ASSIGNMENT OF BROADCASTING RIGHTS AS A SOURCE OF FINANCING SPORTS ACTIVITIES

Abstract

The goal of this paper is to provide a review of the transfer of rights to broadcasting sporting events as one source of financing sporting activities and clubs through comparative practice and current legal regulations. Sports and the law are deeply intertwined, primarily due to the fact that sports are exposed to various challenges, ranging from doping, prevention of violence at sports manifestations, all the way to competition regulations, managing sports organizations and business processes. In this paper, we will analyze the positive legal regulations that enable the realization of income based on the right to broadcast. Sources of financing are necessary for the conduct of sporting activities. The most successful clubs generate the biggest part of their revenue through leasing broadcasting rights for sporting events and marketing. Broadcasting sporting events not only enables generation of direct revenue, but also removes the shackles of previously existing spatial barriers and thus contributes to the popularity of sports, athletes and their clubs. Occurrences such as the coronavirus pandemic have led to the organization of sporting events in controlled conditions, without the presence of an audience or with numerous limitations and restrictions. In such situations, numerous institutions have offered interactive forms of communication with the consumers (online museum tours, concerts, etc.), thus not only minimizing losses, but also maintaining contact with the audience. This situation has proven the significance of digital communication with the consumers. Even though the year 2020 went by without the previously planned Olympics and, in most cases, without sports fans in the stands, the sporting industry recorded a jump (from 388.28 billion dollars in 2020 to 440.77 billion of dollars in 2021). The growth in earnings was achieved predominantly due to the increase in media revenues.