Page 3 - SPLS 104 Sporting Structures

Ways of generating income in a profit sporting organisation:

 Television broadcasting rights
 Sponsorships and endorsements

 Spectator fees
 Transfer fees
 Government funding
 Affiliation fees
 Equipment
 Fundraising

Pros of a profit sporting organisation:

 Bigger profits/Maximum profits
 Ownership and liability
 Financial rewards
 Wide range of business activities

Cons of a profit sporting organisation:

 Must pay taxes
 Balance profits with environmental responsibility

Examples of profit sporting organisations:

1. Sportsmans Warehouse – This profit sporting organisation retails and sells all
sporting equipment for all sporting codes. The stock and sell running shoes, cricket
bats, all types of balls, sporting apparel and equipment. They sell their products
directly to the customer and obviously have their own mark up price and this is how
they generate their income and profits.
2. ESPN – This is a broadcasting channel and they televise all sports around the world.
ESPN is paid by clubs and teams to be televised. This for-profit organisation makes

their income or broadcasting rights. This definitely a for-profit organisation.