HOW SPORTS CONTRIBUTE TO ECONOMY
ABSTRACT
Sport has always been an important part of society but it is now becoming an increasingly important part of the economy. Consequently, the measurement of the economic impact of sporting events has become a focus of some interest to a number of groups including policy makers and sporting officials. In this paper the established procedures for measuring economic impacts are evaluated from the perspective of the nature of the information required by decision makers. It is found that the traditional approach to the measurement of the economic impacts of sporting events is conceptually flawed and potentially misleading. An alternative series of measures are suggested. These measures are more focused on information requirements and better grounded in the principles of welfare economics than those that are now widely used.
Keywords: sport, cost benefit analysis, economic impact
INTRODUCTION
These days’ sports have become intimately intertwined with development issue.
Individuals, organizations and companies are using sports –and football in particular –to achieve development goals.
The most important observations are that the context within which football within football development projects in Africa operate is more complex than one might expect, organization of football is vast and complex and numerous powerful men and few women are involved in the sponsoring and running the game. Many of them of them are primarily interested in satisfying person needs. Football is not always about scoring goals on the field of play; it is also about scoring goals in the world of finance and management.
Football development projects commonly work with local partners. This can be association, a league committee, a club, a village, a school. Whoever sets up a project in Africa should realize that football is organized differently and rather complexly. The official structure of an organization never corresponds to the actual situation.
Sport has always been an important part of society but it is now becoming an increasingly important part of the economy. Consequently, the measurement of the economic impact of sporting events has become a focus of some interest to a number of groups including policy makers and sporting officials. In this paper the established procedures for measuring economic impacts are evaluated from the perspective of the nature of the information required by decision makers. It is found that the traditional approach to the measurement of the economic impacts of sporting events is conceptually flawed and potentially misleading. An alternative series of measures are suggested. These measures are more focused on information requirements and better grounded in the principles of welfare economics than those that are now widely used.
Keywords: sport, cost benefit analysis, economic impact
INTRODUCTION
These days’ sports have become intimately intertwined with development issue.
Individuals, organizations and companies are using sports –and football in particular –to achieve development goals.
The most important observations are that the context within which football within football development projects in Africa operate is more complex than one might expect, organization of football is vast and complex and numerous powerful men and few women are involved in the sponsoring and running the game. Many of them of them are primarily interested in satisfying person needs. Football is not always about scoring goals on the field of play; it is also about scoring goals in the world of finance and management.
Football development projects commonly work with local partners. This can be association, a league committee, a club, a village, a school. Whoever sets up a project in Africa should realize that football is organized differently and rather complexly. The official structure of an organization never corresponds to the actual situation.