[URBAN BEAT] Money, sports and higher education

Bilgi University, boosted by its affiliation with other institutions in the Laureate network, could energize the Turkish sports industry by supplying a stream of graduates prepared to “meet the requirements of the local and global sports industry.” The curriculum is to include finance, marketing, communication, medicine, ethics and law, etc. The language of instruction will be English, which İsmail Çakıt, head of Bilgi's sports programs, said is an important distinction from other sports studies programs in Turkey. Many physical education instructors and athletic trainers have little knowledge of a foreign language, so Turkish athletes are at a disadvantage in adopting the latest international scientific research on sports medicine, training techniques, etc.

“A sports organization has to be run like a company … so it's important to have good managers,” said Spanish soccer legend Emilio Butragueño. Butragueño now serves as general director of Real Madrid's sports management school at the European University of Madrid (UEM), Bilgi University's partner in the sports management program. Turkey's sports culture could use a dose of business. Policy makers have yet to emphasize recreational sports as a way to improve heath and wellness, so society may benefit significantly if more business people start profiting by getting others to be physically active.

At present, soccer is everything, but Bilgi's program could benefit other sports, provided it produces enterprising managers who can identify gaps in the market and spot opportunities as they emerge on the horizon. Turkey has 70 million people, half of them less than 28 years of age. Many youth and young adults spend money on soccer, but relatively few actually play soccer or any other sport. However, as Turkey's middle class continues to grow and as more people move to cities, there is a tremendous market opportunity to sell sporting apparel, gear and services. Turkey is a huge market just waiting for innovative marketers and advertisers to create a collective desire to do sports, to be fit, to sweat, to compete and to feel the rush of adrenaline and the sweet flow of endorphins.

Of course, the benefits of recreational sports are not limited to financial gain for businesses and corporations. There are, for starters, health benefits, and these benefits can be measured and managed. No matter how much the growth of Turkey's sports business may prompt people to become physically active, there will always be both room and need for government and educational institutions to promote athletic activity as a way for people of all ages to stay healthy and decrease the risk of chronic diseases such as obesity, diabetes and heart and lung disease.

Leverage gov’t and business resources

The big question: How do “sports managers” merge public and private, for-profit and non-profit interests to boost recreational sports? This is the sort of question that Bilgi students should begin examining this fall: How to create innovative partnerships that both increase the profitability of private companies and improve the overall physical and mental health of a society. It's a question of ethics. To what extent should entrepreneurs consider the social as well as financial impacts of their business models? For example, is the neighborhood sports club a center for placing bets on sports or is it a facility where residents can do sports?

Bilgi University's sports management program will offer a two-year vocational degree beginning this fall and four-year and postgraduate degree programs beginning in 2010-2011, in cooperation with Real Madrid's sports management school. UEM and Real Madrid joined forces in 2006 to establish the Real Madrid University Studies School, which focuses on total leisure, medicine and sports management. Miguel Carmelo, chairman of the UEM board of trustees, described the partnership with Real Madrid as a way “to link the sports profession with higher education,” adding that club leaders want “to make Real Madrid not just the best team, but the best brand, so they formed a partnership with UEM.”

Real Madrid's sports management school has affiliate programs in seven countries, including Spain, Mexico, Ecuador, Brazil, Chile and Cyprus as well as Turkey. As one of the affiliated campuses, Bilgi University will host even more students from around the world. Asked what attracts international students to the Bilgi campus, Rector Halil Güven said, “Bilgi is known around the world as a place where any topic can be discussed.” He also noted that İstanbul itself is a big draw.

History of the Laureate network

UEM and Bilgi are part of the Laureate Education Inc. network of 45 institutions of higher education spread across 20 countries. Laureate Inc., previously Sylvan Learning Systems, began as a tutoring and testing service in the United States. In 1999, Sylvan Learning Systems bought UEM and in 2004 changed its name to Laureate Education, after selling off the Sylvan Learning Center tutoring business. In 2007 Laureate CEO and Chairman Douglas L. Becker led a private equity group (including Kohlberg Kravis Roberts, Citi Private Equity and the hedge fund SAC Capital) in buying Laureate for $3.8 billion. According to reports filed before the company's NASDAQ listing ended, Laureate's revenue for the first half of 2007 was $659.3 million, compared to a total revenue of $538.2 million for the same period of 2006. Total operating income for first six months of 2007 was $56.7 million, compared to $56.8 million in the same period of 2006.