (Sherwood, 2016).
The example of the Olympic Games highlights a key aspect relating to media and
professional sport. While the nancial contribution from traditional media sources has
continued to grow, many more opportunities are being brought about through the
changes occurring with respect to the introduction of the over the top (OTT) content
sector. Media players such as Google, Netix, YouTube and Amazon can operate with
lower costs and far wider distribution via the Internet than traditional terrestrial broad-
casters. One result of this is that these companies are increasingly seeking to acquire the
rights to distribute professional sport. While the exact model between the sport and
media organisations is still evolving, there is a clear appetite by these media companies
to distribute sport across their platforms. The model of traditional rights payments to
sport might now extend towards other possibilities, such as a revenue sharing approach,
or a merger/acquisition of clubs and leagues by the media organisation. Whatever the
approach, the media interest in sport is continuing to grow, and the end result is that
revenue associated with media rights is growing with it.
While the uncertainty surrounding the broadcast of professional sport in emerging
new media markets exists, other factors associated with media can impact on com-
munities. Barnes (2016) referred to 2016 as the year that sport dies. He believes that as
long as sport can retain the public interest then it will continue to retain its appeal, but
suggests there are signs that people are losing faith in the innocence and meaning of
sport and this is in large part being driven by the media coverage and level of invest-
ment. Barnes cited instances of doping, betting indiscretions, improper behaviour of
athletes and, more recently, improper management practices, indicating that these neg-
ative aspects may be damaging the trust the public has in their sport. Sponsors have
withdrawn support, such as Adidas recently announcing its withdrawal, four years early,
from the IAAF as a result of doping scandals surrounding the sport. This could amount
to tens of millions of dollars lost by the sport. The Australian Open tennis tournament in
January 2016 was a highlight not just for tennis, but for players being implicated in
throwing matches for payments. These and other issues are causing signicant damage to
the sports affected.
It is not only the poor behaviour or governance and policies being brought into
question. The inuence of external parties who invest in sport is becoming legendary.
Chelsea has an owner who, on a whim, will change the manager and players because
of poor performance. Adidas now sponsors the kit of Manchester United in a deal
worth 75 million a year. The Adidas CEO reportedly dropped a careful hint that
Manchester Uniteds current style of play did not meet their approval, stating we are
satised but the actual way of playing is not exactly what we want it to be. This raises
54 Paul Turner
concerns over the style vs substance vs commercial value (Stone, 2013). This level of
interference begs the question of whether even tactics are an aspect of commerce and
the media. It also raises questions of whether professional sport is entertainment or
something quite different.
Case study: making it big in the National Football

League (NFL)
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56 Paul Turner
REVIEW QUESTIONS
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13]q
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self? The Age
CHAPTER 5
The global sport

environment
Eric MacIntosh and John Harris
Chapter objectives
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multi and single sport event opportunities;
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international initiatives;
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nence in a particular market;
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sional sport.
Key Terms: Participation; Consumption; Professional Leagues; Social Media;

Internationalisation
AN INTRODUCTION TO THE GLOBAL SPORT

ENVIRONMENT
Sport touches us all regardless of where we live in the world. Whether it is friendly banter
with a colleague about the game last night (e.g. the score, a certain play, an important goal),
a discussion with a parent of the local sport team (e.g. volunteer roles, upcoming fundrais-
ers), planning a social engagement around a broadcast of the next sport event (e.g. Rugby
World Cup, March Madness), or simply organising your next activity (e.g. scheduling your
race, booking the course), the power of sport is omnipresent on a global scale. It is no sur-
prise that people love to discuss, consume and participate in sport all over the world. Yet,
while we share some similarities in these respects, the sporting opportunities and landscape
is vastly different from country to country. Take, for example, Canada, where ice hockey
and (perhaps surprisingly) lacrosse are the national sports. These sports are an integral part
of the national identity of Canada. Internationally, Canada is considered to be an ice
hockey-mad country, but is lacrosse also seen as an important sport?
The global sport environment 59
In reality both ice hockey (or simply hockey to Canadians) and lacrosse have two very
different participant and consumer markets in Canada. Additionally, they are but two of
myriad sports that Canadians discuss, consume and participate in every day. Did you
know that soccer is actually the most played sport by Canadian children from 5 to 14
years old (where approximately 42% participate)? In Canada, participation rates for
swimming (24%) in this same age category are actually higher than hockey (22%). Other
popular participation sports for Canadian youth include basketball (16%), baseball
(14%), volleyball (8%) and gymnastics (8%) (Canadian Heritage, 2013). Baseball and
basketball also hold a strong consumer interest in Canada with professional leagues in
both sports. However, this is not a chapter about what sport is like in Canada. This
introduction highlights the fact that the sport system in a country (regardless of where in
the world one is discussing) is shaped by a complex history of development. Specic to
Canada, the cultural inuences of First Nations people and French and English immig-
rants have shaped the sport system. Hence, to truly understand a sport within any
country is to appreciate and acknowledge that the historical, cultural, political and socio-
economic conditions all play a role in shaping the sporting environment.
In Wales, rugby union is the national sport and occupies an important position in the
wider culture. It is often described as the national sport and is positioned as something of a
classless game. Yet the sport came from an English public (fee paying) school where it
was nurtured by the social elite. It developed in Wales during a period of signicant inward
migration as the country became an industrial hub of the world. Many of these immigrants
were from England, the big neighbour next door and the country that Wales still most
wants to beat on the rugby eld. Wales was one of the foundation nations of rugbys inter-
national federation now known as World Rugby, and is part of the hegemonic core of the
international game (see Harris, 2010). For a nation of three million people, it has con-
tributed a great deal to the sport in an international perspective.
In addition to the many contextual differences and realities that shape sport within
any particular country, one must also appreciate that sport systems across the globe are
continuously changing from year to year. Factors such as governmental change, and the
national and international monies that ow in and out of sport organisations through
broadcasting rights and event hosting deals, are just two examples to note.
From a global sport environment viewpoint, then, there are myriad factors inuencing
the sport system of a nation. It is apparent that keeping up with the trends in sport in
one country alone is difcult enough, so tracking them on a global scale is a monumental
and perhaps impossible task. A cursory review of how professional sport is handled from
Europe to North America, for instance, reveals many differences (see Markovits & Rens-
mann, 2010). Furthermore, what is culturally relevant is vastly different from one conti-
nent or region to the next. Consequently, it should come as no surprise that there are
major differences between what is discussed, participated in or consumed from one place
to the next. Furthermore, many distinctions in how sport is managed and marketed can
be seen based solely on the size of the population. In China the sport fan market is in
excess of 281 million fans, whereas the United Arab Emirates has a small market of just
over three million fans (Know the Fan Report, 2014).
Yet, despite the various different cultures, climates, geographies and languages that
exist globally, there are certain sports and sporting events that capture the imagination
of the masses across the world. Mega events like the Summer Olympic Games and the
60 Eric MacIntosh and John Harris
FIFA World Cup (Men) receive tremendous media coverage and sponsorship monies.
Success on the international sporting stage is considered very important and the per-
formances of a nation in the Olympic Games are often viewed as reecting its position
in the wider world order. While parts of this chapter will discuss these two biggest sport-
ing events, the majority of it will focus on the increased internationalisation of sport
leagues and consider some of the key issues shaping contemporary sport. From a Global
Sport Environment perspective, there are many sports (e.g. cricket, baseball, basketball,
rugby) that are discussed, participated in and consumed passionately from one country
to the next. In addition, there are varieties of these sports (e.g. Twenty20 cricket, Rugby
Sevens) and a plethora of competitions within the sporting calendar that add to the
enormous size of the international sport marketplace.
Consequently, sport is an enormous worldwide market and, as we will see later on in
this chapter, the sport landscape is constantly changing and increasingly internationalis-
ing. Many of the more omnipresent professional leagues are attempting to capitalise on
the international appetite for their sport, a trend that will seemingly grow. All told, the
world of sport is abundant and many opportunities are available to host events, act as a
tourist, participate or even watch your favourite team on mobile technology.
SPORTING OPPORTUNITIES
The popularity of a particular sport, from both a participant and consumer point of
view, largely depends on the region of the world one is discussing. For example, football
is a very popular team based sport in many regions such as Europe, Africa, Asia and
South America (see Giulianotti & Robertson, 2009). However, this does not mean that
other team sports like cricket, netball, rugby union or (eld) hockey do not have strong
and passionate followings in some of the same countries where football is popular. While
noting that one sport is the most popular is interesting and headline catching, it can also
sometimes be misleading as representative of what is actually happening within the
wider sport system of a particular nation.
For instance, some of the more popular team based sports leagues in North America,
such as in ice hockey (NHL) or American football (NFL), have recently experienced
considerable media attention related to the long-term consequences of concussions due
to the contact that occurs in these sports. As a result of these contemporary and ongoing
discussions, participation in these sports at the grassroots level may suffer. Consider that
for parents, head injury and safety issues may lead them to question their childs parti-
cipation despite the cultural popularity of the sport. Concomitantly, both (ice) hockey
and American football are nancially draining commitments and time consuming for
parents. Consequently, we see that in this case, health, nancial and logistical issues may
negatively inuence sport participation despite a very high consumer based interest.
Thus, sport systems change due in part to new knowledge being created, and the new
trends and opportunities that are available. In the case of these two team based sports in
particular, it begs the question of how the knowledge and awareness around concussion
and injuries will reshape the sport participation landscape in North America and even
other parts of the world. While the sport may be different, similar concerns around head
injuries also dominate discussions of safety in rugby union and World Rugby is carefully
monitoring this issue. There has recently been a call in the UK and Ireland to ban tack-
ling in school rugby, with over 70 academics and doctors signing an open letter to gov-
ernment ministers (BBC, 2016). This attracted considerable media attention and
continues to provoke much discussion.
Of course, there are many other ways in which sport consumption and participa-
tion patterns can change. When new opportunities become available to participate
and consume within the sport system (e.g. hosting a major single or multisport event,
changes to technology), we increasingly see a focus on the supposed legacy of hosting
such events, particularly in relation to the promise of increased physical activity rates
among host nation residents. In recent years, there has been a proliferation of both
single and multisport event hosting opportunities at the youth, adult and senior level
nationally and internationally, and we continue to see sport become more global in
this respect. Consider the hosting opportunities recently for the Summer Olympic
Games (Beijing 2008; Rio 2016), FIFA World Cup (South Africa 2010; Brazil 2014),
Commonwealth Games (Delhi 2010) and a multitude of world championships hosted
in what are often described as developing nations. We can clearly see the soft power
of sport here as a means of public diplomacy and reimaging a nation on the inter-
national stage. These events can create new opportunities and challenges for countries
to build and develop their infrastructure for their athletic talent while showcasing cul-
tural richness and contributing to legacy (Getz, 2005; Parent, Rouillard & Leopkey,
2011). Furthermore, when it comes to hosting an event, there is often an increased
pressure on host nations to perform well. We have seen this in our respective nations
where the 2010 Winter Olympic Games in Vancouver and the 2014 Commonwealth
Games in Glasgow both resulted in record medal tallies for the home teams. The
expectation levels and pressure to perform for the host nation can be high. When a
national team fails to meet these expectations, as was the case with the England mens
team at the 2015 Rugby World Cup, there is an inevitable media backlash and often a
change to the coaching team.
These large property rights holders now also organise sport competitions for younger
people (e.g. Youth Olympic Games and Commonwealth Youth Games), and one can
understand the burgeoning sport event opportunities and developing international land-
scape. While the case could be made that the property rights holders are simply trying to
grow their market share and develop their brand through the younger athletic talent
(MacIntosh, in press), the advent of these games has undoubtedly created new oppor-
tunities for smaller sport/host cities (in terms of population) to develop their sport
system, while also providing an enhanced international environment for other athletes to
compete in. For instance, a cursory review of the Commonwealth Youth Games shows
that the hosts have a relatively small population when compared with host cities of the
Commonwealth Games (see MacIntosh, in press).
Like the youth based multisport event offerings, there are also many single sport
event opportunities to compete (e.g. FIFA Youth World Cup, International Ice Hockey
Federation World Juniors and Junior Wimbledon). Indeed, the increasing number of
youth competitions and the global pressure to succeed have resulted in a redesign of
many national talent development systems (Barreiros, Cote & Fonseca, 2014). Many
sport systems now have an increased focus on the development pathways of younger
people and hold their own national competitions (e.g. the Canada Games). Sport events
like these are said to build up the sporting pedigree of young athletes and are intended
to help ready the athlete for regional and international events. Yet, they are not without
signicant stressors to younger athletes (Parent, Kristianson & MacIntosh, 2014).
The availability of regional competitions for single and team based sport events are
abundant. Today, there are many sport competitions available to athletes. For
example, regional competitions such as the Asian Games, Oceania Games, Islamic
Games, Island Games, Francophone Games, South American Games, European
Maccabi Games, Pan American Games, to name but a few, are now providing ample
sporting opportunities for athletes and many of these events hold considerable spon-
sorship and broadcasting rights for the property rights holders. Indeed, there seems to
be a burgeoning area of sport event opportunities. Consider that the sporting calendar
also offers other events such as the World University Games, World Military Games,
World Police and Fire Games, the Gay Games, Special Olympics and the Invictus
Games. Indeed, the world of sport goes well beyond the big two (Olympic Games
and FIFA World Cup) for the amateur and professional athlete. When it comes to the
professional realm of sport, there are circuits in a number of popular sports, including
the Rugby World Cup, Cricket World Cup, the World Baseball Classic, the World
Cup of Hockey and the Ryder Cup. Professional golf and tennis have their own
lucrative circuits for both men and women that have a signicant place on the sport-
ing calendar. By now, it should be very clear that the global sport environment is
incredibly broad.
The amount of sport events is truly staggering. The tourism opportunities around
many of these events have produced a desire among governments to bid for the rights to
host many of them. However, some places in the world are synonymous with specic
events. There also exists a rich breeding ground of business activity in specic cities for
certain events, including the likes of the Tour de France, Calgary Stampede, Boston Mar-
athon and the Running of the Bulls that are now central to wider tourism promotion in
these locales. Annual events such as these can be important contributors to the local
economy, where key stakeholders attempt to capitalise on the name brand of the event
and demonstrate city prowess in an international context.
In the next section, we turn to some case study examples of professional North American
sport in an attempt to illuminate some of the strategies employed in league based activ-
ities to grow the market share within the global sporting environment.
EXPANDING SPORT INTERNATIONALLY: A

NORTH AMERICAN STRATEGIC PERSPECTIVE
As we have seen, there is no shortage of opportunity in the world of sport to participate

in and consume both single and multisport events. Not surprisingly, the prospects of
growing the popularity of a sport are among the strategies of the biggest North American
professional sport leagues (NBA, NHL, NFL and MLB). With the travel and technology
now available, sport leagues are investing in expanding their product offerings. Indeed, it
has never been easier for many people to connect with their favourite sport league, team
or player. From time to time, a fan who resides a considerable distance from the national
market of a particular league is able to attend a pre-season or regular season game or
watch their favourite player compete. Thus, for many leagues, it is good business prac-
tice to provide the non-traditional and non-local fans with consumption opportunities in
efforts to grow the brand internationally.
The NFL has had a mixed bag of results growing the game outside the United States.
For example, the NFL created the World League of American Football (1991), which
later became NFL Europe (rebranded in 1998), but this initiative ultimately failed. In
more recent years, embarking upon a different strategy, the NFL has had some success at
establishing a relationship with international fans in London, through staging games at
Wembley Stadium. This began with the inaugural NFL International Series in 2007 with
a match between the Miami Dolphins and the New York Giants. Over the past 10 years,
the NFL has strategically invested in the International Series. For six consecutive seasons
(20072012), the NFL had one regular season game outside the United States. The
format was expanded at the beginning of the 2013 season to have two games held inter-
nationally at Wembley, and in 2014 and 2015 three games were held outside the United
States. In 2016, the NFL will see two games at Wembley again (a commitment to play
at least two games until 2020), and also one at Twickenham Stadium (home to the
England rugby union team). While the rosters of NFL teams are still almost entirely
composed of players from the United States, the league continues to remain committed
to growing the sport internationally and tickets for the matches in London are very
popular. Indeed, the announcement that the NFL partnered with the Rugby Football
Union (RFU) to play a minimum of three regular season games at Twickenham over a
3-year period is a sign for an emergent relationship that could spawn new marketing
streams for the two sports. The deal, which is the rst of its kind for the RFU, starts in
October 2016 with the matchup for the rst International Series game at Twickenham
(NFL, 2016). Considering that an NFL season is composed of 16 regular season games,
and games are spread out usually over seven days, it is possible (and perhaps feasible) to
one day see a team in the league have a home stadium in England. This is a topic that
has been discussed in media articles on both sides of the Atlantic (e.g. Daily Mail, 2014;
USA Today, 2014).
Of the four bigger professional league based sports in North America, arguably the
one that has been the most successful with internationalising their product is the NBA.
The NBA has made a concerted effort to have pre-season and regular season games held
in various international markets for some time. In 2016, as part of their NBA Global
Games campaign, a regular season game between Orlando Magic and Toronto Raptors
took place in the O2 Arena in London. In 2015 games were also played in Shanghai (LA
Clippers vs Charlotte Hornets), due in part to the prominence and popularity of basket-
ball in the Chinese market and, of course, the sheer size of that market.
Indeed, the NBA has made profound efforts to grow the sport internationally in a
variety of countries and has taken strides to strategically create a dedicated website in
different languages to cater to the international appeal of the league. Perhaps not coinci-
dentally, and very much unlike the NFL, the composition of NBA rosters comprises
many different nationalities. In recent years, the recruitment of Division 1 college
basketball players from countries in (for example) Africa, South America and Europe
has increased (Fay, Velez & Thibault, 2014). This reects the growing popularity of
basketball on a global scale (see Markovits & Rensmann, 2010) and has helped con-
tribute to the international talent on NBA rosters.
To illustrate how international rosters have become in the NBA, consider the
20152016 Toronto Raptors as an example of a melting pot of players where almost half
of the roster comprises athletes from outside the United States. The roster consisted of
athletes from Lithuania, Argentina, Canada, Democratic Republic of Congo and Brazil.
The team has utilised the marketing campaign titled We the North to place itself as the
only team in the NBA outside the United States, Canadas team. It is also interesting that,
as a marketing campaign, the team has utilised Cantonese correspondence within the local
Toronto market to build the client base within the Toronto Chinese community. For
Maple Leaf Sport and Entertainment (which owns the team), it is a savvy and strategic
decision given the immense scope of the Chinese market in Toronto. However, it is not
only the Toronto Raptors that have beneted from the global appeal of basketball. Other
rosters around the NBA are also testament to the popularity and growth of the sport across
the globe. While some of this could be attributed to the NBAs efforts to grow the game,
basketball has long had a wide population and consumer based appeal (with other profes-
sional leagues around the world) and through the FIBA development system.
MLB has included athletes from (for example) Japan, the Dominican Republic and
South Korea for some years. For its part, MLB has also made concerted efforts to
strengthen its brand internationally and provide multi-language information on its
website for fans in these areas to access. There has been a swath of pitching talent
coming from Japan (e.g. Daisuke Matsuzaka, Yu Darvis, Mashiro Tanaka, Junichi
Tazawa and Koji Uehara). Players from the Dominican Republic have had a long and
rather storied history of success in MLB (e.g. Pedro Martinez, David Ortiz, Vladimir
Guerrero, Albert Pujols). In more recent times, athletes from South Korea have made
their way onto MLB rosters (Shin-soo Choo, Chan-ho Park, Byung-hyun Kim, Jung-ho
Kang, Byung-ho Park). While MLB has had great success at internationalising its sport, it
has had help from the various franchises that regularly host academies in the Dominican
Republic, Venezuela and other countries as a way to promote the game and identify tal-
ented players (Bravo, Orejan, Velez & de Damico, 2012; Kurlansky, 2010). The league
has invested heavily in growing its position in the international market. One of the more
prominent strategies to grow the game of baseball was the launch of the World Baseball
Classic in 2006. This was an initiative developed specically to develop the prole and
position of MLB outside North America (Klein, 2006) and has been met with much
enthusiasm in many countries around the world.
The NHL has also strategically invested in growing the game internationally. As far
back as 1938, exhibition games were played in Europe between the Montreal Canadians
and Detroit Red Wings (NHL, 2015). Not surprisingly, the NHL has invested in the
colder climate areas to grow the game. The sport has tremendous appeal in Russia, and
one of the most hotly contested international ice hockey events ever was the inter-
national series between Canada and the Soviet Union (known in Canada as the 1972
Summit Series). In this ercely contested series, which Canada eventually won 431,
the creation of a true global rivalry for the sports domination emerged. Although it took
several years to see the migration of Soviet talent into the NHL due to the wider polit-
ical climate, today, Russian hockey players like Alex Ovechkin, Pavol Datsyuk and
Evgeni Malkin are NHL stars with legions of fans.
For the NHL, having various international showcase events, like the Summit Series
and other prominent tournaments like the Winter Olympics, IIHF World Hockey
Championship and IIHF World Juniors, has seen the game grow in popularity outside
North America (in countries such as Finland, Sweden, the Czech Republic and Russia
especially). These countries continuously produce top level international players and
have many athletes who perform well in the various professional sport leagues around
the world in hockey (Swiss, Swedish, German and KHL). One could easily make the
case that for the NHL, having its players regularly participate in the Winter Olympic
schedule (since Salt Lake City in 2002) has helped to grow the game internationally.
During the 2010 Winter Olympics in Vancouver, 141 NHL players represented their
countries (NHL, 2015). While the international strategy is abundantly clear for the
NHL, the league has also embarked on various strategies to showcase its international
talent, including in 1998 when the NHL changed the All-Star Game format to become
an international competition (North America vs World All Stars). Today, the NHL regu-
larly plays games in different parts of Europe.
Clearly, we see that internationalising the sport leagues in North America is both a
strategy and a priority. However, there are also numerous examples of other sport teams
and leagues from around the world attempting to develop their presence in North
America and/or other markets. Many English Premier League (EPL) football teams have
long favoured the United States as a site for pre-season tours and EPL matches are now
screened live in the United States and Canada during the course of the season. In 2016,
English rugby union sides London Irish and Saracens played against each other in a
regular season xture staged at the Red Bull Arena in New Jersey. We are likely to see
other teams from England follow this path in future years. Rugby continues to develop
markedly in the United States, with the launch of the rst professional domestic league
in 2016, and the inclusion of Rugby Sevens in the 2016 Olympic Games offering new
opportunities and momentum to develop the sport that was the forerunner to American
football. Indeed, the internationalisation of teams, leagues and star players will continue
in the years to come.
PROFESSIONAL SPORT LEAGUE STRUCTURES:

SAMENESS AND DIFFERENCE
Professional sport leagues around the world have both similarities and differences in how
they are structured. One of the major differences between how sport leagues are struc-
tured globally is whether or not the league is either open (through the promotion and
relegation system) or closed (the same teams in the league year after year unless there is
expansion or a franchise folding). The North American professional sport leagues are
closed systems, with the same teams competing each year in the same league for the
same prize. In Europe, the majority of the leagues are open and the relegation system is
implemented where bottom teams move down a league and the top teams from the
league below move up. In 2016, the EPL produced a remarkable story when Leicester
City became league champions despite narrowly avoiding relegation to the league below
one year earlier. This was a true underdog story and has attracted considerable inter-
national media attention. The EPL, which was already arguably the most popular sport
league in the world, has received extended global coverage because of this. As a reec-
tion of the global football business, the EPL title was won under the guidance of an
Italian coach (who had previously coached the Greek national team), with signicant
nancial investment from the Thai owners, and with players from (for example) Algeria,
Argentina, Denmark, Germany, Ghana and Japan alongside their English counterparts,
once again showing the true international athlete talent collective on one team.
Another part of the North American system that differs to some degree from the
European system is the idea of revenue sharing among teams in the league. Dietl, Fort
and Lang (2012) noted that in the German Bundesliga, television rights are marketed by
the league and distributed according to each clubs position at the end of the season,
where top teams are rewarded more nancially for performance. Within the Champions
League, television revenues are also marketed collectively by UEFA and distributed
according to a formula, which includes the clubs success as well as the size of the tele-
vision market in the different countries (Dietl et al., 2012). Those that stay at the top of
domestic leagues gain more revenue, causing the possibility of less parity. Given that a
weaker or lower-placed team receives a smaller portion of the nancial pie, the case
could be made that competitive balance diminishes. In a regional context, we also see
the biggest and richest clubs dominating European football where the nancial rewards
for qualication to the Champions League are now getting bigger and bigger as the pop-
ularity of the sport continues across major television markets. Meanwhile, in North
American professional leagues, revenue sharing, or rather the splitting of operating
prots, is more common, particularly in NFL, NHL and NBA (and to a modest degree in
MLB). As Wenz (2012) noted, while each of these leagues engages in a form of revenue
sharing that differs in formula, all face the same issue in struggling to achieve com-
petitive balance as a result of the ideal, and the highest level of competitive balance that
can exist occurs when all teams are equal, and each team has the same probability of
winning each contest and of winning league championships (p. 479). However, this
ideal is not consistent with each teams individual prot maximisation goal and so
perfect competitive balance in a league is near impossible to achieve, particularly when
you consider the size of the local market (Wenz, 2012). Whether it is gate revenue
sharing, collective sales of media rights or salary caps, each league system operates some-
what differently (Peeters, 2015). In conjunction with the idea of league revenue sharing
come the negotiations that take place during each collective bargaining period between
the league and its players. In the case of the NHL, they have their own special commit-
tee to oversee and adjust league revenue sharing each year with a sophisticated formula
to do so. Peeters (2015) noted that gate revenue sharing, for example, while widely used
in the US major leagues, is largely absent in European soccer.
Another signicant difference between the European and North American model of
sport is that teams in Europe may compete simultaneously in multiple competitions (e.g.
in football, teams can compete in league championships, cup competitions and regional
events). As Humphreys and Watanabe (2012) noted, the EPL sees teams compete in
league matches for the championship, which has no playoff format and is determined
only by the outcome of the regular season league standings. In addition, the teams that
compete in the league also compete in other domestic knockout-style tournaments
(FA Cup and League Cup), and the teams that nish the highest in the league have the
chance to compete within intercontinental competitions like the UEFA Champions
League or Europa League. The leading players from these clubs may also represent their
national teams in international competitions during the regular season.
There are other differences of note, such as the sponsorship success of logos on team
shirts within the EPL. However, some of the North American sport leagues (like
NASCAR and Major League Soccer) have also had similar success in this regard. Most
recently, the Philadelphia 76ers of the NBA signed an agreement with StubHub to carry
their logo (Canadian Press, 2016). This emergence of sponsored logos on team shirts is
likely to be another future revenue stream for the NBA and other professional league
teams in North America to adopt.
SOCIAL MEDIA: CHANGING THE SPORT

MANAGEMENT GAME
Today, the expansion of the World Wide Web and various social media has resulted in
the emergence of the connected fan, where fans can connect with other like-minded
individuals (Hull & Lewis, 2014) to both consume and produce content available for
others. Boyle (2011) noted that there are some key factors that are shaping the relation-
ship between media and sport organisations, including the marketisation of the media
itself, the evolution of the digital landscape and the issues within globalisation including
but not limited to the economy, identity and cultural practice/interest in sport. This very
rapid development within the information technology domain, and in particular the
various social media platforms, is changing sport and sport management.
People now have the capability to access all types of information (e.g. player statistics,
sport schedules, archived news pictures etc.), which has shaped the way people consume
sport and the way organisations must now focus and manage the various platforms on
their website and in their facilities. Today, many people now have access to sport
information via their smartphones and personal computers. While watching sport on TV
is still a viable and most popular option (Know the Fan Report, 2014), fans are increas-
ingly spending more time getting information through more instant access and self-
directed means in a mobile fashion anywhere and at any time. Unlike the local
newspaper, this information is not restricted to geography (although geo-blocking can
restrict the type of information available such as live action and video).
Rights holders and media companies are increasingly looking at ways to work social
media into the overall commercial offering for their loyal and new consumer bases
locally, nationally and internationally (given the ability of fans to connect from anywhere
and at any time). Boyle (2011, p. 18) noted that we are moving to an age where debates
about old and new media are becoming outdated and the new paradigm is one that
places the relationship between content and screens at its core. Social media is now at
the heart of sport business and digital rights are driving the changes in the delivery and
type of content produced by leagues and teams.
For even the casual sport fan, the ability to connect and consume information is
important. This requires sport organisations to employ staff who can write compelling,
trustworthy and interesting stories quickly and on a regular basis. However, what is com-
pelling to an older audience may not be the same thing that is sought by millennials.
Whereas perhaps as much as 10 years ago, social media was the domain of younger gen-
erations, we now see that the passion and use extends to people of all (or older) ages.
Hence, for a sport organisation, this also means that it must have knowledge of not just
the production of interesting and relevant content, but also the backroom technology
needed to ensure that its platforms are up to speed and that (for example) geo-blocking
protection is working to help protect it from copyright or licensing issues.
The availability and accessibility of connected devices such as live HDTV and Inter-
net streaming allows fans around the world to consume sport live. The second screen,
and screen size (tablets vs phones), can provide people with the action they are seeking
in different formats. Rowe and Hutchins (2014) provided an interesting example of
watching Usain Bolt win the mens 100-metre sprint during the 2012 Olympic Games.
Although only 80,000 people could have seen the event in live site, by means of media
arrangements the real live audience numbers could be measured in billions (or at least
hundreds of millions) rather than thousands. Today, people are not limited to spatial
locations for sport consumption. The real reach of sport, through various broadcast
rights and media platforms, is tremendous. Rowe and Hutchins (2014) noted that the
purchasers of broadcast rights for the Olympics were initially concerned that new/social
media would splinter audience attention and so reduce the size of the audited audi-
ences on which they rely (p. 12). Consider that now people who live site can share
their experience through photo, video and/or text with others almost instantaneously
through the likes of Twitter and other shareable content. This technology provides an
account of (or close to) real-time experiences and exposure on a broad international
platform. However, this concern about reducing the size of audience gures proved a
moot point, as the conversation between people using social media actually brought
people into viewing the live televised event (Rowe & Hutchins, 2014).
Social media, in conjunction/simultaneously with traditional media, allows fans to
communicate directly and easily with each other and to build identity at a time, place
and frequency that best suits the individual. Without doubt, there is a strong conver-
gence of sport organisations using social media. The effect of social media has seen tradi-
tional media like newsprint begin to combine social media into their format. Some
organisations now use social media to bring in consumer opinions so that the broadcast-
ers can interact with the people/fans watching the programme by answering questions.
Hence, we see that social media, accompanying traditional modes, are advancing the
second screen experience.
For sport organisations and or property rights holders, the advent of social media and
the new technology that is constantly appearing has created a need to have policies that
help manage their products and services. Interestingly, we have seen new policy created
for how athletes are allowed to use social media. Professional teams want to have their
fans connect with the team and they use the prole of star players to bring fans into the
two-way communication. Yet there is also concern about the potentially damaging
effects of athletes tweeting inappropriate comments or posting images on social media
that could cause offence.
SUMMARY
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REFERENCES
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i]Growing the game: The globalization of Major League Baseball i>i]
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Know the fan: The global sports media consumption report{]>`\- i
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SECTION 2
Foundations of sport
management
CHAPTER 6
Creating high performing

non-prot sport organisations
Popi Sotiriadou and Veerle De Bosscher
Chapter objectives
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Key Terms: High Performance Sport; Managing HP Sport; Athlete Attraction, Retention,
Transition and Nurturing Processes; HP Sport Strategy Formation and Implementation
INTRODUCTION
This chapter outlines the three principles of managing high performance (HP) sport.
These principles are (1) the elite athlete development process, (2) the determinants of
managing the HP sport environment, and (3) the strategic management of HP sport.
Understanding and applying these principles helps sport managers and sport organisa-
tions to manage HP sport environments, athletes and team successfully.
High performance sport is the top end of sport development and encapsulates any
athlete or team that competes at an international or national level (Sotiriadou &
Shilbury, 2013). High performance sport management is about identifying, measuring and
developing the performance of athletes and teams, and aligning their performance with
76 Popi Sotiriadou and Veerle De Bosscher
the strategic goals of the sport organisation. Therefore, HP sport management is dened
as the process of (1) understanding what is to be achieved (planning), (2) developing the
capacity of people and organisations to achieve it (capacity building and leading), (3)
providing the required support (resourcing), and (4) offering feedback to athletes and
teams to improve their performance (monitoring and evaluating). Planning, capacity
building and leading, resourcing, and monitoring and evaluating athlete progress and per-
formances represent the key performance management functions in managing HP sport.
Consequently, managing HP sport is the application of performance management pro-
cesses to the context of HP sport in order to obtain and maintain sporting excellence
(Sotiriadou, 2013).
The evolution of managing HP sport dates back to the 1950s and the onset of the
Cold War. Political and military tensions between Western Bloc (i.e. the United
States and its allies) and Eastern Bloc (i.e. the Soviet Union and its allies) powers
prompted government support to systematically develop elite sport, to achieve diplo-
matic objectives (Riordan, 1978). Consequently, in their efforts to demonstrate
superiority over American capitalism, communist bloc countries, including the Soviet
Union and the German Democratic Republic, invested heavily in HP sport. Since
then, systematic talent identication processes, evolutionary sport sciences, special-
ised coaching, training and facilities, as well as advanced athlete development pro-
grammes, became the new HP model that many other countries outside the
communist bloc, including Australia, Canada and the United Kingdom, have
embraced and further advanced.
As the know-how of managing HP sport and the well- and long-held secrets of
developing athletes and nurturing success were disclosed over time, many countries have
replicated successful HP systems and structures and improved performances and success.
The success of replicating a systematic development of elite athletes from country to
country came to a halt when nations realised that there is no one model ts all
approach to managing HP sport. In the early 2000s, researchers, countries, national sport
organisations, high performance managers and coaches began to seek sport-, country-
and context-specic mechanisms to manage HP sport. Over the past two decades, the
focus in managing HP sport has shifted towards the search for better or new ways to
develop elite sport and create a competitive advantage for nations.
Due to a lack of HP-specic planning tools, sport organisations and people working
within HP sport have long borrowed and applied generic management principles, the-
ories and models (such as situation analysis and strengths, weaknesses, opportunities and
threats analysis). As the management of HP sport is an established eld of study, generic
management principles alone are insufcient to explain the complexity of the eld, and
the need to develop HP specic practices and theories is clear. It is now well understood
that these mechanisms need to be country and context specic for the principles of man-
aging HP sport to generate results. There is a consensus among researchers that the
development of elite athletes requires a systematic approach to create pathways that will
attract talented athletes and allow them to transition to elite level and maintain elite
level success long term (Sotiriadou & Shilbury, 2009; Sotiriadou, Quick & Shilbury,
2006). Consequently, countries, governments, sport systems and sport managers all over
the world recognise the need to advance the development of sport in a strategic and
systematic way.
}iv}w}>> 77
The three principles of managing HP sport that this chapter outlines are:
1 The principle of elite athlete development process. The elite athlete development
process is explained using an organisational approach and by applying the elite
athlete Attraction, Retention, Transition and Nurturing model (Sotiriadou, Shilbury &
Quick, 2008).
2 The principle of HP sport environments. The HP sport environment and its implica-
tions for elite athlete development are explained from a macro, meso and micro
level perspective.
3 The principle of strategic management of HP sport. Strategic management in the
context of HP sport is explained using HP sport strategy formation and implementa-
tion models.
THE THREE PRINCIPLES OF MANAGING HP SPORT
The three principles of HP management offer the necessary guidelines for the decisions
and actions of HP managers, and represent the underlying factors that form the founda-
tions of successful HP sport management within sport organisations.
Principle 1: elite athlete development process

There is a plethora of studies that outline the different athlete development phases, pro-
cesses and transitions (e.g. Balyi & Hamilton, 2004; Bloom, 1985; Ct, 1999; Ct &
Fraser-Thomas, 2007; Wylleman & Lavallee, 2004; see Brouwers, De Bosscher & Sotiria-
dou, 2012, for a detailed overview of the most inuential athlete development and trans-
ition models). In their empirical study, Sotiriadou et al. (2008, p. 266) dened elite
athlete development as a dynamic process, in which sport development stakeholder
involvement provides the necessary sport development strategies and pathways to facil-
itate the attraction, retention/transition and nurturing (ARTN) of athletes. An athlete
pathway describes two things: (1) a continuum of their development during the ARTN
process (continuum of development), and (2) athlete movement and shifts at various
levels or types of involvement with sport (movement in the sport system). The contin-
uum of development during the ARTN process includes talent identication and selec-
tion, development of skills and competencies, experiences at national and international
level competitions and achievement of elite sporting performance and success. Athlete
movement in the sport system, outside a continuum, involves their engagement in other
roles than playing sport such as coaches, umpires, commentators, administrators or vol-
unteers, participating at grassroots levels, or moving to another continuum of a different
sport (e.g. retiring from gymnastics and moving to diving).
Sport organisations can identify athlete development pathways within their sport, and
then build programmes and implement strategies that would encourage participation
and promote excellence (Richards, 2016). However, creating successful athlete con-
tinuation and development through developmental pathways has traditionally been a
great challenge for sport administrators and sport organisations that cannot see or ll
in gaps in developmental pathways, and athlete development programmes fail. Some
sports get the balance of athlete continuation and progression right while others struggle.
A typical example in the Australian context is represented in two football codes, the
Australian Football League (AFL) and soccer. While both codes are very popular plat-
forms for grassroots participation, pathways to elite AFL game appear to be a lot better
structured with better talent retention and transition to elite compared to soccer and the
A-League. Consequently, the AFL player participation pathways are: (1) comprehensive
(levels of participation that link), (2) inclusive and equitable (accommodates all young
people), (3) coherent (prescribes links between levels), (4) developmental (meets chil-
drens needs), and (5) informed (by research and practice) (Australian Football League,
2016).
Considerable research has focused on identifying the ideal trajectory for athletes, from
the rst exposure to fundamental movement skills to elite competitive success (Richards,
2016). Many sports have tried to design pathways and deliver effective support and
systems. Yet, understanding the pathway to athletic excellence remains a coveted
objective for a range of sporting stakeholders (Gulbin, Weissensteiner, Oldenziel &
Gagn, 2013). There are three key reasons that explain why many sports fail to design
and deliver successful athlete development pathways.
Skills development versus organisational approaches to sport development

First, many sports base their athlete development process on coaching or skill develop-
ment models. As the denition of athlete pathways explains, athlete development can be
examined and explained from both a coaching and an organisational perspective. The
problem identied in such sports is that they design pathways for various athlete skill
development stages and do not take into account the organisational context, stakeholder
input (e.g. policy development and strategy implementation), the logistics around sport
development throughputs (e.g. training facilities, camps, coaching, competitions and
events) and the need or use of other organisational resources (both human and nan-
cial). As the denition of athlete development denotes, the examination of stakeholder
involvement and sport development strategies is essential for identifying the right
pathways.
In their overview of the most inuential athlete development and transition models,
Brouwers, De Bosscher and Sotiriadou (2012) suggested that these models represent
various efforts to explain athlete development processes from a coaching, psychological
or physical developmental perceptive. Indeed, the literature on talent development
models suggests that these athlete development models are the results of sport science,
sport coaching and sport psychology studies, without looking at the implication for the
organisational context and management. Bloom (1985), for instance, argued that devel-
opment is a three-staged approach, including initiation, development and perfection.
Another often-used model is one from Ct and Fraser-Thomas (2007), which presents
the sampling years or entry into sport with deliberate play and practice, recreational
years and specialising years. The long-term athlete development model (Balyi, 2001)
outlines training stages from learning the fundamentals, to learning to train, training to
train and training to compete, then training to win and, eventually, athlete retirement.
Then, in a different model, Wylleman and Lavallee (2004) propose an athlete develop-
ment model that is inclusive of the athletic, psychological, psychosocial and academic
}iv}w}>> 79
vocational level. Over the past years, this literature has been complemented with authors
highlighting the importance of the context within which development takes place. For
example, Baker and Horton (2004) distinguish the primary inuences of performance
(e.g. genetics, training, psychology) from the secondary inuences that indirectly inu-
ence performance such as sociocultural factors, cultural importance, instructional
resources, familial support and sport maturity. Henriksen, Stambulova and Roessler
(2010) shifted researchers focus from individual talent to the Athletic Talent Develop-
ment Environment (ATDE) model that consists of micro and macro levels, athletic and
non-athletic domains and the given time frame (past, present and future).
These models offer substantial insight into the athlete pathways continuum in terms
of skills development, training and micro level driven athlete traits and provide a useful
approach to coaches and trainers in designing programmes and training techniques that
reect athlete needs. However, as the denition of an athlete pathway denotes, in addi-
tion to understanding the developmental continuum, it is also essential to understand
the role of sport organisations at various levels (e.g. international, national, local), and
the people within them (including coaches, umpires, commentators, administrators, HP
directors or volunteers), on athlete movement in the sport system. In other words, exam-
ining athlete development from an organisational perceptive.
As such, in sport management literature, Sotiriadou (2010, 2013) proposed the
ARTN model previously described. The ARTN is an organisational model of athlete
development that examines sport organisations and their efforts to develop athletes as an
open system (Sotiriadou, 2013). This means that as sports and sport organisations
interact with their environment and exchange or process information with various stake-
holders, they operate in an open system where inputs, throughputs, outputs and perform-
ances are all important factors to consider. As sport organisations interact with their
environment, they draw certain inputs from it (e.g. funding, programmes and policy dir-
ection) and convert these to performance outputs. In summary, the ARTN model places
sport development within the context of systems theory (Midgley, 2003) (i.e. a process
of input throughout output) and outlines sport development as a process that is inclu-
sive of stakeholder involvement (input) that provides strategies or policies (throughput)
for successful pathways (output) (Sotiriadou, Brouwers & De Bosscher, 2016). This
means that the ARTN takes into account the environment within which sport organisa-
tions develop athletes.
Non-empirical versus evidence based approaches to sport development

Second, some sports fail to design relevant athlete development pathways because they
apply non-empirically derived or outdated models of sport development as opposed to
models that consider peoples movements in the sport system. The sport development
pyramid (Eady, 1993), which is a representation of sport development in the form of a
pyramid with mass participation at the base and elite athletes at the top, is a simple non-
empirically derived metaphor. Despite the fact that it does not explain the complexities
of HP sport development (Green & Houlihan, 2005; Sotiriadou & Shilbury, 2009; van
Bottenburg, 2003), it has gained much acceptance because of its simplicity. Indeed,
Gulbin et al. (2013) explained that it is common for sports to generalise athlete develop-
ment as an ascending scale of competition development and this is usually depicted as a
pyramid or some other closely related linear model. There was a time when a pyramid
was quite a logical way of building sport programmes (besides the fact that not all
athletes follow that pyramid and drop out earlier from sport). However, the sport
environment has changed, with many other stakeholders and organisations being
involved in sport (e.g. commercial sector) and the pyramid model does not cover sport
development in its entirety. As sport development is a much more convoluted process
and far from linear, in order to achieve a more informed understanding of athlete devel-
opment, researchers have advocated for a more detailed assessment of the development
process (e.g. Vaeyens, Lenoir, Williams & Philippaerts, 2008). Furthermore, Abbott,
Button, Pepping and Collins (2005) argued that approaches that fail to acknowledge the
multifaceted nature of development are in danger of missing the complex, dynamic and
linear nature of athlete development.
To illustrate the multifaceted nature of sport development from an organisational per-
spective, simply consider the role of a coach at the different levels of athlete develop-
ment and the ways their role varies depending on the level at which they operate.
During the attraction process coaches have a very different role as the development of
basic skills is important. However, their role in developing elite athletes or training them
for success is greatly different. Such stakeholder role details, and much more, also needs
to be taken into account in developing HP pathways in sport.
As Gulbin et al. (2013) at the Australian Institute of Sport have demonstrated, the
performance development of an athlete does not always follow a predictable or linear
ascent. In their work, Sotiriadou et al. (2016) suggested that there are seven pathways.
Figure 6.1 shows the movement of individuals (elite or not elite) within the sport devel-
opment space. The seven pathways recognise that people could play sports without the
desire to become elite athletes (1). Other people may transition to higher levels of com-
petition (2) and become elite athletes (3). At the end of their careers some athletes may
retire and leave sport (4), while others may re-enter a pathway as an athlete in a dif-
ferent sport (5). Athletes or participants can stop participating and work or volunteer in
the sport system in various capacities (e.g. coaching or umpiring) (6), or leave the elite
level and play sport at grassroots (e.g. at a Masters club) or competitions levels (7) (e.g.
Masters Games) (Sotiriadou et al., 2016).
Adopting an informed and strategic approach to sport development

Third, athlete development pathways need to be (1) informed by the environment and
context they will be operationalised in and (2) managed using a strategic approach. An
important step in improving the outcomes and cost-efciency of elite athlete development
is having a comprehensive understanding of the factors that contribute to the evolution of
talent (Gulbin et al., 2013). Yet, many sport organisations adopt a micro level analysis (e.g.
athlete specic traits and individual elements can affect an athletes progression and trans-
ition along the performance continuum like natural ability and mental toughness).
However, in addition to these individual elements that contribute to development, it is
equally important to understand how the broader (macro) and wider (meso) environments
can also inuence development. These macro, meso and micro environments represent
Principle 2 and are the focus of the next section. The strategic approach to managing and
implementing HP pathways represent Principle 3, which is discussed after Principle 2.
}iv}w}>> 81
Re-entry
Entry paths
Exit paths
(6) Re-entry in another capacity
Links for re-entries

Entry to another sport (5) Exit
Elite (4)
(3)
Exit
(7) (4)
Talent/pre-elite
Entry point(s) competitions Re-
(2) entry
Exit
Grassroots participation (4)
(1)
FIGURE 6.1 /iii>>vìii>`>i`v->ì>]
Principle 2: the determinants of managing HP sport

People are not born as athletes; they need to invest great time, energy, resources and
passion in their sport, and be surrounded by people who provide a range of support ser-
vices. Athlete training and competition opportunities hone their skills, and with the
guidance of coaches, physiotherapists, doctors, dieticians and sport scientists they
improve their performance and enhance their physical and mental readiness. Over time,
the support services from national governing bodies, governments, Olympic committees
and/or private partners have made working towards a sporting career an attractive pro-
position to athletes (De Bosscher, Sotiriadou, Brouwers & Truyens, 2015). Talent,
whether it is in sport, arts, sciences or other life endeavours, is an individual quality that
can only be fully expressed in a specic social environment and with the support of
others (van Bottenburg, 2009). Consequently, HP sport management is multifactorial
and dynamic in nature, with athletes altering and adapting according to the environment
in which they are nurtured, and management needs to take these factors into account.
Not all factors inuencing the success of athletes can be developed or managed (De
Bosscher et al., 2015). Those factors can be classied at three levels: macro, meso and
micro level (De Bosscher, De Knop, Van Bottenburg & Shibli, 2006).
Macro level determinants

Macro level factors inuence the dynamic, social and cultural environments in which
people live, including the economy, demography, geography and climate, urbanisation,
politics and national culture. Research shows that over 50% of international sporting
success of countries can be explained by mainly three macro variables: population,
wealth (expressed as gross domestic product per capita) and (formerly) communism
(referring to a particular political system) (e.g. De Bosscher, 2007). These factors cannot
be directly inuenced and as such are difcult to manage. Some consensus is building
among researchers that the impact of these macro level factors has decreased over time.
For example, their predictive value to medals was only 41.6% at the London Olympic
Games in 2012 (De Bosscher et al., 2015). Nevertheless, macro factors are important to
consider and necessary to understand when shaping HP sport strategies (Andersen &
Ronglan, 2012; Bergsgard, Houlihan, Mangset, Ndland & Rommetveldt, 2007). While
macro level factors have an important effect on HP systems and athletes, they are hard
to manage and difcult to evaluate (De Bosscher et al., 2015).
In summary, commercial, political, social and cultural factors are closely intertwined
with the management of HP sport and affect the operation of all sport organisations
(public, non-prot or commercial sectors) at national or international levels (Houlihan,
2013). This is why HP systems in different sports have similar goals, but different tracks
on how these systems are developed and, consequently, how they are managed
(Andersen & Ronglan 2012; De Bosscher et al., 2015). How these macro level factors
inuence HP management and the way managers deal with them is hard to determine or
generalise, because they are complicated, multilayered and country, sport and context
specic. The HP environment is also dynamic because initial policy decisions can deter-
mine a future policy choice, which is referred to as path dependency (Houlihan &
Green, 2007). Therefore, managers need to formulate the strategies that best t the
historical, cultural and political context of the HP sport system.
Meso level determinants

As nations have become strategic in the way they produce elite athletes, they rely less
on these uncontrollable macro level variables and more on variables that are widely
regarded as being components of an HP sport system. As such, HP sport has attracted
attention from governments and performance managers around the world who increas-
ingly believe that elite sport success is developable or manageable (De Bosscher et
al., 2015, p. 39). HP management can be achieved more effectively as the result of
proactive resourcing and creation of an HP system, rather than simply relying on
passive macroeconomic variables. This inuence is exercised at the meso level. An
increasing number of studies have been conducted to identify how HP management
and policies can inuence success at a national policy level (e.g. Brouwers, Sotiriadou
& De Bosscher, 2015a; De Bosscher et al., 2006; De Bosscher, Bingham & Shibli,
2008; Digel, Burk & Fahrner, 2006; Oakley & Green, 2001) and to understand elite
sport from a broader political or historical perspective (e.g. Andersen & Ronglan,
2012; Bergsgard et al., 2007; Green & Houlihan, 2005; Houlihan & Green, 2007) and
at a sport-specic level (e.g. Andersen & Ronglan, 2012; Bhlke, 2007; Bhlke &
Robinson, 2009; Brouwers, Sotiriadou & De Bosscher, 2015b; Robinson & Minikin,
2011; Sotiriadou, Gowthorp & De Bosscher, 2014; Truyens, De Bosscher, Heyndels &
Westerbeek, 2013), as success of countries tends to be concentrated in sports or spe-
cic events, in other words, countries typically specialize (Truyens et al., 2013, p. 1).
What is concluded from these studies is that there are broad common categories of
how HP systems can be managed; these factors have been clustered in different ways
depending on the scope (see De Bosscher et al., 2015).
}iv}w}>> 83
One of the meso level models frequently used by performance managers and policy
makers is the SPLISS (Sport Policy factors Leading to International Sporting Success)
model (De Bosscher et al., 2006). This model identies nine pillars and species 96 crit-
ical success factors (CSFs) that contribute to improving the HP sporting success of a
nation (De Bosscher et al., 2015). Specically, nancial support (pillar 1) and an integ-
rated approach to policy development through organisation, structure and governance
(pillar 2) are necessary conditions for the development of athletic careers. Pillars 3, 4 and
5 represent the sequences of the athlete development stages, including foundation and
participation (pillar 3), talent identication and development systems (pillar 4) and ath-
letic and post-career support (pillar 5). Investment in the four remaining pillars (pillar 6,
training facilities; pillar 7, provision for and development of coaches; pillar 8, national
and international competition structure; pillar 9, scientic research and innovation) is
essential for the development of elite athletes.
The model has also been applied to other contexts at a sport-specic level (e.g. ath-
letics, Truyens et al., 2013; tennis, Brouwers et al., 2015b; canoe, Sotiriadou et al., 2014;
judo, Mazzei, 2016), or Paralympics at a state level (Brazil; Bhme et al., in press).
When these nine pillars are compared to recent international comparative studies on
elite sport systems (e.g. Andersen & Ronglan 2012; Bergsgard et al., 2007; Digel et al.,
2006; Houlihan & Green, 2007), they show a high degree of overlap with what other
authors consider to be the elements of an HP system. The main difference is that the
nine pillars in the SPLISS study are underpinned by CSFs and subfactors, and that the
focus is on meso level factors in relation to the success of countries. It is important to
stress that the nine pillars of the SPLISS model are general dimensions for which it can
be argued that all factors are manageable and can be classied under one of these pillars.
De Bosscher et al. (2006, p. 209) state that the SPLISS function is not deterministic:
rather it aims to identify pivotal issues and to generate crucial questions in a benchmark
study of elite sport systems. The SPLISS model is therefore dynamic and will continu-
ously be adapted over time, over different sport settings, different sport contexts and
situations.
Micro level determinants

While meso level factors inuence the success of nations, micro level factors inuence
the success of individual athletes, ranging from the inuence of inherited genes to the
social inuence of parents, friends and coaches. Some micro level factors can be control-
led, such as training techniques or tactics, and others cannot, such as genetics. There is
much literature explaining the personal achievements of athletes (e.g. Conzelmann &
Nagel, 2003; Wylleman & Lavallee, 2004), mainly in sport science and sport coaching
research.
This literature helps understand what determines athletes performance holistically
from an individual athlete perspective, and clearly has consequences for the organisation
of HP sport at a meso level. This research is focused on the individual athlete or their
close environment and examines the discovery and development of athletic talent
(Henriksen et al., 2010). Over time, this literature has been complemented with authors
highlighting the importance of the context within which development takes place.
Henriksen et al.s (2010) holistic model is interesting because, although it takes a micro
level approach, it uses systems theory (Patton & McMahon, 2006) to shift researchers
focus from individual talent to the ATDE model. Starting from the athlete at the centre
of the model, it also describes the factors that inuence talent development at the micro
level (managers, coaches, clubmates) and the personal environment (peers, family,
school). In addition, it adds the meso level (e.g. sport federations and clubs) and macro
level (education and sport culture) factors.
There are links between meso and micro level factors. Well-considered micro level
factors provide a fertile ground for HP management at the meso level to be effective.
When, for instance, coaches adopt age-appropriate sport development programmes
that take into account the athletes physical and psychological stages of development
(i.e. micro level factors), inevitably they work towards and allow for optimal talent
development and identication processes (i.e. meso level factors that lead to athlete
success). Similarly, meso level policies, such as athlete support services and sport
scientists, cater for athlete-specic needs at a micro level. These micro and meso
level factors, and the ways they link, are discussed in the following case study on
equestrian sport.
Case study 1: micro and macro level analysis

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Principle 3: the strategic management of HP sport

The aforementioned macro, meso and micro level analyses are an essential step, an
initial assessment, in informing HP sport strategies. HP sport is characterised by the
effective amalgamation and synergy of elements including nancial and managerial
support, coaching, sport sciences and sport medicine support, talent identication and
athlete pathways, training facilities and equipment, and competitions. Nations are
becoming more strategic in the way they produce elite athletes (De Bosscher et al.,
2008). Consequently, national sport systems have moved beyond the mere application
of sport sciences and coaching as a sole base for elite athlete success. There is a rapid
recognition and overwhelming evidence to suggest that the new point of difference
and competitive advantage for nations is effective management and governance (e.g.
Ferkins, Shilbury & McDonald, 2005; Hoye, 2007) of HP sport and all the processes
involved.
An HP sport strategy reects this need to create a point of difference. A well-prepared
HP sport strategy needs to be aligned with and complement the overall strategy and stra-
tegic plan of a sport organisation. It needs to convey the organisations goals in a simple
and clear way, so that the organisations members can embrace it and implement its
goals. These goals need to be achievable, using resources in effective ways, and time-
bound in order for the organisations to be able to measure its successes (i.e. monitor and
evaluate key performance indicators) and understand the areas where it needs to
improve and the ways it can do so for sustainable progress and success. However, HP
sports operate in fast-changing and highly volatile environments. This is why sport
organisations, coaches, athletes and teams are required to work in innovative ways and
collaborate with other organisations in order to achieve better results and gain a com-
petitive advantage.
Strategies, policies and goals

It is important to stress that many people either are confused about terms strategy and
policy or use them interchangeably, but they are not the same. Policy provides the frame-
work for strategy formulation, or in other words the direction. Hence, policy is also
regarded as a mini mission statement (or a set of principles and rules) that directs organi-
sations decisions and acts as a basis for guiding actions. If you think about achieving elite
athlete development, policy is often engaged with the ways to do it, strategy is con-
cerned with the means and planning is about the delivery of the ends. Therefore, in
simple terms, sport policies offer the framework for sport organisations to shape and
action strategies that will enable them to achieve their goals. For instance, a national
junior sport policy offers sport organisations and other providers of junior sport a frame-
work for developing junior sport in a country. The implementation of that framework is
set out around specic strategies that relate to developing junior sport in that country.
Then, planning is about making choices about how to use the organisations resources
and the required actions to achieve the choices made in the strategy. Hence, strategy is
the game plan, chosen to achieve the organisational objectives or attain a competitive
advantage.
}iv}w}>> 87
Strategy formulation, implementation and evaluation

