Freshman Essay
Gabriella Barnes
Professor Bowling
First Year Writing February 25, 2012
Fan, Fans, Fanatics:
The History of the Sports Business
To truly understand the sports world, one needs to consider the impact of the fan. Clearly, a fan is “a person who has a strong interest in or admiration for a particular sport” (Stevenson). A fan stands out, not only in a stadium but also in daily life. Fans express support for their teams by buying tickets to the games and their team’s merchandise, by talking about the latest game and debating who will be the best team in the upcoming season. This, most obviously, shows that teams provide more than entertainment; teams have become a part of the fan’s daily life. Teams act as a business, marketing the players, games, merchandise and logos to fans, for a fee of course. Throughout the twentieth century we see some fans, looking to be entertained, enjoying the games, offering support but occasionally becoming excessively engrossed in the action. The overly engrossed fan has been identified as a fanatic. Fanatics differ from fans because of their level of devotion. A fanatic can be described as a “person with an obsessive interest in and enthusiasm for something,” and by, something here, we mean sports (Stevenson). Fans have positively altered professional athletics in recent years. Today, professional sports are seen as a growing business. Technological advancements in the media, namely radio and especially, television, have enabled the sports industries to prosper and grow into an enormous business enterprise, while bringing the thrill of the game into the home of the fans. In the twentieth century, the sports industry grew from a group of small businesses into privately owned multibillion dollar franchises. The success of the sports business depends on the support of the fan.
As the number of fans grew, so did the sports business, and with this expansion, the business gained significant power over the fans. Owners quickly realized the potential profit possible from sports, and began to manipulate sports from a pure form into an expensive business, affordable only by the wealthy. Not only are professional athletes being paid millions of dollars in today’s market, but coaches, trainers and owners are also making a “pretty penny” too. In recent years, many fans have wondered if sports teams really even care about the fan anymore. When the economic recession hit in 2008, teams noticed they were losing their fan base and the sports business tried to entice their fans into coming back and continue to support them. Finally, the sports business had come to the realization that their actions during the last fifty years had had consequences. When the number of ticket sales fell and merchandise sales were at a modern low, teams pondered their survival. Professional sports suffered financially due to the lack of fan devotion towards the game. Without fans, professional sports cannot survive; fans provide teams with a continuous income and status. Many teams have contemplated a move to other markets in order to attract a more affluent fan base and to avoid facing bankruptcy at home. Throughout the history of sports, some teams have been compelled to move to other locations where new fans could be found and the franchise would be able to continue under a new identity. This new identify needed to be supported by the larger fan base. We recognize that all big businesses need support and guidance. Look at the United States government, which without support from the citizens and the Constitution would not be viable. The fans are the citizens and the United States government is the business; neither can exist without the other. The business depends on the fans for support, just like a government relies on the citizens for support. If the sports world continues to lose its fan support, the future business of sports looks bleak.
When Johan Huizinga wrote Homo Ludens: A study of the Play-Element in Culture, the sport business existed, but only as a small enterprise. From Huizinga’s viewpoint, the game was important and sacred and the competition between opponents was fierce and pure (Huizinga 169). He would certainly oppose the idea of players being paid because they participated in a competition. He would agree that the joining of business with sports ruins the pureness and sacredness of play. He also states that play does not require spectators because fans only add to the excitement of the game and the game would continue with or without them (Huizinga 49). For Huizinga, fans aren't important to the game, because fans weren’t involved with the sport of competition. Today, fans are necessary to the business of sports because they fund the competitions, the salaries of the players and profits for the owners. Huizinga adds, “most of the spectators join in the refrains of song, applauding and egging the parties [teams] on” (Huizinga 85). He relates that the behavior of the fans who showed how they so thoroughly enjoyed the game and enthusiastically cheered on their teams, over time led these excited fans to become fanatics.
Fans are such an important part of the business and many of them became concerned that the power they gave to the sports business would be abused. Others are questioning the future of the business. Has the sport world turned their back on their fans? Have fans abandoned the stadium, or are they simply unable to afford their outrageous prices? Will more fans move on to watching games at home? How will these developments impact the sports business? Many acknowledged that fans are the driving force behind the growing sports industry, but what happens when the fans are tired of paying outrageous ticket prices? Will the wealthy fans be able to keep the industry afloat? Is the sports industry going to see a rapid decline in fans and eventually become unnecessary?
