With this article, I am returning to my blog after a
long time and my commitment is that there will be continuity and consistency in
publishing my write ups from now onwards. As I am engaged in the field of the
business and management of sports, I keep on my writing on these issues only.
However, if need be, there will be a few deviations where I want to express my
opinion on specific subjects, different from the business of sports.
In this article, I have decided to focus on whether
the Government should invest the public money for the development of sports and
for organizing mega sports events instead of investing it for setting up
schools, colleges, universities and hospitals which have a long term impact on
the society. The write up will be divided in two parts, in the first part, I
shall discuss about the social benefits that may be derived from sports and in
the second part, the economic impact of organizing a mega sports events will be
discussed. Both these parts will be written specifying the key concepts as I
don’t want these articles to be lengthy, boring and tedious. Today, I shall
focus on the first part.
Before we start our discussion, it is important to
understand the concept of ‘State’. ‘State’, in brief, is the structure that
governs the society. The role of state in providing sporting experience is
crucial. The ancient Olympic Games and other sporting festivals were organized
and sponsored by various city states which formed the ancient Greece. These
city states were also known as ‘Polis’. The ruling monarchs of Europe
patronized a number of tournaments and combat games during the middle ages to
show the prowess of the warrior classes. However, in the modern era of
industrialization, the concept of state intervention in sports has changed
considerably. For example, in the USA, many government funded schools and
colleges set up sports facilities with the support of the state in order to
increase the participation of the students so that a healthy and fit generation
can be made and also the champions can be produced.
The state intervenes
into the activities of the society in order to increase social welfare which is
essential for the development of the nation. For example, by building railway
and road infrastructures, the state can improve the system of transportation
which accelerates the growth of industries. By setting up schools and colleges,
the state can improve the system of education which can make the citizens
employable and productive. The establishment of hospitals can enhance the life
expectancy of the people. Therefore, the role of the state in improving the
well-being of the society is important. Sport is not an exception. State
intervenes in sports to fulfill the following two objectives:
i.
To make the citizens
of the nation healthy and fit by providing sporting opportunities
ii.
To produce elite
athletes to gain national pride and prestige in the international arena of
sports
The benefits that can
be derived from sports can be divided into two categories- ‘Private Benefits’
and ‘Public or Social Benefits’. ‘Private Benefits’ are the values that the
customers get by purchasing a sports product or a service. In sports, an
individual may receive various types of private benefits, such as attending a
sports event, playing an indoor football match, working out in a gymnasium etc.
Social benefits, on the contrary, are the values
that the entire community gets through the production and consumption of a good
or a service. For example, providing participation opportunities to the people
of the state by building sports infrastructure may help the society to produce
a healthy and fit generation. Producing elite athletes may help in gaining
pride and prestige at the international stage which will help the society in
inculcating social cohesion.
Since sport provides significant social benefits, it
deserves state support to ensure that the welfare of the state is achieved to
the maximum extent. According to the sports management experts, social benefits
in sports can be derived from active participation and spectator sports. Active
participation in sports improves the health of the community which results in a
decline in medical cost and crime rate. It also inculcates discipline and character
and introduces the qualities of team work, leadership, social bonding etc. In
recent years, research has revealed that sport plays an instrumental role in
the school life which helps in improving the behaviour, health, retention and
social skills of a student. These attributes have a positive impact on
achieving academic excellence. In brief, it can be said that the active
participation in sports helps in building social capital which is a key for
making a strong society.
In case of spectator sports, social benefits can be
derived in the form of social cohesion, national pride and prestige,
international recognition, economic development, sports tourism etc. If all
these benefits are added, the social benefits derived from sports are quite
extensive and thus the state should play a crucial role in improving the social
well-being through sports.
In this article, I have analyzed the reasons for
investing public money for the development of sports. However, it is important
to observe whether the community always supports the investment of public money
for organizing mega sports events which may have an impact on the economy of
the country. This may not be true in all
cases. The case in point is the 2016 Summer Olympic Games which were held in
Rio. This matter will be discussed in the next part of the blog.
