SPEX209 Mid Term

Here are comprehensive, integrated notes based on the SPEX 209 lecture slides you provided (Weeks 3-6). The notes are organized by topic, synthesizing information from all files, and are formatted for study and review.

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### SPEX 209 Part 1: Comprehensive Study Notes (Weeks 3-6)

Core Topics: Non-Profit Funding, Sponsorship & SCA, Partnerships, Capacity Building.

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### Part 1: Non-Profit Funding in Sport (Weeks 3)

#### 1.1 The Non-Profit Landscape: Donations & Grants

- Definition: Non-profit funding comes from the volunteer and public sub-sectors.

- Donations: Smaller-scale fundraising (e.g., car wash, raffle). Can be done by any individual or group.

- Grants: Larger sums from dedicated trusts. Only incorporated societies can apply for most grants.

- Incorporated Society:

- A non-profit group with a common purpose, min. 10 members, and a legal identity.

- Can own property; members have limited liability. Must have a constitution and adhere to the Incorporated Societies Act (1908 & 2022).

- Major Grant Sources in NZ:

1. Community Trusts (e.g., Community Trust of Otago). Funded by returns on invested capital, making them vulnerable to international market volatility.

2. Gaming Machine (Pokie) Trusts (e.g., Pub Charity, Southern Trust), TAB, Lotto.

- The Role of Gaming Machine (Pokie) Revenue:

- By law, ~40% of all EGM revenue (approx. $300m) must be returned to the community.

- Comprises approx. 20-40% of amateur sport club revenue in NZ (e.g., Otago Rugby Football Union relies on it critically).

- In 2022, ~$166m went to the sport sector (80% to clubs, 20% to RSOs).

- Moral Jeopardy (Adams, 2016):

- The ethical conflict arising from accepting proceeds from addictive consumption (gambling).

- It jeopardizes an organization's purpose, autonomy, or integrity.

- Common defense: "If we don't take the money, someone else will" (Barrett & Veal, 2014).

- Key tension: Using a social 'bad' (gambling) to fund a social 'good' (sport). This is an ongoing concern in NZ sport, especially with new online casino legislation (2026).

#### 1.2 Government Investment in Sport (Sport NZ / Ihi Aotearoa)

- Funding Environment: Competitive, framed by neo-liberal and functionalist policies.

- Neoliberalism: Distrust of public sector → spending cuts → organizations compete for funding by showing compliance with policy & efficiency. Encourages commercial interests to fill gaps.

- Functionalism: Society as a system of interrelated structures. Sport funding is tied to producing social integration, stability, and measurable outcomes (e.g., health, 40% female representation on boards, medal prospects).

- Sport NZ Group Revenue & Expenditure (approx.):

- Revenue: $32m Crown (Sport & Rec) + $74m Crown (HP) + $82m Lottery Grants + $7m TAB + $8m investment returns.

- Expenditure: $113m Sport & Rec + $83m High Performance Sport + $3.4m PM Scholarships.

- Sport NZ Strategy 2020-2032:

- Three 4-year plans. Vision: "Every Body Active."

- Outcomes Framework & Te Pākē o Ihi Aotearoa (Māori Outcomes Framework).

- Investment Categories: Partnerships, Funds, Programmes.

- High Performance (HPSNZ) Funding (2025-2028):

- Focus: "Integrated, competitive, agile HP system."

- Key shifts: Significant funding increases for Podium Sports (Rowing, Cycling, Yachting) vs. cuts to Team Sports (Hockey NZ lost -$1.43m p/a, NZ Rugby -$250k, Football Ferns -$200k).

- Case Study: Yachting NZ received increased funding while under integrity investigation, highlighting complexities and potential controversies in funding allocation.

- Take-home: Neo-liberal funding rationalizes public spending; functionalist system produces specific outcomes. Moral questions (gambling revenue) and wellbeing of HP athletes are growing concerns.

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### Part 2: Commercial Funding - Sponsorship & SCA (Week 4)

#### 2.1 Name Association vs. Sponsorship

- Name Association:

- Loose, short-term relationship. Common in non-profit/volunteer sport (e.g., Otago Touch Rugby).

