Sport Event Portfolios

1Sport events are concerned with the benefits that they provide the community, and the economic benefits are often touted to support their hosting. Unfortunately, these economic impact estimates have a long history of controversy and inaccuracy in their reporting (Howard & Crompton, 1995). The main objective is to determine the net economic change that results from spending attributed to an event or facility. This net effect is the added benefit to that community that would not exist in the absence of the event (Brown, et. al., 2021). According to a prominent sport tourism organization, the two main rationales for bidding on, and hosting, sport events are economic impact and hotel room nights (SportsETA, 2021). Therefore, it is important to accurately assess the benefits that accrue to the host community as a result of hosting.
Since successful hosting is dependent upon the resources available in the host community, ten drivers have been identified to assist communities in determining the best use of available resources (Agha & Taks, 2015). Individuals and communities should focus on maximizing the benefit drivers and avoiding the cost drivers.

Since communities typically host more than one event, using a portfolio framework is an appropriate way to determine the mix of events based on the community resources and the myriad events and activities that occur in a typical year (Salgado-Barandela, Barajas, & Sanchez-Ferndandez, 2021). When using this portfolio framework, some factors for success include strategic planning for the hosting of multiple events, determining and communicating the benefits of hosting events to stakeholders, participation from stakeholders and inter-organizational relationships to improve collaboration synergies (Ziakis & Costa, 2011).

Given their importance, estimating the benefits is an important element in decision making and evaluation. Since the typical evaluation relies on isolating visitors to the area who would not have come in the absence of the event and their spending, this is the usual starting point for assessment. Typically, the event benefits are discussed, but the costs are excluded from assessment which artificially inflate the overall benefits. The costs have to be included in an assessment in order to determine the best use of the available resources. Some of the factors related to accuracy are outlined by Brown, et. al, 2021.

Utilizing this framework can assist communities, event organizers and others to host events that maximize the benefits to the area while being cognizant of the costs associated. Beneficial events are ones that rely on the existing resources (facilities, people, hotel capacity, restaurant capacity, recreation, etc) and align with the strategic goals of the community to optimize success. Hosting events can be a valuable addition to the community if the merits are properly assessed and the benefits and costs are evaluated.

References
Agha, N., & Taks, M. (2015). A theoretical comparison of the economic impact of large and small events. International Journal of Sport Finance, 10(3), 199-216.
Brown, M. T., Rascher, D. A., Nagel, M., & McEvory, C. D. (2021). Financial Management in the Sport Industry (3rd. Ed.). Routledge: New York, NY.
Howard, D. R. & Crompton, J. L. (1995). Financing Sport. Fitness Information Technology, Inc: Morgantown, WV.
SportsETA. (2021). Sports Events and Tourism: State of the Industry Report.
Salgado-Barandela, J., Barajas, A., & Sanchez, Fernandez, P. (2021). Sport-event portfolios: An analysis of their ability to attract revenue from tourism. Tourism Economics, 27(3), 436-454.
Ziakas, V. & Costa, C. A. (2011) Event portfolio and multi-purpose
development: Establishing the conceptual grounds. Sport Management Review, 14(4), 409-423.
Ziakis, V. & Getz, D. (2021). Event portfolio management: An emerging transdisciplinary field of theory and praxis. Tourism Management, 83, 1-15.