Friday, December 28, 2007

The Business of Sport

It is not uncommon, these days, to hear teenagers from all corners of the globe to discuss – especially after a weekend – the foibles and fortunes of their favourite football club. Such discussion can sometimes become heated argument as personal biases and preconceived prejudices take over rational debate. This is now a naturally occurring phenomena all over the world, and though nothing can compare with the beautiful game, snippets of conversations on international cricket matches, NBA basketball games, F1 Racing and even golf, can be heard as one walks down corridors in schools all over the world.
What has caused this global phenomenon? As a teacher of Business Studies and an avid follower of sport myself, I thought I might consider an analysis of sport in order to make sports-crazy teenagers use a lateral approach in understanding Business Studies – from the perspective of what is, in my opinion, one of the fastest growing commercial activities in the world.
Fastest-growing? Well, though the sports industry has not have the prodigious growth rate of the Internet, it is – along with tourism – a rapidly growing industry that is not only gaining popularity on the global scene, but one that is constantly evolving to adapt to changing personal attitudes, new-fangled technologies and modern lifestyles. Yes, sports is big business and the sport industry has contributed a greater margin to the global GDP than ever before. In other words, it is a global industry that fosters a range of economic activity, providing employment – and entertainment – across all social strata globally.
Consider some of these facts regarding the impact that the business of sport has had – and continues to have – on society:
 In tandem, the major leagues in the States – NFL, NBA and MLB – garner around $ 12 billion in annual revenue. That figure is miniscule in comparison with the total market worth of the sports industry in the United States: $ 425 billion, which means that the sports industry is just smaller than the food retailing industry in the USA.
 Ticket sales alone at the 2003 Cricket World Cup in South Africa totaled US $ 11.2 million. That figure is estimated to shoot up to US $ 40 million in next month’s World Cup in the West Indies.
 Sports media is a multi-billion dollar domain within the broader field of media and communications. Think ESPN and Fox Sports. Think Supersport here in Africa.
 Every match in the 2006 World Cup in Germany featured footballs from Pakistan, which exported around 56 million footballs for US $ 185 million. Not surprising when approximately 80% of the world’s footballs comes from Sialkot, a small town in Pakistan which is known for its cottage industry.
 Nike Inc – possibly, the most recognizable sports brand – earned revenues to the tune of US $ 15 billion for the fiscal year 2006.
The list is endless and, on careful thought and research, you are likely to come up further examples of the impact that sport has had – and continues to have – on society. Look around, for that matter, and you will notice that sport on become part of your wardrobe. You might not wear that Ronaldo football shirt that your mate wears; you might not style your hair the way Beckham does, you might not wear the national colours of your country when you hang out with your friends, but I am quite sure that you own a pair of sports shoes just because it looks good! Which brings me to my first reason for the phenomenal growth of the sports industry – fashion. Sport has become trendier by the day, and this has led to sports merchandising contributing a big part to the revenues earned by the global sports industry. Teenagers find it fashionable to sport the football shirt of their favourite star or don their country’s (club’s) colours on that casual day out. However, sport has been fashionable – and of great economic impact – because of two basic business concepts: interdependence and quality.
Let me deal with interdependence first. According to basic Business Studies, this is the mutual dependence on each other enjoyed by all members of society. In my opinion, both – sport and the media – are highly interdependent on each other, and that is why they have both grown prodigiously in recent times. Ted Turner and Rupert Murdoch are media moguls and there empires owe a great deal to the sport industry itself. Sport, in turn, has become a global industry thanks to the far-reaching tentacles of Mssrs Turner and Murdoch. Yes, if sport is a global industry, it is because people from different corners of the world are able to enjoy what was once a local happening: the Premier League, for instance. No wonder then that both industries are multi-billion dollar revenue earners! In fact, thanks to the media and sport, people in small cottage industries earn a living, maintenance staff at stadia in developing countries can take home a reasonable wage, a budding entrepreneur can open up his own sports shop, a journalist can eke out a living and an accountant at an Astroturf manufacturer can grin at this pay packet. Interdependence again! Sport provided employment and employment makes sport possible.
In fact, sport has created a wider range of jobs that youngsters today can look forward to: sports psychology, sport medicine, sport technology, sport statistics, sport advertising, sport management, sports event management, sport marketing, to name a few. No wonder then, that Dubai, once oil-rich, has diversified into tourism and, of late, into sport tourism. The government there knows that investment in sport is definitely going to bring in revenues in more ways than one.
Quality! What quality does sport possess? What is the unique selling point that has made its popularity soar. In my opinion, it is the sheer value of live entertainment. There are no retakes here; it is sheer drama that can literally take you to the edge of your seat more times than one. It is drama in real life. And, this I feel is sports’ unique selling point. It gives entertainment value; which is why a live sports event can take precedence over a Tom Cruise blockbuster or that mystery series Mother has been religiously following all month long. The fact that it provides sheer entertainment in live stadiums or sedate living rooms is the main reason sport has grown in popularity all over the world. And, in trying to maintain its entertainment value and enhance this USP, specific players in the sports industry have tried to help sport evolve with time and adapt with time. No wonder then, that sport has become more colourful, entertaining and exciting. It has managed to retain its entertainment value to adapting to an ever-changing global environment.
Yes, sport is big business. One that is growing at a steady pace, entertaining and employing people all over the world. One that is contributing to the economic activities of almost every single country the world. One that is benefiting as many industries as it benefits from them.

