Sports Economics

Topics: FIFA World Cup, International Cricket Council, Cricket World Cup Pages: 3 (907 words) Published: September 3, 2012
Bryan Parmer
Sports Economics and Marketing

Sports Economics
There is a clear need for understanding the nature of the sports economy and its value to the economy as a whole. Sport has been a major source of revenue for the economy of several countries, and the sports economy that supports sustainable development. A unique aspect is that the contribution of the sports to the economy does not depend on the geographical characters. Almost all the other sources of an economy mainly rely on the geography of the nation or region. If we look at the sport sector of America, the big four sports leagues – basketball, football, baseball, and hockey – together they’re probably somewhere on the order of $10 to $15 billion in revenue. As Andrew Zimbalist writes, If we begin to add some of the other events outside the orbit of these four major games, (i.e., golf, auto racing, college sports) we see that the figure doubles to somewhere around $30 billion. Even though, it is a small part of the economic contribution to the world’s largest economy (America) that’s almost $11 trillion in size, the sport sector plays a significant role in supporting the economy of developing countries. Sports, potentially, have a very important role to play, which is why people support them. In America the sports economy accounted for 434,000 jobs and a payroll of $12.9 billion. And the numbers didn’t include motor sports, another big tourist attraction. It was expected that the Football World Cup, which began in Germany last year, would generate $1billion in advertising revenue, according to leading industry observers, making it one of the most lucrative sporting events of all time. Media agency Zenith Optimedia in Germany said the amount spent by the world’s leading companies on TV commercials, press advertisements and outdoor advertising would break the $1billion barrier for the first time. Zenith’s head of publications, Johnathan Barnard, said, ‘The fact the...

References: Barnes, Peter, Economics 3.0, A Guide to Sports Economics, San Francisco 2006
Marx, Karl, Engels, Friedrich, 2004, The Importance of Sports
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