Downturn could offer sporting opportunity
One of the world’s leading sport business experts, Professor Simon Chadwick, says the economic downturn will throw the spotlight on how sport is run as an industry, pushing sports to innovate.

Speaking at the launch of Weber Shandwick Sport - the new UK sports practice of global public relations agency Weber Shandwick - Chadwick said: "In some ways, the downturn is not just a challenge, but also an opportunity for the smartest sports, teams, companies and investors. It is forcing us to examine how things can be better run, better managed and better organised, for a brighter future for sport."

Chadwick cited the example of the Chairman of the Football Association, Lord Triesman, questioning whether it is acceptable for football clubs to operate with £3 billion of accumulated debt, throwing the spotlight on how sport is run as an industry. Chadwick suggests potential improvements will depend on the openness of those involved to learn and respond.

Chadwick said that sports and teams with global brand appeal are likely to remain robust during the downturn. They will continue to attract TV revenues, sales of merchandise, sponsorship and gate receipts and he suggested that the
long-term acid tests will see observers need to look closely at the impact on match day attendances and how TV rights negotiations progress, as a barometer of the health and power of a sport.

But he predicts a widening gap between sport’s rich and poor with smaller teams and sports he says, possibly crowded out from the ‘big money’. “The sports suffering the most from the downturn receive little mass-media coverage and therefore have limited appeal to sponsors and other commercial partners. Where crowd sizes are already low, the credit squeeze is placing even more pressure on the smaller professional clubs and sports and that means they need to do more than ever before to survive or prosper.

“While smaller sports and teams are in the midst of a bumpy ride, those deriving their support - financial or otherwise - from across the world are likely to remain strong, if not even grow in strength. The most recession-resistant sports will be ones that best stir national pride but also enhance their global appeal.

"Sports or teams with links to the Middle East, the Indian sub-continent and South East Asia are likely to be the most recession-resistant for the foreseeable future. Plus, with currency markets turning on their head, in some cases this makes overseas investment even more lucrative for all concerned."

Chadwick suggests tiers of impact exist in every sport. For example, in the case of football, the leading clubs such as Manchester United, Chelsea and Arsenal, and the likes of new economic powerhouse, Manchester City, are expected to retain their broad appeal and commercial strength, particularly with overseas investment and fan base.