Document Type : Research Paper
Authors
1
Assistant Professor, Department of Sport Sociology and Psychology, Sport Science Research Institute (SSRI), Tehran, Iran
2
PhD Student of Sport Management, Faculty of Sport Sciences, Shahid Chamran University of Ahvaz, Khuzestan,, Iran
Abstract
Background and Purpose
In contemporary society, sports have evolved into a significant industry that plays a pivotal role in the economic growth of nations worldwide, particularly in developed countries (Ziming, 2021). The sports industry is recognized as one of the most profitable sectors globally, contributing substantially to national economies through various channels such as sports events, merchandise, media rights, and sponsorships (Jankovic & Stojanovic, 2019). One of the critical stimulants of economic activity within this sector is the organization of competitions and major sports events, which create ample advertising opportunities and foster interaction between industry, business, and sports (Zolfaghari et al., 2023).
Sports sponsorship, a commercial agreement where an organization or company provides financial and non-financial support in exchange for associating its brand with a sports entity, has become a central mechanism for generating revenue and marketing in sports. Despite its importance, attracting financial support in the sports industry faces numerous obstacles, including legal challenges that hinder the flow of investment and sponsorship.
Given the increasing number of studies on financial support in sports and the need to avoid redundancy, this research focuses on synthesizing existing knowledge regarding the legal components related to financial support in sports. Specifically, it aims to answer the following questions: What legal components have been studied in relation to financial support in sports? What obstacles have been identified? And what solutions have been proposed to overcome these obstacles?
Materials and Methods
This study is qualitative in nature and employs the meta-synthesis method to analyze and integrate findings from existing research. The meta-synthesis approach used follows the seven-step methodology proposed by Sandelowski and Barroso, which is designed to advance qualitative evidence by synthesizing findings across multiple studies (Ludvigsen et al., 2018).
The research involved a systematic review of domestic scientific articles published between 1388 and 1401 (based on the Iranian calendar). From an initial pool of 112 studies, 72 were excluded due to duplication, irrelevance to the research questions, or mismatched titles. Ultimately, 40 studies were selected for detailed data analysis.
The inclusion criteria focused on studies that examined financial support, financial sponsors, financing mechanisms, and sports sponsorship within the sports industry. The selected studies were analyzed to identify recurring themes related to legal dimensions, obstacles, and proposed solutions in attracting financial support for sports.
Results
The meta-synthesis process involved a comprehensive textual review using keywords such as "financial support," "financial sponsors," "financing," and "sports support." The analysis revealed several key dimensions related to legal challenges and solutions in sports financing.
The identified dimensions include:
Legal Framework and Regulations:The presence or absence of clear, comprehensive laws governing sports sponsorship and financial support significantly impacts investment flows. Ambiguities and inconsistencies in legislation create uncertainty for potential investors and sponsors.
Contractual and Sponsorship Agreements:Legal complexities in drafting and enforcing sponsorship contracts often deter sponsors. Issues such as unclear rights, obligations, and dispute resolution mechanisms pose significant barriers.
Governance and Transparency:Lack of transparency and accountability in sports organizations’ financial management undermines investor confidence. Corruption and mismanagement further exacerbate these issues.
Taxation and Incentives:The absence of favorable tax policies and financial incentives limits the attractiveness of sports investments. Conversely, supportive fiscal policies can stimulate greater private sector involvement.
Intellectual Property Rights:Protection of branding, trademarks, and media rights is essential for sponsors to safeguard their investments and maximize returns.
The synthesis also identified common obstacles faced by sports organizations in securing financial support, including bureaucratic red tape, inadequate legal protections, limited awareness of sponsorship benefits, and insufficient marketing capabilities.
Proposed solutions to overcome these obstacles emphasize the need for legislative reforms to clarify and strengthen sports sponsorship laws, enhance governance and transparency within sports bodies, introduce tax incentives and subsidies for sponsors, and develop robust intellectual property frameworks.
Discussion
The findings of this meta-synthesis highlight that while there has been considerable research into obstacles and solutions related to financial support in Iranian sports, these efforts remain fragmented. The legal challenges identified are significant impediments to attracting and retaining financial sponsors, which are crucial for the sustainable development of sports.
A notable development in this context is a proposal submitted by 34 members of the Islamic Council to the Iranian parliament, titled "Supporting Sports and Athletes," which has been referred to the Cultural Commission. While this legislative initiative is a positive step, it is critical that lawmakers consider the comprehensive range of obstacles and solutions identified through research before enacting policies. Such a holistic approach can ensure that the legislation effectively addresses the multifaceted challenges facing the sports industry.
The integration of research findings into policymaking can help create an enabling environment that encourages private sector investment, enhances the professionalism of sports management, and ultimately contributes to the growth of the sports sector in Iran.
Conclusion
This research provides a synthesized understanding of the legal dimensions influencing financial support in the sports industry, highlighting key obstacles and potential solutions. The study underscores the importance of clear legal frameworks, transparent governance, favorable fiscal policies, and robust intellectual property protections in fostering a conducive environment for sports investment.
To capitalize on the economic and social benefits of sports, Iranian sports authorities and policymakers should prioritize legislative reforms informed by empirical research. Establishing a comprehensive legal infrastructure and addressing governance issues will not only attract financial sponsors but also build trust and sustainability within the sports ecosystem.
Future research is encouraged to delve deeper into specific legal aspects, evaluate the effectiveness of implemented reforms, and explore innovative financing models tailored to the unique context of Iranian sports.
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