The principle of strategic management of HP sport includes the formulation, implemen-
tation and evaluation of strategies in order to achieve a sports or a nations policy direc-
tion. Sport organisations and sport managers often reect on what is management and
how is strategic management different from management? Strategic management is
dened as the set of decisions and actions that result in the formulation and implementa-
tion (strategic) of plans designed to achieve a companys objectives, and involves the
planning, directing, organising, and controlling (management) of a companys strategy-
related decisions and actions (Pearce, Robinson & Subramanian, 2000). This denition
can be split into two halves. The rst half outlines the key traits of strategy (i.e. formula-
tion and implementation of plans) and the second half outlines the key functions of
management (i.e. planning, directing, organising and controlling). Specically, strategic
management involves three key stages, each with various steps: (1) strategy formulation,
(2) strategy implementation, and (3) strategy evaluation.
HP strategy formulation involves the development of the organisations (or teams
or athletes) mission; what the organisation or team does and what it aims to achieve.
Remember that according to Principle 2, an analysis of the organisations macro, meso
and micro environment within which it operates is also conducted in order to inform
strategy formulation. Then, the organisation or team is ready to develop HP strategies
that boards of directors and HP managers deem appropriate for the direction the
organisation, team or athlete ought to take to achieve their goals. Once sports have
completed their HP strategy formulation, HP managers need to facilitate strategy
implementation.
Strategy implementation is the process of putting the formulated strategies into
action. Managers are required to communicate the strategies to coaches, athletes and
sport scientists in order to execute HP activities that will yield the best results. The
success and effectiveness of HP strategies depend on how well the managers apply
management functions to action. As such, HP strategy implementation relates to the
managers ability to manage and motivate the team or athletes, communicate the
vision and goals of the organisation and everyone who operates within the organisa-
tion, monitor performances and detect or rectify issues in a timely fashion.
Strategy evaluation is the process of measuring performances, analysing variance
between set and achieved goals and taking corrective action where goals have not been
achieved. Strategy evaluation helps sport organisations determine if the strategies lead to
achieving the mission and goals. The process begins by evaluating if the results that have
been realised have been successful. However, evaluation in the area of managing high
performance is not easy as it would be in a for-prot organisation where sales and prots
or shareholder returns are some of the key measures. Specically, for some nations the
mere fact of having athlete representation at the Olympic Games is a signicant
outcome. For other nations, winning fewer than, say, 40 Olympic medals is seen as
failing to meet their goals. This is a signicant point in the strategy cycle because it illus-
trates how each nation, sport organisation, athlete or team is required to set goals based
on their own environmental evaluation (see Principle 2).
In conclusion, Principle 3 represents the nal stage in managing HP sport. Yet, it
needs to be informed by the macro, meso and micro level analyses (Principle 2) and a
comprehensive analysis of the existing elite athlete development process (Principle 1).
Signicantly, this section explains that there is a distinction between HP sport policies
and HP sport strategies since elite sport policies help sport organisations to determine
what is to be done. HP strategies represent the plan of action and help operationalise
the policies into actions that will help achieve goals. Policy is a guideline to achieve
objectives whereas strategy is about method of understanding environment and making a
plan for what needs to be done to achieve the objectives outlined in the policy. For
example, the SPLISS model offers a useful policy framework because it lends itself as
the guideline for HP managers to operationalise and action strategies for HP sport.
Case study 2: managing HP sport in Papua New

Guinea

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REFERENCES
LL]] ]
]*i}]E
]x1>>iiV\/>iìwV>>`
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`ViiManaging Leisure, 17q]xxq
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>i] E ] - { ii v > >` iV`> yiVi iii High
Ability Studies, 15]qn
>]-iL`}>`}i>iiìii
L>Canada:
SportsMed BS]{
>]E>]{}i>iiìii\/>>LV``>`>ìViVi
Olympic Coach, 16]{q
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i}}>`] ]>] ]>}i]*] `>`]-E,ii`]Sport policy: A
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] - `nxDeveloping talent in young people i9 >>i
] -E->]nxDeveloping talent in young people i9\ >>i
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wiì}>>vV>Vi`V>New Studies in Athletics, 21]{qx
i] E,L] iV>}viiiManagement Decision, 47]
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i]/-] >]
]>i]],VV]]>>]
Ei Vi]6iElite sport
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i] ] i Vi] 6 E ->`] * i>> v i >Vi v iv
>Vi>`Vi>>`V>v>iVViiSport Management
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i>> VVi\ /i V>i v i Sport Management Review, 18] {qxn `\
{
i] ] ->`] * E i Vi] 6 xL i>> v i >iì >` ii
>iiìii>>iEuropean Sport Management Quarterly, 15{]{x{q{
i>]E >}i]-*vi>V>iivii>"V>iiInternational
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j]/iyiViviv>iìiiv>iThe Sport Psychologist,

13{]xq{
j] E >i/>] 9 ii Sport psychology: A Canadian Per-

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i Vi]6Sports policy factors leading to international sporting success-*
i Vi] 6] }>] E -L] - n The global sporting arms race: An international com-
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i Vi] 6] i ] *] 6> iL}] ] }>] E /i] Sports policy
factors leading to international sporting success i\61 *, --
i Vi]6]i]*]6> iL}]E-L]-VVi>v>iv>>
} V v>V i>`} i>> } VVi European Sport Management
Quarterly, 6]nxqx
i Vi]6]->`]*] i]E/i]xii}ii\>V>`
iii>>Vi-ìi]/,}>E > `] Managing elite sport
systems: Research and practice {q i9\,i`}i
}i]] ]6E>i]Die Organisation des Hochleistungssports: ein internationaler
Vergleich]x-V`v\v>
>`]Practical sports development`\}>
i]]-L]EV>`]x/iiviL>`L`}>i}VV>>L\
/>` > i}>i` ì v }i>Vi ii>V Sport Management Review, 8]
xqx
}iv}w}>> 93
ii]E>] xElite sport development: Policy learning and political priorities i

9\,i`}i
L]]7iiii]]"ìi]E>}j]*>iviv>Viìii
ii>iiEuropean Journal of Sport Science, 13]xq{
ii]]->L>] E,ii]-VViv>iìii>V>`wi`\

ì}iiviiScandinavian Journal of Medicine & Science in Sports, 20]
q
>]
iV>]V>]V>>`V>v>V>V}i>>}iiv
}iv>Vi*->È6i Vi `]Managing high performance sport
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>] Eii] `Comparative elite sport development i9\,i`}i
i],
i]ii>ìv>Viv>}>>L>ì
LiEuropean Sport Management Quarterly, 7]q
>i]High performance judo: Organizational factors leading to international sporting suc-
cess*iLiii61 >ì1iv->*> >
`}i] `Systems thinking`\->}i
">i] E ii] /i `V v "V V>\ i>> iiVi
iiìiiiEuropean Journal for Sports Management]nqx
*>]7EV>]/iiiv>ivV>iiìii>`Vi
}\
iV}i>`>VViInternational Journal for the Advancement of Counselling, 28]
xq
*i>Vi]],L], E-L>>>],Strategic management: Formulation, implemen-
tation, and control
L]"\V>
,V>`],iiìii>>,iii`vVi>}iv}>
,`>] `nSport under communism: The USSR, Czechoslovakia, the GDR, China, Cuba
i>\V+ii*iq+1*
,L]E] ii}i>>>`\}>ivV>>V
L`} ii>V q ii} i V>>V v >> >V> 1i v -V>`\
-]-
->`]*The sport development processes in Australia: The attraction, retention/transition,
and nurturing of sport participants and athletes
}i\>LiV>ìV*L}
->`]*/iiv}iv>ViìV>>}}>>*
->È6i Vi `]Managing high performance sport q{`\,i`}i
->`]*] i]Ei Vi]6}iv>Viìii>>
-i] -VivE** `]Managing sport development: An international approach
q i9\,i`}i
->`]*]]Ei Vi]6{ iVi>`Vii>\
/iV>iv-
>i>>Leisure Studies, 33]xnq
->`] *] +V] - E -L] - v i\ i i > >V> Inter-
national Journal of Sport Management, 7]xq
->`]*E-L]>>ii>iiìii\}>>>iiVi
Sport Management Review, 12]q{n
->`]*E-L]-ìii}iv>Vi\>V}]i>}
>` } >ii * ->` E 6 i Vi `] Managing high performance sport
qxn`\,i`}i
->`]*]-L]E+V]-n/i>>V]ii>]>`}Vi
vìii\-i>>iìViJournal of Sport Management, 22]{
/i] ] i Vi] 6] iì] E 7iiLii] iViL>i` iiVi

Vi Vii >`>>}i ii >iV International Journal of Sport Policy and Politics,
6]{xq{n
6>ii],]i]]7>]E*>i],n/>iìwV>>`ìi
i}>iSports Medicine, 38]q{
> iL}]/v>iV>vL>>ì i>>ViAmeri-
can Behavioral Scientist, 46]xxqx
> iL}] Op jacht naar goud: Het topsportklimaat in Nederland, 19982008 [The
v}`\/iiiV>ii ii>`]nqnR ii}i] ii>`\
-i`>
7i>]*E>>ii]{ìii>iiVi>v>Vi`L>iiDevel-
opmental Sport and Exercise Psychology: A Lifespan Perspective]xqx
CHAPTER 7
Controlling and managing

organisational performance
The viable system model
Winnie OGrady and John Davies
Chapter objectives
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depicting organisations as systems their design, structure and processes;
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organisational viability and effectiveness, in particular:
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Key Terms: Organisational Design; Systems Thinking; Sustainability; Management Control;

Viable Systems Model
INTRODUCTION
This chapter introduces the viable system model (VSM) of Stafford Beer (1979, 1981,
1985) as a tool for understanding factors inuencing performance in organisations. The
model is used to depict and analyse the effectiveness of organisational structures
observed in well-known sport organisations. The discussion reveals the impact of
observed systemic structure on organisational performance and effectiveness. The case
situations presented in this chapter are drawn from contemporary and historical sport
organisations notional, virtual and real. An appendix presents a set of questions for
evaluating the structure of sport organisations.
96 Winnie OGrady and John Davies
The chapter is structured rst to outline the VSM, a well-established framework

(Beer, 1979, 1981, 1985) for designing and diagnosing organisational structure, i.e.
the functions and information ows comprising organisations.1 The chapter comple-
ments prior work demonstrating the value of the VSM for examining the structure
and functioning of sport organisations (Davies, 1997a, 1997b, 1999; Haggerty, 1988).
In particular, it applies the model to a series of sport organisations to understand the
impact of systemic structure and communications on performance. The analyses reveal
instances of systemic function and dysfunction, and illustrate how communications
between subsystems impact organisational performance. The case situations have been
chosen to illustrate the value and usefulness of the VSM for evaluating different
aspects of organisational design, functioning and effectiveness. Finally, the chapter
draws on the lessons learned to offer a process to guide the design of sport organisa-
tions and thereby provide useful insights about organisational performance and
effectiveness.
AN OVERVIEW OF THE VSM
A full description of the VSM is provided in Beers major works (1979, 1981, 1985)
and in more recent interpretations in Christopher (2007) and Hoverstadt (2008). A
parsimonious outline of the VSM and its conceptual underpinnings is provided here.
A schematic representation is shown in Figure 7.1. The VSM is based on cybernetics,
dened as the science of effective organisation the science of communication and
control, in the animal and machine (Beer, 1985, p. ix). The cybernetic building blocks
pertinent to the examples in this chapter, namely viability, complexity, single and
double-loop learning, variety, requisite variety and variety engineering, are explained
briey in Table 7.1.
Organisations that conform to cybernetics principles are able to self-regulate. They
can respond to changes in the environment so that they maintain progress towards their
goals and purposes, i.e. they are able to remain in control. Being in control implies the
organisation behaves as expected and can achieve its intended outcomes. Obversely,
being out of control implies the organisation does not act or perform as expected or
uphold organisational values, and has divergent goals and purposes.
Beer (1979) recognised that clear communication of organisational purpose, identity,
visionary values (ends) and missionary values (means) are critical for achieving control.
Accordingly, he investigated how managing communications, both information channels
and information, inuence performance and the fullment of purpose. Poorly designed
communications force managers to wade through too much information, make decisions
based on incomplete information and delay decisions. Well-designed communications
provide information and advice that is complete, actionable and timely.
Beers conceptualisation of organisational structure differs from other representations
focused on managerial hierarchies, operational and functional compartmentalisation and
authority relationships. The viable systems structure encompasses organisational iden-
tity, purpose, values, systemic functions, communication channels and information
ows, as discussed next.
>>}}}>>>iv>Vi 97
Meta-system
Environment
S5 decides:
identity, purpose, vision,
System 5
mission, values
S4 strategises:
System 4 gathers intelligence and engages
Future in strategy development
environment
S3 resources and supports
System 3
S3* S2 the carrying out of purpose
engages in financial and
operational planning and
Local control
environment
S3* informal audit-like monitoring
and intelligence gathering
S2 informal and
formal coordination
S1 operations
S1 units deliver on purpose
FIGURE 7.1 -Vi>Viii>v ii6>Li-iìqi6-

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THE VSM
Beer (1979, 1981, 1985) conceptualises viable systems as networks of communication

channels bonding ve necessary and sufcient subsystems referred to as systems 1 to 5.
The VSM diagrammatically represents organisational structure portraying both systemic
functions and the communications linking them, as shown in Figure 7.1.
System 1 (S1) comprises the autonomous operational units that create organisational
value as envisioned by the organisations identity and purpose. The remaining four sub-
systems create a Meta-System to guide, support and regulate the operation of System 1.
System 5 (S5) establishes and promulgates the identity, vision, direction, purpose and
mission of the organisation and represents these to the wider external and internal
environments, including the S1 units. System 4 (S4) is responsible for intelligence, strat-
egising and strategy development. System 3 (S3) comprises operational planning,
resourcing, monitoring, control and audit functions relating to the autonomous units.
System 2 (S2) effects overall coordination of and between autonomous units.
The cases presented here illustrate how the VSM and its schematic representations
can be usefully applied to diagnose key managerial issues. The selected situations range
from historic to contemporary. Information used in the VSM analyses is drawn from a
range of sources including magazines and newspaper accounts, commissioned reports
TABLE 7.1
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Viability and environmental complexity

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Complexity, variety and requisite variety

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to respond to conditions in a semi-professional league by improving its playing squad,
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and informal discussions with knowledgeable individuals. The cases are intended to illus-
trate how the VSM guides the diagnosis of an organisation rather than to judge the effec-
tiveness of the organisations per se.
CASE EXAMPLE 1: AUCKLAND FOOTBALL KINGZ IN

2003 A CASE OF SYSTEMIC FAILURE
The Auckland Football Kingz joined Australias National Soccer League (NSL) in 1999
but struggled for success both on and off the eld. They failed to win, to develop a
fanbase or gain nancial support (Gray, 2003). By mid-2003 their performance was
subject to considerable criticism (Maddaford, 2003a, 2003b, 2003c, 2003d). While they
managed to survive in the short term, they trailed the NSL standings, were unable to
>>}}}>>>iv>Vi 99
pay facility hire fees on time and struggled to build a full-time playing squad. Ultimately,
they resorted to evening training sessions to attract local players and reduce their salary
bill. Effectively they had become a semi-professional club. A major restructure addressed
the clubs identity, organisation and personnel, and the Kingz resurfaced as the New
Zealand Knights. The Knights rst season (2005) coincided with the inaugural season of
the A-League, which replaced the NSL, before losing their playing licence to the
Wellington Phoenix in 2007.
A VSM depiction of the effectiveness of the Kingz organisation is shown in Figures
7.2a and 7.2b. The right-hand side of Figure 7.2a shows the Kingz as one element of our
System in Focus (SIF ), which is the New Zealand Football system. The Kingz football
team is shown as one of the S1 units carrying out the purpose of the wider SIF. New
Zealand Football manages the allocation of S3 resource to its S1 units, and provided the
Kingz with the licence needed to compete in what was then the NSL.
Each S1 unit of a viable system should be able to survive in its own right, meaning
it must also be a viable system (Beer, 1985). Figure 7.2a depicts, with the arrow, how
an S1 at a higher level of recursion can be viewed as a SIF at a lower level of recursion.
The VSM in Figure 7.2b enlarges the Kingz and depicts it as the SIF. As a SIF, the
Kingz should perform the ve functions comprising the subsystems of a viable system,
albeit at one level of nestedness or recursion lower than the original NZ Football level
SIF. With their licence in hand, the Kingz could have been expected to develop their
own S5 role to uphold the reputation of NZ Football and establish their own identity
as a club. However, the ease with which the Kingz organisation changed their name
to the NZ Knights in 2005 signalled a weak and dysfunctional S5. The Kingz had
failed to create and project their unique identity to stakeholders within and outside
the organisation.
NZ football 2003
S5
National level
S3 resourcing S4
obtain licence for Pro
Team to compete in ASL
now the A League S3
S4 strategy S3
and intelligence S5 identity
seek and develop must uphold reputation << All Whites
NZ players and of NZ soccer National Team
coaches
S2 coordination
must prevent NZ NSL Kingz
S3 resourcing teams fighting for Pro Team
provide well- reserve players
resourced
assistant/techno
coaches,
facilities and
venue S1 units
players perform! << National League
Federations
FIGURE 7.2a /iV>`}>ìVv>i

Football Kingz
S5 identity >>>
$
of NZ soccer $
$ans did not identify $
" $!"

S4 strategy and intelligence >>> $!
$velop NZ acilities to players
play
S2 coordination
$vent NZ NSL teams
<< Kingz or reserve players
Pro Team
in ASL
<< Limited development
activities
S1 units
$players did not perform!
FIGURE 7.2b /iV>`}>ìVv>i
The Kingz could have been expected to establish their own S4 strategy for seeking
out and developing New Zealand players and coaches. Their decision to recruit several
players nishing their careers in English and other European leagues proved inappropri-
ate and infeasible. Finally, the Kingz S3 resourcing subsystem failed to provide appropri-
ate coaches or playing and training facilities (see Figure 7.2b).
In VSM terms, the Kingz case provides an instructive example of systemic failure. It is
therefore not surprising that despite rebranding as the New Zealand Knights the organisa-
tion did not survive beyond the inaugural season of the A-League. The weaknesses in the
Meta-System and in S1 operations explain the failure of the football club. In contrast to the
New Zealand Knights, the Essendon Football Club had no apparent systemic weaknesses at
the turn of the millennium (Connolly, 2010). Essendon is discussed next.
CASE EXAMPLE 2: ESSENDON FOOTBALL CLUB IN

2000 A CASE OF SYSTEMIC SUCCESS
In 2000, the Australian Rules football club, Essendon, had a stellar season both on and
off the eld. The club was described as having one of the most well-rounded and skilful
playing teams and squads in the history of the Australian Football League (AFL). Their
success was viewed as an indicator of a dynasty in the making.2
The case situation reects Essendon Club as having a clear sense of identity and
purpose expressed as the Essendon Way. In Figure 7.3a, it is aligned with S5 identity.
This identity pervaded the Meta-System and its functions, through actions and commu-
nications expressed by S4, S3 and S2, and subsequently manifested in the S1 playing
units supportive team culture and values of trust and autonomy.
>>}}}>>>iv>Vi 101
Club level
Environment
S5 identity
System 5 $the Essendon way
S4 strategy
System 4 $search and recruit
Future Essendon people
environment
S3 resourcing
System 3
S3* S2 $load the coaching staff
with Essendon people
Local S2 coordination
environment $coaching common
skills, moves, values
S1 units
$trust and autonomy
$supportive team
culture
S1 Operations deliver
on purpose
FIGURE 7.3a i`L>

L>ìVL>>Vi
Figure 7.3b similarly depicts how other elements of the Essendon Meta-System (S4
strategising and S3 resourcing functions) at the club level inuenced the S1 operations
at the club level. The gure not only reveals the congruence of focus between systems
1 to 5 at the teams level, but also with the Meta-System of the wider Essendon club
level. This alignment signies the organisation has achieved systemic and holistic
balance.
CASE EXAMPLE 3: BCCI BOARD OF CRICKET CONTROL

IN INDIA A CASE OF SYSTEMIC ROLE CONFLICT
According to Mike Atherton, former captain of the England cricket team, money and
gambling syndicates are impacting the way cricket is organised and played throughout
the world. Their inuence is apparent on in-game activities such as spot xing, on the
results of cricket matches, and on businesses associated with the game. Of particular
concern is how money is impacting the Indian Premier League the IPL and also the
governing body, the Board of Control for Cricket in India (BCCI), which authorises and
distributes licences for the franchised teams playing in the IPL. Various conicts of inter-
ests are evident, including BCCI members having ownership stakes in franchise teams;
media commentators sitting on the IPL governing body; and media payments to BCCI
inuencing broadcast rights for test, state and IPL matches and the scheduling of
matches (Atherton, 2008, 2010).
Essendon System 5 Essendon

club level club level
S4 strategy S3 resourcing
s@SEARCHANDRECRUIT System 4 s@LOADTHECOACHINGSTAFF
%SSENDONPEOPLE WITH%SSENDONPEOPLE
s@RECRUITBESTFROMDRAFT s@PROVIDEQUALITYCOACHES
s@PICKOTHERSWHOWILL TECHNOCOACHES
BENEFIT%SSENDONIN System 3 ANDTRAINERS
THELONGTERM S2
Teams level Teams level

S5 identity S5 identity
s@PROJECTCULTUREOF s@STAYTRUETO%SSENDONWAY
QUALITYANDEXCELLENCE s@VALUEPERFORMANCESTATSAND
ANALYSIS
S4 strategy and
S4 strategy and
intelligence
intelligence
sSEEKPLAYERSCAPABLEOF
sSEEKPOTENTIAL%SSENDON
WINNINGCHAMPIONSHIP
COACHES
S3 resourcing S3 resourcing
s@PROVIDEBESTRAW s@PROVIDEWELL RESOURCED
MATERIALS ASSISTANTTECHNOCOACHES
S2 coordination S2 coordination
s@HOMOGENEOUSGROUP s@DEVELOPMENTOFUNIT
OFPLAYERS TEAMANDTACTICALSKILLS
S1 teams
s@TRUSTANDAUTONOMY
s@SUPPORTIVETEAMCULTURE
s@PRACTICEDEVELOPSSKILLSANDFINESSE
FIGURE 7.3b i`L>

L>ìVL>>Vi
In such a climate of money inuence, players can easily be led astray. From a VSM
perspective, the S5 moral governance of the game is inadequate and does not provide
appropriate guidance to direct player behaviour at the S1 franchise team level. Players
are rationalising unethical behaviour, reasoning that if everyone else is on the gravy
train, why should . . . [I] . . . miss out.
Athertons belief is that cricket will regain its greatness only when there is transforma-
tion at the very top. In VSM terms, this means a recalibration of S5 guiding values.
Those responsible for S5 governance must create a feeling for the . . . values of the . . .
game and not focus solely on maximising revenue and their own political interests.
The schematic presentation in Figure 7.4 displays the S5 weaknesses relating to iden-
tity, raison dtre and values. The dysfunctional values pervade all other subsystems and
are particularly apparent in the behaviours of S1 franchise teams and players. Figure 7.4
depicts the perceived systemic role conict of BCCI members between their Meta-
System roles and their vested interests in the S1 IPL units. It also shows a biased or over-
bearing S3 function privileging selected S1 operations, especially the IPL, and a
dominating media inuence on the Meta-System strategy and strategising. If, as Ather-
ton (2010) states, leadership is everything, then developing an effective S5 function that
>>}}}>>>iv>Vi 103
Ownership of IPL
Environment
Franchises by BCCI
S5 board members
S4
S3
Media S3* S2
influence
<< Indian national team
<< National teams

<< States
<< Other competitions
<< IPL
FIGURE 7.4 >`v

Vi
`>\iViVyV
emphasises the importance of vision, mission and values (Cummings & Davies, 1994) is
paramount. It is up to S5 to ensure values are promulgated and accepted throughout the
systems at all levels of recursion.
CASE EXAMPLE 4: THE NEW ZEALAND RUGBY FOOTBALL

UNION ORGANISATIONAL RESTRUCTURING AND
REDESIGN. DIAGNOSTIC VALIDATION
By 1992, the New Zealand Rugby Football Union (NZRFU) had enjoyed a continuous
and sustained period as the premier sport in New Zealand spanning 100 years (NZRFU,
1995a). The sports governing body, the NZRFU (now NZRU), continually produced a
winning national team with the All Blacks recognised as the most successful team in any
New Zealand sport code over the century.
Subsequent to the 1987 inaugural Rugby World Cup, won by the All Blacks, the
game of rugby was presented with emerging challenges that the NZRFU wanted to
prepare for, respond to and overcome. It was apparent that Council members were
struggling to complete more and more administrative and managerial tasks in a
timely, business-like fashion. The NZRFU responded by increasing stafng from 6 to
15. Additional pressures arose from the increasing need for funding; increasing com-
mercialism; changing demographics and lifestyles affecting participation and volunteer-
ing; and changes within the education system affecting participation. Consequently, the
NZRFU through its Council commissioned the Boston Consulting Group (BCG) to
undertake an independent review of rugby, its structure, strengths and weaknesses, and
of the issues and opportunities facing the game. The intent was to identify governance,
organisational and competition structures that would sustain and maintain the success
of the game in New Zealand. This proactivity by the NZRFU implied it had a vision to
promote the continued development and spread of rugby at all levels in New Zealand
and around the world.
After two years of consultation and research, BCG presented its recommendations
in the so-called Boston Report on NZ Rugby (NZRFU, 1995a). The report identied
that the game itself was likely to become professional at the international level, anti-
cipating the post-1995 World Cup move to professionalisation (Fitzsimons, 1996).
The emerging business of rugby needed advanced managerial and business skills not
always available among the eclectic mix of volunteers traditionally involved in running
rugby; required a heavy time commitment that would preclude individuals with the
appropriate skills making themselves available for election to unpaid positions; and
could not rely on Council members elected by geographical regions with parochial
interests as the best way to advance the interest of the sport as a whole (Davies,
1999). The report also noted that 19 Council members were involved in 17 manage-
ment subcommittees, undertaking operational duties rather than strategising and plan-
ning activities. Council members found it difcult to balance multiple roles, to
complete assigned tasks within the time volunteered to the Council, to keep in touch
with the grassroots constituents who elected them and to maintain effective commu-
nications with other Council members, provincial unions, the media, sponsors and
other stakeholders.
BCG presented nine recommendations to the NZRFU involving major initiatives
around governance, competitions and marketing/nance. In turn, the NZRFU Council
established three groups comprising Council members and independent experts to
further examine the initiatives. In October 1995, a modied set of proposals was pre-
sented to Provincial Unions for their feedback before the nal recommendations were
approved by NZRFU Council in November (NZRFU, 1995b). In December, at a Special
General Meeting, the constitution was changed and in March 1996 the NZRFU Council
voted itself out of existence.
Figure 7.5a provides a tabular summary and interpretation of the major ndings and
recommendations of the Boston Report. Figures 7.5a, 7.5b and 7.5c present a VSM diag-
nostic of the cybernetic/systemic strengths and weaknesses of NZRFU governance and
management processes both before (Figure 7.5b) and after reorganisation (Figure 7.5c).
As noted above, at the time of the BCG review, the NZRFU perceived its S5 identity
and vision as developing and spreading the game at all levels throughout New Zealand
and the world. Consequently, the restructuring can be interpreted as a strengthening of
the governance functions, S5 deliberations of purpose and strategic direction, S4 strategy
development activities and the S3 planning functions. Recommendations to remove
elected Board members from operational activities served to reduce their roles and work-
load and shift focus to their Meta-Systemic roles of promoting identity and developing
strategy.
Beyond removing numerous councillor-based committees, professional administrators
and managers were hired for S1 operational roles. These changes were expected to
Governance membership prior to reorganisation Governance membership post reorganisation
19 Council Members elected to serve particular constituencies, and 9 Board Members
contribute to: (3 selected by independent appointments panel)
17 management sub-committes, including Maori Rugby Board,
Junior Advisory Board, Finance and Marketing, etc.
Recommendations
>2%5(7%.es S5 responsibility for deciding on strategy and strategic direction
>7%.es responsibility f25-03/)0)17-1+"17)//-+)1')%1("75%7)+<)velopment, and f25"3)5%7-21%//%11-1+%1(
Control as agreed by the Board
>03,%6-63/%')(21-0352ving communications within and without HQ
>2%5(&)'20)6-1volv)(-1"225(-1%7-21%1("021-725ing functions7,528+,5)+8/%50))7-1+6:-7,52vincial chairpersons
three times a year
>&)'20)6-1volv)(-17,)"021-725-1+*81'7-217,528+,-1'5)%6)(/-%-6219-6-76727,)5ov-1'-%/#1-21,-)*;ecutive
**-')56, at a lower level of recursion
>"
225(-1%7-21-0352ved through greater range of information vehicles and mechanisms
>).g. information meetings, implementation of a buddy system as a means of maintaining links and creating a sense of
involvement, greater use of Rugb<)v)/230)17**-')56%1(!8+&y Refe5))6)ve/230)17**-')56-1%662'-%7)('2%',-1+
programmes
>7,)5"225(-1%7-21',%11)/6-1'/8()*-;785)6',)(8/)6, as well as contracts, conditions for funding appointments, budget
and loan conditions, performance targets, etc.
>"8&'200-77))65)3/%')(by ad-hoc Advisory Groups to provide input on policy, involving people from business and the wider
rugby fraternity in addition to staff or Board member involvement
>52*essional administrative and managerial staff take line responsibility for other activities
Prior systemic outcomes included: Post outcomes expected to include:

>arochialism undermining development of a wider vision by S5 >/-0-1%7-212*6<67)0-'3%52',-%/-60
>!)(8')(%77)17-2172$!#:-()"-17)//-+)1')%1(675%7)+<()velopment >"3)'-*-'%77)17-213%-(72"17)//-+)1')%1("75%7)+<)velopment functions
functions
Prior systemic outcomes included: Post outcomes expected to include:
>"<67)0-'52/)overlap and multiple role filling by Council Members >!)02val of systemic role overlap and multiple role filling
>!2/)%0&-+8-7<, role confusion for Council Members and staff >!)(8'7-212*52/)%0&-+8-7y, role confusion for Board Members and staff
>-**-'8/7<&%/%1'-1+"%1("*81'7-216 >2'86%1(&%/%1')5)-1752(8')(72"%1("*81'7-216
>1%()48%7)%77)17-213%-(72"-17)//-+)1')+%7,)5ing, views of key stakeholders >"3)'-*-'%77)17-213%-(72"-17)//-+)1')+%7,)5ing, views of key stakeholders
>1'5)%6)-1'20081-'%7-215)/%7)(352&lems and issues, within and without >1'5)%6)-1'20081-'%7-215)/%7)(352&lems and issues, within and without the
7,)$!#, especially with stakeholders $!# especially with stakeholders
>1%()48%7)"-1*ormation gathering, monitoring >"-1*ormation gathering, monitoring improved
>8/7-3/)81'/)%5"5)325ting procedures in some cases >/-0-1%7-212*08/7-3/)%1(2581'/)%5"5)325ting procedures
>2662*%872120y for S1 operations, resulting from involvement of >Autonomy for S1 operations increased
Councillors in operations Further consequences included:
Further consequence included: >!2/)%1(:2rk overload for Board Members
>9erload for Council Members >!)(8')(52/)%1(:2rk overload for staff
>52/)overload for staff
>"7%**81%&le to use initiative to the full
FIGURE 7.5a <,1\}i>ViVi>`Vii>ì}>>

Meta-system
System 5 S5 decides:
identity, purpose, vision
Provincial mission, values
IRB
chairpersons
S4 strategises:
System 4
intelligence and strategy
Provincial
development
CEOs
Advisory Sponsors, S3 resources and supports

System 3 the carrying out of purpose
groups media, etc. S3* S2 engages in operational
Partners planning and control, policy
development
S3* informal audit-like intelligence

Local gathering
environment
S2 informal and formal
co-ordination
Players
<< International rugby
<< Provincial rugby

Coaches
<< Community and junior
rugby
S1 operations
FIGURE 7.5b <,1\}i>ViVi>`Viiqi}>>
provide an environment in which S1 units would take initiative, make decisions and act
expeditiously in the interests of the sport guided by a strong sense of S5 identity and
purpose and a policy framework.
The restructuring provided the NZRFU with an opportunity to improve communica-
tions and enhance relationships with grassroots members and Provincial Unions. Com-
munications and communication channels were developed around regular meetings
between the Board and Provincial Union chairpersons and increased visits of the CEO
and Board to Provincial Unions. These meetings provided opportunities to exchange
ideas informally, to dissolve feelings of them and us and to alert the NZRFU about
developing emergencies, i.e. to act as an algedonic channel conveying timely information
about emerging issues of concern before they became sores.
In VSM terms, such communications strengthened the operation of multiple systems.
They strengthened S4 intelligence and informed the strategy development function, pro-
vided an improved yet substantially informal S3* monitoring/audit function and
enhanced S2 coordination. These communications characterise organisations that can
remain informed about and in tune with developments in their environment; better
serve their purpose by meeting the needs of stakeholders in a planned and coordinated
fashion; and channel information to the right people at the right time without increasing
bureaucracy and formality.
>>}}}>>>iv>Vi 107
Meta-system
S5 decides:
System 5 identity, purpose, vision
Provincial mission, values
IRB
chairpersons
S4 strategises:
gathers intelligence and
Provincial System 4
engages in strategy
CEOs
development
Advisory Sponsors,
groups media, etc. System 3 S3 resources and supports
S3* S2
the carrying out of purpose
Partners engages in financial and
operational planning and control
Local S3* informal audit-like monitoring

environment and intelligence gathering
S2 informal and formal

coordination
Players
<< International rugby
<< Provincial rugby

Coaches
<< Junior rugby
S1 operations
S1 operations S1 units deliver on purpose
FIGURE 7.5c <,1\}i>ViVi>`Viiqi}>>
CASE EXAMPLE 5: HIGH PERFORMANCE SPORT A

CASE OF SYSTEMIC COMMUNICATION AND CONTROL
The nal case scenario considers the management of High Performance Sport, a notional
organisation perceived as a unit nested within the wider system of Sport New Zealand
(Sport NZ). In contrast to the previous case studies, the focus here is on communica-
tions within the system and how they inuence organisational control. Beer (1981)
observed that organisational performance is inuenced by both organisational structure
and information ows. He stated (1981, p. 155) that: Beyond these structural con-
siderations we need to consider the effectiveness of the information ows and particu-
larly the nature of the lters and the relative time lags around the separate organizational
loops. The importance of communications within the VSM, indicated by lines in the
VSM diagrams, cannot be overstated. The effectiveness of subsystems, and the organisa-
tion as a whole, depends on the communications between interacting components of the
system. The information being passed from one element to another must be accurate,
complete and timely, and understood by the recipient. This observation applies to both
soft information such as ethos and values, and hard information such as performance
reports.
The VSM can guide assessments of information ows and their likely impact on
organisational performance. Organisational goals and purposes are more likely to be
achieved when communications facilitate requisite variety (see Table 7.1). Appropriately
designed information ows enable managers to match their information processing
capability to their information processing needs and to respond appropriately to chang-

ing conditions (Beer, 1979, 1981, 1985).
Whereas the NZRFU case focused on governance processes, this discussion focuses on
key information exchanges underpinning operational control (in contrast to strategic
control3). These communications include information to establish resourcing arrange-
ments and accountability requirements, to coordinate the operation of S1 units and to
monitor specic aspects of operations on an ad hoc basis. Each type of information ow
is handled by a dedicated channel, labelled A to D in Figures 7.6a and 7.6b. The design
of these information ows inuences how operations are managed, how subsystem func-
tions are executed and how readily performance targets are achieved. The case scenario
considers the notional High Performance Sport (HPS) system presented in Figure 7.6a.
The system depicted in Figure 7.6a comprises three nested systems illustrating the VSM
notions of embeddedness and recursion. The system in focus (SIF) is HPS, a system
responsible for producing NZ athletes who can win medals in elite competition. HPS is
both an embedded S1 unit of the broader Sport NZ system and a viable system in its own
right. Enlarging HPS reveals its viable structure with Targeted and Campaign National
Sport Organisations (NSOs) as the embedded S1 units. HPS provides different types of
resources to NSOs including funding, specialist expertise and administrative support.
The information exchanges between operational units and the Meta-System enable
HPS to keep the system in control and moving towards its goals and targets. We note
that the more challenging the goals, and the more uncertain the process for producing
winning athletes, the greater the need to allow managers to respond exibly to changing
conditions. That is, the information being exchanged must support managers efforts to
establish requisite variety. The following discussion considers how information exchanges
between HPS and NSOs impact managers requisite variety and thereby the perform-
ance of the HPS system. Each information exchange between the Meta-System and S1 is
discussed in turn.
Resourcing (A) and Accountability (B): The resourcing and accountability agreement
between HPS and NSOs is detailed in performance and investment schedules, covering
one Olympic funding cycle from summer Olympics to summer Olympics. The schedule
details the resources that HPS will provide including nancial resources to cover core
operating expenses and athlete performance support (APS) resources to provide exper-
tise in areas such as physiotherapy, nutrition and strength and conditioning training. It
also species the reporting and performance requirements for NSOs. Key performance
indicators (KPIs) may include medals, podium nishes and rankings as well as pro-
gramme KPIs drawn from each sports strategic plan, for example, coaching develop-
ment or participation in international competitions. HPSs approach to resource
provision is not formulaic and does not set spending limits for specic areas such as
coaching, competitions or support services.
NSOs regularly report their nancial and KPI performance to HPS. Quarterly nan-
cial reports summarise expenditures by major expense categories (e.g. core, APS, coach-
ing and athlete development) compared to budgeted amounts. Annual performance
reviews (APR) focus on whether sports are on track to deliver the expected Olympic
performances rather than on achievement of annual targets. During the APR process,
NSOs are asked to reect on the current years performance, identify new learnings and
specify activities that will be maintained, introduced and halted.
Sport NZ
System 5
F System 4 F
High performance sport E E

System 3
System 5 S2
Targeted NSO-1
F System 4 F D A B C
S5
E E
F F System 3
S4 S2 High performance sport
E E
S3 S2 D A B C
D A B C Targeted NSOs (14)
Community sport
Targeted NSOs (7)
S1 operations implement S1 operations implement and deliver on purpose S1 operations implement and deliver on purpose
and deliver on purpose
FIGURE 7.6a /i6-iii>v>>}iv>Vii>>ivii`}>>>i

Environment
Meta-system
System 5 S5 identity and purposing functions, via
8!#/"1%".%
S4 strategising functions, via

F System 4 F 8".%!#/"1d
Future 8&.&1",-"."(&12".%23"+eholder
environment
E E S3 resourcing and support functions
System 3 for the S1 units, via
S3* S2
83),&3&Performance Support
Local/
(APS) staff
immediate
D A B C 8,"..*.(400/1t Staff (PSS)
environment
S3* monitoring manifests as:
APS on site 81&2/41$&s
Targeted NSOs (14) 831"3&(*$0,".
Targeted 8*.".$*",1&2/41$&s
sport 81&2/41$&s
disciplines 8"$$/4.3"#*,*37
8..4",1&view of
investment plan
Campaign 84"1terly and annual
sport financial reports
disciplines
S2 coordination functions
Campaign NSOs (7) manifest in policy guidance, via
831"3&(*$.vestment
Planning Process
8..4",&view Process
80/1t Selection criteria
S1 operations implement and deliver on purpose
FIGURE 7.6b *-\iVvVV>>`V
The information ows underpinning HPS resourcing and accountability processes

increase the systems overall ability to respond to uncertainties impacting goal achieve-
ment. NSOs are able to deviate from the agreed investment schedule during the year as
circumstances change. They can reallocate resources from one use to another without
having to renegotiate with HPS (although they are expected to keep it informed about
material changes). Accountability reports summarised by major expenditure categories
provide more exibility than those requiring line item reporting. The annual review
process encourages NSOs to continually learn, improve and dynamically adjust activities
and programmes to maintain progress towards Olympic performance goals. Further-
more, summarised accountability reports reduce the cognitive load on HPS managers,
ensuring they are not overloaded with detail yet are sufciently informed to determine
whether nancial and KPI performance is on track.
Audit (D): HPS can enhance its understanding of the factors impacting NSO perform-
ance by seeking more detailed information directly from S1 units on an ad hoc basis.
This information supplements and extends routinely reported performance information.
According to HPS, it has developed lines of sight into NSO operations through its
intimate partnership with them. There are regular interactions between HPS staff, par-
ticularly APS staff or performance consultants, and their counterparts in NSOs. These
interactions allow HPS managers to understand what is actually happening inside sport
organisations and reduce the risk of being misled by NSOs claiming that everything is
under control and on track when the reality is something different. The information
>>}}}>>>iv>Vi 111
gathered via monitoring processes enhances HPSs ability to identify issues that need to
be addressed to ensure goals are achieved. Finally, the informal way HPS staff gather this
information does not increase the reporting burden for NSOs.
Coordination (C): HPS is responsible for facilitating the smooth functioning of the
group of NSOs comprising S1. While NSOs typically operate independently, they none-
theless compete for resources from HPS and expect their resourcing requests to be
treated equitably. HPS uses the performance and investment schedule as a standardised
approach for requesting resources and applies similar criteria for assessing these requests.
The standard procedures limit the likelihood that any one NSO can dominate the
process to the detriment of other sport bodies. Clear and standardised procedures allow
NSO managers to identify and access the resources they need and protect HPS managers
from continuous requests for resources, presented in different formats, and supported by
different types of information.
SUMMARY
/V>i>ì>i`]}iivV>iVi>]i6-V>Li>i`
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has argued that the success of sport organisations need not be based on the competitive success
of their teams; it can be assessed in terms of their sustainability or viability, the systemic balance
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internal politics and provide a common language for open discussion of organisational
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REVIEW QUESTIONS
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Who are we as an Process

organisation? What do
we want to achieve?
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CHAPTER 8
Strategic management in
non-prot sport
Ian OBoyle
Chapter objectives
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Key Terms: Chief Executive Ofcer (CEO); Board; Mission Statement; Vision Statement
INTRODUCTION
Undertaking the strategic planning process is arguably the number one role of the board
within any organisation. Leading the strategic planning process is often done in collabo-
ration with the Chief Executive Ofcer (CEO) and other senior staff but as the boards
role is primarily concerned with the long-term or strategic outlook for an organisation,
ultimate responsibility must inevitably rest with these individuals. In its simplest terms,
a strategic plan is a written document that outlines detailed information about an organ-
isation and provides some direction for how the organisation may evolve in the future. It
summarises the practical elements of the planning process and condenses this informa-
tion into a digestible format to help provide the aforementioned direction for the organ-
isation and indeed what steps must be taken to achieve progress towards the stated
direction.
There are a number of common elements to almost all strategic plans that are seen
as essential to ensure the plan is designed in the best possible manner and allow the
organisation the potential to achieve objectives and goals that may be contained
therein. It would be rare to come across a strategic plan that does not contain a
Strategic management in non-prot sport 117
mission statement as a core building block upon which the plan has been developed.
A mission statement is an articulation of the main purpose of an organisation why
the organisation exists, what do they do, who do they do it for. An effective mission
statement should guide the actions of the individuals associated with the organisation,
spell out its overall objective and allude to a path of how this objective is to be
achieved. In essence, a mission statement provides a framework within which the
organisations actions are formulated.
A mission statement is not to be confused with a vision statement. While a mission
statement provides details for the core reason for existing, the vision statement is an
articulation of where the organisation sees itself in the future, often within a stated time
frame. The stated time frame aspect of vision statements are often seen as important
because in their absence, there is ultimately a lack of accountability and perhaps a lack
of impetus to ensure that the vison of the organisation will be achieved at a given time
point. An example of a vision statement that contains a stated time frame is seen in the
strategic plan of Cricket Australia, the national sporting organisation responsible for gov-
erning and managing all aspects of cricket within Australia. The vision statement reads:
To be Australias favourite sport A sport for all Australians. To achieve this

vision, the strategy contains both short-term targets and long-term aspirations.
In the short-term (by 2017), cricket aims to be number one in the country for:
viewership; fan passion; participation; team success; unied sport. In the longer
terms, cricket aspires to be number one in the country for: share of all sport
media voice; attendance; investment in the game.
(Cricket Australia, 2015)
STRATEGIC PLANNING IN SPORT ORGANISATIONS
Sport organisations, depending on their type and operating environment, will have
various goals and objectives that they wish to achieve. Increasing participation and mem-
bership numbers, attracting additional revenue streams, seeking out and retaining a
strong volunteer base, developing coaches and ofcials, achieving high performance
results and maintaining good governance and nancial management standards are all
examples of some of the objectives that these types of organisation may have. Sport
organisations at the community or grassroots level may or may not have a strategic plan
that guides the entity and this will often depend upon the level of expertise and experi-
ence that those running the organisation may have. As we move up the chain to larger
organisations at regional, state and national levels it would be extremely rare for any of
these bodies to be operating without the guidance of a detailed strategic plan, especially
where an organisation has paid employees and a recognised board of directors. Indeed,
taking Australia as an example, all national sporting organisations are required to submit
their strategic plans to the Australian Sport Commission, which is the government
agency that provides signicant funding to these entities and without such funding,
many of these entities would struggle to full their mission. This situation is replicated
in a number of other nations with similar sport systems such as Ireland, the United
Kingdom, New Zealand and Canada.
118 Ian OBoyle
Much like the strategic planning process within traditional organisations, the process
can help sport organisations to understand their unique point of difference and the distinc-
tive competencies they may have in comparison to their competitors. The sporting industry
is a fast-paced and highly competitive environment and as such an organisation should
develop a strategic plan that is designed to be implemented over a 24 year time frame.
Furthermore, as changes in the internal and external operating environment will inevitably
occur throughout the life of the strategic plan, it should be a living document that is ex-
ible enough to adapt to these changes without changing the entire direction or overall
objectives that are imbedded within the plan itself. Within the sporting environment spe-
cically, strategic plans should be re-evaluated and updated as necessary to ensure they
remain relevant to the current context within which the organisation nds itself.
ACADEMIC RESEARCH AND STRATEGIC PLANNING

IN SPORT
A wide consensus now exits that strategic management should be considered as

the on-going organiser of the necessary alignment between the requirements of
the environment and the capacities of the enterprise.
(Martinet, 1984, p. 1)
Within sport management research there is somewhat of a dearth of studies that afford
attention to the areas of strategic planning in the sport management industry. However,
research has been conducted examining the issue of strategic management within the
non-prot sector in general, which clearly the majority of sport organisations also belong
to. Sport organisations and other non-prots are predominantly concerned with the
effective delivery of their mission. These organisations can often end up earning a prot
at year end, but these extra nances must be reinvested within the organisation in order
for them to retain their non-prot status. Non-prot sport organisations constitute the
majority of organisations involved in local, regional and even national and international
sport through amateur leagues and national sport organisations. These entities can take
the form of associations, foundations, cooperatives, trusts, societies and even corpora-
tions and companies (Kotler & Andreasen, 1991).
Nutt and Backoff (1992) stress the importance of strategy in the public and non-
prot sectors due to turbulent conditions that were forcing change (p. 2). Joyce (2000)
states the formal system of strategic management in the public sector has emerged . . .
and is based on strategic planning principles (p. 3). Before the 1990s, the term strategy
was absent from the language of many boardrooms within non-prot sport organisations,
and if these entities wished to succeed in an increasingly competitive environment, they
could no longer ignore the concept of strategic management in order to adapt to the
evolution of sport and how it is currently practised.
Literature related to strategic management has the common theme running through
it that strategic management in non-prot organisations is different from that in the
commercial sector (Nutt & Backoff, 1992). It is argued that a primary cause of the dif-
ference between these two sectors is that non-prot organisations have a much higher
degree of public responsibility in contrast to traditional commercial organisations. Due
to the impact and signicance of sport on society (see Chapter 2), it is imperative that
the issues of accountability and legitimacy are high on the agenda of senior management
within sport organisations. They must exercise concern regarding their many stake-
holders while traditional businesses can place clients and shareholders as their highest
priority, since their main goal is to achieve prots. Non-prot sport organisations must
also operate with a satisfactory degree of efciency and effectiveness (performance) in
relation to their various stakeholders. A large amount of volunteerism exists within the
non-prot sector, and elected board members often form part of this, who, in principle,
decide on the strategy to be followed, as noted earlier. Adding to the complexities of the
volunteerprofessional staff relationship, their motivations and opinions may be different
from those of the salaried managers who are responsible for carrying out the strategy
(Chappelet & Bayle, 2005).
Even though there are clear differences in strategic management between sport organ-
isations and commercial entities it does not necessarily prevent the application of the
concepts and tools of strategic management from the commercial sector being adopted
within the non-prot sport environment. It does, however, require a high calibre board
and management team, who can take the major differences into account and ensure that
the application of these practices would not be counterproductive to the overall object-
ives of the organisation.
Given the evolution of professionalised sport management and the pressure on these
bodies to deliver specic outcomes just like a commercial entity, the differences between
strategic management within non-prots and for-prots are becoming minimal. Liter-
ature relating to strategic management has different views on how the strategic manage-
ment process should be designed (Goodstein, Nolan & Pfeiffer, 1992; Kotler &
Andreasen, 1991; Nutt & Backoff, 1992; Oster, 1995; Slack, 1997). Most authors
propose sequential or cyclical models of the process based on stages, phases or tasks.
They are often very similar in theory, and simply vary slightly in relation to the nature of
the stages or the order in which they are presented (see Table 8.1).
Chappelet and Bayle (2005) propose a simple pragmatic model to be used within
sport organisations, directly inspired by original ideas on designing strategy practised
during the 1970s at Harvard Business School. It is based on four questions that are
placed within a cyclical model (see Figure 8.1).
The authors suggest that for each of these questions, there is a corresponding answer
that must be supplied by those who wish to carry out strategic management:
s 3TEP!NALYSIS7HEREAREWENOWn%XTERNALANDINTERNALANALYSIS
s 3TEP6ISION7HEREDOWEWANTTOBEn.EWVISIONMISSIONANDOBJECTIVES
s 3TEP!CTION(OWDOWEGETTHEREn3TRATEGIESANDTACTICS
s 3TEP#ONTROL!REWEGETTINGTHEREn"ENCHMARKSANDINDICATORS
THE FORMATION OF A STRATEGIC PLAN
During the formation of a strategic plan, it is important to gain an insight into the expec-
tations of stakeholders to ensure their needs are catered for within the impending
strategy. Along with Chappelet and Bayles (2005) cyclical model, the authors also
120 Ian OBoyle
ANALYSIS VISION
Where are Where do we
we now? want to be?
CONTROL ACTION
Are we getting How do we get
there? there?
FIGURE 8.1 Cyclical model for strategic management (adapted from Chappelet & Bayle, 2005)
present nine steps to be followed to ensure all stakeholders (internal and external) of a
sport organisation can be involved in the development of the strategic plan:
1 Board agrees on the strategic management process;

2 Board prepares strategic review statement;
3 Stakeholder expectations are assessed;
4 Board prepares draft strategic plan;
5 Draft plan is circulated to stakeholders for feedback;
6 Board raties strategic plan;
7 Budgeting is carried out to align with strategic objectives;
8 Strategic plan is circulated throughout the organisation (and externally);
9 Objectives are systemically monitored and evaluated (performance management
practices).
The minimum amount of time the board and the CEO should allow for the strategic
planning process to evolve should be set at no less than 12 months. Larger and more
complex sport organisations may require more time than this. Within the purest form of
organisational theory, management are responsible for delivering on the elements of the
strategic plan that will allow the organisation to achieve its objectives. However, it is also
arguably imperative that management are involved in the strategic planning process itself
also (not just the board) as they will have intimate knowledge of a number of issues that
will impact the goals and objectives laid out in the strategy. Their feedback in the plan-
ning stage may prove to be invaluable.
Along with engagement with the management staff within the organisation, it is also
crucial that the board consult with a wide range of other stakeholders such as athletes,
coaches, parents, sponsors and funding agencies when undertaking the strategic planning
process. This allows each stakeholder group a voice in the process and caters for their
views and opinions to be incorporated into the future agenda for the organisation. This
consultation could be undertaken through face to face meetings, via telephone or
perhaps most conveniently through online surveys via social media or the organisations
website.
TABLE 8.1 Strategic management design processes
Author(s) Design Process
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Consultation and engagement with the various stakeholder groups is clearly an

integral component of an effective strategic planning process. This should be comple-
mented by a signicant level of desk based research such as analysing and perhaps alter-
ing the mission and vision of the organisation to ensure they remain relevant to the
current operating environment and the direction of the organisation in a modern sport-
ing environment. It is also imperative that the actual capabilities of the organisation are
examined to ensure that goals and objectives are not overly ambitious and that they have
the real potential to be achieved within the life of the plan.
122 Ian OBoyle
The level of funding and the various revenue streams the organisation have will
clearly either facilitate or inhibit the reality of achieving the objectives as set out in the
strategic plan. Likewise, the physical resources available and the number of players,
coaches, ofcials and volunteers will all impact on these goals. All variables such as the
above must be scrutinised to ensure that the objectives of the organisation are realistic,
otherwise the strategic planning process may serve little purpose as overly ambitious or
unrealistic goals will ultimately lead to demotivation and frustration within the organisa-
tion and its various stakeholder groups. Perhaps the best way of conducting this desk
based research is to conduct a SWOT analysis.
THE SWOT ANALYSIS
Before developing the strategic plan the board needs to know where the organisation
sits within its internal operating environment and indeed why and how it nds itself in
its current positon. The best way to get a clear picture of the internal operating
environment of the organisation is to carry out a SWOT analysis. SWOT stands for
Strengths, Weaknesses, Opportunities and Threats. By using the SWOT analysis
organisations can identify where they stand in the market and from that point go
forward and make future plans based on current knowledge. Working through this
process will give a clearer idea of:
s WHATITISTHATTHEORGANISATIONDOESWELLANDWHATITNEEDSTOIMPROVEONSTRENGTHS
and opportunities);
s WHERETHEORGANISATIONHASCOMPETITIONTHATCANBEDEFENDEDSTRENGTHSANDTHREATS
s WHERETHEORGANISATIONNEEDSTOCHANGETOPROTECTITSELFFROMOUTSIDEINmUENCESWEAK-
nesses and threats);
s WHERETHEORGANISATIONNEEDSTOANALYSEITSPRIORITIESWEAKNESSESANDOPPORTUNITIES
Strengths
When analysing strengths, the organisation must concentrate on itself (not other organi-
sations or threats) and its ability to achieve the outcomes it wants. Examples of strengths
may include:
s STRONGlNANCIALBASE
s GROWTHAREAFORTHESPORT
s GROUPOFSKILLEDVOLUNTEERS
s SUPPORTlNANCIALOROTHERWISEFROMLOCALORNATIONALPOLITICIANS
s WELL EQUIPPEDFACILITIES
s GOODGOVERNANCEPRACTICES
Weaknesses
Weaknesses often appear as the direct opposite of the strengths listed above and may
include:
s WEAKlNANCIALBASE
s DIMINISHINGDESIREOFPARTICIPANTS
s FEWVOLUNTEERS
s NOPOLITICALORCORPORATESUPPORT
s POORFACILITIES
s LACKOFMEDIAEXPOSURE
s POORGOVERNANCESTRUCTURES
Opportunities
Opportunities refer to the possibilities of new growth because of the changes in the
external environment and can include such things as:
s GRANTSBYLOCALAUTHORITIESTOENCOURAGESPORT
s ORGANISATIONSLOOKINGTOSPONSORACTIVITIESEVENTSTEAMS
s PROMOTIONOFSPORTTODIFFERENTAGEGROUPEGLAWNBOWLSTOTEENAGERS
s PROMOTIONOFSPORTTODIFFERENTGENDEREGNETBALLTOMEN
s RESTRUCTURINGOFGOVERNANCEMANAGEMENTCOMMITTEES
Threats
In line with strengths and weaknesses, the threats are often very similar to the opportun-
ities. Examples of threats include:
s SPONSORSNOTRENEWINGCONTRACTS
s SEDENTARYLIFESTYLES
s COMPETITIONFORVOLUNTEERSTIMEnLONGERWORKINGHOURSBOTHPARENTSWORKING
s OTHERORGANISATIONSSPORTSWITHBETTERFACILITIES
s LACKOFKNOWLEDGEANDINTERESTINYOURSPORTFROMGENERALPUBLIC
MAKING PROGRESS TOWARDS STRATEGIC GOALS
Once a strategic plan has been developed and agreed upon by the board and CEO it is
time to go about implementing it. A strategic plan serves little purpose if it is developed
then sits in a le on a computer or a desk in an ofce without actually being utilised to
guide decision making and the actions of the organisation. In this regard, it is important
to circulate the strategy to all stakeholders associated with the organisation. This can be
done through hard copy format but in order to make the plan as accessible as possible it
should be available for download on the organisations website and promoted through
the organisations social media platforms.
The major task for the CEO and management staff once a strategy has been
developed is to make progress towards achieving the agreed upon goals and objectives
contained within it. At this point the strategic planning process somewhat merges into
organisational performance management where specic tools, systems and practices can
be adopted to ensure strategic imperatives are being met or have the potential to be met
124 Ian OBoyle
(OBoyle, 2012a, 2014, 2015; OBoyle & Hassan, 2014, 2015). If the plan has been
developed correctly and has followed best practice, each major objective should have
associated processes and actions documented to provide a path of action as to how these
objectives will be achieved. Nonetheless, these processes will require acute ongoing
management.
The concept of organisational performance management is a relatively new concept
in the world of non-prot sport but as the sector comes to grip with a more profession-
alised and commercialised environment, we are beginning to see more and more entities
adopt such practices and realise the benet these systems have for strategic
management.
The most popular tool utilised to ensure strategic goals are being achieved has gener-
ally been the adoption or adaptation of a system known as the Balanced Scorecard.
Kaplan and Norton (1992) developed this performance management tool, which has
been used as an effective strategic planning and management tool by many organisations
and across varied industries. It has provided senior management and the board with an
effective way of monitoring actions and processes undertaken by employees and allowed
them to keep a record of these actions and consequences in an efcient and dened
manner. The Balanced Scorecard is perceived to be the most widely used of the various
performance management tools that have become available and although initially only
adopted in mostly Western countries, it has now spread throughout the global business
environment. Since 2000, use of the Balanced Scorecard and its derivatives such as the
Performance Prism (Neely, Adams & Kennerley, 2002) has become commonplace in
organisations throughout the world. Kurtzman (1997) claims that almost 70% of com-
panies responding to a questionnaire were measuring organisational performance in a
way that was extremely similar to that of the Balanced Scorecard. This method of organ-
isational performance management has been implemented by government institutions,
small businesses and corporations, and has started to be adopted within the non-prot
sport sector.
Standardised Balanced Scorecards (working from a common template) are easily
accessible for organisations and can have a potentially positive impact on many organi-
sations. However, using one organisations Balanced Scorecard and attempting to
apply it to another organisation can prove problematic and research has suggested that
one of the major benets of the Scorecard lies within the design process itself (Kurtz-
man, 1997). If the strategic planning process has been conducted correctly, much of
the design process for a bespoke Balanced Scorecard will already have been completed
through the identication of the necessary processes and actions required to achieve
strategic imperatives.
The unique aspect of the Balanced Scorecard, which was originally seen as a radically
new development in the measurement initiatives adopted by organisations, was that it
combined nancial and non-nancial aspects of organisations to give a more detailed
view of how the organisation was actually performing within its operating environment.
In addition, utility and clarity were further enhanced as Kaplan and Norton suggested
measures within an organisation should be condensed and grouped together so they
could be easily displayed within a simple four box model (Kaplan & Norton, 1992). It
became clear that selection of measures, relating to both the ltering and clustering
process, would prove to be the integral activity that management must address in the
implementation of this system. The measures to be selected, according to Kaplan and