When people first began to play sports, games were unorganized. Friends, neighbors and families participated in friendly athletic competitions. Sports provided a way to relieve the stresses of daily life; participants could relax and enjoy the day. Of course, even early sports games had rules, teams, and a common goal of besting one’s opponent. Competition was keen but there was little pressure to perform, unlike the pressure on the highly paid, professional athletics of today. Looking back on the history of sports, the business of sports didn’t exist in the early days. It was not until fans became so obsessed with the sport, that players wanted to organize practices and competitions. After the games became more organized, leagues were formed and the business of sports evolved. As the popularity of sports grew, organized leagues and coaching staffs became the reality and vital for teams trying to become better players. The sports business continued to grow with the increased interest and support of the fans and the business was transformed into the franchise.
Soccer was one of the earliest organized sports known in the world, forming in the 1800‘s, and interested spectators soon adapted the sport of soccer into a community undertaking. Although watching soccer is still not popular in America, soccer has become the biggest sports industry in the world. Soccer was invented by the British, and the British soldiers played whenever they could get the chance to compete against one another. Sometimes, soccer games were also a part of the British soldier’s physical training program (Alegi 8). British soldiers were sent around the world in the eighteen hundreds when Britain was expanding its empire through imperialism. Many African nations, as well as Asian Empires, were taken over by the British. The British soldiers introduced the sport of soccer to the African people. The natives began to develop an interest in soccer by watching the soldiers compete against one other in games. Not only was soccer enjoyable, it didn’t require much equipment, only a ball and an open field. It did not cost much money. Soccer started in Africa in the late eighteen hundreds; at the same time, soccer in Europe and the British colonies began to organize into leagues. The first leagues in Africa began around 1880, beginning with the Pietermaritzburg County Football Club and the Natal Wasps FC (Alegi 2). From this point on, organized soccer increased in popularity, with many spectators showing an interest in and knowledge of the game. Nearly all the games were well attended by the local community (Alegi 8). In the book African Soccerscapes, Peter Alegi focuses on the fans and their love for the game. Although Africans were not allowed to play in games (at first), they still expressed a love for the sport. The racial segregation in Caucasian leagues and the prominence of European soccer didn’t deter native Africans from forming their own teams and leagues. They started by challenging local teams and later competed against African teams from across the continent. Devoted fans took advantage of the bank holidays in August and traveled with their teams taking advantage of half-priced tickets on steamboats (Alegi 30). Soccer teams in Africa became a symbol for national unity among rival tribes and ultimately through soccer’s influence, Africans united as a community with a common interest.
In The View From the Stand by Elif Batuman, the author explains her personal experience of Turkish soccer fans as fanatical but also as united (Batuman). She describes how the fan’s would unite together in a community. Although Istanbul has a very diverse community, fans love for their soccer team brought them together (Batuman). In this united community, people naturally looked out for each other regardless of religious views or background (Batuman). Turkish soccer fans had reached a more intense level of devotion taking their love of the game, home and continuing to display their obsession in daily activities, causing them to be called fanatics. Batuman’s experience with Turkish fans is very similar to the very diverse background observed in the fans from African nations. The fans’ sense of intense devotion towards their soccer teams, their fanaticism has been seen across the world and has enabled the sports business to develop and grow into one of the most powerful businesses in the world.
In his book, Alegi initially focuses on the racial influence of soccer on Africa. However, towards the end of his book, after soccer had been integrated, he begins to talk about the growing business of soccer. Alegi describes the sport business as a private business with a private owner. This business model is very similar to the model used in America and the rest of world, meaning a team is privately owned by one or a few people. Leagues in Africa were never funded by the government but were built and owned by wealthy business men seeking to invest for a profit.
As soccer became one of the biggest sports worldwide, many European Leagues, like those in France and Britain, decided to add African players with exceptional skill to their teams (Alegi 82). From a business point of view, adding African players not only helped to produce a better team, but the European business also expanded its fan base to the African colonies. Even as African national teams were developing, many African soccer fans continued to support European soccer teams. By the 1950s, the African colonies had established a national soccer team. But, many talented African players still traveled overseas to European leagues for exposure in the more competitive leagues with higher paying salaries.