- Limited metrics, often mislabelled as sponsorship.

- Sponsorship:

- Measurable, long-term organizational strategy to achieve corporate objectives (increased awareness, enhanced image, sales, media coverage, branding).

- Global spend was $97.4bn in 2023 (projected $112bn by 2030).

#### 2.2 Sustainable Competitive Advantage (SCA) through Sponsorship

- Definition (Amis et al., 1995): A sponsorship that provides a unique, inimitable advantage.

- Two Key Components for Achieving SCA (Maanda et al., 2020):

1. Perceived Customer Value (PCV):

- Strengthens brand awareness, brand equity (the "halo effect").

- Example: NASCAR fans are 3x more likely to buy sponsor products; 57% loyal to sponsor brands.

- Caution: Avoid assumptions about PCV. An Australian study (Doyle et al., 2021) found 71% of fans supported women's teams with a different brand portfolio than the men's team (e.g., Canberra Raiders men & Sydney Sixers women). This has major implications for team branding and sponsor strategy.

2. Differentiation:

- The sponsorship must be unique and not easily copied by competitors.

- Example: Bayleys partnership with Matatū ("connected to the people and places throughout the South Island").

- Measurement Challenges (Crompton, 2004; dos Santos & Moreno, 2018):

- Many companies spend $0 on evaluation.

- Difficult to isolate sponsorship from the broader marketing mix.

- Brand recognition can be short-term/flawed.

- Ambush marketing (Lin et al., 2023) and individual star power (e.g., Ronaldo trade) can undermine team association value.

#### 2.3 Brand Extension as an SCA Strategy

- Definition: Leveraging consumer recognition into new product/service offerings (Campbell & Kent, 2002).

- Types of Extension:

- Physical Products: Gatorade → energy bars.

- Geographical: NFL's expansion into Europe (NFL Europe, closed 2007 with $30m annual losses) → re-strategized to hosting 4+ international games per season (e.g., UK, 15 million self-described fans in 2024).

- Technological/Virtual: NFL's Madden Championship Series (esports). VP: "Esports is a key accelerator to growing the NFL... enables new ways for young fans to engage."

- Values-based: Budweiser & NWSL (2019).

- Driven by celebrity athlete (e.g., Megan Rapinoe).

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### Part 3: Organisational Partnerships (Week 5)

#### 3.1 Fundamentals & Drivers

- Definition (Mohr & Speckman, 1994): Strategic relationships between independent organizations with compatible goals to achieve outcomes unattainable alone. Not a donation or sponsorship.

- Drivers (Neoliberalism & Institutionalism):

- Neoliberalism: Reduced public funding → need to share costs & expertise.

- Institutionalism: Organizations react to their environment, often copying each other (**isomorphism**) to appear legitimate (Slack & Parent, 2006).

- Benefits (Ahuja, 2000; Oria et al., 2021):

- Mutual benefits: societal, technical, commercial.

- Specific reasons: limited capital budgets, reaching wider audiences (education/health), consolidating programmes, CSR, longevity of funding.

#### 3.2 Partnership Case Studies

- Success & Failure Factors (Babiak & Thibault, 2009):

- Success: Clear goals, timelines, evaluation, communication, management.

- Failure: Limited engagement, over/under-managed, changing priorities without consultation, limited evaluation.

- Example: Concussion Study (Commercial + Public):

- Partners: World Rugby, NZ Rugby, Otago Rugby, Prevent Biometrics, Otago University.

- Outcomes: New training programmes (Tackle Ready), smart mouthguards in HIA protocols, better knowledge of concussions (esp. youth/women).

#### 3.3 Bicultural Partnerships in Aotearoa (Te Tiriti focus)

- Context: 1998-2014, Māori participation in sport decreased by 8.4%. Sport NZ historically Pākehā-dominated.

- Sport NZ Cultural Capability Programme (3 phases):

- Phase 1: Tū te Ihi - Foundational modules (Te Tiriti, Whanaungatanga, Māori worldview, Te Reo).

