European and American Economic Models of Sport Organizations
Sports and economics are closely related in many ways. Sports are having an increasing impact on economics, but economic ideas may also be applied to sports.
For instance, game theory is applied in both economics and sports. It examines several "players" and how their methods could impact one another's gains using numerical models. This economic viewpoint has been applied to sports to turn contests into quantifiable occurrences.
The General Economic Sports Model
There is a sizable and expanding body of comparative legal analysis on the organizational structure of sports, especially of professional sports. The link between a relatively unblemished European Sports Model and the expanding commercialization of sports has been one of the major themes in Europe.
The issue has been explored in a variety of ways while examining the European Union's ability to regulate athletic competition. It has also been used to compare and contrast the so-called North American Sports Model with the European Sports Model. The American Sports Model is literally what the European Model is not; both models are primarily constructions of legislation.
However, the models enable each of us to understand how others see our sports culture. Even though the European Sports Model has been the focus of several articles, there aren't many that compare it in-depth to the American model. Comparing the models brings out fundamental principles, hones analysis, and produces fresh perceptions.
The American Economic Sports Model
The fact that the American model of a sports economy runs largely with a sizable commercial sports sector is one of its key characteristics. It consists of more than 49,000 institutions with a profit-making business.
Many betting companies have invested in the major sports in America. They view the sports sector as a business to make good profits. But to be fair, American sports fans are increasingly getting into sports betting.
Most people bet on sport for fun. Others bet to make money. Either way, you can increase your stake by claiming March madness betting bonuses at this time of the year.
Of course, you can bet on a lot more than college basketball. You can also bet on college football or the major leagues. That being said, American collegiate sports serve as a form of stepping stone for the greatest amateur athletes toward professional teams.
The grassroots and corporate sports are on the one hand and the pro elite on the other. The most popular athletic disciplines in terms of participation, attendance, and television viewership are not the same on both sides of the Atlantic.
In the United States, the rate of registered sport participation, or the number of registered sports participants divided by the population, is close to 40%. This number is comparable to that of Germany and other European nations with the highest rates of athletic involvement.
The sports sector in the USA is estimated to be worth between $60 billion and $70 billion, serving a large and affluent American consumer. The largest sports-related markets in Europe are comparable to those in the United States. As a result, the sports economy's effect on employment is also evenly spread. The sports industry employs close to 1 million people in the USA. However, there is a significant disparity between American and European countries in the amount of voluntary labor done in sports.
The US sports economy has almost minimal state interference, which is another notable aspect of the American model. Stadiums and arenas for sports are financed by local administrations.
According to both the American and European models, households' financial resources are allocated to sport participation first, followed by spectator sports. In both models, local governments play a major role in funding sports stadiums and arenas, with professional and elite sports and sporting events coming first in the enterprise pecking order. You may see some convergent tendencies between the two models as a result.
The European sports model
The fact that the sports economy in European models predominantly caters to amateur sports is a key distinguishing factor. Its organization doesn't run institutions primarily for profit.
There are business organizations that provide sports-related services and products throughout Europe. The scale of this industry is still lower than that of clubs and organizations that are not for profit, such as the approximately 180,000 sports associations in France.
The structure of the European sport system is described as pyramidal. Millions of people participate in amateur sports at the lowest levels of the pyramid, and there are a lot of minor sports associations that participate in regional competitions. Then, using the promotion and relegation system, any opponent or club may ascend alongside the pyramid.
On the other side, when their (his/her) sporting performances are deteriorating, an elite athletic club might be downgraded. If enough money is invested in this goal, a small local team may potentially make it to the top professional level.
Another key feature of the economic sports model in Europe is the ratio of sports participation. In Europe, the percentage of athletes is significantly dispersed. You can estimate the level of demand for sporting products and services by looking at the ratio of sport participation.
The largest sports-related markets in Europe are comparable to those in the United States. They account for almost two-thirds of the US market in Germany, France, and the UK.
Given that these nations have lower populations than the USA, such a magnitude is noteworthy. Additionally, the current non-profit sports associations provide their members with a variety of sports-related products and services.
The result is that the sports economy's influence on employment is also dispersed. In the public and private sectors of the sports industry, there aren't many occupations, such as managers, coaches, etc. 15,342 of these jobs can be found in Portugal, 106,000 in the Netherlands, 199,000 in France, and over 450,000 in Germany.
Government involvement is widely dispersed across Europe, even in nations like Greece and Cyprus where the national sports strategy is significant. Local governments account for the vast majority of public intervention in the sports economy in other nations including the U.K., Germany, and France.
The structure of allocation amongst sources of sports funding, however, varies from nation to another throughout Europe. For instance, France's sport finance system is almost identical to the EU 27 average.
On the other hand, certain nations, like Bulgaria, Slovakia, and Estonia, are more focused on public funding of sports, while others, like Cyprus, Finland, and the U.K., are more dependent on private contributions.
Conclusion
Your understanding of how to employ sports in economic growth may be improved by a deeper understanding of sports and their relationship to economics.
A large portion of the sports sector, which has the potential to help foster social change, has not received as much attention. Particularly grassroots sports have great potential and can help an economy's creative sector.