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NBA
Sport Organisation and Governance
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TABLE OF CONTENTS
Introduction…………………………………………………….
Evolution of NBA and Euroleague……………………..
Commercialisation of Sport Organisations…………………………..
Sport Spectating Trend……………………………………………………
Fast GrowingTechnologies………………………………………………….
Fast GrowingCompetition…………………………………………………………
Professionalization of Sports Management……………………………….
Benefitsand DisadvantagesCommercialisation & Professionalization…….
Conclusion………………………………………………………………………………..
References……………………………………………………………………………………
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Introduction
In the last twenty years, sport has shifted from being a pastime to a business because of the
commercialisation process, which has led sports organisations and managers to become
focused on business principles. This process of commercialisation has also led sports
organisations to be labelled as ‘business-like’ because they become market orientated, pursue
operational strategies that increase the volume of revenue, and become responsive to the
customers’ needs. Two aspects of sport commercialisation have been found. The first one has
been an upsurge in the truly commercial operational activities of sport. Increasingly more
sports organisations across the world have become focused on maximising their revenue and
profit, employing this principle as the fundamental basis for decision making and strategy
development. Consequently, expenditure associated with sponsorship, rights of television,
players’ payments and sports betting have escalated noticeably in the last few decades as
more and more sports organisations have looked for enhancing their opportunities to generate
revenue by implementing a business approach to the sport management (Tsuji, 2015). As an
instance, the National Basketball Association (NBA) and its related sponsors moved towards
the global economy with the core objective of maintaining the levels of profit (Weichao,
2010). The ‘NBA International’ as an overseas division was established, deals to broadcast
sports were contracted with national networks in many individual countries, and deals at the
regional levels were struck with satellite channels, like Sky Sports, Star Sports and ESPN
International (Weichao, 2010). Another aspect of commercialisation has occurred within
those sports organisations that are not-for-profit or owned by the state. These organisations
have experienced considerable cultural and operational transformation within the past ten
years, because their managements have adopted a business-oriented approach in the
organisations’ management. So, it indicates that decision making in these organisations
reveals that of commercial organisations, and has led to the constitution of systems including
strategic planning, performance management and quality management.
The focus of this essay is NBA and its purpose is to critically analyse how the sport
organisation has transformed over time. In particular, is going to assess the impact of
increased commercialisation and professionalization on NBA’s organisation and governance.
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Evolution of NBA and Euroleague
Its first game is officially recognised by the NBA as having been played in 1946, ironically,
in Toronto Canada. Such a match was between the New York Knickerbockers and the
Toronto Huskies. The league was called the BAA (Basketball Association of America) at that
time, it amalgamated with some other leagues to establish the NBA which finally merged
with the ABA and constituted the NBA. (Chiba, 2015) Euroleague, on the other hand, was at
one point a FIBA run competition between the major teams of Europe, before becoming
usurped by the modern Euroleague Basketball Company in 2000 (Štrumbelj et al., 2013).
This specific format has transformed more than a few times from playoffs to final fours and
back, and the teams are continuously moving in and out. Therefore, this league is a
comparatively new trying to establish itself. Further, it is an open league to all meaning any
team can qualify to join the league.
So as to compare the NBA and Euroleague, comprehending the changes that European
basketball have experienced during the last twenty years. With crucial figures of basketball,
such as David Stern, NBA commissioner, discussing the notion of a prospect international
league that will make a bloc of teams from US and Europe, it is essential to compare the play
style and the success of both NBA and Euroleague (Chiba, 2015). Within Euroleague, the
Final Four format was first introduced in 1987 that has really transformed the face of
European basketball, as the basketball (before new format) in the region was more a local
than an international phenomenon (Chiba, 2012). On the other hand, the NBA was considered
to be a much better league, one that European teams did not even dream of competing with
(Weichao, 2010).
The introduction of the new to the Euroleague brought a significant change. The nature of
this new format was very competitive that ultimately brought a lot of interest and advertisers
to the league (Mills, 2012). Unexpectedly, teams were playing with much heavy budgets and
were capable of trying US-based players to go Europe and demonstrate their talents (Chiba,
2012). The mixture of the European team like basketball style with the individual style of
play and athleticism that were brought by the US players transformed the face of the
Euroleague and of the overall basketball in Europe (Chiba, 2012).
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Very quickly, the Final four games became most interesting events of the year across the
world and more and more US players were considering bringing their talents and abilities to
Europe (Alvarez et al., 2011). NBA scouts, on the other hand, were developing and taking
interest in successful players belonging to Europe. On annual basis, the NBA draft started to
showcase European players and the virtual explosion of player traffic was brought by the
achievement of some of them in the NBA between the two continents. (Alvarez et al., 2011)
The interest level developed by the US players and experts of basketball in the Final four and
the Euroleague enhanced even more when national basketball teams of Europe were fully
capable of partaking in international competitions to beat the US team (Alvarez et al., 2011).
It was an indication of a changed time and that the supremacy of US basketball was not
inviolable.
