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Sports&soc ses 07a business&sports

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Sports&soc ses 07a business&sports

  1. 1. Ses 7a Sports&Society Xavier Carmaniu Mainadé
  2. 2. Barça & R Madrid the clubs with the most fans in the world  How did they achieve it?  Winning championships.  Big time players: Cristiano Ronaldo, Neymar (before: Beckham, Ronaldinho…)  Sponsors.  Socially Responsible Business.  Result: earnings more than 400 million €.  Not just sport clubs  Multinational Entertaintment Business Organisation.
  3. 3. What are they?  They are part of cultural industries: television, film, music, press, internet…  They have many diferent types of activities happening at the same time. (diverse investments).  They have businesses around the world.
  4. 4. The most important ones All of these corporations have economic interest in sports. Why????????????
  5. 5. BIG COMPETIONS Super Bowl NFL World Cup (soccer) Play-off NBA Champions League 6 Nations Rugby Tenis (Wimbledon) It’s a meeting point for many factors: Economical Cultural Media Sport Actively participate •Sport organizations. •Business organizations. •Media groups.
  6. 6. News Corporation, a good example Owner: Rupert Murdoch. In 1992 News Corp. buy the rights to exclusively broadcast the Premiere League (England)
  7. 7. Broadcasting rights and spanish soccer  Afther 1990’s the clubs earned money due to the competion to obtain broadcasting rights.  Those earnings generated more expenses.  However much money you have, your expenses grow.  There is inflation in the purchase of players.  After 2005 TV was no longer the most important.
  8. 8. Manchester United  1997: the first european club to be organized like an Entertaintment Enterprise.  International Expansion due to the internet:  Virtual shop.  Virtual Museum.  Interactive games.
  9. 9. ManU in the 2000s: New comercial agreements:  Vodafone (wi-fi for fans).  Colaboration with NY Yankees.  Agreement with Terra Lycos to broadcast ManU content outside of the UK through the internet.  Socially Responsible Business: agreement with UNICEF. All of these aspects increase earnings
  10. 10. Soccer Sponsors in Spain  Sponsors prefere soccer the most (then comes: golf, basketball).  FCB and RMFC are useful to introduce new brands in Spain.
  11. 11. How do they earn money?  Asian Telecomunication Enterprises:  EtiSalat (United Arab Emirates): give money to FCB Foundation and FCB give media content to EtiSalat.  Qatar Airways.  Online betting (Bet Fair, Bwin).  Trips to Asia and USA: is not the most popular sport but there is incentive to do these trips for the purpose of the Entertaintment Enterprises.  Looking for new business opportunities:  FCB + NFL (Barcelona Dragons), + MSL (failed attempt to create a franchise in Miami in 2009).  RMFC + NBA: Failed contact in 2006 in an attempt to create a european league.
  12. 12. Barça & Madrid trips
  13. 13. Now clubs have multimedia  Big clubs from La Liga have their own media channels:  Web, Facebook, Twitter, SMS, Radio, Tv…  FCB y RMFC are the only capable ones to sell content on an international level: satellite, cable (USA).  Also they have new sectors : videogames, mobile apps...
  14. 14. Expansion of coporation values Socially Responsible Business projects:  International Cooperation.  Charity sponsorships.  Soccer schools on a global scale:  RMFC: 10 schools (Africa, America, Israel, Palestine).  FCB: 12 schools (Africa, India, America, Catalonia).
  15. 15. Main objective  Increase earnings with their products.  The biggest clubs trying to become new Entertaintment Enterprises.
  16. 16. Advantage of “normal” companies  The consumer is more loyal because there isn’t an alternative: this guarantee minimal earnings so that the club can continue working.  If you are a Barça fan you will never be a fan of RMFC.
  17. 17. More information:  GINESTA PORTET, X.., "El fútbol y el negocio del entretenimiento global. Los clubes como multinacionales del ocio" en: Comunicación y Sociedad, vol. XXIV, n. 1, 2011, pp.141-166. http://www.unav.es/fcom/comunicacionysociedad/es/articulo.php?art_id=383

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