Norton, should be synonymous with issues and initiatives that are relevant within the
organisations strategic plan and a simple process of requiring information concerning
attitudinal issues would determine which measures should be associated with each per-
spective (Kaplan & Norton, 1992).
As noted above, Kaplan and Nortons (1992) initial design was laid out as a simple
four box model that could help organisations ensure they were getting the best
results out of all the resources available to them. The model suggested that nancial
measures should not be the only perspective to be analysed. They proposed three
other perspectives along with the traditional nancial one: Internal Business Process,
Learning and Growth, and the Customer were also selected to form the major con-
cerns within an organisation. Research surrounding Balanced Scorecards is vast and
some authors have suggested the renaming of these perspectives along with the addi-
tion of further perspectives within the model. This may have particular importance
for the adoption of the tool within non-prot sport organisations as these entities can
often have comparatively different performance dimensions to those operating within
a traditional prot-driven business environment. These arguments have become appar-
ent as a result of recognition that dissimilar but equivalent perspectives would poten-
tially give rise to a different set of measures. A crucial element of the adoption of this
model is that users have condence around the aspects chosen to be measured and
that they are relevant, otherwise results achieved may be regarded as being
insignicant.
The case study involving Rowing New South Wales is a perfect example of how the
organisation has developed its own bespoke Balanced Scorecard type measurement
tool to track and help achieve key objectives contained within the organisations
strategic plan.
Case Study: the Strategic Framework for Rowing New

South Wales
Strategic Plan 20132017
Introduction
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126 Ian OBoyle
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Platform Metric Target Monitor
1 State ranking at interstate 1 Highest ranked state on the RA Cup point score. 1 Annually at the
competition Maintain three gold medals at the Interstate conclusion
2 Percentage of NSW Regatta. Highest rank Youth Cup. of Nationals
Performance representatives in AUS team 2 U19 (25% athletes and 40% coaches), U23 (25% 2 At the announcement
3 Per capita performance at athletes and 40% coaches), and Senior A (30% of the Australian team
22.5% Australian Rowing athletes and 25% coaches) 3 Annually at the
Championships 3 5% improvement in point score analysis of NSW conclusion of
Club and school results at Aust. Champs (5pts 1st; Nationals
3pts 2nd; 2pts 3rd; 1pt A finalists) % of NSW
athletes for composite crews
1 Number of competitive 1 5,500 members of Rowing NSW 1 Monthly CEO report

members 2 72 Regatta conducted; 50,000 raced and 19,000 2 Monthly CEO report
Participation 2 Seats raced entries received 3 Monthly
3 Rowing NSW membership 3 500 supporting, Recreational and Official members 4 Annually
22.5% mix 4 Equal numbers men/women competing
4 Gender equality in 1930 1930 years
comp?
1 Growth within existing 1 5% increase participation from U1926 Year on 1 Annually

competition classes at RNSW Year for 4 years 2 Monthly CEO report
Regatta and Regattas 2 State Championships, Reindeer Regatta, Schoolboy 3 Monthly CEO report
competition 2 Conduct of Marquee regattas and Schoolgirl head of the River, Riverview Gold 4 Quarterly CEO report
3 Add non-elite U21 big boats Cup
25% 4 Increased number of 3 Introduce U21 Comp 6 Regattas 20132014
accredited BRO and available season
volunteers 4 100 accredited and active NSW BROs
1 Mainstream media mentions 1 6 major news articles relating to NSW events. 20 1 Monitoring monthly,
and press relations local paper articles report quarterly
Promotion 2 RNSW comms outbout and 2 75% member satisfaction with communications from 2 Survey quarterly
effectiveness surveys conducted 3 Monitor monthly
3 Number of members receipt 3 2,500 e-news and 2,500 Facebook friends, 600 4 Annually
15%
of comms Twitter followers
4 Number attendees at target 4 Presentation Awards (200), Support the Crew (350),
social functions KC&QC Luncheon (280), media event
1 Gross turnover, surplus and 1 Inc: $1,010,000. Exp: $985,000 ($25,000 surplus) 1 Annually
Rowing reserves 2 Four camps conducted (Schoolboy, Schoolgirl and 2 Monthly quarterly
NSW 2 Club development 2 Masters) 3 Annually
3 Non-competitive revenue 3 $850,000 4 Survey each regatta
15% generated 4 75% member satisfaction from surveys conducted
4 Member satisfaction rating
FIGURE 8.2 ,} -7ViV>`vq{

ROLE OF THE INDIVIDUAL IN ACHIEVING STRATEGIC

OBJECTIVES
We often hear the clich that an organisations most valuable resources are the people
within it. In terms of strategic planning and management this is certainly the case. It is
the people who work within the organisation that will develop the processes and lead
the actions that will enable the organisation to achieve its strategic vision and mission. It
is therefore of utmost importance that suitable systems of individual performance man-
agement are in place to ensure that the actions of employees are indeed contributing to
overall strategic objectives (OBoyle, 2012b, 2013a, 2013b; OBoyle & Cummins, 2013;
OBoyle & Hassan, 2013). Ensuring that employees are motivated and can see how their
own work contributes to these wider organisational goals is arguably a crucial role for
management but also a difcult one to achieve. The term line of sight has commonly
been used as a method of allowing individual employees to visualise this process in
action.
Line of sight requires clear linkages between individual job descriptions, operational
plans and strategic plans. This may be of particular importance for sport organisations
where the roles of individual employees can often be varied. The question remains,
however, how can management ensure that individual roles and the actions of employees
AREINLINEWITHBROADERSTRATEGICINITIATIVES
Conducting regular performance appraisal meetings is arguably the most effective
way to ensure that this is the case. During these meetings, key performance indicators
for individual employees can be discussed along with future objectives and a plan of how
these will be achieved. The identication of training or development needs can also be
conducted at this time, which inevitably can assist the organisation to achieve strategic
imperatives, highly qualied and experienced employees, allowing the organisation to
achieve strategic imperatives in the most efcient and effective manner.
Performance appraisal meetings in the traditional sense normally occur between an
individual employee and their line manager. The norm for these appraisals would be at
one-year intervals but many organisations are seeing the value of conducting these meet-
ings every six months. The volume of employees reporting to a single manager within an
organisation will obviously impact on the ability to conduct appraisals at higher or lower
frequencies. Given that the majority of sport organisations, particularly those within the
non-prot sector, employ far fewer individuals in comparison to their corporate counter-
parts, it is not unreasonable to suggest that performance appraisal meetings could be
conducted at six-month intervals in these entities. This would certainly allow manage-
ment to ensure that roles and actions at the individual level are feeding directly into
operational and therefore strategic plans.
Performance based pay is far from the norm in non-prot sport organisations but
senior management including CEOs can often have these types of rewards built into
their contracts. Although there is much debate on the effectiveness of these rewards,
they certainly provide some accountability to ensure that senior management are making
progress towards the organisations strategic vision. These rewards will of course be
granted or denied following each eligible employees own performance appraisal meeting
with their relevant manager or, in the case of the CEO, the board.
128 Ian OBoyle
Conducting performance appraisals for employees certainly has many benets in

terms of monitoring performance and making progress towards a strategic vision.
However, somewhat unique to the non-prot sporting environment is the level of volun-
teerism in the industry and the reliance on volunteers to contribute towards the achieve-
ment of strategic objectives. It is very difcult if not impossible to conduct a traditional
performance appraisal of a volunteer as there is little leverage to work with in terms of
their non-remunerated status. However, as above, the more experienced, qualied and
skilled volunteers are, the more potential they have to actively make a major contribu-
tion to the objectives set out in the strategy. It is therefore important to assess the train-
ing and development needs of key volunteer positions in the organisation (including
board members) and invest in their development accordingly.
SUMMARY
Strategic planning is a key process in the functioning of all contemporary sport organisations
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REFERENCES
>ii] E >i] x Strategic and performance management of Olympic sport organisa-

tions
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Vi>>xStrategy for Australian cricket6V>\

ì]] >/E*vivviApplied strategic planning: An introduction->>VV]

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Vi]*Strategy in the public sector
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ii]]`>]
Eiii]The Performance Prism`\>V>/i]*i-
Vi>
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E >Vvv],7Strategic management of public and third sector organisations->
>VV]
\i >
" i] > The identication and management of fundamental performance dimensions in
national level non-prot sport management*i]1iv1i
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Sport business management in New Zealand and Australia q iLi\
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Management and Business Application, 2]q
" i] L />`> iv>Vi >>> i ì}ii vii`L>V Training & Man-
agement Development Methods, 27]qn
" i] { ii} Li >VVi iv>Vi } >` i>> v
V>Vi\ i v i >`> Li ii International Journal of Sports Science
and Coaching, 9]q{
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Sport Management Review, 18]nq
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]* >}iiv``>iv>Vi>>}iiTraining
& Management Development Methods, 27]qn
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vi*iv>Vi*Organizational Development Journal, 31]xqxn
" i]E>>]{*iv>Vi>>}ii>ì>ii>>iiw
}>>European Sport Management Quarterly, 14]q{
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>\V>i`v i>Ìnternational Journal of Sport Management, 16]q
"i]-xStrategic management for non-prot organisations: Theory and cases i9\
"v`1i*i
->V]/Understanding sport organisations
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CHAPTER 9
Managing volunteers in
grassroots sport
Tracy Taylor and Ashlee Morgan
Chapter objectives
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management.
Key Terms: Sport Volunteers; Human Resource Management; Recruitment; Retention;

Motivation
INTRODUCTION
Grassroots sport (or community sport) is typically viewed as having a range of positive
outcomes for its participants; not only beneting those who actively take part in the
sport itself, but also creating benets for those involved in the delivery of the sporting
experience (e.g. coaches, referees, volunteers). The positive traits, functions and out-
comes attributed to both active participation in sport and involvement in its delivery
have increasingly been the focus of state and national government policy. Sport is seen as
a means of addressing a broad array of social issues and policy challenges (Bloyce &
Smith, 2010; Coakley, 2011; Coalter, 2007, 2008; Hylton & Totten, 2008). While some
researchers (e.g. Coalter, 2015; Nicholls, Giles & Sethna, 2011) have questioned the role
of sport in creating positive change in personal and community development, many
Western governments continue to expound the belief that sport has a crucial role to play
in building an effective society and collaborative communities. Providing these positive
sporting opportunities to all members of the community requires a sport delivery system
that is functional and adequately resourced. Typically, volunteers provide the resources
required to support local sport organisations.
>>}}ii}> 131
It is acknowledged here that the way sport is delivered varies signicantly between
countries, depending on the nations sport structure. Within most systems, local sport
organisations consist of a mixture of three main types of providers: the voluntary or
civic sector, the public or state sector and the commercial or market sector (Vos et al.,
2012). For the purpose of this chapter, locally based sport and club sport that is
delivered by non-prot sport organisations are referred to as grassroots or community
sport. Furthermore, the emphasis in this chapter is on sport-specic organisations; that
is, organisations that have a mission to deliver one sport (e.g. tennis or football) in
contrast to multisport community enterprises (e.g. recreation and tness centres) or
associations that run sport programmes to achieve non-sport ends (e.g. community
health centres).
For most non-prot sport organisations, volunteer labour plays a signicant role in
service delivery (Cuskelly, Taylor, Hoye & Darcy, 2006; Davies, 2004; Seippel, 2002)
due to a limited nancial resource base. Volunteers not only have considerable economic
value in terms of the impact of their labour (Andreff, 2006; Breuer & Wicker, 2009;
Gratton & Taylor, 2000), but also contribute to social capital, social cohesion and the
development of organisational culture. However, increasing commercialisation and pro-
fessionalisation of the sport sector, changing work and leisure patterns, and introduction
of more and more restrictive legislation and regulations have created additional pressures
on the volunteer workforce (Cuskelly et al., 2006; Horch & Schtte, 2009; Stenling &
Fahln, 2009; Vos et al., 2012).
Additionally, many state funding bodies now expect sports to become more like busi-
nesses, which means professionalising service delivery and management to strengthen
their competitive position (Thiel & Mayer, 2009). However, a cautionary note has been
sounded, suggesting that this move to have a central focus on efciency and profession-
alisation may lead to alienation of the traditional volunteer and result in a decrease in
sport volunteers (Vos et al., 2012).
It has been argued that grassroots sport organisations often operate with insuf-
cient resources, limited paid staff and a reliance on volunteers who may or may not
have the competencies required to ensure organisational sustainability (Misener &
Doherty, 2009, 2013). The importance of appointing and retaining appropriately
qualied and paid employees is well established; however, ensuring volunteers are
competent and have the right culture t and approach to service delivery is also
critical to a clubs performance and stakeholder satisfaction (Lock, Filo, Kunkel &
Skinner, 2013). This chapter discusses human resource management considerations of
attracting, selecting, retaining and managing sport volunteers. It draws on research
based evidence and real life examples to illustrate key issues and present examples
of good practice.
For the purpose of this chapter, a sport volunteer is dened as an individual who gives
their time for the common good of sport, without nancial gain. Sport volunteering may
be in a formally constituted role within a sport organisation, such as a club manager or
board member, or it may be in less formalised roles including assisting with fund raising
for a club or helping on an ad hoc basis. Within sport there tends to be two main types
of sport volunteer, those who assist within community sport organisations at local,
regional, state or national level, and those who volunteer at one-off or annual sport
events. Both types of volunteer are discussed in this chapter.
132 Tracy Taylor and Ashlee Morgan
VOLUNTEERS IN SPORT
Community sport clubs and organisations provide recreational and competitive sport
programmes at local or grassroots level. In most Western countries volunteers are crit-
ical human resources in the governance of community sport and associated service provi-
sion. These organisations are heavily dependent on the work of volunteers for a range of
duties, including programme delivery, general administration, operational and govern-
ance and management roles (Cuskelly et al., 2006). Volunteers within community sport
organisations cover the logistics of sport provision and undertake critical nancial tasks,
such as preparing grant applications (Sotiriadou & Wicker, 2013). As pressure on volun-
teers to perform a plethora of duties increases and considering their value as providers of
community sport, volunteer management related research has gained signicant momen-
tum in the past 15 years. It is worth noting that most of the theorising about community
sport volunteer motivations has been conducted within the context of North American,
Antipodean and Western European contexts where non-prot sport delivery systems are
similarly constituted.
The importance of volunteers to community sport has seen a notable output of research
examining multifarious aspects of volunteer recruitment, management and retention.
Volunteer-dependent organisations are increasingly implementing human resource man-
agement techniques to improve their recruitment and retention of volunteer personnel.
Understanding individuals different reasons for volunteering is part of the process of
effective volunteer planning and management (Newton, Becker & Bell, 2014). Insight into
what motivates individuals to volunteer can assist with satisfying their needs and encourag-
ing ongoing commitment and dedication to the organisation.
Studies on volunteer motivations have identied a variety of reasons why people
become sport volunteers. It is recognised that understanding and identifying volunteer
types can potentially assist sport organisations and clubs in the design of their volunteer
human resource management practices, and better satisfy the needs of volunteers. For
example, Treuren (2014) examined volunteers motivation from ve event organisations in
Australia and found three distinct motivation proles. These were: enthusiasts, who enjoy
various aspects of volunteering; conscripts, who volunteer with some level of reluctance;
and instrumentalists, who volunteer in search of material benet. Furthermore, analysis of
the Australian Bureau of Statistics survey data indicated that volunteers in sport organisa-
tions reported a variety of motivations for volunteering, with the three main reasons being:
(1) to help others in the community (53% of volunteers); (2) personal satisfaction (46%);
and (3) personal or family involvement (46%) (Australian Bureau of Statistics, 2011).
New Zealand research on the motivation of volunteers and their experiences is docu-
mented in The Heart of Sport: the Experiences and Motivations of Sports Volunteers (Sport
and Recreation New Zealand, 2011). While 95% of all respondents reported that they
would recommend being a sport volunteer to other people, over one-third of all sport vol-
unteers considered quitting their main role in the 12 months prior to the survey. Issues of
time and work commitments, personality clashes, club politics and a feeling that it is time
to move on were given as the main reasons for considering leaving. Additionally, one-third
said that they would not continue volunteering if family members involved with the club
left the organisation. These data raise a number of questions regarding how sport organisa-
tions should plan for and manage their volunteer workforce.
>>}}ii}> 133
VOLUNTEERS AND HUMAN RESOURCE

MANAGEMENT PLANNING
Human resource management planning, processes and practices guide the selection and
recruitment of volunteers. It is important to understand how different human resource
management methods and approaches can be used to enhance motivation and create a
positive workplace. The approach of sport organisations to volunteer management varies
depending on the sport itself, the countrys culture and sport system, the level of access
to a pool of volunteers and a range of local factors. It is critical that host sport organisa-
tions appreciate their environmental and cultural context, are clear about the role of vol-
unteers within the organisation and understand why people volunteer.
For example, in the German context, Hallmann (2015) examined determinants of
and time committed to volunteering in sport. Hallmans main ndings indicate that men
are more likely to volunteer than women, and that human capital and the motive of
shaping society negatively inuences the decision to volunteer. However, engagement in
other voluntary positions had a positive effect on volunteering. Time committed to vol-
unteering was inuenced by: male gender, having children, meeting people, club mem-
bership, shaping society and number of voluntary engagements (Hallmann, 2015).
In a comprehensive study of the organisational capacity of Canadian community sport
clubs, Doherty, Misener and Cuskelly (2013) identied seven critical elements of human
resource management that inuence club goal achievement. These were: (1) enthusiasm
individuals passion, dedication and energy to work; (2) human capital knowledge
and experience within the club; (3) common focus regarding club values and priorities;
(4) sufcient volunteers; (5) continuity of volunteers; (6) volunteer succession; and (7)
development and support for volunteers. They concluded that for community sport
organisations, dedicated volunteers who have relevant skills or knowledge are critical to
optimising organisational performance (Doherty et al., 2013).
Community sport organisations can inherit various benets by forming relationships
with other organisations. Inter-organisational relationships provide access to resources,
knowledge, social benets and community cohesion (Misener & Doherty, 2013). Collab-
orating with other organisations and inheriting such benets can potentially ease some of
the burden placed on the volunteer workforce of the community sport sector.
VOLUNTEER RECRUITMENT
Volunteer recruitment is a signicant human resource management issue for community

sport organisations. Volunteers are often former players or have family/friends playing
within the club/organisation. Encouraging past and present players to take on volunteer
positions has been a crucial element in sustainable recruitment practices. In investigating
this issue, Cuskelly and OBrien (2013) proposed a transition-extension framework that
considers psychological and social factors that contribute to individuals transitioning
from playing sport to volunteering in sport. They provide insight into the transitioning
phase in volunteering, which is valuable for community sport organisations seeking to
retain and encourage longevity of individuals involvement within the sport. Their study
examined stalwart volunteers (those who played and volunteered for over 20 years)
within community sport organisations in Australia. They found that the sense of identity
gained through involvement with sport (predominantly within a particular organisation)
was a signicant driver for volunteers to continue volunteering. Relationships, a sense of
belonging and feeling of competence gained through feedback from others, also motiv-
ated volunteers to continue with their duties (Cuskelly & OBrien, 2013).
Schlesinger, Klenk and Nagel (2015) investigated decision making processes in the
recruitment of volunteers within nine sport clubs in Switzerland. They found that
recruitment was reactive as opposed to strategically planned, decisions were rather
supercial with limited discussion and decision making processes were determined by
key personnel involved in establishing club policy (Schlesinger et al., 2015). They con-
cluded that the success of recruitment practices is determined by the competence of the
decision makers within sport clubs.
In a study of Market Segmentation Study for Volunteers, the Australian Sports Com-
mission (2014) provides data to assist sport organisations to develop targeted and
effective volunteer recruitment and retention strategies. The research examined the atti-
tudes, motivators, needs and barriers that underpin Australians decisions to volunteer in
sport, including at club level and other types of sport-related volunteering, as compared
to other (non-sport) voluntary activities. The Australian adult population was segmented
into 10 types, based on attitudes to volunteering and current volunteering behaviour.
These were:
s (APPY (ELPERS n VOLUNTEERS WHO SUPPORT THEIR FAMILY IN THEIR ACTIVITIES BY VOLUN-
teering in club sport. These volunteers are likely to be involved in multiple activ-
ities.
s #OMMUNITY#OMMITTEDnTHESEVOLUNTEERSAREMOTIVATEDBYTHESOCIALINTERACTION
and enjoyment that volunteering offers. They have a feeling of identity and commit-
ment to a community organisation and its future.
s /PPORTUNISTS n THIS GROUP OF PERSONS VOLUNTEER TO GAIN A PERSONAL BENElT SUCH AS
practical skills or work experience. They also enjoy being part of the atmosphere of
a sporting environment, or having the chance to meet elite athletes or sporting
personalities.
s !LTRUISTSnTHESEVOLUNTEERSHAVEDESIRETOHELPOTHERSGIVEBACKTOTHECOMMUNITY
and to help the disadvantaged.
s /VERCOMMITTEDnTHESEPERSONSVOLUNTEERBECAUSETHEYFEELITISEXPECTEDOFTHEM
They often feel that they could use their time elsewhere.
s /CCUPIED/BSERVERSnTHISGROUPISNOTAVERSETOVOLUNTEERINGFORACLUBSPORTBUT
they simply have other priorities and are more likely to volunteer if their own child
is directly involved.
s 3IDELINED n PERSONS WHO ARE OPEN MINDED ABOUT VOLUNTEERING BUT INJURY LACK OF
time or other personal reasons become a barrier.
s 3ELF3ERVERSnTHISGROUPISYETTOlNDACAUSETHEYFEELPASSIONATEABOUT4HEYMAY
be motivated if they perceive a personal benet.
s 7ELL)NTENTIONEDnTHISGROUPHASNOREALREASONTOVOLUNTEERWITHINTHESPORTSECTOR
They are unlikely to be sport participants themselves.
s 5NINVOLVEDnTHISGROUPHASLITTLEINTERESTINEITHERSPORTORVOLUNTEERINGINGENERAL
>>}}ii}> 135
VOLUNTEER MANAGEMENT
Building a grassroots sport volunteer workforce, especially when sport organisations do

not have access to nancial incentives or other resource based motivations, requires con-
sideration of the use of opportunity-enhancing human resource management strategies.
The latter are designed to motivate volunteers through practices such as redesigning vol-
unteers tasks to be more empowering and enriching or to expand and extend their
knowledge and skills base.
There are numerous organisations/programmes that assist grassroots sport with
recruitment, training and retention of volunteers. For example, V Star, an initiative of
the Government of South Australia, helps sport and recreation clubs to manage vol-
unteers (www.ors.sa.gov.au/sport_and_recreation/volunteering). V Star is a free web
tool that provides a range of ideas, templates and resources for grassroots clubs. For
example, it provides a quiz to determine how your club is currently performing,
helpful hints for clubs and customised templates that can be downloaded. V Star also
supports the STARCLUB programme. The STARCLUB programme recognises clubs
that are well run, manage volunteers efciently and provide a safe and welcoming
environment (www.recsport.sa.gov.au/starclub/index.php). Clubs can measure them-
selves against the STARCLUB criteria and receive information and support to improve
their operations and environment.
Australia Football League (AFL): good practice in action

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VOLUNTEER SATISFACTION AND RETENTION

Recently Bang (2015) studied volunteer members of non-prot sport organisations in
the United States and his work provides insight into the role of age in inuencing job
satisfaction and intention to continue volunteering. The results provide insight for sport
management practitioners with regard to strategically tailoring recruitment and training
approaches to reect the needs of volunteers of varying ages. It was found that younger
volunteers perceived professional respect for others in the organisation is likely to
impact their degree of job satisfaction. However, job satisfaction is much more likely to
encourage retention of older volunteers than their younger counterparts (Bang, 2015).
Scholars continue to research various aspects of managerial practice and organisational
capacity that might improve volunteer human resource management. It has been sug-
gested that club governance and philosophy signicantly affect both volunteer and nan-
cial problems (Coates, Wicker, Feiler & Breuer, 2014). A recent study in the Australian
non-prot sector found that to increase volunteer commitment and intention to con-
tinue volunteering, learning and developing opportunities need to be clearly promoted
within the organisation (Newton et al., 2014). Similarly, in a sport event context in
Britain, Allen and Bartle (2014) found that volunteers level of engagement was related
to a combination of initial motivation and management practices.
Community sport is typically run on minimal budgets and with limited resources. Thus,
volunteers provide signicant value in this sector. There is increasing nancial pressure on
non-prot community sport organisations as a result of increasing nancial costs and issues
with generating income (Cordery, Sim & Baskerville, 2013). These nancial constraints
stem from the need to upgrade facilities and expand services while operating in a highly
competitive market with regard to attracting grants and/or sponsorship investment. Thus,
volunteers within the community sport sector are being asked to stretch minimal resources
further. As Wicker and Breuer (2013) discuss, there may be a correlation between high
volunteer dependence and nancial problems in sport clubs. Their study of organisational
problems within German non-prot sport clubs revealed that clubs with high revenue
experienced only minor volunteer issues, while those with high volunteer dependence suf-
fered nancial difculties (Wicker & Breuer, 2013). Volunteers and paid staff working in
community sport must look for new and innovative techniques and practices to minimise
nancial vulnerability and ensure the organisations sustainability.
Changes in the sport sector related to the adoption of technology and innovation by
community sport organisations also impacts volunteers (Hoeber, Doherty, Hoeber &
Wolfe, 2015; Hoeber & Hoeber, 2012). Innovations can be technical or administrative.
Technical innovations in community sport relate to particular sports and the delivery of
programmes (Hoeber et al., 2015). Administrative innovations include support required
to deliver programmes (Hoeber et al., 2015), and the management of volunteers. Hoeber
et al. (2015) examined the types of innovation adopted by ultimate frisbee, curling,
soccer and swimming clubs across Canada and found that clubs are trying to ease the
burden on their volunteers by pursuing new initiatives. Particularly within ultimate
frisbee clubs, a relatively new sport, attention was given to innovative methods to engage
volunteers (Hoeber et al., 2015).
A recent study by Aisbett and Hoye (2015) examined the relationship between
human resource management support practices and volunteers commitment and
>>}}ii}> 137
satisfaction at a community cycling event in Australia. They found that volunteers satis-
faction was more strongly attributed to informal support provided by their supervisor
than formal procedures established at the organisational level. Additionally, it was
reported that the volunteers level of commitment was more closely related to formal
organisational support they received. Such research emphasises the importance of
human resource management practices with volunteers in addition to paid staff. Aisbett
and Hoye (2015) noted that the formal support provided by the organisation and the
informal support provided by supervisors are important human resource management
considerations when managing a team of volunteers.
VOLUNTEER MOTIVATIONS
In recent years, interest in the relationship between volunteer motivation, satisfaction

and experience has increased (Bang, Ross & Reio, 2012; Giannoulakis, Wang & Felver,
2015). Research indicates that the motives and experiences of volunteers differ greatly
depending on their form of volunteerism (Wollebk, Skirstad & Hanstad, 2014). There
is a distinction between volunteers involved in the long-term delivery of sport and epi-
sodic or event volunteers (Gntert, Neufeind & Wehner, 2015; Wollebk et al., 2014).
Wollebk et al. (2014) dene these two types of volunteerism as collective volunteerism
and reexive volunteerism.
Collective volunteerism involves participation as a means to conrm group identity.
In collective volunteerism, organisational socialisation is strong and the individual is seen
as an organisational member (Wollebk et al., 2014). Reexive volunteerism, on the
other hand, is characterised by a low level of connection between the individual and
organisation. This is usually associated with short-term events, where the organisation
has less inherent value to the individual.
Wollebk et al. (2014) studied volunteerism at the point of intersection between col-
lective and reexive volunteer cultures. Data was collected from volunteers prior to the
2010 test event for the FIS Nordic World Ski Championships in Norway. Because sport
events in Norway are run by clubs and their members, this event could not be categorised
as a purely collective or reexive context. It was discovered that volunteers for this event
were different from general sport volunteers (Wollebk et al., 2014). The data revealed
two distinct groups of volunteers: (1) those that volunteer regularly and are associated with
organised sport; and (2) those that do not volunteer regularly and are not afliated with
organised sport (Wollebk et al., 2014). This latter group, in contrast to group (1), were
younger, predominantly female and low-income earners. These volunteers were not motiv-
ated by interest in the sport or to make friends; rather they saw this event as an oppor-
tunity to enhance their own social and human capital. Wollebk et al. (2014) suggested
that collective and reexive cultures of volunteerism can coexist at one sporting event.
LONG- TERM CLUB/ORGANISATION VOLUNTEERS
Given the important role volunteers play in the delivery of sport, it is critical that sport
clubs are effective in recruiting, managing and retaining volunteers (Hallmann, 2015).
As noted previously, it is also important for organisations to understand what motiv-

ates volunteers, as volunteer experiences are evaluated relative to individual motiva-
tions. Bang et al. (2012) investigated the role of a volunteers level of job satisfaction
in the relationship between motivation and effective organisational commitment.
Data was obtained from volunteers of 22 non-prot sport organisations in the United
States. The results indicated that motivation has a direct inuence on commitment
(Bang et al., 2012).
Darcy, Maxwell, Edwards, Onyx and Sherker (2014) studied the development of
social capital within Surf Life Saving Australia (SLSA), an Australian non-prot sport
organisation that provides a safety and rescue service on Australian beaches. SLSA is
predominantly operated by volunteers at club level and provides unique sporting oppor-
tunities and competitions. Darcy et al. (2014) conducted focus groups with a range of
SLSA clubs from different regions of Australia. Their most notable nding was the over-
arching importance of belonging among volunteers, with a focus on bonding and mate-
ship between members (Darcy et al., 2014). Shared social values including responsibility,
commitment, respect and giving back to the community were also important (Darcy et
al., 2014). This study highlights the potential of volunteer networks within sport organi-
sations to facilitate the development of social capital throughout communities. In the
communities studied, both individual and collective forms of social capital were evid-
enced. Creating a sense of belonging and developing individual skills (e.g. leadership,
communication and self-condence) within a club provides opportunity to enhance
social capital throughout the broader community (Darcy et al., 2014).
EVENT VOLUNTEERS
Volunteerism at sport events has been studied in a range of contexts from mega sport
events such as the Olympic Games (Fairley, Green, OBrien & Chalip, 2014) to small-
scale local events (Kerwin, Warner, Walker & Stevens, 2015). In a mega event context,
the prestige of the event and opportunity to be part of the event are dominant motiva-
tors for volunteers (Giannoulakis et al., 2015). Gntert et al. (2015) suggested that indi-
viduals may be motivated to volunteer at events for the pure excitement and
entertainment value that events provide. Studying volunteers at the 2008 European
Football Championship in Switzerland, these authors discovered that excitement and
good citizenship (including patriotism and hospitality) are important volunteer values
(Gntert et al., 2015).
Similarly, Lee, Reisinger, Kim and Yoon (2014) found patriotism to be a strong deter-
minant of satisfaction among volunteers of Expo 2012 in Yeosu, Korea. This study drew
on self-determination theory to explore volunteer motivation as mediated by satisfaction
and attitudes towards volunteering. Four constructs of volunteer motivation were found:
altruism, patriotism, intrinsic and extrinsic dimensions (Lee et al., 2014). This event was
promoted by the Korean government as a national mega event, which potentially led to
citizens viewing volunteering for the event as their civic duty. Volunteer satisfaction was
strongly inuenced by intrinsic motivation, while the relationship between satisfaction
and extrinsic motivation was weak (Lee et al., 2014). These results indicate that patriot-
ism and intrinsic motivation can be pivotal drivers of mega event volunteer satisfaction.
>>}}ii}> 139
Giannoulakis et al. (2015) similarly examined the relationship between motivation,

experience and satisfaction among volunteers at the Asian Games in Qatar. The main
motivation for volunteers involvement was event-related factors and the primary inu-
ence on volunteers experiences was recognition and acknowledgement (Giannoulakis et
al., 2015). As the authors noted, this was possibly due to the cultural context of the
study and the fact that the participants were predominantly male and Qatari. It was
found that satisfaction was related to the fullment of event-related motives and positive
event experiences (Giannoulakis et al., 2015).
VanSickle, Pierce and Diacin (2015) also investigated volunteers motivations and
consequent satisfaction in the context of the 2012 Super Bowl in the United States. Four
volunteer motivations were found: community support, love of sport, personal growth
and career development (VanSickle et al., 2015). These all signicantly affected satisfac-
tion levels among the volunteer network (VanSickle et al., 2015).
Also in a mega event context, Fairley et al. (2014) investigated the role identity of
volunteers at the Sydney 2000 Olympic Games. Data was collected from volunteers in
the lead-up to and during the event. Further data was collected 12 years after the event
from pioneer volunteers, those who had been involved in the event in the very early
planning stages. For the Sydney Olympic Games, 500 pioneer volunteers were recruited
during the three to four years prior to the event (Fairley et al., 2014). Pioneer volunteers
are episodic volunteers and, due to their involvement in the early years of event plan-
ning, are also long-term or continuous volunteers. Fairley et al. (2014) found that one of
the major differences was that pioneer volunteers formed friendships during the course
of their involvement. Twelve years after the event these pioneer volunteers still get
together and have continued to volunteer together at other events. Pioneer volunteers
also reported a strong sense of afliation with the organisation, as they witnessed a signi-
cant amount of activity behind the scenes that led to feelings of connection and owner-
ship of the event (Fairley et al., 2014). During the event, pioneer volunteers transitioned
into general volunteer positions, supervised by paid staff. It was noted that their experi-
ence developed over the previous few years was not recognised, which presented a
potential threat to their role identity as pioneer volunteers. This study highlighted that
during transition periods from pre-event to event roles, strategies should be implemented
to ensure that the role identity of pioneer volunteers is respected.
Hallmann and Harms (2012) also investigated the determinants of motivation for
sport event volunteers. Volunteers at the 2011 Handball Champions League nal in
Cologne and the 2011 Concours Hippique International Ofciel in Aachen were studied.
While there were slight differences between events, generally across both contexts,
intrinsic factors were more inuential than extrinsic motivation (Hallmann & Harms,
2012). It was found that expression of values and personal growth had the strongest
inuence on motivation and future behaviour (Hallmann & Harms, 2012).
Kodama, Doherty and Popovic (2013) provided a unique insight into the experience
of mega event volunteers. Through autoethnographic data recorded by the lead author,
this study presented the lived experience of a volunteer at the 2010 Winter Olympic
Games in Vancouver. The study highlighted the excitement of the event and the process
of making the cut as a volunteer. Of notable importance was the team of volunteers,
and the shared purpose, experiences and support within this team (Kodama et al.,
2013). It was found that event volunteering created individual identity as well as
connections among volunteer networks. One point of contention raised in this paper was
related to volunteer role/job uncertainty stemming from ambiguity of logistics (Kodama
et al., 2013). While autonomy in decision making has been associated with favourable
outcomes among event volunteers (Gntert et al., 2015), Kodama et al. posit that ambi-
guity in this context should be avoided. Thus, volunteers should be given certain degrees
of freedom in decision making and utilising personal initiative; however, they should not
be working with uncertainty.
In the context of a small-scale sport event, Kerwin et al. (2015) explored sense of
community among volunteers. At a canoe and kayak event in Canada they applied the
six factor Sense of Community in Sport Scale (SCS) to test sense of community among
volunteers and whether the volunteer experience enhances sense of community. Kerwin,
Warner, Walker and Stevens (2015) proposed this SCS based on a study of athletes and
suggested this be applied in a volunteer context. Kerwin et al. (2015) found that ve of
the six factors were supported including administrative consideration, common interest,
equity in administrative decisions, leadership and social spaces. The SCS factor that did
not show statistical t with this volunteer data was competition (Kerwin et al., 2015).
The authors recommended that the construct of competition requires further research as
a value within the sense of community framework.
Welty-Peachey, Lyras, Cohen, Bruening and Cunninghams (2014) investigation of
the motivations of volunteers was conducted at a multinational sport for development
event, the 2011 World Scholar-Athlete Games in the United States. This event brings
young people from all over the world together to participate in games and activities,
promoting peace, inclusivity and fairness. Volunteers were motivated by values align-
ment with the event and what it endorses (Welty-Peachey et al., 2014). Volunteers were
also driven by a social motive, the opportunity to meet new people and learn about dif-
ferent cultures. Understanding and career factors were also noted. That is, volunteers
sought new skills and knowledge through their event experience. The nal motivation
was self-enhancement, as they enjoyed being part of the event delivery process and
engaging with the event participants. These results differ from mega event contexts, as
the desire to be part of a high prole professional sport event is not relevant. In this
sport for development context, the importance of values, giving back to the community
and social aspects of volunteering is highlighted (Welty-Peachey et al., 2014). Therefore,
it is suggested that sport for development event organisers should not only promote the
values of the event, but also the social engagement opportunities.
Kristiansen, Skirstad, Parent and Waddington (2015) examined volunteering in the Nor-
wegian town of Vikersund in the lead-up to hosting the 2013 Ski Flying World Cup. Viker-
sund has long hosted major competitions in ski ying and recently hosted two World Cups
and one World Championship. In a town with a population of fewer than 3,000 people,
these events attracted over 1,000 local volunteers. While most volunteer studies focus on
the individual, this study investigated the long-term commitment by a whole community
of volunteers. It was found that long-term volunteering is an institutionalised social process,
which is associated with strong collective identity in the community. Local pride and high
community identity were pivotal elements in the volunteer process, and these were rein-
forced by building stakeholder relationships and through resisting external powers over
time (Kristiansen et al., 2015). This study indicates that volunteering can be a collective
way for communities to celebrate their community identication and local pride.
>>}}ii}> 141
Schlesinger and Gubler (2015) investigated the extent to which volunteers at sport
events differed in the motives of their engagement, and how to classify these volunteers.
They looked at the motives of 1,169 event volunteers at the 2014 European Athletics
Championships in Zrich. They found that motivational processes differ among sport event
volunteers and that volunteers sometimes combine contradictory bundles of motives. Four
different volunteer motive proles were identied and described by their positive levels on
the individual motive dimension: the community supporters, the material incentive
seekers, the social networkers and the career and personal growth pursuers. They con-
cluded that a motive based typology of sport event volunteers can provide event managers
with information that can be used to create distinctive and designable working conditions
and tasks that can be tailored to a wide range of individual prerequisites.
SUMMARY
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>i] ]->`] ]*>i]E7>``}]x7iV>`\
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}>>>i>wV}>>Sport Management Review,
16]xq{
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ìii\ *i}i` Vi] i>` i >` L}>i` i`}i International Review of
the Sociology of Sport, 46]{q{
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VL ii > >` iVi
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CHAPTER 10
Sport governance
Ian OBoyle
Chapter objectives
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Key Terms: Board; Ethics; Federal Model; Unitary Model; Gender Diversity
INTRODUCTION
Governance is not a synonym for management. Governance refers to the structures and
processes used by an organisation to develop its strategic goals and direction, monitor its
performance against these goals and ensure that its board acts in the best interests of the
members. Management is concerned with the daily operations of an organisation and
ensuring operational goals are being met. The style and form of governance applied will
vary across industries, the size of the organisation in question and the stakeholders involved.
Differentiating between the terms stakeholder and shareholder is a key component to
understand how governance structures vary between corporate and non-prot entities; for
instance, those involved in the governance of sport. In the corporate environment a share-
holder is an individual or group who has a vested nancial interest in the success of the
organisation. The concept of a shareholder is generally absent from the world of non-prot
sport governance, but like their corporate counterparts, these organisations have a variety
of stakeholders that are important for the management and governance of these bodies.
Therefore, the skillsets that are required for those charged with governing in the non-prot
sport context as opposed to the corporate environment can often be quite different.
The basic principles of good governance include: transparency, accountability, demo-
cracy, responsibility, equity, efciency, effectiveness and communication. These are all
146 Ian OBoyle
principles that board members should follow along with some more specic roles to ensure
that they are following best practice in relation to contemporary sport governance.
Reecting the opening sentence in this chapter, the boards role is not at the manage-
ment level within an organisation. The Chief Executive Ofcer (CEO) and his or her
senior management team are responsible for carrying out the daily operations of the
organisation and the boards role reects a more strategic or long-term view coupled
with an oversight role for management. It is important for the board to allow the CEO
to perform his or her role and certainly to provide support, but at the same time refrain
from becoming involved in the day-to-day operations of the organisation.
Apart from the principles of good governance outlined above, some of the more spe-
cic roles of the board in a non-prot sport organisation may include:
s CREATINGASTRATEGICDIRECTIONANDVISION
s FORMINGSUITABLEORGANISATIONALPOLICIES
s DEVELOPINGAREPUTABLEPUBLICIMAGE
s ASSESSINGMANAGEMENTPERFORMANCE
s REPORTINGTOSTAKEHOLDERS
s RECRUITMENTANDRETENTIONOFSUITABLE#%/CANDIDATES
s ENSURINGCOMPLIANCEWITHRELEVANTLEGISLATION
s LOBBYINGFORFUNDINGANDSPONSORSHIP
The above are some relatively generic roles that the board in a non-prot sport organisa-
tion may be required to full. The ability of a board to carry out these roles may depend
on a number of factors, and potentially impacting on this ability is the manner in which
the board is structured, including its size. The average size of a board in a national sport
organisation (NSO) in Australia, for instance, is between seven and nine members. In
the past, these boards would generally have had much larger numbers as they needed to
attract as much expertise as possible, and high calibre board members were often dif-
cult to attract. As the sporting environment has become more professionalised and
indeed commercialised, these organisations have reformed their board structures to
ensure that members have specic skillsets relevant to the current challenges their organ-
isations are facing. The identication and recruitment of board members with such spe-
cic skillsets allows for a reduction in the size of the board, which removes issues such as
poor intragroup communication and the potential formation of factions, and instead pro-
motes easier decision making processes and arguably more constructive board meetings.
Another issue that potentially impacts on the ability of the board to full its various
roles is board independence. In countries where a federal model of sport governance
exists, such as Australia, New Zealand, the United Kingdom and Canada, delegate
representation has traditionally been the norm in terms of board composition. This
means that a representative from each region or state would assume a position as a dir-
ector on the national board, which would often result in issues of self-interest or paro-
chialism arising where delegates become primarily concerned with protecting the
interests of their home states or regions as opposed to the interests of the organisation
from a whole of sport perspective. This situation has led to calls for more independent
boards where members do not have any direct afliation with a constituent member
body. Some organisations have moved to complete independent board membership
-}i>Vi 147
whereas others have come halfway by incorporating more independent directors while
still retaining elements of a delegate representative system. This is commonly referred to
as the hybrid model.
The above provides an introduction to sport governance in terms of the major issues
related to the board within a sport organisation. The remainder of this chapter goes
deeper into some of the core issues facing contemporary sport organisations in terms of
their governance. Issues such as governance models, gender diversity, ethics, corruption,
and indeed the differences in governance between non-prot and professional sport, will
be explored. But rst, the section below provides a brief synopsis of the work under-
taken in academic research related to board governance in this important and interesting
area of the sport management environment.
ACADEMIC RESEARCH AND SPORT GOVERNANCE
The need for sport organisations to improve their governance has seen an increase in
attention both within the industry itself and in academic research (e.g. Adriaanse &
Schoeld, 2013; ASC, 2013; Hassan & OBoyle, 2016; Hoye & Doherty, 2011; Ferkins,
Shilbury & McDonald, 2009; OBoyle & Shilbury, 2015; Shilbury, OBoyle & Ferkins,
2016; Taylor & OSullivan, 2009). Current thinking on sport governance from an aca-
demic perspective typically adapts theoretical and conceptual models from more estab-
lished elds of inquiry, primarily those in the commercial or other non-prot literature
bases including public administration (Ferkins & Shilbury, 2010; Shilbury & Ferkins,
2014). Theoretical frameworks including agency, institutional, resource dependence,
stakeholder, network and stewardship have all been applied in this way in previous
studies (Bradbury & OBoyle, 2015; Dickson, Arnold & Chalip, 2005; Henry & Lee,
2004; Hoye & Cuskelly, 2007; Mason, Thibault & Misener, 2006; OBoyle, 2015;
OBoyle & Bradbury, 2013; Soares, Correia & Rosado, 2010).
An important element of the extant literature is research relating to the volunteer nature
of the majority of boards in the non-prot sport sector. This voluntary involvement com-
plicates the issue of sport governance as the skills, qualities and characteristics that are
required to govern and lead effectively, and collectively, under a collaborative governance
approach cannot always be guaranteed to be present within voluntary boards (Shilbury,
Ferkins & Smythe, 2013). Studies related to voluntary boards have provided insight into
the correlates of volunteer board performance in the non-prot sporting context; yet, inves-
tigations of the interrelationships between boards such as those operating in governance
networks have not been well documented (Doherty & Carron, 2003; Doherty & Hoye,
2011; Hoye & Auld, 2001; Hoye & Cuskelly, 2003, 2004; Hoye, 2004, 2006).
The volunteer nature of these boards is reective of the delegate representative model
of board composition that has been traditionally synonymous with federal governing
structures as noted previously (Hoye & Cuskelly, 2007). This representative model
explains the levels of trust that are built within networks as delegates are generally
elected to represent the interests of their own afliations and not necessarily those of the
sport (or a network) as a whole (Shilbury et al., 2013). Furthermore, the selection of
essential skillsets potentially required to foster trusting relationships such as high level
leadership skills, and communication and negotiation skills, is difcult given the nature
148 Ian OBoyle
of the nomination process in delegate models. Within the non-prot context in general,
Kearns (1995) suggested that board members should possess specic talents that add
value to the board, and a clear understanding of their role and selessness. It can be seen
how a delegate representative model may not necessarily facilitate this situation and,
hence, the inclusion of these qualities in non-prot sport boards. All of these issues are
further complicated by the limitations on time that volunteer board members may have
to interact with other governing powers in a network.
SPORT GOVERNANCE MODELS
In countries such as Austria, Canada, New Zealand, Ireland, the UK and a host of other
European nations, sport governance models generally fall under two categories: a federal
model or a unitary model. The federal model of sport governance is most often a reec-
tion of the political system that operates within a country where various states or regions
are afliated with a national government. In the Australian example, for instance, each
of the six states have the power to govern in their own right concerning a number of
issues such as policing and education, but are also subject to the laws of the Common-
wealth or federal government in terms of issues such as tax and national defence. As a
direct reection of this, sport governing bodies at state levels within Australia are legally
autonomous bodies and do not have to work closely with their respective national sport
organisation if they choose not to. However, it is generally always in the best interest of
a state and indeed a sport to have all afliated bodies working in cohesion for obvious
reasons.
Harmonious relationships in sports that operate under a federal model, whether in
Australia or internationally, are not always the norm, however. The independent status
of these entities often results in tensions that manifest in distrust and conict and in
some instances a complete breakdown of communication between governing bodies
within a sport network. Clearly this is not an ideal situation for a sport code to nd itself
in. Industry bodies, such as the Australian Sport Commission, are well aware of the chal-
lenges imbedded in such a system and indeed have attempted to develop policies to
encourage more harmonious relationships in these networks. One of the principles in
the Australian Sport Commissions (2013) Mandatory Governing Principles reads:
Different sporting organisations operate under different governance structures.

