“Premier League football clubs don’t want to engage with fans. They want to sell them stuff.”

How business is throttling sport.

“Sport saturates everyday life.” That observation, made by Professor Stefan Szymanski in a video link address to Northampton University Business School’s Future of Sport conference recently, seems so obvious as to be bland. Yet it is worth thinking about the implications of that statement – what it means for people, and for sport itself.

Szymanski is a Professor at the University of Michigan Centre for Sports Management, and recognised as one of the world’s leading sports economists. Yes. A sports economist. Also at the conference were specialist sports marketing types, sports communication consultants, cultural policy and information studies academics, media technology wonks – and a smattering of sports journalists. There is, clearly, more to sport than a bit of fun.

That last line probably seems trite, but it’s there to make a point. Any critique of the modern sports industry risks being dismissed as the hankering for an imagined Corinthian past in which playing the game for its own sake outweighed vulgar commerce. It’s a dismissal that is too simplistic, although as the debate rages about the commercialisation of sport it is perhaps ironic to reflect that it was professionalism’s sweeping aside of the amateur ethos that helped football – the sport that dominates any discussion of sport or the sporting business in Britain – become a mass sport open to all.

But as the lines between sport and business become ever more blurred, sport risks losing the qualities that make it attractive to business. What appeals to many fans about sport is that it is not business. It does not, at its best, have the certainties that must make up a successful business plan, and it’s that element of the unexpected, of genuine competition, that draws an audience. I’m reminded at this point of the great footballer and journalist Danny Blanchflower irritating his producers in the early days of televised football coverage in typically contrary style by answering the question “Who do you think will win?” with the answer “I don’t know, that’s why they’re playing this game.”

The reason sports have become successful businesses, and the reason business wants to associate itself with sport, is because of what is perceived as the essential honesty of sporting competition. When that goes, so does the attraction. That’s why Lance Armstrong is such a hugely damaging figure, why many found it hard to watch athletics with the same enthusiasm after Ben Johnson’s astonishing sprint at the 1988 Olympics was revealed to be drug-fuelled. Sport is important to people. As conference organiser Alan Seymour said in his introduction, “The attention within the UK given to sport, its place in our lives and its contribution to language and culture makes it a major influence on attitudes, behaviour and community. The marketer who ignores sport as an influence on the consumer makes a major mistake.”

The buzzword of the day was “engagement”. Seymour spoke of “a growing necessity for sports properties and organisations to develop new platforms of association with their publics, audiences and loyal fan bases” and of a need to “understand the motivations that bring individuals to consume sporting events”. And exploring this ground threw up the tension that sits at its centre, a tension which boiled over into some lively exchanges throughout the day. Because for many sports fans, being treated as consumers who can be squeezed and sold to and exploited is not what draws them in. And seeing the sporting business appropriate the passion and culture fans have created in order to sell the "product" back to them really gets their goat.

After a slick opening presentation by US sports marketing expert Bill Sutton, full of talk of brands and positioning and opportunities, John Williams – the leading academic authority on fan culture in Britain and a Liverpool FC season ticket holder for 30 years – ventured the opinion that “a lot of what is wrong with sport is down to people like you”. When I spoke to Williams later he said that there was “too much technological determinism” on show. Engaging with fans surely had to mean more than seeing them simply as units to be sold at. Times football editor Tony Evans, who I was on a panel with, was typically blunt in his assessment. “Premier League football clubs don’t want to engage with fans,” he said. “They want to sell them stuff.”

The suspicion of many is that for all the high-falutin talk of achievement and passion and prowess, the bottom line is just about getting us to part with our money. And that makes sport just like everything else. That tension ran through the conference, through the demonstration by an unprecedented alliance of football fans at Premier League HQ this week, and through the huge demonstrations in Brazil, where a population sold by the marketers as football crazy is questioning the whole ball game.

Is engagement just another sales pitch, or could it, should it, be something truer to the word’s dictionary definition as something which involves? Would genuinely engaged fans help preserve the qualities that make sport attractive? In English Premiership football, as in America’s NFL, the crowd are “extras in a show put on at a stadium” said Szymanski. The product’s consumers have become part of the product, yet seem powerless to shape it. Over half of the Premiership’s revenues are generated globally.

And as Szymanski observed in his summing up, “Advances in new media over the last 20 years are completely changing the way we consume sport.” Perhaps most worrying of all, those changes can shape the sport itself. Szymanski used the example of cricket’s Indian Premier League and its huge reach. “Kids growing up wanting to play cricket will want to play 20/20,” he said. “That means the skill that will be rewarded is hitting sixes.”

Business and media sought to link with sport because of the power of its essential qualities. As they tighten their grip on sport, they risk destroying those qualities, and therefore its usefulness to them.

Photograph: Getty Images

Martin Cloake is a writer and editor based in London. You can follow him on Twitter at @MartinCloake.

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Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation