Sports Management Oklahoma State – Flashcards
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the purpose of this class is
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the study of business and management of sports
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sports related activities are scattered throughout
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8 of 20 sectors of the economy
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sports management is the fastest growing industry.
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2x bigger than car industry and 7x bigger than the movie industry
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alternative sports boom
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the fastest growing sports segment of the 21st century--lifestyle sports
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90's sports boom
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sporting facilities, proliferation of pro teams and leagues, increased corporate involvement, and rise in sporting goods sales.
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in college, most sports programs
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lose money
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challenges ahead for the sports industry
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saturated marketplace and taking advantage of emerging technology
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working in the sports industry
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social networking is essential, its all about who you know. internships are vital
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meetings you want to attend ?
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any that has a number (budgets, compensation) attached to it is major league and you need to be there
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teams you love/hate.. why?
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social, psychological, cultural, geography, your parents, etc.
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why do we love sports in the usa?
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perfect mix of superstars, drama, and entertainment
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sports are different from movies because
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you don't know the outcome of the game
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sport consumer behavior
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don't have fanatics for brands like sports--its irrational behavior
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sport consumer behavior seeks to answer
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which fans will buy/watch/attend why when how can marketing team effectively target this
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brand image
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the perception of your product or your brand to the customer
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brand identity
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the perception you want consumers to have
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brand loyalty
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repeat purchases by customers despite alternatives
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sports organizations can improve their marketing strategy by:
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-better understanding consumer behavior and psychology -recognizing the effects of the social and sport environment -providing the right emotional, logical, or attention-getting message
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the more you know about your fans and target market,
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the more effective you'll be
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sports are a high profile project
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involving politicians and the business community
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economic impact analysis are often used to "prove" a project will be successful
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but who pays for these studies, and are they creditable? not always--there are biases.
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how to fudge economic impact analysis
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don't exclude local residents don't exclude time-switchers economic multipliers too large over-inflate employment aspect
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place marketing
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moving teams to "destination cities"
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benefits sports have on a community
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increased community visibility enhanced community image major league city stimulate other business development
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if a team leaves a city
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there can be major economic damage
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mega events vs local teams
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wichita vs tulsa boise vs portland omaha vs kansas city okc in 2000 vs okc with the Thunder
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direct economic impact
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employment numbers, spending for goods and services, tax revenues. immediate impact
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indirect economic impact
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direct impact times economic multiplier, medium and long term impact.
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opportunity cost
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is not always considered in the economic impact
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voters are approving less and less taxes for new stadiums lately.
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they can't charge property or sales tax to stadiums anymore.
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tourist development taxes
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hotel (bed) tax car rental tax player tax
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player tax
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tax on money earned by pro athletes while in LOCAL JURISDICTION. Detroit started this and made hella ca$$$$h
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with tourist development taxes
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cities could build new stadiums on tourists tax. hitting the tourists for more revenue.
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sin tax: alcohol, cigarettes
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cleveland got creative. indians and browns got new sports stuff mostly from sin tax
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are mega events like the super bowl great or not? "splash out" effect
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too many people in a town so you lose local, but bring a ton of tourists. balance out? sometimes. meed to look at impact incrementally. long term cons can outweigh short term benefits.
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How was st louis proposal unique? baseball village
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being put off. they want to rebuild Bush to redo downtown because its sketchy. lost investors when economy when down the toilet. now 7-8 years later and its still not done.
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In what ways was the Honolulu Marathon a success?
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5K during spikes down in tourism. mostly people from japan because the value of the yin is up. most people agreed they would come back to hawaii just to visit, not for the 5k. very successful.
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what was the situation in minneaplois with the Vikings stadium?
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gov pushed off getting new stadium and in 2010 a large snow storm caused the roof to collapse in on itself. many political factors involved as well. next two seasons they have to play outside at Gophers. took two years for the money to come in.