While not requiring the adoption of any single model, the ASC will consider
closely whether sports governance models are likely to enable them to achieve
their core participation and high performance objectives in the most cost
effective fashion. Each structure should be clearly documented with a clear
delineation of the roles, responsibilities and powers of the Board, management
and each body involved. Further, there should be no overlap in the powers of
any two bodies or individuals in a governance structure.
(ASC, 2013, p. 2)
The alternative model to the federated structure is commonly referred to as the unitary
model. In this system the state bodies that constitute a sporting network are essentially
-}i>Vi 149
replaced with ofces of a national body and direct lines of accountability and reporting
are established with the national entity. The boards at state level are disbanded and the
national body then holds the balance of power in terms of making decisions that impact
the whole of the sport. In certain situations, an advisory board may be retained at the
state level to act as a consultative body and as a voice for the local membership.
The major benets of this model, aside from removing the issue of distrust and con-
ict, is that one strategic plan can be rolled out across the entire sport and common high
performance and participation initiatives can be implemented in all states creating eco-
nomies of scale and minimising any duplication of resources.
Of course there are signicant challenges that must be overcome if a sport network is
to attempt to implement such a model. Overcoming the existing conict and distrust
that may be present in the network is of prime importance. Achieving buy in from the
states will be difcult if low levels of trust exist. In order for a unitary system to be
adopted, state boards are the ones who have to relinquish power and ultimately vote
themselves out of ofce, a task that many may nd challenging. Furthermore, a federal
model allows for localised governance of a sporting code in different geographical
regions. The unitary model may appear to be somewhat of a blunt instrument that does
not necessarily account for the different challenges and pressures being faced by different
regions in the sport. For countries where there is a large geographical size such as Canada
and Australia, this issue becomes even more prominent.
WOMEN IN SPORT GOVERNANCE
Women remain underrepresented on the majority of sporting boards at international and

national levels. Few sport federations have more than 30% of female board members and
the average is closer to, or below, 20%. So, is it important to measure and track the
number of women on the boards of sport governing bodies? Is gender balance and diver-
sity needed on a board to increase board and organisational performance? Fewer female
voices at the top levels in sport will reinforce the situation of female athletes being
second-class citizens in relation to media coverage, sponsorship and salaries (Women on
Boards, 2014).
Lets look at some statistics from organisations such as the International Olympic
Committee (IOC) and other sport federations:
The Olympic Charter states that The IOC encourages and supports the promotion of
women in sport at all levels and in all structures with a view to implementing the prin-
ciple of equality of men and women.
The London Olympics saw the highest participation by female athletes: 4,676
(44.2%) of the 10,569 athletes who competed. Other statistics included:
s .ATIONAL/LYMPIC#OMMITTEES./#S HADWOMENASCHEFSDEMISSION
s ./#SHADWOMENASmAGBEARERS
The IOC Executive Board itself comprises 15 members of whom only 4 are women
(27%). Of the 115 members of the IOC, less than 25% are female. Afliated bodies such
as the NOCs have less than 20% women on their governing bodies.
150 Ian OBoyle
Looking at international sport federations in general, as of 2015, only those represent-

ing gymnastics, squash, hockey, triathlon, softball and netball have more than 30%
women on their governing boards. The international federations representing boxing,
cricket, handball, judo, rugby, shooting and tennis do not have any female representation
on their governing bodies.
Lets take the Australian Olympic and Commonwealth Games Committees as examples:
s &EMALE ATHLETES ARE PARTICIPATING AND WINNING MEDALS AT RATES EQUAL TO OR HIGHER
than, their male counterparts, but continue not to be appointed to executive and
board roles.
s 4HE !USTRALIAN /LYMPIC TEAM CONSISTED OF MEN AND WOMEN THE
women won 57% of the medals (20 medals out of 35), even though there were
more medals available for male athletes to win.
s 4HE!USTRALIAN/LYMPIC#OMMITTEE"OARDCURRENTLYCONSISTSOFPEOPLEOFWHICH
5 (35.7%) are women. The Commonwealth Games Association only has 2 women
from a board of 20.
The Australian Sport Commission (2013) has set out a new requirement in Principle 2.6
of its Mandatory Governing Principles, relating to gender balance on national sport organ-
isation boards:
There is good evidence that diversity on Boards leads to better corporate per-
formance. The Commonwealth Government has set a target of a minimum of
40 per cent of Commonwealth Boards being female. Similarly, the ASCs posi-
tion is that each NSO should seek to achieve a target of 40 per cent female
representation, which the ASC will review pending progress and the overall
skills mix of boards. Reporting on gender representation for NSO executive
management positions will also be required.
(ASC, 2013, p. 3)
The ASC named and shamed all those sports funded by the ASC that had less than
20% female representation on their boards. At the time these were Archery Australia,
Australian Paralympic Committee, Australian Rugby League Commission, Basketball
Australia, Boxing Australia Limited, Confederation of Australian Motor Sport (none),
Cricket Australia, Diving Australia, Judo Federation of Australia (none), Motorcycling
Australia and Surf Life Saving Australia.
In the case of Basketball Australia, the ASC Mandatory Principles led to a major
review of the nomination and election process for the board in 2014.
The barriers to advancement for increased female representation of sport governing
boards appears to be related to a number of issues including attitudes and perceptions of
the male-dominated sport culture, perceptions and expectations of women, work-life
issues, and the need to change the structure lower down to give more opportunities to
women to come through and sit on boards at club level, state level and then up to
national level.
Regardless of the real or perceived barriers, increasing levels of participation and
success by females in all sporting arenas is raising the bar when it comes to acceptable
-}i>Vi 151
numbers of women in key decision making roles on sport boards. The pipeline argument
that there are no suitable or interested women available to take on board roles has not
been sustainable for many years. It is as important for the worlds aspiring female
athletes to see role models in the corporate boxes and the boardrooms as it is represent-
ing their country.
SPORT GOVERNANCE AND ETHICS
We see cases of unethical practice almost daily, whether in our own lives or being
reported in the media. Unethical behaviour associated with sport has also featured
prominently in the media in recent years, such as nancial mismanagement at organisa-
tions like FIFA, match xing, cheating and abuse in the sport context. The ideals of
sport are founded on concepts of fair play and good conduct but as we are all well
aware, these principles can often be absent from the actions of players, coaches, fans
and organisations in general involved in the world of sport. Many would argue that one
of the key functions of a well-governed sport is to ensure that high standards of ethics
are upheld in all aspects of the organisations reach. Some of the specic examples that
have received international infamy include: NFL teams giving monetary rewards (boun-
ties) for injuring an opposing teams player; NCAA athletes (mainly football and
basketball) generate millions of dollars for video game companies and receive no com-
pensation for the use of their image and likeness; the use of performance enhancing
drugs in a variety of sporting codes; professional athletes tweeting racial slurs or other
inappropriate postings on social media.
Sadly we are all too familiar with these types of instance. This is problematic because
the sport industry prides itself on providing wholesome entertainment, promoting
positive values, building character, and creating good role models. Unethical behaviour
threatens all of the positive benets (Ridinger & Greenwell, 2005, p. 156).
Dealing with ethical dilemmas may be a challenging task for the board of a sport
organisation. They will be looked upon by the stakeholders of the organisation and
perhaps the general public for leadership regarding ethical issues and to ensure that
they do the right thing. However, what exactly the right thing is and how to decide on
the right thing to do can often be a difcult task. These decisions, particularly if
they involve a high prole sport and/or athletes, will be heavily scrutinised by the
media, fans and readers of the news that may have an impact on the future of the
organisation.
Perhaps the best way that a board can ensure that the best decision is reached in rela-
tion to ethical dilemmas is to have an agreed upon systematic process established that
they can follow for each ethical dilemma that may arise. An example may be:
1 Identify the correct problem to solve;

2 Gather all pertinent information;
3 Explore codes of conduct that shed light on the issue;
4 Do not let your own values/beliefs cloud judgement;
5 Consult with other governing bodies;
6 List decision options;
152 Ian OBoyle
7 Look for a winwin outcome if possible;

%NSURETHEDECISIONMAKINGPROCESSISTRANSPARENTANDDOCUMENTED
9 Take time to make/announce the decision;
10 Make the best decision possible;
11 Evaluate the decision over time.
A closely linked area to the topic of ethics in sport governance is that of corporate social
responsibility. This term refers to how good a corporate citizen the organisation is. It is
a concept whereby companies integrate social and environmental concerns in

their business operations and in their interaction with their stakeholders on a
voluntary basis. Being socially responsible means not only fullling legal expec-
tations, but also going beyond compliance and investing more into human
capital, the environment and the relations with stakeholders.
(European Commission, 2001, p. 4)
There is no singular measure of good citizenship because by its very nature it can only be
ascertained by the perspectives of a multitude of stakeholders. One example is provided
by Carroll (1991):
1 Economic the lowest level of CSR

2 Legal
3 Ethical
4 Philanthropic the highest level of CSR.
GOVERNANCE AND THE OLYMPIC GAMES
4HEMODERN/LYMPIC'AMESWEREREBORNINWHENALL MALEATHLETESFROM

nations competed in 9 different sports. Flash forward to London 2012 when 10,569
athletes from 204 nations competed in 26 sports. The Olympics have clearly grown in
size and complexity and therefore require a suitable international governing structure.
Three main levels of organisational inuence direct the Olympic Games:
1 The Olympics are organised through the jurisdiction of the International Olympic
Committee.
2 Bids to host the Olympic Games are made through National Olympic Committees.
3 The responsibility for organising a successful bid falls on the Organising Committee
for the Olympic Games (OCOG).
The IOC has its headquarters in Switzerland and is a non-prot institution independent
from any government or nation. Members of the IOC are elected at the Session or
Annual General Assembly from the worldwide sporting community. There are 115
members of the IOC; however, having an NOC does not guarantee that a nation will
have a representative on the IOC. Historically, IOC members were elected by other
members of the committee but this process was heavily criticised for being elitist and
-}i>Vi 153
biased. The composition of the IOC now sees 70 positions reserved for ordinary
individual members, 15 for active Olympic athletes, 15 for members of international
sport federations and 15 from NOCs. Between annual Sessions, the governance of the
IOC is charged with the IOC executive committee. There are 15 positions on this board
including the president, 4 vice presidents and 10 members elected from the Session.
Each member of the board serves a four-year term, with the exception of the president
who serves an eight-year term.
The IOC generates extensive revenues through its ownership of the rights to the
Olympic Games and associated trademarks. Bid cities also have to guarantee a per-
centage of the revenue generated through hosting will be returned to the IOC.
However, the largest portion of IOC revenue comes through sponsorship and broad-
casting rights associated with the Olympic Games every four years. Exploring the
value of broadcasting rights, specically for the Rio 2016 Games and beyond from
locations such as Australia, Europe and the United States, it is easy to see how the
IOC has evolved to become such a powerful global entity within the governance
of sport:
s !USTRALIA4HE)/#WASHOPINGTOSNAREASMUCHASMILLIONBUTISBELIEVEDTO
HAVE SETTLED FOR LESS THAN MILLION AFTER TWO TELEVISION NETWORKS PULLED OUT OF
negotiations.
s 5NITED3TATESABLOCKBUSTER53BILLIONDEALANNOUNCEDIN-AYWITH."#5NI-
versal for US broadcast rights for Rio and beyond until 2032.
s %UROPE %UROSPORT ACQUIRED THE BROADCAST RIGHTS FOR 2IO IN A a MILLION
!5$BILLION DEALWITHTHE)/#
The IOC and its executive board are certainly the two most powerful bodies when it
comes to Olympic sport governance but the NOCs and local organising committees
(LOCs) also have an important role to play in the governance of the Olympic move-
ment. NOCs control operations and policy relative to the Olympics within a particular
country. They are the ofcial body representing the delegation of a countrys athletes at
the Games. Only athletes certied by an NOC can compete at the Games. If entering
the bidding process, the NOC must nominate one city no later than nine years in
advance of the Games, then the IOC makes a decision on hosting rights seven years in
advance of the event.
The LOC for an Olympic Games event also plays a crucial role in the Olympic gov-
ernance system. They are responsible for organising the initial bid, and if the bid is suc-
cessful, they are responsible for virtually all preparation associated with the Games.
They usually also remain in place after the Games to nalise accounts, for reporting
and to kick-start the legacy of the event. LOCs are generally made up of both volun-
teers and paid staff and they almost act as an organisation in and of themselves.
The Olympic Games are run like a business and LOCs are expected to do so also.
The goal for the LOC is to have surplus funds to leave as a legacy for the next host city.
As noted above, broadcasting rights and corporate sponsorship form the backbone of
such revenue and are becoming increasingly more important as the costs for hosting an
/LYMPIC'AMESGROWTOASTRONOMICALLEVELS,ONDON3UMMER'AMES!5$BILLION
3OCHI7INTER'AMES!5$BILLION
154 Ian OBoyle
GOVERNANCE AND FIFA
FIFA, the world governing body for the sport of soccer (football), provides perhaps
the best and certainly most well-known example of sport governance in practice.
Referring back to the principles of good governance at the beginning of the chapter, it
could easily be argued that FIFA have been accused of following very few if any of
them. FIFA and corruption in terms of sport governance have gone hand in hand
dating back almost 20 years but it is only recently that the extent of this corruption
has been truly unveiled.
In 2015, 14 current and former FIFA ofcials and associates were indicted by the FBI
in the United States on charges of rampant, systematic and deep-rooted corruption.
FIFAs president at the time, Sepp Blatter, had always denied any wrongdoing but even-
tually became the focus of a Swiss-led criminal investigation over a disloyal payment to
another FIFA ofcial, Michel Platini.
The manner in which FIFA presidents are elected has been a serious cause for concern
in relation to the organisations governance. Each of the 209 FIFA member nations casts
a single vote for the bodys president. This system gives smaller countries outsized inu-
ence. For instance, a vote from Andorra weighs exactly the same as a vote from
Germany. Furthermore, Blatter was accused of using FIFA development money, ear-
marked for promoting soccer in impoverished nations, to secure presidential votes and
general support for his initiatives.
The allegations of corruption came to a head at FIFA following the bidding processes
FOR THE AND 7ORLD #UPS AWARDED TO 2USSIA AND 1ATAR RESPECTIVELY )N
December 2014, FIFA chose not to release its own investigation into corruption, instead
releasing an executive summary that it said exonerated the organisation from any cor-
ruption charges. The reports independent author, American lawyer Michael Garcia,
resigned in protest.
Financial mismanagement does not appear to be the only form of corruption that was
taking place at FIFA. Allegations have surfaced that the German and Saudi governments,
coupled with investments by German corporates in South Korea and Thailand, ensured
that Germany won its 2006 hosting rights by one vote in 2000. It is suggested that the
German government of then Chancellor Gerhard Schrder complied with a request
from the German Football Association to lift at short notice an embargo on weapons
sales to Saudi Arabia and supply it with anti-tank rocket launchers in a bid to ensure that
the then Saudi member of the FIFA executive committee Abdullah Al-Dabal would
vote for Germany rather than Morocco. Other allegations suggest that German com-
panies such as Volkswagen, Daimler and Bayer promised to signicantly increase their
investments in Thailand and South Korea to secure the votes of two other FIFA execu-
tive members.
The arrests and investigations of the FIFA ofcials cast doubt over the transparency
and honesty of the process of allocating World Cup tournaments, electing its president
and the administration of funds, including those earmarked for improving football facili-
ties in some of FIFAs poorer members.
-}i>Vi 155
GOVERNANCE IN PROFESSIONAL SPORT

(NBA AND NFL)
The governance of professional sport is very different to governance within the non-prot
sporting context. Professional sport is a business. These organisations are not necessarily in
existence to provide a public good or a major benet to the community (although
undoubtedly some do). Governance in professional sport is much more akin to the govern-
ance structures we see in the corporate environment reecting the common for-prot
nature of these entities. However, there are also some unique aspects to the world of
professional sport governance that we do not see in either the corporate or non-prot gov-
ernance systems. In this section the focus is primarily on governance of the National
Basketball Association (NBA) and the National Football league (NFL) in the United States
as they provide the best examples of professional sport governance in practice.
Although not identical, these leagues share a number of commonalities in that they
have a league commissioner, a board comprising team owners and a central administra-
tive body that handles the day-to-day operations of the league.
The commissioner in a professional sport league is a powerful entity who passes
judgement on a number of issues that concern the ongoing activities of the league. They
are in somewhat of an unusual positon in that they can be seen as an employee of the
owners but in other ways they have the disciplinary power of the owners. An example of
this occurred in the NBA in 2014 when Los Angeles Clippers owner Donald Sterling
was banned from the league for racist remarks. Some of the general roles and functions
of a league commissioner include:
s APPROVALOFPLAYERCONTRACTS
s RESOLUTIONOFDISPUTESBETWEENPLAYERSANDCLUBS
s RESOLUTIONOFDISPUTESBETWEENCLUBS
s RESOLUTIONOFDISPUTESBETWEENPLAYERSCLUBSANDTHELEAGUE
s DISCIPLINARYMATTERSINVOLVINGOWNERSCLUBSPLAYERSANDOTHERPERSONNEL
s RULE ENFORCINGAUTHORITY
The other major party in the governance of the NBA and NFL are the owners. Despite a
wide range of powers, the commissioner is not necessarily an all-powerful entity in these
leagues. Owners can decide on strategic issues such as franchise relocation, league expan-
sion or contraction, rule changes and revenue sharing. Of course, one of the major issues
for owners is to negotiate the salary cap in consultation with the league and players
unions.
Ownership of a professional NBA or NFL franchise does not come cheap and many
of these owners are very successful business people in their own right who have a passion
for the sport they are involved with. Of course, sport team ownership in the NBA or
NFL is ideally not a philanthropic exercise. Although some teams lose money each year,
a franchise has almost never been sold for less than its original purchase price. Some
examples of prominent owners include Microsofts Paul Allen (Portland Trailblazers and
Seattle Seahawks), Microsofts Steve Ballmer (LA Clippers), Michael Jordan (Charlotte
Bobcats), Jay-Z (Brooklyn Nets) and Mark Cuban (Dallas Mavericks).
156 Ian OBoyle
SUMMARY
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REFERENCES
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i}iL>i`>>VSport Management Review, 16]{nqx
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Mandatory sports governance principles
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rate Ownership and Control, 12]xq
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>] x i>}i i> >` i}>>> i Sport
Management Review, 8]{xqx
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i ii iiVi Vii Journal of Sport
Management, 17]q{
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}>>Nonprot Management and Leadership, 22]qn
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Promoting a European framework for corporate social responsibility
,iii`v\i>i>ìii>i"
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Nonprot Management and Leadership, 15]xxq
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Australian Journal on Volunteering, 6]nq
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i]Sport governance-ì\ ii
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158 Ian OBoyle
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CHAPTER 11
Leadership in sport
management
Duncan Murray and Sarah Chua
Chapter objectives
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organisations.
Key Terms: Leadership; Power; Transformational; Servant; Authenticity.
INTRODUCTION
There is little doubt that effective leadership is considered essential to the functioning of
any organisation. However, many of us still seem to struggle with what a leader is specif-
ically required to do to be effective. Leaders often have their attention dispersed over a
range of both strategic and operational imperatives. Leaders of organisations therefore
need to have the capacity to focus on and address multiple divergent issues simultan-
eously. They must have a grasp of both the human and the functional or technical side
of the organisation. They need to think in the moment, as well as the future. They need
to consider both the internal and the external environment of the organisation, the
culture, the climate.
Still, despite these complexities, leadership is perfectly simple and yet obviously also
incredibly complicated. In essence it is about the application of power to inuence
others, in order to achieve the desired goals and outcomes of the organisation. Thus, a
leaders skills, and how they approach this task, are vital. For the leader of a sport organ-
isation, the basic tenet of the role is no different. Sport is the context, and may slightly
inuence approaches, but ultimately the central components of leadership are universal.
This chapter focuses on the concept of leadership at the broader level, specically
how some of the major contemporary leadership theories pertain to sport organisations.
160 Duncan Murray and Sarah Chua
It discusses what leadership is, what the main contemporary theories of effective leader-
ship are and how they pertain to sport management in particular.
Specically, the nature of leadership, rather than management, in the sport manage-
ment eld is explored. Leadership is dened and how leadership equals the application
of power to achieve inuence is considered. Some of the key contemporary theories per-
tinent to leadership in sport management are also explored using sport (organisation)
examples to highlight how the theories are directly relevant to the role of a sport
manager or administrator and to demonstrate their application.
WHAT IS A LEADER?
So, what is a leader? Are people born leaders? Or is leadership something you can learn?
It has been proposed that great leaders achieve extraordinary things by inspiring others
with a common purpose or vision (Kouzes & Pozner, 1988). How do they achieve this?
What makes one person highly capable in this space while others fall short? Exceptional
leaders seem to have the ability to transmute their vision into a concrete reality. They
have the capacity for their followers to buy into their vision and to act in a fashion that
makes the vision a reality.
Many people use the terms leader and manager interchangeably. However, there is
a notable distinction between the two constructs. A leader is not a manager. A leader
may be a manager, but it is not a fait accompli. Likewise a manager may not be a leader.
They may be a leader in name, they may have authority, but they may not lead. Leader-
ship is therefore distinct to management, but it does have links to it, in particular via the
application of power, which will be explored in detail later in this chapter.
LEADER VERSUS MANAGER
Although the two terms are used interchangeably, when we scratch the surface we see
that there are notable distinctions between leadership and management. We can have
leaders who do not manage. They may inspire and inuence followers, but they have
little direct management over the individuals that follow them. Some political leaders
may fall into this category. They can inspire public adoration and devotion, but they
have very little direct management inuence over those followers (the case of Donald
Trump and his supporters in the lead-up to the 2016 US presidential election may high-
light this). Likewise, there are also managers who do not lead. A manager who is very
good at ensuring that organisational policies are adhered to may be an excellent manager,
but may well have no leadership acumen at all.
To simplify the distinction, a leader is an agent of change. They seek change; they
seek to take their club, team or organisation to a new place, a better place. In contrast,
the role of a manager is to maintain consistency and the status quo. Managers who are
good at the process side of their job are thus the antithesis of leaders as they actively
seek what great leaders repudiate: routine.
Leadership in sport management 161
HOW TO DEFINE LEADERSHIP
When we consider what a leader is, what leadership is, it seems so simple. Well, it is
leading, isnt it? But what does it consist of? What constitutes leadership?
There are a multitude of denitions of leadership. To touch on a few, Jacobs (1970,
p. 232) dened leadership as An interaction between persons in which one presents
information of a sort and in such a manner that the other becomes convinced that his out-
comes will be improved if he behaves in the manner suggested or desired. Likewise,
Donelly, Ivancevich and Gibson (1985, p. 362), dene leadership as an attempt at inuen-
cing the activities of followers through the communication process and toward the attain-
ment of some goal or goals. Finally, Northouse (2007, p. 3) proposes that leadership is a
process whereby an individual inuences a group of individuals to achieve a common goal.
Leadership: power and inuence

What emerges from these denitions is that leadership, for all its different foci and char-
acteristics, is simply, at its core, a process of inuence. It is about a person trying to
achieve desired outcomes (goals, or a vision perhaps) through their inuence on or of
others. So how is this inuence transmitted? How can a leader inuence others? This is
where the idea that leaders have power comes into play; that leadership is the applica-
tion of some form of socially prescribed power in order to inuence others.
THE FIVE SOURCES OF POWER
Unfortunately, we tend to view power through a negative lens; however, it is not, in and
of itself, a bad thing or automatically a dictatorial expression of social control. Put simply
power may be expressed as the ability to get someone else to do something you want
done. So where does this power come from? French and Raven in 1959 proposed that
there were ve sources of power: reward, coercion, legitimacy, expert and referent power
(French & Raven, 1959). They proposed that three (reward, coercion and legitimacy)
were embedded within the position or the formal role of the individual, meaning a man-
agers ofcial title, their role within the organisational hierarchy and/or their level of
authority. Anyone in the position has (potentially) the commensurate level of positional
authority. In contrast, French and Raven stated that the remaining two (expert and ref-
erent) resided in the individual, or the person. These were reective of underlying qual-
ities, characteristics or behaviours of the individual that that person then brought to the
role of leader. These ve sources are detailed in Figure 11.1.
Reward power
Reward power is simply the ability the leader has to inuence others through rewards.
This reward obviously has to be of value to the subordinate for it to have the potential
to inuence them. The capacity to offer rewards is enshrined within the authority of the
position itself; anyone within a given position has the capacity to offer commensurate
rewards. Such rewards typically include pay, a bonus, a promotion or other benets.
Reward
POSITIONAL
AUTHORITY
Coercion Legitimacy
INFLUENCE
PERSONAL
Expert Referent
FIGURE 11.1 /iwiVivi>`>i`viVE,>i]x
A sport example may be the manager of a football team. The manager may offer a player
an increase in their match payments, based on them improving their performance.
Coercive power
Coercive power typically refers to the leaders ability to punish, based on their positional
authority. The application of coercive power may include threatening the subordinate
with some form of discipline, a pay cut, removal of benets or position. Coercive power
only has impact if the subordinate knows that the leader will follow through with it. In
the case of the manager of the football team, examples of coercive power may include
threatening to drop a player to the reserves based on their poor performances, removing
the captaincy or vice-captaincy from them or ning them for poor off-eld behaviour.
Legitimate power
Legitimate power is ensconced in a leaders position (Raven, 2008). This power is con-
ferred by the very nature of the authority inherent in the position within the organisa-
tion. The marketing manager of a professional baseball club has legitimate authority over
all the staff who work in that department simply through the nature of their position.
This power confers the ability to inuence via the authority of the position.
An example of the use of legitimate power would be if the marketing manager of the
baseball club requested staff to assist with a charity drive for the club. Many staff may
well agree to participate, even though it may be outside their formal role. However,
being asked by the individual with legitimate power due to their position or status in the
organisation, often gives the request legitimacy, outside of coercion or potential reward.
Expert power
Expert power relates to the potential an individual has to inuence others due to their
specic, or special, expertise. This may include the leader possessing experience, know-
ledge, skills or information that is central to how they are perceived in their role. It gives
them a credibility that is based within them as an individual, rather than due to their
position. A pertinent example may be a former Olympic champion swimmer who is
working as a professional swimming coach. The coach is providing feedback to their
athlete on their stroke. The swimmer would listen to the coach due to their expertise.
(Ill listen as they have the knowledge and experience and they are a former champion,
so theyre probably right.)
Referent power
Referent power is the ability of the leader to inuence their subordinate through identica-
tion. French and Raven (1959) dene identication as a desire for an individual (in this
case a subordinate) to emulate the other. This is usually driven by an attraction to that
leader, often due to admiration in which the leader is held. This could be due to their cha-
risma, the interpersonal relationships they have formed with subordinates or even their
charm. Interestingly some leaders may not be aware of the level of referent power they
have over their followers. It is heavily based on how the subordinate views the leader, and
thus the power is conferred by the subordinate to the leader. A pertinent sport example
may be a beloved former player returning to coach their old team. Their charisma and the
desire of the players to identify with that coach would be reective of referent power.
HOW TO TURN POWER INTO INFLUENCE
To be a good and successful leader, it is clear that you need to appropriately employ all
ve sources of power. Simply relying on reward and coercion will not maintain motiva-
tion of employees, followers or subordinates; it will not facilitate them buying into your
vision of leadership. Threats of punishment, for example, will often result only in very
short-term compliance and may create feelings of resentment. Likewise, a highly charis-
matic individual with very limited expertise, or with no legitimate authority, may not be
able to maintain inuence as people may simply question their requests. (You dont
know anything about this, so why should I follow your direction? or Youre not my
boss. I dont have to answer to you!) Exactly how the leader applies power will deter-
mine the level of inuence, and thus compliance, they have. This could range from:
s ENTHUSIASTICCOMMITMENT
s INDIFFERENTCOMPLIANCE
s RELUCTANTOBEDIENCETO
s FULLRESISTANCE
Still, Schemerhorn et al. (2014) suggest that personal power often is the difference
between an outstanding leader and a mediocre one. A leader who has legitimate power
has the ability to direct, but they may not have the ability to inspire, to get the subordi-
nate or follower (be it an employee, a player or a political supporter) to buy into the
vision they are articulating. From this perspective expert, and notably referent power,
is key.
The importance of the leader as a referent, as a source of motivation and one who
reects an aspirational quality for followers is the basis of some of the key contemporary
theories relating to leadership: transformational, authentic and servant leadership. The
essence of these theories is explored, and then why they are increasingly gaining traction
as critical leadership theories to understand in contemporary sport organisations.
TRANSFORMATIONAL LEADERSHIP
Transformational leadership was rst proposed by Burns (1978) as an extension of

charismatic leadership. Charismatic leaders were seen as individuals possessing a high
degree of referent power. This would lead them to have the potential to motivate
their followers, players or supporters towards their goals. However, transformational
leadership, while drawing upon charismatic leadership, goes further. A transforma-
tional leader is more than a charismatic leader as they transform the organisation as
well as the people that follow them. Most notably, transformational leadership doesnt
just simply consider the qualities and attributes of the leader; it focuses on how that
leader is perceived by their followers. Bass and Riggio (2006, p. 4) dene transforma-
tional leaders as:
Those who stimulate and inspire followers to both achieve extraordinary out-
comes and, in the process, develop their own leadership capacity. Transforma-
tional leaders help followers grow and develop into leaders by responding to
individual followers needs by empowering them and by aligning the objectives
and goals of the individual followers, the leader, the group, and the larger
organization.
Transformational leaders therefore benet both the follower and the organisation. They
create new leaders. They appeal to higher-order motives of followers, such as their
players. They inspire followers to act beyond their own vested interests and in the
broader interest of the organisation. Transformational leaders are agents of change and
therefore an organisation and its members are different after the actions of a transforma-
tional leader. Transformational leadership was originally conceptualised as comprising
four dimensions or components:
Inspirational motivation
Leaders can inspire their followers to a higher level of performance. Likewise they
increase the followers expectations about what is achievable (Kirkbride, 2006). Many
coaches of sport teams highlight inspirationally motivating leader behaviour. Coaches
ideally provide their players or athletes with aspirational and attainable future goals,
stimulating their players own desires to want to achieve greater on-eld success.
Idealised inuence
Akin to charisma, idealised inuence relates to the leader possessing the qualities and
behaviours that mark them as a role model and someone to aspire to emulate. It encom-
passes their ability to model or reect their beliefs and values in how they lead, which in
turn provides a model with which followers can align themselves.
Intellectual stimulation
As agents of change, transformational leaders encourage creativity and innovative think-
ing among followers. They promote the need to change the existing organisational para-
digms and think proactively and outside the square.
Individualised consideration
A transformational leader promotes an ethos of support and personal focus on followers,
their goals and aspirations. They seek input from followers and recognise the contribu-
tions and ideas of members.
Case study: Sir Graham Henry, All Blacks coach

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AUTHENTIC LEADERSHIP
Although authentic leadership has not gained the same level of attention in the sport
management literature as some other theories (notably transformational leadership), it is
highly likely that far more will be heard of this theory in relation to sport leadership over
the next decade.
Authentic leadership draws from the notion of behavioural integrity, that is, an
authentic leader will walk the talk. Put simply, authentic leaders are those whose
actions reect their stated values and beliefs. Luthans and Avolio (2003) suggested that
from this perspective the leaders character, rather than the style they employ, is most
important. The authentic leader, they suggest, is typied by being self-aware, cognisant
of both their strengths and their weaknesses. They also have a keen understanding of
how they, as a leader, can affect others. This awareness is conducive to creating an
organisational environment that allows for self-development among employees.
Whitehead (2009) suggested that authentic leaders have three key characteristics:
1 They are self-aware. They seek improvement and consider the well-being of their
followers.
2 They are guided by a strong ethical and moral framework that engenders a strong
degree of trust in them among their followers.
3 They are committed to their organisation being successful, as long as the framework
of their values is adhered to.
Authentic leadership has been linked to a range of positive organisational outcomes. For
example, organisations with authentic leaders have a higher level of employee satisfac-
tion, as well as higher organisational commitment among their employees (Jensen &
Luthans, 2006). In addition, improved citizenship behaviours, higher performance and
reduced intention to leave have also been identied as among the positive outcomes of
an authentic leader (Davis & Rothstein, 2006).
Therefore authentic leadership is part of a process that leads to improved perform-
ance. The alignment between a leaders values and behaviours gives them credibility in
the eyes of their followers (Gardner, Avolio, Luthans, May & Walumbwa, 2005). This
personal and social identication results in higher trust among subordinates, as well as
other more affective qualities, such as more positive feelings and hope, which in turn
lead to improved performance. This is articulated in Avolio, Gardner, Walumbwa,
Luthans and Mays (2004) model of the authentic leadership process (see Figure 11.2).
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So how does this idea of authenticity pertain to sport leadership? Authentic leaders
would seem to have the potential to be particularly positive for sport organisations
because they facilitate and support the group members self-determination and creativity
(Ilies, Morgeson & Nahrgang, 2005). In some ways authenticity appears therefore to
augment transformational leadership. If a transformational leader inspires followers to
buy into their vision, then the authentic leader assures followers that the vision they are
buying into is a worthwhile one. This has particular relevance for managers or coaches of
sport teams.
Case study: Tony Dungy, NFL coach

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SERVANT LEADERSHIP
Dungys approach ties in to the nal type of leadership approach, servant leadership,
which has been gaining recent traction and interest (Greenleaf, 1977). In essence,
servant leadership proposes that the leader reverses the traditional view of the organisa-
tional hierarchy, and that rather than viewing their followers as people through which
they achieve their goals or visions, they should view followers and the followers inter-
ests as at the heart of their responsibility as a leader. Greenleaf (1977) proposed that a
servant leader is a servant rst and foremost to their organisation and to their followers.
The idea of service therefore is that the leader has a responsibility to nurture, to develop,
to defend and to empower their employees or followers.
In the context of sport, Vella, Oades and Crowe (2010) suggest that servant leader-
ship is dened by thee core characteristics of the leader. The leader has:
1 trust
2 humility
3 a commitment to the service of others. This includes empowering their followers,
demonstrating empathic understanding to them and their situations, being fair and
demonstrating principles of social justice, and encouraging and facilitating personal
growth among their followers.
The servant leader is therefore a mentor and a guide to the follower, one who places
the followers needs rst, and in doing so, improves the outcomes for the organisa-
tion. The effectiveness of servant leadership in sport was highlighted by Riecke, Ham-
mermeister and Chase (2008) in their study of high school basketball players. They
found that if the coach was perceived as higher in all three of the characteristics out-
lined previously, then the players reported higher levels of intrinsic motivation, satis-
faction, task orientation and performed better than players with coaches who rated
lower in servant leadership. In particular, trust and a commitment to service were
particularly notable in their effect. Greater expression of the qualities of a servant
leader increases the referent power of the leader. This increases the level of inuence
they have with their followers. The followers are more likely to buy into the leaders
vision and thus a positive symbiotic relationship that serves both leader and follower
is created.
Case study: Claudio Ranieri, Leicester City coach

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This chapter introduced the concept of leadership, seeking to dene it and to distinguish
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increasingly critical to sport performance in organisations.
REVIEW QUESTIONS

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REFERENCES
] ]>ì]7]7>L>]"]>]E>],{1V}i>\
> i Vi L V >iV i>ì >V vi >ì >` Li> Leadership
Quarterly, 15]nqn
>] E,}}], Transformational leadership ì`>>] \>iVi -
baum Associates.
]nLeadership i9] 9\>iE,
LL]nLeadership: Strategies for organizational effectiveness i9] 9\

"
>]iE,i]>>,/iivviVviiVii`Li>>i}v>-
agers on employee attitudes: A meta-analysis. Journal of Business Ethics]{]{q{
i] ] >ViV] E L] nx Organizations: Behavior, structure, processes
xi` i9] 9\V>
}]/The mentor leader: Secrets to building people and teams that win consistently. Carol
-i>]\/`>ii
iV],E,>i] x/iL>ivV>i
>} `]Studies in social
powerxqL]\,ii>V
iiv>V
>ì]7]] ]>]]>],E7>L>]"x
>iiii>i
ivL>i`ìv>iVi>ì>`viìiiLeadership Quarterly, 16]{q
iii>v],Servant leadership>>] \*>*i
i],]}i]*E >}>}]xiVi>ì>ì`>iViLi}\
1ì>`}i>ìqviViLeadership Quarterly, 16]q{
>VL] / " Leadership and exchange in formal organizations. Alexandria, VA: Human
,iVi,ii>V"}>>
ii]-E>] iii>>iVi>ì\>Viii>ì
Leadership and Organization Development Journal, 27]{q
Lì] * ii} >v>> i>ì\ /i v >}i i>ì ì >V
Industrial and Commercial Training, 38]q
i]E*i] <nn]/ii>ìV>i}iSuccess]n
>]E] iVi>ììii-
>i] E
, + `]Positive organizational scholarship {qxn->>VV\ iiii
i]*Leadership: Theory and practice{i`]/>`">]
\->}i
,>i] n /i L>i v i >` i ii>V ì v ii> yiVi

Analyses of Social Issues and Public Policy, 8]q
,iVi] ] >iii] E
>i] n -i> i>ì \ i >>`} v
ivviViV>VLi>]International Journal of Sports Science and Coaching, 3]q
-Vii],]>`]*]*i]]7`]*]-]EV >] {Manage-
ment foundations and applications ì`]>*>VwViìLi\7iE-
6i>]-]">ì]E
i]/*/i>V>vV>Vi>ììV>V-
ing practice: Current state and future directions. International Journal of Sports Science and Coaching,
5]{xq{{
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Educational Management Administration and Leadership, 37]n{qn
CHAPTER 12
Soliciting sport sponsorship

T. Bettina Cornwell
Chapter objectives
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Key Terms: Sponsorship; Marketing; Sport; Finance; Communications
INTRODUCTION
Sponsorship is big business. Projected worldwide spending for 2016 is US$60.2 billion
(IEGSR, 2016). Importantly, sponsorship spending tallied as deals do not account for
the additional spending that brands engage in to leverage the sponsorship relation-
ship. There is also a vibrant grassroots level sponsorship that is not accounted for
in these numbers, such as when a local orthodontist sponsors a community youth
baseball team.
Sponsorship is dynamic. It is continuously reinvented in practice. For example,
sponsorship used to be largely concerned with brand name awareness when in a
stadium, or at an event, signage was sold but has evolved to be a sophisticated brand-
ing platform. Sponsorship is complex and becoming more so over time. What many
people think of as a relationship between a sponsor and a sport property is more often
a relationship between a portfolio of partnerships held by a brand and a roster of part-
nerships held by the sport property. Added to this are beneciary charity relation-
ships, often held by sports, as well as myriad third party intermediaries. These
characteristics, dynamism and complexity make sponsoring both interesting to study
and challenging to manage.
Soliciting sport sponsorship 173
DEFINING SPONSORSHIP
Sponsorship can be considered an exchange between a sponsor and a sponsee whereby

the latter receives a fee, or value, and the former obtains the right to associate itself with
the activity sponsored (Cornwell & Maignan, 1998). Since the word sponsee is not
widely used, another term for the entity sponsored has evolved in use and that term is
property. Sport property is short for sport property rights holder since this partner
holds the rights of association such as the use of trademarks (e.g. the Olympic rings) and
other assets such as the physical venue where sports are played.
Sponsoring begins with a deal between the sponsor and the property but for large-
scale relationships, as much or more can be spent on leveraging the contractual relation-
ship as is spent on establishing it. Leveraging is known as the investment in
communicating about and through the sponsorship that is in excess of the sponsorship
deal. This spending might be on advertising that is thematically tied to the sponsorship,
promotion or social media campaigns, just to name a few examples. Activation is a term
reserved here, as suggested in Weeks, Cornwell and Drennan (2008), to describe com-
munications that promote the engagement, involvement, or participation of the sponsor-
ship audience with the sponsor (p. 639). Activation is the portion of leveraging that is
engagement oriented such as a booth at an event where individuals can interact with the
brand or an online photo contest where brand use images are posted. Bringing all this
together is the term sponsorship-linked marketing, which is dened as the orchestra-
tion and implementation of marketing activities for the purpose of building and commu-
nicating an association (link) to a sponsorship (Cornwell, 1995, p. 15). In the main, it is
the degree of this leveraging that typically determines the success of the relationship,
and this depends on further investment in nancial and human resources.
UNDERSTANDING WHY COMPANIES SPONSOR
Historically, sponsorship was thought of and utilised like advertising with the main goal
being brand awareness. Greater brand awareness is thought to be contributory to even-
tual product and service sales for the sponsor. While awareness is still important, com-
panies want more than simple logo exposure and the hope of eventual sales.
Brands are not per se boring, but they are rarely as exciting as sport, arts, music or
dance. For example, Tide brand laundry detergent is perhaps not as exciting as the
NASCAR auto racing that the brand sponsors. Brands seek to align with properties to
build awareness but also to build brand image. Brands borrow image and meaning from
the characteristics of events (Gwinner & Eaton, 1999) and, while less extensively docu-
mented, properties borrow image from brands. A good example here would be the
iconic brand value that the SF 49ers have in their stadium sponsor, Levis.
Considering that brands have portfolios of properties and properties have rosters of
sponsors, it has become ever more important to understand the effects of combinations
of relationships on outcomes of interest. In a study of a two sport property portfolio,
Chien, Cornwell and Pappu (2011) found that when a brand is combined with a sport
and a charity, the resulting combination is best able to promote a particular brand
personality perception when both elements in the portfolio share the same type of
174 T. Bettina Cornwell
personality. For example, the sport of rugby and the charity Greenpeace, known for
undertaking drastic measures in support of its environmental cause, both have a rugged
image and, in combination, are able to move this perception of ruggedness to a brand. In
contrast, a more sophisticated sport like golf may not combine well with the ruggedness
of Greenpeace in inuencing the image of a brand as rugged.
In addition to awareness and image, another popular goal of the sponsor includes hos-
pitality or a place, time and special occasion where clients or future customers might be
entertained. For many brand categories, and in particular for business to business trans-
actions where cultivation of a transaction may take years, hospitality may be the main
reason to sponsor. Another obvious goal for some product categories is direct on-site
sales. A good example here is pouring rights for drinks at a stadium and another would
be the sale of team merchandise.
Other reasons for a brand to sponsor are product demonstration or trial. For example,
in auto racing, motor oil treatment STP, when utilised in race cars that are associated
with winning, might be perceived as an effective oil additive to improve the perform-
ance of any car (Cornwell, Pruitt & Van Ness, 2001). Events might also be an ideal place
to distribute products to the consumers most likely to buy them in the future. Here the
ubiquitous swag bag of running events comes to mind. This is where many bars, drinks,
gels and supplements have been introduced to the running community.
Sponsoring may also hold a corporate social responsibility (CSR) goal. Companies
often see sponsoring local events, particularly grassroots non-professional sport, as a way
to interact with and give back to their community. This may be envisioned in many
ways. A sponsorship may respond to a particular need in a community such as a park or
a homeless shelter. Social responsibility may be enacted through sponsorship by partner-
ing with an existing charity or non-prot to support their goals, as when automaker
BMW teams with Habitat for Humanity to build houses for those in need of housing.
Relationships might also stem from perceptions of responsibility to the local community
as when a company is headquartered in the same city as a professional team.
Naturally, any single sponsorship might allow a company to communicate with and
serve several stakeholder groups at once. On the other hand, some companies may
engage some partner relationships to speak to their consumers and others to speak to the
interest of their board of directors. Clearly, the kinds of goals that brands may hold for
sponsoring are as endless as the creativity of the sponsor and the willingness of the
partner.
UNDERSTANDING WHY PROPERTIES WANT

SPONSORSHIP
For many sport teams, leagues, events and activities, sponsor investments form part of
the budget. For instance, Olympic sponsorship partner investments account for nearly
half of the Olympic budget. Many sport properties will have a set of assets they seek to
sell to prospective sponsors such as opening ceremony sponsor, ofcial supplier or event
title sponsor. Historically, assets were packaged as levels of sponsor commitment such as
gold, silver and bronze but there is sustained movement away from such prepackaging
towards a sponsor objectives oriented discussion of suitable assets. Support, once agreed
upon, may be nancial or value in kind (VIK). A typical VIK example would be when a
brand provides products used or consumed at the event, such as shirts for players, sport
drinks for participants or time-keeping equipment for competitions. Values might also
come from human capital such as volunteers or experts that assist in developing a sport
offering.
Traditional discussions of sponsoring from the perspective of the sport typically centre
on the nancial contribution of sponsors to sport. From the grassroots softball team to
the professional F1 auto racing team, sponsorship supports the ability to play and
compete. That said, many sports are now harnessing the brand building capabilities of
their partnerships. Sport properties are often interested in the leveraging commitment
that brands bring to a deal. When brands spend to communicate a link to a property this
can increase awareness and image for the sport. In a sense the brands advertising, when
they are integrated in it, becomes the sports advertising too.
In addition to nancial support and brand building for the sport, sponsors often bring
and share their expertise. Beyond the provided expertise that might be written into a
contract, companies as sponsors may be sought because they have marketing or manage-
ment expertise that the sport needs.
SPONSORSHIP GOALS IN CONFLICT
In that companies and sports have differing goals, there are naturally arising areas of con-
ict. First, in most instances, it is in the sports best interest to gain a long-term commit-
ment from a sponsor. This has the advantage of securing stable funding but also reduces
the cost of recruiting new sponsors. While a long-term commitment on the part of a
company to a sport property should have many communication advantages, it might also
be advantageous to have the exibility of a short contract (perhaps with the rst right of
refusal to renew).
A second area that is rapidly changing is that of exclusivity. Historically, companies
have sought relationships for their brands that allow them to be the only brand in the
product or service category, such as the only beverage or the only automobile brand
associated with the event. In contrast, the sport property will likely want to slice the
cake thinly by offering a beverage sponsorship in, say, water, sport drink and tea because
these may bring more revenue. They may further seek sponsorships that are not exclu-
sive but that are also not in conict by having, for example, a luxury automaker and an
economy automaker where the price point for the vehicles, and thus the markets for
them, do not overlap.
Another area with two views would be price. Naturally, the company wants more
assets for less money and the sport property will want more money with a limited com-
mitment of property assets. Agreement is reached on price and other important charac-
teristics such as duration and exclusivity, via negotiation. With large-scale sponsorships
this will likely also involve intermediaries that perform a number of functions. For
example, after the 2016 move of the National Basketball Association (NBA) to allow a
three-year trial of an on-jersey sponsorship patch, most teams sought an outside consult-
ant to ascertain the approximate market value of their new sponsorship real estate.
In summary, there are many sponsorship-specic goals that may be congruent or in

conict as sponsor and sport properties seek to work together in a relationship. It is,
however, important to recognise that meaningful, long-term sponsorship relationships
can inuence a range of goals for each entity that may be, at rst glance, not sponsorship
related. Figure 12.1 shows a simplied set of goals for a typical sport property and
sponsor that may be, but are not necessarily, advanced by the sponsorship relationship.
Many of these have been discussed above. Also in Figure 12.1 is a list of partnership
success characteristics that support the move from simple sponsorship solicitation to
partnership building.
PARTNERSHIP SUCCESS CHARACTERISTICS
In a series of studies across several continents and sponsorship managers on both the
sponsor and property side, researchers (Farrelly & Quester, 2003, 2005a, 2005b; Far-
relly, Quester & Burton, 2006) have developed a set of characteristics that successful
relationships in this space possess. Akin to almost any relationship in any context, trust
and commitment are important to sponsorship. What they found was that, particular to
Sport property goals Sponsor goals

Awareness/ticket/event/ Customer and client
merchandise sales awareness/image/sales/
Sponsorship relationship
relationships
Financial support for
operations/venue, Employee esprit
employees/players de corps/productivity/
employer branding
Community social
support/volunteers Acceptance/facilitation
acceptance/investment in channels of distribution
Traditional and social Social and financial

media coverage/ investment/
revenue/image reputation/cooperation
Partnership success
characteristics
Trust
Commitment
Strategic compatibility
Goal convergence
Satisfaction
FIGURE 12.1 Sport property and sponsor goals and partnership success characteristics
sponsorship, commitment is often measured as key leveraging investments made by part-

ners and, in particular, sponsors. Further, commitment to the relationship as leveraging
was related to economic satisfaction with the relationship, whereas trust was related to
both economic and non-economic satisfaction. In essence, as shown in many contexts,
trust is central to relationships.
Another aspect that makes for success in partnerships is strategic compatibility. This
is found when partners have goals that complement one another and what many in prac-
tice call overlapping values. For example, in the goals of the sport property, to have
strong traditional (e.g. broadcast) and social media are central both for revenues and for
image. Likewise, sponsors seek presentation in these media so as to develop awareness
and image of their rm or product. Clearly, working together on plans involving both
parties would be an aspect of strategic compatibility.
Goal convergence is another aspect of a successful partnership but this may develop
over time. Farrelly and Quester (2005b, p. 58) in their work with the Australian Foot-
ball League (AFL) offer the following as an example of promotion plans oriented to
mutual investment:
Partners must present a detailed picture of where they wish to take their respec-
tive brands, and how sponsorship will contribute to this. There is no point in us
developing a detailed plan if it does not have complete (real) support of the AFL.
This is the future of sponsoring, where sponsor and sponsee come together synergistically.
A last comment on successful partnerships comes from a discussion of the sources of
failure. Farrelly (2010) found that problem areas in sponsorship often arise when commit-
ment asymmetry is present, where one of the partners feels that they are giving or doing
more than the other. Another source of failure stems from there being a capability gap, in
particular when the sport property does not have brand-building know-how. Sponsors felt
that properties did not have the capabilities to blend the resources of the organisations in
order to advance goals. While not discussed in the research as a source of this challenge, it
is easy to see how those with a sport background with the property and those with a busi-
ness background with the brand have differing views on sponsorship enactment.
SOLICITING SPONSORSHIP
While it is most frequently the sport property that makes the rst move and solicits a
sponsorship relationship, often companies or brand managers who know what they want
open the conversation about sponsoring. For those sport properties seeking sponsorship,
the starting point is typically a list of potential sponsors. Unfortunately, the second step
for many sport properties is then to prepare a sales pitch that is general in nature rather
than specialised to match the goals of the sponsor. This is in part understandable since
learning the potential sponsors goals and objectives relative to a sport would require a
direct conversation with them. When the rst meeting is the pitch, there is little possib-
ility of a truly tailored offering. This shortcoming of a pitch to understand the brand may
lie with the sport property but may also be brought about by the limited time a sponsor
offers for getting to know each other before a pitch is made.
Sponsorship sits within the marketing plan for a company or brand. Historically, spon-
sorship was thought of as tactical but it has become more and more strategic over time, to
the point where, for some companies, it essentially constitutes the driving force of the mar-
keting plan. Sponsoring is typically seen as a cost of marketing or promotion.
Within the sport property at a professional team or major event, there will be a spon-
sorship sales team. Again these differing vantage points may form part of the challenge
in nding and maintaining a successful partnership.
AMBUSH MARKETING
Any discussion of sponsorship brings up the exciting topic of ambushing. Townley,

Harrington and Couchman (1998, p. 1) dene ambush marketing as:
Unauthorized association by businesses of their names, brands, products or

services with a sports event or competition through any one of a wide range of
marketing activities; unauthorized in the sense that the controller of the commer-
cial rights in such events, usually the relevant governing body, has neither sanc-
tioned nor licensed the association, either itself or through commercial agents.
The main goal of ambushers is similar to that of true sponsors: to associate with events,
teams or leagues and benet from their popularity. This association may be confusing for
stakeholders or may take awareness or image from the true sponsor and thus devalue
their investment.
Given the goal of building an association to a property or event, ambushing can take
myriad forms. Chadwick and Burton (2011) developed a typology of ambushing activ-
ities but ambushing is a moving target and with evolving technologies. The ways to
ambush are endless.
Cornwell (2014) argues that the various forms of ambushing can be described along two
dimensions, intent and legality. These dimensions produce four groups of ambushers:
1 Intentional and illegal ambushing sets out to gain from some form of interaction in a
sponsored context and willingly violates the law. For example, appropriating the
marks used by a property without permission would be illegal. This form of spon-
sorship is less and less common.
2 Intentional but not illegal ambushing activities come close to the line in the sand
but stay on the legal side of activities. A good example here is sponsoring athletes at
an event and leveraging these associations so much that audiences assume the brand
to be an event sponsor.
3 Unintentional and legal ambushing, also known as incidental ambushing, happens
when a brand is seemingly appropriate as a sponsor and so is assumed to be.
4 Unintentional and illegal ambushing are not really ambushers at all but rather violate
ambushing laws in the process of marketing products.
The important point about an ambusher is that they do not have a contractual agree-
ment that allows their association with a sport property. Interestingly, it is often the
sport that serves as the policing agent in sponsorship relationships since the value of their
asset is reduced if ambushing takes value from their sponsor. This is, however, a chal-
lenging position between the true sponsor and ambusher and can drain resources if there
is an important contested ambush.
As an example of how important ambushing is to sponsorship partnerships one can con-
sider the recent changes to the Olympics Rule 40. The International Olympic Commit-
tee (IOC) Rule 40 decreed that during the Games any advertising featuring Olympic
athletes had to be from ofcial partners. Given that many Olympic athletes have a sponsor
before going to the Games, this was argued by athletes to be a deprivation of both media
attention and sponsorship income during a period in which their value would be the
highest. After years of lobbying, the athletes were successful in amending the rule. Under
the new limitations advertising cannot feature the term Olympics or even summer or
winter but can promote already sponsored athletes in contexts that signal their athletic
position and status. The following is an example of the careful path taken in the lead-up to
the 2016 Olympics to avoid clashing with the Rule 40 limits:
In March, Under Armour released a commercial showing Phelps swimming to a

song called The Last Goodbye and then facing a ash of cameras images that
evoke his Olympic successes. Phelps is aiming to qualify for Rio in what would
be his fth and potentially nal Games.
(Baker, 2016)
Michael Phelps is strongly associated with the Olympics, so the argument is that his
Under Armour relationship can be linked to the Olympics without violating the rule but
at the same time offering considerable awareness to his current sponsor.
MEASURING SPONSORSHIP
One of the single largest challenges in sponsorship as a business activity is to measure the
outcomes stemming from sponsoring. The tricky part is to separate the effects of spon-
sorship from all the other inuences to like, buy or recommend a brand.
Many declarations of sponsorship success fail to capture the starting state of brand
awareness, attitude or purchase intention for the sponsor. Were individuals already
aware of the brand? Did they already like it? Was it the signage at the venue that was
successful or the fact that the brand also held an endorsement contract with a popular
player or both? The sponsored property is often asked to supply information to the
sponsor that helps them make sense of their investment. It is also common for the brand
to pay for the services of an independent third party to measure sponsorship outcomes,
or on occasion to do this work themselves. Interestingly, and somewhat surprisingly,
there is a dearth of sponsorship measurement. One international survey found two-
thirds of sponsors do not always or almost always measure sponsorship effectiveness
(Meenaghan, 2011, p. 34); however, the trend is towards increasing measurement and
accountability in sponsorship spending.
Measuring is the yardstick by which one learns how a sponsorship did relative to an
objective. Was brand recognition after the sponsored event higher than before the event?
When several sponsorships are in a portfolio, one question that is often asked is which
ones are performing relative to criteria and which are not? This requires an evaluation
across properties relative to outcomes such as recall, recognition, liking, preference,
return on objectives (ROO) or return on investment (ROI). Another tricky part here is
to nd a common metric for comparison. Sometimes, this is simply not possible. Spon-
sorships that are oriented to hospitality may collect contacts and business cards but
cannot be easily evaluated by the same metric as products that are sold on site.
To the extent that the sponsored property can support measurement of the outcomes
for the sponsor, a property makes their offering more valuable. Measurement that
benchmarks against other sponsors and shows trends is more valuable than absolute
numbers. Measurement that can feed into the sponsors overall evaluation system, if they
have one, also makes the property more valuable. Lastly, measurement that is trust-
worthy and free from biased reporting is the key to a long-term relationship.
TRENDS IN SPORT SPONSORSHIP
Trends in sponsorship emanate from the property, the sponsor and from the broader
environmental context. One clear trend among leading sport properties is to consolidate
sponsor rosters with the goal of having fewer larger sponsors for longer. The grounds for
this goal are numerous. Having fewer sponsors to support reduces the servicing burden
for the property and at the same time increases the probability of being able to offer
quality service due to a smaller roster. To have fewer sponsors, each contributing a larger
portion of the sponsorship pie, also reduces the energy that must be invested in soliciting
new sponsors. Lastly, longer sponsorship relationships have the potential for better spon-
sorship outcomes for all involved.
Trends in sponsoring from the sponsor perspective begin with increased demands for
exibility to meet communication, marketing and other organisational goals. Companies
and brands as sponsors are ever less willing to take asset packages that do not ideally t
their goals. Another trend is towards more integrated relationships with other sponsors
of the property; while this is being advanced by some proactive sport properties, it is
often sponsor-led.
Sponsorship grew in the last decades from more properties being sponsored that had
not previously had sponsors. Sponsorship also grew as new sports came into being such
as action sports. The latest trend, one that some may dispute as being sport, is the rapid
expansion of eSports and the similarly rapid expansion of eSports sponsoring.
SOLICITING SPONSORSHIP CASE EXAMPLE
While eSports may not be a traditional sport, it has all the elements of one: teams,
leagues, competitions, channels and sponsorship. While some might consider it a com-
petition rather than a sport, it is arguably no less a sport than is auto racing. In a sense,
looking at eSports as a case study allows one to see the dynamics of sponsoring at play.
Just like any other edgling sport, it started small but the speed of growth witnessed in
the last few years could only be possible in a space that is so technology based. ESports,
according to NewZoo, a research rm focused on the digital game market, will surpass
sports like ice hockey and American football in terms of global followers by 2017. Global
revenues were US$325 million in 2015 and estimated to exceed US$1 billion by 2019.
The problem is that this new sport wants sponsorship from mainstream brands but at
the same time is reluctant to become mainstream and alienate their core audience. Both
enthusiast core audiences and occasional viewers number over 100 million each year.
The eSports demographic is largely under 35 years of age and therefore very attractive to
potential mainstream sponsoring companies. Big brands are worried when considering a
new sport with an evolving structure; how will disputes be settled, how will they be pro-
tected from ambushing? How can a rising entertainment sport attract new companies
and their brands as sponsors? At the same time, how can brands reach the attractive
gaming market without making a misstep with the gaming audience and with their
current consumers?
The eSports ecosystem for competitive gaming consists of both amateur and profes-
sional gamers, often organised as teams. For example, Cloud9 is a US based team that
began competing in League of Legends, a multiplayer online battle game published by
Riot Games. Cloud9 competes in the North American League of Legends Champion-
ship Series and has teams that compete in other popular games and competitions such as
Call of Duty and Counter-Strike: Global Offensive. As in traditional sports, they have a
logo, a website and sell merchandise to avid fans; unlike traditional sports, an event will
have a number of different games at a single tournament. A comparison could be made
here to the Olympics. The ecosystem also includes media channels, as does the tradi-
tional sport ecosystem. For example, Twitch is a live streaming platform owned by
Amazon and devoted to gaming.
The game play can be confusing to the newcomer and the speed of play can be
likened to that of a hockey puck travelling over digital ice. On the one hand, it is very
accessible because anyone could have tried gaming, unlike auto racing, which has limited
participation and many viewers. On the other hand, the constant evolution of games and
their complexity makes it challenging for the non-player to catch on or catch up.
Terms borrowed from linguistics are helpful in describing the relationship of brands
to eSports properties: emic and etic. Emic brands are brands tightly related to the spon-
sored activity, whereas etic brands are outside this realm. Similar terms in traditional
sport, such as functionally linked products and services, are used in the sport in some
way and image-linked brands are connected by concepts or advertising. An emic brand
activating in eSport is iBUYPOWER, a gaming personal computer rm. Their Counter
Logic Gaming PC has three offerings, a basic model, mid-tier and high end (LaFleur,
2015). From their emic view, they tailor and named their product for gamers, they
sponsor teams, they blog about eSport and they engage in banner advertising online.
The etic brand has fewer options, and, at rst, less understanding of the eSport com-
munity and what leveraging and activation options would be favoured. A sponsor
steeped in traditional sport partnerships might sponsor a team and consider magazine
advertising targeted to reach the eSport demographic but this may be perceived as overly
commercial or even old school to the typical eSports enthusiast. The new sponsor also
has little idea of how ambushing might be undertaken in this new context. While venue
ambushing might parallel the kinds of things seen with traditional sports, it is difcult to
assess the online and social media vulnerabilities to ambushing.
How can eSport properties communicate their value and put their potential partners
at ease? How can potential sponsors become more informed about this new oppor-
tunity? How can they build partnerships that evolve into the future and follow the tra-
jectory of eSports expansion?
REVIEW QUESTIONS
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2 How do the goals of sponsor and sponsee differ?
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4 What are ambushers seeking and why is this a threat to true sponsors?
5 Describe the trends apparent in sponsoring and speculate on future trends.
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>i] >ìi},}ì>ì}>}wi`Yahoo Sports,iii`

i v \>ViL>ìi}`>ì}>}wi`
051139360-oly.html.
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Chien, P. M., Cornwell, T. B. & Pappu, R. (2011). Sponsorship portfolio as a brand-image creation
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Cornwell, T. B. (2008). State of the art and science in sponsorship-linked marketing. Journal of Advert-
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Cornwell, T. B. (2014). Sponsorship in marketing: Effective communication through sports, arts and
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Journal of Advertising, 27(2), 121.
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motorsports: Sponsorship-linked marketing and shareholder wealth. Journal of Advertising Research,
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Farrelly, F. J. & Quester, P. G. (2005a). Examining important relationship quality constructs of the focal
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>i]]+ii]*E ],
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iiVi>`V>>L-
ities of successful sponsorship relationships. Industrial Marketing Management, 35(8), 10161026.
i]*E >] `}L>`>}i}ii\/iiv>}i

transfer. Journal of Advertising, 28(4), 4757.
IEG Sponsorship Report (IEGSR). (2016, 5 January). As sponsorship borders fall, spending rises.
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Fall,-Spending-Rises.aspx.
>i]x]n>->V>\}iiv>>iEsports
Observer.
Meenaghan, T. (2011, February). Mind the gap in sponsorship measurement. ADMAP, pp. 3436.
i] * E >] x , ,iii` i v \iìvV}>}`
game-why-esports-is-the-next-major-league-sport.
i]x>>L>i>ii\,iiif{>1-
i>` i > ,iii` i v \iV}>Vi}L>i
>iiiii{>i>ì>
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keting in sports. Psychology and Marketing, 15, 333348.
7ii]
-]
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tion, congruence, and articulation. Psychology & Marketing, 25(7), 637654.
CHAPTER 13
Sport marketing
Brenda Pitts
Chapter objectives
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Key Terms: Sport Marketing; The 4 Cs of Sport Marketing; The 4 Ps of Sport Marketing;
Branding; Sport Marketing Research
WHAT IS SPORT MARKETING?
Sport management professionals at every sport business must develop strategies and
make decisions that will keep the business from failing, but more importantly will make
the business a resounding success. There are many variables that inuence every busi-
ness. Thus, the sport management professional needs to stay informed in order to make
decisions and strategies that will drive the business towards success. Sport marketing is
one of the many management activities within a sport business. Some of those manage-
ment activities include nancial management, operations, manufacturing management,
retail management, human resources management, design management and legal issues
management. Most companies have the resources to hire experts in each area. The sport
marketing professional will be charged with overseeing all of the companys marketing
activities. The activities comprise many different tasks and responsibilities such as deter-
mining the companys product and everything about the product, setting price and
developing pricing strategies, creating an advertising strategy, developing and managing
the companys social media activities, and managing the companys brand.
->i} 185
Sport marketing is derived from its foundational discipline and business activity
marketing. It is important to understand how sport marketing is similar to and dif-
ferent from marketing. Beginning with denitions, one denition of marketing comes
from the American Marketing Association (AMA): Marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large (AMA,
2013). Although the entire world of business comprises numerous and different types
of business, the AMA denition can be applied to and used by marketing profes-
sionals in nearly all types of business. Indeed, it can be applied and used in the sport
business industry. However, it is important to have a denition specic to the sport
business industry. Thus, sport marketing is dened as the process of designing and
implementing activities for the production, pricing, promotion, and distribution of a
sport product to satisfy the needs or desires of consumers and to achieve the compa-
nys objectives (Pitts & Stotlar, 2013, p. 82). As you can see in the two denitions,
there are more similarities than differences. Both denitions speak of creating some-
thing of value (a product) for consumers through the use of processes and activities.
The primary difference is that the AMA denition is extremely broad so as to be
inclusive of and applied to any and every type of business, while the Pitts and Stotlar
denition of sport marketing is focused on only one industry the sport business
industry. Moreover, herein lies the difference between a generic business administra-
tion degree and a sport business administration degree: the generic business adminis-
tration degree is broad and generic enough that the graduate might apply principles
of business to most types of business, whereas the sport business administration
degree is focused on and applied to one primary business industry the sport business
industry.
In brief, every business wants and needs to determine what product is needed and/or
desired by a set of consumers (a target market), how to produce and provide that
product in such a way that consumers will respond by acquiring the product. Therefore,
in brief, it can be said that sport marketing is giving the consumer what they want. It is,
of course, more complex and involves a plethora of variables, processes and activities.
Sport businesses today must use sport marketing as a signicant business function to the
extent that every facet of the company is guided by sport marketing concepts (Pitts &
Stotlar, 2013, p. 83).
WHAT IS THE SPORT BUSINESS INDUSTRY?
The sport business industry is the market in which the products offered are sports,
tness, recreation or leisure activities and may be activities, goods, services, people,
places or ideas (Pitts & Stotlar, 2013). The industry is massive and diverse today. Sport
activity dates back to the earliest human history. Humans have always played sport and
games. This is evident in a number of ways: drawings on cave walls, depictions on
ancient pottery and artefacts uncovered. This means that there were also people who
created, managed and marketed these sports and games. Thus, sport business manage-
ment and marketing must be among the oldest professions on earth. Nonetheless, as a
eld of study and a titled degree, the sport business management academic degree is
186 Brenda Pitts
relatively young when compared to other elds such as law and medicine. This, however,
does not mean that people have not been professionally trained in some way in order to
create the vast sport business industry as we know it today.
Prior to the modern era in which we nd the beginnings of university study offerings
labelled as sport administration, sport management, sport business or sport business
management, those who wanted to work in the industry found other ways to be edu-
cated and trained. These methods usually involved trainer or apprentice programmes
inside sport businesses, or taking courses about sport and courses about business without
a declared degree title other than perhaps physical education, recreation management
and/or business administration. Perhaps the rst sport business degree programme was
offered at the Florida Southern University in the United States in 1949, and perhaps the
rst creation of the title or phrase sports administration is found in a 1964 book that
contains a chapter titled Careers in Sports Administration (Isaacs, 1964). The univer-
sity programme was described as
Florida Southern College, recognizing that baseball business management was a

profession in which no training at the college academic level had heretofore
been offered, instituted at the Baseball Administration School to provide stu-
dents an opportunity to study and learn at rst hand the major problems of the
baseball business executive.
(Isaacs, 1964, p. 136)
Sports, games, play, leisure, recreation, tness and sport tourism have all evolved
to constitute what is today considered one of the largest and most complex business
industries in many countries and as a global business as well the sport business
industry. The primary reason for the growth, development, size and complexity of
this industry is people and their love of sports without people, the sport industry
would not exist (Pitts & Stotlar, 2013). Within the industry, there are numerous
industry segments primarily based on types of product. The largest of these is the
participant sport industry segment. This is the segment comprising all the activities
in which amateurs participate all those who are not professional athletes, or those
who engage in highly competitive and organised commercial sports, from recreational
activities to organised weekend outdoor leisure outings to those millions who parti-
cipate in triathlons and those millions who participate in activities such as sailing.
Some of the multitude of activities include walking, hiking, shing, soccer, boating,
yoga, scuba diving, basketball, golf, riding horses, swimming, sailing, snow-skiing and
many, many more.
The second largest industry segment is the sporting goods industry. This comprises
sport equipment, footwear, apparel and all other gear. As you can imagine, millions
(perhaps billions) who engage in play and/or sporting activities need sport equipment,
gear, footwear and apparel, thus making this industry segment the second largest.
Some of the other segments of the industry include athlete management companies,
professional sport, sport governing bodies, sport business advertising, sport law com-
panies, high school sport, college sport, sport and recreational facility architecture
and construction rms, and sport media and broadcasting companies.
->i} 187
THE SPORT MARKETING PROCESS
The activities of sport marketing are many and range from simple promotional staging to
pricing to strategic planning to multi-year marketing plans. Modern sport marketing is
founded upon and uses the information from several different elds of study, and from
the knowledge and wisdom of sport marketing professionals working in the sport busi-
ness industry. Figure 13.1 illustrates these disciplines and denotes the many different
aspects of each one that helps inform contemporary sport marketing theory, funda-
mentals and process. For example, the academic discipline of communication comprises
several topics that are essential to sport marketing today, such as the study of advert-
ising, journalism and social media. Sociology is focused on the study of humans. Con-
sumers of sport, whether they are participants in sport, spectators of sport events or
consumers of sporting goods, are humans. Therefore, there is much to learn from soci-
ology that is applied to the study of consumers in sport marketing. And a very important
informant to sport marketing is the sport marketing professional the person who works
in the sport business industry practising sport marketing. They inform us with their
knowledge and practice of sport marketing, which we professors of sport marketing then
write about for our textbooks, such as this book, and teach about in our classrooms so
that students like you, the reader, can learn from professionals in the eld.
Figure 13.2 illustrates the Sport Marketing Management Model in which the major
elements of sport marketing are illustrated. Each element comprises numerous activities
and processes. Each element is not a separate process from all others each element is
interconnected to the other. There might be individuals in the company charged with
making decisions about one of the elements, but those individuals must be coordinating
their decisions with others who are making decisions in other departments. For example,
if the company has an individual or group of individuals whose responsibility is to set
price and develop pricing strategies, that individual has a responsibility to work with
Contemporary sport marketing theory and process
Media and Sport

