Sports As An Emerging Industry In Ghana: Prospects And Challenges

1. Introduction, Definitions & Need For Legal Framework

Great opportunity offered me by the School of Education and Leadership to be here this morning and share some thoughts on the topic “SPORTS AS AN EMERGING INDUSTRY IN GHANA: PROSPECTS AND CHALLENGES”.

First, let me admit that it will not your usual lecture but in my capacity as a painter, I am going to paint for you a picture of the subject so that you can better appreciate who we are as a people and how we all relate to the different aspects of the subject of sports.

Over the last three decades and more, I have witnessed the continuous cacophony of phrases uttered by all manner of people to the various effects that: “Sports Is Business”, “Sports Is Big Business”, and “Sports Is An Emerging Industry” and yet the facts on the ground do not support this claim.

Any industry, whether manufacturing, mining, energy, oil and gas, medicine and medical-care, heritage and construction, should be an organized economic activity with a legal regime, connected with the production or delivery of a particular product or range of products or services; or an activity that many people are involved in, especially one that has become excessively commercialized or standardized.

What we are witnessing is a thriving but un / disorganized sports business as an economic activity of various sub-activities and linkages from the performer to the managers to the broadcasting / events rights, merchandising and licensing to their supporting staff and services, with various professionals to boot without the requisite standardization, even as it has become excessively commercialized.

I must admit that sports as an emerging industry holds great potential of new career paths and professions, enhancing our international sports events management capabilities, broadening our new media landscape, growing new income streams through the application of ICT in all facets & at all levels of sports promotion and development to redefine and consolidate it as an emerging industry.

Permit me then to quote this: “I do not despise genius – indeed, I wish I had a basketful of it. But yet, after a great deal of experience and observation, I have become convinced that industry is a better horse to ride than genius. It may never carry any man as far as genius has carried individuals, but industry – patient, steady, intelligent industry – will carry thousands into comfort, and even celebrity; and this it does with absolute certainty.” – Walter Lippmann

This then sets the basis why we need sports as an ‘emerging’ industry, even though I dare to think that it has been too long in ‘starting to appear’, too long in ‘arising’, too long in ‘occurring’, and far too long in ‘developing’; and especially where this is one local industry that would not require us reinventing any industrial wheel.

NEED FOR LEGAL FRAMEWORK
The first attempt to provide a legal regime for the development and promotion of amateur sports then came with the arrival of Sir Sidney Abraham, a former Olympic athlete himself, and one time Attorney-General of the Gold Coast. It was upon the recommendation of this gentleman that THE GOLD COAST AMATEUR SPORTS COUNCIL was set up in 1952. The enactment of the Sports Council Ordinance, No. 14 of 1952 was therefore the very first legal effort by the central government to get involved in the promotion of sports. This also only reflected the spirit of self-help prevailing in those days and also only catered for amateur sports.

On assumption of office as Head of Government Business, Osagyefo Dr. Kwame Nkrumah stated inter alia that: “On my part I am fully convinced that mankind must constantly draw inspiration from the world of sports. For the sportsman’s world where a man is judged impartially on his own merits, regardless of any other considerations, a world where winners and losers meet as friends and where participants value honour and success.”

Not surprisingly, therefore Kwame Nkrumah decided to take personal charge of sports development in Ghana; and he had the credentials for the task as he was an outstanding athlete in his student days at Achimota School. He was the ‘Inter Co’ 100 yards and 200 yards champion and also a member of the College’s 4 X 100 and 4 X 220 yards relay teams.

With the creation of the Republic of Ghana, Kwame Nkrumah saw the opportunity to put sports on a higher pedestal, especially using it to build and project Brand Ghana and the African Personality trademark. He was later to remark. “On 1^st July, 1960, the day of our Republic, it dawned upon me that a more positive attitude should be adopted towards the development of sports in Ghana to ensure that within the shortest possible time our young nation took her rightful place among the great sports nations of the world. I accordingly set up the Central Organization of Sports and charged its Director – Ohene Djan with the responsibility of working out an effective, accelerated programme to hasten the dawn of that day.”

