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	<title>Simon Chadwick</title>
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		<title>The business of sport &#8211; predictions for 2010</title>
		<link>http://blogs.reuters.com/great-debate-uk/2009/12/31/the-business-of-sport-predictions-for-2010/</link>
		<comments>http://blogs.reuters.com/simon-chadwick/2009/12/31/the-business-of-sport-predictions-for-2010/#comments</comments>
		<pubDate>Thu, 31 Dec 2009 10:36:18 +0000</pubDate>
		<dc:creator>Simon Chadwick</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://blogs.reuters.com/simon-chadwick/2009/12/31/the-business-of-sport-predictions-for-2010/</guid>
		<description><![CDATA[- Professor Simon Chadwick, Director, Centre for the International Business of Sport, Coventry, UK. The opinions expressed are his own. - VIRAL OUTBREAKS, DRIVING PROBLEMS AND 1980s FASHION SET TO DOMINATE SPORT IN 2010 Sport in 2009 proved to be as enthralling off-the-field of play as it was exhilarating on it, with high profile cases [...]]]></description>
			<content:encoded><![CDATA[<p><img class="alignleft size-thumbnail wp-image-5066" src="http://blogs.reuters.com/great-debate-uk/files/2009/12/chadwick-150x150.jpg" alt="chadwick" width="150" height="150" /><a href="http://www.coventry.ac.uk/cu/simonchadwick" target="_blank">- Professor Simon Chadwick, Director, Centre for the International Business of Sport, Coventry, UK. The opinions expressed are his own. -</a></p>
<p><strong>VIRAL OUTBREAKS, DRIVING PROBLEMS AND 1980s FASHION SET TO DOMINATE SPORT IN 2010</strong></p>
<p>Sport in 2009 proved to be as enthralling off-the-field of play as it was exhilarating on it, with high profile cases of cheating, corruption and player transgression affecting a number of sports, accompanied by some crowd-pleasing, record-breaking performances.</p>
<p>At the same time, the business, organisation and politics of sport continued to excite and baffle many of us in equal measure, with talk of sports brands, &#8220;fit and proper people&#8221; and legacy constantly simmering in the background of the collective sporting psyche.</p>
<p>With the fragrance of CR9 still in our nostrils, and the taste of fake blood still in our mouths, what has gone before in 2009 therefore provides us with some isotonic sustenance for looking forward to ‘five things we might see in 2010’.</p>
<p><strong>Marketing Mania at FIFA World Cup 2010</strong></p>
<p><a href="http://www.fifa.com/worldcup/" target="_blank">The football World Cup hits Africa for the very first in June 2010, as FIFA makes good on a promise that Africa should host the tournament for the very first time.</a></p>
<p>There will no doubt be an ongoing collective debate about the positive (or, more likely, the lack of a positive) impact that South Africa’s World Cup will have on the communities in which it takes place, the country as a whole, and across Africa as a continent.</p>
<p>However, watch out for some interesting sub-plots too: the anticipation of an African team winning the tournament; intense debate about the use of goal-line technology; accusations of kick-backs, bribes and, match-fixing etc.</p>
<p>Watch out too for sport’s first major sporting competition for the &#8220;Twitter-generation&#8221;. Some of FIFA’s official partners have already made it clear that they will cease using traditional marketing techniques next summer and will instead adopt social networking as the basis for their World Cup marketing activities.</p>
<p>Expect therefore a series of consumer-focused, viral campaigns in which Twitter, YouTube et al. are employed to spread the corporate word.</p>
<p>Expect ambush marketers too to utilise new media to undermine the official sponsorships of FIFA’s partners, as rival brands seek to fool consumers into thinking they are the official sponsors of World Cup 2010.</p>
<p><strong>Respectable in the 80s: Formula 1 reminisces</strong></p>
<p>Back in the 1980s I was a huge fan of <a href="http://www.formula1.com/tickets_and_travel/?gclid=CLyt3eS7gJ8CFcts4wodik09KA" target="_blank">Formula 1</a> during an era when a Senna first entered the F1 World Championship, a legendary former World Champion made his comeback into F1, the Lotus team had two cars sat proudly on the grid, private teams in general outnumbered official manufacturer teams, Cosworth engines were used by a majority of cars, and a wind of change was starting to blow around the sport.</p>
