Sport is Not Industry: Rethinking Sport Management

The commercialization of sports has blurred the lines between athletic competition and business enterprise. In Hallgeir Gammelsæter's paper, Sport is Not Industry: Bringing Sport Back to Sport Management, he challenges the prevailing notion of sport as a business sector. Instead, he argues for a sport-centered approach that respects its intrinsic values and institutional uniqueness.

The Over-Commercialization of Sport

Modern sport management heavily adopts business principles, treating sport as an industry where teams are brands, athletes are commodities, and fans are consumers. This shift has led to an overemphasis on financial performance, sponsorships, and revenue generation. According to Gammelsæter, the academic discourse in sport management is increasingly fixated on economic aspects rather than on the core values of sport.

Key Issues:

The dominance of managerialism in sport research and practice
Managerialism refers to the ideology that prioritizes efficiency, profitability, and business-like operations over the traditional values of sport. This has led to a growing focus on corporate governance, sponsorship deals, and financial performance rather than on the actual sporting experience. Researchers and practitioners are more inclined to study revenue models and branding strategies rather than exploring the impact of management decisions on athletes and their development.

A shift from sport as a social and cultural institution to a commercial enterprise
Historically, sport has been a medium for community bonding, national pride, and social inclusion. However, with the rise of commercial sports leagues and privatization, many sporting institutions now function more like entertainment businesses, prioritizing ticket sales, broadcasting rights, and sponsorships. This shift has altered the fundamental nature of sport, making it more about spectacle and financial gain rather than athletic excellence and fair play.

Lack of attention to how management affects the sporting human
The human aspect of sport is often overlooked in favor of financial metrics. The intense commercialization of sport has led to excessive scheduling, causing athlete burnout and physical strain. The pressure to perform under commercial contracts forces athletes into rigorous training regimes that prioritize short-term gains over long-term health and well-being. Additionally, decision-makers often neglect the mental health aspects of sport, failing to provide adequate psychological support for athletes facing intense scrutiny and stress.

Sport as a Unique Institution

Gammelsæter proposes that sport should be viewed as an institution distinct from business, politics, or public policy. He emphasizes that sport is an autonomous field with its own intrinsic logic, rules, and social significance. Unlike typical industries that prioritize financial outcomes, sport is driven by competition, fair play, and personal excellence.

Supporting Theories:

Institutional Theory
This theory suggests that sport exists within a broader inter-institutional system where different institutions, such as the state, market, and civil society, interact with and influence it. Sport, as an institution, retains its unique attributes—such as fair competition, teamwork, and ethical conduct—while simultaneously responding to external pressures like commercialization, policy changes, and globalization. Institutional theory helps explain how sport organizations balance tradition and innovation while navigating external influences without losing their core identity.

Critical Management Studies (CMS)
This perspective critiques the widespread application of business logic to all areas of society, including sport. CMS challenges the assumption that corporate-style management is the only valid approach, arguing that sport should be managed in ways that prioritize social values, athlete welfare, and ethical considerations over financial performance. By applying CMS, researchers can examine power dynamics in sport management, uncover inequalities in athlete treatment, and advocate for governance models that align with the fundamental spirit of sport.

The Risks of Sport Industry Mindset

By treating sport as an industry, several challenges emerge:

Athlete Exploitation
The increasing commercialization of sport has resulted in grueling competition schedules that leave little room for adequate recovery. Athletes are often required to participate in back-to-back tournaments, leading to physical exhaustion, increased risk of injury, and long-term health issues. Furthermore, financial incentives push athletes to perform at their peak constantly, sometimes at the cost of their mental well-being. The pressure to secure sponsorship deals and meet corporate expectations can lead to anxiety, depression, and even substance abuse as a coping mechanism.

Loss of Grassroots Development
The focus on financial returns has led to an imbalance in sport development, where elite competitions receive the bulk of investments, while grassroots programs suffer from underfunding. This trend is particularly concerning in developing countries, where access to quality training facilities and coaching remains limited. When sport is viewed purely as an industry, young talents from underprivileged backgrounds face fewer opportunities to advance, as financial barriers prevent their entry into professional systems. Instead of fostering inclusivity, commercialization reinforces exclusivity, prioritizing revenue generation over talent nurturing.

Ethical Concerns
The pursuit of profit has given rise to numerous ethical dilemmas, including match-fixing, doping, and corruption. In leagues and tournaments with high financial stakes, there is greater temptation to manipulate game outcomes for betting syndicates or personal gain. Doping scandals, fueled by the demand for superior performance, undermine the integrity of sport and place athletes' health at risk. Additionally, governance issues in major sport organizations often stem from conflicts of interest, lack of transparency, and bribery, all of which erode public trust in sport institutions.

Bringing Sport Back to Sport Management

To counter the dominance of commercial interests, Gammelsæter suggests refocusing sport management research and practice on the essence of sport. This means prioritizing athlete well-being, ethical governance, and the social impact of sport over mere financial gains.

Proposed Changes:

Shifting academic research from business-oriented studies to sport-centered inquiries
Research should focus on how management decisions impact athletes' development, mental health, and overall performance rather than prioritizing financial aspects. Universities and institutions should encourage interdisciplinary studies that explore ethical governance, community-based sport initiatives, and athlete-first management models.

Encouraging sport policies that safeguard fair play and equitable athlete treatment
Governments and sport governing bodies must implement strict regulations to protect athletes from overexploitation, ensure fair contract negotiations, and provide proper health and psychological support. Policies should emphasize the importance of balancing financial incentives with long-term athlete welfare.

Promoting governance structures that maintain sport’s integrity
Organizations should adopt transparent decision-making processes, enforce ethical standards, and establish independent regulatory bodies to oversee compliance. This includes preventing corruption, ensuring diversity in leadership, and fostering accountability in sport administration.

Conclusion

Gammelsæter’s argument challenges sport management scholars and practitioners to rethink their approach. Instead of treating sport as just another industry, there is a need to acknowledge its unique institutional character and ensure that its management practices uphold the integrity of competition. As the field continues to evolve, sport management must remain vigilant in preserving what makes sport special.

References

Gammelsæter, H. (2020). Sport is Not Industry: Bringing Sport Back to Sport Management. European Sport Management Quarterly. DOI: 10.1080/16184742.2020.1741013.

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