Moreover, in the 19th and 20th century, both the US and the European formations and cultural
patterns associated with sports established along quite diverse paths. At first, there were
many sports that became very popular in America than Europe, with basketball, baseball,
football and hockey as the most common sports of America, versus tennis, gymnastics,
cycling, ‘global football’ as the most well-liked sports in Europe (Huang and Hong, 2015).
The second is that all these sports were established, structure and practiced in many diverse
contexts: that of educational institutions in the US and that of voluntary clubs and
associations in Europe. Another path is that the sports (specifically NBA) in US
commercialised and professionalized earlier and much more comprehensively than European
sports (specifically Euro-league) (Huang and Hong, 2015). Euro-league is the highest level
tier and most crucial professional club basketball competition in Europe. The fourth, as a
business, US professional sports were planned and organised in closed leagues of rival
franchises, while professional as well as unprofessional European sports established part of
open competitions on the basis of promotion and relegation principle (Sampaio, Lago and
Drinkwater, 2010). Another path is that the open sport competitions of Europe highly
accepted and recognised at an international level and were governed by non-profit federations
operating at the international level. On the other hand, closed professional leagues in America
remained national in scope and meaning for a long time, and were formed under profit-
oriented administrative control devoid of any regulatory body working at the international
level. This frequently led to the establishment of competing leagues in the same sport branch.
In this regard, the NBA is one of the outstanding professional basketball league formed in
North America. NBA is extensively considered to be the leading professional basketball
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league for men across the world. Besides an active member of the USA Basketball (USAB),
recognised by FIBA (the International Basketball Federation), the league has 30 franchised
member clubs (Huang and Hong, 2015). Lastly, the US government rarely influenced the
development of the cultures and formations of sporting than Europe (Fei, 2007). The NBA
developed market-driven and independent of the state, while The European governments,
such as in Turkey, increasingly interfered in the sports world, mainly following the World
War II.
Because the formation and culture of sporting in America appears to be the anomaly in this
respect, many authors have emerged to speak of “America’s sports exceptionalism” (Brown,
2005; Dyreson and Mangan, 2013). This is suitable with the American self-respect and pride
to be primarily distinctive, different from the remaining part of this world. Moreover, it
elaborates on the academic literature on American exceptionalism, and this thesis,
nevertheless, has also become subject of significant debate; regarding the causes of
America’s alleged distinctiveness, as well as, whether this notion is a truth or a myth, and
what empirical proof can be found for both positions (Dietschy, 2011). In recent times, this
debate has been extended to the sports field. Further, according to Nafziger (2004), trends of
commercialisation, professionalization and globalisation continue on both sides that
ultimately accelerates a convergence of the sports model followed by North America and
Europe in more than a few respects and on all competition levels (Nafziger, 2004).
However, at present, the American and European leagues have a deep mutual respect for one
another. The upcoming times may very well bring with it a really international league in
which the worldwide teams will be fully capable of competing and the basketball will be an
international sport.
Commercialisation of Sport Organisations
Commercialisation has been the leading factor behind the sport development as a business,
leading to an industry that generates revenue for both national and local economies by means
of event revenue, tourism, employment, sponsorship, taxes, etc (Puchan, 2005). This
commercialisation has been caused to happen mostly by the actions and interactions of the
sport spectating trend; fast changing technologies; fast growing competition; and the
professionalization of sports management (Larsen, 2002). Nowadays, commercialisation has
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fundamentally change all of the popular and professional sports such as football and
basketball. NBA and media have a “win-win” situation and they both depend on each other.
To describe this relationship Jhally (1989) has coined the term the “sports/media complex”
which refers to the close connection and interrelationship that has been established between
the media, particularly television, and spectator sports. As we see today, NBA
commercialization has changed the sport (more time-outs, more gameplay).
Sport Spectating Trend
A growing trend towards sport spectating has been evidenced. By the start of the 1994-95 in
the USA, the NBA was being transmitted on in either one or two-hour or live game packages
in more than 135 countries to a projected spectators of over 5550 million (Lee and Pedersen,
2009). In 2001, the NBA had extended to over 200 countries across 42 languages (Lee and
Pedersen, 2009). The NBA is the only mega sports event that has set an attendance record
during the past two years, but the big 4 (NFL, NHL, NBA, and MLB) continue to enjoy their
inspiring growth (Uden, 2005).
Two ways have been found through which this spectator sport trend has commercialised
sport. The first one is that, due to the cash money involved in sponsorship, gate receipts and
television rights, it is necesary to manage sport as a business venture. The second way is that
in return for revenue, there is high level of expectations of audiences and sponsors about the
occasion provided by sport. Maguire (2005) discussed the reasons for this trend and
maintained that the total is very striking because of the involvement of large sums of money,
and because excellence is expected in spectator sport, people generally incline to be enticed
to it. It is stimulating and smart to point out the millions of dollars earned by an athlete or
involved in sport sponsorship (Maguire, 2005). Just playing the game is not enough; there
needs to be early and half-time entertainment, extra commentary, match analysis, catering
amenities and merchandising. Spectator sport is indeed an entertainment that needs to be
managed accordingly.