Sport studies Business Communication Sociology marketing
technology
professionals
Sport Management Media studies Cultural studies Electronic media Sport marketing
management Marketing Advertising Population Computer science professionals who
Sociology of Finance Broadcasting studies Software work in the
sport Business law Public relations Labour market engineering industry, such as
Sport psychology Consumer Media relations studies Web business sport marketing
Leisure behaviour Journalism Human relations Web marketing research, college,
management International Communication Personnel E-commerce professional and
Recreation business management Broadcast media high school sports,
management entrepreneurship Sociology Social media snow sports,
Sport law Information marketing sporting goods,
Sports tourism management facilities, media,
Sports governing,
information racing and more
FIGURE 13.1
i>>i}i>`Vi
188 Brenda Pitts
Company mission and goals
Research and information collection
Consumer Company Competitor Climate
Segmentation
Target market decisions
Sport marketing mix decisions and strategies
Product Price Place Promotion
Marketing management strategies

implementation management evaluation adjustment
FIGURE 13.2 /i->i}>>}iiì
those who are charged with determining the product. The primary reason is that the
decisions about a product its manufacture, distribution and retail has an effect on
cost and thus price. So, if the product costs US$35.00 to manufacture, distribute and
sell to retail outlets, the pricing team must know this in order to make decisions about
setting the price for the product at every step of the way. They must also know what the
mission and goals of the company are in order to incorporate them. For example, if the
company is a for-prot, and one of their goals is to clear a 10% prot margin on this
product, then the pricing team can incorporate that into their decisions. With this
example, the product might be priced for sale to distributors at 10% above cost to meet
the goal.
In another example, the advertising team must work with the product team. If the
product being manufactured is, for example, a tennis racket targeted for the youth
market, then the advertising team must know this so that they can develop promotional
materials and advertising for the product specic to the youth market.
Most of the decisions and strategies in each of the elements must be made based on
real and factual information. This information must come from research. Therefore, the
top part of the model contains The 4 Cs of Sport Marketing elements titled
->i} 189
consumer, company, competitor and climate. These four categories are the primary
categories of information that the sport business must constantly collect in order to use
the information to inform decisions and strategies. For this, everyone in the company
must be aware of and involved in the research being conducted by the company. In fact,
many companies have a research department, sometimes called the research and devel-
opment department, whose responsibility is to conduct research for the company.
SPORT COMPANY MISSION AND GOALS
The foundation of a company is its mission and goals. Every company falls into two
broad categories: for-prot and non-prot. This categorisation will determine how the
company behaves. A for-prot company is in business primarily to sell product and make
a prot. A non-prot company or organisation is in business to offer a product at near-
cost and make enough money to stay in business. Quite often, a non-prot business or
organisation is exempt from typical business taxes, whereas the for-prot company is
subject to taxes and other laws.
RESEARCH AND INFORMATION COLLECTION: THE 4

Cs OF SPORT MARKETING
Every company or organisation must have good and accurate information from which to
make decisions and develop competitive strategies in all areas of the company. This
information falls into four categories and have been labelled The 4 Cs of Sport Market-
ing (Pitts & Stotlar, 2013). Table 13.1 gives the basic information in each of the 4 Cs
that needs to be studied.
TABLE 13.1 /i{

v>i}
Consumer Company Competitor Climate
/iii>i Your company

>i>vvi Factors in society at large
>`>i any product that that inuence your business
consumers Vii and/or product
Demographics Mission and The industry Economic

Psychographics LiVi /i>i>Vi Legal
*V>iLi> Brand strength
i`>> Political
Product use >i>i Brand strength Social/cultural
i>V Financial >i>i Ethical
resources Trends Technological
Human resources Financial strength Education

ii Positioning
>`>>}i
ii>`>>}i
>i
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strategies strategies
190 Brenda Pitts
The 4 Cs of sport marketing: the consumer

Information about the consumer is paramount to success. The company or organisation
must attempt to know as much as possible about their consumers and potential consum-
ers. Much of this information falls into ve categories: demographics, psychographics,
purchase behaviour, product use and behaviouristic.
Demographics information is statistical characteristics of information and data about the
consumer. Some of these include such basic information as gender, age, race/ethnicity or
national origin, income, education, relationship status and children. Demographics are the
rst set of data to describe common characteristics of a set of humans a market. For
example, for a tennis racket produced specically for the youth market, the demographics
might be as such: age 10 to 15, female and male, all races and of a family in a high income
bracket. This data will help with such marketing decisions as setting price, for example. If
the target demographics include high income bracket, then the price for the racket will be
much higher than other rackets.
Psychographics include information that is of a psychological nature, such as attitudes,
aspirations, beliefs, notions and emotions. This might include such information as
favourite colour, favourite sport, favourite professional athlete, religious beliefs, reasons
for playing sport, reasons for climbing Mount Everest and others. In an example, the
youth tennis racket might be given a professional athletes name as a label based on
research that shows the targeted youth market adore Serena Williams. Thus, the
company may call the racket The Serena racket. Because the research shows the tar-
geted market really like Serena Williams they will be more inclined to be attracted to
and to purchase a racket with Serenas name on it.
Purchase behaviour information is the study of how consumers behave in specic rela-
tion to making a purchase. This also includes research on how consumers make purchase
decisions do they have a process, do they consult with family or friends, do they
comparison-shop and are they environmentally conscious and so will try to purchase
goods from companies claiming to be environmentally friendly? Another type of research
involves purchase intention. For example, if a specic company is a sponsor of a sport
event, will the consumer be more inclined to purchase from that company?
Product use information is the study of how the consumer will use the product. For
some products, the use is simplistic a soccer ball is used to play soccer. However, when
considering more details about soccer, the use may be that the soccer ball will be used
strictly for practice, or that the ball needed is one that will be used strictly for matches.
This information affects the manufacturing process for the product. For example, with
the research about product use and now knowing that soccer consumers need some type
of soccer ball for practice and a soccer ball that strictly conforms to ofcial specications
for use in ofcial soccer matches, the manufacturer can now use that information to
make different soccer balls.
Behaviouristic information involves the study of how consumers behave in relation to
all shopping. It involves studying such information as what type of stores consumers
prefer, where consumers prefer to shop, how far they are willing to travel to a store,
how consumers react to holiday sales promotions and how consumers move throughout
a store once inside. For example, if the research shows that to purchase tickets to a rugby
game consumers prefer to shop at an online ticket company, then the company offering
->i} 191
the rugby game will know to try to offer online ticket shopping because that is the pre-
ferred shopping behaviour by the consumer. In another example, if a sporting goods
retail stores research shows that consumers walking around inside the store are avoiding
a particular area of the store, more research needs to be done to determine why and then
address it. Or, if the stores research shows consumers are using the self-service check-
outs at a much higher rate than the cashier-tended checkouts, then the stores manage-
ment team might decide to instal more self-service checkouts.
The 4 Cs of sport marketing: the company

You have a responsibility to know as much as you possibly can about your own
company. This means that your company must constantly conduct research on itself.
The research will show where there may be weaknesses and strengths, what nancial
resources are available and what are needed, what human resources are a strength or a
weakness, and much more. This data will inform the management teams decisions and
strategies regarding the company.
The 4 Cs of sport marketing: the competitor

It is highly important that you know as much about all of the competitors to your company
as you know about your own company. Research must involve studying every company or
organisation that has a product that directly and indirectly competes with your product.
Knowing about the competitors will give you information to help with many decisions and
strategies. For example, if one of your competitors holds the number one market share for
a product that you also produce, perhaps you will make marketing decisions or nancial
decisions to try to push your company to take over the number one spot.
The 4 Cs of sport marketing: the climate

Climate factors are those that are situational or context variables in which the company
exists. These include such factors as the economic climate, legal climate, political
climate, cultural situation, ethical climate and more (see Table 13.1). All of these factors
might have effects on every decision that your company has to make. For example,
having done your research and knowing that your country is in a recession, this might
affect your price and pricing strategy decisions. In another example, perhaps recently a
law was passed that dictates security measures at sport events. Your company must
know this law and thus make decisions and strategies to comply with the law. And in
another example, lets say that the current trend regarding the environment is that
people in your country want a push for new sport facilities to be environmentally sens-
itive. If you are a sport facility architectural rm, you must be aware of this in order to
attempt to build this into the plans for the new facility.
SEGMENTATION AND TARGET MARKET DECISIONS
Focused on the consumer, your company must know what consumer segments and spe-
cic markets it will focus and target. Selecting specic consumer segments and then
192 Brenda Pitts
target markets will drive the decisions of the company in everything about the product(s),
pricing, distribution and promotion. This is why segmentation and target marketing deci-
sions must come before the next marketing activity, the marketing mix decisions. Segmen-
tation is the division of a whole into homogeneous groups. The whole population of people
can be segmented into groups that have similar characteristics. The company then selects
which of these segments to target thus, target marketing. For example, the entire popula-
tion of people who play soccer in a country have some similarities and differences. Market
segmentation is the process of categorising them into different groups based on common
characteristics. So, for example, age can be used as one characteristic. Most soccer organisa-
tions have age group leagues. Or, skill can be used. There are professional soccer players,
recreational club soccer players and beginner soccer players. Lets say your company manu-
factures soccer balls. You may decide to target each of these markets and make soccer balls
specic to the specications of each group. That way, your company will sell many more
soccer balls by targeting different markets.
Target marketing is the selection of specic consumer segments for which customised
marketing mix elements are developed. For example, lets say your company has decided
to make products specically for the youth market. Thus, the youth market is one of
your target markets. Everything about the product lets say it is a tennis racket will
be customised for that market, as well as the price and pricing strategies, distribution
and promotions.
MARKETING MIX: THE 4 PS OF SPORT MARKETING
The marketing mix comprises four elements also informally called The 4 Ps (see Table
13.2). A marketing professor in the 1960s, Jerome McCarthy, is credited with developing
the idea of the marketing mix (Van Vliet, 2011). Of the many activities and tasks for a
TABLE 13.2 /i{*vi>i}
Product Price Place Promotion
7>>i V>}i Getting the product to

V>i
created for the >}iii iViVi consumer about the product
consumer the consumer i>
Functions "LiVi "LiVi "LiVi

Features iL
>ii *
Accessories Product life cycle >iii Sales people
Utility Terms Distribution goals ì}i`
Use Warranty Transportation >iì>`
Instructions Sales Location Publicity
Installation Special order -iVi Public relations
-iVi V Intensity Media relations
Warranty Psychology vwVi E-commerce
Product lines *iVii`>i vviVi M-commerce
*>V>}} Discounts i} -V>i`>
Branding >Vi Warehousing
->i} 193
business, McCarthy organised them all into the four categories he called the marketing
mix, or the 4 Ps of marketing. These elements are product, price, place and promotion.
Although other authors in both marketing and sport marketing have discussed ve or six
or even seven Ps, the most commonly accepted rendition is the original four marketing
mix elements.
The 4 Ps of marketing: product

The product is what the company offers to the consumer. A company may have one
product or more than one. For example, a sport law company offers legal services to the
consumer one product, although there may be some variations of that product. In
another example, a sporting goods manufacturer might produce thousands of products.
Products are the centrepiece of the company the product is what the consumer is
seeking (Pitts & Stotlar, 2013). A sport product may be any activity, good, service,
people, places or ideas (Pitts & Stotlar, 2013). Activities comprise sport and recreation
activities offered to the consumer, such as a basketball league or a golf course. Goods are
tangible goods, such as soccer balls, a motorcycle helmet or snow skis. Goods also
include sport and recreational footwear and apparel. A service product is primarily an
intangible product, such as a tennis racket stringing service, or a golf club cleaning
service, or an ofciating service. People as products are those who are primarily profes-
sional athletes and coaches who are bought and sold for their performance. A place
product can be a place sold for a number of reasons, such as a sport facility specically
for rent, a sport hall of fame or a swimming pool for rent. An idea product is the
product offered by such companies as a sport marketing advertising company, or a sport
facility architectural company they sell ideas.
The 4 Ps of marketing: price

Price is the exchange of something for something that is, someone exchanges some-
thing of value for something of value. In many cases, the price for something is money.
In some cases, the price for something may be services or goods. The price of something
may have a tremendous effect on the consumer the consumer may have high emo-
tional attachment to something they are purchasing, it may be that what the consumer
gets for the money is of value, or it may be whether or not the consumer thinks they are
getting a good deal. Price is a sensitive issue for many consumers, so the sport market-
ing professional must be sensitive to price.
Setting the price for a product is a very important decision for the sport marketing
professional. The decision is based on many factors, most of which should be based on
information gained from research, and the research must be in the 4 Cs of sport market-
ing: the consumer, the company, the competitor and the climate.
There are many different pricing methods available for the company. Some of these
include cost-plus pricing, going-rate pricing, demand-oriented pricing and seasonal pricing.
Cost-plus pricing involves making a determination of a specic amount to add to the cost of
producing a product, and price will be set using that. The going-rate pricing method involves
using the research on your competitors and determining what is the going rate among the
competitors for a product. You then set your price at the going rate. The demand-oriented
194 Brenda Pitts
pricing method involves dynamic pricing, where the price can uctuate based on demand
increase or decrease. If demand for the product increases, price can be increased. If demand
decreases, price can be decreased. This method is also often called dynamic pricing. The
airline industry has used this method for years. The sporting industry is beginning to use
this method. In one example, for a recent NBA game, demand for a specic ticket grew so
high that the price for it skyrocketed to over US$27,500 (Turner, 2016). This is not new
every mens or womens World Cup soccer championship or Olympic Games events bring
people who are so highly interested in going to the event that they are willing to pay
incredible amounts of money for a ticket. Seasonal pricing method involves setting prices
based on seasonal demand. Seasonal might mean climate seasons, or it can mean seasons of
the year, or holiday seasons. Pricing can be changed to reect demand for sports that are
seasonal. For example, snow skiing facilities can charge higher prices when winter is in full
swing and so demand is high. In relation to seasons of the year, this might involve using
climate season as a reason to set special prices, such as an autumn season sales event or a
spring season sales event. Holiday seasons are a popular method. Many companies use
holidays for pricing strategies to either raise or lower prices.
The 4 Ps of marketing: place

Place is another word used for distribution. Distribution is the process of getting the
product from the producer to the consumer. An important factor to remember is that
the sport business industry comprises a variety of types of product: activities, goods, ser-
vices, people, places and ideas. In a traditional distribution method, a good a tangible
product such as a tennis racket must be transported from the factory through several
places until it reaches the nal place of sale, usually the retail store. There might be
several steps in this process, called the distribution system or distribution channel.
If the product is a sport event for entertainment, such as a professional netball game,
the consumer must travel to the facility where the game will be played. Some of the
factors for attracting the consumer include placement of the facility the company will
usually put the facility in an area that is convenient and accessible to as many people as
possible. A good example of this is the Olympic and Paralympic Games. Held every four
years, the International Olympic Committee (IOC) will select a host destination city
that offers many factors that will make the place as attractive as possible to as many con-
sumers as possible around the world.
If the product is a sport activity, such as golf, the golf company will place the golf
course as close as possible to those types of consumers targeted for the golf course. If it is
decided that the golf course will be a high-end course (meaning high-priced), income
and geographic data will be very important. The golf company will nd a site very close
to the target market and build the course there.
The 4 Ps of marketing: promotion

This element of marketing is the one that most people think is all of marketing. Thats
because what most consumers see is the advertising and promotional efforts of a
company. Promotion comprises several different categories: advertising, personal sales,
sales promotions and publicity.
->i} 195
The sport marketing professional must develop a full promotion plan comprising
many different promotional methods. As all other marketing mix elements, promotion
methods will be selected based on the information resulting from research on the 4 Cs.
This full plan is typically called the promotional mix. The promotional mix is the com-
bination of promotional methods that will help the company meet its objectives effect-
ively (Pitts & Stotlar, 2013). It is rare that a company will use only one promotional
method for example, a company using only email promotions (such as, sending a
coupon by email). Companies are much more successful using a broad plan of several
different methods over a specied period of time. Each promotional method is unique
and most serve a different function. For example, television advertising (commercials)
can reach a large number of consumers, but target marketing is limited to known viewers
of TV programming for that specic period of time. On the other hand, research shows
that mostly older consumers watch traditional news shows held at traditional news
hours, so certain companies with products targeted to that market will be successful in
placing advertising on TV during that period of time. A well-known sport event in the
United States is the annual Super Bowl American footballs professional championship
game. Commercials during the Super Bowl have become quite a well-watched and
judged phenomenon, with high level advertising companies weighing in on which com-
mercials were the best and which were the worst. Companies that advertise during the
hours of the Super Bowl game are well aware of the research and target market viewers,
as well as the extra publicity they will get because of the additional attention to the
commercial rating game.
The sport marketing professional must establish promotion objectives. Objectives of
promotion include demand-oriented, education-oriented and image-oriented promotion.
The demand-oriented objective is to affect behaviour, to be persuasive enough to
increase demand and push the consumer to purchase the product. The education-
oriented objective is to affect knowledge, to educate or inform the consumer about the
company or its product in some way. For example, a sport business might simply want
to create advertising to inform its consumers of an upcoming sales event. The image-
oriented objective is to affect attitude or perception, inform or change what a consumer
thinks about a product or a company. For example, a company might want to affect its
good image in the minds of consumers by creating advertising that just tells the con-
sumer how many ways the company gives back to the community, or donates funds to
cancer research, or gives to the local youth sport organisation. It is important to rst
determine what you want to achieve with your promotional methods the objectives
will inform which promotional methods to select.
BRAND MANAGEMENT
Part of the job for the company and the sport marketing professional is to create and
then manage the brand of the company. Brand is the physical logo, symbol, title or name
for, or of, the company. More important is the reputation and attitude of the consumer
towards the brand. When a company develops a level of integrity and trust for the
company in the consumers world, it can trust the brand to partially carry the company.
For example, a well-known and highly recognised brand around the world is the Nike
196 Brenda Pitts
company. Many people would recognise its logo immediately. The company spent many
years and millions of dollars to impress that logo as well as the name of the company
the brand into the minds of consumers around the world. On the other hand, the
company must back up with what it purports to be if the company claims to sell high
quality products and tells the consumer that they can trust the brand simply based on
the name on the product, then the quality had better be there or the consumer will
protest against the product and the company.
Creating brand recognition is paramount for a company. This way, the company may
simply place their logo somewhere and many consumers will, from memory, recognise the
logo and be able to name the company. This is important in the sport business industry
because there is so much sponsorship in sport. One of the primary reasons for sponsorship
is to increase brand recognition place the company name or logo in front of the thousands,
perhaps millions, of consumers who will be present and will see the name or logo. Once
exposed, the brain records what it has seen and the consumer will most likely remember
the logo or brand. One of the primary purposes of this is to affect purchase decisions
when the consumer the goes shopping for something, lets say for a tennis racket, and
among the 30 or more brands of tennis rackets, they see one logo that the brain recognises,
that recognition can positively affect the consumers decision making process. Yes, it is
psychological but the vast majority of the activities of marketing are all about psychologi-
cally manipulating the consumer so that they will purchase your companys product.
SUMMARY
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REFERENCES
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CHAPTER 14
The economics of sport

Sam Richardson
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Key Terms: Opportunity Cost; Diminishing Marginal Product; Competitive Balance;

Rottenbergs Invariance Principle; Nash Equilibrium
INTRODUCTION
Economics is the study of how people use scarce resources and the implications of the
allocation of these scarce resources for society. Resources in a sporting context include
talent, time and effort spent on developing skills, equipment and techniques to improve
performance and the knowledge of how to combine them to best effect. Scarcity is thus
a crucial feature of economics. Scarcity is the situation we nd ourselves in when we
have potentially unlimited wants, but limited resources from which to satisfy these
wants. In sport, examples of scarcity are plentiful. How can a CEO of a professional
sport franchise acquire talent within the constraint of a salary cap? How can an athlete
improve their performance (e.g. get bigger, faster, stronger or more agile) when faced
with the limitations of their bodies? Which players does a coach choose to start a game
given there are only so many starting positions? How does a city decide whether to
The economics of sport 199
attract a professional sport franchise or improve the public transport system, for
example? We all face constraints that impact upon our behaviour, which suggests that
the decisions we make are motivated by scarcity. In the case of the athlete, their time is
scarce. In the case of the coach, starting positions are scarce. In the case of the CEO, the
money he or she has to spend on players is scarce. For the city, public funds are scarce. If
there was no scarcity there would be no need to choose between alternatives, and no
need to study economics.
People generally make decisions through careful evaluation of the benets and costs
of a particular choice. Economists say that rational people think at the margin, meaning
that they consider the incremental benets and costs that occur as a result of a given
decision. They decide to undertake a particular course of action if the benets of taking
that action exceed the costs of taking that action. An important cost from an economists
perspective is the opportunity cost, or the value of the next best alternative to a forgone
action. The opportunity cost of choosing to play a sport at school, for example, is the
time and effort that you could have spent pursuing another extracurricular activity.
Coaches compare the benets of a particular option (whether to start player X in the
team, for example) with the opportunity cost of that option (starting player Y instead).
If the benets of an option exceed the costs of that option, then that option would be
taken. If the costs exceed the benet, alternative options would be considered.
The key difference between the application of economic theory to business and sport
is that for sport the denition of output is not clear. Output in sport can be several
things, which are often produced jointly between competing athletes or teams, be that
attendance at games, the sale of broadcast rights and the sale of media, among others
(see Neale, 1964). Accordingly, the denition of the producer of such outputs, or the
rm in an economics term, is also subject to debate. Some argue that the individual or
team is the rm by virtue of the fact that the individual or team jointly produces the
outcome of the contest. There is also a case for the league or competition as the rm, as
they coordinate and organise the individuals or teams into structured competitions, and
it is these competitions that generate interest and value to advertisers, sponsors, media
outlets, etc. Leagues often compete with other leagues in the same and other sports,
which many argue enhances the claims of the league or competition as the rm. One
can consider both individuals/teams and leagues/competitions as rms to a certain
extent, depending upon the output that is considered.
The complex nature of output and the denition of the rm in sport can make it
challenging to apply lessons from economic theory in a business context to sport. A
clothing rm, for example, produces clothing and competes with other sellers in a
market for clothing. It makes sense for a clothing rm to want to monopolise its market
on prot grounds to capture the market and maximise prots. Economists would often
discourage cooperation between clothing rms on the grounds of efciency (the result-
ing market outcome would be further away from the competitive outcome). In sport,
however, although individuals and teams compete with each other like clothing rms,
there is considerably less incentive for an individual or team to dominate their competi-
tions or leagues over time. This is because a dominant team reduces the value of their
jointly produced output with other teams; fewer people are likely to attend games in
which the outcome is a foregone conclusion. The tension between individual versus
collective interests is an important feature of sport, and warrants careful consideration.
200 Sam Richardson
Sport around the world is becoming more and more commercialised, and some label
sport big business as a result. It is hard to disagree when one considers the role of broad-
casting deals for professional sport and their explosion in size in recent years. Likewise, the
seemingly ever-increasing amounts of money spent on the hosting of mega events like the
Olympic Games has resulted in greater attention being given to the sport industry.
Sport (both amateur and professional) often relies upon some degree of nancial con-
tribution from government (local, regional and central) in the form of the provision of
taxpayer (public) funds. How should governments decide what projects (not just sport
projects, but other community projects) are worthy of receiving scarce public funds?
Proponents of a particular project often advocate for government support by producing
commissioned economic reports that outline the economic importance of the project to
the local economy. In many cases, governments, in turn, require evaluation of taxpayer-
funded initiatives, often measurement against benchmarks, to decide whether what was
promised actually delivered.
THE ON- FIELD ECONOMICS OF AN INDIVIDUAL

ATHLETE OR TEAM
Economists are often interested in how an athlete or a team is able to perform to the
best of their ability how do they win? Several key concepts from economics play a part
in the quest to improve performance and win on the eld.
Athletes and sport teams can invest in considerable resources in their preparation for
a contest. Economists refer to this preparation as a production process that involves such
things as training (often utilising specialist equipment) and coaching, including team
selection and strategy, among other things. As part of this process, individual athletes are
often faced with a choice of what sport to play, what event or position to focus on,
among others.
Coaches in team sport, likewise, face the dilemma of choosing team selection and
strategy how best to combine team members to produce the best performance. A key
concept in this particular choice is specialisation the choice of what sport to focus on,
what event to focus on or position to play (for athletes) or what position to play each
player (for coaches). For teams, the coach or manager must consider what position to
play a particular player in, and while they will almost certainly factor in a players pref-
erence, the primary consideration is often how a players selection affects the team per-
formance. An example of such a decision is examined in the case study below.
Case study: where do you play G.I.?

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In the case study and in team selection in general, economists are interested in how the
teams performance will be affected. The impact of each player on the teams perform-
ance is known as the players marginal product. The concept of marginal product is the
change in output that occurs with an additional player. We often hear of examples in
sport where teams aggressively recruit several star players in a bid to chase championship
glory in a closing window of opportunity. Fans are often excited by such moves and
believe that the addition of further stars will increase the chances of their team winning
the championship. Ultimately, however, there are only a set number of players in a
team, and in most cases there is only one ball, opportunities with which must be shared
around the team. If a team already has a prolic scorer, adding a second scorer will
reduce the productivity of the rst player as the second player takes some of the scoring
opportunities away from them. The second scorer may have come from a team where
they were the primary scorer and had most of the scoring opportunities. Joining the new
team will likely cause the second scorer to have fewer opportunities than they did
before, and thus their scoring may well be lower as a result. The declining productivity
of each additional player is what is known as diminishing marginal product. In some
instances, desperate mid-season recruitment drives to push for playoff success can lead
202 Sam Richardson
to failure as in many instances players used to starring roles in weaker teams struggle to
adjust to reduced roles in stronger teams.
The nature of the production process of an individual or a teams output has implica-
tions for the costs that an individual or a team incurs. In general, costs are divided into
xed costs and variable costs. Variable costs are those costs that change as output changes.
Fixed costs are those that do not vary with output. For a sport team, many costs are
xed in nature, particularly if the season schedule is consistent from one season to the
next. Examples of xed costs include the facility costs they incur (stadium rent, for
instance), as well as player salaries. This is important, as player costs are typically the
largest single component of team costs.
One nal question we consider in this section is how athletes are paid. Economists
have a well-established eld of inquiry into the connection between sport performance
and pay, beginning with Scullys (1974) pioneering paper on pay and performance in
Major League Baseball. Scully estimated players marginal revenue product (MRP) to
measure the impact of the reserve clause on player earnings. Economic theory predicts
that if the labour market is perfectly competitive, wages should equal the workers
MRPs. Scully estimated MRP by initially examining the impact that a teams winning
percentage had on team revenues before considering the impact of player performance
measures on a teams winning percentage. Krautmann (1999) adopted a different
approach to estimating a players value, instead using information from the free agent
market to estimate the value of a players performance to a team. The validity of each
approach has come under close scrutiny by Bradbury (2013), with his verdict that both
approaches have advantages and weaknesses. The measurement of an individual players
productivity is a growing area (see Berri, Schmidt & Brook, 2007; Bradbury, 2007).
While there is a logical connection between player productivity and pay, it does not
necessarily explain why some athletes earn considerably more than others when there is
often only a small difference in performance or ability between them and the next best
player. This is the economics of superstars, and there are two reasons why superstars are
paid more than the second best player in their position. First, consumers demand the best,
and so more people are willing to attend and pay more to see the best players play. What
separates superstars of sport and entertainment from the likes of the best doctors or lawyers
is the ability to supply the product to a large audience. Technology, in this case television
and the Internet, has enabled demand for the best to be met through broadcasting of games
to satisfy the huge demand that exists to view the best athletes in the world. Where the
best doctors, for example, can earn sizeable income from people travelling to be treated by
them, the costs of replicating the doctors services effectively restricts the doctors earning
potential. Sport stars, actors and actresses can earn substantially more from having their
services broadcast at low cost to millions of paying fans worldwide.
THE ECONOMICS OF SPORT LEAGUES AND

COMPETITIONS
In the previous section some important issues were considered surrounding the indi-
vidual athlete and team, and it was noted that their performance objectives are related
to on-eld success. Also noted, the league can be considered as a producer of output as
they coordinate, schedule and manage the operation of sporting contests to generate a
league outcome. The attitude of the league is different to that of the individual or team;
after all, there can be only one winner of the league championship each season.
The league is concerned with the joint product generated by the individual teams and
the marketability of the league to sponsors and broadcasters. An important consideration
is the uncertainty of outcome in league contests. People generally prefer to attend games
in which the outcomes of the games are uncertain. Leagues are most focused upon
attaining on-eld competitive balance between teams, and tend to use off-eld measures
to inuence the on-eld competition across the league.
There is very real tension between the objectives of individual teams and league
objectives. This tension is exacerbated when individual teams have differing objectives
(for instance, some teams may choose a prot maximising goal, while other teams might
choose a win, or utility, maximising goal). A win maximising goal differs from a prot
maximising goal in that win maximising requires a team to cover its costs or to break
even. Typically, a win maximising winning percentage of a team in a league is greater
than the prot maximising win percentage of the same team. When teams in the same
league have differing objectives, it can be harder for league interventions to bring about
the desired changes to competitive balance in a league.
Lets take the idea of parity, both on and off the eld, and consider whether it is in any
way ideal. To begin with, lets focus on off-eld parity. Lets consider a simple two team
league. If the teams have identical market characteristics (e.g. same sized city, identical
commercial sponsorship potential, identical stadium, etc.) then both teams would have the
same marginal revenues that accrue from their acquisition of playing talent. A teams mar-
ginal revenues decline as their winning percentage increases, as there is less interest in the
team the more successful they become, everything else held constant.
Thus, if we graphed the two marginal revenue functions together as in Figure 14.1, the
outcome would be that each teams optimal win percentage would be 0.500 (or 50%).1
Team As marginal revenue ($)
Team Bs marginal revenue ($)
MR(B) MR(A)
0 0.5 0
Win percentage
FIGURE 14.1 i>i>}i\i>ìV>>i

204 Sam Richardson
Now, lets say that one of the teams (Team A) in Figure 14.2 was from a larger market,
while Team B remained in the same sized (smaller) market. Team A would have a
higher marginal revenue at every win percentage (as depicted by MR(A)*), and the
optimal outcome in this case is where Team A wins 60% of the games and Team B wins
40% of the games.
One might ask why the optimal outcome in Figure 14.2 is not where both teams win
50% of their games. At the point where Team A wins 50% of its games, its marginal
revenue (MR-A1) exceeds that of Team B (MR-B1). This means that Team A can pay
Team B to acquire some of its talent that will have the effect of increasing Team As win
percentage (and reducing Team Bs win percentage) while at the same time increasing
Team Bs revenues. The optimal win percentage is reached where the marginal revenues
of both teams are equal (MR-A2 = MR-B2). At the optimum point there is no incentive
for a team to buy talent from or sell talent to the other.
From the point of view of our simple two team league, the optimal outcome corres-
ponds to a higher win percentage for the large market team, and a lower win percentage
for the small market team, a theoretical result that is consistent for leagues with larger
numbers of teams. Despite this, however, we hear teams complaining about an uneven
playing eld, and debates around haves and have nots where small market teams nd it
difcult to compete with large market teams on the eld as well as off it, with large market
teams often being considerably wealthier than their small market counterparts. It is
important to note that large market teams have an obligation to purchase players that will
achieve the optimum win percentage for their market size, as this is how they derive their
revenues. It is evident, at least from a theoretical perspective, that the optimal win percent-
age in a league is not 50% for each team when you have teams from non-identical markets.
To address the imbalance between large and small market teams, many sport leagues
instituted a reserve clause system (a restricted labour market) as a fundamental feature of
the leagues labour market. Essentially, a reserve clause system bound players to teams
for as long as their careers lasted, and the only way a player could move from team to
Team As marginal revenue ($)
Team Bs marginal revenue ($)
MR-A1
MR-A2 MR-B2
MR-B1
MR(A)
MR(B) MR(A)
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WP(B) = 0.4
Win percentage
FIGURE 14.2 i>i>}i\i>`vvi}>i

team was if their team agreed to trade the player to another team. The rationale for the
reserve clause was simple: it was designed to prevent large market teams from acquiring
all of the best talent from small market teams. Small market teams were able to hold on
to players as long as they wished, and were able to trade them to other teams if it made
sense for them to do so. The biggest challenge to the restrictions of the reserve clause
came with the advent of free agency in the 1970s. Player unions instituted around this
time were critical of the reserve clause, claiming it held down player salaries. Team
owners were critical of the idea of free agency, claiming that the abolition of the reserve
clause would see the best players leaving small market teams to the highest bidder for
their services, which are typically the large market teams, and the gap between small
market and large market teams would widen.
A famous proposition, known as the invariance principle, was published by pioneering
sport economist Simon Rottenberg in 1956. Essentially, Rottenbergs invariance prin-
ciple suggested that no matter who receives the benet from player movement, whether
under a reserve clause system (a system where player movement is under team control)
or free agency (where off-contract players can sell their services to the highest bidder),
talent will end up where it is valued most highly.2 Indeed, the predictions of the invari-
ance principle proved correct. The advent of free agency saw next to no change in the
number of players moving from small market teams to large market teams. Large market
teams did not win more than small market teams; however, the salaries paid to players
increased signicantly.3
Leagues have sought in several ways to reduce the disparity between small market
and large market teams. Salary caps and revenue sharing are two common measures
designed to give teams an equal opportunity to secure playing talent. Under a salary cap
system a team cannot purchase all of the best players as it is typically not affordable to
do so under league salary cap rules. Revenue sharing has resulted in large market teams
effectively subsidising small market teams to equalise revenues. Likewise, some leagues
have adopted luxury taxes that are similar in principle to revenue sharing. Another pro-
posed solution to reducing imbalances in leagues has been the reverse order entry draft,
where the worst performed sides in the previous season get the top picks for the draft
class of the following year in a bid to equalise talent levels across teams.
To examine the impact of these interventions, economists have calculated measures
of competitive balance both within and across seasons. There are a variety of competitive
balance measures that exist, all of which are appropriate given the situation one is inter-
ested in examining. Perhaps the most common measure of within season competitive
balance is the ratio of standard deviations, or RSD, of a league. This involves the calcula-
tion of the actual standard deviation of winning percentages across a league, and this
gure is divided by the ideal standard deviation for the league, which is the standard
deviation of a perfectly balanced league. The ideal standard deviation is measured by
0.5
____
_ (1)
m
where m is the number of games played by each team in the season. Thus the closer a
league is to perfect balance, the closer the measure gets to one. An interesting discus-
sion of competitive balance can be had by reading Fort (2003), Humphreys (2002),
Kahane (2003) and Sanderson and Siegfried (2003). Data presented in Fort (2011)
206 Sam Richardson
suggests that attempts to alter competitive balance have had little to no effect across
the big four North American major league sports (NFL, NBA, MLB and NHL).
PUBLIC FINANCE: GOVERNMENT AND SPORT
Increasingly, demands are being made from proponents of sporting activities, pro-
grammes, events and facilities, to governments at all levels (local, regional and central)
for taxpayer assistance in funding these activities. The vast sums of public money being
spent by recent hosts of the Olympic Games, including Athens in 2004 (US$16 billion),
Beijing in 2008 (US$40 billion), London in 2012 (US$15 billion) and the Sochi Winter
Games in 2014 (US$51 billion), were funded largely by the public sector. The sheer
scale of public money poured into hosting mega events including the summer and winter
Olympics, as well as the FIFA World Cup nals, suggest that there must be some com-
pelling arguments in their favour.
Several arguments are typically presented to justify public funding, with the most
common argument being the economic impacts that a particular activity will have on
the host economy. Indeed, the use of economic impact studies has long been a feature of
advocacy campaigns for publicly funded sport facilities and sport events. The facility or
event, so the argument goes, will bring spending into the local area, which will in turn
stimulate the local economy as the spending ripples through the economy in the form of
a multiplier effect. This often results in much larger impacts than the initial cost involved
to build the facility or host the event. Independent scholarly research has largely refuted
the economic impact argument of facilities and events, and several reasons have been
given for why this is so. The most prominent of these have been the arguments outlined
by Siegfried and Zimbalist (2006) that include (1) the substitution effect, where most
spending generated by facilities and events is local spending, which is substituted from
elsewhere in the local economy; (2) the impact of leakages that occur when athletes
earnings are channelled out of, instead of into, the local economy; and (3) the budgetary
impact that occurs when public funding towards a facility or event is diverted from other
projects. Economic impact analysis typically completely ignores the opportunity cost of
public funding, which is an extremely important consideration of government.
Evidence suggests that tangible economic gains from sporting mega events are few
and far between. Since the Seoul Summer Olympics of 1988, only two of six host coun-
tries of the Summer Games (the United States and the United Kingdom) and only one
of six Winter Games host countries (Canada) experienced higher economic growth in
the four-year period following the Games than the construction-fuelled four years pre-
ceding the event.
Another argument for hosting mega sport events that has been widely publicised has
been the potential for impacts on trade. Rose and Spiegel (2011) found that hosting the
Olympic Games was associated with a large and permanent increase in exports, an effect
that was also found for unsuccessful bidders to host the Games. They hypothesised that
countries send a signal of economic openness by bidding for the Games. Maennig and
Richter (2012) found that the effect disappeared when consideration was given to a pos-
sible selection bias; countries that bid for the Games were structurally different from
non-bidding countries.
In recent times the major supporting argument for public funding has shifted from
tangible economic impacts to intangible public good benets. Teams and events generate
benets that are both non-excludable (that is, nobody can be prevented from enjoying
the benets) and non-rival (one persons enjoyment does not diminish another persons
ability to enjoy the benets). Public good benets include such things as civic pride and
psychic income (see Crompton, 2004). The value of such benets have been estimated
by economists, and despite the fact that the benets can potentially be quantied, inde-
pendent scholarly research has found that public good benets are typically insufcient
to justify public funding of events and facilities.
So what should governments consider when faced with a proposal to provide public
funding towards a sporting project? A good starting point would be thorough considera-
tion of the expected benets and costs of the project. In the case of a sport event, for
instance, economists would tend to advocate a careful evaluation of projected benets
(both tangible and intangible) in the form of a benetcost analysis (see Kesenne, 2005).
A benetcost analysis attempts to quantify the benets accruing to the local community
from the event, and comparing these to the costs (up-front and ongoing) as well as the
opportunity costs of hosting the event. While ex-post (after the fact) analysis is typically
not performed for privately funded sport projects, some governments are moving
towards guidelines for post-event evaluation to determine whether the pre-event predic-
tions actually materialised, as well as ensuring that such evaluations are conducted in a
consistent manner.
SAY IT AINT SO! LOSING THE ROMANCE:

CHEATING AND CORRUPTION IN SPORT
When introduced to sport at a young age, one of the rst things you are encouraged to
do is to play the game in the right spirit. This can be dened in many ways, and these
might include playing to win, to play hard but fair, to try your best or simply to have
fun. One of the assumed ideals of sport is the spirit in which a sporting contest is under-
taken. The Olympics movement says that [b]lending sport with culture and education,
Olympism seeks to create a way of life based on the joy found in effort, the educational
value of good example and respect for universal fundamental ethical principles (emphasis
added).4 People play sport for reasons that include trying your best, setting an example
and playing the game fairly and within (or to the limit of ) the rules.
In recent times, however, there is cause to believe that not everyone necessarily com-
petes in the appropriate spirit. Perhaps the spectacle that brought drug-aided cheating to
prominence was the Mens 100m Final in the 1988 Olympic Games in Seoul, Korea.
The race was won by Canadian Ben Johnson in a then world record time of 9.79 seconds.
Three days later Johnson was exposed as a drugs cheat due to elevated levels of the
steroid stanozolol in his body and had his gold medal and world record stripped. The
developments shocked the sporting world. Johnson is by no means alone in drug cheat
infamy. Other prominent athletes caught doping in recent times include US cycling
legend Lance Armstrong, who won seven Tour de France titles; US track star Marion
Jones, who won three gold medals in the 2000 Olympic Games; and Belgian shot putter
Nadzeja Ostapchuk, who won gold in the shot put at the 2012 Olympic Games.
208 Sam Richardson
Case study: is cheating ever an optimal strategy?

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Sometimes measures designed to encourage effort can have the opposite effect. Under the
traditional rules of the reverse order draft mentioned in the previous section, teams with
the worst record at the end of the season drafted the rst pick overall. There appears to be
a clear incentive for teams out of playoff contention to tank; that is, to lose more games
than they might otherwise have lost in an effort to secure a high draft pick. The NBA insti-
tuted a weighted lottery system to reduce this incentive. The team with the worst record
was no longer guaranteed to get the highest pick, but instead they had the highest chance,
while teams with progressively better records had lower chances of winning the highest
pick. Research by Price, Soebbing, Berri and Humphreys (2010) found evidence that teams
eliminated from playoff contention in the NBA appeared to lose more games under the
weighted lottery system than under the traditional rules. It appeared that the NBAs inter-
vention actually resulted in an increase in the behaviour it was designed to discourage.
Another contributing factor that cannot be ignored in the discussion around unsporting
behaviour is the role of sport betting. For as long as sport has existed, there have been links
to gambling on the outcome of sporting contests. The modern sport betting environment
has several features that increase the likelihood of betting-related corruption in sport. See
Forrest (2012) for an in-depth summary of these features and the associated issues.
SUMMARY
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210 Sam Richardson
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REFERENCES
i]]-V`] E ]-The wages of wins->v`]

\->v`1i
*i
>`L]
The baseball economist i9] 9\
>`L]
7> } -V i>i v > >i >}> iii `V
Journal of Sports Economics, 14]nq
]{ iìVV>V\>i>i>>iviLVL`v>
i>}iv>ViJournal of Sport Management, 18]{qxn
i] i} >` i i} v * ì] - >V>] ,
,
-i>E-i `]Sports betting: Law and policy{q./i>}i\i*i
],/}ii>LViiL>>ViJournal of Sports Economics, 4]nqn
],Sports economics1i->`ì,i] \*iVi>
i] ,i>ii>ivViiL>>Vii>}iJournal of Sports
Economics, 3]q{n
>>i]
i/}>LViiL>>ViJournal of Sports Economics,
4]nnq
iii]-xiii`>iVV>V`>VqLiiw>>v>ii
European Sport Management Quarterly, 5]q{
>>]
7> } -Vi>i v > >i >}> iii `V
Economic Inquiry, 37]qn
>i}] 7 E ,Vi] >` "V >i\ ii > }> ivviV Journal of
Sports Economics, 13]xq{
i>i]7
{/iiV>iVVvvi>\VLiiviw
}Vi>`>iViThe Quarterly Journal of Economics, 78]q{
*Vi]]-iLL}] *] i]Ei] ,/>iVii]i>}iV]>`
i>iv>Viii`Journal of Sports Economics, 11]qx
,i]E-i}i]/i"VivviVThe Economic Journal, 121]xq
,iLi}]-x/iL>iL>>i>L>iJournal of Political Economy, 64]{qxn
->ì] , E -i}vi`] /} >L Vii L>>Vi Journal of Sports Eco-
nomics, 4]xxq
-V]7{*>>ìv>Vi>i>}i >iL>The American Economic Review,
64]xq
-i}vi`]E<L>]*Vv\ VVvq/iiVV>Vv
v>Vi]i>>ì}>iiAustralian Economic Review, 39]{q{
SECTION 3
Elements of sport
management
CHAPTER 15
Communication and
social media
Chapter objectives
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Key Terms: Social Media; Brand; Marketing Communication; Two-way Communica-

tion; ConsumerBrand Relationships
INTRODUCTION
In the 21st century, social media has become one of the key dening features in how we
communicate. Social media have not only changed how we connect with our family and
friends, but also modied how brands communicate with consumers and even enabled
consumers to communicate with each other. The following gures illustrate the over-
whelming use and ubiquity of social media in modern society:
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The phenomenon of social media use has grown exponentially over recent years, and so,
too, has its inuence. Some argue that they are now as inuential, if not more, than tra-
DITIONAL MEDIA $RURY 2EYNEKE 0ITT "ERTHON 'IVEN THE EXPANSIVE
216 Ashleigh-Jane Thompson
nature and scope of social media, it is not surprising that numerous denitions exist.
However, the term social media is most commonly used to describe online tools that
allow sharing of information and content (e.g. video, images, text, news, opinion), and
participation and collaboration through social interaction between individuals and enti-
TIESSUCHASORGANISATIONS&ILO,OCK+ARG2EYNEKEETAL 7HILESOCIAL
MEDIA WERE ORIGINALLY DESIGNED FOR FRIENDS TO CONNECT WITH FRIENDS &OURNIER !VERY
THERE HAS BEEN A SIGNIlCANT EVOLUTION OF ITS USE WITH PRIVATE PUBLIC AND NON
prot organisations joining social media platforms to engage with their target
stakeholders.
SOCIAL MEDIA AND SPORT
!SWITHOTHERINDUSTRIESSOCIALMEDIAHAVENOTGONEUNNOTICEDINSPORT)NFACTTHEYARE

ONE OF THE FASTEST GROWING AREAS FOR SPORT MARKETING AND COMMUNICATION 0EGORARO
CREATING A REVOLUTION IN TRADITIONAL MARKETING COMMUNICATION ,U !NDERSON
0ITTS ANDPROVIDINGSPORTBRANDSWITHUNPARALLELEDOPPORTUNITIESTOREACHALARGE
CONSUMERBASE0EGORARO7ILLIAMS#HINN &OREXAMPLEAFTEREXAMINING
PERCEPTIONSOFSPORTANDENTERTAINMENTVENUEMANAGERS2OTHSCHILD DETERMINED
that the signicant rise in social media use in sport has resulted in the decline of tradi-
tional marketing and communication methods.
Indeed, social media has profoundly changed the way sport organisations com-
MUNICATEWITHFANS4HOMPSON-ARTIN'EE%AGLEMAN !STHECURRENTGENERA-
tion of net-users becomes more familiar with two-way communication, it is argued that
they expect their favourite sport brands to communicate and connect with them via
THESE CHANNELS "ALLOULI (UTCHINSON +ASSING 3ANDERSON 7ILLIAMS
#HINN 3PORTBRANDSFAILINGTOEMBRACETHESECHANGESANDENGAGEINSUCHACTIVITY
risk losing sport fans and the opportunities social media provide. These opportunities
include, but are not limited to, developing social connections, direct communication of
BRANDIMAGEANDENHANCEDLOYALTY7ALDEN7ATERS7ALLACE7ILSON-ILOCH
7ATERS"URKE*ACKSON"UNING7ILLIAMS#HINN
7HILE SOME SPORT BRANDS ARE STILL TRYING TO lND THEIR PLACE IN A CONSTANTLY CHANGING
communications landscape, others are creatively utilising social media technologies and
the functionality they provide to reach out to existing consumers and attract new ones.
&OR EXAMPLE IN AN ATTEMPT TO CONNECT WITH INTERNATIONAL FANS AND DRIVE INTERNATIONAL
MEMBERSHIP SALES TO COMBAT A SATURATED MARKET IN THE 5+ !RSENAL &OOTBALL #LUB
launched various digital media applications to extend its relationships and interaction
WITHANINTERNATIONALFANBASEBEYONDTHEIN STADIAEXPERIENCE+NOOP )NADDI-
tion, sport brands are looking at ways to integrate social media into their facilities to
support in-stadia engagement. The Cleveland Indians, for example, launched a social
suite to provide fans with the opportunity to discuss the Tribe with other attendees
AND ONLINE FOLLOWERS FROM A 7I &I ENABLED SUITE AT 0ROGRESSIVE &IELD 0FAHL +REUTZER
-ALESKI,ILLIBRIDGE2YZNAR 3UCHDIGITALSPACESARENOWBECOMINGMOREPROMI-
nent among other sport teams and events.
The emergence and uptake of social media have transformed sport media and its con-
sumption. The majority of sport organisations appear to be using social media to grow
Communication and social media 217
THEIR BRANDS AND INCREASE FAN LOYALTY !RMSTRONG $ELIA 'IARDINA &ILO ET AL
-ENG3TAVROS7ESTBERG4HOMPSONETAL )NADDITIONTHESESITES
are utilised to drive real-time interaction, while offering direct feedback and updates.
One of the key features of social media use in sport is the ability to overcome barriers to
FANACCESS0EGORARO !SARESULTSOCIALMEDIAAREPARTICULARLYEFFECTIVEINSPORT
as they allow fans, athletes and teams to easily connect with one another (Hambrick,
3IMMONS 'REENHALGH 'REENWELL 3ANDERSON +ASSING 7ALDEN
7ATERS WHICHISIMPORTANTASFANSACCESSIBILITYTOSPORTENTITIESISCENTRALTOTHE
FORMATIONOFFANIDENTITY3UTTON-C$ONALD-ILNE#IMPERMAN
Social media also aid in developing online communities that bring sport fans together.
Recent studies provide evidence to suggest that many uses of social media are focused
towards creating fan unity and developing online communities that allow for fan inter-
ACTION'REENE$OTTERWEICH0ALMERO'OOD %NABLINGFANSTOSHARETHEIRSPORT
consuming passions contributes to establishing and/or reinforcing bonds between them
#OVA #OVA -C!LEXANDER 3CHOUTEN +OENIG -UNIZ *R /'UINN
)FSPORTBRANDSUSESOCIALMEDIATOCOMMUNICATEWITHFANSANDMAKEUSEOFTHESE
benets, it is suggested that it would aid them in achieving brand and relationship build-
ing goals.
0FAHLETAL OFFERANUMBEROFEXAMPLESOFHOWSPORTMARKETERSHAVEADAPTED
and are paying attention to the opportunities and options that social media provide.
3ANDERSONAND+ASSING ARGUETHATDIRECTCOMMUNICATIONSASPROVIDEDBYSOCIAL
media, have revolutionised sport media by giving athletes and teams an opportunity to
circumvent traditional media outlets. This is particularly important for certain athletes,
niche sports and sport organisations that suffer from a lack of mainstream media atten-
TION%AGLEMAN'EURIN %AGLEMAN#LAVIO4HOMPSONETAL
!SARESULTOFSUCHCHANGESSPORTORGANISATIONSNOWPRODUCETHEIROWNCONTENTAND
shape communication messages that support their brand and relationship building
ENDEAVOURS!S$AVID#ARTERHEADOF53#3PORTS"USINESS)NSTITUTESTATES@ASCELEBRITY
endorsements move beyond the superstars, the mid-level player with personality and
social-media savvy can reach endorsement and name-recognition levels that were once
ONLYTHEDOMAINOFTHEBESTOFTHEBEST"ARBARISI &ORMER#LEVELAND)NDIAN.ICK
3WISHERISONESUCHEXAMPLE!SARESULTOFHISSOCIALMEDIAPRESENCEHEWASAPPROACHED
by Mercedes to participate in the car manufacturers Super Bowl campaign.
#ONSEQUENTLY"ALLOULIAND(UTCHINSON CLAIMTHATEVERYATHLETETEAMORSPORT
ORGANISATIONSHOULDBEINVOLVEDINSOCIALMEDIAINSOMEWAY&ORSPORTBRANDS&ACEBOOK
and Twitter appear to be the most utilised social media platforms. However, while they
remain the focus of many sport organisations attempting to communicate with fans,
other social sites such as Instagram are also gaining traction.
FACEBOOK
&ACEBOOK WAS ORIGINALLY CREATED IN AND DURING ITS INCEPTION WAS A SITE WHERE INDI-
viduals created online proles and uploaded their own content to be shared with others.
(OWEVER IN &ACEBOOK OPENED AN OPPORTUNITY FOR ORGANISATIONS TO REGISTER AS SITE
USERS 9AN )NITIALLY ORGANISATIONS CREATED PROlLES THAT MIMICKED THAT OF AN
INDIVIDUALBUTIN&ACEBOOKINTRODUCEDTHE@PAGEFEATUREALLOWINGORGANISATIONSTO

