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Following the conclusion of the 50th CARIFTA Games in the Bahamas last month, much has been said about the potential of sports as a viable industry and the need to create a sports ecosystem as part of the economic diversification strategy for this country.
This cry from big and small, appears to be a repeated refrain, animated after each regional and/or international sports meet. The cry becomes even louder if those representing Barbados do well in their various fields, winning gold, silver or even bronze, and bring much glory to this little rock. But alas! After a few weeks, the noise dissipates. Some call it a nine-day wonder. The fact, however, is that we can no longer be sporting around with sports – what may be seen as a hobby for some, has significant economic benefits which must be harnessed for the future development of our citizens and our country. A viable business model is therefore needed to maximise this potential cash cow. It’s time to develop the business of sports.
The multi-billion-dollar global market for sports, which represents fees, endorsements and television rights, continues to grow exponentially. The key drivers include a rebound in television advertising and the continued migration of sports to ‘pay TV’. In addition, the growth of internet broadband, the use of mobile devices, and the growing attraction of video screens in public spaces are key players in driving innovation in the sports economy across the globe.
The global sports industry reached an estimated value of USD$610 billion in 2022. A recent study by Dr Rudolph Alleyne, head of the Cave Hill Academy of Sport, estimates that sports accounts for between two to three per cent of Barbados’ GDP, which translates to between $102 and $154 million.
We are quite familiar with sports as a business in several developed countries, with the US and the UK presenting several business models. Some success is seen in the efforts of our Caribbean neighbour, Jamaica, through their investment in infrastructure, sports incubator programmes, community projects, enabling policies, and other support.
The US Government supplies funding to its sports federations, but this is relatively minimal. The main source of funding for the US Olympic and Paralympic Committee is through corporate sponsorships and donations from private individuals. The most visible government assistance for sports in the US is the giant stadia across the country which contribute around 45 per cent to a project’s total cost. Professional sports players get various forms of help, such as exemption from anti-trust laws and non-profit status for a few of their activities. Local governments lend support with permission from the Federal government to issue tax-free bonds to support professional sports.
In the UK, sport is funded by a mix of the Government Exchequer and National Lottery income, and UK Sport is accountable to the Department for Culture, Media and Sport.
Suggestions for the development of Barbados’ sports industry include the creation of semi-professional leagues, and programmes that will enable sports to be a greater contributor to the economy of the country. This would require more professional structures by sports organisations. As it is noted, most of these sports entities are managed by volunteers.
The upgrading of facilities and training methods by coaching personnel is another prerequisite in the business of sports. If this is Government-driven, qualified personnel must be on board to provide a restructuring of the Ministry of Sport and the National Sports Council to include a business model. This will require qualified and experienced personnel to move the industry forward, and personnel with international experience would be an asset.
Returns from the investment in sports are significant, and national recognition for athletes adds to national prestige and a voice for Barbados on the global stage. The spin-offs can be seen in several professions – physiotherapists, trainers, coaches, sports medicine doctors, sports medicine research, and other associated careers. There is also the creation of sporting goods industries, which in turn leads to the creation of employment opportunities.
The first order of business is the actual development and improvement of performances of athletes across the board, and the subsequent ability to promote and market the athletes and related sports equipment. Any business investment requires a solid product that is attractive to consumers. The business approach to sports entails the development of the sport, and attractive presentations of the benefits to the athletes, the consumers and the investors. This must be accompanied by an effective marketing strategy, which targets building profitable customer relations and a return on investment.
To its credit, the Cabinet of Barbados approved a new National Sports Policy. The Green Paper on the National Sports Policy 2022 – 2032 includes maximising the economic potential of sports. In the section dealing with the development of a sports economy, the elements listed include the development of sports agents, sports manufacturing locally, sports merchandising and retailing, sports related gaming, semi-professional and professional sports, sports tourism, sports medicine, sports journalism and broadcasting, the provision of sports facilities, and the rapidly evolving digital sports sector.
In promoting the potential for investment in sports tourism, the National Sports Policy has identified three areas of special interest – cricket, road tennis and beach culture. It aims to monetise cricket in Barbados and capitalise on the beautiful beaches through the promotion of beach volleyball, football and water sports activities.
Germane, however, to the development of sports as a business, is the strengthening of national federations, and the recognition of sports as a central pillar of the national identity of Barbadians. We need to encourage the awareness of the business of sports as a career option and recognise the possibilities of earning from sports through the various avenues that are available.
Innovation is a necessary element in the competitive world of sports business – ideas must be turned into products, which in turn generate wealth. The opportunities are out there – the business of sports can be a viable contributor to the economy. As James Carville said in 1992, “It’s the economy stupid!”
The Small Business Association of Barbados (SBA) is the island’s non-profit representative body for micro, small and medium enterprises (MSMEs). Connect with the SBA: https://www.sba.bb/sba/
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