Fast Growing Technologies
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In the past few decades, fast growing changes in the technological world has drastically
changed the face of sport and the television has been the most noteworthy of these
technologies. According to Owen-Pugh (2007), television has changed the lives of all of
those who are involved in playing, organising and promoting sport, because greater income
has been provided by the television for established sports and an opportunity for exposure for
many minority sports. As far as the NBA’s success is concerned, fast growing advancement
of technology, mainly the technologies of radio, television, and radio and the World Wide
Web have had immense impact. Besides traditional game broadcasts, a variety of diverse
programmes is produced by the NBA. NBA Action and NBA Jams are two programmes that
target children and teens (Fortunato, 2000). For those who do not have a television, the
league still uses radio as broadcasting medium. The Internet has greatly opened up new
worlds for the NBA. In past, people had to wait for tomorrow’s newspaper to read the news
of sports. Now, there are many websites, like NBA.com, make people up-to-date all the time.
In fact, the impact of television on all the sports and their organisations has been substantial
and has coerced the sport commercialisation by requiring sports organisations to establish the
business practices essential to manage and fulfil their spectators’ demands (Dick and Sack,
2003). Nevertheless, it is a reciprocal relationship, even though sport has transformed to suit
the television needs, this has been recognised by the television and it has served the
spectating trend by increasing televised sport (Johnston, 2003). The potential this offers for
more viewing rights, sponsorship and therefore more revenue for sport is vast. The market of
television market is extremely competitive. The beginning of satellite, cable and digital TV;
together with increases in the number of trrestria1 channels, has had the effect of more
enhancing the sports’ value, as main organisations of broadcasting compete to broadcast
popular mega events of sport. This is evident in the deal made by NBA. In 1976, the
American Basketball Association (ABA) was merged with the NBA. From the starting stage,
the ABA expected to force a merger with the NBA, therefore repeating the successful effort
of American Football League (AFL) to force a merger with the National Football League
(NFL) (Hickey and Kelly, 2008). It has been maintained by the NBA that officials of ABA
told potential owners that they could get the team of ABA for half of what it cost to get the
expansion of NBA team at the time. The officials of new league predicted with absolute
confidence that if and when a merger arose, the investment would be seen double by
surviving owners. The remaining ABA owners agreed in 1976, in exchange for the Spirits
folding, to pay $2.2 million to St. Louis owners with a 1/7 share of the television revenues in
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perpetuity of four remaining teams (Berri and Schmidt, 2006). As popularity of the NBA
blow up in the 1980s and 1990s, the television rights of league were sold to CBS and then
NBC, and further deals were made with the TNT and TBS; league television revenue touched
the hundreds of millions of dollars (Berri and Schmidt, 2006).
Fast Growing Competition
Even though sport is always considered as one of the major relationships between people, it is
explicit that there are many sports organisations operating in a more and more competitive
business market, with fierce competition emerging from other sports and leisure
organisations, local, regional, national and international. (Hui, 2013)
For sports business, the primary reason of increasingly competitive market is improvements
in technology. At first, advancements in the technological world in means of travel have
made sports events’ customers far more mobile, letting them to buy services of sports in other
areas of the world (Owen-Pugh, 2007). The second is that the sports world has been shrunk
by the modern communications to little more than a village (Owen-Pugh, 2007) e. For people
it is now feasible to view sports’ mega events all over the world, place bets on the results and
have as their ‘local’ team a sports team in another country (Hui, 2013). Moreover,
competitiveness becomes more noticeable when it is considered by an individual that sports
organisations compete for discretionary, unrestricted expenditure (Nafziger, 2004). For this
very reason, the managements of sports organisation are competing within their relative
industry, while competing with other approach to use their discretionary income. In fact, a
business approach is necesary to be adapted to the delivery of sports so as to make sure
survival of the business in a more competitive industry.
Professionalization of Sports Management
Increasing professionalization of professionals involving in managing sports organisations is
one of the major effects of the commercialisation that has occurred during the past few
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decades. In sports organisations all over the world, the presence of comprehensive strategic
planning, strategies related to human resource and marketing plans have led to enhancements
in professional practice (Ratten, 2011). This professionalization of sport management has
been made possible by two key aspects (Thomas, 2006). The first one is that there has been a
fast growing training and education programme for people who want to be the sport
managers. The ere almost 200 higher education institutes only in North America that offer
many degree programmes in the discipline of sports management and it is one of the fastest-
emerging study domains in US high institutes (Thomas, 2006). The overall scenario is not
different in the UK where over 1000 universities have found that offer many courses contain
‘sport’ or ‘leisure’ in the title. Professional sports bodies or organisations have also had a
pivotal part to contribute: Among many others, USA has one of the top leading sports
organisation called the NBA. Similarly, UK, Japan, Australia, New Zealand and others have
sport organisations catering for professionals and academics. All of these organisations have
played a vital role to the increasing professionalism of people involved in sports
management.