The African players were courted by European Leagues like those in France, who after World War II needed a new financial plan to mediate the financial troubles that were threatening the vitality of their soccer teams (Alegi 82). European team owners found that they could pay talented African players less money, (50,000 francs monthly or 811 euros in 2008 value), than European players (Alegi 48). Thus, European soccer teams increased their fan base, developed new markets and improved their financial status. Alegi expresses the fan’s support for European soccer clubs by the African fans by stating, “...many African football (soccer) fans with disposable income express their status and identity as consumers of football (soccer) by wearing European, not African, team jerseys, both the expensive branded originals and inexpensive knockoffs” (Alegi 108). African national teams began losing their fan base to the more competitive and financially secure European soccer leagues. Alegi clearly proves there was a decline in fan support for African Soccer Leagues because of the fan’s allegiance to the dominant European soccer business. The sports industry most efficiently identifies the amount of fan support by the amount of merchandise that sold.“In South Africa, the continent’s largest economy, local commodification of fandom is visible in the sale of Kaizer Chiefs and the Orlando Pirates merchandise, ranging from replica jerseys, scarves and caps to cell phones and life insurance” (Alegi 108). In addition, Alegi notes the variety of merchandise that business owners were willing to endorse and sell to make a profit. This also demonstrates the level of devotion some fans have for their teams, because some were even willing to invest in team sanctioned life insurance. Some fans are willing to buy anything the business offers and the business takes advantage of the fans’ willingness and love of their teams to make a profit from them.
As the interest in European soccer peaked, many wary Africans called for a return of fan loyalty and patriotism for national soccer teams (Alegi 48). Before long, some African players began to turn down European leagues and focus on building a better national home team (Alegi 45). As African National Soccer teams gained fans, the business of soccer steadily blossomed into a source of national pride. The launch of the soccer business around the world in the late eighteenth century is very similar to building of the baseball business in America. Like the flourishing soccer business in Africa an Europe, America was about to create a new kind of sport with a growing business of its own.
America’s traditional favorite pastime, baseball, first appeared in the United States in the late 1880s. Similar to the business of soccer in Africa, the baseball business in America also began small. Soon small backyard stickball games led to the organized, segregated games of the American baseball business. American baseball, like African soccer, also started off as a “white” sport, and eventually when everyone was allowed to play certain colors could only play in certain leagues. Major League Baseball was a league that didn’t allow “colored” people to join. In an effort to showcase their skills and earn money in the off season, some black and white players organized competitions, known as Barnstorming. Timothy Gay’s Satch, Dizzy and Rapid Robert reflects back to the very beginning of baseball in America. American baseball began in the same simple, unorganized, and racially divided way as soccer did in Africa. In his book, Gay discusses the business of barnstorming as a way of life for many African American players as well as some Caucasian Players. This book also depicts the racial challenges many Americans
faced in the baseball business; these challenges were very similar to those natives who came across in the African soccer business.
The American business of baseball was still growing and many baseball players couldn't afford to be baseball players for only a season. Most players required an additional source of income to survive. Only the more famous and recognizable players, names like Babe Ruth, were paid enough to maintain a self-sufficient lifestyle all year long. Some players in the Major Leagues resorted to playing on barnstorming teams, in the off season, to provide a continuous source of income. Barnstorming began in 1901 and lasted for over fifty years, until 1947, when Major League Baseball finally became integrated (Gay 19).
Barnstorming was legendary for its popular appeal, easy accessibility to fans and entertaining baseball theatrics. Barnstorming games offered fans in rural areas a unique opportunity to watch and support the most talented players in baseball history (Gay 19-20). For many African American players, like Satchel Paige, participating in barnstorming games, was the only way to play the sport they loved while making enough money to support themselves. Barnstorming teams often had very low budgets and the teams relied on fan support to pay for daily expenses. Satchel played for the Kansas City Monarchs and as he became more famous, he attracted more fans to the games. Soon the Monarchs were able to afford better hotels and equipment and Satchel was given a salary increase (Gay 40). Before Satchel became famous, the Monarchs simply weren’t welcomed in most hotels, and even if they were tolerated, they usually couldn’t afford the hotel rates. Satchel recalls an experience he had while on the road: “...using [our] grips as pillows, [we] bunked on the outfield” (Gay 39).