<p>It seems entirely appropriate therefore that, just as music and popular culture are already giving a collective nod to the 1980s, F1 should do likewise.</p>
<p>In 2010, Ayrton’s nephew Bruno enters F1 for the first time; Michael Schumacher &#8220;does a Lauda&#8221; and comes back to a sport he doesn’t actually seem to have been away from; Lotus rises again, albeit in a somewhat different form to before; the big-guns have largely gone, replaced by the likes of Campos F1; Cosworth will find themselves in the majority once more; and we have a new guy in charge at the FIA – someone who was a ‘big-cheese’ in 1980s motorsport.</p>
<p>The net outcome: a return to F1 1980s style? Not quite gentlemen racers in goggles and shirt-sleeves, but expect much greater competition, a more unpredictable sport, less of a corporate juggernaut than F1 has been over the last decade, more privateer involvement etc.</p>
<p>Moreover, just as we witnessed the &#8220;youthful&#8221; Max Mosley and Bernie Ecclestone rocking the boat of hierarchical stability back in the 1980s, expect the FIA to come under similar such pressure in 2010&#8230;and do not discount a breakaway F1 World Championship just yet.</p>
<p><strong>Driving problems in golf (and other sports)</strong></p>
<p><a href="http://web.tigerwoods.com/index" target="_blank">Poor old Tiger Woods</a>: he has struggled to keep his balls on the fairway over the last year or two; he has had difficulty with his driving (balls and cars); plus, it would appear, he has also had some extra-marital difficulties too.</p>
<p>Let’s not forget too that in 2009, he lost a string of major sponsorships and endorsement deals both before and after what has now come to be known as his &#8220;transgressions&#8221;.</p>
<p>Yet Woods is not the first person or team to encounter driving problems in 2009; Nelson Piquet Junior, Flavio Briatore and the Benetton F1 team have all had their fair-share of problems in keeping it on the straight and narrow.</p>
<p>So too previously has the T-Online professional cycling team, which effectively disintegrated in the wake of a doping scandal a couple of years back. The common denominator in each of these high profile cases has been the role that sponsors, endorsement contracts and commercial partners have had in regulating the athlete behaviour i.e. the &#8220;transgressions&#8221; displayed by athletes which have resulted in major partners withdrawing their financial support from an athlete or a team.</p>
<p>In the coming year, we should therefore expect to see contractual terms relating to transgression being &#8220;beefed-up&#8221; as big brands seek to protect their multi-million pound investments from the kind of  &#8220;driving&#8221; problems we have recently witnessed.</p>
<p>It is also likely that we will see the emergence of a new, market-driven morality governing athlete/team behaviour.</p>
<p>This will not necessarily be driven by what is broadly considered to be socially or morally right or wrong, rather it will be defined by what is thought of as commercially acceptable or unacceptable.</p>
<p><strong>End of the line for secret agents</strong></p>
<p>For the first time in late 2009, English football’s Premier League released figures to show how much each club had paid to agents for transfer dealings in which they had been involved.</p>
<p>The media and the general public were aghast at the suns of money being paid out, but to no great effect as the surprise and criticism has rapidly petered out.</p>
<p>Expect several of the contentious issues surrounding agents to keep coming back though, especially as the Premier League’s disclosure of information will become an annual occurrence.</p>
<p>More significantly is the fact that we are still waiting for a European Union study of sports agents to be published. Initially commissioned in the last quarter of 2008, the study’s findings should have been released around mid-2009&#8230;.but there has been nothing yet.</p>
<p>Publication of the report is therefore imminent and it could spread shockwaves in 2010 through the agency business, as it could lead to the introduction of European Union sports agents’ regulations, and possibly even legislation that will govern and rule the agency business across the continent.</p>