The second aspect is that the academic study of sports management has started and conducted
research with the aim to analyse and examine the sports organisations and their managements
so as to establish best practice. In this domain, research has taken every single aspect of
management, like organisational design, promotion and marketing, sponsorship, the human
resource management, quality management, ethics and equity. Numerous scholarly and trade
journals have been found that disseminate the research findings to an international audience.
The major effects of these two major aspects have been the development of a management
culture on the basis of the belief that effective management practice is the only best solution
for the survival of an organisation. A belief is inherent in this culture effective management
demonstrates business-like management through which commercialisation of sport
management has been driven, and hence sport, in all industry sectors. There are strong
evidence of professionals, provided by Drewes (2005), who use techniques like performance
management, quality management and firm financial controls. Drewes (2005) has also
recognised the value of personal and people skills and good generic management skills. Thus,
it is explicit that the sport management’s professionalization has played a role to the
increased commercialisation of the whole sports industry.
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Benefits and Disadvantages Commercialisation &
Professionalization
Johnston (2003) describes that benefit of sport commercialisation is that amateur level sports
can take full advantage through commercialization process at the professional level. This
process has brought greater exposure to sports at an amateur level benefit directly through
commercialization and the exposure brings it to a professional level sport. Moreover,
commercialisation of sports has the potential to assist in generating more revenue that creates
more capital for sports and for different industries (Yuoran, 1999). Yuoran (1999) added that
the revenue of a US has been increased because of the commercialisation and
professionalization of sports because this approach has given the opportunity to the US to
organise more international competitions in the country. According to Luo, Dai and Huang
(2015), advertisements of the NBA entice more foreigners that ultimately lead to high
revenue level, and this approach is very effective and beneficial to the entire economy.
Another example is the Beijing Olympics which was held in 2008. In this Olympic Games, a
majority of the people turned up for the mega sports event and the main reason behind this
was commercialisation of this event; thus, contributing to economic growth of China very
well (Luo, Dai and Huang, 2015). The stance of Hu (2011) is that commercialization and
professionalization of NBA has led to the increase in the sports’ number and quality shown
on television now. Devoid of commercial sponsorship, people are not capable of following
their much-loved sports. For this reason, sports commercialization has benefited society in
providing best entertainment. According to Uden (2005), commercialisation is driven by
professionalization and it means that that sports organisations became profit-making bodies
and that the professional sports leagues and systems at the club level were established. Sports
club operations now can cover the sales of ticket, promotions and advertising, club transfers,
commercial competitions, and broadcasting via electronic media (Uden, 2005). For example,
Chinese athletes have also started joining other countries’ professional leagues, and the
American NBA is its best example (Luo, Dai and Huang, 2015).
Moreover, for the enhancement of capital accumulation in its sponsoring firms, the NBA has
made sure that when its events are televised at the regional and national levels these firms are
offered commercial slots in the broadcast (Luo, Dai and Huang, 2015). According to Huang
and Hong (2015), this approach lets the NBA and its sponsor to take full advantage. As he
11 | P a g e
suggests, this is particularly a case in circumstances where promotions are developed by a
sponsorship company (corporate sponsor) which directly work with the NBA as both partners
take advantage of the “intertextual association derived from the proximity of two All
American commodity-signs” (Cvetkovich and Kellner, 1997, p.86), and Coca-Cola and
McDonald are the two best examples of corporate sponsor in the case of NBA.
On the other hand, the commercialisation of sports has also been criticised more as an
unwanted process, because it has been contended that this process eliminate the ‘essence’ of
sport. According to Robinson (1999) (cited in Huang and Hong, 2015), community and
recreational focus of sport have been undermined by professionalism and specialism.
Chandler, Cronin and Vamplew (2002), on the other hand, discussed at length how sport
commercialism has promoted the practice of violence, cheating, betting and gambling.
Nevertheless, the money earned by professional league teams, the trend towards
professionalization of conventionally incompetent sports, and the increasing amount of
money being paid for the right to broadcast events proposes that while the sport
commercialization’s desirability can be challenged, the real commercialisation process cannot
be debated.
According to Zhou, Zhang and Zhang (2013), the commercialization of NBA is non-
beneficial because it goes against human rights. Therefore, the commercialization of sport
would mean that the sports dynamics itself will be ran like a business, leading to ‘buying’
players as though they were commodities. Even though it would imply that increasingly
money as capital can be capitalised in the sport, rights and discretion of human have been
invaded; since players will be groomed and "bought" as per their talents and abilities. Besides
grooming players as per their talents, not all will be pervaded the equal opportunity to play,
and those who may be enthusiastic yet not very brilliant player will be deprived of the
experience.
Conclusion
This essay has critically analysed NBA and how this sports organisation has transformed over
time due to the process of commercialisation and professionalization. Both advantages and
disadvantages have been found associated with commercialisation and professionalization of
sports. However, the conclusion of this study is that though there are some disadvantages of
12 | P a g e
sports commercialisation and professionalization, the benefits are plentiful. One of the best
benefits of sports commercialisation and professionalization is that it boosts the country’s
economy because advertisements of the NBA events entice more and more people from
around the world that ultimately lead to greater level of revenue, and this approach is very
effective and beneficial to the entire economy. In fact, commercialisation is driven by
professionalization, meaning that NBA became profit-making organisation in America and
other professional sports leagues and systems at the club level were also established due to
commercialisation.