In that same year, therefore, President Kwame Nkrumah established the Central Organization of Sports (COS) and appointed Mr. Ohene Djan as its Director with extensive powers to run and control both amateur and professional sports at the local, regional, national and international levels. As a matter of fact, he set up the COS and appointed its Director in 1960 before the legal backing of Executive Instrument No. 17 dated 25^th January, 1964.

After this, was the passage of the National Liberation Council Decree (NLCD) 224 of 1968, which abolished the COS and set up the Sports Council, similar to the Gold Coast Ordinance, and after this the NLCD 330 of 1969 but given retrospective effect from 28^th November 1968; and then the Supreme Military Council Decree (SMCD) 54 of 1976 which had held sway until recent times when the Hon. B. T. Baba fracas led to its amendment by a Legislative Instrument.

What this means is that there has not been any legal regime that seeks to support and or facilitate the establishment of Sports in Ghana as an emerging industry.

To achieve this, there is the compulsive need to establish a new holistic legal framework for the facilitation, promotion, development, growth and administration of greater private sector driven sports within the spirit of the 1992 Constitution of Ghana.

We should call for a National Sports Bill that will provide an enabling platform to accelerate the evolution of sports as an emerging industry with the requisite incentives for increased, clearly-defined job opportunities for the youth, as well as avenues for the enhancement of talents and skills for self-development and to win laurels for the nation.

It should be a Sports Bill that promotes greater private sector partnership as engine of sports growth with improved self-sustaining funding structure for all facets of sports towards reducing the current over-reliance on central government.

Unfortunately for us as a nation, we all seem to downplay the socio-economic importance of sports and indirectly undermine its evolution into an emerging industry.

Since 1997, I have personally been involved with the drafting of several editions of a National Sports Bill to date, the fundamental framework that we require as a nation to enable us as a people to derive maximum benefits from the sports industry.

Now I will be looking at the two issues of Prospects and Challenges that are shaping and will shape Ghana’s ‘emerging’ Sports Industry, and proffer a way forward.

1. Prospects

So what are the possibilities of the ‘emerging’ sports industry happening soon or the likelihood that it will happen in the near future, especially as we will admit it is desirable for various reasons?

What exactly is this industry that is expected or certain to happen in what future, if you ask me, especially as we have speaking all the talk for the last three decades or more?

1. Structures Of Emerging Industry

When the Chairman and I were members of a Committee set up by the Ministry of Youth and Sports in 2002 to work on a framework for a new direction for the development, promotion, growth, marketing and management of sports, one of the fundamental changes we thought in our wisdom was key was the remodeling the then National Sports Council to NATIONAL SPORTS AUTHORITY in 2003. How many years ago?

We were convinced that the National Sports Council in its then state with a very bad public perception did not conform to the new direction of sports as an emerging industry with the capacity to support Ghana’s drive for greater public-private sector partnership as, they continue saying, an engine of growth.

At the time, we foresaw sports associations becoming ultimately independent, both financially and structurally, and therefore proposed a structural interface that will facilitate such a development, whilst at the same time setting new parameters for their operation.

Indeed, we were also mindful that in as much as any person or group of persons could form or join an association for any sport, either as professional or amateur in accordance with the 1992 Constitution, then the proposed National Sports Authority’s role will be crucial to the extent that:-

1. It will seek to provide an overall national policy direction for all associations and institutional sports bodies;
2. It will license all clubs, including Keep Fit, associations, institutional sports bodies, leisure centres, gyms, private sports centres of excellence, academies, colleges and other operators in the industry in conformity with laid down rules and regulations; and
3. It will regulate Ghana’s participation in all international sports competitions and seek to foster national unity through the organization of national as well as special sports festivals.

