The Sport of Globalization By Mark Williams 27/03/2014 Mark Williams III B. A. Programme Political Science 27/03/2014 1 The facet of globalization known as cultural globalization is one that is widely recognized and understood today yet; this idea or practice rather has existed for a long time. Globalization, as defined by the Oxford English Dictionary, is the process by which businesses or other organizations develop international influence or start operating on an international scale1. From this definition we can gleam an understanding of what the idea of cultural globalization basically is, a spreading of ideas, values and meanings across cultures and nations. Cultural globalization as a phenomenon can be traced back throughout history and attributed to key events such as the introduction of horses to America and the introduction of potatoes to Europe. These two introductions are credited for having created major changes in the lifestyles of the people of the cultures they were introduced to. Cultural globalization today however, is considered by many to be a very polarizing subject. The globalization of the production and distribution of goods and services is a welcome development for many people for the fact that it offers those people access to products they would otherwise not have. The critics of this theory however are concerned that the changes that are and will be brought by cultural globalization will threaten the viability of locally made products and the people who produce or create them. For example, the new availability of foreign foods in a market, which are often at a cheaper price, can easily displace any local famers who have earned their living through working their family owned plots of land with the intention and practice of selling their goods locally. Cultural globalization though, does much more than simply increase the availability of foreign made consumer products and disrupt traditional producers. It is also 1 "Definition of Globalization in English:." Globalization: Definition of Globalization in Oxford Dictionary (British & World English). N.p., n.d. Web. 25 Mar. 2014. <http://www.oxforddictionaries.com/definition/english/globalization>. Mark Williams III B. A. Programme Political Science 27/03/2014 2 increasing international trade in the form of cultural products and services such as cinema, music, video games, fashion and publications. The expansion of trade in cultural products is increasing the exposure of all societies to foreign cultures. This constant and prolonged exposure to foreign cultural goods frequently brings about changes in local cultures values and traditions. Although there is no consensus on the consequences of globalization on national cultures, the theories critics strongly believe that people’s exposure to foreign culture can destabilize their own cultural identity. One of the issues of documenting cultural globalization however is to track a phenomenon or trends origin. The easiest and usually the most common practice is to generally earmark any foreign products is that they originate from “the west”. While this is broadly true, it doesn’t speak of the intricacies in its rise and reasons for its growth. It completely overlooks the overarching reasons as to how and why a product is suddenly desirable. One of the ways to analyze cultural globalization is through looking at isolated events and correlating them with events or trends that arise from them. For example, if an influential celebrity were to get an abnormally stylistic haircut and credit it to certain hair products, one could logically track its popularity rise through its occurrence in public and if there was a rise in said products sales. Similarly, with the sport of football we can see a lot of trends and after effects from its coverage across the planet and specifically in India. Football is not only popular, but probably the world's most globalized profession. The most talented Brazilian, Cameroonian and Japanese football players move from country to country more so than doctors, computer scientists, blue-collar workers or bank tellers. On the club circuit, rules have evolved so that Mark Williams III B. A. Programme Political Science 27/03/2014 3 international character defines top teams, and statistics show that success concentrates where globalization and commercialization flourish. This prompted many prominent economists, such as Branko Milanovic,2 to speculate about free mobility of labor in other professions. As doctors, computer scientists, and engineers are allowed to circulate without restriction, talent likely concentrates in the richest nations. But the international federation requires that players compete for their own country's teams in World Cup games. As a result, players hone their skills around the world and then return home for major competition. Thus, the federation puts the brakes to "leg drain" – football's corollary to globalization's "brain drain."3 In an Indian context however, though India is well noted for its large labor force, its footballers are not a prized asset. Only two Indian players have ever gone on to play football professionally in the United Kingdom, the first one being Mohammed Salim in 1936, well before the rise in popularity of football in India. This however, shows the growing effect of the game as; Indians might not be playing in the United Kingdom, but there is around 15% of the Indian men’s national football team playing at various clubs around the world with the Major League of Soccer (MLS) being a popular choice. Without question though, the dominant sport of choice in India is still cricket. Cricket is reported to have been introduced in India in the middle of the 18th century4 by British colonizers. The Board of Control for Cricket in India (BCCI), was formed in 19285 and is widely recognized as the most powerful cricketing body in the world, even