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The Temporary Replaces The Timeless

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The Temporary Replaces The Timeless

  1. 1. “The Temporary Replaces the Timeless” An examination of the commercialization of sport<br />Brad Holloman<br />LSM 461: Senior Seminar<br />April 27, 2009<br />
  2. 2. Overview<br />Introduction<br />Loss of a Community Feeling<br />No Longer an Experience<br />Exploiting Amateurs<br />No Longer Recession Proof<br />Conclusion<br />Discussion<br />
  3. 3. A Commercialized Society<br />Companies advertise anywhere to reach a target market <br />Ex. Roadside Billboards, Public Transportation units, and bathroom stalls<br />Avoid the use of traditional television spots<br />Technology has changed advertising<br />Easier to avoid traditional television ads<br />New methods to reach target markets<br />“The most commercialized sector of popular entertainment is the result of the merger between sports and product promotion” (McAllister, 1998)<br />
  4. 4. Advertising Through Sports<br />With in-game promotional opportunities and the television exposure, companies have penetrated into the world of sports<br />65% of total sponsorship spending is in sports<br />$4.7 billion spent during United States national sports broadcasts<br />Athletes signing multi-million dollar contracts to endorse products<br />Companies attaching themselves to leagues, teams and players as official partners<br />
  5. 5. Loss of a Community Feeling<br />Commercialization of sport facilities<br />Multi-million dollar naming rights deals<br />Numerous stadiums across the country in all leagues and markets<br />The arena or stadium was once a “third place” away from home and work<br />Since 1945 arenas and stadiums were linked to the city and a place for fans to create memories<br />The naming of a stadium reflected the relationships between a team, a city, the players and the fans<br />
  6. 6. Loss of History and Tradition<br />Children grow up knowing only the new name of a stadium<br />People are unaware of the old stadium that includes history, tradition and rituals <br />Risk of losing the identity of the team and fans including the history and memories created on the field<br />“The team may be ours in our hearts and souls, it is ‘theirs’ in their boardrooms and on their balance sheets” (Boyd, 2000)<br />
  7. 7. Positives of Naming Rights<br />Average naming rights deals provide over $1 million per year<br />Relieves the need for taxpayer funding on new facilities that anchor new city developments<br />Allows owners leverage to ask for new stadiums and other capital expenditures<br />Provide team incentives<br />
  8. 8. No Longer an Experience<br />Stadiums built on “sacred soil”<br />With the fervor and attitudes exhibited by fans sport has a religious quality<br />Relationships with teams, players and coaches aren’t formed because of the continuing change <br />With corporate logos everywhere, sport is no longer a mythic version as an important, pure, pastoral, cultural leisure activity<br />It is now a just another business located in a city<br />Fans realize that buying a ticket, merchandise or game-day hot dog is a business transaction<br />Memory places do not consist of only names and other elements that make the experience special<br />As other elements in a stadium work together they send a message that sport and play are a secondary concern and sport is now just a business<br />
  9. 9. Exploiting Amateurs<br />Disconnect between big-time college sports<br />Michigan is not competing with Ohio State commercially. They are competing with the Detroit Lions for broadcasting rights and partner deals<br />James Duderstadt, University of Michigan President<br />Athletic Departments have experienced cuts from federal and state funding sources<br />All about winning mentality has lowered the standards of the university and admission standards<br />Athlete experience is compromised<br />College athletics sold their soul to television<br />Coaches were being paid more by endorsement deals than university salaries<br />
  10. 10. Tostitos Fiesta Bowl<br />“Frito-Lay is excited to bring you the 2007 Tostitos BCS National Championship Game. We’re even more excited to commit ourselves to helping you live a healthier lifestyle”<br />The game is secondary to the promotion of a new “heart healthy” oil used in chips<br />Less than 20% of screen time without a promotion during the telecast<br />5 times the graphic advertising and more than 7 times the signage as either the Super Bowl or Rose Bowl<br />Different promotions throughout the game<br />Ford Keys to the game<br />Cingular All American Player of the Year<br />Aerial Coverage presented by Budweiser Select<br />Tostitos campaign surrounding the event<br />“Tostitos Fiesta Bowl: College Football’s Biggest Party”<br />
  11. 11. Advantages to Collegiate Sport Commercialization<br />New streams of revenue for universities and athletic programs<br />Ex. Funding to support 800 scholarships at the University of Michigan<br />Revenues to support fully funded varsity athletic teams<br />Equipment, Travel Costs, etc.<br />Only 8 teams operating with a budget surplus<br />Commercialization covers funding cuts from other organizations<br />
  12. 12. No Longer Recession Proof<br />Dependence on sponsorships is at unprecedented levels<br />Teams are struggling in the current economy<br />“The worst economy since the Great Depression is settling over the fields, courts, tracks, luxury suites and boardrooms” (Sandomir & Belson, 2009)<br />Because of the dependence on corporations, sports are struggling when the companies struggle<br />Tournaments being dropped form the LPGA, rosters being cut and teams merging<br />Sports are no longer just about the game and ticket sales, but dependent on attracting corporate sponsors<br />
  13. 13. Conclusion<br />Commercialization has resulted in the loss of a community feeling, traditions, history and the fan experience<br /> Amateur athletics are being exploited by corporations trying to reach target markets<br />Sports are no longer recession proof and depend on the success of corporations<br />There have been positives to commercialization<br />
  14. 14. Works Cited/References<br />(2009).Super Bowl XLIII: A new kind of game. Street & Smith&apos;s Sports Business Journal. 11, 4-30.<br />Boyd, J. (2000).Selling home: Corporate stadium names and the destruction of commemoration. Journal of Applied Communication Research. 28, 330-346.<br />Herbert, I. (2005, September 21). Selling their soles: The commercialization of college sports. The Michigan Daily,<br />McAllister, M. P. (1998).College bowl sponsorship and the increased commercialization of Amateur Sports. Critical Studies in Mass Communications. 15, 357-381.<br />Sandomir, R. (2009, March 22). In economic downturn, corporate ties put bind on sports. The New York Times.<br />Schor, J. B. & Ford, M. (2007). From tastes great to cool: Children’s food marketing and the rise of the symbolic. Journal of Law, Medicine & Ethics, 35(1), 10-21<br />Wieberg, S. (2009, April 1). NCAA, colleges pushing the envelope with sports marketing. USA Today.<br />
  15. 15. Thank You<br />

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