Page 2 - SPLS 104 Barodien J, Assessment Task 1

PROFIT VS NON-PROFIT SPORTS ORGANIZATIONS

Sports and the sporting industry have evolved tremendously since its inception nearly 3000
years ago, its much more than individuals or teams hoping to get the better of one another
in their respective sport. (Bellis, 2019) Sports organizations are rapidly becoming these
business entities which affect the sport as now it needs to achieve goals and objectives on
and off the sports field. There are 2 types of organizations, those for profit and non-profit.
Personally, I feel the overall purity if sport is fading away as organizations are getting more

business focussed and business savvy. The emphasis of sports organizations is slowly leaning
towards more of profit margins then the actual sport teams. Arguably not all sports
organizations see this way, most organizations create profit and use this to spend on the
better infrastructure and development for the sport. While non-profit organizations use a
more holistic approach to achieve their goals and objectives. In this essay the main topics of
discussion will be the differences and similarities of the 2 types of organizations while
comparing their respective structures and explaining examples of each. We will also discuss
the benefits and challenges that each organisation brings to the table and they play a part in
sport structures.

When looking at the different organizations the clear difference between profit and non-
profit organisations is that profit organization’s main goal is it make money. This is created
by selling products or services. The for-profit sport organizations need to have clear

objectives and goals set in order to make money, while using their strengths and strategies
to compete in effective markets. These organizations take accountability meaning the
workforce know what is required of them and workers perform as they can gain from the
organization if they surpass their goals. It starts with the leadership team as they devote
time and energy into engaging with clients, fans, and customers. They use suppliers and
stakeholders to developing business plans in order to keep their competitive advantage and
outsource certain tasks in order to focus on said competitive advantage in the sport
industry.(Cross, 2011)What aids in these for-profit organizations is that they are persistent in