CUSTOMISETHEIRPRESENCEANDCOMMUNICATEWITHUSERSINANEWWAY7ALLACEETAL
2EmECTINGTHEWIDESPREADADOPTIONOF&ACEBOOKANUMBEROFSPORTORGANISATIONSHAVE
APAGEON&ACEBOOKTODEVELOPASOCIALMEDIAPRESENCE2ESEARCHEXAMININGFANMOTIVA-
TIONSFORINTERACTINGANDENGAGINGON&ACEBOOKREVEALTHATSPORTFANSAPPEARTOBELARGELY
MOTIVATEDBYINTERACTIVITY#LAVIO7ALSH INFORMATION#LAVIO7ALSH
ZSOY ANDENJOYMENT-AHAN3TAVROS-ENG7ESTBERG&ARRELLY
3TAVROSETAL ALSOFOUNDTHATFOLLOWERSOFSEVERAL.ATIONAL"ASKETBALL!SSOCIATION
."! TEAMS WERE ALSO MOTIVATED BY PASSION HOPE ESTEEM AND CAMARADERIE )N ADDI-
tion, there are distinct usage patterns among sport-specic followers, based on certain
DEMOGRAPHICVARIABLESSUCHASGENDERAGEANDSPORTSEE#LAVIO#LAVIO7ALSH
#OYLE A ZSOY &ACEBOOK PAGE ATTRIBUTES ALSO INmUENCE PARTICIPATION BY
sport fans, with those that signal authenticity and engagement having the greatest impact
ON&ACEBOOKFANBASES0RONSCHINSKE'ROZA7ALKER
&URTHERMORELIMITEDRESEARCHHASEXPLORED&ACEBOOKUSAGEANDITSRELEVANCETOBRAND
MANAGEMENTFORCOLLEGEATHLETICDEPARTMENTS7ALLACEETAL #ANADIANNATIONAL
SPORT ORGANISATIONS !BEZA /2EILLY AND .ORTH !MERICAN SPORT LEAGUES
7ALDEN7ATERS 4HESESTUDIESDESCRIBE&ACEBOOKASANUNDER UTILISEDTOOLBY
these sport organisations, with little evidence that they use this platform to create or
support a relationship dialogue. Indeed, some sport organisations are failing to take
ADVANTAGEOFTHEOPPORTUNITIESAFFORDEDBY&ACEBOOKTOENGAGEWITHTHEIRFANBASES
TWITTER
Twitter is a real-time information network that connects [users] to the latest informa-
TION ABOUT WHAT ;THEY= lND INTERESTING 4WITTER 7HILE &ACEBOOK HAS ENJOYED
SUBSTANTIALGROWTH4WITTERHASAMASSEDALARGEUSERBASESINCEITSINCEPTIONIN)T
allows users to post updates to followers, using short text based messages (referred to
AS@TWEETS OFCHARACTERS0EGORARO7ITKEMPER,IM7ALDBURGER
Users, whether they are individuals, organisations or brands, can create personalised
accounts to share tweets and follow other users. They can then respond to other users
messages directly, or retransmit (retweet) messages to their own followers.
$UE TO ITS INCREASED USAGE A NUMBER OF SPORT ORGANISATIONS HAVE SOUGHT TO UTILISE
Twitter to share information, communicate and interact in real time with various stake-
HOLDER GROUPS (AMBRICK ,OVEJOY 7ATERS 3AXTON AND IT HAS BECOME
the preferred tool for many sport organisations to engage socially through the Internet.
'IBBS/2EILLYAND"RUNETTES STUDYONTHE#ANADIAN&OOTBALL,EAGUEIDENTIlED
promotion as a motivating factor for Twitter usage. This nding is consistent with
$ITTMORE -C#ARTHY -C%VOY AND #LAVIOS STUDY ON !MERICAN INTERCOLLEGIATE
athletic administrators, who perceived Twitter usage fell into one of three primary pur-
poses: interpersonal (i.e. two-way communication), informational (i.e. information dis-
semination) and promotion (i.e. relating to upcoming activities as a marketing function).
!THLETESAREALSOPROMINENTUSERSOF4WITTER(AMBRICKETAL DISCOVEREDTHATTHE
MOSTCOMMONUSEAMONGTHEATHLETESTHEYSTUDIEDWASPERSONALDIVERSION,ESSCOMMON
uses among athletes included sharing sport information, promotion, fan-ship and content.
+ASSINGAND3ANDERSONS STUDYOFPROFESSIONALCYCLISTSFOUNDSIMILARUSESALONGWITH

other themes of: sharing of opinions and commentary, interactivity engagement and
@CULTIVATIONOFINSIDERPERSPECTIVESFORFANSP !CCORDINGTO0EGORARO 4WITTER
could be used by athletes to create positive exposure, engage fans, and increase their visibil-
ITYP ALLOWINGTHEMTOBUILDTHEIRBRANDANDSTRENGTHENTHEIRREPUTATION
&AN RESPONSES HAVE ALSO INDICATED POTENTIAL OUTCOMES DERIVED FROM FOLLOWING SPORT
ENTITIESON4WITTER!S&REDERICK,IM#LAVIO0EDERSENAND"URCH LEARNEDFANS
felt a greater sense of engagement with athletes that were more social and interactive.
&ANSALSOAPPEARTOBELARGELYMOTIVATEDTOFOLLOWSPORTBRANDSON4WITTERBYINFORMA-
TION #LAVIO 7ALSH $HURUP $LODLO 7ITKEMPER ET AL NEWS
'IBBSETAL ANDENJOYMENT$HURUP$LODLO7ITKEMPERETAL
INSTAGRAM
6ISUALLYBASEDSOCIALMEDIAARENOWAMONGTHEMOSTPOPULARSOCIALMEDIASITES7ATKINS
,EE )NSTAGRAMISONEOFTHEBEST KNOWNVISUALPLATFORMS/FlCIALLYLAUNCHED
IN IT IS A MOBILE APPLICATION THAT ALLOWS USERS TO UPLOAD THEIR OWN PHOTOS AND
SECOND VIDEOS AS WELL AS COMMENT AND LIKE PHOTOS AND VIDEOS FROM OTHER USERS
'EURIN %AGLEMAN "URCH )T WAS PURCHASED BY &ACEBOOK IN AND IS
REGARDEDASTHEFASTESTGROWINGSOCIALMEDIASITEWITHOVERMILLIONWORLDWIDEUSERS
'EURIN %AGLEMAN"URCH3MITH3ANDERSON )MAGESINCLUDEDON)NSTA-
GRAMCANALSOBESHAREDONOTHERSOCIALMEDIASITESEG&ACEBOOKOR4WITTER
7ITH THE INCREASED MAINSTREAM USAGE OF )NSTAGRAM A NUMBER OF SPORT ORGANISATIONS
and athletes have started using it, claiming that followers appear to be drawn to the
ability to gain access to behind the scenes photos from their sporting idols (Clavio,
!THLETES IN PARTICULAR ARE UTILISING )NSTAGRAM AS A SITE THROUGH WHICH THEY CAN
SHOWCASE THEIR PERSONAL LIKES INTERESTS AND FAMILIES 3MITH 3ANDERSON AND
MAKE ANNOUNCEMENTS DIRECTLY TO FOLLOWERS #HAWANSKY )N 7OMENS
.ATIONAL"ASKETBALL!SSOCIATION7."! STAR'LORY*OHNSONPOSTEDAPHOTOTOTHESITE
ALONGWITHTHECAPTION7ELCOME4O4HE*OHNSON&AMILYANNOUNCINGTHATSHEANDFORMER
PARTNER "RITTNEY 'RINER WERE EXPECTING A BABY (OWEVER ATHLETES HAVE FALLEN FOUL OF
their teams for posting inappropriate content to the site. In one such example from
THE3AN&RANCISCOERSSUSPENDED"RANDON*ACOBSFORUPLOADINGAPHOTOANDTHE
comment I am on this team rotting away so why would I wanna put any pics up of any-
THINGTHATSAYNINERS%30.
!S A VISUAL MEDIUM )NSTAGRAM HAS IMPORTANT MARKETING AND BRANDING IMPLICATIONS
FORSPORTBRANDS&EWSTUDIESCURRENTLYEXAMINEITSUSEWITHINTHESPORTINGCONTEXTBUT
THOSE THAT DO HAVE EXPLORED ATHLETES SELF PRESENTATION ON )NSTAGRAM 7HILE THE EMER-
gence of such sites provide athletes (and organisations) with the power to exert more
CONTROL OVER THEIR SELF PRESENTATION 3ANDERSON RESEARCH REVEALS THAT ATHLETES
appear to be conforming to gender norms and traditional mass media portrayals. In line
with this, female athletes have been shown to post content that is more personal and
SEXUALLY SUGGESTIVE IN NATURE 'EURIN %AGLEMAN "URCH 3MITH 3ANDERSON
(OWEVERATHLETESOFBOTHGENDERS SHOULDPOSTAWIDEVARIETYOFPHOTOTYPES
PARTICULARLYIFTHEYWISHTOBUILDTHEIRATHLETEBRAND'EURIN %AGLEMAN"URCH
BRANDING AND SOCIAL MEDIA
!S THE POPULARITY OF SOCIAL MEDIA INCREASES SPORT ORGANISATIONS MUST DEVELOP SPECIlC
STRATEGIESTOUSESOCIALMEDIATOENHANCEFANLOYALTYANDBUILDBRANDS)OAKIMIDIS
However, sport managers are warned not to simply transfer traditional marketing com-
MUNICATION EFFORTS AND STRATEGIES TO THESE EMERGENT MEDIA !CCORDING TO %DELMAN
@CONSUMERSTODAYCONNECTWITHBRANDSINFUNDAMENTALLYDIFFERENTWAYSTHAT
means traditional marketing strategies must be redesigned to accord with how brand
RELATIONSHIPSHAVECHANGEDP +ASSINGAND3ANDERSON NOTETHATSOCIALMEDIA
offer considerable shifts in the interaction and consumption of sport, whereby profes-
sional sport brands now have the opportunity to foster a personal relationship with con-
SUMERSFACILITATEDBYINCREASEDBRANDINTERACTION'LADDEN&UNK2OSS2USSELL
"ANG 7ITHINCREASEDINTERACTIONBRANDASSOCIATIONSANDSYMBOLICANDEXPERI-
ential benets (i.e. fan identication, escapism and entertainment) can be reinforced
9AN
In the online branding context, brand experience plays a crucial role in brand build-
ing. The experience consumers have with a brand signicantly affects their satisfaction
and trust in the brand. Improving consumers experience with a brand can lead to
INCREASED BRAND FAMILIARITY 3IMMONS (IGH QUALITY ONLINE INTERACTIONS AND
engagement are key in this process, such that consumers develop positive brand associ-
ATIONSTHATLEADTOINCREASEDBRANDLOYALTYANDIDENTIlCATION"OWDEN3IMMONS
!S"RODIE(OLLEBEEK*URICAND)LIC INDICATEITISCLOSELYTIEDTOTHETREND
of creating an interactive experience and value co-creation within marketing relation-
SHIPSP #ONSEQUENTLYTHEEMERGENCEOFSOCIALMEDIAHASHADAPROFOUNDEFFECT
ONBRANDMANAGEMENTANDTHEPOTENTIALTOBUILDSPORTBRANDSVIATHESEMEDIA7ALLACE
ETAL
Communication is essential to the branding process, and thus its centrality to brand-
ing strategy cannot be ignored. Social media have dramatically changed the communica-
tion landscape. These platforms transcend geographic and temporal barriers, enabling
brands to have direct contact with fans regardless of their location. In effect, they expose
new international markets. Brands seeking to develop relationships with both current
and potential consumers pursue social media as a means to achieve this.
In one of the few studies that explicitly explores social media as brand manage-
MENTTOOLS7ALLACEETAL SUGGESTTHATSOCIALMEDIAPROVIDESPORTBRANDSWITH
the opportunity to build and maintain brand image, association and awareness
through their communication with fans. However, they also report that in the
context of their study, little marketing related activity was undertaken. The authors
CONCLUDE THAT THE CAPABILITIES OF &ACEBOOK WERE UNDER UTILISED AS LINKS AND STATUS
updates were the most dominant communication method, and thus possibilities for
INTERACTION WERE LIMITED )N A SIMILAR STUDY IN THE CONTEXT OF THE 7."!S USE OF
4WITTER 0EGORARO FOUND LITTLE PROMOTIONAL ACTIVITY WAS UNDERTAKEN IE
sponsor mentions, tickets and/or merchandise sales) and opportunities to display
interactivity were limited. If sport brands want to strategically leverage social media
for branding related purposes, it must be supported by continued interaction and
direct engagement.
CONSUMERBRAND RELATIONSHIPS AND

SOCIAL MEDIA
There has been a signicant shift from a transactional to a relational marketing approach, in
which interaction, communications and connecting with fans is the central focus. Social
media provide organisations with the ideal platform to apply this type of marketing
APPROACHASTHEYSUPPORTINTERACTIONANDNOVELWAYSTOENGAGEWITHCONSUMERS7ALLACE
ETAL7ILLIAMS#HINN )MPORTANTLYSOCIALMEDIAALLOWORGANISATIONSTHE
opportunity to communicate with fans rather than toTHEM0FAHLETAL
Content that is engaging to fans plays a critical role in soliciting such interactions as
well as retaining customers. This is a fundamental requirement for building relationships,
and as such it is crucial for sport organisations to provide relevant and interaction driven
CONTENTONSOCIALMEDIASITES&OREXAMPLE7ILLIAMSAND#HINN PROVIDEACON-
ceptual examination of the application of online technologies in helping sport organisa-
tions meet their wider relationship marketing goals and note that opportunities for
interaction and communication are central to the process upon which relationship value
is determined.
(OWEVER 0EGORAROS EXAMINATION OF 4WITTER USE BY THE 7."! FOUND FEW
examples of relationship building strategies evident in the tweets included in her study.
3IMILARLYINASUBSEQUENTSTUDYEXAMINING&ACEBOOKUSAGEBYFOURMAJOR.ORTH!MERI-
CAN PROFESSIONAL SPORT LEAGUES 7ALDEN AND 7ATERS FOUND THAT LITTLE TWO WAY
interaction was supported by these leagues, with usage focusing on promotion and pub-
licity rather than delivering engagement and supporting discussions by way of respond-
ing to fans questions. The authors conclude that while social media were used to
generate brand awareness, the leagues would be more likely to ensure the development
OFRELATIONSHIPSTHROUGHTHEPROVISIONOFOPPORTUNITIESFOR@TRUEENGAGEMENTP
In addition, recent research has found that social media may inuence fans emotional
connection to the brand, such that it affects their relationship. In their examination of
)NDY#AR DRIVERS #LAVIO 7ALSH AND 6OORIS B FOUND THAT DRIVERS WERE CONVINCED
THATTHEIR4WITTERUSEALLOWEDTHEMTOENGAGEWITHFANSONANEMOTIONALLEVEL!SIMILAR
lNDING WAS REPORTED BY $AVIS 0IVEN AND "REAZEALE YET THEY FURTHER ACKNOW-
ledge that a lack of enjoyment and entertainment in brand interactions negatively
affected emotional ties, resulting in on-off consumption encounters with a brand
P 3PORT MANAGERS NEED TO BE WARY OF THIS AS ENCOUNTERS SUCH AS THIS MAY ULTI-
mately damage the development of any consumerbrand relationships. These discoveries
have important practical implications, as emotional bonds developed through social
media interaction may inuence the strength of fans relationships with the brand, neces-
sitating development and management of a brands social strategy accordingly.
CHALLENGES
The use of social media by sport organisations and sport managers is not without its chal-
LENGES AND IT WOULD BE REMISS NOT TO ACKNOWLEDGE THESE HERE $UE TO ITS PERCEIVED
infancy and unsubstantiated ability to deliver on certain marketing objectives (McCarthy,
2OWLEY!SHWORTH0IOCH SOMESPORTORGANISATIONSARESTILLHESITANTTOENGAGE

in social media communication and branding endeavours (see Case Study). To this end,
previous literature emphasises barriers and perceived challenges, both internal and exter-
NALTOTHEADOPTIONOFTHESENEWTECHNOLOGIESAMONGVARIOUSSPORTENTITIES&OREXAMPLE
INTHEIRSTUDYONMANAGERSOF#ANADIANRUNNINGEVENTS!BEZA/2EILLYAND2EID
identied ve challenges that impact on the benets that sport organisations can derive
from social media: lack of control, concerns over credibility, concerns over effectiveness,
difculties identifying true customers and the allocation of organisational resources. Sim-
ilarly, constant technological developments necessitate that organisations adapt their
STRATEGIESACCORDINGLY/3HEA!LONSO4HOMPSONETAL
7HILE SOCIAL MEDIA CAN PROVIDE SPORT ORGANISATIONS WITH THE MEANS TO SUPPORT THE
DEVELOPMENT OF CONSUMERnBRAND RELATIONSHIPS &OURNIER "REAZEALE AND &ETSCHERIN
ARGUETHATTHERISINGUSEOFANDRELIANCEONSUCHTECHNOLOGIESMAYFURTHERCOM-
PLICATETHERELATIONSHIPBUILDINGTASK)NSUPPORTOFTHISNOTION-C#ARTHYETAL
FOUND THAT 5+ FOOTBALL CLUB PERSONNEL WERE SCEPTICAL ABOUT NEGATIVE IMPLICATIONS ON
BRANDIMAGEFROMENGAGEMENTIN7EBANDTHEYFELTTHATENGAGINGWITHSOCIALMEDIA
may be detrimental to relationship building efforts. In addition, with a plethora of online
TOOLS AVAILABLE BRANDS FACE QUESTIONS ABOUT WHERE TO FOCUS THEIR EFFORTS &OR EXAMPLE
7ATERS ET AL FOUND THAT .ATIONAL &OOTBALL ,EAGUE .&, TEAMS USED THEIR
WEBSITEMOREOFTENTHAN&ACEBOOKTOCULTIVATERELATIONSHIPSWITHFANS&URTHERADDINGTO
the complexity is the notion that social media were only originally developed as a space
for individuals to share and connect with others. Organisations and brands have to nego-
tiate the private space of consumers, necessitating different marketing communication
ANDBRANDINGPRACTICESTOBEEFFECTIVEINTHISSPACE&OURNIER!VERY
!SMENTIONEDPREVIOUSLYCONSTANTENGAGEMENTWITHFANSCANSERVETOREINFORCEBRAND
ASSOCIATIONSANDDEVELOPCONSUMERSBRANDKNOWLEDGE+ELLER OFFERINGIMPORTANT
chances to build the brand. However, unique to the sporting context is the notion of an
off season; a time where limited attention is directed to the athlete, team or sport organ-
ISATION 4HIS ASPECT IS EVEN MORE PREVALENT FOR SPORT EVENTS 'IVEN THE ABILITY OF SOCIAL
media to aid in developing positive brand experiences that may contribute to the devel-
opment of brand loyalty and consumerbrand relationships, online experiences need to
SUPPORTBRANDEXPERIENCESDURINGOUTOFSEASONANDNON EVENTTIMES!SDISENGAGEMENT
may be construed by fans as a sign of relationship breakdown, sport managers must make
a concerted effort to ensure interaction and engagement is promoted and fostered
throughout the year.
Increasingly, fans use social media as direct communication tools and actively seek to
COMMUNICATE WITH BRANDS ON SOCIAL MEDIA AROUND THE CLOCK 4HOMPSON 4HIS
suggests a shift in the way fans communicate with brands, which may result in altered
expectations and increases in the amount of data brand personnel need to contend with.
0RACTITIONERS ACKNOWLEDGE THE CHALLENGE OF PROVIDING UNIQUE VALUE ADDED CONTENT ON
EACH OF THEIR SOCIAL MEDIA PLATFORMS 4HOMPSON 4HOMPSON ET AL )T IS
now necessary for a brand to meet the needs of fans in order to create value, as it serves
as a determinant of the consumers relationship to the brand and remains an important
issue for sport marketers to manage.
Moreover, sport organisations that aim to utilise social media to build their brands
and foster long-term consumerbrand relationships must align with the needs of all their
fans to ensure content and interactions deliver value for their specic fan groups. If they
do not, fans may avert or absolve their connection if they perceive content to be irrele-
vant or too infrequent. Thus, sport managers need to create content that is unique to
their organisation and also caters to the diverse needs of their fans, which requires
careful attention to the content they present.
$ESPITE POTENTIAL OPPORTUNITIES AFFORDED BY SOCIAL MEDIA NOT ALL SPORT EVENTS ARE AS
willing to embrace its usage. Social media are viewed as a challenge, rather than an
OPPORTUNITY FOR SOME EVENTS 4HE FOLLOWING CASE STUDY OF THE !USTRALIAN /PEN AN
annual international tennis tournament) and the Ryder Cup (a mens golf competition
PLAYEDBETWEENTEAMSFROM%UROPEANDTHE53 SERVESTOILLUSTRATETHISPOINTANDHIGH-
light the dilemma of social media for sport events.
Case study: Australian Open and Ryder Cup

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,ìq>V>iLi`*>iiii`>i
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Vi>ì]]-Vi]7Ei}] `}L>`VJournal of Mar-
keting, 66]nqx{
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i`>\/iV>iv1vL>VLInternet Research, 24]nq
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}>>i>}ivV>i`>International Journal of Sport Management and Marketing, 10]
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*>] 1} V> i`> i>V Vi\ Vi >> v vwV> >ViL
>}iAcademy of Marketing Studies Journal, 17]q
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Communication, 3]xqx{
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keting Quarterly, 21]q
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Event and Festival Management, 2]qx
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sumption{qLi] \/>E>V
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CHAPTER 16
Sport law
Neville Cox
Chapter objectives
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Key Terms: Tort Law; Contract Law; Intellectual Property; Rights and Equality
INTRODUCTION
At one level, the concept of the law having a role to play in the governance of sport may
seem an odd thing. Sport, after all, is supposed to be about fair play and Corinthian
values, whereas the law exists, in essence, to deal with situations either where these
values have been violated or where disputes cannot be amicably resolved. But the reality
is that the law is increasingly involved in the way in which sport operates and in this
chapter the contexts of such involvement are considered.
As will be seen, perhaps the biggest catalyst for the law getting involved in sport is
the presence of money as sport becomes a professional endeavour and a very big business
globally. This is not to say that the law can never have a role to play where amateur
sport is at stake (as will be seen, it can and does), but merely that where a great deal of
money is on the line (for example, in the context of exploitation of the so-called image
rights of sport bodies), then it is more likely that parties will have recourse to the law to
defend what they see as their rights.
What is interesting, however, is the fact that in many contexts, lawmakers and courts
seem to take the view that the law should either not apply or should apply only in a
watered down fashion where sport is at issue. Thus, for example, as is discussed, a punch
thrown in a rugby match is less likely to attract criminal liability than is an equivalent
230 Neville Cox
assault that takes place in a nightclub or another public place. In other words, for what-
ever reason, the view is taken that sport is something that is of benet (as a matter of
public policy) and therefore it should be allowed a considerable degree of laxity in so far
as the application of law is concerned.
WHAT IS SPORT?
Of course, this raises an initial question (with two levels of enquiry): namely, what is sport
or a sport? At a supercial level, this is signicant in that if an activity is dened as a sport
it may attract charitable status or government funding and, in addition, it will benet from
the relaxed application of the law mentioned in the previous paragraph. After all, if rugby,
boxing or MMA were not dened as sports then they might well be illegal. The difculty,
however, is that it can be very difcult to put a precise denition on what is meant by a
sport. Must it involve physical exertion (in which case it is doubtful whether snooker, darts
or some Olympic events like clay pigeon shooting could be dened as sport)? Must it
involve competition (in which case marathon runners or triathletes who simply want to
take part rather than compete, surely the essence of Corinthian values, cannot be seen as
being engaged in sport)? Must it involve the presence of a rule enforcer or referee (in which
case most amateur sporting activities where no such referee is present could not be dened
as sport)? The search for a denition of sport is a difcult one. Frankly, it is probably most
accurate (though not very satisfying) simply to say that if a national sport council denes
an activity as a sport then it is one and if it doesnt then it is not. (Something that must be
of concern for emerging forms of martial arts whose very legality depends on the question
of whether they can be recognised as sport.)
The second aspect to the question what is sport? is different, but even more relevant
in so far as sport law is concerned, and goes to the issue of popular understandings of
what is meant by sport. The point is that there are at least three different senses in which
the term sport is used, in relation to the same activity; let us say the game of soccer.
a First there is sport the activity, an amateur pursuit that contributes to good health,
is a source of fun and does not tend to generate revenue. So, if I play a ve-a-side
soccer match once a week, this is sport, but unless I break someones leg through an
action that is radically outside the rules of the game, the law is highly unlikely to be
concerned in what is happening.
b At the other end of the spectrum there is sport the business. Professional soccer,
like many other sports, is in effect a giant and highly successful reality television
show. Its quite remarkable success lies in its ability to convince people of the fact
that what it does is signicant for them (even though, quite frankly, it is not). Parti-
cipants in the show are paid often enormous sums of money to take part despite the
relative societal unimportance of their work, thus an English Premier League (EPL)
soccer player might earn in one week perhaps seven times more than a nurse will
earn in a year. And, critically, the viewers of this show (the fans) buy into the
myth of its importance and keep it aoat by funding it through the purchase of
tickets, access to televised broadcasts of matches and merchandise. Sport, in this
context, is big business. Thus in 2015 the global sport industry was reckoned to be
-> 231
worth approximately US$1.5 trillion. And because there is so much money involved
in this incarnation of sport, it is unsurprising that the law will also be involved.
c But in the middle, critically, there is what could be termed sport the something
special. This links to both the activity in which ordinary people like to participate
and also to the reality show that people watch. Far more than any other reality tele-
vision show, after all, sport generates deep-seated emotions of pride and joy within
devotees (and enables them to link what they see on their TV screens with what they
may engage in at a very amateur level). This is perhaps most obvious when a national
team is playing in an international competition and in this context the morale of an
entire country can be raised through pride connected with sporting success of that
national team. But it is not only when national pride is at stake that this applies. This
chapter is written in the immediate aftermath of the genuinely unprecedented situ-
ation where Leicester City FC, at odds of 5000/1, have won the 20152016 EPL title.
A friend of the chapters author, an eminent law professor from Indiana with precisely
no connections to the city of Leicester or the game of what he terms soccer, has been
caught up in the evolving story of their success, and his elation when they won the
league was truly remarkable. In other words, sport the business (the reality TV show)
is, for many people, more than just a business; it is a source of pride and joy, and, in
the case of some sport fans it can even be their primary basis for self-identication.
This is enormously important in so far as the laws involvement in sport is concerned.

The law has no interest in regulating sport the activity in a way that might chill or
restrict the benets that clearly ow from it. On the other hand, it clearly is interested in
regulating sport the business (or reality television show) because of the amount of
money that is on the line and because of the extent to which the commercial and other
rights of persons and businesses are at risk. But in practice, what has happened is that
even the regulation of the business of sport has been conditioned by the recognition of
the concept of sport the something special.
In other words, the law recognises that to some extent the business of sport should be
allowed to be self-regulating, in that (so it is argued) this is the best way to protect the
intangible benets that ow from its status as something special. Thus (to take an
obvious example), an objectively recognisable mistake by a referee in allowing or disal-
lowing a goal in a professional soccer match might have drastic commercial consequences
if, for example, it led to a team winning a major competition or another team being rele-
gated from the top league of a national soccer structure. In another type of industry, a
wrong decision of this kind which cost someone that much money might well be legally
reviewable. In sport, on the other hand, there is never a question of a referees decision
being scrutinised for error (rather than for bad faith) by a court of law, and because of
the view that if this were permitted it would undermine the special nature of sport.
To some extent this is the reason why it is now possible to speak of the concept of
Sport Law, which implies that this is a distinct body of law, rather than Sport and the
Law, which implies that the focus is merely on the application of law to a particular
activity. For various reasons, normal legal principles are applied to sport in a bespoke
manner, and what emerges is, arguably, a distinct lex sportiva. This chapter will consider,
briey, some of the various contexts in which the law interacts with sport in this
bespoke way.
232 Neville Cox
Before doing so, however, it is necessary briey to refer to two nal and related intro-
ductory matters: namely, the organisational structure by which competitive sport is
organised and the role of alternative mechanisms, rather than court based litigation, by
which disputes in organised sport are, for the most part, now resolved.
THE ORGANISATIONAL STRUCTURE OF SPORT
Organised sport, and not merely professional sport, globally operates on the basis of
three distinct strands of governance.
First, national governments as well as supranational governmental organisations (such
as for example, the European Union, UNESCO and the Council of Europe) have a signi-
cant role to play in regulating the business and organisation of sport. From a national
government perspective this is generally done through the work of national sport coun-
cils. The impetus behind such agencies is generally twofold. In the rst place, they exist
to ensure the proper development of sport within their territory both in terms of funding
grassroots sport and also in terms of facilitating and developing elite sport and high per-
formance athletes and national teams who, it is hoped, by achieving sporting glory will
bring credit to the country. In addition, they seek to promote ethical sport predominantly
though not exclusively in relation to anti-doping policy, something that is considered in
detail later.
Second, individual sports have their own governing bodies that operate at an inter-
national, regional and national level. These bodies have responsibility to organise com-
petitions in the particular sport and, where professional sport is concerned, they are
effectively responsible for the entire organisation of the profession in the relevant area.
This is itself an interesting dynamic and one that is potentially troubling. As things stand,
for example, the organisation of professional soccer in Britain is entirely in the hands of
the Football Association (FA), which is afliated to the European organisation UEFA,
and thence to the International Federation (FIFA). In other words, if one wishes to work
as a professional soccer player in England one has no choice but to play by the rules of
the FA, which necessarily means playing by the rules of UEFA and FIFA, however
unfair, arbitrary or unreasonable those rules might be. There are potential ways of chal-
lenging these rules (e.g. through an appeal on a point of EU law), but the reality of the
situation means that, naturally, the unitary governing body for the sport has a great deal
of power and a great deal of capacity to abuse that power. To be clear, there is no insin-
uation that the English FA is an abusive body; merely that the singular governing body
system allows for the possibility of such abuse.
Finally, the third strand of governance is that contained within the Olympic move-
ment. Theoretically the International Olympic Committee (IOC), which also spawns
regional and national Olympic councils, only has jurisdiction over two weeks of sport
every two years (the summer and winter Olympic Games), but in reality it has a great
deal more power in sport than this. In the rst place, it purports to provide moral leader-
ship over sport. In the second, for a large number of sports, which do not have signi-
cant independent revenue streams and depend for survival on their participation in the
Olympics and the sponsorship and television revenues that ow to them as a result, the
power that the IOC holds over them (in the sense that it can determine whether or not
-> 233
they become or remain Olympic sports) is potentially enormous. Furthermore, the

IOC has political clout, not least because countries that might wish, at some stage, to
host the Olympic Games will need to ensure that they are on good terms with it.
Linked to the IOC are two further bodies of signicance in so far as the governance of
sport is concerned. First, there is the World Anti-Doping Agency (WADA). This body was
set up in 1999 as a response to the apparent inability of sport governing bodies, national
governments and the Olympic movement to properly target doping in sport. WADA now
works as an independent doping agency that, with the consent of sport federations and
national governments, essentially dominates the construction and application of anti-doping
rules globally, which will be discussed in more detail later in this chapter.
Second, and very importantly, there is the International Court of Arbitration for
Sport (CAS), a body that, in its original incarnation, was set up by the IOC but which,
since 1993, operates as an independent arbitral body. To understand the functions of
CAS it is necessary rst to understand the nature of the arbitration mechanism and why
it is so signicant for sport. In essence, arbitration exists as an alternative to litigation
(that is, a normal civil action in court between parties in dispute). The process involves a
decision to refer a dispute to a nominated arbitrator. It is a less formal process than in-
court litigation and, theoretically, is quicker and cheaper as well. From the perspective
of sport governing bodies, moreover, it offers the signicant benet that it seems to
represent less of an incursion by an outside body (such as a court) into the way in which
sport is internally regulated. For this reason arbitration is the norm for sport disputes in
that most governing body rule books, which represent the terms of a contract between it
and its members, will contain an arbitration clause; that is, a clause requiring that any
disputes arising between members and governing bodies will be resolved exclusively by
arbitration. CAS has rst instance jurisdiction over all disputes arising in so far as inter-
national federations are concerned, but also many rule books from domestic governing
bodies will provide for an appeal from the decision of the domestic arbitrator to CAS.
The majority of cases heard by CAS relate to the doping issue but, in addition, it will
hear a large range of additional and potentially very important issues as well, such as
athlete selection.
THE INTERACTION OF LAW AND SPORT
For the remainder of this chapter, a brief outline of some of the various contexts in
which the law relates to sport will be considered. It is, perhaps, worth making the point
that some of these areas are of more relevance in different parts of the world than others.
In other words, observations are necessarily general, but in order to properly understand
the application of the law to particular sporting issues in particular regions, it will be
necessary to consult either a lawyer or a sport law textbook applicable to that region.
Furthermore, not every context in which the law affects sports people or the operation
of sport will be considered. There is no evaluation, for example, of the application of tax
law to sports people or to the regulation of online gambling. Rather the focus is on those
areas where, in the authors view, either the operation of the law has been affected by
the fact that it is sport that is at issue or, conversely, those situations where the way in
which sport operates has been signicantly affected by the law.
234 Neville Cox
LAW AND THE INTERNAL GOVERNANCE OF SPORT
As was mentioned above, in many jurisdictions, courts and lawmakers are content to
allow sport to be self-regulating as far as possible, seeing this as the best way to
promote the well-being of that sport and of all the values that it brings to society. On
the other hand, sport governing bodies have a signicant capacity to injure the rights
of people because of the power they have in a unitary governing body system. So for
this reason, the question of whether and when the law will step in is based on a
balance between, on the one hand, the need to protect the rights of parties and, on
the other, the characteristic deference that lawmakers display to the interests of sport
in being self-regulating.
So far as this balance is concerned, it seems clear that only some of the rules of sport
will actually be susceptible to legal challenge. Perhaps the clearest way of explaining this
is to say that sport is governed by a vast number of different regulations.
a First, there are the playing rules, from the forward pass rule in rugby, to the offside
rule in soccer, to the rule that, in order to win a set in tennis one must win at least
six games and be two clear games ahead. It is inconceivable that these could be the
subject of legal challenge, even though they, more than any other regulation, domi-
nate how the sport is played and mark out winners from losers.
b Second, there are the safety rules such as the high tackle rule in rugby, for example.
As will be seen later, it is possible for someone who is injured in sport to sue because
a player breached a safety rule, because a referee didnt apply it properly or because
a governing body was insufciently careful in designing the rule.
c Third, there are what might be termed the corporate regulations applying to the
business of sport, which are also considered later, virtually all of which can be legally
challenged.
d But for now what is important are the regulations that govern the relationship
between the player and the governing body; administrative regulations concerning
matters such as admission to the sport and discipline within it. When can these be
the subject of legal challenge?
As was mentioned above, it seems clear that the terms of a governing bodys rule book
will become the terms of a contract between it and its members. Theoretically, there-
fore, whenever it breaches these terms (e.g. by not applying a rule properly) then it may
be legally challenged for doing so. In addition, however, there may be an implied con-
tractual term that the governing body act in accordance with fair procedures in making
its decisions (and in the alternative, the player may rely on constitutional or human
rights to fair procedures in bringing such a challenge). So, for example, if a player was
banned for two years for a disciplinary infraction but was not given a hearing or was not
allowed to present his or her case, then it could be strongly argued that this would
represent a breach of his or her right to fair procedures and could be legally challenged.
Finally, as was discussed, the reality is that, because of the arbitration clause contained in
most sport governing bodies rule books, such a challenge would have to be brought by
means of arbitration.
-> 235
ANTI- DOPING RULES
A particularly important example of this kind of rule is that which pertains to doping. It
is important because of the unique impact that a doping allegation can have for a sports
person in that (1) a nding that a doping offence has occurred will generate, usually, a
mandatory period of suspension from taking part in any sporting event for 24 years and
(2) because there is nothing that will tarnish the reputation of a sports person in the way
that a nding that he or she was guilty of a doping offence will. Doping has been around
for centuries, but it can be conjectured that it only became a really widespread problem
in sport following the outbreak of the Cold War and it only became something in respect
of which sport governing bodies, and especially the IOC, became interested some time
after that. High prole events like Ben Johnsons positive drugs test at the 1988 Olympic
Games and the debacle surrounding the 1998 Tour de France where widespread doping
was discovered to have taken place led to renewed calls for a more effective way of
dealing with doping, not least because the ght against doping at the time was
notoriously fractured. Thus the result in 1999 was the creation of WADA, as previously
noted.
WADA has had four major impacts in so far as anti-doping policy is concerned. In the
rst place it has ensured that all governing bodies and national sport councils actually
have a concerted and effective anti-doping policy on their books. Second, it has ensured
that there is now a genuinely effective level of testing in place including, pivotally, out of
competition testing. Third, it has produced a World Anti-Doping Code (of which the
current version dates from 2015), which creates a unied policy on issues such as
the denition of doping, the process for testing and for dealing with a positive test and the
sanction for a positive test. Finally, it has created international standards in various areas,
including the list of banned substances in any given year and the accreditation of labora-
tories to test for doping. It is this code and these standards that form the basis for the
anti-doping policies appended to the rule books of most sport governing bodies.
The rules themselves are extremely strict and, in certain areas, very controversial. So,
for example, the code contains a large number of doping offences including trafcking,
evading doping control, failure to provide details of where one is, administering to young
people and so on, but the most basic one is committed if one tests positive for the pres-
ence of a banned substance in ones system. Naturally this allows for the possibility that
someone might fall foul of anti-doping rules when he or she ingested a banned substance
by accident, and quite clearly this has happened. Given the severity of the sanctions for
doping, it may seem unfair that someone could lose his or her livelihood and reputation
for accidentally ingesting a banned substance that might be contained in medication or
in a dietary supplement or whatever.
Second, the sanctions for doping are extremely tough, depending on circumstances;
they will typically involve either a two or four year suspension from competition, which,
in the case of a professional athlete, may well mean the end of their career. It is perhaps
difcult to see why someone who intentionally cheats in another context (someone who
dives to win a penalty in a football match, for example, thereby setting a bad example to
onlookers and also actually distorting the result of the contest) may receive no more than
a reprimand or a yellow card, but a player who may have had no intention to cheat but,
236 Neville Cox
inexplicably, has a banned substance in their system will face a two year ban. Nonethe-
less, anti-doping laws have a huge moral force behind them and have been upheld before
a number of courts and, most importantly, CAS. Furthermore, because of the serious-
ness of what is at stake, the Code provides for a very strict investigation process and also
ensures that there are strict rules for how a doping hearing is to proceed.
RIGHTS AND EQUALITY
Finally and briey, it is important to remember that athletes, even those who are so
prominently in the public limelight that members of the public appear to think that they
have ownership of them, are still human beings and, consequently, have human and con-
stitutional rights that must be respected by governing bodies. These include rights like
the right to fair procedures, the right to privacy and, where professional sport is con-
cerned, the right to earn a livelihood. It is not possible in this chapter to consider all of
the contexts in which human rights and sport collide, but it is worth briey noting that
the right to equality is one that generates particular concerns for sport.
Sport after all is an inherently unequal thing in that, in general, it favours men over
women, the able bodied over the disabled and, potentially, those who are afuent
enough to afford expensive sport technology over those who are not. Indeed genetic
research suggests that it may even favour people of specic ethnicities over others. In
other words, as a societal construct it strikes against one of the most basic values of
society and this necessarily creates an obligation for sport governing bodies positively to
advantage those sections of society that might be disadvantaged by the way in which
sport, especially sport the business, works; for example, by creating specic competitions
for women or the disabled.
CRIMINAL LAW
The designation of an act as a crime is a statement by the law that that act, either
because of its harmful impact or its moral wrongness (or more probably both), is so
serious that as a matter of policy, the state should be involved in prosecuting it. In this
respect it is different from a tort (considered next), which is a civil wrong, and where it
is up to a victim (plaintiff ) to sue the perpetrator (defendant) for harm suffered. Signi-
cantly, moreover, an act can simultaneously be a crime and a tort. Thus if attacked in a
pub, or possibly on a sport eld, the attacker may be criminally prosecuted by the state
and also sued in tort by the victim.
There are a number of contexts in which sport interacts with criminal law. Some of
these will not be dealt with here in any detail. Thus, for example, corruption, match
xing, illegal gambling and so on may well involve criminal offences, as well as leading to
sanctions from sport governing bodies. Furthermore, in some countries use of the type of
drugs that are banned in sport is also a crime. And there will be miscellaneous things
loosely connected with sport (though in violation of the policy of sport governing bodies)
that will also be criminal such as cruelty to animals, abuse of children, spectator violence
or anti-social behaviour and so on.
-> 237
More signicant for present purposes, is the question of whether and when activity
on the eld of play will violate the criminal law, especially laws against criminal assault.
Two issues arise here.
THE LEGALITY OF SPORT
In the rst place it is worth noting that the whole legality of contact sport is something
of an exception to normal criminal law principles. What is involved, after all, is a situ-
ation (a) where people deliberately try to hurt others and (b) where it is known that
catastrophic injuries do, in fact, occur as a result. This is true of contact sports like rugby,
but at least in this context the theoretical objective of someone putting in a very hard
tackle on an opponent is to stop him or her from making headway with the ball. But it is
even more true of sports like boxing or MMA, where rendering ones opponent uncon-
scious or in such physical pain that they cannot continue is the most effective way of
winning the contest. This behaviour would never be tolerated if it happened in a public
street where a few people might notice, so why should it be tolerated in sport where
there might be thousands of impressionable observers? It has been suggested that the
difference between the two scenarios is that in the sporting context participants consent
to any assaults that occur as a result of the playing of the game. But this is not a satis-
factory explanation in that it is a widely accepted legal principle that if something is (for
policy reasons) deemed to be a crime, then it does not cease to be a crime because the
victim consents to it (one cannot consent, for example, to being cannibalised). Perhaps
the better explanation is that, unlike cannibalism, sport is legal because lawmakers recog-
nise that sport is a good thing. In other words, it is believed that, as a matter of public
policy, sport should be legal. On the other hand many people will wonder what is good
about sports like boxing or MMA, which glorify the iniction of pain by one person on
another.
WHEN WILL ACTION ON THE FIELD OF PLAY BE

CRIMINAL?
Whatever the justications for sport, it can be concluded that its legality is not in ques-
tion (and as was noted above, this is one of the reasons why it is so critical to have ones
activity deemed to be a sport). But this does not mean that everything that happens on a
sport eld must also be legal. Theoretically, the fact that something is within the rules of
the game does not necessarily mean that it is legal (in that the terms of the criminal law
cannot be set by a private organisation like a sport governing body). In practice, however,
it is inconceivable that behaviour within the rules of the game will be criminal, and it is
highly unlikely that behaviour which is outside the rules but is so common that it repres-
ents part of what commentators have termed the playing culture of sport (an accidental
high tackle in rugby, for example) would be criminally prosecuted. In essence the
approach of the law appears to be that if sport is itself lawful as a matter of policy, the
same policy would suggest that the law should not seek to inhibit the unfettered playing
238 Neville Cox
of that sport. In other words, a rugby player should be allowed to focus on scoring tries
and preventing opponents from doing the same, and should not have to have one eye on
the possibility that if he attempts to tackle an opponent and makes a mistake this could
lead to him facing criminal prosecution.
As a result it may condently be suggested that it is only when an action is completely
removed from the playing of the game, such as an off the ball punch, that it could and
might be criminally prosecuted (although realistically very few such actions will be the
subject of prosecutions). This seems appropriate in that deeming an act to be a crime is
the ultimate statement from society that it is socially and morally unacceptable. Thus as
the English Court of Appeal suggested in R v Barnes, there are three ways of responding
to on-eld incidents depending on the seriousness of the incident in question. At the
lowest level it should be dealt with by the sport governing body; at the next it should be
dealt with through a civil action taken by a victim; and it is only at the highest levels of
seriousness that the act should warrant criminal prosecution.
TORT LAW
As was mentioned above, a tort is a civil wrong whereby an injured party (the plaintiff )
sues the person or entity that caused his or her harm (the defendant). There are any
numbers of torts protecting the various rights of citizens; thus the right to reputation is
protected by the tort of defamation and the right to the peaceful enjoyment of their
property is protected by the tort of nuisance. In a sporting context the tort of trespass to
the person (assault and battery) might have application. For present purposes, though,
the most signicant tort is the tort of negligence. This tort arises where one party owes
another a duty of care, breaches the required standard of care by acting unreasonably in
the circumstances (the denition of negligence) and, thereby, causes harm to that
person.
There are of course many manners of circumstances in life where a persons negli-
gence can cause harm to someone else: for example, if a person provides clients with
decient legal advice or medical care, or employees are provided with an unsafe system
of work. Thus the tort of negligence is an amorphous one covering a great deal of
behaviour.
In so far as the organisation of sport is concerned, what this means is that, in a sport-
ing context, anyone who acts unreasonably and causes harm to another person in circum-
stances where they owed a duty not to commit the harmful act has committed the tort. The
italicised section of the previous sentence is important. A batsman in a cricket match can
hit the ball as hard as he wants and without caring what direction he is hitting it in and,
if he hits an opposing elder, his fellow batsman or an umpire, he will not be guilty of
negligence because he has no duty not to hit the ball in such unrestrained fashion. But of
course there will be many circumstances in which the tort can be committed in a sport-
ing context and perhaps the easiest way to outline these is by reference to the categories
of people who might be defendants in cases of this kind.
In the rst place a participant in a sport event could commit the tort. Theoretically
this could arise whenever he or she breaches the rules of the game and thus causes injury
to another participant. Realistically, though, liability will tend only to be imposed where
-> 239
there is a particularly egregious or unusual breach of the rules. The exception here is the
game of golf, where the rules of the game are all playing rather than safety rules and
hence where the liability of a golfer who injures another will be gauged by reference to
commonsense standards having regard to what happened. Alternatively the participant
could cause injury to a spectator: for example, by negligently whacking a tennis ball into
the crowd in a t of rage.
Second, a referee could commit the tort of negligence. It seems clear that courts
would be resistant to a situation where a referee could be sued for negligently applying
playing rules: for example, by failing to award a goal that decided the result of a match.
But in various jurisdictions, courts have been prepared to impose liability on referees for
failing to enforce safety rules: for example, the safety aspects of scrummaging rules in
rugby, as a result of which players have been catastrophically injured.
Third, coaches and sports teachers can commit the tort, generally in circumstances
where, as a result of their negligence, players under their control have become injured.
Fourth, it is a matter of controversy as to whether sport governing bodies can be sued
for negligence on the basis that the safety rules of sport that they have designed are inad-
equate to protect the safety and well-being of players.
Fifth, the organisers of sport events can potentially be sued by participants or spec-
tators if they have suffered injury as a result of negligence within the organisational
framework: for example, in circumstances where, as a result of the supporters being
placed too close to the action of, for instance, a motor racing rally, a spectator is hit by a
car whose driver has lost control of the vehicle.
Finally, the owner or occupier of a sport stadium can be sued if someone inside or
outside the stadium suffers harm as a result of either the state of the premises or what is
occurring on the premises. In the former situation a spectator might be injured because
of a defective stadium wall. In the latter a passer-by might be hit by a cricket ball hit out
of a cricket stadium. In addition someone who lives beside a stadium where a sport event
is ongoing might sue for the tort of nuisance if his or her ability to enjoy his or her prop-
erty is signicantly impaired as a result of the sport event.
Obviously, it is not the case that every time any of the above incidents occur, an
injured party can sue for negligence but merely that these are examples of the kind of
incidents that generate legal liability. The experience in many countries, moreover, is
that the courts, cognisant of the public policy benets connected with sport, will be
extremely reluctant to allow liability to be imposed for a sporting tort save in the most
extreme circumstances.
INTELLECTUAL PROPERTY LAW AND AMBUSH

MARKETING
There are various different types of property rights that someone can enjoy, one of
which is an intellectual property right. As the name suggests, this relates to an entitle-
ment over something that is valuable but which, at the same time, is not tangible or
solid like a house or a car or a piece of jewellery. What is being discussed is, in essence,
something that is valuable but is the product of the creation of ones mind such as
literary or artistic works, inventions, symbols, designs, names and so on.
240 Neville Cox
These are extraordinarily important in so far as the business of sport is concerned,

because there is such a huge amount of money to be made from the desire of a range of
people from supporters to sponsors to be associated with a sporting entity, be it a player,
a club or an event. These people can be distinguished from those who simply wish to
view an event and who will pay for the privilege as a matter of contract law, as discussed
below. Rather these people want to be associated with the entity in different ways.
Perhaps they are a company that wants a superstar like David Beckham to feature in
advertisements for and to endorse their product. Perhaps they are a supporter of Real
Madrid FC or of the Australian rugby team who wish to buy merchandise connected
with the team they support, including replica kits to wear. Perhaps they are a company
that wants to sponsor the Olympic Games and have its name mentioned in connection
with that huge event. The connection between all these different kinds of party is that
they want, at some level, to connect with the image of a sporting entity.
For this reason it goes without saying that the image of any sporting entity can be
exceptionally valuable in the sense that there is a lot of money to be made from it. In
some countries, for example many continental European countries, this is relatively
unproblematic in that the law recognises a right to an image. Similarly in the US, there
is what is termed a tort of appropriation of personality that covers situations of this kind.
On the other hand, in other countries, like Australia and the UK, the law has been
reluctant to recognise a right to ones image and a right over an event. This means that
lawyers need to devise circuitous means to protect the value of a sporting image.
Intellectual property law is of value here. So, for example, it is possible to secure a
trademark in a distinguishing mark belonging to the mark holder that prohibits other
people using that mark to facilitate the selling of their goods. As a result, a great many
sporting brands, images, club crests and so on have been trademarked. Similarly, it is
possible to secure a copyright in a design that prohibits anyone other than the copyright
holder from using that design for any purpose and, as a result, again many iconic sport-
ing designs from the Manchester United club crest to the Olympic rings are protected by
copyright. Finally, in both Australia and England the courts have recognised the possib-
ility that where someone uses a celebritys image in circumstances that create an impli-
cation that the celebrity is endorsing them or their product, then they may be guilty of
what is known as passing off ; that is, passing off their product as if it had the celebritys
endorsement.
The problem is that, whereas these protections are reasonably effective, nonetheless
there will be many ways in which a company can link to a sport event that is not pro-
hibited by intellectual property law. The making of this kind of link is known as ambush
marketing and will arise in a diverse range of circumstances ranging from where a
company hands out free t-shirts to entrants into a stadium where an event will take
place, to where a company runs an advertising campaign in the lead-up to a major sport
event that links their product not with the event but rather the relevant sport. The link
between them all is that, in the minds of the general public, including those viewing the
event on television, a link is drawn between the event and the product of the ambusher.
This is deeply concerning for sport event organisers because they want to attract spon-
sors who will pay large sums of money to be associated with the event, but if companies
know that they can achieve the same level of association with the event by ambush mar-
keting as by sponsoring, then it makes little nancial sense to pay the sponsor fee.
-> 241
As a result of this, there has been a range of efforts to try to deal with ambush mar-
keting. Certainly for major sport events such as the Olympic Games, it is now almost
inevitable that the host country will pass bespoke legislation rendering such ambush
marketing a criminal offence. The effectiveness of such laws is, however, uncertain.
CONTRACT LAW
A contract is a binding legal agreement and it need hardly be said that professional sport
involves a huge number of different contracts. Every time a fee is paid to enter a sport
stadium a contract is entered into (and the ticket should contain the entry terms and
conditions). Every time a player is paid money by the club that employs him or her, this
is considered a contract. Increasingly, contracts may not merely provide for the fact that
the player will play for that club, but also permit the club to take some measure of
control over the players so-called image rights. And at a higher end of the scale, con-
tracts will govern sponsorship agreements, endorsement agreements and television agree-
ments. This is too big an issue to cover in any detail in this chapter.
THE RIGHTS OF EMPLOYEES AND SERVICE

PROVIDERS
Where the business of sport is concerned, athletes can properly be characterised as either
employees, if they are employed by a club, or service providers. In a normal scenario,
however, where an employee has a contract with an employer the interests of that
employee are protected by any number of laws. In particular, there can be no question
of that employee being sold to another employee. Indeed such an idea would be repul-
sive to many as it would hark back to the days of slavery. It is curious, therefore, that
such a notion is common within professional sport. From the perspective of European
sport, until comparatively recently, a player could be sold even after the conclusion of
his or her employment contract and his or her former club could refuse to let him sign
for a new club if they did not pay the requisite asking fee.
Again from a European perspective, this all changed with the decision of the Court of
Justice of the European Union in the colloquially famous case of Union Royale Belge des
Socits de Football Association ASBL v. Bosman. In this case, using the EU concept of the
free movement of workers, the European Court of Justice struck down two rules that
had been inherent to European, and global, soccer: namely (1) that players could be sold
at the end of their contract and could be refused permission to play with another club if
they were not sold and (2) that clubs competing in pan-European football competitions
were required to eld a certain number of players of the nationality of the league from
which those clubs came. European law thus strongly protects the rights of players who
wish to travel within the territory of the European Union to ply their trades. In par-
ticular, by designating sport players as employees or workers, the Bosman decision should
surely make it clear that this is a context, like any other, in which the normal rules of
employment law should apply.
242 Neville Cox
Having said that, it is arguable that in a number of areas the normal rules of labour
and employment law are routinely breached by the way in which professional sport
operates. Once again, however, the point is worth making that courts, lawmakers and
the general public, convinced by the concept of sport as something special, tend to over-
look such issues.
REVIEW QUESTIONS
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CHAPTER 17
Sport event management

