Thursday, July 1, 2010

Instant Replay

Instant replay is an invention that allows us to see what just happened. In combination with slow-motion it allows us to capture things that our own eyes may not be capable to perceive, like a very fast tennis serve or a hockey goal.

It is innovation, a Schumpeterian Event that has revolutionized broadcasting and can revolutionize how professional sports are conducted where big stakes come into play by allowing referees to verify and to correct any erroneous calls. One would expect that once the technology is adopted by a professional sport, all other sports would follow suit to keep up with technology and innovation.

According to Wikipedia, video-tape replay was invented in the 1960’s. It took twenty years for the NFL to use it in a limited way (1986). And finally the NFL introduced the current system in 1999. The NBA introduced it in 2002. MLB took almost forty years to introduce it and in a very limited fashion (2006) and it is still not used in some crucial plays. Even the Winter Olympics have introduced some instant replay--better late than never.

But FIFA, the organizational body that manages the most popular sport in the world, does not use instant replay in spite of refereeing errors that have impacted results in World Cup games that could have been corrected; goals that are scored using hands, or that cross the line and are not counted, or that are disallowed for erroneous off-side or foul calls. World Cup goals have been at a premium due to typical low-scoring games.

So why isn’t FIFA adopting instant-replay? FIFA has listed numerous reasons. But I believe the main reason can be identified if we look at the principles outlined by Joseph Schumpeter when he introduced the concept of “Creative Destruction” (innovation displacing old products).

The key is there must be competition for “Creative Destruction” to work. Creative innovation and non-monopolistic success accounts for the prosperity of most organizations. But FIFA is a type of monopoly. There is only one FIFA controlling the most popular sport in the world. So they can make decisions on technology as they please, without the pressures of a competitive body getting ahead of them.

On the other hand, when we see the elements competition between sport organizations, for example in the United States, we see the introduction of new technology, albeit slowly. Professional sports in America compete against each other for: TV and radio airtime, merchandise, tickets, etc. And such competition forces them to keep up with technology to a degree. Baseball may be enjoying some monopolistic characteristic though especially during summer months and this is why they still drag their feet introducing innovation.

But FIFA is still all on its own from a worldwide perspective without serious competition. As long as they are governed without competitive pressures they will continue doing what they choose to do. I expect FIFA will eventually introduce some form of instant replay, but not due to competitive pressures. And therefore it will be limited in scope, not taking total advantage of the potential benefits that this invention offers to the sport.

Some examples from YouTube.

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