Businsess of sport :in regards to spanish soccer

Ses 7a

Sports&SocietyXavier Carmaniu Mainadé

Barça & R Madrid the clubs with the most fans in the worldHow 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.

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.

The most important ones

All of these corporations have economic interest in sports. Why????????????

BIG COMPETIONS

Super Bowl NFLWorld Cup (soccer)

Play-off NBAChampions League6 Nations Rugby

Tenis (Wimbledon)

It’s a meeting point for many factors:

EconomicalCultural

MediaSport

Actively participate

• Sport organizations.• Business

organizations.• Media groups.

News Corporation, a good example

Owner: Rupert Murdoch.In 1992 News Corp. buy the rights to exclusively broadcast the Premiere League (England)

Broadcasting rights and spanish soccerAfther 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.

Manchester United1997: the first

european club to be organized like an Entertaintment Enterprise.

International Expansion due to the internet:Virtual shop.Virtual Museum.Interactive games.

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

Soccer Sponsors in Spain

Sponsors prefere soccer the most (then comes: golf, basketball).

FCB and RMFC are useful to introduce new brands in Spain.

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.

Barça & Madrid trips

Now clubs have multimediaBig 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...

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).

Main objective

Increase earnings with their products.

The biggest clubs trying to become new Entertaintment Enterprises.

Advantage of “normal” companiesThe 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.

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=

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