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Coursework NBA

  • 2. 1 | P a g e TABLE OF CONTENTS Introduction……………………………………………………. Evolution of NBA and Euroleague…………………….. Commercialisation of Sport Organisations………………………….. Sport Spectating Trend…………………………………………………… Fast GrowingTechnologies…………………………………………………. Fast GrowingCompetition………………………………………………………… Professionalization of Sports Management………………………………. Benefitsand DisadvantagesCommercialisation & Professionalization……. Conclusion……………………………………………………………………………….. References……………………………………………………………………………………
  • 3. 2 | P a g e Introduction In the last twenty years, sport has shifted from being a pastime to a business because of the commercialisation process, which has led sports organisations and managers to become focused on business principles. This process of commercialisation has also led sports organisations to be labelled as ‘business-like’ because they become market orientated, pursue operational strategies that increase the volume of revenue, and become responsive to the customers’ needs. Two aspects of sport commercialisation have been found. The first one has been an upsurge in the truly commercial operational activities of sport. Increasingly more sports organisations across the world have become focused on maximising their revenue and profit, employing this principle as the fundamental basis for decision making and strategy development. Consequently, expenditure associated with sponsorship, rights of television, players’ payments and sports betting have escalated noticeably in the last few decades as more and more sports organisations have looked for enhancing their opportunities to generate revenue by implementing a business approach to the sport management (Tsuji, 2015). As an instance, the National Basketball Association (NBA) and its related sponsors moved towards the global economy with the core objective of maintaining the levels of profit (Weichao, 2010). The ‘NBA International’ as an overseas division was established, deals to broadcast sports were contracted with national networks in many individual countries, and deals at the regional levels were struck with satellite channels, like Sky Sports, Star Sports and ESPN International (Weichao, 2010). Another aspect of commercialisation has occurred within those sports organisations that are not-for-profit or owned by the state. These organisations have experienced considerable cultural and operational transformation within the past ten years, because their managements have adopted a business-oriented approach in the organisations’ management. So, it indicates that decision making in these organisations reveals that of commercial organisations, and has led to the constitution of systems including strategic planning, performance management and quality management. The focus of this essay is NBA and its purpose is to critically analyse how the sport organisation has transformed over time. In particular, is going to assess the impact of increased commercialisation and professionalization on NBA’s organisation and governance.
  • 4. 3 | P a g e Evolution of NBA and Euroleague Its first game is officially recognised by the NBA as having been played in 1946, ironically, in Toronto Canada. Such a match was between the New York Knickerbockers and the Toronto Huskies. The league was called the BAA (Basketball Association of America) at that time, it amalgamated with some other leagues to establish the NBA which finally merged with the ABA and constituted the NBA. (Chiba, 2015) Euroleague, on the other hand, was at one point a FIBA run competition between the major teams of Europe, before becoming usurped by the modern Euroleague Basketball Company in 2000 (Štrumbelj et al., 2013). This specific format has transformed more than a few times from playoffs to final fours and back, and the teams are continuously moving in and out. Therefore, this league is a comparatively new trying to establish itself. Further, it is an open league to all meaning any team can qualify to join the league. So as to compare the NBA and Euroleague, comprehending the changes that European basketball have experienced during the last twenty years. With crucial figures of basketball, such as David Stern, NBA commissioner, discussing the notion of a prospect international league that will make a bloc of teams from US and Europe, it is essential to compare the play style and the success of both NBA and Euroleague (Chiba, 2015). Within Euroleague, the Final Four format was first introduced in 1987 that has really transformed the face of European basketball, as the basketball (before new format) in the region was more a local than an international phenomenon (Chiba, 2012). On the other hand, the NBA was considered to be a much better league, one that European teams did not even dream of competing with (Weichao, 2010). The introduction of the new to the Euroleague brought a significant change. The nature of this new format was very competitive that ultimately brought a lot of interest and advertisers to the league (Mills, 2012). Unexpectedly, teams were playing with much heavy budgets and were capable of trying US-based players to go Europe and demonstrate their talents (Chiba, 2012). The mixture of the European team like basketball style with the individual style of play and athleticism that were brought by the US players transformed the face of the Euroleague and of the overall basketball in Europe (Chiba, 2012).
