This report will analyse the effects that staging a major sporting event can have on an area. It will examine whether events of this size generate inward investment, what different types of investment that occur and evaluate their lasting value. The reasons for the growth of sport as a global industry will also be discussed in terms of their effect on investment levels. After studying a number of major sporting events, both within the UK and from other parts of the world this report concludes that the extent to which events act as a focus for inward investment depends on the nature of the competition and the size of its audience.
Introduction The title of this report is: “To what extent do major sporting events act as a focus for inward investment? ” Before I can begin to explore this question there are several terms to define: What constitutes a major sporting event? A major sporting event is a competition involving a large number of competitors from a range of countries, gaining widespread media coverage. What is inward investment? Inward investment implies that, “Goods have been brought into existence which will allow a stream of other goods and services to be produced in the future”. – (Economics, A New Approach by A. G. Anderton) Key Questions/Issues
My report will be structured around the key questions shown in the table below. I will make ongoing conclusions as I explore each question in turn, using case studies covering a range of scales and locations, and draw them together when making my final conclusion. Key Question Case Studies used 1) Where does inward investment come from and is it sustainable? Athens 2004, Sport England, Silverstone, previous Olympic games, World Cup 2002 (Yokohama), World Student Games 1991 (Sheffield) 2) Increased investment in sporting events has come about due to the growth in the importance of sport which has become a global industry.
What has caused this growth? World Cup 2002 (Yokohama) 3) What different types of investment take place? Do they vary from one sporting event to another? World Student Games 1991 (Sheffield), Silverstone, Athens 2004, World Cup 2002 (Yokohama) 4) Are there examples of major sporting events that have not acted as a focus for inward investment? Do these events have anything in common that could explain why the inward investment was less? Embassy World Snooker Championships (Sheffield), BUPA Great North Run 1) Where does inward investment come from and is it sustainable?
To find out where inward investment comes from I will be using the following case studies: Athens 2004, Sport England, Silverstone. Athens 2004 “Athens 2004 balanced budget is 1. 962 billion Euros. (see fig. 1 for breakdown). To date Athens 2004 sponsorship revenues have reached approximately 448. 1 million Euro in total. This already breaks many previous records as Athens 2004 has covered its projected sponsorship revenues with only 7 out of forty potential Sponsors. Athens 2004 decided to have a limited number of sponsors, and to emphasise quality rather than quantity. ” (See fig. 2) – (www. athens. olympic. org)
Sport England “Government funding of sport in the UK is done so through an organisation know as Sport England. They are a council who meet regularly to consider applications for funding the development of sports facilities. They make their grants from National Lottery Funds and applicants are usually expected to show evidence that their scheme will benefit the community as a whole. ” – (www. culture. gov. uk/sport) Silverstone Silverstone is hoping that is will be able to gain financial support in this however as a report in December 2000 said; “Silverstone would probably need to provide other uses for the local community …
there is no reason why the track should not have a velodrome or artificial ski slope … there might even be the possibility of a watersport facility”. BRDC (British Racing Drivers’ Club) President, Sir Jackie Stewart wants the government to underwrite at least half the sum, believing that it is in the best interests of politicians to support the local motor sport industry so jobs and important F1 teams aren’t driven out of the country to more attractive destinations. – (www. octagonmotorsports. com)
The redevelopment of Silverstone will be funded by three parties. Firstly by Octagon, the US marketing group that owns the rights to the British Grand Prix for the next 15 years, Bernie Ecclestone’s Formula One management, which handles Grand Prix racing’s commercial affairs, and the BRDC, which owns Silverstone itself. To investigate whether the inward investment is sustainable I will be using the following case studies: Athens 2004, previous Olympic games, World Cup 2002 (Yokohama), World Student Games 1991 (Sheffield).
Athens 2003 * The Athens 2004 Olympic Games will leave a legacy to Athens, to Greece and to the world that will remain for generations to come. As Sydney, Atlanta and Barcelona have shown, there are many tangible, long-term benefits to hosting the Olympic Games. For the people of Greece, the legacy of the 2004 Olympic Games will begin with the economic benefits of investing in upgrades to the transportation infrastructure, telecommunications system, and the environment. These investments will benefit Greece for years to come.