<p>For an industrial sector that has been simultaneously praised for the valuable role it plays and derided for its exploitative nature, the times they could well be changing.</p>
<p><strong>East is East</strong></p>
<p>Remember a time when European sport ruled the world? This was a time grounded in the 19th century socio-cultural development of sport when some of the world’s most popular games were codified, stratified and professionalised.</p>
<p>And then came a new, 20th century sporting model, straight out of the United States, in which business, commerce, sponsorship, television and competitive balance took prominence.</p>
<p>But now, in the 21st century, both of these models appear to be subsiding into the background as a third age of sport emerges from Asia where &#8220;the nation&#8221;, public/private sector cooperation and a more holistic sense of the role that sport can play, are beginning to dominate.</p>
<p>We have already witnessed the emergence and growth of Indian Premier League cricket, the &#8220;Asianisation&#8221; of F1’s race calendar, and the strident ambitions of numerous Asian countries as they have sought to secure the right to host major international sporting events from the Olympic Games to the FIFA World Cup to F1 races.</p>
<p>What more of a barometer does one need of the changing international balance in sport than the re-emergence of the proudly iconic British F1 team – Lotus (see above). Except that Lotus is now Malaysian owned and will shift its operations to Malaysia once the 2010 season is over.</p>
<p>Avid sport watchers should therefore keep a very close eye over the next year on growing &#8220;Asianisation&#8221; across all sports, whether it be Asian ownership of English football clubs and US sporting franchises or the relocation of governing bodies and teams to Asia  &#8211; the sport that many Europeans and Americans know is going to be changing very soon.</p>
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		<title>Gates closing for commercial partners in sport</title>
		<link>http://blogs.reuters.com/great-debate-uk/2009/09/30/gates-closing-for-commercial-partners-in-sport/</link>
		<comments>http://blogs.reuters.com/simon-chadwick/2009/09/30/gates-closing-for-commercial-partners-in-sport/#comments</comments>
		<pubDate>Wed, 30 Sep 2009 00:12:20 +0000</pubDate>
		<dc:creator>Simon Chadwick</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://blogs.reuters.com/simon-chadwick/2009/09/30/gates-closing-for-commercial-partners-in-sport/</guid>
		<description><![CDATA[- Professor Simon Chadwick, Director, Centre for the International Business of Sport, Coventry, UK. The opinions expressed are his own. -This summer’s Tour de France was truly historic: the race finished without anyone having returned a positive dope test. Monumental! In a sport seemingly beset with drug problems, professional cycling appeared to have turned the [...]]]></description>
			<content:encoded><![CDATA[<p><a title="Simon Chadwick" rel="lightbox[pics2288]" href="http://blogs.reuters.com/great-debate-uk/files/2009/07/simon_chadwick_small2.jpg"><img class="attachment wp-att-2293 alignleft" src="http://blogs.reuters.com/great-debate-uk/files/2009/07/simon_chadwick_small2.jpg" alt="Simon Chadwick" width="150" height="148" /></a>- Professor Simon Chadwick, Director, <a href="http://www.coventry.ac.uk/researchnet/d/691">Centre for the International Business of Sport</a>, Coventry, UK. The opinions expressed are his own. -This summer’s Tour de France was truly historic: the race finished without anyone having returned a positive dope test. Monumental! In a sport seemingly beset with drug problems, professional cycling appeared to have turned the corner, started over, seen the error of its ways, cleaned up its act etc.Some weeks later however, it was back to &#8220;situation normal&#8221; when <a title="Astarloza tames mountains to win stage" href="http://uk.reuters.com/article/idUKTRE56K42620090721" target="_blank">Mikel Astarloza</a>, winner of Stage 16 in this year’s race, tested positive for <a title="Erythropoietin" href="http://en.wikipedia.org/wiki/Erythropoietin" target="_blank">EPO</a> use. To be honest, the only real surprise about this was that the media singularly failed to refer to the test result as &#8220;dope-gate&#8221; or some such other gating scandal.Yet gates elsewhere were swinging this summer like those on a disused farm caught in a tornado. The