About the geopolitical shift of power in global sport business - part 1: Is the West better than the Rest?
Last year I travelled from India, to Turkiye, back to India, and finishing my travels in the United Arab Emirates before heading home to Melbourne. It was yet another eye-opening journey (we are never too old to keep learning) and there was too much to ponder to fit into one blog posting. That is why I am going to do this in a multipart posting titled “About the geopolitical shift of power in global sport business”. I aim to conduct an objective exploration into the intricate dynamics shaping the landscape of sport on a global scale. Specifically, my focus in this first of three postings, “Is the West better than the Rest?”, is to examine the geopolitical dimensions influencing power structures within the realm of sport business.
I endeavour to do this from a perspective of neutrality and objectivity… I know… this will be a challenge being a privileged white middle-aged male who grew up the Netherlands and resides in Australia. However, it is my intention to refrain from endorsing or denouncing any political intent or system, religious ideology or cultural paradigm, but rather consider them in the context of building a power base in the world of sport business. My aim is to dissect and understand the multifaceted factors that contribute to the shifting tides of influence, all while presenting a comprehensive and balanced view of the geopolitical dynamics at play.
My approach draws inspiration from the scholarly endeavours of Yuval Noah Harari, who, in his analyses of globalisation, explains the nuanced intricacies of why globalisation as an ongoing process is under attack. Harari's insights serve as a guiding principle for maintaining an analytical lens that allows me to delve into the geopolitics of sport business with a commitment to clinical analysis.
Harari critically examines the ramifications of globalisation, particularly its impact on economic dynamics. He underscores the heightened economic disparity resulting from global interconnectedness, emphasising an uneven distribution of benefits. He expresses concern about the potential cultural uniformity brought about by globalisation. The ascendancy of a global culture, he argues, poses a threat to local traditions and identities. In my own recent experience in India, this rings very true. Although local culture and traditions in India are very different (thankfully) from where I live and where I have grown up, digital access to almost everything by almost everyone is monoculturising the world we live in. Algorithms polarise and standardise the content that most of us will view. Increasingly most of us get exposed to what is ranked at the top of the algorithm driven content apps.
Central to the analysis of Harari is the concentration of power in the hands of select entities—multinational corporations and governments. It has to be noted that during the last decade, the market capitalisation ranking of the largest multinational companies on the globe shifted from being dominated by finance and energy companies to data (read algorithm driven) companies. This concentration prompts considerations regarding accountability and it challenges the principles of democratic governance.
In light of the above, Harari acknowledges the technological advancements inherent in the fourth wave of globalisation – the digital revolution – notably automation and artificial intelligence. While these innovations offer promise, they simultaneously introduce uncertainties by reshaping economic structures and displacing established roles.
Harari's narrative does not advocate wholesale rejection of globalisation. Instead, it calls for a measured reflection on its consequences and emphasises the necessity of an ethical framework to ensure equitable distribution of the advantages of global interconnectedness.
It took me a long time in terms of accumulating (life) experience, frequent and extended global travel and engaging in life-long education to more critically reflect on my own ‘Western’ culturisation. I have come to realise that to assert the ‘West’ as unequivocally superior in the global sport business landscape is naïve at best when we navigate through a historical terrain marked by complex legacies of colonialism, imperialism, male dominated power structures and last but not least - capitalism. Examining the historical footprint of the so-called West reveals instances that challenge any claim to moral, cultural, or political superiority.
The invasion of foreign countries, for instance, the military intervention in Iraq by the United States, stands as a stark testament to the geopolitical assertiveness often associated with Western powers. This is just one example of an intervention that is characterised by controversial motivations (weapons of mass destruction…!?) and the subsequent fallout, and it raises questions about the ethical underpinnings of Western geopolitical decisions.
Furthermore, the practices at Guantanamo Bay, where detainees faced prolonged incarcerations without due process and instances of torture, exemplify a departure from the democratic ideals professed by Western nations. Such actions not only cast a shadow on claims to moral superiority but also serve as reminders of the ethical complexities inherent in the pursuit of geopolitical objectives. I guess what I am saying is that ‘as humans’ we all struggle with conceptions of humanity, rights, and what are or should be universal principles.
Zooming in on more recent developments, the rejection of the Australian referendum proposing the inclusion of an Indigenous voice in the constitution unveils a contemporary challenge to notions of equality and inclusivity. The 'No' vote underscores the persistence of systemic issues, signalling that also in established Western democracies, the journey toward recognising, acknowledging and appreciating diverse voices and perspectives is ongoing.
These instances collectively emphasise the need for a nuanced examination of power dynamics, steering clear of assumptions of Western superiority. The historical legacy of colonialism and an imperial attitude towards making capitalism work (more) for those in power, coupled with contemporary geopolitical actions and internal challenges to inclusivity, reminds us that the West is not immune to complexities and contradictions. In navigating the shifting currents of global sport business, a comprehensive understanding requires a critical evaluation that transcends geographical and cultural boundaries, recognising the multifaceted nature of power dynamics in our interconnected world.
In previous postings I have already argued from different perspectives that it is evident that sport stands as one of the few remaining truly global platforms. On the back of digital technology sport is (again) experiencing a surge in planetary outreach and relevance. The simplicity of its fundamental principles, encapsulated in the universal language of 'win or lose,' renders sport a unique global communication platform that can transcend cultural and linguistic barriers.
Sport, particularly in the space of fandom, thrives on irrational passion—a potent force that has, interestingly, become a strategic tool for the new wave of mega-rich buyers and owners who increasingly dominate the sport business landscape. The intersection of irrational passion, the digital revolution, and the inherent global communicative nature of sport has catalysed what can be deemed a second value explosion in sport business. The first, marked by the explosive growth of sport media rights during the television era, will soon pale into insignificance when compared to the transformative impact of the ongoing digital revolution.
The digital revolution, with its unmatched reach and personalised upscaling capabilities, has ushered in a new era in sport business. The convergence of technology, fan passion, and the global communication platform of sport serves as the epicentre of an accelerating geopolitical shift in the business of sport.
The monetary foundations of the sport business were laid decades ago, gaining momentum in the 1960s in the USA with the commercialisation of baseball, basketball, and American football, followed by football's surge in Europe in the 1970s. This was followed by the global expansion of the Olympic Games and other sporting competitions such as the FIFA Worldcup in the 1980s. However, whilst those transitions to a more business fuelled sport economy were significant, the current sport business landscape is undergoing a seismic transformation. This transformation, fuelled by digital advancements and the strategic exploitation of sports fandom, sets the stage for a nuanced exploration of the geopolitical shifts unfolding in global sport business—a journey that I will embark on in two more blog posts. To be continued…