- Phase 2: Tū te Wehi - Embedding Māori outcomes into strategy & investment (e.g., $1.25m for Te Huinga Tākaro, a collective of 12 Māori NSOs).

- Phase 3: Tū te Wana - Supporting the wider sector to build cultural capability.

- Te Whetu Rehua Framework: A 5-criteria continuum to determine 'as Māori' participation (Whānau/Hapū/Iwi/Māori; Governed/Managed/Delivered; activity type).

- Case Study 1: CLM & Healthy Active Living Partnership. Challenges urban Pākehā view of activity; uses Te Whetu Rehua on marae, implementing whare tapa whā.

- Case Study 2: Netball NZ's Poipoia. A strategic plan gifted by Māori to NNZ. Challenge: overlaying cultural change onto existing structures led to initial lack of deep engagement.

- Take-home: Sport in Aotearoa has far to go to honour Te Tiriti. Māori must be at the centre of decision-making, not having decisions made for them.

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### Part 4: Capacity Building (Week 6)

#### 4.1 Definitions & Perspectives

- Two Perspectives (Cairns et al., 2005; Rossi et al., 2024):

- Organisational Capacity: Improving internal functions to achieve objectives.

- Capacity Building: A strategic process where organizations work to better deliver their mission, improve the sector, and develop community 'good'.

- Core Idea (Jones et al., 2020): Cultivating and strengthening the unique elements that allow organizations to function well. Mobilizing people, ideas, and money.

#### 4.2 Accountability & Reporting as Capacity Building (Cairns, Harris & Young, 2005)

- Shallow reporting: "Proof" of development (e.g., "20 new coaches trained").

- Deep reporting (Strategic): Showing reflection and long-term impact (e.g., "20 new coaches, and 15 are still involved 12 months later, looking to upskill"). This is key to organizational and sector development.

#### 4.3 Internal & External Influences on Capacity

- Internal Influences (Sharpe, 2006; Millar & Doherty, 2016):

- Financial: Develop & deploy financial capital (e.g., Waitaki Events Centre project).

- Human: Develop & deploy personnel, including volunteers and 'secondary' volunteers (e.g., Bubs Reweti, volunteer netball coach).

- Structural/Social: Systems, processes, philosophy, culture.

- External Influences (Sharpe, 2006; Patil & Doherty, 2023):

- Legal (Health & safety) – enables safe environments.

- Public Policy – health promotion (e.g., Sport Wellington & heart care).

- Financial/Human Resources – professionalisation of sport orgs (e.g., requiring professional skills on a Board).

- Societal Values – positive capital development, community development.

- Public Trust – organisational charters for mega-events (e.g., FIFA Women's World Cup 2023). Trust is crucial for NSOs.

- Organisational Competition – competitive funding can reduce funding for smaller sports.

- Demographic Change – recognition of ageing pop., disabilities, ethnic diversity, gender/sexuality fluidity (impacts structural capacity & inclusion practices).

- Mega-events: Can build capacity, but NSOs with strong strategies leverage more benefits; little development for others (Girginov et al., 2017). Example: FIFA WWC 2023 had a net benefit of $109.5m (+148% vs projection), but does public trust NZ Football to invest in the women's game?

- Disability Sport (Kitchin et al., 2019): Mainstreaming faces challenges (skills, desire, volunteer commitment, culture). Successes include rule adaptations, better understanding of medical issues, new networks.

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### Exam & Assignment Information (Key Reminders)

- Mid-Semester Test: 11am, 14 April, BARNT, 201 Great King Street.

- 25 marks (25% of grade), 25 MCQs.

- Covers: Lecture notes from Part 1 only (not readings from quizzes/assignments, though lecture readings are referenced).

- Written Assignment: Due 5pm Thursday 2 April via Turnitin.

- No AI statement required.

- Late penalty includes public holidays (Fri 3, Mon 6 April) and university holiday (Tue 7 April).

- Technical issues: Logout/delete cookies/change browser. Take timestamped screenshots of any error messages.

- Future Study: SPEX 314 (Semester 2) covers strategic development, leadership, mega-event legacy, diversity & inclusion, crisis management.