The National Sports Authority as we proposed was thus to be structured under the Ministry of Youth and Sports into a leaner, more effective market regulatory body, coordinating and setting the agenda for all stakeholders towards a holistic sports development and promotion in the country; and obviously with lesser staff strength than the National Sports Council.

What we were looking at was a regulatory body like the National Communications Authority or the National Tourism Authority or the Ghana Export Promotion Authority and not ‘new wine in old skin’ toothless structure we have now.

I am going to add to my painting here: consider 10,602 basic schools; 7,523 JHS; 3,178 SHS; 10 Polytechnics; 7 Training Institutes; 39 Universities; 17 Professional institutions; and 75 Technical / Vocational institutions.

Now add the number of 218 district, municipal and metropolitan assemblies and multiply by the over thirty (30) sporting disciplines to have a fair idea as to opportunities for recruitments and careers, if and only if we are ready to work towards the consolidation of sports as an emerging industry in Ghana.

Additionally, we proposed that for any association to qualify for any support, it should be seen to be operating in more than six (6) regions or more 60 per cent of district, municipal and metropolitan assemblies. This way, a group of people should not sit in Accra or Kumasi and form a national association and qualify to participate in international competitions.

1. Employment Opportunities

One major resultant benefit of any economic impact assessment of sports and sports events on the economy, within the context of sports as an emerging industry, will be the determination of the current levels of employment of the sector.

However, a cursory look without any empirical analysis paint a promising picture – from performers, technical personnel, managers, club owners, administrators, media, rights owners, broadcasters, stadia hawkers and concessionaires, kits manufacturers and shop owners, events owners, service providers, sports-related allied-suppliers, PE practitioners, and the sports academia as assembled here.

I could conjecture at least two million people employed by sports in the non-formal sector, either permanently, casual labour or as volunteers, from the community to district to regional and then finally to the national level.

We should be more than assured that if we begin to do the right things, take the rights steps, give up individual parochial interests for the greater good of us all, adopt and keep to the dictates of the industry, be more transparent in all our dealings and begin to think outside the box in all matters, we will not need the same number of years that has taken the developed states to grow our industry and catch up with global trends.

Years back, majority of our FAs across Africa could not see beyond the fact that the whole essence of qualifying to play in the FIFA World Cup was far more than a national prestige; and that it has always been a business proposition. I cannot imagine what winning the FIFA World Cup and earning more than US$50 million would do to the economy of say, Ghana?

These are the possibilities for employment opportunities that would accrue in the name of sports as an industry and not an emerging one.

For the record, hosting the 2010 World Cup created over 150,000 jobs and 15,000 volunteers against a total expenditure of US$5 billion for infrastructure, security, TV and marketing rights, constructions and services.

What we need to do is to lend ourselves to the rules of the game for the enhancement of sports as an emerging industry to be able to drive its agenda as an instrument for national development.

1. Sports Infrastructure / Equipment Development & Management

Another big part of the sports industry relates to infrastructure development and management of the facilities, including the recruitment of various handymen from the community through district to regional – a playing field, sports hall for indoor games, swimming pool and tracks for athletics.

Resultantly, the increasing demands will necessitate the attraction of entrepreneurs and investors to invest into a local production of sports kits and wears for the industry with other allied goods and services.

1. Manpower Development & New Career Paths And Professions

An emerging sports industry would obviously require specialized professions and skilled personnel with new career paths including:-

