Ford and General Motors operated under a generic business model: sell as many cars as possible with the highest profit margin possible. In the end General Motors and Ford are competing to sell a product. Have no interest, and in fact would be illegal, to cooperate among themselves to ensure that both would be more profitable. Any traditional business we serve to illustrate the topic at hand: the business of sport is and has always been, different, as noted Lewis.
In virtually every business sport, competitors must cooperate to become profitable. Many years ago, began to appear when the team sports, a hat was passed among the spectators to raise money. A percentage of the proceeds were distributed among the muddy and sweaty players from both teams, and men (almost always a man) who organized the event had a higher percentage. All were concerned that the cake was to spread as large as possible, but even cooperate to get the widest audience in the field competed ruthlessly to achieve victory. After the game all returned to their homes and their jobs. This competitive-cooperative model is now standard in the National Football League (NFL), Major League Baseball (MLB), National Basketball Association (NBA), National Hockey League (NHL) and other professional sports leagues and events around the world.
Some were visionary in this field and saw how to exploit tagged as amateur athletes organizing sporting events and keep the profits. The money never reached the hands of amateur athletes. The value and necessity of amateur athletes have even been idealized by Greek mythology and the Victorian concern for the social classes. This concept of amateur sport was the reason for the creation of the National Collegiate Athletic Association (NCAA) and the Olympic Games. The modern Olympics were founded by Baron Pierre de Coubertin in 1896 and a few years after several university rectors, encouraged by President Theodore Roosevelt, the NCAA created. Applying the concept of gain and amateur sports competitions were held among the students, going to stop benefits at the hands of universities. In terms of labor, in much of the sports industry has found a way to avoid paying the workers.
But winning at all costs is not allowed in all circumstances, especially if the cost means more than money. Currently the business of sport has a set of rules and regulations, which may even, in many situations, have the force of law. For example, although it could be argued that steroids and dietary supplements can help athletes to improve, most companies have banned their use sports.
Profit at any cost is also a problematic concept. Several studies show that if you enter a team player in addition to white, the number of fans will increase more than if the player is in color. And most businesses are more interested in sports to win on racism, is not it?
As these firms grew in importance sporting, new players are beginning to incorporate the industry: radio, television, advertisers, licensees, sponsors. To reach an agreement appeared lawyers and representatives. The business is no longer limited to the competition. The expanded business model. The main source of income is no longer limited to the recovery obtained by passing the hat or the sale of tickets among fans.
When it began to think of sport as a business, it was clear that this was an entertainment, in fact it applies business rules and different laws. Not all involved accepted the idea that this business is more than just a competition. There is still debate on whether the business of sport should be treated differently.
Fields and stadiums where the teams played or wanted to play also became an important part of the business. Oddly enough public money has been used to build many of these facilities. General Motors and Ford can only dream of obtaining such assistance from the state coffers. Rarely occur public battles between cities to build the biggest factory to accommodate an automobile manufacturer.
Athletes also realized that this was more than just a game and, like the rest of the working class, unions set up sports. That it is somewhat ironic, since in some league average wages exceed 1,000 billion dollars, and later even 2,000 million annually. Undoubtedly, many of the unionized workers are world’s best paid athletes in professional leagues.
There are also social issues that affect only the sports industry. These are manifested in sports more than any other area, because this business is subject to constant scrutiny. Sports journalists covering every aspect of parties, looking for that unique feature, the story that goes beyond what is happening in the field, track or ice.
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