Sport has not always had such an international flavor. Sport first spread across international borders through imperialistic efforts. As nations such as Great Britain colonized various areas throughout the world, sport was used to impose the conquerors’ culture on the colonized land. For example, the British introduced cricket and rugby to Australia when they colonized that continent. Publishers estimated highly the promotional value of sport and sports events as sales machines to boost publicity and circulation figures.
A key to the direction of the sports business are the faces of the individuals or entities that own the various sports enterprises. League founders have long preferred to work with individuals that they can look directly in the eye at the meeting and with whom they can make decisions on the spot. League commissioner and owners prefer to deal with an individual rather than an unwieldy corporate board. It is debatable whether this is good or bad for the sports industry; there can be no doubt, what is motivating to start investing money in the sports and athletes.
While owners have always been wealthy, escalating franchise prices and operating costs are simply made by individual. The game has become too risky and expensive for many of them to play but we should invest money in the sports because it is worthwhile to a person who wants to earn money and wants to invest it in a correct place. Estate planning has also led to the divestiture of sports franchises by the individual owners. Even when individual owners have remained, the rationale for their involvement may have changed.
Though some venerable owners like George Steinbrenner remain, a new breed of individual owners such as Dan Snyder, Jerry Jones, Mark Cuban, Ted Lleonsis, and Jeddrey Lurie has infused professional sports. In addition to financial benefits that can result from the ownership of the professional sports franchises, there is very high consumption value involves as well. Individual owners have long received significant psychological benefits, such as an ego boost, publicity, fun, access to athletes and other powerful individuals, membership in an exclusive fraternity or club, and the opportunity to be a real-life “fantasy team” owner.
Yet even the motivations of individual owners have changed, as there is an ongoing shift in focus to the synergies that ownership can provide. Bob Jonson, the owner of the Chalotte Bobcats NBA expansion franchise, explained it this way: “It’s not the sport side of me that drives ownership, it’s the business side. Owing an asset like this creates the potential for opportunities beyond the business itself. There are opportunities to develop relationships with other team owners. These are entrepreneurs who like to do things outside of the box. ”
It has been said that sport today is too much of a game to be a business and too much of a business to be a game. The sport industry in the United States is growing at an incredible rate. Currently estimates by Forbes magazine of the value of individual professional team sport franchises list the average National Football League (NFL) teams value at $530 million (Badenhausen et. at. , 2002), the average National Basketball Association (NBA) franchise at $ 248 million. The athletes and sports club industry reported a 2002 total annual dollar volume of $13. 1 billion (International Health, racquet and Sports club Association, 2003).
As the sport industry has grown, there has been a shift in focus toward a more profit- oriented approach to doing business. (Hums, Barr, Gullion, 1999). Man power investment is very good and always helps to do progress and to make a position in the universe. The very distinction drawn between manpower development and capital formation rest in part on a conventional, but basically arbitrary, definition of the latter concept. Conventionally, capital formation refers to the use of resources to add to the stock of tangible reproducible good useful in production.
The fundamental idea underlying the conventional definition, however, has to do so with any deliberate use of resources in ways which increase our potential productive capacity. Most commonly forty states have adopted the prudent man rule as the standard governing the investment decisions of these fiduciaries in the absence of language to the contrary in the trust instrument. The investment in the man power for the development of the light car in the United States, much of the public thinking has been concerned with “keeping up with the Joneses.
” On the other hand, in England, where motorists for many years have been more mileage-conscious, the light car progressed rapidly. Just over a year ago, General Motors announces plans for light Chevrolet; not long after, Ford followed suit. Now, both companies have apparently shelved their plans for trying these markets, feeling it “improper-tune” to divert materials and man- power to the production of light cars which will produce high mileage per gallon of gasoline. Electricity and gas, produces under conditions of decreasing costs, do not give rise to such diametrically opposed policies for this relation of the price level to costs.
Hums, A, Mary. Barr, A, Carol. Master Alexis, Pike, Lisa. (2005). Principles and Practice of Sport Management. Jones and Bartlett Publisher, 19. Horne, John. Manzentreiter, Wolfram. (2002), Japan, Korea and the 200 World Cup. 17,18 Abramowitz, Moses. (1989). Thinking about Growth. New York: Cambridge University Press. 295. Longstreth, Bevis. (1986). Modern Investment Management and the Prudent Man Rule. New York: Oxford University Press. 174. Rosner, R, Scott. (2004). The Business of Sports. Jones and Bartlett Publisher. 1, 67.