Satchel Paige’s popularity was largely due to his amazing pitching ability and fan support; he was good enough to compete against many of the Major League Baseball professionals. After Paige played in a career game changer against Dizzy Dean, Paige soon found himself recognized as one of the most famous African American baseball players in the States. The Kansas City Monarchs became one of the most successful and dominant African American teams largely due to Satchel Paige’s fame among baseball fans.Paige started to pair up with “Dizzy” Dean and “Daffy” Dean (famous pitchers just as well known as Paige) in barnstorming games, to stage competitions between very similar pitching styles and skills. Fans flocked to the Paige- Deans games for the thrill of the fierce competition and player viewing. The Dean boys took advantage of their celebrity status by promoting, playing in and showing up to as many games as they possibly could. The brothers signed with teams that would give them a salary plus an additional percentage of the tickets sold for that game (Gay 88). The Dean brothers also negotiated some contracts that only required them to show up, not play, in order to get paid. The Dean brothers were so popular that fans all over the country would flock to get a glimpse of their famous pitching. They were so popular they were signed to many baseball events; owners were enticing the fans with the guarantee to see the Deans play.
After Major League Baseball began the process of integrating its teams, barnstorming lasted only a year or two more as many African American players signed with Major Leagues Baseball teams (MLB). The business of barnstorming ended when the new policies of the MLB brought both African American fans and Caucasian fans together to support the newly racially integrated professional teams. The business of Major League Baseball had successfully ruined the business of the off season leagues by simply bringing together all the players and all the fans.
After all the fans were united, in one stadium, and the same league (MLB), the fans didn’t want to see the average play anymore. Fans wanted to see the best games and the most famous players all in one and a MLB game was a fan’s ticket in. The businesses of World Soccer and America’s Major League Baseball would soon face more drastic changes when new technological advancements in the media became widespread.
The technological advancements, such as cable television, of the 1980s exposed the sport business to a new way to earn profits. The growing media and technological advancements inspired a whole new kind of business. The media helped to unite the new age of advertising and the modern franchise. Privatized companies, the sport teams, benefited the most from the media deals and merchandise sales. Sports teams broadcast their games to a select number of cable providers. The settlement of the Time Warner Cable Company and the MSG standstill awarded the right to broadcast the New York Knicks’ games to Time Warner. Nowadays, cable providers make deals with teams like the New York Knicks and the NFL to allow them to broadcast the games to their fans. The media was now able to broadcast games to fans all over the world. The early 1980’s proved promising for sports teams and their owners. Fan interest in sports, thanks to television, was growing rapidly and everyday new fans were introduced to the sport.
For many sports businesses, the media offered a wider market for profit by expanding its reach to fans across the world. Not only did the sports business reap millions of dollars from contracts allowing TV networks to broadcast their games, but the sports business also began to develop merchandise and design logos to sell for bigger profits. During this time, the sports business turned into a profit hungry industry and they started to forget about their fans.
The development of digital signals and compression technology, allowing the transmission of multiple channels without costly bandwidth expansion, powered the rise of cable television and direct broadcast satellite (DBS) via small “dish” receivers n Europe and North America (Alegi 104). Millions of fans, worldwide, could now tune into their favorite team’s game by simply turning on a TV in their own homes or by going to sports bars in African nations. Not only was the sports business gaining income from the new fans but they were also selling the games to TV channels to further increase their revenues. This new business model helped to make African soccer successful and popular across the globe. The World Cup, one of the most watched soccer tournaments, reaching fans in every country, sold the right to broadcast their games for 84 million pounds ($132,761,469 in today’s U.S dollar) in 1998 (Alegi 105). This price has skyrocketed in recent in years; now, the broadcasting rights are sold for a much higher profit. The rights to show both the 2002 and 2006 World Cups cost a staggering 1.16 billion pounds or a close $1,840,000,000 in today’s U.S dollars (Alegi 105). As time went on, the business leaned on the television channels demanding more money for the privilege of broadcasting the games on their networks. The changing technology, opened doors for the sports business to finally become a brand, maximizing revenues for the growing business. The media’s financial impact on the sports business precipitated the birth of the franchise. Steadily, the business of sports grew with the advancements in technology, as new markets to advertise and make a profit were developed.