Insun Sunny Lee and Graham Brown
Chapter objectives
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Key Terms: Sport Events; Sport Event Experience; Sport Event Motivation; Sport
Event Impacts
INTRODUCTION
Sport events are an important and growing event sector, encompassing the full spectrum
from community sport events to international sport competitions. They offer a range of
experiences to event spectators and participants, and generate various impacts on the
community. As the types and uses of sport events have grown, sport events have become
more complex and require diverse skills from event management, from operation skills
to strategic managerial knowledge, to properly manage a sport event. This chapter pro-
vides a broad overview of sport events in terms of the four topics of sport event manage-
ment. First, the classication of sport events by size and sporting and temporal
characteristics is discussed. The second and third topics are the motivations of sport
event spectators and participants, and the special nature of sport events that shapes their
experiences. Lastly, a range of impacts of sport events is discussed to illustrate the
broader role of sport events for community, economic and social development.
SPORT EVENT CLASSIFICATION
Sport events take many forms. There is no commonly agreed, strict classication that can
be used to describe and characterise sport events. However, there are classications that
244 Insun Sunny Lee and Graham Brown
are commonly used. The classication of events is important as different types of sport
events produce their own unique issues related to planning, impacts and management.
Several classications are outlined below.
Size
Events can be classied by size. The size varies from competitions in small communities
to spectacular sport events that attract universal attention. Although the denitions of
these subdivisions are often subjective, this classication is based on the scale of impacts
in terms of attendance, media prole, infrastructure, costs and benets (see Figure 17.1).
A mega event is dened as an event that attracts one million visitors or more, costs
$500 million or more to stage and garners worldwide media interest as a must see
event (Getz, 2005). Examples of mega sport events are the Olympic Games, the
Commonwealth Games and the FIFA World Cup. Cities around the world are increas-
ingly hosting high prole events as a means to achieve strategic objectives. Such events
can be used as a catalyst to attract event tourists, to stimulate economic growth, to
build or strengthen a destination brand/image through media attention and to have
the legacy of facilities and infrastructures. Although the difculties and risks involved
in organising and managing mega events have received attention in recent years (Chap-
pelet & Parent, 2015), there are still many cities bidding to host mega sport events.
Sports are becoming an important part of the urban economy along the same lines as
culture and tourism, and cities try to develop their sport industry through hosting
mega sport events. While some cities want to host a mega event mainly to upgrade
their national and international position, and for economic and physical regeneration,
some of the leading cities of the world (e.g. London 2012 Olympics Games) bid for a
mega event to secure their dominance as world-leading centres of economic activity,
culture, sport and tourism (Shoval, 2002).
Scale of impacts
Local/community Major Hallmark Mega-event
Size of event
FIGURE 17.1 -V>iv>VLiviiii>]]

-ii>>}ii 245
Hallmark events refer to those events that become so identied with the spirit or
ethos of a town, city or region that they become synonymous with the name of the
place, and gain widespread recognition and awareness (Allen, OToole, Harris &
McDonnell, 2011, p. 13). Such events, which are identied with the very character of
these places and their citizens, bring huge tourist dollars, a strong sense of local pride
and international recognition. Hallmark events are an important component of destina-
tion marketing. For example, the event and destination can become inextricably linked,
such as the Tennis Championships at Wimbledon. Hallmark events can even be related
to whole countries rather than just cities or regions, with one example being the Tour de
France.
Major events refer to those events that are capable, by their scale and media interest,
of attracting signicant visitor numbers, media coverage and economic benets (Allen et
al., 2011, p. 14). Many top international sporting championships t into this category
and are increasingly being sought after and bid for by national sporting organisations and
governments. UK Sport (1999, p. 4) considers that three elements are required for an
event to be classed as a major sporting event:
s )T MUST INVOLVE COMPETITION BETWEEN TEAMS ANDOR INDIVIDUALS REPRESENTING A

number of nations.
s )TMUSTATTRACTSIGNIlCANTPUBLICINTERESTNATIONALLYANDINTERNATIONALLYTHROUGHSPEC-
tator attendance and media coverage.
s )T MUST BE OF INTERNATIONAL SIGNIlCANCE TO THE SPORT CONCERNED AND FEATURE PROMI-
nently on its international calendar.
Local/community events usually operate using existing infrastructures and do not require
huge investments of public and private funds to stage. They are more manageable than
larger-scale events that frequently result in huge debts for host communities, and might
bring in more positive impacts on host communities (Higham, 1999). Local and com-
munity sport events produce a range of benets, including enhancing pride in the com-
munity, strengthening a feeling of belonging and celebrating the subculture associated
with a particular sport activity. They can also help to expose people to new experiences,
and encourage participation in sport activities. Professional sport leagues run by national,
state and local sport organisations t into this category, as well as charity fundraising
events that are a growing subsection of community sport events. These charity fundrais-
ing events seek to increase the prole and raise funds for their respective charities
through sport participation.
Sporting characteristics
Sport events can be classied by sporting characteristics (Chappelet & Parent, 2015). An
event can include single or several sports. For events using multiple venues to serve mul-
tiple sport competitions, special attention must be placed on coordination across the
various venues to ensure the event is presented as a unied whole and to avoid any deci-
sion making bottlenecks and communication problems. Accessibility for event spectators
and co-workers between the venues is another factor to consider when organising such
events. Elite competition must be distinguished from mass participation sport events.
Competition of professional sport players is a core product of many sport events, and
spectators attend the event to watch the competition and support a particular player or
team. In contrast, mass participation sport events are participatory sport events that
attract event participation. This kind of sport event offers a participatory activity as a
core product of the event. In this context, spectators who are passive consumers of an
event are different from event participants who are active event consumers in terms of
motives to attend and their behaviour and experiences at the event.
Temporal characteristics
Another important classication of sport events is temporal characteristics of the event,
such as the duration and periodicity (Chappelet & Parent, 2015). Regularly scheduled
events at one destination require different event planning and management compared to
that needed for one-off events. For example, the key tasks of regularly scheduled events
at one destination would involve managing loyal event attendees and organising innov-
ative event programmes to increase re-visitation. On the other hand, for those events
that move from one destination to another through a formal bid, for instance champion-
ships and mega events such as the Olympic Games, knowledge management and transfer
processes would be a key task as well as the bid process (Parent, MacDonald & Goulet,
2014). The next host destination can reduce potential problems and mistakes, and suc-
cessfully plan the event by learning from the knowledge acquired by the previous organ-
isation through its experiences.
MOTIVES OF SPORT EVENT SPECTATORS AND

PARTICIPANTS
In the event context, each person has different experiences at the same event as personal
meanings that are attached to event experiences relate directly to personal needs, inter-
ests and motivations. Understanding motivations is one of the ways to explore peoples
personal meanings attached to event experiences. Motivation can be described as the
driving force within individuals that impels them to action (Schiffman, OCass, Paladino
& Carlson, 2014, p. 74). Event attendees have particular reasons and motivations to take
part in certain activities that are undertaken in particular settings at the event. This is so
they can gain their desired experiences, leading onto the desired outcomes and benets
for them. Therefore, by having a good understanding of their markets motivations,
event organisers can manage the event so that it reects the markets needs and wants.
A large body of literature has been developed around event motivations, and the
escaping and seeking motivation theory (Iso-Ahola, 1980) and the push and pull motives
(Dann, 1981) have often been adopted to explain attendees motives for attending
events in a range of different contexts.
s 4HE ESCAPING AND SEEKING MOTIVATION THEORY ASSERTS THAT SEEKING AND ESCAPISM ARE
major factors inuencing decision making in recreational activity. People are seeking
to nd personal and interpersonal rewards and hoping to escape aspects of personal
and interpersonal environments that bother them. For example, people seek events
-ii>>}ii 247
as an opportunity to escape from their personal problems (personal escape), to

experience feelings of mastery and excitement (personal seeking), getting away from
the usual demands of life (interpersonal escape) and to interact with friends and
family (interpersonal seeking).
s 0USHANDPULLMOTIVESAREALSOCOMMONLYUSEDWHENDISCUSSINGMOTIVATIONWITHIN
the context of events. While push factors as internal forces determine the desire to
attend an event, pull factors are external factors that determine the choice of event.
For example, push motives would be the need for relaxation and socialisation, and
pull motives the uniqueness of events such as the presence of famous players and
the prestige of the event.
Although the escaping and seeking motivation theory and the push and pull motives are
useful to understand general event motivations, Funk, Filo, Beaton and Pritchard (2009,
p. 129) identied specic motives of spectators in the context of sport events, which can
be classied into ve categories: Socialisation, Performance, Excitement, Esteem and
Diversion (SPEED).
s 3OCIALISATIONISRELATEDTOTHEINTERPERSONALASPECT)TREPRESENTSADESIREFORSOCIAB-
ility and the extent to which a person perceives attending a sport event as an oppor-
tunity to interact with friends, family and other spectators. It includes group
afliation, family bonding, friend bonding, social interaction and camaraderie.
s 0ERFORMANCERELATESTOTHEEXTENTTOWHICHANINDIVIDUALBELIEVESTHATSPORTEVENTS
provide excellence, beauty and creativity of athletic performance. Individuals are
motivated to seek a sport event experience due to opportunities to enjoy the grace,
skill and artistry of athletic movement.
s %XCITEMENT REPRESENTS THE EXTENT TO WHICH A SPORT EVENT IS PERCEIVED AS PROVIDING
stimulation through the consumption experience. Individuals are motivated to seek
a sport event experience due to opportunities for mental action and exploration
from the atmospheric conditions created by the uncertainty of participation and
competition, and the spectacle of associated activities.
s %STEEMREmECTSTHEEXTENTTOWHICHANINDIVIDUALPERCEIVESATTENDINGASPORTEVENT
as providing an opportunity for vicarious achievement. Esteem relates closely to
motives of self-esteem, group afliation achievement, community support and vicar-
ious achievement.
s $IVERSION REmECTS THE EXTENT TO WHICH A PERSON PERCEIVES ATTENDING A SPORT EVENT
provides an opportunity to escape the hassles and normal routine of everyday life.
Diversion highlights motives of escape.
Although some of Funk et al.s (2009) ve motivations of sport spectators could be rel-
evant to active sport event participants (i.e. amateur sport athletes such as marathon
runners, mountain bikers, cyclists), active participants are likely to have different motives
as the desired event experiences differ. As mass participation sport events have become
increasingly popular over the past 10 years, not only in the total number of events, but
also in the numbers of event participants, it is important to distinguish between them
when understanding their motives. Benckendorff and Pearce (2012) discuss motives such
as the need for self-development and self-actualisation and for transformative experiences
as more inuential to active participants as such events are often set to push the bound-
aries of personal abilities.
The concept of the event travel career trajectory (Getz, 2008) is particularly helpful
in understanding motives for active sport event participants. The event travel career tra-
jectory suggests that people highly engaged in a sport are likely to develop event-specic
travel careers as they become more highly involved, and event motivations change with
respect to the level of engagement in a particular sport. It is argued that as involvement
in a sport increases, an event travel career changes across six dimensions (see Table 17.1)
that constitute a pattern of travel to sport events that clearly distinguish the highly
involved from less involved event goers (Getz & Andersson, 2010).
SPORT EVENT EXPERIENCE
In the event industry, the demand for creative event experiences is unquestionably
increasing. Therefore, event managers must attempt to coordinate special, emotionally
engaging and memorable experiences to accompany event programmes to deliver
extraordinary experiences for the attendees and so ensure a sustainable competitive
advantage for the event. Events can be seen as a created experience environment in
which event attendees can have active dialogue and co-construct personalised experi-
ences. Events are no longer a simple service or entertainment; they rather act as spaces
for event attendees to have their own experiences within the event settings provided.
The services and products that the event provides may be the same for all attendees,
but attendees can construct different experiences and create different values from
those experiences.
Events as service product experiences consist of three elements (Lovelock, Patterson
& Walker, 2004):
TABLE 17.1 iV>ii>iV
Dimension A pattern of travel to events
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-ii>>}ii 249
s THE core service and benets that the customer experiences for example, a sport
competition;
s THEtangible expected product for example, the venue and seating;
s THE augmented product or additional features that differentiate an event from its
competitors for example, social and educational activities.
Traditional sport events such as the Olympics always incorporate ceremonies and festi-
vals, and it has now become common to incorporate a programme of special events with
the sport competition to create a sport festival with heightened appeal (Green, 2001).
Many sport events provide social, educational and entertainment activities beyond the
actual core product of the event (i.e. the sport competition) in the days surrounding the
sport competition. For example, the Tour Down Under, an international professional
road cycling event held in South Australia, presents six professional cycling race stages
with a wide range of augmented activities such as recreational rides and street parties to
attract a broad range of people. These expansions and augmentations provide a useful
base for event promotions to broaden their appeal and to increase the number of attend-
ees attracted to the event.
It is recognised that the event experience itself cannot be perfectly designed, but it
can be facilitated or constrained by producing a specic environment and providing
opportunities for experiences specic to that event (Berridge, 2014). Event design is a
planned and managed process based on specic understandings of the event objectives
and desired experience outcomes. An understanding of the special nature of sport
events that shapes event experiences would be useful in event design. Sport events tem-
porarily create special spaces for liminal experiences that are different from everyday
experiences. The notion of liminality was developed in the eld of anthropology, in the
ritual practice theory in particular, to explain the phases in the tribal ritual processes
where an ambiguous state is created by participants (Turner, 1982). Event academics
(Getz, 2007) acknowledge that event practices contain a liminal phenomenon as events
temporarily create special spaces for event experiences that are different from everyday
experiences and event visitors can experience the transient state, including communitas,
during the event. Communitas, the temporary communal human relationship, is identi-
ed as one of the ambiguous states constructed through liminality (Turner, 1982).
Communitas describes a special sense of togetherness that exists outside ordinary social
structure; attendees have something very specic in common and build temporary rela-
tionships among themselves within the group. In the sport event context, the unique
ethos associated with a particular sport such as distinctive dress, language and behaviour
become acceptable as normal practices within a sport event space. Attendees are able
to experience a transformation of the identity that exists in their daily life (Shipway &
Jones, 2007) due to the liminality created by an event. This makes it possible to be
involved more deeply and more intensively in a sport within the event space. According
to the ow theory (Csikszentmihalyi & Csikszentmihalyi, 1988), people feel most
happy when they are in a state of concentration with an activity and deeply involved in
an enjoyable activity. Sport events have the capability of generating ow experiences
through deep involvement, intense concentration and transcendence of self during the
event period within the event setting away from their other commitments. Event
attendees may undergo a variety of self-transcending experiences at an event that could
lead to a sense of accomplishment or transformation. A sense of accomplishment, trans-

formation and mastery (e.g. a challenge to abilities) have been identied as dominant
motives particularly of sport event active participants such as amateur cyclists (Lamont
& McKay, 2012).
The engagement with an event can also generate a subculture in which individuals,
with diverse social backgrounds, are gathered around the shared core values associated
with a particular sport, creating communitas among attendees. A sense of camaraderie
(Lamont & McKay, 2012) is also commonly mentioned as one of the factors that can
make participants want to return to an event. Thus, the shared sport experiences at an
event can increase the emotional intensity of links among participants and afrm the
social identity in relation to the particular sport.
Sport events present authentic experiences (Hinch & Higham, 2005) as they provide
different experiences every time. This perceived authenticity is due to the uncertainty of
outcomes, the role of athletic display, the kinaesthetic nature of sport activities and the
tendency for strong engagement in sport. The authenticity of sport events makes
ordinary space symbolic and valued, and inspires event attendees to build a leisure/sport
career. Authentic experiences such as seeing athletes in the esh, taking a direct part in
the sport at a valued event space (e.g. a particular symbolic stadium) and having access
to behind the scenes (Lamont & McKay, 2012, p. 326), reinforce commitment to the
sport activity and help build subcultural capital (Green & Jones, 2005). The perishable
characteristic of events as a service experience also enhances authenticity. Even if an
event is regularly staged, the event experiences of a specic event are only available at a
specic time and cannot be experienced again (Getz, 2007). A particular occurrence of
an event experience, such as a famous win by a favourite team, presents authentic per-
sonal stories that contribute to develop an individuals sense of identity (Shipway &
Jones, 2007). The behaviours of event attendees, such as purchasing event merchandise
or wearing clothing that shows previous attendance at events, are associated with the
authentic nature of events. Event merchandise can be used to display an association with
a sport activity and event, held at a particular place and at a specic time. This may
demonstrate the level of event involvement, linked to an event career, level of skill or
knowledge and ability in relation to the specic sport. These behaviours allow particip-
ants to present their identity to others and develop their identity simultaneously.
IMPACTS OF SPORT EVENTS
All events produce a range of both positive and negative impacts on their host com-
munities. It is important for event managers to identify and monitor these impacts and
manage them to achieve the best outcomes for all stakeholders, so that the event con-
tributes positively to the community and economic and social development. The triple
bottom line approach is a popular tool to take into account the social and environmental
impacts, as well as the economic impacts, which involves an analysis of the event
impacts when deciding which events to support, or when evaluating the nal outcomes
of events. Evaluation of impacts of events has to consider not only short-term, tangible
and direct impacts but also long-term, intangible and/or indirect impacts. A summary of
possible positive and negative impacts of sport events is shown in Table 17.2.
-ii>>}ii 251
TABLE 17.2 /i>Vvii
Impacts of Positive impacts Negative impacts

events
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sport events, economic impacts of events have been a primary concern of many stake-
holders. The three main sources of economic impacts of events are (1) expenditure by
visitors from outside the region, (2) capital expenditure on facilities required to conduct
the event, and (3) expenditure incurred by event organisers and sponsors to stage the
event (Jago & Dwyer, 2006). The rst category is the tourism revenue generated by an
event. Sport events attract a huge number of event tourists who visit the host city to
attend an event from interstate or overseas. In addition to their event-related spending,
for example event tickets, event tourists spend on accommodation, travel and goods and
services in the host city. The growth in tourism and concentration of economic activity
during the event, however, can create a displacement effect (Getz, 2007) that actually
hurts local businesses. Local people may stay away from business areas due to event-
related crowds and disturbance, and sometimes leave town during the event. Other
types of tourists may avoid visiting the host city during an event due to inated prices.
To avoid the displacement effect, event leveraging business strategies should be formu-
lated to help a variety of businesses in the community benet.
The second category is related to economic benets generated when an event attracts
new money into the host city from investments and government grants, and sponsorship
in facilities, such as construction of event venues and infrastructures. Events can serve as
a catalyst for accelerating investments in venues and infrastructures that would other-
wise be needed. This generates a lot of construction and thereby stimulates employment
growth. Mega sport events particularly generate huge benets from the legacy of infra-
structure and venues. Such a legacy might have a long-term benet in generating new
tourism demand and business. The infrastructural developments associated with an
event, such as new hotels, transportation and other facilities that benet tourism, lead to
future tax gains. Events lead to more consumption of heavily taxed goods and services,
as well as bringing new tourism revenue. The investments in infrastructure and venues
should be carefully planned as they could affect the host community negatively. If a new
venue was built primarily to host a mega sport event, it would impose higher taxation on
residents for maintaining the under-utilised facilities after the event (Getz, 2007). Event
legacy planning thus becomes an important element of sport event planning and man-
agement to avoid this issue and properly plan how to use the newly developed infra-
structure and venues after the event.
The last source of economic impacts is expenditure incurred for event operation, for
example, equipment rental, venue rental, advertising, suppliers, utilities and other
expenses related to day-to-day operations. To maximise these impacts, it is important to
use local suppliers and products and employ local people in event operations so that the
leakages are minimised and the income remains local. Multiplier analysis of economic
impact (Mules & Dwyer, 2005) suggests that the new incomes generated by events are
circulated through to other businesses and workers who supply those who rst receive
the spending, thus re-spending locally.
Event stakeholders are no longer exclusively looking at the economic aspects of
events. They are paying more attention to the social impacts that events generate for the
host community and the strategies to maximise the social benets. Social impacts of
events are considered particularly important as they enhance community support
towards staging an event and contribute to social capital and community development.
Psychic income has relatively recently received attention as an important impact of
events. Psychic income, dened as the emotional and psychological perceptions of local
residents of an event (Crompton, 2004), encompasses increased connectedness and
social bonding, community pride and community excitement, and a reduced sense of
social alienation. The ability that sport events have to increase the permanent level of
community interest in a particular sport has also been noted as this leads to greater parti-
cipation, creating community health benets (Brown, Lee, King & Shipway, 2015). The
catalytic effects of the event on facilities or activities on the communitys well-being can
be generated by the event (Dwyer, Mellor, Mistilis & Mules, 2000), for example, youth
sport clinics, educational training programmes and philanthropic causes involving sport
scholarships, youth, the elderly and the underprivileged. The quality of community life
is enhanced through entertainment and recreation opportunities and the use of the new
and improved sporting infrastructure. Careful planning needs to take place to reduce any
disruption to community life, for example, noise and congestion, overcrowding,
increased cost of living and possible conicts between host and event tourists over
resource use.
The ability of events to generate media coverage provides an opportunity for the host
cities to showcase what they have to offer and promote specic areas to national and
-ii>>}ii 253
international audiences. The increased awareness and improved prole of the host com-
munity is important to attract tourists and business investments in todays highly com-
petitive global market. Media management is essential to avoid any negative publicity
about the event: for example, issues related to accidents or poor event management on
the destination image.
Sport events can have a major impact on the physical environment and ecological
systems, especially those associated with construction projects. However, events
increasingly wish to be associated with positive environmental practices. Some of the
attempts in this regard include waste reduction, energy efciency, recycling and the
use of public transport and local suppliers. Some events trigger private and public
investment in urban transformation and renewal to include improved appearance
through streetscape beautication, rehabilitation or the creation of green spaces
(Mules & Dwyer, 2005). For example, the Americas Cup in Auckland in 2000 and
2003 has transformed the Auckland waterfront and left a legacy of an upmarket
restaurant precinct (Allen et al., 2011).
Case study: Olympic cities making key place

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REFERENCES
i]]"/i]7]>],EVi]Festival & special event managementxi`

]+\7iE-
iVi`vv] * E *i>Vi] * /i V} v ii - *>}i E
i `] The
Routledge handbook of events xqnxL}`\,i`}i
i`}i]{i}}iiiiiVi-*>}iE
i `]The Routledge hand-
book of events qnnLi] \/>E>V
] n /i >i v i 886 ">` -ì 7ii` `] Olympic
tourism qx"v`]1\ iii>
-ii>>}ii 257
] E >}] - x ii} > "V i\ VV> >> v i

i}"ViiInternational Journal of Tourism Research, 17{]{q{
] ] ii] -] }] E ->] , x iV>i >` i Vi> v ii i}>Vi
Annals of Leisure Research, 18{]xqx
]]-]E>i],i}iV\iV>i>>v
ii] >Vi >>Vi] ii >v>V >` iV> i > i ` "V
Tourism Management, 55]q
>ii]E*>i]x/iì`vii*>iE
>ii
`]Routledge handbook of sport event management qL}`\,i`}i
] { i` iVV >V\ >i>i >> v i LV L` v >

i>}iv>ViJournal of Sport Management, 18]{qxn
i>]E
i>]-nnOptimal experience: Psychological studies of ow
in consciousness
>L`}i\
>L`}i1i*i
>]-n/>\>>>Annals of Tourism Research, 8]nq
i]]i],]] Ei]/v>iv>i}>}Li>`>}
Li>Vvii>`ViEvent Management, 6]xqn
]
]]] i>]E*V>`]i>}iivii>i`
>Vi\ `}} i >V>ìVq>Vi `ì ì>`} Li> Sport Marketing Quar-
terly, 18]qn
i]xEvent management and event tourismì` i9\
}>
V>

>
i] Event studies: Theory, research and policy for planned events "v`\ i
ii>
i]n i\iw]i]>ìi>VTourism Management, 29]{q{n
i] E ì] / /i ii V>ii >iV\ ` v }ii
>>i`>ViiScandinavian Journal of Hospitality and Tourism, 10{]{nq{
ii] ii>}}LVi>`ìiiiSport Management Review,
4]q
ii] E i] x -i ii] V> ì >` Sport in Society, 8]
{qn
}>]
i>>>>iivìii\>>vii
>ì}>i>VvCurrent Issues in Tourism, 2]nq
V]/E}>]x-]>`>iVEuropean Sport Management Quarterly,
5]{qx
>]- nThe social psychology of leisure and recreationLi]\7>

>*Li
>}]Ei]Economic evaluation of special events: A practitioners guide>]6V
>\
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Journal of Sport & Tourism, 17{]q
iV]
]*>i]*E7>i],{Service marketingì`-ì\*i>>>
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i]/Ei]x*LViVvii\/iivVqLiiw>>
Sport in Society, 8]nqxx
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>`>vi\/iV>ivi"V>iSport Management Review, 17]xqn
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>`v i}vin"VJournal of Urban Affairs, 30]xq
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->] i >i i Vi v i "V }`\ /i ` >` i 9
L`vi>iJournal of Urban Affairs, 24x]xnqx
/i"V-ì
iiTorches and torch relays of The Olympic Summer Games from Berlin
1936 to Rio 2016>>i]-i>`\i>>"V
ii
/i]6nCelebration: Studies in festivity and ritual7>}]
\->*i
1-A UK Strategy: Major events A blueprint for success`\1-
CHAPTER 18
Sport tourism
Graham Brown and Insun Sunny Lee
Chapter objectives
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Key Terms: Sport Tourists; Sport Tourism History; Sport Tourism Resources; Sport
Tourism Planning; Byron Bay.
INTRODUCTION
Analyses of the relationship between sport and tourism can be traced to the 1980s and
1990s (Gibson, 1998; Glyptus; 1982; Standeven & De Knop, 1999) and scholarly
interest in sport tourism has grown signicantly since this time. Notable landmarks have
included an international conference on the relationship between sport and tourism,
organised by the World Tourism Organisation and the International Olympic Commit-
tee, held in Barcelona in 2001, and the introduction by Routledge in 2006 of the Journal
of Sport and Tourism. However, a lack of coordination between sport and tourism organi-
sations has been noted (Brown, Jago, Chalip, Ali & Mules, 2011; Chalip & McGuirty,
2004; Deery & Jago, 2005) and Weed (2003) found there has been a lack of integration
at the policy level in the UK. The publication of a number of key textbooks has been
timely in support of the growth that has occurred in degree programmes that feature
sport tourism and sport event courses. This chapter draws, particularly, on two texts
written by Hinch and Higham (Higham & Hinch, 2009; Hinch & Higham, 2011) that
offer comprehensive coverage of sport tourism development in the context of processes
associated with globalisation, mobility and identity, and the book by Weed and Bull that
is structured around the themes of participants, policy and providers of sport tourism
260 Graham Brown and Insun Sunny Lee
(Weed & Bull, 2004). In addition, journal articles are used to report recent research and
conceptualisations of the eld. This chapter discusses the motivations and behaviour of
people who gain sport experiences away from their home environment. It also regards
sport tourism as an agent of socioeconomic development, which can create a wide range
of impacts on the communities that host sport tourists.
Some people visit destinations that offer attractive settings to participate in informal
sport activities such as hiking, swimming or surng. They may be motivated by a desire
to become t, and improvements in health following an increase in levels of physical
activity are well documented (Derom, Van Wynsberghe & Scheerder, 2015; Funk,
Jordan, Ridinger & Kaplanidou, 2011: World Health Organization, 2015). The resources
that make these outcomes possible may drive repeat visitation and encourage people to
join a sport club at the destination. This makes it possible to interact with like-minded
people and to become part of a sport subculture (Green & Chalip, 1998). The related
activity afliation and socialisation can also affect how sport tourists see themselves;
their self-identity. This is a product of their perceptions about what it means to be
someone who participates in a particular sport and the social norms associated with this
participation. A desire to gain additional benets may encourage people to travel to new
destinations; to places that are considered to offer more attractive settings or where addi-
tional resources offer new experiences and the opportunity to test advanced skill levels.
Alternatively, enduring involvement with a sport that started as part of a tourist experi-
ence may transfer to the home environment and become a permanent part of a persons
lifestyle. In this case, the resources that stimulated participation may have been at a
tourism destination but the resources that make it possible to pursue regular participa-
tion need to be located close to home. This is one example of the complex relationship
that exists between forces operating in the home environment and factors that inuence
the places selected to participate in sport-related activities. Resources that are found in
different places can both stimulate and respond to sport tourism.
The tourism industry provides a wide range of services to meet the needs of informal
sport participants. Resorts promote their sport facilities and tour operators that specialise
in adventure tourism try to attract the relevant segment of the sport tourist market.
These operators may be small businesses in which someone who is passionate about a
particular sport may act as the owner/operator/tour guide. This person will communicate
his or her passion to sport tourists who may spend days, weeks or even longer taking part
in, often, extreme activities in dramatic settings. The emergence of extreme sport can be
seen as a popular move away from the rules and regulations of organised sport
(Thomson, 2000). However, growth in the popularity of sports such as snowboarding,
accompanied by increased media interest and the development of industry suppliers,
such as clothing and equipment manufacturers, have seen them evolve from being
alternative to mainstream sports. This illustrates the dynamic nature of sport develop-
ment and the way it is constantly evolving.
Part of the appeal of steep slopes and fast-owing rivers that challenge mountaineers
and kayaking enthusiasts is the contrast that exists between these environments and the
densely populated urban areas where most people spend their daily lives. This contrast
has been promoted very effectively by places such as Queenstown, New Zealand and
Whistler, Canada, which have established reputations as outdoor adventure playgrounds.
Their reputations are founded on natural resources; the beautiful mountain scenery and
Sport tourism 261
the climate that enables a range of outdoor pursuits in different seasons. Destinations
supplement natural resources with indoor attractions and services that meet the needs of
different types of sport tourist. Collaborative promotional activities by different organi-
sations are designed to achieve a consistent market position for the destination. None of
this occurs by chance and an informed and sophisticated approach to destination plan-
ning is required. Any development must also be measured against the attitudes of local
residents regarding their social, economic and environmental objectives and the long-
term sustainability of their community. Sport tourism can be very successful in small
communities but it is in the large cities where most organised forms of sport tourism are
found. Cities are the setting for behaviour that ranges from the weekly migrations of
families across urban areas to support children participating in team sports to the less
frequent gatherings of people with a longer tenure as sport participants who compete in
Masters Games.
Participants in competitive sport adhere to rules, and it is the consistent approach to
the way sport is played that has made it possible for challenges to occur between indi-
viduals and between teams from around the world. Sport tourists travel to local,
regional, national and international sport events to participate as competitors, sport
organisers and in many other ofcial and professional capacities. Many more people
travel to watch professional sport such as football (NFL), baseball and basketball in the
United States, ice hockey in Canada and football (soccer), which is followed passionately
throughout much of the world. Many other people travel less frequently as spectators to
mega events, such as the Olympic Games and the FIFA World Cup, which are held
every four years. The mix of services that constitute a sport tourism experience can be
divided into the core product, associated with the game and its outcomes, and ancillary
products, such as the services provided in a stadium (Yoshida & James, 2010). A more
detailed discussion of sport events is provided specically in Chapter 17 but it is
important to recognise, in the context of sport tourism, that there is considerable com-
petition between cities to host mega events. The cities shortlisted to host the 2012
Olympic Games included some of the most famous capitals in the world; cities that
regularly compete with one another to attract many forms of investment. London was
named as the successful bidding city, beating Madrid, Moscow, New York and Paris.
Cities wish to host mega events for a wide range of reasons, including gaining eco-
nomic and tourism benets (De Groote, 2005) and stimulating improvements to the
local infrastructure (Smith, 2012). However, it is difcult to determine costs and bene-
ts that are directly attributable to sport tourism when it forms part of integrated devel-
opment projects. Such projects seek to attract a wide range of investment and to make
the host city more attractive to both tourists and local residents. They may include sport
venues as well as residential, retail and entertainment precincts. They need to have good
transportation links and be well connected, ideally with pedestrian access, to services
that provide food, entertainment and accommodation. The success of these develop-
ments depends on their ability to improve the atmosphere and vitality of the cities. In
recent years, greater emphasis has been placed on design to transform physical settings
and make experiences more memorable. For instance, a visible connection between a
sport event and the host city can be established by creating a distinctive look in the
form of graphic representations at sport venues, tourist attractions and other key sites
across the city. It is difcult to measure how people react to environmental atmospherics,
even if they seem to be more engaged and excited. If the changes were designed to
enhance the lifestyle of local residents they can be regarded as an outcome of a social
leveraging strategy (Chalip, 2006). Similarly, the benets of improved access to sport
facilities and ability to watch high quality sport competitions close to home may be
highly valued by host communities.
This discussion demonstrates that sport-related travel extends across all spatial scales,
levels of competition and competitive-participatory, serious-casual and active-passive
dimensions of engagement (Hinch & Higham, 2011, p. 3). A number of conceptual
frameworks have attempted to classify different components of the diverse sport tourism
market. The classication proposed by Standeven and De Knop (1999) focused on the
activities undertaken by sport tourists and contrasted single sport activity holidays, such
as skiing, with multiple sport activity holidays where people participate in a broad range
of more casual activities (Table 18.1).
A conceptualisation based on motivations was proposed by Gammon and Robinson
(1997), who referred to sport tourism when sport was the primary motivation to travel,
with tourism activities of secondary importance. Tourism sport was used when sport
was an incidental part of the desired tourism experience.
A weakness of Gammon and Robinsons (1997) typology is the difculty in determin-
ing the primacy of sport or tourism elements. This has led to the proposition that sport
tourism should be regarded as a synergistic phenomenon that is more than the simple
combination of sport and tourism (Weed, 2005, p. 233) and that it is a phenomenon
arising from the unique interaction of activity, people and place (Weed & Bull, 2004,
TABLE 18.1 ->ViV>wV>
Classication Examples
Sport activity holidays: Skiing, cycling, trekking

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Sport tourism 263
TABLE 18.2 /i>`>i>v
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p. 37). The nature of the interaction reects its societal context and varies between
places and across time. By reviewing the history of sport tourism, it is possible to identify
factors that have been inuential in its development.
THE DEVELOPMENT OF SPORT TOURISM
In the rst chapter of Sport Tourism Development (Hinch & Higham, 2011), the authors
identify four contemporary trends, attributed to different authors:
1 the expanding demographic prole of participants in sport (Glyptis, 1989);

2 heightened interest in health and tness in Western societies since the 1970s
(Collins, 1991);
3 increasing demand for active engagement in recreational pursuits while on holiday
since the 1980s (Priestley, 1995); and
4 growing interest in the prominent roles played by sport and sport events in urban
renewal and urban imagery and the potential to leverage tourism opportunities asso-
ciated with sport events (Getz, 1998).
The authors also noted that the sportication of society (Standeven & De Knop, 1999)
has been facilitated by technological advances (Hinch & Higham, 2011, p. 5). Signi-
cantly, it was technological advances during the Industrial Revolution in Britain that
created the conditions for the development of sport tourism as we know it today.
However, it is important to recognise that forms of sport tourism have existed through-
out history and travelling to watch athletic competition was an important part of Greek
life. The games at Olympia, which date from 776 BC, attracted as many as 40,000 people
from all parts of the country. During Roman times, gladiatorial combats and chariot
races were the most important spectator events and an ideological orientation towards
health and tness was spread throughout the empire. The safe movement of people was
made possible by the development of roads and the protection afforded by the Roman
army. Following the fall of Rome, there was little further development in transportation
until modest improvements with coach travel were made in the sixteenth century. It was
not until the nineteenth century, with the development of the railways, that a large pro-
portion of the population was able to travel away from home for the rst time. Industri-
alisation, work in factories and urbanisation had profound implications for sport tourism.
Structured regimes provided free time when the emerging working class could parti-
cipate in team sport. The development of local teams created inter-urban rivalries, which
were expressed at games held at stadiums that attracted thousands of paying spectators
on Saturday afternoons. At the same time, the growing rail network was connecting
cities across the country at relatively cheap prices. Recognition of the structural relation-
ship between sport and tourism gave rise to railway specials that offered services to
football games and other sporting events. Sport was expanding spatial horizons and
many fans in Britain visited cities, including London, for the rst time.
The ability to transport horses by rail gave rise to a national racing calendar and the
railways facilitated the development of the county cricket competition in England,
which started in 1873. The impact of the railways was felt in many ways but it was not
the only form of transport that inuenced the development of sport tourism at this time.
Passenger services by steam ship made it possible for sport teams to organise overseas
tours, enabling the diffusion of sport culture around the world and the development of
international competition. The English cricket team played in Australia for the rst time
in 18611862 and, by the end of the century, English teams were touring all parts of the
empire. Participant sports such as skiing and mountaineering also became established in
the second half of the nineteenth century with the formation of an Alpine Club and a
number of rst ascents of the highest European Alpine peaks. By the rst decade of the
twentieth century, Switzerland had become a winter playground for the afuent upper
and middle classes of Britain, many of whom had been educated at Oxford or Cam-
bridge universities. At this time, the privileged elite travelled overseas as sport tourists
and, when at home, were often members of sport clubs, linked to universities or other
social organisations.
The early part of the twentieth century saw incremental change and a continuation of
trends that had started in the previous century. Sports such as skiing remained largely a
preserve of the rich, and social class had restricted participation in some other sports
such as rowing, equestrian activities and polo. The second half of the century saw major
changes that allowed large sections of society to embrace sport. Increases in wealth and
leisure time and improvements in transportation were particularly inuential. Holiday
entitlement was enshrined in the Holidays with Pay Act 1938, making it possible for
many families to take a holiday away from home. Towards the end of the century, taking
four or ve weeks leave from work had become an accepted part of the lifestyle for
many, and households were starting to spend more on leisure than on food, housing or
Sport tourism 265
transport (OPCS, 1999; Weed & Bull, 2004). It became quite common for families to
include a traditional beach holiday and a sport holiday into their annual calendar of
leisure activities. Increasingly, changes in social attitudes meant that many decisions
reected a desire to be t and healthy. Those with the strongest desire and greatest
ability were often the elderly, particularly those who were able to take early retirement.
Increasing levels of car ownership transformed travel and leisure behaviour in the
post-war period. During the 1950s, two-thirds of British families used trains to take holi-
days, mainly at beach resorts, but by 1970 this gure was only one in seven. This change
is directly attributable to the growth in car ownership that occurred during this period.
In 1949, only 14 out of every 1,000 households had access to a car, and this increased to
60% just 20 years later.
The next major impact on the development of sport tourism was caused by the
growth of aircraft travel. Landmarks occurred in 1957 when, for the rst time, more
passengers crossed the Atlantic by plane rather than by ship, and in 1958 with the intro-
duction of the Boeing 707 jet. This marked the start of the jet age and the emergence of
the jet set. Popular culture, associated with the travel behaviour of lm stars, pop musi-
cians and football players, increased the demand for international travel. This led to the
introduction of cheap charter ights. The rst package tour by air was offered by
Horizon Holiday from the UK to Corsica in 1950, and by 1970 there were two million
inclusive tours by charter ight from the UK. Package holidays to warm climates were
particularly popular with British and German holidaymakers, and many of the tourism
resorts that were developed in Mediterranean countries offered sport activities, particu-
larly golf, tennis and water sports. Sport facilities were also a key part of the appeal of
Club Mditerrane resorts, the rst of which was opened in Majorca, Spain, in 1950.
Air transport reduced the time needed for people to reach distant destinations, and
changes in technology have reduced the time it takes for information and images to be
sent across the globe. Television became particularly inuential as levels of ownership
grew in the post-war period. There were ve million television sets in just three coun-
tries (UK, US, USSR) in 1950 and this increased to 250 million sets in 130 countries by
1970. Continued growth and the development of special sport channels meant that sport
could be watched around the clock. Televised sport has become part of popular culture,
and major sport events are presented as forms of spectacular entertainment. Tennis at
Wimbledon, the Tour de France, Formula One Grand Prix races, the Football World
Cup and the Olympic Games are viewed in homes around the world and generate pas-
sionate support for national competitors. Televised events are an expression of the way
processes associated with globalisation and commercialisation have shaped sport tourism
in the contemporary world. It comes as little surprise when the television news shows an
image of a child who survived a bomb blast in the Middle East wearing a Dallas
Cowboys shirt. This image brings us into the 21st century.
SPORT TOURISM RESOURCES
Landscapes of sport are considered to be part of the cultural landscape with modica-
tions creating sportscapes (Bale, 1994). The resources that support sport tourism can
be analysed in terms of a number of continuums:
s BIOPHYSICALnTECHNOLOGICAL
s NATURALnANTHROPOGENIC
s OUTDOORnINDOOR
s SINGLEUSEnMULTIPLEUSE
s TEMPORARYSETTINGnPERMANENTFACILITY
s SMALLSCALEnLARGESCALE
s SINGLELOCATIONnDISPERSEDSPATIALPATTERN
s CLOSETOMARKETnDISTANTFROMMARKET
These categories help analyse the sport tourismenvironment nexus (Hinch & Higham,
2011) and can be used to understand the types of environmental setting that support
different types of activity and the environmental impacts created by sport tourism.
Hinch and Higham (2011, p. 9) noted that
quite different issues are associated with natural resources and built facilities in
sport tourism. Outdoor sports tend to be dependent on specic types of land-
scape whereas other types of sport are more transportable and the shift towards
articial, enclosed and controlled sports environments, is one of the most telling
and obvious trends of the last decade.
There is considerable variation in the physical capacity of environments to withstand

pressures imposed by sport tourists and, increasingly, site management is attempting to
achieve sustainable outcomes. In recent years, a change in social attitudes has encour-
aged the adoption of proactive environmental stewardship and habitat creation (Hinch
& Higham, 2011, p. 142). This is evident in political pronouncements in support of bids
to host sport events when assurances are given that the environmental quality of sites
will be improved as part of any necessary development. This can be readily demon-
strated when hazardous, polluted sites are remediated and made suitable for public use,
but caution has been expressed about the green credentials of some sport settings. For
instance, the highly intensive management of golf courses produces environments that
are low in biodiversity (Priestley, 1995).
Some resources that are needed to play sport are readily available, and a casual game
of football can be played almost anywhere. This nds expression in places as varied as
patches of grass in England, dusty squares in North Africa and beaches in Brazil. In each
case, children are happy to chase a ball and celebrate when it is kicked between bins,
trees or piles of clothes that serve as goalposts. However, a much higher level of resource
provision is required to successfully stage a football match at Wembley Stadium with
success measured in different ways by the wide range of stakeholders. Place dependency
is a useful concept in this context. It concerns the functional qualities of a place and its
ability to deliver desired outcomes (Stokols & Schumacker, 1981). It can be used to
identify the type of resources that must be available to meet the needs of the people
who are seeking different types of outcomes. For example, the quality of the playing
surface is important for the players, the view from seating areas is important for spec-
tators and the level of technical support is important for the media.
Some resources are only found at specic locations; for instance, there are relatively
few places where one can ski. The perceived quality of ski resorts is inuenced by factors
Sport tourism 267
associated with the natural setting and weather conditions, the length and degree of dif-
culty of ski runs and the range of facilities and services that are offered both on the
slopes and in resort villages. The sport heritage and local culture of an area are also
important. Each year, lists are produced that identify top-ranked ski and snowboard
resorts. The criteria are indicative of the importance placed on access to different types
of resources. Articial slopes linked to shopping malls, as exist in Dubai, do not feature
in these lists and would be ridiculed by serious skiers. However, the ability to create
snow in the desert demonstrates the opportunity to use sport as a supplementary tourism
attraction and how it can become part of destination planning almost anywhere.
Sport tourists make decisions about where they would like to engage in sport and may
be prepared to incur large costs to travel to destinations that offer desired resources,
meaningful experiences and authentic place associations. An extensive period of plan-
ning may be seen as an enjoyable part of the sport tourism experience and Weed and
Bull (2004) suggest that where sport is pursued at a competitive or elite level, higher
quality resources may be preferred, even required (p. 46). The concept of involvement
has been used in research to help understand sport behaviour (Beaton, Funk, Rindinger
& Jordan, 2011; Havitz & Dimanche, 1997) and is instructive in this context. For
instance, a person who is highly involved in golf is likely to be knowledgeable about the
sport, prepared to spend a relatively large part of disposable income on equipment and
fees and regularly devote a large amount of leisure time to playing at local courses. Mem-
bership of a golf club and participation in the activities it organises will have broader
social and lifestyle implications. The club may also organise international tours so
members can play at some of the most prestigious courses around the world. Courses
may be regarded as sacred places of golf due to their association with famous golfers and
events that feature as historically signicant landmarks in the development of the sport.
Travelling to play at such courses may be the ultimate expression of a persons involve-
ment as a golfer and a sport tourist.
PLANNING SPORT TOURISM
Planning is a future oriented process that involves an intervention in the development

process to foster particular changes. Sport tourism can take the form of an intervention
or it could be the objective of process. A rational approach to planning involves estab-
lishing measurable goals, conducting feasibility studies and regular evaluations to inform
ongoing decision making. A logistical approach requires scheduling tasks, setting time-
lines, allocating resources and applying control systems. A political approach includes
engagement with stakeholders, emphasis on conict resolution and progressing incre-
mentally with constituent support. The relative importance of measures associated with
each approach will vary from place to place and according to the type of interventions
that are being made. This requires appreciation of the way sport tourism is integrated in
the local environment and host community.
The process of identifying opportunities for sport tourism development should start
with resource analysis. The extent to which the natural environment serves as the
foundation of sport activities and whether it offers a competitive advantage must be
assessed. This will likely determine whether additional resources are required and if
new products need to be developed. This may involve the construction of new facili-
ties and the creation of permanent or temporary structures. Critical decisions about
the scale, cost and market demand for new facilities must be made. Accessibility issues
may be particularly important and, from a strategic perspective, the role of sport
tourism in relation to the existing socioeconomic structure of the community must be
considered. A diversied strategy involves developing a wide range of sport tourism
activities to attract different sport tourist markets. Alternatively, a specialisation
strategy seeks to clearly link a destination with a particular sport, as illustrated in the
case study of Byron Bay.
A strategy towards diversication or specialisation will dictate the desired market
position and will be reected in how the destination is promoted. Specialisation requires
targeting a clearly dened segment of the sport tourist market and attracting the interest
of specic media. This includes sport journalists who represent magazines and television
production companies that specialise in the relevant sport. Alternatively, a diversied
strategy requires the development of promotional campaigns that appeal to a wide range
of sport tourists. This offers more exibility and opportunities to focus on different
markets and different types of media at different times. The success of both strategies
depends on being able to attract resources that will enhance promotional activities. In
this context, destination marketing organisations (DMOs) have collaborated with media
organisations to produce television commercials that promote the destination as part of
event coverage (Brown, 2001). By playing an active role, the DMO is able to ensure that
the promotions reect the desired destination positioning while the costs of production
and airtime are borne by the media organisation. Similar benets can be gained by
working with sport tourism sponsors, which are able to enhance campaign benets
through association with a destination brand (Brown, 2007).
Case study: surng at Byron Bay

Byron Bay is a beachside town located in the north-eastern corner of New South Wales,
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Sport tourism 269
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make the town a specialised sport tourism destination. Sport tourists were attracted by
the natural resources and an environment that supported the development of a distinc-
tive culture. This was encouraged by famous surfers who moved to the town, by surng
and cultural images that were readily presented in the local, national and international
media and by support services that have developed in the town. Although the process
has not been directly controlled, the case study demonstrates the benets that can be
gained by specialised, integrated sport tourism development.
SUMMARY
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DISCUSSION QUESTIONS

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REFERENCES
>i]{Landscapes of modern sport.iVii\iVii1i*i

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iV>>>Sport Management Review, 14]q{
Sport tourism 271
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International Journal of Tourism Research]]xq
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Journal of Sport & Tourism, 18{]xqn
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>] ] ] - E i] / i >` ì> >>}ii 9
7>} E *> `] Destination marketing and management: Theories and applications. Wall-
}v`]"v`\

>]/>`V>ii>}iviiJournal of Sport & Tourism, 11]q
>]EV]{ `}iiiì>Journal of Sport, 9]

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i `] Progress in tourism, recreation and hospitality management n{q{
`\ i>i*i
ii]E>}]x/i>>}iivSport in Society, 8]nqn
ii]*x VV>`>iVvi"V>iTourism Review, 60]qn
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ìiiv>ViVi>`viiiViiLeisure Sciences, 33]xqn
>]-E,L]/->`\VVi>v>iJournal of Sport Tourism,
4]nq{
i]n/i`]i>`>i}iiiSport Marketing Quarterly, 7]nq
L]n-\VV>>>vii>VSport Management Review, 1]{xq
]-nSport and tourism in Western Europe`\ />i `V>/
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25]xq
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}>] E V] / Sport and tourism: Globalization, mobility and identity. "v`\
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V]/E}>]Sport tourism developmentì` \
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Tourism and spatial transformations: Implications for policy and planning xq 7>}-
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-]Events and urban regenerationL}`\,i`}i
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`]Cognition, social behaviour and the environment{{q{{n`>i] \ L>
/]]>]"]>]E/>]Olympic Britain: Social and economic change
since the 1908 and 1948 London Games`\iv
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CHAPTER 19
The continuing evolution of

sport management
Trish Bradbury and Ian OBoyle
Chapter objectives
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Key Terms: Sport Business Management; Trends and Issues in Sport Management; Over-
arching Themes
INTRODUCTION
Sport management is a multifaceted eld incorporating many of the business roles found
in the private sector. Indeed, sport management is often referred to as sport business
management (Beech & Chadwick, 2004; Leberman, Collins & Trenberth, 2012; Tren-
berth & Hassan, 2012) as the management of sport is now more business-like than it has
ever been. This description has gained popularity as the growth, commercialisation and
professionalisation of the sport industry have driven changes in the ways sport manage-
ment is operationalised. Sport business management constructs encompass, for example,
core business concepts such as PLOC, the management processes of planning, leading,
organising and controlling. Similarly in sport, human resources or people management is
a key focus because, ultimately, this is what sport is about people! Katzs managerial
skills (human, technical and conceptual) can also been seen as important in sport busi-
ness management, as can concepts of accountability, performance measurement and
management, and the need to comply with legislation and government policy. In all
these ways, the management of sport and the management of business can be seen to be
rather similar in approach.
Understanding Sport Management: International Perspectives provides an array of
concepts, some of which relate directly to sport, and others to business more generally.
Specically, these business concepts include organisational structure and theory

(Chapter 3), controlling and managing organisational performance in high performing
organisations (Chapter 7), strategic management (Chapter 8), governance (Chapter 10),
leadership (Chapter 11), sponsorship and marketing respectively (Chapters 12 and 13),
economics (Chapter 14), communications and social media (Chapter 15) and legal
aspects (Chapter 16). The remaining chapters comprise more sport-specic content,
such as sport in society (Chapter 2), professional sport (Chapter 4), the global sport
environment (Chapter 5), creating high performing sport organisations (Chapter 6),
managing grassroots sport (Chapter 9), sport event management (Chapter 17) and nally
sport tourism (Chapter 18). It is important that readers of this book, especially students,
gain an understanding of all these different elements as they reect required competen-
cies sport managers of the future will require.
The purpose of this concluding chapter is to illustrate the interrelationships of each of
these topics and, in effect, show how they operate and interact in the sport management
sphere. This chapter will also bring to light the trends and challenges in sport manage-
ment that, once again, future sport managers must have the capability, knowledge and
ingenuity to contend with.
CHAPTER OVERARCHING THEMES AND UNIFYING

CONCEPTS
Each of the chapters in this book presents essential aspects of the management of sport.
However, the concepts introduced in each chapter are not isolated from one another.
You would have seen through reading these chapters that many of the concepts interact
and overlap and these relationships and unifying connections will now be discussed.
Chapter 1 set the scene for this academically research-based book. The chapter
emphasised that the sport management eld is now considered a legitimate professional
and commercial industry and, as noted above, one that has adopted traditional business
and management practices. The sport management environment was discussed, encom-
passing such content as economic, social, technological and geopolitical perspectives,
legal, business and nancial prociencies, and sport governance and the culture of cor-
ruption and lack of integrity. It then introduced chapter subject matter and issues that
were subsequently discussed in greater detail in the later chapters.
Chapter 2 provided an understanding of how sport is integrated into society, and is
deemed by governmental and other organisations to provide positive social outcomes.
Today, many people consider sport from the elite high performance level (see Chapter
6) or the professional level (see Chapters 4 and 5). It must be remembered, though, that
sport is played throughout society (also noted in Chapters 5 and 9) by all ages in back
gardens, open elds, schools, clubs and at events such as the Youth Olympic Games and
the World Masters Games (WMG). This chapter also touched on topics addressed in
greater detail in later chapters such as the professionalisation of sport (Chapter 4),
globalisation and internationalisation in sport (Chapter 5), and sport and integrity
(Chapter 16).
Chapter 3 introduced non-prot sport organisations, commonly known as national
sport governing bodies (NSGBs) or national sport organisations (NSOs), rst talked
/iV}iv>>}ii 275
about in Chapter 1. Their distinct features, domains and levels were described, as were
their responsibilities, functions and hierarchical units. Specic domains were also
acknowledged in other chapters: egalitarian sport, or sport for all, in Chapter 2, profes-
sional sport in Chapter 4, elite sport in Chapter 6, and entertainment sport, discussed in
Chapter 5. The issue of NSGB performance and governance and board capability were
featured in this chapter, and also discussed in Chapters 7 and Chapter 10, respectively.
Leadership, the emphasis of Chapter 11, was also briey touched on. The nal concept
discussed was corporate social responsibility (CSR).
Chapter 4, dedicated to professional sport (also described in Chapter 5), dened
professional sport and described both internal sport stakeholders (athletes, clubs, leagues
and governing bodies) and external sport stakeholders (spectators, communities, corpo-
rations and media), touching on the unique interests of these two groups. Financial data
relating to professional athletes salaries and the protability of leagues and teams were
presented here. These issues were further discussed in Chapter 14, which focused on the
economic aspects of these ventures. Governance (discussed at length in Chapter 10) was
also referred to briey.
Chapter 5 focused on the global sport environment and introduced the reader to
internationalisation and the global landscape of sport leagues, sport events and social
media in sport. Chapter 15 was totally devoted to the adoption and use of social media
in sport and sport management and Chapter 5 adds to that discussion. Professional sport
league dialogue included in this chapter built upon the information presented in
Chapter 4.
Chapter 6 described the management of high performance (HP) sport, discussing the
three core principles required to guide HP managers decisions and actions: the elite
athlete development process, managing the HP sport environment and HP stakeholders,
and HP strategic management (discussed at length in Chapter 8). The importance of
policy formulation and strategy implementation was also stressed.
Chapter 7 emphasised organisational performance, which was viewed from the per-
spective of the Viable System Model (VSM) tool diagnosing organisational effectiveness
and understanding structural factors inuencing an organisations performance. A thor-
ough overview of the VSM was presented with graphics and case studies used to increase
the readers understanding. Performance management was also touched on in Chapter 8.
Chapter 8 outlined strategic management and the strategic planning process, cover-
ing goal setting, strategic objective setting and the other elements integral to strategic
planning. It stressed that strategic planning is the prime responsibility of a governing
board (further discussed in Chapter 10). The strategic planning process provides a
useful opportunity for sport organisations to engage with their stakeholders. It can also
have a number of associated benets such as building trust and gaining insights into
stakeholders concerns, and, of course, the production of a robust and inclusive strategic
plan itself.
People management and the critical role of volunteers are key concerns for sport man-
agers and were the focus of Chapter 9. This chapter dened a sport volunteer, the types
and roles of volunteers and the management of volunteers, including planning, recruit-
ment, retention, motivation and performance and reward systems. Application of human
resource management (HRM) processes was considered benecial for managing a volun-
teer programme.
Chapter 10 dealt with sport governance. This topic has been of the focus of consider-
able media attention in recent times due to allegations of corruption and poor govern-
ance practices in many prominent international sporting bodies. Good governance is also
being recognised as a crucial element within the wider sport management industry by a
number of state/national agencies such as UK Sport, the Australian Sports Commission
(ASC) and Sport New Zealand (Sport NZ) that have all focused on this topic.
Leadership in sport management was the topic of Chapter 11. This chapter explained
the concept and contemporary theories of leadership as well as identifying the differ-
ences between a leader and a manager, particularly in relation to sport managers. A
summary of the many denitions of leadership, an essential function of any manager, can
simply be described as the use of power (a selection of ve sources) and/or inuence to
achieve desired organisational outcomes. Leaders (agents of change) may adopt the
follower-focused theories of transformational, authentic or servant leadership to improve
the management of sport in their organisations. Leadership was also mentioned in Chap-
ters 6 and 10.
The big business of sport sponsorship was the subject of Chapter 12, which explored
sponsorship from the perspectives of both the sponsor and sponsee (also termed prop-
erty), and sponsorship measurement and evaluation. Ambush marketing, also presented
in Chapter 13, the unauthorised association with a product or service like a sport event,
was discussed, as was a case example of sponsorship in action via the new sport of
eSport. A key take-home from this chapter is that to be successful in sport sponsorship,
the sponsee must understand why companies choose to sponsor and what the properties
have to offer a potential sponsor, ensuring compatible sponsorship goals.
Chapter 13 discussed sport marketing, providing an overview and highlighting the
importance of market research, and understanding both the consumer and the sport
business industry when developing a sport marketing approach. Also included was the
application of the sport marketing process and the four Cs consumer, company, com-
petitor and climate and four Ps product, price, place and promotion of any market-
ing plan. A conversation on branding concluded the chapter, which was mentioned in
Chapter 15.
Chapter 14 focused on the economics of sport and explained why economics is a
perfect gauge for analysing sport. The denitions of (sport) output and the producer of
those outputs (the rm) were presented, and differences in their application to sport and
business outlined. The importance of competitive balance, which provides uncertainty
of outcome on the eld of play (Hoye, Smith, Nicholson, Stewart & Westerbeek, 2015),
and parity, equality in on-eld performances, were also addressed in Chapter 4.
Communications and social media, the fastest-growing areas in sport marketing, were
discussed in Chapter 15. A discussion of the signicance of social media platforms and
the alternatives available to sport personnel was followed by an outline of the marketing
communication activities of branding and developing consumer brand relationships. The
challenges arising from social media usage were also presented. Media in general were
briey mentioned in Chapters 2 and 4 and branding touched on in Chapters 12 and 13.
Chapter 16 concentrated on sport law, exploring the increasing intersection of sport
and the law and providing sport based case examples. A catalyst for this growth is the
presence of money and the reality that sport is becoming more business-like, professional
and commercial, as discussed in Chapters 1, 4 and 5. Setting the scene for this chapter, a
/iV}iv>>}ii 277
discussion of the denition of sport ensued (Chapter 2), followed by the organisational
structure of sport (Chapters 3, 4 and 10) discussing major players in international sport
(Chapter 5). Anti-doping legislation, rights and equality, criminal law, contract and tort
law and intellectual property and ambush marketing (Chapter 12) were all considered.
Chapter 17 covered sport event management, classifying sport events from com-
munity to international categories (Chapter 5) and discussing contexts, motivations, con-
sumer experiences and economic issues (Chapter 14). The social and environmental
impact of sport events (Chapter 2) were also described in this chapter. The planning and
delivery of different sized sport events was also examined, with events classied as mega
(see Chapters 2, 4, 5, 6 and 18), hallmark, major or local community. The chapter con-
cluded that proactive planning was necessary in sporting events to ensure a positive
consumer event experience and a lasting legacy.
The penultimate chapter, Chapter 18, was dedicated to sport tourism. The chapter
began with a brief developmental history and description of sport tourism. This was fol-
lowed by a discussion of the benecial inuences of transportation and technology on
sport tourism. Sportscapes, with some examples of the eight resources that support sport
tourism, were discussed. It was noted that resource analyses, including nances, facility
requirements, availability and accessibility, are required to identify sport tourism devel-
opmental opportunities.
WHERE TO FROM HERE? TRENDS AND CHALLENGES