TEACHING: AN EXERCISE IN PUBLIC RELATIONS AND HUMAN RESOURCE MANAGEMENT

A few years ago, I was having a conversation with some students of mine; the enterprising youngsters – two years away from gaining entry into universities around the world – were debating the relative worth of a spectrum of occupations. Being the elder at the “roundtable”, I moderated the discussion and felt content to sit back and listen to the views of a group of enthusiastic and opinionated young men and women. Through the content of their talk, I had the vicarious thrill of listening to tomorrow’s acoustic engineer, observing the architect of another generation, assessing the potential businesswoman, being patient with the pedantic surgeon-to-be and picking a bone of contention with the lawyer of the future.

However, while bringing the conversation to an end I told them I was of the opinion that while all of their prospective careers looked lucrative and rewarding, mine – teaching – was the most difficult of all jobs. Not having time to go into details, I smiled and spoke out: You admire monuments by famous architects, you praise the inventions of great scientists, you marvel at the technological milestones that engineers have propelled us past, you are grateful for a doctor’s skill, you are envious of a tycoon’s acumen…the list goes on! My question is this: who built these people who built – and keep building – this world of ours? Wasn’t a teacher somewhere along the line?

People do have their own slant on things and I am sure, time permitting, my students would have argued for a doctor’s enduring patience or a pilot’s immense responsibility. Nevertheless, I firmly believe that teaching is among the most demanding jobs and is one that is a lifelong exercise in public relations and human resource management.

Wherein lies my argument, you may ask? In the first place, teaching is a labour-intensive job that requires critical thinking. And then, more than any other job, it is immensely people-oriented: you deal not just with sensitive souls, nervous neophytes or tentative teenagers; you also deal with demanding parents and inquisitive guardians. In short, you deal with people from all walks of life; and with globalization the prevailing trend, you traverse the globe in your own classroom! Yes, you deal with the ambitious Indian doctor whose precocious child feels overwhelmed; you converse with the conservative Arab mother whose daughter is ambivalent about tradition; you make suggestions to the hapless Australian engineer whose troublesome son exhibits strains of technical wizardry; you deal with people of all temperaments from all places. And most of all, you deal with young lives! You deal with ideals of the past, ambitions of the present and dreams of the future. In short, a teacher’s job description involves building the people who build the world!

Am I glorifying teaching? Rather, I feel I am actually painting a reasonable picture of a difficult profession. And, as a teacher, I feel there have been times when I have – wittingly or unwittingly – fallen short of my job description. Yet, it is a job I enjoy. I enjoy the banter of classroom discussion as much as I enjoy the achievement of great results. I take pleasure in talking things through with the troublesome teen as much as I take pleasure in helping precocious talent fulfill potential. I benefit from watching the world walk into my classroom as much as I benefit from giving my “citizens” a view of the world! Yet, at all times, I tell myself: teaching is an exercise in public relations and human resource management; make sure you do it well. Study the pupil and find him his niche, study the parent and allay her grief!

Yes, teaching is not just the imparting and dissemination of knowledge. It requires critical thinking, perceptive analysis, levels of patience and, most importantly, people skills. It requires just the right amount of careful prodding to get the star pupil thinking outside the box; it requires the right dose of “carrot and stick” to get the indolent idler moving; it requires the right amount of understanding to quell the ambitious parent’s fears and the right amount of consideration to empathize with a family’s demands for excellence.

Am I still glorifying teaching? I think not; for when I sat back and pondered on an appropriate topic for an International Business Review, I felt that it would be nice to render a tribute to the profession I have chosen. For, in this day and age of globalization, teaching is one of the most international jobs around and an unending exercise in public relations and human resource management: a daily work out in which motivation and leadership meet culture, character and community.