Sport & TV: Perfect Business Partners? - Essay Sample

Introduction

It is imperative to note that sport and television are compatible partners that interdepend on each other. The game makes the television broadcasting business to thrive, and the reverse is also right (Miller, 1999). Based on the case study, sport and television business gain popularity due to the immediacy since viewers have the desire to watch live games. In that context, television broadcasting rights prices may vary in different locations and timing of those events.

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Question 1: Determining the Broadcasting Rights Prices for the Rio de Janeiro Olympic of Different Countries

a. Japan: I would negotiate with IOC for $ 1.5 billion broadcasting rights. Being an Asian country, Japan is ahead of Brazil by a time difference of 12 hrs. It is imperative to note that viewers in Japan may not have an easy time to watch live television games from Brazil due to that time inconvenience. Therefore, there is a rationale to justify relatively lower Olympic broadcasting rights from Brazil to Japan.

b: China: I would suggest around $ 3.0 billion broadcasting rights. China has more than 3 billion citizens, with several lovers of Table Tennis, which is an Olympic game (Miller, 1999). However, the time difference between these two countries 11 hours, with China ahead of Brazil. In that context, I would negotiate for moderate broadcasting rights with the IOC, bearing in mind that not all local Chinese viewers will not watch live televisions.

c: Australia: I would negotiate and suggest $2.2 billion. The time difference between Rio de Janeiro and Australia is about 11 hours. Despite being Rugby lovers, there might be challenges in finding large audiences in Australia to watch the Rio Olympic games. Therefore, there is a justification for a relatively lower deal.

d: European Union/Britain: based the $1.18 billion London NBC deal for American broadcasting, I would negotiate for $2.5 billion for the 2016 Brazil Olympics. Since Britain is only three hours ahead of Brazil, the small-time difference will bring the convenience of a significant live audience. Based on the case study, previous Olympics held in American countries have attracted higher rights payment since there are large viewers in Britain who will watch live games on television. Therefore, that would justify the negotiation of $2.5 billion with the IOC broadcasting rights since the television returns will equally be higher as per the consumption.

e: Brazil: As a host, I would go by the NBC most recent American broadcast rights of $ 4.38. Because Brazil is a soccer country is in the American region and being the host, we expect higher broadcasting returns for local televisions. Broadcasters would be willing to pay higher for broadcasting rights since there will be timely viewing, which a considerable number of audiences will watch.

Question 2: Negotiating Prices Between IOC and Television Networks in the Five Countries.

What will determine the negotiation for the bidding of broadcasting rights in each of the five countries is the location and time zone differences in those countries from Rio de Janeiro. Considering that these television network companies also need to make a profit, the IOC will have to consider the projected returns for broadcasting the games in specific countries. In an organizational context, I would negotiate for relatively lower costs of broadcasting rights in countries with broader time zones from Brazil, such as China, Japan, and Australia. However, Britain and Brazil will enjoy the privilege of closer time zones; hence they will be ready to pay higher bids for the rights.

Reference

Miller, T. (1999). Televisualization. Journal of Sport and Social Issues, 23(2), 123-125. https://journals.sagepub.com/doi/pdf/10.1177/0193723599232001