  • 5. 4 | P a g e Very quickly, the Final four games became most interesting events of the year across the world and more and more US players were considering bringing their talents and abilities to Europe (Alvarez et al., 2011). NBA scouts, on the other hand, were developing and taking interest in successful players belonging to Europe. On annual basis, the NBA draft started to showcase European players and the virtual explosion of player traffic was brought by the achievement of some of them in the NBA between the two continents. (Alvarez et al., 2011) The interest level developed by the US players and experts of basketball in the Final four and the Euroleague enhanced even more when national basketball teams of Europe were fully capable of partaking in international competitions to beat the US team (Alvarez et al., 2011). It was an indication of a changed time and that the supremacy of US basketball was not inviolable. Moreover, in the 19th and 20th century, both the US and the European formations and cultural patterns associated with sports established along quite diverse paths. At first, there were many sports that became very popular in America than Europe, with basketball, baseball, football and hockey as the most common sports of America, versus tennis, gymnastics, cycling, ‘global football’ as the most well-liked sports in Europe (Huang and Hong, 2015). The second is that all these sports were established, structure and practiced in many diverse contexts: that of educational institutions in the US and that of voluntary clubs and associations in Europe. Another path is that the sports (specifically NBA) in US commercialised and professionalized earlier and much more comprehensively than European sports (specifically Euro-league) (Huang and Hong, 2015). Euro-league is the highest level tier and most crucial professional club basketball competition in Europe. The fourth, as a business, US professional sports were planned and organised in closed leagues of rival franchises, while professional as well as unprofessional European sports established part of open competitions on the basis of promotion and relegation principle (Sampaio, Lago and Drinkwater, 2010). Another path is that the open sport competitions of Europe highly accepted and recognised at an international level and were governed by non-profit federations operating at the international level. On the other hand, closed professional leagues in America remained national in scope and meaning for a long time, and were formed under profit- oriented administrative control devoid of any regulatory body working at the international level. This frequently led to the establishment of competing leagues in the same sport branch. In this regard, the NBA is one of the outstanding professional basketball league formed in North America. NBA is extensively considered to be the leading professional basketball
  • 6. 5 | P a g e league for men across the world. Besides an active member of the USA Basketball (USAB), recognised by FIBA (the International Basketball Federation), the league has 30 franchised member clubs (Huang and Hong, 2015). Lastly, the US government rarely influenced the development of the cultures and formations of sporting than Europe (Fei, 2007). The NBA developed market-driven and independent of the state, while The European governments, such as in Turkey, increasingly interfered in the sports world, mainly following the World War II. Because the formation and culture of sporting in America appears to be the anomaly in this respect, many authors have emerged to speak of “America’s sports exceptionalism” (Brown, 2005; Dyreson and Mangan, 2013). This is suitable with the American self-respect and pride to be primarily distinctive, different from the remaining part of this world. Moreover, it elaborates on the academic literature on American exceptionalism, and this thesis, nevertheless, has also become subject of significant debate; regarding the causes of America’s alleged distinctiveness, as well as, whether this notion is a truth or a myth, and what empirical proof can be found for both positions (Dietschy, 2011). In recent times, this debate has been extended to the sports field. Further, according to Nafziger (2004), trends of commercialisation, professionalization and globalisation continue on both sides that ultimately accelerates a convergence of the sports model followed by North America and Europe in more than a few respects and on all competition levels (Nafziger, 2004). However, at present, the American and European leagues have a deep mutual respect for one another. The upcoming times may very well bring with it a really international league in which the worldwide teams will be fully capable of competing and the basketball will be an international sport. Commercialisation of Sport Organisations Commercialisation has been the leading factor behind the sport development as a business, leading to an industry that generates revenue for both national and local economies by means of event revenue, tourism, employment, sponsorship, taxes, etc (Puchan, 2005). This commercialisation has been caused to happen mostly by the actions and interactions of the sport spectating trend; fast changing technologies; fast growing competition; and the professionalization of sports management (Larsen, 2002). Nowadays, commercialisation has
  • 7. 6 | P a g e fundamentally change all of the popular and professional sports such as football and basketball. NBA and media have a “win-win” situation and they both depend on each other. To describe this relationship Jhally (1989) has coined the term the “sports/media complex” which refers to the close connection and interrelationship that has been established between the media, particularly television, and spectator sports. As we see today, NBA commercialization has changed the sport (more time-outs, more gameplay). Sport Spectating Trend A growing trend towards sport spectating has been evidenced. By the start of the 1994-95 in the USA, the NBA was being transmitted on in either one or two-hour or live game packages in more than 135 countries to a projected spectators of over 5550 million (Lee and Pedersen, 2009). In 2001, the NBA had extended to over 200 countries across 42 languages (Lee and Pedersen, 2009). The NBA is the only mega sports event that has set an attendance record during the past two years, but the big 4 (NFL, NHL, NBA, and MLB) continue to enjoy their inspiring growth (Uden, 2005). Two ways have been found through which this spectator sport trend has commercialised sport. The first one is that, due to the cash money involved in sponsorship, gate receipts and television rights, it is necesary to manage sport as a business venture. The second way is that in return for revenue, there is high level of expectations of audiences and sponsors about the occasion provided by sport. Maguire (2005) discussed the reasons for this trend and maintained that the total is very striking because of the involvement of large sums of money, and because excellence is expected in spectator sport, people generally incline to be enticed to it. It is stimulating and smart to point out the millions of dollars earned by an athlete or involved in sport sponsorship (Maguire, 2005). Just playing the game is not enough; there needs to be early and half-time entertainment, extra commentary, match analysis, catering amenities and merchandising. Spectator sport is indeed an entertainment that needs to be managed accordingly. Fast Growing Technologies