1. Sports Team & Club Management;
2. Sports Facility Management, including sports facility planning & land sue, sports facility development, and sports investment;
3. Sports Tourism Management with specializations in Sports Events (Sports Events Planning, Sports Events Administration, Sports Events Architecture, and Sports Events Safety & Security); Sports Tours; Sports Cruises; and Sports Resorts;
4. Sports Law & Risk Management;
5. Sports Marketing & Communications;
6. Sports Business & Personnel Management;
7. Sports Coaching – all 30+ disciplines;
8. Sports Financial Accounting;
9. Sports Fund Raising;
10. Sports Auditing & Compliance;
11. Sports Psychology, Behaviour & Religion;
12. Sports Economics;
13. Sports Architecture;
14. Sports Medicine & Fitness;
15. Sports Research;
16. Business of Sports Agents & Publicists;
17. Sports Sponsorship;
18. Sports History;
19. Sports Leadership & Governance;
20. Sports Journalism & Sports-Photo Journalism;
21. Philosophy of Sports;
22. Sports & Sciences;
23. Sports & Technology;
24. Sports & Health;
25. Sports & Education;
26. Sports, Culture & Development; and
27. Sports & African Culture.

1. Hosting & Organization Of International Sporting Events

Over the last three decades, the desire to host major sports events in all corners of the globe has become stronger as cities and nations have balanced the rising costs against the benefits that such events bring. Considerations for an improved image, updated infrastructure and venues, a healthier nation, an increase in sports tourism, positive economic impact and the chance to promote one’s nation on the world stage are the reasons why nations and cities are often prepared to spend on an event.

I am of the strong conviction that as a nation, we could still continue to use sports events hosting, not only to reinforce the Ghana brand, but also:-

• To re-define our sporting aspirations and strategies as we continue to explore new frontiers for post – tournaments’ stadia management;
• To select target and select events that we can bring to Ghana as part of an overall strategy to optimize use of existing infrastructure and maximize derived incomes therefrom;
• To position sports events bidding at the centre of Ghana’s plans to promote and develop the lesser known sports, increase her sports infrastructure and bring job opportunities and economic prosperity to her citizenry and cities;
• To win event competitions and increase receipts to local tourism and businesses;
• To gain extra use for our existing stadia or venues by attracting sports competitions; and
• To influence the national development agenda through the opportunity that is offered to match Ghana’s development objectives to sports events, in order to deliver long-term benefits and legacies that include city and national branding.

It is worth emphasizing that our hosting and organizing the Ghana 2008 Football and Ghana 2009 Hockey Africa Cup of Nations Championships bequeathed to us as a nation significant legacies, including six all-purpose stadia – Accra, El-Wak, Kumasi, Tamale, Sekondi-Essipun and the National Hockey; fourteen training pitches – some for selected Senior Secondary Schools at the four venues.

Other legacies included the new arrival and departure lounge at the Takoradi Airport; rehabilitation of the Kumasi, Tamale and Takoradi airports’ runway to enable night flights; the construction of the Tamale UDS Hotel Project; donation of eight VW vehicles to form the bulk of the transportation pool for the new Ministry of Youth and Sports; and fourteen Toyota vehicles – 2 Land Cruisers, 5 Hilux Pickups, 3 Avensis saloon cars, and 4 Corolla saloon cars; in addition to a considerable quantity of office furniture and equipment.

A greater number of computers were donated to selected senior secondary schools for their e-Library setups.

1. Merchandising, Franchising & Licensing

Licensed merchandise is a massive global market worth over US$170 billion per year, with sports a major component.

For sports rights owners of all sizes, licensing and merchandising is an essential part of the business mix, both producing revenue and re-enforcing the sense of fan identity and belonging. Licensing has become one of the most powerful contemporary forms of marketing and brand extension available to brand owners today and it is being used in ever-increasingly sophisticated ways.

Sports brands face a raft of issues from accessing new and developing markets to establishing the limits of brand extension; and from maximizing retail performance to fulfilling the ever-growing potential of new media.

It is an accepted fact that African, and more especially Ghanaian, football club owners cannot rely, solely, on sale of gate receipts to run such clubs with increasing administrative and operational expenditures.

It will be prudent, therefore to build football club brands that could maximize returns from merchandising and licensing to realize new revenue opportunities, as sponsors and sports – entertainment brands explore how to use licensing to take their brands to the consumer.