world of sport witnessed scandals ranging from &#8220;crash-gate&#8221; to &#8220;<a title="Dark side of rugby casts shadow in the sunshine" href="http://uk.reuters.com/article/idUKTRE58N03K20090924" target="_blank">blood-gate</a>&#8221; and beyond (even to situations where women were apparently men – gender-gate?). Crash-gate was the most serious of the summer&#8217;s attempts at self-implosion, according to some possibly the most serious sporting scandal of all time.Indeed, there was a sense amongst certain people that the 2008 F1 Grand Prix in Singapore will serve as a headstone on the grave of sporting credibility: we can no longer trust in or rely upon those involved in sport. <a title="&quot;Betrayed&quot; Briatore vows to fight back and win" href="http://uk.reuters.com/article/idUKTRE58O2XX20090925" target="_blank">Flavio Briatore</a> and <a title="Drivers seek to draw line under Renault F1 scandal" href="http://uk.reuters.com/article/idUKTRE58N21I20090924" target="_blank">Pat Symonds</a> have admitted their guilt and apparently done the decent thing, but others may well be complicit too.Just how could something so brazen, so dangerous, have remained secret for so long amongst such a small group of people? From whistle-blowing, to organisation culture, the use (and abuse) of power and the basis on which teams compete, the whole saga has been a sad, pitiful, mangled mess of managerial, organisational and commercial issues.Blood-gate was a lot less controversial than the Renault fiasco, if for no other reason than it was essentially a domestic drama and wasn’t therefore played out in the glare of international publicity. Moreover, while the likelihood of a physically painful outcome was much greater in the F1 case, Harlequins willingness to feign a physically painful outcome was at the heart of bloody matters down at The Stoop.Anecdotal evidence suggests that the club is not the only one in rugby that maintains a supply of blood capsules, but Harlequins got caught. As with the Renault team, those responsible at Harlequins have either done the decent thing; or else had the decent thing imposed upon them by the relevant authorities. Dean Richards has been the main target of disciplinary interventions because of his prominent role in the affair – strangely, and worryingly, Richards is a former police officer.While the RFU and the FIA both took a stance in respectively dealing with crashgate and bloodgate, the nature of the interventions was different, and has posed some interesting questions about how scandals in sport should be dealt with. In Renault’s case, the regulatory intervention was much less serious than it was for Harlequins, in part due to the team’s troublesome twins having already fallen on their gilded-swords.However, Renault suffered more as a result of the commercial consequences than did Harlequins; at a conference late in September, a senior member of the rugby team’s senior management team claimed there had been no problems with sponsors and partners. Renault on the other hand lost its main sponsor (ING) and a secondary one (Mutua Madrilena), both on the same day. The team will undoubtedly have lost money as the result, as well as a considerable measure of commercial lustre.Essentially, the two cases discussed here have raised an important issue: is sporting scandal dealt with more effectively by regulatory sanctions (as with Harlequins) or by market-led sanctions (as with Renault)?The latter is controversial, as many people will argue that money got sport into trouble, so can it really be expected to now get it out of the difficulties it faces?Moreover, it relies upon sponsors and partners terminating their contracts with immediate effect, when in fact adjustments and sanctions may move much more slowly as these sponsors and partners only refrain from renewing a contract once it is finished (which might be years in advance).Yet regulation appears to have a history of failure: despite everyone’s best efforts, doping still takes place, players pop blood capsules in their mouths and cars get deliberately crashed into walls by their drivers.As such, if money does indeed talk, then perhaps it is pay-back time and the very big carrot that used to hang from a too frequently ineffective stick should be used as the medium through which cheats are dealt with?</p>
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