State policy intervention on sports economy Term Paper

State policy intervention on sports economy - Term Paper Example The study is inclined towards analyzing the concept of state policy intervention in the sports economy. This topic can be explained with justification whether the state government should or should not intervene in the sports economy. The positive and the negative impact of the state policy intervention have been discussed in this paper. The government provides the fund to the sports sector of the economy. For example in England, the government is engaged in offering facilities and training program to the people which will assist them in developing their talent. The sporting events can be organized without much intervention of the government. But in order to organize mega-events such as Olympics or World Athletics Championships can succeed only with the involvement of the government from the early stage. The growth and popularity of sports have influenced the changes in consumption and production of sports. The management of the sports events has started in the twentieth century which involves implementing the strategies and techniques that are mostly adopted by the nonprofit organizations. It has been observed that the European Union supports the intervention of the state policy in the sports economy. The market fails to consider the externalities; therefore the state policy will assist in providing subsidies with positive externalities. The author Abeysinghe, in his paper, has explained the concept of sports which can be defined as all forms of physical activity through the organized or casual participation which aims at improving the mental and physical fitness required for developing the social relationships and achieving competition at all levels. The author has also emphasized on the definition of sports with examples that sports can be classified as the activity such as the individual sports, professional team sports where the individuals decide to participate in this activities.