In “The Business of Sports,” Richard Worsnop focuses on the sports business in modern times. He theorizes that there are three parts to the sports business, the owners, the players and the sports fans; fans being the ultimate provider of the income that has made all the players and owners and leagues rich (Worsnop). The sports business owes its vitality and wealth to the fans. Fans have turned the game from a friendly form of casual entertainment into a money making enterprise for the greedy owners. In recent years, it seems that the business has abandoned the average fan rather they court the few wealth independents and corporations willing to pay top price for season tickets. The realization that the business was turning its back on the fans has been building in the past decade. Starting in the early twenty-first century, experts noticed a steady increase in tickets that were being outrageously overpriced. Furthermore, when teams move the public realizes, “...fans will be forced to pick up at least $60 million of the relocation tab through a personal seat licensing campaign, in which they will be asked to pay a one-time fee of $250 to $4,500 for the right to purchase season tickets””(Worsnop). Average fans can’t afford these season tickets anymore and some can’t even afford the individual, more moderately priced, ‘nose bleed’ seats, regularly. Worsnop determines the reason for the outrageously high price of tickets is the newly built posh stadiums, like Yankee Stadium or Citi Field, and the extremely high players’ salaries. Teams were trying to pull in as much revenue as they could to cover these costs while still increasing their profit margin. Worsnop explains that some owners of teams in the NHL (National Hockey League) were barely able to cover the current payroll because of the astronomical players’ salaries (Worsnop).
Many fans attempt to continue to support their favorite teams because they are “...fearful of losing their clubs to bankruptcy or relocation...” (Worsnop). Fans want, to know that their investment in going to the game, will enable their team to remain functional at home, that is, remain viable in their existing state or city. Although, many fans want to continue to support their teams, the high prices are turning the fun of affordable professional games for families into fun for only the select few, wealthy fans. Many fans are starting to complain saying, “sporting events that had once been affordable for our families are now largely playgrounds for the elite” (Worsnop). Sports started out as a cheap form of entertainment for fans and families. Games were family activities and a big part of many fans’ childhoods. With the recession of 2008 lasting longer than expected, many families are reorganizing their financial priorities and finding that sports games in stadiums aren’t worth the cost. Fans are becoming assertive and letting owners know they are not going to keep paying these prices. Fans are turning to the less costly and more comfortable arms of media offerings to satisfy their sporting needs. TV channels, like ESPN or MSG, continue to have high ratings.
Television, has also affected the sports business, as it is starting to become cheaper to stay at home and watch the game in high definition (Worsnop). If fans had to chose between their homes and a stadium, their home has no lines for the bathroom, no overpriced food or drinks, you didn't pay for a ticket or parking, and you get to watch the game close up. What could be better? Fans can just as easily cheer their team on at home by wearing team jerseys and having a few friends over. Leagues are losing a serious source of income with the decreasing ticket sales. Furthermore, their selfish grab for dollars is causing them to lose future fans. Worsnop depicts the change in the business by first presenting old evidence from the history of the1869 Cincinnati Red Stocking baseball team. Professional team sports in the United States dates from 1869, when the
Cincinnati Red Stockings were founded. The baseball team, which had begun as
an amateur club, announced its “full-fledged professionalism” that year
and guaranteed its players salaries. The manager received $1,200, while most
players earned from $600 to $1,000. ... They charged 50 cents a ticket and
drew about 200,000 paying fans. (Worsnop)
What a huge difference between the Cincinnati Reds’ 1869 payroll and their 2012
payroll. The average player on the Cincinnati Reds’ 2012 team is paid $ 2,531,571 annually compared to the $600 or $1,000 paid to players back in 1869 (“USA...”). The excesses noted above are not practiced by just one or two teams or sports. The profit margin motivates the business of all professional sports. The average fan feels left out and while they are still loyal, the business needs them to move off their sofa and back into the stadium. The business wants the fan to bring their families back to the stadium.
