Sport is The Most Fourth Highest Income Sector around the World

By Sok Lak

Sport is any physical activity which has the character of play and which involves a struggle with oneself or with others, or a confrontation with natural elements, became the most fourth highest income sector around the world counted after industrial, trade, and technology.

“Among the highest income sector around the world which are industrial, trading, technology and tourism, sport is also one sector of highest sector among them, ” Vath Chamroeun, General Secretary of National Olympic Committee of Cambodia speaking at the sport seminar on April 26 in Phnom Penh.

He motioned that industrial is the first highest earned income sector, trading is second highest earned income, technology is third highest earned income sector and sport rank number four. For tourism sector, it ranked number five.

He added that in developing sport sector, it also needs private to ensure sustainable development of sport.

“Marketing is an important tool to ensure one sport organization growing”. If sport organization has no knowledge in searching sport market, the sport organization may face difficult in growing. As the source income of sport national federation and organization are come from sport authority such as Ministry of Education, Youth and Sport which only support on technical perspective in sport sector and NOCC which support on human resource development in how to find the fund and some training. One another important income source is sponsorship, so all sport organizations need to know how to find sport market especially sponsorship.

Johnny Yong, Sponsorship Marketing Director of NOCC said that the increase globalization has made the marketing mix an essential factor for sport sector to become successful or even to stay in business.

He added that sponsorship is an indirect promotional tool which viewed as brining benefits to the society.

According to a recent survey in 2010, sport sponsorship is amounted to about 67% of the total sponsorship spending of companies.

He highlighted that only two world sport made a signification income. One is Beijing Olympic Games in 2008 made $886 million of income and another one is FIFA World Cup in 2006 made €1.9 billion of income.

Individual athletics can also earn high income for sport sector such as Alex Rodrigues who is baseball player of New Yankees earned $275 million for 10 years from 2008 to 2017, Fernando Alonso who is Football players of McLaren earned $160 million for 4 years from 2007 to 2010, and Kobe Bryant who is basketball players of Los Angeles Lakers earned $136.4 million for seven years from 2004 to 2011.

“Sport sponsorship has become one of the most important and growing industries worldwide.” Among the popular sports for corporation to sponsor are professional football, tennis, basketball, golf and motor racing.

Source: The Southeast Asia Weekly, May 1-7, 2011, Vol. 5, Issue 18, Page 12