“We need a joint collaborative organization between the public and private sectors that can make money by hosting sports events. “Stakeholders must participate to create a sustainable model that is data-driven.”
This is the conclusion reached by foreign sports industry experts.
The Korea Institute of Sports Science held a global sports industry conference at Setec in Seoul on the 22nd. The theme is ‘Sports Industry and Local Economic Development’. U.S. economists, U.S. sports commission representatives, Japanese sports commission representatives, and National Football League (NFL) officials participated. The focus was on how the government and private organizations should cooperate to generate revenue through sports and contribute to revitalizing the local economy.
The Sports Commission is a private organization specializing in hosting sporting events in the United States and Japan. This is a group of experts who develop and commercially promote sustainable sports events in the region while private experts complement the work limitations and lack of expertise of public officials. Kim Sang-hoon, head of the Sports Industry Research Department at the Institute of Sports Science, said, “Opinions that a sports commission is necessary have been raised in our country for several years now,” and added, “We have gained a lot of insight into how sports commissions in the U.S. and Japan are operated and how to create a Korean-style sports commission.” .
■Brad Humphreys (Professor, West Virginia University): Cities used to be centers of production, but now they have become places of consumption. The cost of building sports facilities is also increasing significantly. The proportion of public funds invested in construction costs has also increased. Visiting a city isn’t just about sporting events. Negative impacts such as traffic congestion, possibility of crime, environmental pollution, and rising prices also coexist. A city’s many attractions play a bigger role in attracting tourists than building stadiums or hosting competitions. Central government should focus on developing broad-based sports policies that affect all residents. ‘Place-based policies’ that focus on a specific region or single region can have negative impacts on other regions. I hope that local governments will not repeat the mistake of spending too much money on building stadiums like in the United States. Develop sustainable financial models that can reduce public subsidies.
■David Gilbert (Chairman of Cleveland Sports Commission): The American Sports Commissions Association (Sports ETA) was founded in 1992. Currently, there are 850 organizations, including clubs and marketers, under the association. Cleveland is the 18th largest market in the United States. The population is 2.5 million. In the past, it was centered on manufacturing, but now not only manufacturing, but also medical, business, and service industries are active. Cleveland also has National Football League (NFL), National Basketball Association (NBA), and MLB teams. The Cleveland Sports Commission was established in 2000. It currently has 15 full-time employees, 80 board members, and annual sales of $2.4 million. Operating expenses are 60% from corporate sponsorships and 40% from public funds. Since 2000, more than 260 events have been held, including the NBA and MLB All-Star Games and the NFL Draft, and have generated an economic effect of $1 billion. There are 20 events held in 2024. Local and professional clubs are working together to generate revenue and reduce costs by holding events.
■Amanda Arbuckle (Sports Manager, Banff, Canada): Banff is a small city in Alberta, Canada. World-famous national parks and indigenous (Indian) culture come together. Tourism is the main industry. 4 million people visit every year. So far, it has had an economic effect of about $1.2 billion and created 14,000 jobs. It has hosted Paralympic Games, curling, para hockey, ice hockey, marathon, and yoga events. There is a balance between local residents and tourists in the use of facilities. Work collaboratively with local tourism boards, hospitality associations and national park representatives. Most local residents work in the service industry. There is also controversy over exorbitant fees due to the greed to make money. To control this, efforts are made to attract summer events. The first thing to consider when preparing a sports tourism policy are local residents. All decisions must be made based on data.
■Munehiko Harada (Chairman of Japan Sports Tourism Association): Introduces the concept of sports co-creation. Sports are diversified with hidden resources, such as snowball fights, canoeing on agricultural waterways, walking football, bicycle riding on disused railways, and marathons on roads not used by cars. In addition, new events are being created that anyone can participate in, regardless of physical ability, age, gender, etc. The Saitama Sports Commission was created in 2011. The company has 20 full-time employees and has achieved an economic effect of $500 million to date. Since we have to work together with public officials, we establish a cooperative group with public officials and local residents to study and research. Japanese civil servants are also employed on a rotating basis, so their professionalism is low. We have no choice but to continue explaining and studying together.
■Charlie Shin (Vice President, Indiana Colts, American Professional Football): Indiana ranks 19th in GDP in the United States. There are many automobile, battery, and shipbuilding companies. There are also American professional football and American professional basketball teams. We are also investing heavily in e-sports. We have a sports vision that we dream of until 2050. Sports development and industrialization using technology. To promote this, various stakeholders, including finance, policy, research, universities, and companies, collaborate. A service that connects fans and players using technology is also being prepared with this structure. In some cases, events are held using public facilities. The goal of public facility managers should not be limited to facility maintenance. Their mission should also change to generate more revenue by increasing facility use.