After the 1980’s, experts and fans agree, the sports business took an unexpected downturn With the recession hurting even the wealthiest of fans, leagues were compelled to change, in order to attract new fans and bring back the fans lost because of bad business practices. For the sports business, returning to the old, more fan friendly ways will be very difficult. However, this transition will be even more difficult for fans skeptical of the businesses’ true intention. The business has finally felt the consequences of their bad decisions. They realize that continuing with recent unfriendly practices could in the future, ultimately ruin the sports business. Before the 2008 recession, the sports business, such as the National Football League (NFL), had the luxury of a “take-it-or-leave it” attitude when making deals with fans, sponsors and even TV networks (McCarthy). The NFL offered season ticket packages of ten games, two preseason games and eight season games, and in addition, fans had to pay upfront for all the games. (McCarthy) Leagues knew they had the upper hand against fans and other ticket seekers, they knew they could charge outrageous prices and get away with it; but, with the decline in the economy fans began to regain their power. As a New York Jets executive vice president said, “It's a good thing for teams to be reminded we have to work hard to maintain fanloyalty...” (McCarthy). The businesses are feeling the consequences of their actions and want their teams to begin to court the fans once again. The recent economic downfall has forced teams like the Kansas City Chiefs (NFL) to begin a payment plan that will allow fans to afford tickets for any game, by paying off their purchase in four payments. This new policy is designed to be as “accommodating as possible with fans...”(McCarthy). Owners are giving into the demands of fans who can no longer bear the expense of attending games. Other teams are trying to retain their current fan base by telling them how much they are appreciated. It seems that anyone employed by the sports business is doing all they can to get the fans to come to the stadium again. For example, the New York Jets (NFL) recently sent all current season ticket holders a phone message, prerecorded, from the head coach of the Jets, Rex Ryan, thanking them for their continued business and loyalty to the team (McCarthy). The coaches are also stepping up and are going the extra mile to appease fans. Teams are paying attention to the advice, "The worst thing anybody can do in business is to lose sight of their customer — in our case, the fan. You can never, ever take those people for granted"” (McCarthy). Fans deserve respect from their teams and owners, and lately, experts agree, owners have shown improvements in their efforts to secure their fan base. They are attempting to mediate the downturn in their fortune today and secure their future.
To recapitulate, the sports business has become a multibillion dollar and growing franchise. It appears that the business has no limits in what it can achieve if willing to reconnect with the regular fans. With fans, sponsors and television shows wanting more, the sports business will survive. Back in 2008, many fans were worried about the greedy owners’ intentions, and many stopped paying into sports because they felt they were not getting the respect they were entitled to and their money’s worth in entertainment. From the beginning to the end, the business was and always will be concerned with the profit margin and future income. Over the years, sports offered an affordable form of family entertainment. It appeared that owners managed a team for the good of the business, players and the fans. After the 1980s, the growth of technology made a bigger profit for owners and thus the owners were inspired to make even more money. The fans were thrown to the side, as the industry pursued more “money hungry” policies. “Certainly, sports or individual teams may lose sight of their fans from time to time...Ultimately, sports teams have to come back to their fans” (Worsnop). Every expert would agree that this is what happened to the sports business and now they are calling for change and hope the change for the better will last. The sports business finally understands that without the fans the sports business would not be able to thrive and would serve no purpose in modern times. The sports business needs the support of all current fans and more importantly has to find a way to attract and hold the attention of the next generation of fans, the young children of today’s fan, to succeed.
Works Cited
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Huizinga, Johan. Homo Ludens; a Study of the Play-element in Culture. Boston: Beacon,
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"USA Today Salaries Databases." USA Today. Gannett. Web. 12 Mar. 2012.
Worsnop, Richard L. "The Business of Sports." CQ Researcher 10 Feb. 1995: 121-44.
Web. 15 9Feb. 2012.
1. James Bryan
Approved -Jim Bryan, advisor, 5/5/13
05/05/13, 11:11 pm