usurping power from the International Cricket Council simply due to its huge fan following and dedicated following in India. Today, cricket is still the top dog of sports in India. It has built a fandom spanning http://yaleglobal.yale.edu/content/learning-globalization-football http://yaleglobal.yale.edu/content/learning-globalization-football 4 http://zeenews.india.com/cricket/History-of-Indian-cricket.aspx?nid=76 5 http://www.bcci.tv/about/2014/history 2 3 Mark Williams III B. A. Programme Political Science 27/03/2014 4 generations. Yet, according to the BBC, the fastest growing sport in India today is football6. The modern global game of football was first codified in 1863 in London. The impetus for this was to unify English public school and university football games. There is evidence for refereed, team football games being played in English schools since at least 1581. One of the most surprising events in to consider is that even though the British colonization on India is credited for having introduced Cricket and field hockey to India, the inherently British sport of football seems to have been curiously ignored. The reasons for this are unknown and probably arose from the class-based identity of the colonizers who arrived in India. Other than its sheer simplistic rules and bare requirements for equipment, the major reason for the growth of the sport in India can largely be attributed to its television coverage. The most watched football league in the world, with India being part of this rule, is the English Premier League. The Premier League is broadcast in 212 territories to 643 million homes and a potential TV audience of 4.7 billion people.6 In the 2010–11 season the average Premier League match attendance was 35,363, the second highest of any professional football league behind the German football league (Bundesliga),7 and stadium occupancy was 92.2% capacity.5 English football on television has been broadcast since 1937, and since the establishment of the Premier League in 1992 it has become a very lucrative industry. As of the 2013-2014 football season television rights for the 20-team Premier League is valued at close to £1bn each season7. The English Premier League only began being broadcasted in India in 20048. According to The Premier 6 http://www.bbc.com/news/business-21496112 Mark Williams III B. A. Programme Political Science 27/03/2014 5 League's chief executive Richard Scudamore, “The league has grown exponentially and we have concluded a (television) deal for the next three years”9. The deal, which Mr. Scudamore is referring to, was a renegotiated contract with Star TV, which forced them to pay a licensing fee of $1bn10. This deal highlights the fact that there is an undeniable fan base in India and that there is recognition of this fact. In 2013, Star launched 6 brand new channels-Star Sports 1,2,3,4 and HD1 and HD-2. The addition of these channels not only allowed Star TV to increase the number of matches they can show at any one time, but also permitted them to pursue an avenue which would allow them to increase their fan base even more, localized language commentaries. Sanjay Gupta, the chief operating officer at Star India has stated that they have “committed over Rs.20,000 Crore” in the development of the new channels with the goal of taking sport into languages beyond Hindi and English, with examples such as Tamil, Bengali, Marathi and Kannada. To promote this plan, Star TV recruited the Indian men’s cricket team Captain Mahendra Singh Dhoni, as the brand ambassador. Though this may seem like an odd decision, hiring the cricket team captain to promote football over the football team captain, the decision can be seen as attempt to woo people who have been lifelong cricket fans or Mahendra Singh Dhoni fans. It can also be interpreted class based appeal as Dhoni is considered by many to be the poster boy of social development in India, as he hails from a region commonly criticized across India as being backward. It simply goes to show just how intensely Star hopes to promote their new channels to this new demographic. http://www.televisionpost.com/television/sports-broadcast-a-three-horserace/ 8 http://www.televisionpost.com/television/sports-broadcast-a-three-horserace/ 9 http://www.bbc.com/news/business-21496112 10 http://www.livemint.com/Consumer/b2j9IeMRzaoVPlCHFYrbKI/Why-StarSports-is-retiring-ESPN-brand-in-India.html 7 Mark Williams III B. A. Programme Political Science 27/03/2014 6 With the brand of the English Premier League already well established in India, we can also see concurrent growths in brands associated with it. Nike is an American multinational corporation that is engaged in the design, development, and manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman andPhil Knight. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Hurley International and Converse11. While these are their own products, they also have exclusive deals with some of the largest football clubs in the world such as, Arsenal FC, Manchester United FC, FC Barcelona and Juventus FC. These deals basically give them the legal license to produce apparel and memorabilia with the image of the football club. Adidas, a German multinational corporation who are Nike’s largest rivals, also have similar exclusive deals with some of Europe’s top football clubs, including Real Madrid C.F. Though initially these deals were simply kit manufacturing deals, these deals have grown to include lines of apparel designed specifically about the football clubs. The reason for this can easily be seen in the rise in popularity of the sport. In an Indian context this growth can be tangibly seen. The following chart illustrates this point. Mark Williams 11 http://en.wikipedia.org/wiki/Nike, Inc. III B. A. Programme Political Science 27/03/2014 7 According to this chart, one can see that while there was a wave one of growth in