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The 'Business' of Sport

1/22/2022

2 Comments

 
When we discuss business, we most often use revenue streams to exemplify it. Where does the organization derive its revenue from? Who are the consumers and what sources of revenue exist? Understanding those questions allows those interested in sport business and management to better understand the business and decision making process in sport.

What we learn about the business of sport is the importance of broadcasting and the impact this has on the operations of the organizations. If games are played, and broadcast, then this is the largest source of revenue to a rights holder. When looking to grow and expand a sport, it is vital to have a fan base that can be reached with broadcasting interest in order to generate the most revenue. We also see that organizations that are cavalier with borrowing money or are dominated by a single revenue stream are at greater financial risk. Sport managers need to understand the importance of diversification of revenue and the importance of cultivating an audience to achieve greater financial independence.


The Business of Sport
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2 Comments
Steven Patton link
10/17/2022 09:48:16 am

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Richard Giles link
10/20/2022 01:40:00 pm

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