In our desire to promote sports as an emerging industry, it will be critical for the sustenance of sports associations, clubs, rights owners, and sports marketing professionals to develop and manage advanced, innovative sport licensing and merchandising programmes, providing the essential hands-on knowledge to create uniquely new licensing models for maximizing the value of sports brands.

1. Football Matters As Critical Part Of Emerging Industry

Football will continue to engage our attention of the industry more than other sports disciplines. During the 2014 Brazil FIFA World Cup Commission, I was invited and produced a document: “MARKETING NATIONAL TEAMS” for incorporation in the Final Report.

Surprisingly, the paper did not receive much media mention nor discussions of its contents and yet we still continue to wallow in our old way for how the National Teams should be funded.

My thoughts, plain and honest opinion: the central government should go off the payment of bonuses to the national teams, and for that matter all national teams.

Secondly, as a nation we should a national dialogue on evolving an acceptable remuneration regime for all sports, including football. The central government’s role should be restricted, if at all, to the Brand Ghana Office for good reason and I will discuss that later.

However, it will be prudent that the media retrieves copies of the Brazil 2014 Commission of Enquiry Report and engage the general public on the paper submitted.

1. The Case For Lesser-Known Sports: Their Appeal Not Dead Yet

I have consistently made the point every sports discipline can be marketed once we get the fundamentals of the sports industry right.

One thing that the hosting and organization of the 9^th AfHF Hockey African Cup of Nations, Ghana 2009 consolidated in my belief system was that all sports disciplines could be marketing reasonably well if as a nation we understand what we are dealing with.

That was one event of lesser-known sports that spectators would queue and purchase tickets at GH¢100.00 and watch live matches because we were doing something right. It means all other disciplines could be marketed including schools and colleges sports competitions.

1. Challenges

For the purposes of keeping time, I will only dwell on limited challenges including:-

1. Absence Of Legal Framework & Problems With Various Drafts of Bill

There is the need for the Ministry of Youth and Sports to work on getting the current National Sports Bill pass through the Cabinet to the Legislature for urgent consideration.

Even though I know the original thoughts of the Sports Bill of 2009 have been whittled down greatly leaving key matters fundamental to the growth of the sports industry such as Ambush Marketing out.

As I have been made to understand, they could be handled by Legislative Instrument, where possible those areas which have been expunged.

1. Lack of Trust Killing All Sports

The greatest challenge to the future of sports as an emerging industry is the lack of transparency amongst players in the industry, lack of trust borne out of sports people being swindled of their careers, of their reputations and of their future. Sports lovers and patrons are also being defrauded of their trust through alleged fix matches or matches of convenience; supporters defrauded of their emotional energies and their financial largesse.

Globally, there is the toxic epidemic of doping, cover-ups and extortion running across Russian athletics and spreading into sports international governing bodies.

Dope cheats, protected by the people paid to catch them. Extortion to ensure their complicity. The destruction of thousands of samples, the involvement of secret police. All this while those at the top of the sport face trial for corruption and money laundering. If this does not sound familiar, then what about our own tales of age falsification?

This is part of the problem of empty stadia across Africa and we need to work on trust – a word which is so so important in the growth of any industry.

Indeed, lack of trust is also affecting our sourcing for sponsorship for events branding and activations by prospective sponsors. When local sponsors hear all the stories published in the dailies and discussed on the electronic media, little wonder they easily shy away from any relationship with the sports industry.

1. Definition Of Sponsorship Against Financial Support

There is also the issue of when sponsorship is financial support as is the case of the Ghana National Petroleum Corporation (GNPC) and the Black Stars.

I recall the genesis of the Abosso Goldfields sponsorship of the Black Stars, an act so many people lay claim to, rather sadly without being truthful with themselves. Whatever, arrangement that formed the supposed sponsorship with the entry of the Umbro sportswear brand into the country, also formed the GNPC support for the Black Stars, the National Team.

I believe a review of the paper I presented to the Brazil 2014 FIFA World Cup Commission will expatiate on this matter.