international fashion brands in India in the mid 90’s, the second wave shows an unprecedented spike in growth. This second wave happens to occur right around the time when the English Premier League began being broadcasted in India, 2004. One can derive a general idea that there is a correlation between the two. The economic principle of supply and demand comes into play here. We can see that the arrival of the English Premier League on Indian broadcast created a demand for international apparel and accessory products associated with the Mark Williams III B. A. Programme Political Science 27/03/2014 8 league, such as Nike and Adidas. As a direct result, the highest selling single product for both Nike and Adidas are Manchester United FC and Real Madrid FC football jerseys respectively. Mark Williams III B. A. Programme Political Science 27/03/2014 9 Another MNC that has benefited from the assimilation of the English Premier League into Indian lives is PepsiCo. PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. PepsiCo entered India in 1989 and in a short period, has grown into one of the largest food and beverage businesses in the country12. While on the face of it, the claim of it being helped by football may seem completely nonsensical yet; the claim could not be any truer. One of PepsiCo’s subsidiaries is a company known simply as The Gatorade Company, Inc. Gatorade is a brand of sports-themed beverage and food products, built around its signature line of sports drinks. Gatorade is currently manufactured by PepsiCo and distributed in over 80 countries. Gatorade as a brand and a product was non-existent in India until 2004,13 when it was introduced to the Indian market through the prominence of its usage in televised English Premier League matches. Gatorade was introduced to India immediately after the English Premier League began being broadcasted in India. The demand created by its extensive usage by footballers created an open market for PepsiCo to come in and exploit, giving them a complete monopoly over the energy drinks business, as they were the first to do so. After analyzing all of this, the question still remains; does football itself actually promote globalization? The answer is quite frankly, yes. Footballs rise in popularity pushes more people towards the sport, be it as a player, coach, manager, agent or simply a fan. It creates job opportunities, expands people’s linguistic inclinations and most importantly creates a universality of acceptance. 12 13 http://pepsicoindia.co.in/company/about-pepsico.html http://pepsicoindia.co.in/brands/gatorade.html Mark Williams III B. A. Programme Political Science 27/03/2014 10 People like Thierry Henry, the Men’s French National Football Team’s all time highest scorer, can go to England; a completely foreign country, and still be called a hero and worshipped by people who share no cultural background with him other than a love for the game. In 1993 the “Let’s Kick Racism Out of Football” campaign is launched by the Commission for Racial Equality and the Professional Footballers Association (PFA). This campaign aims to remove all forms of racism in the sport. The effect this campaign has had can be seen both on the field and off of it as not only are players of different ethnicities playing on the same team becoming a common practice, football clubs who’s fans have historically been noted for their racist behavior have managed to greatly reduce the poor behavior of their fans and have worked to eradicate it. In February 2013, Manchester United FC announced that after a yearlong survey they had come to the result that their global following amounted to 659 million people14. In five years, purportedly, Manchester United's following has gone from 333 million, or thereabouts, to 659 million. So almost a doubling of people following Manchester United in five years15. Of the 659 million figure, Kantar, the worlds leading research, data and insight company16, says roughly half (325 million) live in the Asia Pacific region, 173 million in the Middle East and Africa, 90 million in Europe and 71 million in the Americas. The fact that a small group of rail workers in the industrial north-west of England formed a football team called Manchester United in 1878, they would never have fathomed the club would become the world’s most valuable sporting brand17. In a nutshell, this is the power of globalization. The fact that a football team playing in England could have http://www.bbc.com/news/magazine-21478857 http://www.bbc.com/news/magazine-21478857 16 http://www.kantar.com/ 17http://www.afr.com/p/national/from_rail_staff_to_fans_man_cashes_jAonSzR Oaf49K2l5kNGRWK 14 15 Mark Williams III B. A. Programme Political Science 27/03/2014 11 worldwide support is quite staggering yet can still be believed due to the age we live in. The outreach of this club shows the cultural impact it has had as supporting a football club has become a well-accepted part of our society. Bibliography"Definition of Globalization in English:." Globalization: Definition of Globalization in Oxford Dictionary (British & World English). N.p., n.d. 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Programme Political Science 27/03/2014 12 http://www.theguardian.com/football/2012/may/29/manchester-unitedpremierleague http://www.premierleague.com/en-gb/about/a-growing-fan-base/ http://www.kickitout.org/about/chronology/ http://www.globalization101.org/cultural-impacts-of-globalization/ http://www.unesco.org/new/en/culture/themes/culture-anddevelopment/the-future-we-want-the-role-of-culture/globalization-andculture/#topPage http://www.wisegeek.com/what-is-cultural-globalization.htm http://www.who.int/trade/glossary/story012/en/ Graphshttp://www.soccerbible.com/news/football-shirts/archive/2012/10/09/theworld-s-best-selling-club-football-shirts.aspx http://www.udel.edu/fiber/issue4/world/internationalbrands.html