  • 8. 7 | P a g e In the past few decades, fast growing changes in the technological world has drastically changed the face of sport and the television has been the most noteworthy of these technologies. According to Owen-Pugh (2007), television has changed the lives of all of those who are involved in playing, organising and promoting sport, because greater income has been provided by the television for established sports and an opportunity for exposure for many minority sports. As far as the NBA’s success is concerned, fast growing advancement of technology, mainly the technologies of radio, television, and radio and the World Wide Web have had immense impact. Besides traditional game broadcasts, a variety of diverse programmes is produced by the NBA. NBA Action and NBA Jams are two programmes that target children and teens (Fortunato, 2000). For those who do not have a television, the league still uses radio as broadcasting medium. The Internet has greatly opened up new worlds for the NBA. In past, people had to wait for tomorrow’s newspaper to read the news of sports. Now, there are many websites, like NBA.com, make people up-to-date all the time. In fact, the impact of television on all the sports and their organisations has been substantial and has coerced the sport commercialisation by requiring sports organisations to establish the business practices essential to manage and fulfil their spectators’ demands (Dick and Sack, 2003). Nevertheless, it is a reciprocal relationship, even though sport has transformed to suit the television needs, this has been recognised by the television and it has served the spectating trend by increasing televised sport (Johnston, 2003). The potential this offers for more viewing rights, sponsorship and therefore more revenue for sport is vast. The market of television market is extremely competitive. The beginning of satellite, cable and digital TV; together with increases in the number of trrestria1 channels, has had the effect of more enhancing the sports’ value, as main organisations of broadcasting compete to broadcast popular mega events of sport. This is evident in the deal made by NBA. In 1976, the American Basketball Association (ABA) was merged with the NBA. From the starting stage, the ABA expected to force a merger with the NBA, therefore repeating the successful effort of American Football League (AFL) to force a merger with the National Football League (NFL) (Hickey and Kelly, 2008). It has been maintained by the NBA that officials of ABA told potential owners that they could get the team of ABA for half of what it cost to get the expansion of NBA team at the time. The officials of new league predicted with absolute confidence that if and when a merger arose, the investment would be seen double by surviving owners. The remaining ABA owners agreed in 1976, in exchange for the Spirits folding, to pay $2.2 million to St. Louis owners with a 1/7 share of the television revenues in
  • 9. 8 | P a g e perpetuity of four remaining teams (Berri and Schmidt, 2006). As popularity of the NBA blow up in the 1980s and 1990s, the television rights of league were sold to CBS and then NBC, and further deals were made with the TNT and TBS; league television revenue touched the hundreds of millions of dollars (Berri and Schmidt, 2006). Fast Growing Competition Even though sport is always considered as one of the major relationships between people, it is explicit that there are many sports organisations operating in a more and more competitive business market, with fierce competition emerging from other sports and leisure organisations, local, regional, national and international. (Hui, 2013) For sports business, the primary reason of increasingly competitive market is improvements in technology. At first, advancements in the technological world in means of travel have made sports events’ customers far more mobile, letting them to buy services of sports in other areas of the world (Owen-Pugh, 2007). The second is that the sports world has been shrunk by the modern communications to little more than a village (Owen-Pugh, 2007) e. For people it is now feasible to view sports’ mega events all over the world, place bets on the results and have as their ‘local’ team a sports team in another country (Hui, 2013). Moreover, competitiveness becomes more noticeable when it is considered by an individual that sports organisations compete for discretionary, unrestricted expenditure (Nafziger, 2004). For this very reason, the managements of sports organisation are competing within their relative industry, while competing with other approach to use their discretionary income. In fact, a business approach is necesary to be adapted to the delivery of sports so as to make sure survival of the business in a more competitive industry. Professionalization of Sports Management Increasing professionalization of professionals involving in managing sports organisations is one of the major effects of the commercialisation that has occurred during the past few
  • 10. 9 | P a g e decades. In sports organisations all over the world, the presence of comprehensive strategic planning, strategies related to human resource and marketing plans have led to enhancements in professional practice (Ratten, 2011). This professionalization of sport management has been made possible by two key aspects (Thomas, 2006). The first one is that there has been a fast growing training and education programme for people who want to be the sport managers. The ere almost 200 higher education institutes only in North America that offer many degree programmes in the discipline of sports management and it is one of the fastest- emerging study domains in US high institutes (Thomas, 2006). The overall scenario is not different in the UK where over 1000 universities have found that offer many courses contain ‘sport’ or ‘leisure’ in the title. Professional sports bodies or organisations have also had a pivotal part to contribute: Among many others, USA has one of the top leading sports organisation called the NBA. Similarly, UK, Japan, Australia, New Zealand and others have sport organisations catering for professionals and academics. All of these organisations have played a vital role to the increasing professionalism of people involved in sports management. The second aspect is that the academic study of sports management has started and conducted research with the aim to analyse and examine the sports organisations and their managements so as to establish best practice. In this domain, research has taken every single aspect of management, like organisational design, promotion and marketing, sponsorship, the human resource management, quality management, ethics and equity. Numerous scholarly and trade journals have been found that disseminate the research findings to an international audience. The major effects of these two major aspects have been the development of a management culture on the basis of the belief that effective management practice is the only best solution for the survival of an organisation. A belief is inherent in this culture effective management demonstrates business-like management through which commercialisation of sport management has been driven, and hence sport, in all industry sectors. There are strong evidence of professionals, provided by Drewes (2005), who use techniques like performance management, quality management and firm financial controls. Drewes (2005) has also recognised the value of personal and people skills and good generic management skills. Thus, it is explicit that the sport management’s professionalization has played a role to the increased commercialisation of the whole sports industry.