IN SPORT MANAGEMENT
As noted throughout the chapters, sport and sport organisations are evolving, constantly
driven by dynamic changes in the external environment notably in the broader polit-
ical, environmental, technological, sociocultural, ecological, demographic, economic and
legal sectors. These vicissitudes (changes) affect the ways in which sport is managed.
Successful sport managers and employees should be aware of what is happening in both
the local and global environments so that they are able to proactively, not reactively,
respond.
So what are some of the trends and challenges faced by those working in the sport
industry? These trends and challenges are affecting the full range of sport endeavours
from grassroots community level organisations through to professional and commercial
sporting bodies. Lets consider some of them now.
Jeremy Jacobs, owner of the Boston Bruins ice hockey team and Delaware North, a
leading foodservice and retail management company at stadiums, arenas and ballparks
worldwide (see www.delawarenorth.com/about#sthash.4aS491Xj.dpuf ), assembled
futurists and experts to consider sport trends over the next 25 years in a report titled The
Future of Sports. He introduced the resulting report by saying:
Sports are timeless, yet with each generation, new technology and social
dynamics have changed and intensied how we experience sports. In the past
fty years, we have seen many radical changes broadcast television and cable,
credit cards, salary caps, player unions, integration, globalization of the fanbase,
shared revenue agreements, and $100 million player contracts . . . The changes
on the horizon will likely be even more disruptive . . . Change is coming fast.
But how these trends intersect, and what our industry will look like as a result,
is far from obvious.
(McHugh, 2015, p. 1)
This view is thought-provoking, even frightening, but at the same time electrifying.
Think of the opportunities available for sport and sport stakeholders consumers, fans,
owners, users, teams, athletes, leagues, franchises, sponsors, media and many other inter-
ested parties. The speed of this change supports the suggestion that sport managers must
recognise and prepare for the trends and challenges that the future will offer.
McHughs (2015) report addressed a range of evolving trends, which were categorised
as stadia, broadcasting, athletes, the third venue, sponsorship and advertising, teams
and leagues, eSports and fantasy sports, fans, extreme and adventure sports, payments
and ticketing, and fanbase economics. The great majority of these trends were, in one
way or another, also considered by the various authors in this book.
This American report is not the only attempt to forecast the future of sport. In Australa-
sia, two central government agencies, the ASC and Sport NZ, have also sought to discern
trends and future challenges in sport in the hope of devising appropriate strategic plans for
sustainable sport futures in their respective countries. This research also concluded that the
sport sector will face signicant challenges as a consequence of constant changes in external
environments. Peter Miskimmin, Sport NZ Chief Executive, avowed, We know the world
is changing and we must change with it (Sport New Zealand, 2016).
The ndings outlined above make an interesting read for those involved in sport.
Research suggests that further trends, issues and challenges will transpire, and have
already transpired, in aspects of the management of sport. These include problems in
governance and sport delivery, issues in grassroots and/or high performance sport,
increasing population diversity, sedentary living, the development of new sport forms
such as extreme or adventure sport, new participation methods, technology usage and
growth in sport consumerism and marketing. To this list, Hajkowicz, Cook, Wilhelm-
seder and Boughen (2013) further added the effect of population and income growth
throughout Asia, which they termed New wealth, new talent (p. 25), and the adoption
of corporate and business-like structures termed Tracksuits to business suits (p. 31).
This list is not exhaustive and will likely see many more issues or trends added, such as
integrity and ethical issues including match xing, corruption and drug use (e.g. the use
of performance enhancing drugs), and genetic testing and genetic engineering, which are
issues incorporated under the athlete (p. 16) in McHughs (2015) report.
Consideration will now be given to some of these issues and trends, as discussed or
alluded to in this book, including social media, technology, eSport and online gaming,
effects of internationalisation, new sports, adventure or extreme sports, limited resources
such as volunteers and nances, and governance roles. Note that the examples provided
are just that, and there is a wide range of other potential extensions or situations that
may also occur.
With the increase in use and spread of communication technology and social media
tools (explained in Chapter 15), the world is becoming a single neighbourhood. Sport
fans can consume their favourite sport in real time, and purchase the new and cool sport
merchandise of their favourite team or sport superstar at the tap of a smartphone button.
/iV}iv>>}ii 279
This fact, in itself, has major ramications for sport managers. They must ensure that
their communication methods are appropriate, so people worldwide can nd game
schedules and merchandise, and be able to communicate via chat sites with other like-
minded fans about the games, products or services of the particular sport organisation.
This technology enables eSport and online gaming, as discussed in Chapter 12. As
noted in that chapter, online sport and gaming are growing exponentially, with global
revenues expected to exceed US$1 billion by 2019. While there is currently debate in
the academic sport community as to whether eSport can yet be termed a sport, it no
doubt will be viewed as such in the very near future. As a future sport manager, you
may face declining participant numbers due to the availability of technology allowing
your consumers to play their sport online. This view is echoed by Miskimmin, who sug-
gests there is a global trend towards inactivity (Sport New Zealand, 2016) as increasing
numbers of people consume their sport online.
Chapter 5 discussed the expansion of the globalised sport environment and inter-
nationalisation. This may be positive for the sport consumer but not necessarily for those
directly involved in sport such as the athletes, for whom the picture may be less rosy.
Although athletes may see increased income, global sport for them could mean, for
example, increased travel requiring more time away from family, and greater interrup-
tion in their personal lives, as fans expect to be part of their daily lives through social
media and other forms of virtual reality.
Other trends discussed were the growth in the new forms of sport arising from
adaptations to traditional sports and the evolution of extreme sports, as discussed in
Chapter 2. Sport managers must be aware of upcoming changes and think creatively to
keep up with their competitors, other sports and even other forms of entertainment, in
adapting their sport to meet the needs of their sport community users. With the increase
in consumers leisure time, altering demographics, changes in disposable spending and
technology usage, sport managers have to be very aware of their competition, both
sporting and non-sporting, in order to continue to attract and retain users of their prod-
ucts and services.
Another trend, and a challenge to be faced, is the reduction in the number of sport
volunteers. This was discussed in Chapter 9. While many grassroots organisations and
NSOs are experiencing a drop-off in volunteer numbers, this is typically not the case for
mega events like the World Masters Games, which New Zealand is hosting April 2017.
The WMG, the largest multisport event worldwide when measured by athlete numbers,
is dedicated to the older athlete, as noted in Chapter 2. The average age of the pro-
jected 25,000 athletes is expected to be 42, although the youngest competitor can be 25
and the most mature into their 90s. Mega events often attract the resources they require,
like volunteers, due to the novelty of such events and the opportunity to become part of
an international sport event experience (Chapter 17). WMG organisers are seeking
4,000 Pit Crew, as they have named their volunteer workforce (World Masters Games
2017, 2016). Thus far, organisers have not experienced the challenge that other events
and sporting bodies sometimes experience when securing volunteers. Six months out
from the Games, organisers indicate that they are on target for volunteer recruitment
and have secured 75% of their 4,000 Pit Crew members. Interest continues to build
daily and we are condent of attracting the required volunteers to help us deliver the
Games (J. Wootten, CEO WMG2017, personal communication, 2 November 2016).
In addition to the sometimes limited availability of human resources, sport organi-

sations may lack investment and revenue streams. Even though sports, mainly at the
professional level, reportedly generate revenue into the millions and even billions, the
average regional sport organisation (RSO) or NSO is typically unlikely to be cash rich.
As government sport bodies like High Performance Sport New Zealand, Sport England
and Sport Canada continue to fund NSOs to varying degrees in the hopes of produc-
ing medals at pinnacle events, some organisations, at both the national and regional
levels, have trouble keeping their doors open due to ongoing cash ow constraints.
Many organisations struggle to deliver their programmes and services and thus we see
the rise of user pays or pay as you play options. Also many sport organisations do not
have staff with the needed talents and skills to operate and perform at their best. It
would be interesting to determine how many RSOs and NSOs have full-time human
resource or nancial managers. Often these jobs are lled through contracted bodies
or are left to the CEO and, if the organisation is big enough, to a division manager.
This skills shortage is a concern for many current sport managers and will continue to
be one in the future.
Finally, the last issue to be discussed is sport governance. As seen in Chapter 10,
and often in the media, there are far too many examples of poor governance, which is,
and will continue to be, a challenge for sport managers. Chapters 1 and 10 described
some governance issues such as those of FIFA, footballs (or soccers) international
governing body, and provided relevant examples of awed governance. Governance
issues go beyond the strategic management of sport organisations and go as far as to
include integrity-related issues like unethical behaviour, corruption, bribery, fraudu-
lent activities, inadequate leadership and the lack of control of performance enhancing
drug use. OBoyle and Bradburys Sport Governance: International Case Studies (2013)
recognised and exemplied many of these issues from an international perspective.
Sport governance issues, although a common educational focus by organisations like
Sport NZ and the ASC, will unfortunately be a concern of sport managers into the
future.
SUMMARY
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REVIEW QUESTIONS
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road to employment in the sport industry?
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REFERENCES
iiV]E
>`V]- `{The business of sport management>]1\*i> `V>
>V] - ]
] ] 7iiì] E }i] The future of Australian sport:
Megatrends shaping the sport sector over coming decades-6V>]>>\
-,"
i],]-]
] V]E-i>] xSport management: Principles and applications
`\,i`}i
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]
E/iLi] `Sport business management in New Zealand and
AustraliaiLi\
i}>}ii>}
V}] x /i vi v i i`> -> >` i>>i ,iii` i
v\viv}Vi>`/iiv-x,i`v
" i]E >`L]/Sport governance: International case studies`\,i`}i
-L] E ii] * Sport management in Australia: An organisational overview
i] -7\iE1
->`,iVi> i>`Volunteers: The heart of sport The experiences and moti-
vations of sports volunteers7i}] i>`\-*,
- i>`
iVVviiVi>ViVV>}vi>ì,iii`
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-i}>xFuture of sport in New Zealand7i}] <\- i>`,iii`
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Index
Page numbers in bold denote gures, those in italics denote tables.
4 Cs of sport marketing 8, 1889, 18991, 276 athlete pathways 77, 79, 86, 91
4 Ps of marketing mix 8, 1925, 276 athletes/players 7, 44, 456; behavioural
expectations placed upon 46; factors
Abbott, A. 80 inuencing success of individual 834;
Abeza, G. 222 media interest 46; rights as employees
abuse 151; child 15, 16; prevention 16 2412; as role models 46; salaries 4, 46,
accountability 108, 110, 119, 145, 273 202, 209; and social media 217, 21819;
actual standard deviation 205 welfare of 38
Adidas 51, 53 Athletic Talent Development Environment (ATDE)
advertising 17, 50, 55, 173, 179, 188, 195 model 79, 84
air transport 265 attraction, retention/transition and nurturing
Aisbett, L. 1367 (ARTN) of athletes 77, 79
alcohol 16 Auckland Football Kingz 98100
All Blacks rugby team 1656 audit 97, 106, 11011
Allen, J. B. 136 Australia: anti-discrimination legislation 17;
Allen, Paul 155 basketball 21, 150; cricket 47, 117; federal
Alpine Club 264 model of governance 148; football see
alternative sports and events 14 Australian Football League (AFL); professional
Amazon 53 leagues 47; rugby 20, 21, 52; sport facilities
ambush marketing 8, 1789, 2401, 276 1718; sport volunteers 132, 134, 135,
American football 46, 545, 60, 63; Super Bowl 137, 138, 139; surng 138, 2689; tennis
55, 139, 195; see also National Football 223, 224
League (NFL) Australian Commonwealth Games Association 150
American Marketing Association (AMA) 185 Australian Football League (AFL) 4, 48, 52, 78, 177;
Ancient Greece and Rome 264 AFL 9s 13; Auskick programme 135; FOX
anti-doping rules 9, 16, 233, 2356 SPORTS PULSE system 135; volunteers 135
arbitration 233, 234 Australian Multicultural Foundation (AMF) 22
Armstrong, Lance 6, 16, 207 Australian Olympic Committee Board 150
Arnold, Richard 51 Australian Open tennis tournament 223, 224
Arsenal Football Club 49, 216 Australian Sports Commission (ASC) 5, 1516,
ASC see Australian Sports Commission (ASC) 35, 117, 134, 148, 150, 276, 278, 280
Asian Games 62 authentic leadership 8, 1668, 169
associations 28 authenticity of sport events 250, 256
Athens Olympics (2004) 206 Avolio, B. J. 166, 167
Atherton, M. 101, 1023
athlete development 7, 75, 76, 7780, 83, Backoff, R. W. 118
845, 91 Baker, J. 79
Index 283
Baker, L. B. 179 broadcasting 4, 49, 50, 51, 523, 200;

Balanced Scorecard 1245 Olympics Games 523, 153; over the top
Ballmer, Steve 155 (OTT) content 53; revenue 3; rights 17; see
Ballouli, K. 217 also media; television
Bang, H. 136, 138 Brodie, R. J. 220
banned substances 16, 235, 236 Brooklyn Nets 155
Barnes, S. 53 Brouwers, J. 78
barre classes 14 Bull, C. J. 25960, 262, 267
Bartle, M. 136 bullying 15
baseball 48, 59, 62; internationalisation of 64; Burns, J. 164
Major League Baseball (MLB) 64, 66, 202 Burton, N. 178
basketball 46, 48, 59; internationalisation of Byron Bay, NSW, surng 2689
634; Midnight Basketball programme 201;
see also National Basketball Association Calgary Stampede 62
(NBA); Womens National Basketball Campbell, J. L. 39
Association (WNBA) Canada: ice hockey 58, 59; lacrosse 58, 59;
Basketball Australia 150 participation rates 59; sport volunteers 133,
Bass, B. M. 164 136
Bayle, E. 11920 canoeing 83
Beer, S. 95, 96, 97, 107 car ownership 265
Beijing Olympics (2008) 206, 253 Carroll, A. B. 389, 152
Benckendorff, P. 2478 Carter, David 217
betting 15, 209, 210 CAS see International Court of Arbitration for
Blatter, Sepp 5, 154 Sport (CAS)
Bloom, B. S. 78 celebrity endorsement 240
Board of Cricket Control in India (BCCI) 1013 Chadwick, S. 178
boards: delegate representative model of Chappelet, J. 11920
composition 1478; identication and charismatic leadership 164
recruitment of members 146; independence charity fundraising sport events 245
1467, 156; national sport governing Charlotte Bobcats 155
bodies (NSGBs) 32, 334; roles in non- cheating 9, 15, 151, 2079, 210, 2356
prot sport 146; and strategic planning Chelladurai, P. 32, 35, 36, 39
116, 119, 120, 128; structure of 146, Chelsea Football Club 49, 53
156; volunteer nature of 119, 128, 147, Chevrolet 51
148; women on 146, 14951 Chief Executive Ofcers (CEOs) 146; national
Boston Consulting Group (BCG) 104 sport governing bodies (NSGBs) 32, 34; and
Boston Marathon 62 strategic planning 116, 120, 123, 127, 128
bowls, lawn 14 Chien, P. M. 173
boxing 15, 47, 150, 237 child abuse 15, 16
Boyle, R. 67 child protection policies 16
Bradbury, J. C. 202 children and sport 1112, 59
Bradbury, T. 280 China 59
brand awareness 173 Chinn, S. J. 221
brand personality 1734 Christopher, W. F. 96
brand recognition 196 Clavio, G. 221
brands 8, 9, 1956, 215; emic and etic 181; Cleveland Indians 216
interaction 220, 221; loyalty 216, 220, 222; climate factors (4 Cs of sport marketing) 189, 191
and social media 216, 217, 218, 219, 220, Cloud9 181
221, 2223, 224; as sponsors 172, 1734, Club Mditerrane 265
181 clubs see professional clubs
breach of contract 9, 234 coaches 80, 164, 1656, 1678, 169, 239
Breuer, C. 136 coaching 78, 86
British Equestrian Federation (BEF) 845 coercive power 161, 162
284 Index
Cold War, and investment in HP sport 76 Cuban, Mark 155

collective volunteerism 137 culture, and high performance (HP) sport 81, 82
Collins, M. F. 263 Cuskelly, G. 1334
combat sports 4; see also boxing; martial arts cybernetics 96
commercialisation 3, 44, 48, 131, 200, 265, 273 cycling: Tour de France 62, 235, 245; Tour Down
commitment, in sponsorship partnerships 1767 Under 249
Commonwealth Games 18, 61, 244
Commonwealth Youth Games 61 Dallas Cowboys 48
communication(s) 9, 175, 180, 187, 215, 276, Dallas Mavericks 155
2789; marketing 216; two-way 216, 218; Darcy, S. 138
and viable system model (VSM) 96, 97, Davis, R. 221
1078, 112; see also social media De Bosscher, V. 84
communitas 249, 250 De Knop, P. 262
communities 7, 28, 44, 512 deception 40
community development 252 demand-oriented pricing method 1934
community engagement 254 democracy 36, 145
community sport: events 245, 256; see also demographics, consumer 190
grassroots sport destination marketing 245
community/local pride 140, 245, 252
destination marketing organisations (DMOs) 268
company (4 Cs of sport marketing) 189, 191
development goals see sport for development
competitions 78, 83; economics of 2026
Dietl, H. 66
competitive balance 203, 2046, 209, 276
diminishing marginal product 2012, 209
competitors (4 Cs of sport marketing) 189, 191
disability 16, 19
conict resolution 21
discretionary responsibility 39
consumerbrand relationships 221, 2223, 224
discrimination 15, 1617
consumer(s) 189, 1901; behaviour 1901;
district governing bodies (DSGBs) 29
demographics 190; product use information
Dittmore, S. W. 218
190; purchase behaviour 190
diversication in sport tourism 268
consumption of sport 58, 59; opportunities 60,
diversion, and sport event motivation 247, 256
61, 62; and social media 678, 69
contact sport, legality of 237 diversity management 37
contract, breaches of 9, 234 Djokovic, Novak 46
contract law 241 Doherty, A. 133
cooperation and collaboration 36, 47 domains of sport 302, 41
copyright 240 Donelly, J. H. 161
Cornwell, T. B. 173, 178 doping: scandals 6, 16, 53, 207; state-sponsored,
corporate social responsibility (CSR) 3840, 52, Russia 6; see also anti-doping rules; drugs;
152, 174, 275 World Anti-Doping Agency (WADA)
corporations, as stakeholders 7, 45, 49, 501, 55 double-loop learning 96, 98
corruption 4, 5, 40, 154, 156, 236, 274, 280; drugs: performance-enhancing (PEDs) 3, 4, 6, 15,
betting-related 209, 210 16, 151, 207, 2089, 210; testing 16, 235
costbenet analysis 199, 207 Dungy, Tony 1678
cost-plus pricing 193 duration of sport events 246
costs: xed 202; opportunity 199, 209; variable dynamic pricing 194
202
Ct, J. 78 economic environment 4, 274
cricket 150, 264; Board of Cricket Control in economic impact of events 206, 233, 250,
India (BCCI) 1013; Kriket Bilong Olgeta 2512, 256; displacement effect 251;
(Cricket Belongs to Everyone) initiative 19; investment 251, 252; new money 2512
one-day series 13; T20 format 13; World economic responsibility 38, 39
Cups 62 economics 89, 198211, 276; on-eld, of an
Cricket Australia 47, 117 individual athlete or team 2002; public
criminal law 9, 2368 nance 2067; of sport leagues and
crosst 14 competitions 2026
Index 285
Edelman, D. C. 220 Association) 4, 5, 49, 280; corruption 5, 40,

education, and sport for development (SFD) 201 154, 156; governance and 5, 151, 154,
egalitarian sport 6, 30, 31, 32, 41, 275 156, 232; presidents 154; reform 5; World
elite sport 6, 30, 31, 32, 41, 275; see also high Cups 4, 5, 18, 60, 61, 69, 154, 206, 244
performance (HP) sport nancial constraints, non-prot sport 136
emic brands 181 nancial management 45, 37
employee rights 2412 nancial reporting 108
employment law 2412 rm, the: denition of in sport 199, 209
employment-focused programmes 20 tness programmes 14
empowerment, of women 19 ow experiences 24950, 256
English Premier League (EPL) 45, 47, 51; football 489, 78; club ownership 48; league
internationalisation of 656; Kicks revenue sharing 66; see also American
programme 20; sponsored logos 67; football; Auckland Football Kingz; Australian
structure of 65, 66 Football League (AFL); National Football
entertainment sport 6, 30, 31, 32, 41, 275 League (NFL); soccer (football)
environmental complexity, in viable system model Football Association (FA) 232
(VSM) 96, 98 for-prot companies 189
environmental impact: of sport events 250, 251, Francophone Games 62
253, 256; of sport tourism 266 Fraser-Thomas, J. 78
equality, right to 236 fraud 40
equestrian sport 845 Frederick, E. L. 219
escaping and seeking motivation theory 2467 free agency 205
eSports 4, 1802, 279 French Jr, J. R. 161, 163
esteem, and sport event motivation 247, 256 Friedman, M. 38
ethical responsibility 39 funding: generation of 37; government 4, 9,
ethics, and governance 8, 1512, 156, 232 1718, 200, 2067, 210; income mix 4, 5;
etic brands 181 sources of 45; see also sponsorship
Europa League 49, 66 Funk, D. C. 247
European Maccabi Games 62
European Professional Football Leagues (EPFL) 49 gambling 15, 209
European Super League 49 game theory 208
European Union (EU) 35, 232, 241 Gammon, S. 262
Eurosport 153 Garcia, Michael 154
event travel career trajectory 248 Gay Games 62
events see sport events gender 19; differentiation 17; diversity 14951
excellence, pursuit of 38 geopolitics 4, 274
excitement, and sport event motivation 247, 256 German Democratic Republic, HP sport investment
expert power 161, 163, 164 76
extreme sports 260, 279 Germany 154; Bundesliga 66; sport volunteers
133, 136
Facebook 9, 215, 21718, 220, 221 Getz, D. 263
facilities see sport facilities Giannoulakis, C. 139
Fair Go Sport initiative 15 Gibbs, C. 218
Fairley, S. 139 global sport environment 7, 5871, 275
fans 48; brand relationships 216, 217, 219, 220, globalisation 48, 512, 265, 270, 274
221, 224; loyalty 217, 220, 224; and Glyptis, S. A. 263
social media 216, 217, 218, 219, 221, goals 7, 86, 87, 117, 121, 122, 1236, 127,
2223, 224; as stakeholders 7, 44, 49, 145, 161, 164; sponsorship-specic 1767
501 going-rate pricing method 193
Farrelly, F. J. 1767 golf 14, 267; Ryder Cup 62, 2234
Ferkins, L. 34 good governance 356, 41, 1456
eld hockey 49 Good Sport programme 16
FIFA (Fdration Internationale de Football Goodsetin, L. 121
286 Index
Google 53 823, 84, 87; micro level 835, 87);

governance 56, 345, 2323, 234, 274, 276, managing HP sport distinguished from HP
280; academic research and 1478; and sport management 756; Papua New
ethics 8, 1512, 156, 232; failures 3, 5, Guinea case study activity 8890; policies
151, 280; federal model of 146, 148, 149; 82, 83, 86, 88; strategic management 7,
good 356, 41, 1456; non-prot sport 5, 75, 77, 8690, 91; and viable system model
8, 14554, 156; and Olympic Games (VSM) 10711; see also elite sport
1523; professional sport 8, 155, 156, 232; Higham, J. 259, 262, 263, 266, 270
unitary model of 1488; role of women in 8, Hinch, T. 259, 262, 263, 266, 270
14951, 156; see also boards hockey see eld hockey; ice hockey
governing bodies 67, 278, 44, 45, 489, Hoeber, L. 136
2323, 234, 239; see also national sport holiday entitlement, and sport tourism 2645
governing bodies (NSGBs); and names of homophobia 15
individual bodies horse racing 15
government intervention 1418; discrimination Horton, S. 79
and safe sport 15, 1617; facilities hospitality 174, 180
development and construction 1718; hosting opportunities 61
funding 4, 9, 1718, 200, 2067; gambling hot yoga 14
policy 15; health promotion 1415; integrity Hoverstadt, P. 96
in sport 1516; media regulation 17; nation- Hoye, R. 1367
building and national identity 18 Huddle, The (case study) 212
grassroots sport 1213, 117; nancial constraints human capital 175; sport volunteers 133, 137
136; safety issues and participation in 601; human resource management 273; and sport
sponsorship 172; technical and volunteers 131, 132, 1337, 275
administrative innovation in 136; Humphreys, B. R. 66
volunteering in see sport volunteers Hutchins, B. 68
Greenleaf, R. K. 168 Hutchinson, M. 217
Gubler, R. 141
Gulbin, J. 79, 80 IAAF see International Amateur Athletic association
Gntert, S. 138 (IAAF)
gymnastics 59, 150 iBUYPOWER 181
ICC see International Cricket Council (ICC)
Hajkowicz, S. A. 278 ice hockey 58, 59; internationalisation of 645;
Hallmann, K. 133, 139 World Cups 62; see also National Hockey
hallmark sport events 245, 256 League (NHL)
handball 150 ideal standard deviation 205
harassment 15 image rights 229
harm: do no harm principle 3940, 238; image of sport, protection of 37
rectication of 40 IMGA (International Masters Games Association) 13
Harms, G. 139 impacts of sport events: economic 206, 233, 250,
Hayne, Jarryd 545 2512, 256; environmental 250, 251, 253,
health, and sport for development (SFD) 20 256; negative 251, 256; positive 251, 256;
health policy 1415; physical activity guidelines social 250, 251, 2523, 256
15; public awareness and education income mix 4, 5
programmes 15; tax incentives 15 information ows 96, 1078, 110, 112
healthy eating 20 infrastructural developments 252
Henriksen, K. 79, 834 Inglis, Greg 2001
Henry, Sir Graham 1656 Instagram 9, 215, 217, 219
high performance (HP) sport 7, 7594, 274, 275; institutional subsystem 35; of national sport
athlete development 7, 75, 76, 7780, 83, governing bodies (NSGBs) 32, 33, 41
845, 91; and Cold War politics 76; integrity in sport 1516, 280
determinants of managing 7, 75, 815 intellectual property 9, 23940
(macro level 812, 845, 87; meso level intercollegiate athletics, United States 35
Index 287
International Amateur Athletic association (IAAF) leagues see professional leagues

30, 53 learning loops 96, 98
International Court of Arbitration for Sport (CAS) Lee, C.-K. 138
233, 236 legacy 61, 244, 252, 256
International Cricket Council (ICC) 13, 19 legal environment 4
International (Field) Hockey Federation (FIH) 49 legal responsibility 389
International Masters Games Association (IMGA) 13 legitimate power 161, 162, 1634
International Olympic Committee (IOC) 4, 5, 35, Leicester City Football Club 656, 169, 231
52, 1523, 194, 2323, 235, 259; leveraging 173
candidate city evaluation 253; Executive liminality 249, 256
Board composition 149; Rule 40 179; and line of sight 127
women in sport 149 livelihoods, improvement of 1920
internationalisation 274, 279; of professional Liverpool Football Club 49
leagues 60, 625, 689 local pride 140, 245, 252
Invictus Games 62 local sport events 245, 256
IOC see International Olympic Committee (IOC) logos 196; sponsored 67
Islamic Games 62 London Olympics (2012) 82, 149, 153, 206,
254, 255
Jacobs, Brandon 219 Long Term Athlete Development (LTAD) model 84,
Jacobs, Jeremy 277 85
Jacobs, T. O. 161 Los Angeles Clippers 155
Johnson, Ben 207, 235 loyalty: brand 216, 220, 222; fan 217, 220, 224
Johnson, Glory 219 Luthans, F. 166
Jones, Marion 207
Jordan, Michael 155 McCarthy, Jerome 1923
Journal of Sport and Tourism 259 McHugh, J. 278
Joyce, P. 118 Maennig, W. 206
judo 150 Major League Baseball (MLB) 64, 66, 202
major sporting events 245, 256
Kaplan, R. S. 1245 managerial subsystem 35; of national sport
Kassing, J. W. 217, 219, 220 governing bodies (NSGBs) 32, 33, 41
Kearns, K. P. 148 Manchester City Football Club 49
Kerwin, S. 140 Manchester United Football Club 49, 51, 53
key performance indicators (KPIs) 108, 127 marginal product 201; diminishing 2012, 209
Kodama, E. 13940 marginal revenue 203, 204
Korea 154; sport volunteers 138 marginal revenue product (MRP) 202
Krautman, A. C. 202 market segmentation 8, 1912; volunteer 134
Kristiansen, E. 140 marketing 180; ambush 8, 1789, 2401, 276;
Kurtzman, J. 124 dened 185; destination 245; marketing mix
Kuypers, T. 47 8, 1925, 276; relational 221; sponsorship-
linked 173; target 192, 195; see also sport
lacrosse 58, 59 marketing
Lavallee, D. 789 marketing communication 216, 220
law 9, 22930, 231, 23342, 2767; contract markets 28
241; criminal law 9, 2368; employment martial arts 230, 237
2412; and internal governance of sport Martinet, A. C. 118
234; tort law 9, 236, 2389 Mason, D. S. 50
lawn bowls 14 mass participation sport events 245, 246, 256
leadership 8, 38, 15971, 275, 276; authentic match xing 3, 4, 15, 151, 236
8, 1668, 169; charismatic 164; denitions media 46, 2523; ownership 17; regulation of
of 161; and management distinguished 160, 17; rights deals 49, 523; as stakeholders 7,
169; power and inuence 1614; servant 8, 45, 49, 524, 55; see also social media;
1689; transformational 8, 1646, 169 television
288 Index
Meenaghan, T. 179 41; and domains of sport 302, 41;

mega sporting events 4, 18, 5960, 200, 261; horizontal differentiation of units within 32;
denition of 244; economic impact of 206, institutional subsystem 32, 33, 41;
252; public funding of 2067; trade impact managerial subsystem 32, 33, 41; managing
of 206; volunteers 13840, 279 subunits of 356; as a monopoly and
member protection policies 16 monopsony 2930; social responsibility 30,
merchandise 49, 174, 250 3840; technical subsystem 323, 41;
meta-system 97 vertical differentiation of units within 325
Mexico Olympics (1968) 16 national sport organisations (NSOs) see national
migration 212 sport governing bodies (NSGBs)
Miskimmin, Peter 278, 279 natural resources, and sport tourism 2601, 266,
mission 87, 97, 189 269
mission statements 117, 121 NBA see National Basketball Association
missionary values 96 NBC (National Broadcasting Company), US
modied sport programmes 13 523, 153
monopoly, national sport governing bodies negligence, tort of 9, 2389
(NSGBs) as 2930 netball 150; Come on Tonga, Lets Play Netball!
monopsony, national sport governing bodies programme 20; NetFit initiative 14
(NSGBs) as 2930 Netix 53
motivation: sport tourist 260, 262, 263; sport New York Yankees 48
volunteer 132, 134, 137, 1389, 140, 141; New Zealand, sport volunteers 132
see also sport event motivation New Zealand Rugby Football Union (NZRFU) 4,
motor racing 47 1037
mountaineering 264 Newton, C. 136
mud runs 14 NFL see National Football League (NFL)
multiculturalism 22 NHL see National Hockey League (NHL)
Nike 51, 1956
Nash equilibrium 2089 NOCs see National Olympic Committees (NOCs)
nation-building 18 non excludable public good 207
National Anti-Racism Strategy, Australia 15 non-prot sport 189; nancial pressures 136;
National Basketball Association (NBA) 46, 51, funding 45; governance 5, 8, 14554,
175; governance of 155; internationalisation 156; strategic management and planning 7,
634; revenue sharing 66; sponsored logos 11629; see also high performance (HP)
67; weighted lottery system 209 sport; national sport governing bodies
national engagement 254 (NSGB); public (government) funding
National Football League (NFL) 46, 545, 151, non-rival goods 207
1678; governance of 155; North America: sport leagues (internationalisation
internationalisation of 63; revenue sharing 66 of 625, 69; structure of 65); see also
National Hockey League (NHL) 645; revenue Canada; United States
sharing 66 North American League of Legends Championship
national identity 18 Series 181
National Olympic Committees (NOCs) 149, 152, North Melbourne Football Club (NMFC) 22
153 Northouse, P. G. 161
national pride 18, 231, 254 Norton, D. P. 1245
National Rugby League (NRL), Australia: corporate Norway, sport volunteers 137, 140
social responsibility (CSR) programmes 52; NRL see National Rugby League (NRL)
League Bilong Laif (League for Life) programme Nutt, P. C. 118, 121
21; School to Work programme 20 Nuzman, Carlos Arthur 254
national sport governing bodies (NSGBs) 7,
2743, 274, 275, 280; apical obesity 4, 15
responsibilities of 368, 41; board of OBoyle, I. 280
directors 32, 334; Chief Executive Ofcer OBrien, W. 1334
(CEO) 32, 34; compared to a state 389, Oceania Games 62
Index 289
older adults 13 pay: and performance 202; superstar athletes

Olympic Charter 13, 149 202, 209; see also salaries
Olympic Games 4, 59, 60, 69, 194, 2323, peace building 21
244, 261; Athens (2004) 206; Beijing Pearce, P. 2478
(2008) 206, 253; broadcasting rights 523, Pegoraro, A. 219, 220, 221
153; economic impact of hosting 206; performance: and pay 202; and sport event
governance 1523; host city selection 253; motivation 247, 256; and team selection
hosting opportunities 61; impacts on host city 2002
2545; local organising committees (LOCs) performance appraisal 1278
153; London (2012) 82, 149, 153, 206, performance management: individual 1278,
254, 255; Mexico (1968) 16; and nation- 128; see also organisational performance
building and national Performance Prism 124
identity 18; and national engagement 254; performance-enhancing drugs (PEDs) 3, 4, 6, 15,
National Olympic Committees (NOCs) 149, 16, 151, 207, 2089, 210
152, 153; Rio de Janeiro (2016) 5, 61, periodicity of sport events 246
153, 254; sponsorship 153, 174, 179; PEST analysis 89
Sydney (2000) 139, 254, 255; Youth 61, Pfahl, M. E. 217
274; see also International Olympic Philadelphia 76ers 67
Committee (IOC); Winter Olympics physical activity guidelines 15
Olympic movement 13, 232 physical education 12
opportunity cost 199, 209 Pilates 14
organisational culture 131 Pitts, B. G. 185
organisational design 35, 96 place dependency 9, 2667
organisational identity 96, 97, 111 place (marketing mix) 192, 194
organisational performance 1235; and Platini, Michel 154
organisational structure see viable system Play by the Rules initiative 15
model (VSM) players see athletes/players
organisational purpose 96, 97, 111 playing culture 237
organisational values 96, 97, 111 playing rules 234, 237, 239
Organising Committee for the Olympic Games policy: and high performance (HP) sporting success
(OCOG) 152 82, 83, 86, 88; see also health policy
Ostapchuk, Nadzeja 207 political environment 4
Oster, S. M. 121 politics, and high performance (HP) sport 812
Otago Rugby Union 4 population, and international sporting success 81
output in sport 199 Portland Trailblazers 155
over the top (OTT) content 53 power: coercive 161, 162; expert 161, 163,
ownership, of professional clubs/teams 48, 155 164; legitimate 161, 162, 1634; referent
161, 163, 164; reward 1612
Pan American Games 62 Price, J. 209
Paralympics 83, 194 price/pricing 1878; cost-plus 193; demand-
parity, and professional leagues 2034, 20910, oriented 1934; dynamic 194; going-rate
276 193; and marketing mix 192, 1934;
Parsons, T. 35 seasonal 194
participant sport industry segment 186 pride: local/community 140, 245, 252; national
participation in sport 58; children 12, 59; 18, 231, 254
constraints on 601; mass participation Priestley, G. K. 263
events 245, 246, 256; modied versions to prisoners dilemma 209
encourage 13; older adults 1314; product development 38
opportunities for 602; rates of, Canada 59; product (marketing mix) 192, 193
safety issues 601; sport event motivation productivity, player 2012
2478, 250, 256; sport tourists 260, 261 professional clubs: cooperation between 47;
passing off problem 240 ownership 48, 155; as stakeholders 7, 44,
patriotism, and sport volunteer satisfaction 138 45, 478; value of 48
290 Index
Professional Golfers Association (PGA) 223, 224 Raw, Katherine 212

professional leagues 7, 44, 45, 467, 245, Real Madrid 48
275; cartel-like practices 47; commissioners recruitment: of board members 146; of sport
155; competitive balance 203, 2046, volunteers 132, 1334, 135
209, 276; economics of 2025; referees 239
internationalisation of 60, 625, 689; referent power 161, 163, 164
parity in 2034, 20910, 276; promotion reexive volunteerism 137
and relegation battles 47; reserve clause regional competitions 62
system 2045; revenue sharing 66; reverse regional sport organisations (RSOs) 29, 280
order entry draft 205, 209; structure of relational marketing 221
657; see also Australian Football League religious belief 16
(AFL); English Premier League (EPL); requisite variety, in viable system model (VSM) 96,
European Professional Football Leagues 98, 107, 108
(EPFL); Major League Baseball (MLB); reserve clause system 2045
National Basketball Association (NBA); resourcing 76, 82, 97, 108, 110, 111
National Football League (NFL); National retention, volunteer 132, 134, 135, 1367
Hockey League (NHL); UEFA, Champions revenue 49, 280; broadcasting 3; marginal 203,
League; UEFA, Europa League 204; sharing 37, 44, 66, 205; tourism 251,
professional sport 7, 4457, 59, 274, 275; 252
broadcasting see broadcasting; media; reward power 1612
dened 45; globalisation of 48, 512; Reynolds, Harry 30
governance 8, 155, 156, 232; stakeholders Richter, F. 206
(external) 7, 445, 4954, 55, 275; Riecke, M. 168
(community 7, 44, 512; corporations 7, 45, Riggio, R. E. 164
49, 501, 55; fans/spectators 7, 44, 49, rights 229, 236; employee 2412; equality 236;
501; media 7, 45, 49, 524, 55); image 229
stakeholders (internal) 7, 44, 459, 55, 275; Rio Olympics (2016) 5, 61, 153, 254
(athletes 7, 44, 456; clubs 7, 44, 45, Robinson, T. 262
478; governing bodies 7, 44, 45, 489; role models: athletes as 46; leaders as 165
leagues 7, 44, 45, 467); see also Rose, A. K. 206
professional clubs; professional leagues Rothschild, P. C. 216
professionalisation 12, 131, 273, 274 Rottenbergs invariance principle 205
professionalism 3 Rowe, D. 68
promotion (marketing mix) 192, 1945 Rowing New South Wales, strategic plan 1256
promotional mix 195 rugby 4, 59, 150; internationalisation of 65;
provincial sport governing bodies (PSGBs) 29 Rugby Sevens 13; safety issues 601; United
psychic income 252, 254 States 65; Wales 59; World Cups 61, 62;
psychographics, consumer 190 see also National Rugby League (NRL); New
psychology 78 Zealand Rugby Football Union (NZRFU);
public awareness and education programmes 15 Rugby Football Union (RFU)
public good 207, 210 Rugby Football Union (RFU) 63
public (government) funding 4, 9, 1718, 200, rules: playing 234, 237, 239; safety 234, 239
2067, 210 Running of the Bulls 62
Russia: Football World Cup (2018) 5, 154; state-
Qatar: Football World Cup (2022) 5, 154; sport sponsored doping 6; see also Soviet Union
volunteers 139 Ryder Cup 62, 2234
Quester, P. 1767
safety issues 15, 16, 601
racism 15 safety rules 234, 239
railways 264 salaries: athletes/players 4, 46, 202, 209; mens
Ranieri, Claudio 169 versus womens 46
ratio of standard deviations (RSD) 205 salary caps 66, 205
Raven, B. 161, 163 Sanderson, J. 217, 219, 220
Index 291
satisfaction, sport volunteer 1367, 138, 139 sport organisations use of 21617, 218,
Saudi Arabia 154 220, 2214
Scanlon Foundation 22 social responsibility 30, 3840, 52, 152, 174,
scarcity 198, 199, 209 275
Schemerhorn, J. R. Jr. 163 socialisation 23; and sport event motivation 247,
Schlesinger, T. 134, 141 256
school sport 12, 61 society, impact of sport in 6, 1126, 274
Scully, G. W. 202 sociology 187
seasonal pricing method 194 `soft power of sport 61
Seattle Seahawks 155 softball 150
self-actualisation 2478, 256 Sons of the West health initiative 20
self-development 2478, 256 Sotiriadou, P. 77, 79, 80, 84
self-regulation 231, 234 South American Games 62
Sense of Community in Sport Scale (SCS) 140 Soviet Union, HP sport investment 76
servant leadership 8, 1689 Special Olympics 62
sexual health 20 specialisation 200; national 82; of sport
sexuality 16 participation for children 12; and sport
Sharapova, Maria 6 tourism 268, 269
shareholders 145 spectators: sport event motivation 2467, 256; as
Shilbury, D. 34 sport tourists 261
Shute, R. 54 Spiegel, J. J. 206
Siegfried, J. 206 SPLISS (Sport Policy factors Leading to International
Siltanen, R. 55 Sporting Success) model 83, 845, 88
single-loop learning 96, 98 sponsorship 4, 5, 8, 37, 49, 51, 53, 55, 67,
Skechers 55 17283, 196, 276; and ambush marketing
skiing 264, 2667 8, 1789, 276; brands and 172, 1734,
skills development 78 181; conict of goals 1756; dening 173;
Slack, T. 121 duration 175; eSports 1802; exclusivity
Smith, A. 44, 45, 46, 47 175; grassroots level 172; leveraging and
soccer (football) 49, 60, 689, 78, 230; club activation 173; measuring 17980; Olympic
ownership 48; and employee rights 241; Games 153, 173, 179; partnership success
governing bodies 49, 232; league revenue characteristics 1767; price issues 175;
sharing 66; walking 1314; World Cups 4, soliciting 1778, 1802; sources of failure
5, 18, 60, 61, 69, 154, 206, 244; see also 177; sport properties reasons for seeking
English Premier League (EPL); FIFA 1745; tobacco 15; trends in 180; trust and
(Fdration Internationale de Football commitment factors 1767; value in kind
Association); UEFA (VIK) 175
Sochi Winter Olympics (2014) 153, 206 sponsorship-linked marketing 173
social capital: and sport events 252; and sport sport: as an activity 230; as a business 2301;
volunteers 131, 137, 138 denition of 230; organisational structure of
social cohesion 212, 131 2323; popular understandings of what is
social environment 4, 274 meant by 2301; as source of pride and joy
social impact of sport events 250, 251, 2523, 231; `special nature of 231
256 sport business degrees 1856
social media 7, 9, 17, 4950, 678, 69, sport business industry 1856, 2301
21528, 275, 276, 2789; athletes and sport business management 273
217, 21819; brands and 216, 217, 218, Sport Canada 280
219, 220, 221, 2223; challenges of using sport context 45
2214; and consumerbrand relationships sport development: adopting an informed and
221; denitions of 216; fans and 216, strategic approach to 80; non-empirical
217, 218, 219, 221, 2223, 224; and versus evidence based approaches to 7980;
marketing 216, 218, 219, 220, 2212; pyramid 7980; skills development versus
and off season brand experiences 222; organisational approaches to 789
292 Index
sport for development (SFD) 1822, 23; disability sport tourists: motivations 260, 262, 263;
programmes 19; and education 201; and participants 260, 261; spectators 261
health 20; and livelihoods 1920; peace sport volunteers 13044, 275, 279; attitudes to
and social cohesion 212; volunteers 140; volunteering 134; autonomy 140; episodic/
women and girls 19 event 137, 13841; in grassroots sport
Sport England 280 78, 13044, 279; human capital 133,
sport event experience 24850; augmented 137; human resource management
activities and 249; authenticity of 250, 256; considerations 131, 132, 1337, 275;
communitas and 249, 250; ow experiences long-term 1378, 139, 140; market
24950, 256; liminal experiences 249, 256 segmentation 134; mega events 13840,
sport event motivation 2468, 256; escaping 279; motivations 132, 134, 137, 1389,
and seeking motivation theory 2467; 140, 141; pioneer 139; recruitment of 132,
participants 2478, 250, 256; push and 1334, 135; retention 132, 134, 135,
pull motives 246, 247, 256; spectators 1367; role/job uncertainty 140;
2467, 256; see also sport volunteers, satisfaction 1367, 138, 139; sense of
motivations community 140; social capital 131, 137,
sport events 9, 24358, 277; charity fundraising 138; sport for development 140
245; classication of 2436, 256 (size 244, sporting goods industry 186
256; sporting characteristics 2456, 256; squash 159
temporal characteristics 246); hallmark 245, stakeholder analysis 89
256; impact of see impacts of sport events; stakeholders 145; and athlete development 78,
legacy 61, 244, 252, 256; local/community 79; and strategic planning 11920, 121,
245, 256; major 245, 256; mass 128; see also professional sport, stakeholders
participation 245, 246, 256; see also mega Standeven, J. 262
sporting events STARCLUB programme, South Australia 135
sport facilities 1718; public funding of 206, 210 state, national sport governing bodies (NSGBs)
sport involvement 9, 267 compared to 289, 41
sport marketing 8, 18497, 276; 4 Cs of 8, Stavros, C. 218
1889, 18991, 276; dened 1845; Sterling, Donald 155
marketing mix (4 Ps) 8, 1925, 276; process Stewart, B. 44, 45, 46, 47
of 1879; research 18991; and social Stotlar, D. K. 185
media 216, 218, 219, 220, 2212 strategic compatibility, and sponsorship
Sport Marketing Management Model 187, 188 partnerships 177
sport medicine 86 strategic management and planning 7, 11629,
Sport New Zealand (Sport NZ) 5, 107, 276, 278, 275; and academic research 11819, 121;
279, 280 Balanced Scorecard as tool for 1245;
sport organisations: and athlete development board members and 116, 119, 120, 128;
778, 79; and social media 21617, 218, CEOs and 116, 120, 123, 127, 128;
220, 2214; see also non-prot sport; and cyclical model for 119, 120; and goals 7,
names of individual organisations 1235; high performance (HP) sport 7, 75,
sport properties 172, 173, 1745 77, 8690, 91; individuals role in achieving
sport psychology 78 strategic objectives 1278; and performance
sport science 78, 86 management 7, 1235, 128; Rowing New
sport tourism 910, 62, 244, 25972, 277; South Wales case study 1256; stakeholders
activities classication 262; diversication and 11920, 121, 128; strategy evaluation
strategy 268; environmental impact of 266; 87; strategy formulation 87, 11922;
historical development 2635; and holiday strategy implementation 87, 123; and SWOT
entitlement 2645; and natural resources analysis 89, 1223, 128; volunteers and
2601, 266, 269; planning 2679; 119, 128
resources 2657; revenue 251, 252; strategy, as a term 86
specialisation strategy 268, 269; and Super Bowl 55, 139, 195
technology 263, 270; and transportation 9, superstar athletes, pay 202, 209
261, 264, 265 Surf Life Saving Australia (SLSA) 138
Index 293
surng, Byron Bay, News South Wales 2689 United States: anti-discrimination legislation 17;
swimming 59 baseball 48; basketball 201, 46, 48;
Swisher, Nick 217 football 46, 545, 60, 63; intercollegiate
Switzerland, sport volunteers 134 athletics 35; rugby 65; sport volunteers 136,
SWOT analysis 89, 1223, 128 139, 140; see also Major League Baseball
Sydney Olympic Games (2000) 139, 254, 255 (MLB); National Basketball Association (NBA);
Szymanski, S. 47 National Football League (NFL); Womens
National Basketball Association (WNBA)
talent identication and development 612, 77,
83, 86; see also athlete development V Star initiative, South Australia 135
tanking 9, 15, 209, 210 Vancouver Winter Olympics (2010) 61, 65,
target marketing 192, 195 13940
tax incentives 15 VanSickle, J. L. 139
team selection, and performance 2002 variety, in viable system model (VSM) 96, 98
technical innovation, and grassroots sport 136 variety engineering 96, 98
technical subsystem 35; of national sport Vella, S. A. 168
governing bodies (NSGBs) 323, 41 viability, in viable system model (VSM) 96, 98
technological environment 4, 274 viable system model (VSM) 7, 95115, 275;
technology, and sport tourism 263, 270 cases (Auckland Football Kingz 98100;
television 265; advertising 195 BCCI (Board of Cricket Control in India)
tennis 14, 83, 150; Australian Open 223, 224; 1013; Essendon Football Club 1001; high
cardio 14; circuit 62; Fast 4 13; professional performance (HP) sport 10711; New
46, 53 Zealand Rugby Football Union (NZRFU)
Thailand 154 1037); conceptual underpinnings 978;
ticketing 18 overview 967
tobacco sponsorship 15 vision statements 117, 121
Toronto Raptors 63, 64 volleyball 59
tort law 9, 236, 2389 volunteer board members 147, 148; and strategic
Tour de France 62, 235, 245 management process 119, 128; training and
Tour Down Under 249 development 128
tourism see sport tourism volunteerism: collective 137; reexive 137
Townley, S. 178 volunteers, sport see sport volunteers
trademarks 240
training 78; of volunteers 128 Walden, J. 221
transformational leadership 8, 1646, 169 Wales, rugby union 59
transparency 35, 145 Walking Football 1314
transportation, and sport tourism 9, 261, 264, Wallace, L. 220
265 Watanabe, N. M. 66
trends and challenges in sport management Waters, R. D. 221
27780 wealth, and international sporting success 81
Treuren, G. 132 Weed, M. E. 25960, 262, 267
triathlon 150 Weeks, C. S. 173
trust 37; and sponsorship partnerships 1767 Welty-Peachey, J. 140
Twitter 9, 215, 217, 21819, 220, 221 Wenz, M. G. 66
Wicker, P. 136
UEFA 232; Champions League 49, 66; Europa Williams, J. 221
League 49, 66 winning percentages 2034
UK Sport 5, 276 Winter Olympics 65; Sochi (2014) 153, 206;
Ultimate Fighting Championship (UFC) 4 Vancouver (2010) 61, 65, 13940
Union of European Football Associations see UEFA Wollebk, D. 137
Union Royale Belge des Socits de Football women: discrimination against 16; empowerment
Association ASBL v. Bosman 241 of 19; salaries 46; in sport governance
United Arab Emirates 59 positions 8, 14951, 156; see also gender
294 Index
Womens National Basketball Association World Rugby 59, 60

(WNBA) 220, 221 World Scholar Athlete Games (2011) 140
World Anti-Doping Agency (WADA) 6, 16, 233, World Tourism Organisation 259
235 World University Games 62
World Anti-Doping Code 16 Wylleman, P. 789
World Baseball Classic 62, 64
World Cup of Hockey 62 youth competitions 612, 274
World Health Organization (WHO) 5, 14 YouTube 53
World League of American Football 63
World Masters Games (WMG) 13, 274, 279 Zimbalist, A. 206
World Military Games 62 Zintz, T. 36
World Police and Fire Games 62 Zvikas, Lukas 46

Understanding Sports Management: International Perspectives

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Understanding Sport

Complemented by a companion website full of additional teaching and learning

ISBN: 978-1-138-10062-6 (hbk)

Typeset in Berling and Futura

List of gures vii

SECTION 1 The sport management environment 1

1 The new sport management environment 3

SECTION 2 Foundations of sport management 73

8 Strategic management in non-prot sport 116

SECTION 3 Elements of sport management 213

3.1 Hierarchical order of governance for non-prot sport organisations 28

7.1 Conceptual underpinnings of the VSM 98

Insun Sunny Lee

Megat Ahmad Kamaluddin Megat Daud

Wirdati Mohd Radzi

The sport management

The new sport management

Key Terms: Professionalism; Commercialisation; Governance; Financial Management

THE SPORT MANAGEMENT ENVIRONMENT

STRUCTURE OF THE BOOK

The impact of sport in society

Key Terms: Community; Participation; Performance; Government Intervention; Social

CHILDREN AND SPORT

ALTERNATIVE SPORTS AND EVENTS

SPORT AND GOVERNMENT

Gambling and integrity

Discrimination and safe sport

SPORT FOR DEVELOPMENT

An obvious outcome of many sport programmes is increased physical and mental

Using sport as an enticement to stay in school or higher education can be found in a

PEACE AND SOCIAL COHESION

Assessing the outcomes of SFD programmes and interventions is difcult, however,

Case study: The Huddle

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Key Terms: Domains of Sport; Institutional Subsystem; Managerial Subsystem; Techni-

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National sport governing bodies

Provincial/state sport governing

District sport governing bodies

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NSGB COMPARED TO A STATE

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NSGB AS A MONOPOLY AND MONOPSONY

MANAGING THE SPORT

Elite sport Entertainment sport

Differentiation occurs when an organization is divided into units according to

Proximal (task) environment

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s increasing contribution of volunteer board members, including their will to engage in

MANAGING THE SUBUNITS

APICAL RESPONSIBILITIES OF AN NSGB

Governing member organisations

Guarding democracy in the NSGB

Fostering cooperation and collaboration among

Generation and sharing of revenues

Enhancing member capacity to generate funds

Facilitating effective management of member

Protecting the image of the sport

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