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financial trends in sports
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rising salaries higher costs to build and maintain more services demanded multi-purpose facilities tv demands advertising/commercialization
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naming rights
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long term revenue source now they can make some money back
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tickets represent __________ for the team
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salable inventory. aka liquid assets
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suites represent an additional ______________ for a team
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high profit inventory
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licensing
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selling the right to print logos/names/images of the team for manufacturers to sell.
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while coke is the official soft drink of the NFL,
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pepsi is the official drink of Irving stadium. run into sponsorship dilemmas
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broadcast rights
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tv (old) radio (old) internet (new) mobile phones (new) new is where all the money is
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sponsorships
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title presenting official official supplier
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asset
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a resource having economic value that a corporation owns or controls with the expectation that it will provide future benefit
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current asset
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will be consumed within one year; ex. cash, accounts receivable, and inventory
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fixed asset
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expected to keep on providing benefit for more than one year; ex. equipment, buildings, and real estate
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time value of money
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the idea that money available at the present time is worth more than the same amount in the future, due to its potential earning capacity. money now is money later.
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sponsorship vs advertising
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SPONSORSHIP IS NOT THE SAME THING AS ADVERTISING
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advertising
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limited message trying to elicit a response or action (buy a product)
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sponsorship
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providing money or resources to support a team or athlete to gain a marketing benefit; builds loyalty and brand equity
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sponsorships in relation to sports are
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growing tremendously
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sponsors are willing to
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drop some major cash for a relationship with a team
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sponsorship strengths
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-positioning of products/services; thus, enhancement of image -can provide both a means to further promotional strategy and meet goals with employees, distributors, and clients -allow for a more relaxed promotional atmosphere -also sends subtle message event would not have been as great or happened without them at all.
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sponsors don't just give money, they also
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trade goods and services
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risks involved in sponsorship
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-poor presentation at an event -poor performance of an event or sponsored participant -crisis due to aberrant behavior at event -over-commercialization backlash -potential for liability for negligence or other intentional torts
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sponsorship is more than up front price, you must
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ACTIVATE the sponsorship
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activation
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cost to leverage sponsorship and develop marketing and advertising based on relationship
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sponsors want
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increased awareness enhanced image demonstration platform hospitality opportunities sales opportunities
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teams want
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money/cash flow gifts-in-kind improved atmosphere/attendance
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title sponsorship
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becomes part of the actual name of the event
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presenting sponsorship
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exclusive rights in some category
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official sponsor
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usually gets to control product categories not reserved by presenting sponsors
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official supplier
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provides goods and services, can claim to be "official" supplier of event or team
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asset
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marks and logos audience database publications and collateral agreements web site guaranteed media merchandise signage sites vip opportunities events and programs talent
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related benefit
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promotional rights access recognition extended reach visibility and promotional incentive proprietary platform appearance/content and promotional involvement
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carolina panthers
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assets: affiliation with youth groups, charitable initiative, and purchasing power results: 11% increase in sponsorship revenues
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michigan spartans
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asset: michigan stadium press box result: 3 year, $2.4 mill deal with LaSalle bank
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ohio state
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asset: statewide interest in athletic program result: tour that broadened reach, gained new dollars from sponsors
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NCAA was formed because
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football was too dangerous and needed to clean it up
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the flying wedge
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ancient warfare technique used in football to crush the competition. instead of lines you charge in arrows. it made the already dangerous sport even more dangerous. people were dying--outlawed in 1894
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how do bowl games make money?
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because mostly cold weather so moved to warmer areas for bowl games
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first bowl game?
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rose bowl in pasedena 1902. Stanford and Michigan.
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no clear champion could be decided because multiple undefeated teams weren't playing each other, so
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the BCS was formed
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most bowl game are in the
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south because its warmer and brings more tourists
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paying college athletes?
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stipens? can't pay them without needing more money or taking away money from university
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UCLA is a real basketball dynasty under
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Coach John Wooden. 9 titles in 10 years.
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outsourcing
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selling the rights to market your property outside a company
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fundraising
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soliciting and accepting money, services, and products in support of athletic programs