If the sports industry in Ghana will thrive then sponsors should begin to pay real value for the rights that they purchase and also leverage same through proper activations and events branding so they can maximize returns to their investments.

1. Failure Of The Branding Of The National Sports Authority

Five years ago, the National Sports Authority without the requisite legal backing was rebranded at some cost.

On hindsight and considering the import of today’s exercise one can only conclude that it was a premature act. It also tells the failing of the Authority in its inability to play the role borne out of the necessity to change its name from the National Sports Council.

The challenge for the industry is how the Authority will wean itself of any tag and assume the leadership of an industry in transit.

1. It Is About Time The Government Left The Industry As A Major Player

I believe by now it is obvious that like all other industries, the Central Government restricted its participation to selected policy directions, leaving the regulatory to the National Sports Authority so that there will be a level playing field for all associations to grow.

This should be informed by the fact that increasingly it is becoming clearer by the day that the central government cannot continue with the business as usual of funding sports in all forms including the provision of social infrastructure.

1. The Space For Ghana Investment Promotion Centre (GIPC) To Occupy

The provision of sports infrastructure is key to the sustainability of the industry, admitting that there will be the need for innovative funding options from the private sector to be cushioned through incentives from the Ghana Investment Promotion Centre (GIPC) and the Ministry of Finance.

I will consider a tax holiday regime for private investors who will be interested to partner the central government through PPP to manage the existing facilities, whilst supported by greater incentive framework to provide new facilities. A case in hand is the Thumbay Group who will be taking over the Azumah Nelson Sports Complex and develop it into an international sports heath centre.

1. Way Forward

I will be brief so that I will allow more time for questions and clarifications.

1. Need To Bid For The Rights To Host And Organize The 12^th All-Africa Games

One thing the government should do as a matter of priority is to bid for the rights to host and organize the 12^th All-Africa Games so that it could be used to add to the infrastructure base that will facilitate the acceleration of the growth of sports as an industry, with the emphasis on the ‘lesser-known sports’.

The financials could be reengineered for greater private sector involvement to provide the facilities that would be needed for the Games.

1. Remuneration Regime For Performers & Non-Performers

I support any call for a national dialogue for all national associations, including football and the National Sports Authority to discuss and reach consensus on a remuneration / bonuses regime for all sports, with funding provided for by a Sports Trust Fund, properly set up as an independent body to mobilize resources to support associations on agreed terms and conditions.

There is also the matter of low salaries packages for sportsmen and women especially those plying their trade at all levels of the football leagues. It is about time we adopted the state’s minimum wages for an industry we want to see, if not more. The salaries and other rewarding packages will to some extent keep a level of our local stars to grow the local content of our football. This is an urgent issue the Ghana Football Association ought to tackle at their next congress.

1. New Offices For The National Sports Authority

I also strongly believe it is about time that the National Sports Authority secured offices outside the various stadia and left them for private sector management without any encumbrances.

The revenue streams from the management of these stadia will be invested into the industry to support the objects of the Sports Trust Fund.

1. TV Is One Of The Major Keys To Deliver Sports As An Emerging Industry

Television will always hold the key to attracting real sponsors into the sports industry. The National Sports Authority, on behalf of all Associations, should as a matter of urgency engage the Ghana Independent Broadcasters Association (GIBA) and the Ghana Broadcasting Corporation (GBC) towards working out a mutually beneficial relationship for the growth of the sports industry.

Possibly in Ghana, we could work on one big consortium of TV networks to establish and explore all the possibilities in a win-win situation for all parties

1. Sports Industry Holds Great Potential

Undoubtedly, the emerging sports industry hold great potential for varied reasons and the earlier we provide the legal framework to set it off, the better.

Thank you all for listening and to the School of Education and Leadership for the opportunity to paint such a picture of Sports as an emerging industry in Ghana: Prospects and Challenges for your students and others, and pray it was not too much of an abstract.

Thank you.