  • 11. 10 | P a g e Benefits and Disadvantages Commercialisation & Professionalization Johnston (2003) describes that benefit of sport commercialisation is that amateur level sports can take full advantage through commercialization process at the professional level. This process has brought greater exposure to sports at an amateur level benefit directly through commercialization and the exposure brings it to a professional level sport. Moreover, commercialisation of sports has the potential to assist in generating more revenue that creates more capital for sports and for different industries (Yuoran, 1999). Yuoran (1999) added that the revenue of a US has been increased because of the commercialisation and professionalization of sports because this approach has given the opportunity to the US to organise more international competitions in the country. According to Luo, Dai and Huang (2015), advertisements of the NBA entice more foreigners that ultimately lead to high revenue level, and this approach is very effective and beneficial to the entire economy. Another example is the Beijing Olympics which was held in 2008. In this Olympic Games, a majority of the people turned up for the mega sports event and the main reason behind this was commercialisation of this event; thus, contributing to economic growth of China very well (Luo, Dai and Huang, 2015). The stance of Hu (2011) is that commercialization and professionalization of NBA has led to the increase in the sports’ number and quality shown on television now. Devoid of commercial sponsorship, people are not capable of following their much-loved sports. For this reason, sports commercialization has benefited society in providing best entertainment. According to Uden (2005), commercialisation is driven by professionalization and it means that that sports organisations became profit-making bodies and that the professional sports leagues and systems at the club level were established. Sports club operations now can cover the sales of ticket, promotions and advertising, club transfers, commercial competitions, and broadcasting via electronic media (Uden, 2005). For example, Chinese athletes have also started joining other countries’ professional leagues, and the American NBA is its best example (Luo, Dai and Huang, 2015). Moreover, for the enhancement of capital accumulation in its sponsoring firms, the NBA has made sure that when its events are televised at the regional and national levels these firms are offered commercial slots in the broadcast (Luo, Dai and Huang, 2015). According to Huang and Hong (2015), this approach lets the NBA and its sponsor to take full advantage. As he
  • 12. 11 | P a g e suggests, this is particularly a case in circumstances where promotions are developed by a sponsorship company (corporate sponsor) which directly work with the NBA as both partners take advantage of the “intertextual association derived from the proximity of two All American commodity-signs” (Cvetkovich and Kellner, 1997, p.86), and Coca-Cola and McDonald are the two best examples of corporate sponsor in the case of NBA. On the other hand, the commercialisation of sports has also been criticised more as an unwanted process, because it has been contended that this process eliminate the ‘essence’ of sport. According to Robinson (1999) (cited in Huang and Hong, 2015), community and recreational focus of sport have been undermined by professionalism and specialism. Chandler, Cronin and Vamplew (2002), on the other hand, discussed at length how sport commercialism has promoted the practice of violence, cheating, betting and gambling. Nevertheless, the money earned by professional league teams, the trend towards professionalization of conventionally incompetent sports, and the increasing amount of money being paid for the right to broadcast events proposes that while the sport commercialization’s desirability can be challenged, the real commercialisation process cannot be debated. According to Zhou, Zhang and Zhang (2013), the commercialization of NBA is non- beneficial because it goes against human rights. Therefore, the commercialization of sport would mean that the sports dynamics itself will be ran like a business, leading to ‘buying’ players as though they were commodities. Even though it would imply that increasingly money as capital can be capitalised in the sport, rights and discretion of human have been invaded; since players will be groomed and "bought" as per their talents and abilities. Besides grooming players as per their talents, not all will be pervaded the equal opportunity to play, and those who may be enthusiastic yet not very brilliant player will be deprived of the experience. Conclusion This essay has critically analysed NBA and how this sports organisation has transformed over time due to the process of commercialisation and professionalization. Both advantages and disadvantages have been found associated with commercialisation and professionalization of sports. However, the conclusion of this study is that though there are some disadvantages of
  • 13. 12 | P a g e sports commercialisation and professionalization, the benefits are plentiful. One of the best benefits of sports commercialisation and professionalization is that it boosts the country’s economy because advertisements of the NBA events entice more and more people from around the world that ultimately lead to greater level of revenue, and this approach is very effective and beneficial to the entire economy. In fact, commercialisation is driven by professionalization, meaning that NBA became profit-making organisation in America and other professional sports leagues and systems at the club level were also established due to commercialisation.
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