Global Sports Industry | The Importance of Sports in nation-building & surging in Social & Economic value.

Global Sports Industry | The Importance of Sports in nation-building & surging in Social & Economic value.

The market of Sports, Sports generating Revenue and Employment, Sports Unite People Worldwide, Biggest Sports Tournaments Worldwide, How Sports can boost various Sectors, Economic Impact in hosting

The wave of “Patriotism” is indispensable in nation-building and Sports is like a thread that binds together people in one nation and helps in developing a unity that can counter regional conflicts and threatening separatist forces.

Why the whole nation has so much keen interest about Sports?

How Sports Binds the citizens of the nation?

And how it advantages the boost of the economy?

To be honest, all questions have contrasting answers with distinct countries.

Taking the example of South Africa Sports Revolution:

Gabby Douglas, an African-American athlete, who was the 2012 Olympic epic champion and had won back-to-back Gold; but it was not the same always.

South Africa organized the Rugby World Cup in 1995 after the final years in 1994, However, Football and Cricket is one of South Africa’s national sports, it has traditionally been seen as a ‘white man’s game.’After years of violent struggle, the sport allowed them to put the nation ahead of the race.

Massive Market of Sports:

The global sports sector is evaluated to be worth between $480-620 billion.

The sports industry sector comprises distinct segments like sports tourism, sporting goods, sporting garments, and available opportunities in sporting management and sponsorship.

Additionally,  Sports contributes about 1 to 5 % of the country’s GDP.

Sports generating Revenue and Employment:

Sport is regarded as one of the behemoth industries worldwide in terms of generating employment and revenue. Opportunities will open up enormously in employment and massive market will be accessible.

The main factors that dictate how well a sport can generate income include:

  • The entertainment value of the sport
  • The extent of national and international participation
  • The cultural status attached to the sport
  • The importance of the sport in the school sport system

Income from Sport on Top level:

At the top level, it includes the presiding figures of sports like sponsors, investors, and other higher authorities.

  • television broadcasting rights
  • commercial sponsorships and endorsements
  • spectator fees at events
  • transfer fees of professional sports players e.g. sale of players to other teams

Income from Mid Level:

  • government funding
  • registration/capitation/affiliation fees
  • commercial sponsorship
  • services provided to registered participants e.g. coach education programs, merchandising

Income from Grass Roots Level:

At the grassroots level, sports bodies tend to generate income from:

  • user fees e.g. membership, game fees, facility usage fees
  • food and drink sales For instance, running a canteen, running a bar in the clubhouse,
  • clothing and equipment sales
  • fundraising
  • government funding of facility creation projects

Sports Unite People Worldwide:

Sports render a platform for people to come together and support their country. International events like the Olympics and the World Cup contribute as a point around which to rally and show national pride and unity.

During the 2014 World Cup, American fans came out in a mass to support the men’s national team. FIFA recorded that 200,000 World Cup tickets were sold to U.S. residents. The U.S. match against Portugal was one of the most-watched soccer games in the U.S. history with approximately 24.7 million viewers.

Biggest Sports Tournaments Worldwide :

Sports majority populace comes from the gigantic sports between countries and among them are NFL, NBA, Premier League, La Liga which produces the skyrocketing revenues in world.

These massive Olympics produces most of the money from the broadcasting media.

How Sports can boost various Sectors:

Helps in guiding the youth in the right path:

In Nairobi, Mathare Youth Sports Association (MYSA) has promoted youth soccer programs in slums to bring change and hope in the lives of many destitute children in slums. Prevailing problems like children dropping out of school, rampant drug abuse in the slums, has created hope and brought positivity amongst thousands of children in the slums.

Helps in building infrastructure:

1964 Tokyo Olympics and the 1988 Seoul Olympics had impelled Japan and South Korea onto the global stage. Similarly, the 2008 Beijing Olympic Games as China’s event showcase China’s transformation into a great economic power.

Liabilities in Transportation surge:

The commuting system & modern means of connectivity are set up in a city to prepare it for the hosting of a mega event. If we take the Olympics as an example, in Munich, the subway was expanded in 1972; in Seoul, many major roads were improved in 1988; and in Barcelona, ring roads were built in 1992.

Sports facilities are established:

Mega sporting events like the Olympics or the Commonwealth Games have the vigorous impact on the sports infrastructure in a city. Competent sports and training requisites of internationally acceptable standards have to be made available for all sports.

Telecommunication system get improved:

A mega sporting event brings the advance technology into the city to captivate the demand for telecommunications services. High-speed communication technologies are developed and provided to citizens after the event has ended.

Olympic space reused efficiently:

In most cities, sporting villages are constructed for the occasions. This opens up new housing facilities. For example, in Munich, the Olympic Village was established in 1972 for future use by socially deprived groups of society. In other metropolitan cities, the Olympic Villages have been sold to middle and lower-middle classes. While, in Los Angeles and Atlanta, the villages were reused as student accommodation after the Olympic Games.

Creating a Global community

Major international sporting events such as Olympics or a World Cup uplift universal brotherhood and gives a sense of closeness to a larger global community.

Economic Impact in hosting the Olympic of Nation:

Many developing countries invest in sports sectors and hosting to escalate their economic value from different ways.

Sports, Economy & Globalization | Sports in Major Enhancement in Country’s Recognition & Economy.

Selection of Country to host the Olympic:

China spent a whopping amount - $44 billion for the Beijing 2008 Games, while Rio 2016 cost $13 billion.

National Olympic Committees(NOC) that wish to host an Olympic Games choose accordingly the cities within their territories to put forth Bids for the Olympic Games. Fifty different cities are selected to host the modern Olympics for example, the 2020 Summer Olympics were awarded to Tokyo on 7 September 2013, the 2022 Winter Olympics were awarded to Beijing on 31 July 2015, the 2024 Summer Olympics were claimed to Paris on 13 September 2017.

The hosting process usually begins from 11 years before the Games are held as cities within various countries via to become national candidates. Civic and political leaders serve their contribution, but these efforts are likely driven by business concerns that stand to profit most: construction companies and unions, architectural firms, banks, and hotels.

If we notice the hosting of games in history,the spending was almost double the amount decided in bids.

Population and Wealth :

Olympians are not overnight stars. A country needs important economic resources to enhance their health outcomes and invest in long-term training and infrastructure.

To foster the athletes, a nation also needs a large population pool from which talent can be sourced.

Listing of the Sports reference which shows that the  wealthy nations that have seen sustained state investment in nurturing talent.

In Conclusion,

For generations, Countries are hosting a Prodigious amount of money in infrastructure, training players, and investing in proliferating social status for hosting competitive sports.  The first example is, Rio built 15,000 new hotels to accommodate tourists. Secondly, Sochi invested approx $42.5 billion in constructing non sports infrastructure for the 2014 Olympics. Next, Beijing spent a whopping amount of $22.5 billion constructing roads, airports, and rails, as well as almost $11.25 billion on environmental cleanup. Additionally, the majority of sponsors, media, athletes, and spectators typically travel a host city for 6 months before and six months after the Olympics, which brings in additional revenue.

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