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SEAN ENNIS Sports Marketing Sean Ennis SPORTS MARKETING A Global Approach to Theory and Practice SEAN ENNIS Sports Marketing Sean Ennis Sports Marketing A Global Approach to Theory and Practice Sean Ennis Department of Marketing University of Strathclyde Glasgow, UK ISBN 978-3-030-53739-5 ISBN 978-3-030-53740-1 (eBook) https://doi.org/10.1007/978-3-030-53740-1 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Limited 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland V I dedicate this book to my long suffering wife Liz for putting up with me during the development of this text. I would also like to dedicate it to some of my friends who support Huddersfield Town. They include: Richard and Finola Siddall; Robert, Paul and Ross Ewart; Clive Cheney, Alison and Laura; and “Uncle” Jim Prendergast. We have reached the heights of ecstasy and the lows of depression over the years. Acknowledgements I would like to thank Vicki Watson for the professional and committed way in which she organised the content into something that closely resembles a book. Without her contribution it is unlikely that it would have seen the light of day. My thanks also to Liz Barlow and Sophia Siegler for helping with the editing of the text. VII Contents 1 Introduction: The Sports Sector in a Global Context. 1 2 Sport and Its Role and Contribution to Society and Economic Development ��������������������������������������������������������������������������������� 9 3 Sports Governance ������������������������������������������������������������������������������������������� 39 4 Understanding Fans and Their Consumption of Sport. 75 5 Sports Distribution and Media Rights. 101 6 Formulating and Implementing Sports Marketing Strategy ������������������������������������������������������������������������������������������� 129 7 Ticketing Strategies in the Sports Sector ������������������������������������������� 153 8 The Sports Product and Brand-Building Decisions. 187 9 Globalisation of the Sports Product. 213 10 Managing the Sports Sponsorship Process . 245 11 Sports Marketing in an Era of Radical Uncertainty. 283 Supplementary Information Index ....................................................... 303 1 1 Introduction: The Sports Sector in a Global Context Contents 1.1 Introduction – 2 1.2 Sport in the “New Normal” – 2 1.3 The Global Sports Sector in Context – 3 1.4 Structure of the Book – 4 1.5 Chapter by Chapter – 5 1.5.1 Chapter Summaries – 5 1.5.2 Case Studies – 7 Electronic Supplementary Material The online version of this chapter (https://doi.org/10.1007/978- 3- 030-53740-1_1) contains supplementary material, which is available to authorized users. © The Author(s) 2020 S. Ennis, Sports Marketing, https://doi.org/10.1007/978-3-030-53740-1_1 2 Chapter 1 · Introduction: The Sports Sector in a Global Context 1.1 Introduction lar blogs to stimulate discussion and provide 1 opinion on the latest concepts and theories. Welcome to this text book on the subject of sports marketing. I hope that you enjoy the content and more importantly gain a deep 1.2 Sport in the “New Normal” understanding of the issues and challenges that face sports marketers working in this The term “new normal” has featured promi- exciting industry sector. nently throughout 2020. The message behind I use the word “exciting” because sport it indicates that business and society will need engenders a number of different feelings and to grapple with new challenges and problems, emotions among many people world-wide. post-Coronavirus. Passion, enthusiasm, fanaticism, euphoria The sports sector is no exception. Prior to and despair all feature to a greater or lesser 2020, many sports exhibited varying degrees extent in the typical sports fan’s lifestyle. of success. These ranged from increasing It is also a sector of industry that is grow- revenue streams and more global popularity, ing in terms of employment opportunities. through to more modern stadia. Generally, Increasingly, sports administrators and sports within the context of the most popular sports property owners seek out suitably qualified such as football, rugby and cricket, sports individuals to work directly in this industry. property owners invested in enhancing the Hopefully, this text will inspire you to take quality of the fan experience and engagement. any such opportunities. Increasing revenues led to higher salaries. Many of you may eventually end up work- Some critics have argued that ultimately this ing as brand managers, digital marketing is not good for the overall sport. As we shall executives, advertising executives, media mar- see later in the text, many sports organisations keters or in the area of data analytics. While and clubs engaged in practices that defied the you may not be employed directly by sports conventions of prudent business management. clubs, bodies and sports organisation, you While the sport may have generated extremely could find yourself playing a significant role large amounts of cash that flowed into the in terms of working with sports bodies. organisation, salaries, transfers and agents’ fees This initial chapter attempts to place the have led to even more cash going out. sports sector in a global context. We begin by Such a business model is not sustainable in considering some of the key trends that have the longer-term. taken place over the past 15–20 years or so. The coronavirus crisis brought immediate We then consider the key themes and problems that challenged the efficacy of exist- dimensions that we address in the subsequent ing business models. Within weeks, sports chapters in this text book. property owners were pleading for support As you work your way through these top- from respective governments. While the top ics, I would like to add a cautionary note. clubs were in a better position, the cancella- The sports sector, as we shall see, is a vibrant, tion and postponement of games, tourna- dynamic and at times, an unpredictable indus- ments and events, created a cash crisis. try. As I write these introductory notes, we are Will sport recover? I have no doubt that it currently in the middle of the Coronavirus cri- will. However, it may take a number of years sis. Sport, in tandem with all areas of business before we get back to a situation that existed and society in general is undergoing change. before the crisis. By the time you read this text, hopefully, we As of June 2020, sports such as football, will have emerged from the worst aspects of horse racing and snooker made tentative steps its influence. to re-start operations. Working with govern- We should also note that it is critical for ments, the “new normal” featured games us to keep up with the latest developments being played behind closed doors, with no and research in the sports sector. As part of fans allowed in, due to restrictions such as the support for this text, I will generate regu- social distancing. 3 1 1.3 · The Global Sports Sector in Context The media, who bought the rights to show China has invested heavily in devel- such games, in many cases refused to make oping domestic football and increasingly the original agreed payments, if the events many major football teams in Europe have did not take place. Even when they did, they been bought out by Chinese, Thai and paid a reduced fee to take account of the fact Indian conglomerates. that they were getting a “diminished” sports Who would have suggested 15 years product. ago that Qatar would be awarded the Does this raise the prospect of reduced rights to stage the 2022 World Cup? media rights payments in the future? Who 5 The emergence of eSports knows? eSports has grown exponentially over Overall, some commentators suggested the past 15 years or so. We examine this that global sports revenues could decrease by sport in more detail later in the book. as much as fifty per cent. The major European Technology has played a significant part football teams, between them, could lose over in its growth. Among young people, par- £3 billion. ticularly those in the fifteen to twenty-five The reality suggests that many sports had bracket, it has changed the concept of to face up to the unpalatable fact that their sports participation and consumption. original business models might no longer The notion of physical exercise has, to work in a post-Coronavirus environment. The some extent, been overtaken by the seden- “new reality” began to bite, and bit hard. tary engagement with electronic games. 5 Social media and digital platforms We have witnessed other transforma- 1.3 The Global Sports Sector tive developments, particularly in terms in Context of how fans engage with their favourite sports, teams and players.
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