The proliferation of sports television channels and their role in stimulating investment in Algerian professional sports clubs

Abstract

Sports clubs in Europe, North and South America, and several other countries around the world have become multi-billion dollar entities, listing their shares on global stock exchanges and experiencing phenomenal financial growth through diverse investments. Like other commercial, industrial, and financial companies operating on a profit-driven basis, this relationship has grown rapidly and become reciprocal in recent years. Investment in sports institutions has contributed to a qualitative leap in sports and economic infrastructure. Sports investment plays a vital role in the development of societies and countries and is one of the most important economic processes, yielding significant benefits and positive returns for building a future economic strategy that supports the commercial mindset of club management. Sports investments are among the most important contributors to the national income of countries like Brazil and Spain. Real Madrid, for example, achieves financial returns exceeding all expectations. For the seventh consecutive year, it has achieved the highest financial returns among the world's clubs, according to the "Money and Football" report published by Deloitte Consulting, which analyzes financial data for the 2010/2011 season. Real Madrid generated over €479.5 million in revenue, representing 38% of its total revenue. National and international television broadcasting rights for the various tournaments in which the club participates, 36% of marketing revenue, and 26% in the form of diversified investments. Specialized sports television channels are among the most important mechanisms that encourage economic institutions to invest in the sports sector. Sports media plays a significant role in promoting and motivating economic institutions to invest in sports. In Europe, for example, sports media contributes significantly to bringing businesspeople closer to the world of sports through the purchase of clubs and the financing of various tournaments. In Algeria, however, investments in the sports sector are low compared to global figures, despite the country's entry into the professional era. The current situation requires in-depth study before embarking on any sports investment project due to the lack of a clear commercial vision for this type of investment and the absence of the necessary transparency. This has contributed to the reluctance of economic institutions to take risks in pioneering sports investments, even though these investments are more profitable than in other sectors. Among the most significant factors contributing to the reluctance of institutions to invest are the numerous risks and difficulties, perhaps the simplest being the entanglement in the complexities and conflicts of the sports world, which are directly reflected in various media messages. These issues can distort the perception of the sector among investors, whether individuals or corporations. Furthermore, the fragility of the legal and regulatory framework governing the sports and media sectors hinders the attraction of a larger number of investors and prevents guarantees of investor rights and the confidence required to enter the world of sports. For sports investment to be viable and minimize risks, a comprehensive strategy to encourage sports investment is essential. This includes opening the audiovisual sector to the private sector by establishing specialized sports channels to address the media challenges that have recently intensified. This can be achieved through various mechanisms to elevate and moderate sports media discourse across all its forms, curb the fanaticism that leads to negative debates, and establish specialized programs and institutes to train personnel who understand the marketing dimension of sports and the role of sports media in the era of professionalism and satellite broadcasting.