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PRIVACY
Economic Developmentopinion

Peter Sharkey: Huge profits out-muscling the war on drugs in sport

Imagine the enormous returns on investment available should you be in a position to both supply performance-enhancing drugs to sportsmen and then illegally influence a sporting outcome after you’ve also bribed the referee.

For most of us, our images and understanding of drugs and organised crime are determined primarily by fictional accounts we either read or watch on TV or at the movies.

Here, the story arc is generally anchored by the main drugs supplier, an unusually intelligent tough guy of indeterminate nationality surrounded by thugs who execute (sometimes literally) his every command.

At the receiving end is the sap, the one stupid enough to inject needles into himself or snort a dangerous mix of cocaine and talcum powder while paying handsomely for the privilege.

This one-dimensional account of what could be described as a market in perfect equilibrium, one where supply rises to meet demand, is sufficient for entertainment purposes.

Eventually, the baddie gets caught, though in real life, this happens more infrequently than many of us would imagine.

Take this fictional scenario a stage further and assume that the switched-on tough guy identifies another, even more lucrative revenue stream which, when activated, also provides the drugs user with an opportunity to make some money too.

Our Mr Big already operates in a risky business, so any hesitation he may feel to add another, marginal, element of risk to his operation is more than offset by the potential rewards.

How to legitimately tilt odds in one’s favour is something many people mull over when placing a bet on a weekend football match, or when considering the prospective value of derivative products capable of underpinning an equity investment, for example.