There are many people making money in the sports business right now. People who work in the sport, like the athletes, the corporations, the advertising, and the organizations that run the sport, all make million-dollar deals now, not just once in a while.
Even sports that aren’t very well publicized are now making money, which shows how much everyone cares about them. Many sports were played for money instead of fun in the 1970s and 1980s. Before that time, things were different.
There is nothing wrong with professionalizing and commercializing sports if fans are willing to pay to see or consume the ads on TV and if marketers see colossal money to be made in marketing their brands around major sporting events. Even if people don’t want to pay for the ads, this is true.
- To make money, people focus less on what is going on and more on the sideshows, which are seen as more important.
Changing the Game: The Effect of TV on the Economics of Sports
To understand how sports have become a multi-billion dollar business, let’s look at the economics of the game first. Commercialization may have changed when TV came out. People who play professional sports have made money through ticket sales until now.
Using TV, millions and maybe billions of people could watch, giving advertisers and marketers many people to reach. Because of this, TV rights to major sporting events are often sold for a lot of money.
The trickle-down effect is at work here because well-known sports stars who endorse products help market these brands because they have the visibility and celebrity, and the Top of the Mind recall is to be taken seriously.
TV was the first game-changer in sports. The Internet was second and maybe the most crucial changeover. It used to be possible to sell TV rights to companies that would show live-action in different places worldwide. The Internet leveled the playing field by making the live-action available to anyone, no matter where they were.
Top web portals have formed partnerships with extensive TV networks to reach more people. As a result, many kids who live in rural areas and the interior hinterlands want to be like the well-known athletes they see on TV.
As a result of all the money, fame, and glamour that comes with sports, many young people worldwide are now inspired and motivated to make a career out of sports.
There are, of course, downsides to over-commercialization. It’s now clear that the Olympics make money for everyone but the cities that host them. It turns into a White Elephant after a while, even if the infrastructure and other things are made to last.
In recent years, there has also been a lot of corruption and shady deals at major sporting events, which is bad for the consequences. As a result of the public’s attention to sports stars, more minor well-known athletes, especially those in less-commercialized sports, are being overlooked. This has led to a rise in the number of young people wanting to play niche sports.
Politicians and other well-known people are now in charge of sports organizations, which has led to a shift in attention away from sports and toward other things. There are a lot of significant sporting events now that are more about making deals and wheeling and dealing than about sports. This has sometimes hurt sports. In the end, the glitz and glamour of the game can make young players want to take advantage of their position.