Centralized sports charity could do much more for so many

By MARC POLLICK
Staff writer

Published December 24, 2007 : Page 15,
Sports Business Journal

The sports industry is a finely tuned juggernaut defined by cutting-edge business strategy and innovative
delivery systems that aspire to great efficiency and even greater profits.

There are many charitable efforts and initiatives, a large proportion of them decentralized and
inefficient. They are carried out by individuals, teams and even entire leagues all attempting to do good
for their communities.

But there exists no central organization whose mission it is to assess, organize and galvanize the power
of the sports industry for good. The time has come to imagine, and then create, the Sports Industry
Foundation.

New Orleans Saints players help build a playground as part of NFL’s partnership with United Way.
More than 60 years ago, a similar type of organization was created successfully by the entertainment
industry. In 1942, Samuel Goldwyn, Humphrey Bogart, James Cagney and the Warner brothers
established the Entertainment Industry Foundation.

Their goal, according to the EIF Web site, was “to unify Hollywood’s generous giving in order to
maximize the amount of charitable dollars raised annually, and guarantee that worthy charities receive
those contributions.”

Supported initially by all the Hollywood studios, EIF soon became the central address for the
philanthropic work of the entertainment industry. As such, it was a sort of United Way throughout the
industry, even offering payroll deductions (workplace giving) to allow those in the industry to easily
participate in its charitable works.

The sports industry has no such centralized address that athletes, executives, leagues, corporations,
media and sponsors can look to for expertise and leadership. Imagine the efficiency such an
organization might achieve.

Harnessing the power of sports

The proposed Sports Industry Foundation would seek to harness the collective power of the sports
industry and identify and leverage its unique assets to raise both awareness and funds for critical health,
educational and social issues. This could be done not only in our nation but also, because of the global
reach of sports, throughout the world.

In the charitable space of sports today, there are player, team and corporate foundations, leaguewide
community assistance initiatives and varying degrees of support from companies in the form of
sponsorship for all the aforementioned charitable entities. These efforts, while completely well-
meaning, are widely inefficient.

Among individual athlete foundations, marquee players such as Tiger Woods, Andre Agassi and Lance
Armstrong tend to get the lion’s share of endorsement dollars. Everyone else competes for what is left.

Team foundations, surprisingly, are rarely if ever funded by the teams they represent. Instead they
compete for sponsor and fan support alongside individual athlete foundations, often enlisting the
support of their athletes to help them raise money.

The major pro sports leagues have leaguewide initiatives. Some have high-profile partnerships with
one major charity. For example, the United Way for the NFL and Boys and Girls Clubs of America for
Major League Baseball.

Each league has a centralized community relations office that provides support for its constituent team
community relations departments. I am unaware of any league ever conducting a significant study of
ROI for its charitable investments, either at the team or league level.

Sports in general, and sports leagues in particular, wield an enormous power in the marketplace. The
leagues are looking carefully at maximizing their sports’ charitable initiatives.

Money invested in evaluating the effectiveness, efficiency and success of those initiatives is at least as
important as that invested in evaluating any other segments of their business strategy.

Some might argue that it is even more important, for in addition to enhancing marketability and
increasing brand loyalty, human lives are being positively affected.

Enlarging a fan base and increasing the loyalty of current fans could and should be important outcomes
of a carefully vetted charitable strategy. Furthermore, adding value for, and translating that loyalty to,
corporate sponsors would be both desired and greatly appreciated.

Centralized opportunity

Noticeably absent in the haphazard maze of charitable options as now deployed is a centralized
opportunity for sports executives to contribute in their workplace. If given an easy and reliable
opportunity (such as in the entertainment industry), they might just encourage greater giving by those in
the industry wishing to give something back.

In addition to efficiency, there is an equally compelling reason to have a central body for sports
philanthropy. The issue of best practices in philanthropy has come late to the sports world.

Many athlete foundations struggle due to lack of sufficient resources and professional management.
Having a centralized address for sports industry philanthropy would allow for the emergence of
leadership that could establish high standards and offer the necessary support and resources to sustain
them industrywide.

In an industry as powerful and influential as sports, given its universality and potential to bring people of
diverse backgrounds together in common purpose, not having an enlightened and effective sports
industry foundation is truly a great void. It is one that could and should be remedied immediately.

The opportunity to do so much more, for so many — and in the process strengthen teams, leagues and
brands — is a combination that cannot be beat. In this season of giving, it is time for the sports industry to
be as strategic about its philanthropy as it is about every other aspect of its business.