The 3 Principles of the Professional Sport Industry
Who does governance represent in professional sport industry?
Who does labor represent in professional sport industry?
Who does management represent in professional sport industry?
4 unique aspects of professional sports
2. structure & governance
3. labor-management relations
4. role of electronic & new media
contracts/conspiracies for trade
-is still only proffesional sport which holds an exemption from antitrust laws
CF for STL. challenges reserve clause, loses court case, but brings attention to public about reserve clause
National Labor Relations Act
1935 (Wagner Act) establishes federal guarantee of right to organize trade unions and collective bargaining
Collective bargaining agreement
—A written agreement between employers and employees that provides the exact terms and conditions of the employment relationship between the parties.
ability of players, after fulfilling an agreed-upon number of years of service to a team, to sell their services to another team with little to no compensation to the team losing the player
Agreement between labor and management that establish a league wide payroll
Designed to be an equitable system for distributing new talent among the leagues
Teams have tried to limit draft rounds so more players are available through FA
Union supports this, but also recognizes the importance of equal player distribution
The Sports Broadcasting Act of 1961
Granted professional sports immunity from antitrust actions regarding the pooling of broadcast rights
Sources of Revenue for Professional Sport Teams
- Media Contracts - Gate Receipts - Licensing and Merchandising Revenues - Sponsorship
primary revenue source majority retained by home team but some given to visiting team
Licensing and merchandising
- distribute revenue equally among teams - licensing revenues have plateaued due to saturated merchandise market
material support of an activity in return for advertising space (e.g. sports sponsorships)
A type of sponsorship in which a corporation purchases the right to name a venue
overseers of the entire operation
Responsible for putting the best possible team on the field or court
Responsible for generating revenue, marketing, developing a fan base, and working with customers
Stadium and Facility staff
-Responsibility for maintenance, upkeep, an repair of the playing surface -prepares the team offices, locker rooms, training facilities, practice facilities, and playing fields
good starting position in pro sports
Focuses on enhancing the experience of people who attend games
- identifies, secures, and places ads in a variety of media - designs and writes advertising copy
- oversees all promotional activity that occurs on the field or in the stands
responsible for media guides, yearbooks, and game programs - ensures the needs of media are met
- implements league-wide programs - creates and administers grassroots functions such as clinics and charity events
- responsible for game needs of clients, club seat holders, luxury box owners - coordinates provision of food, beverages, and internet connections
- create content that will increase traffic to site - website important marketing communication tool for team - manager updates content regularly
Database Marketing Coordinator
- building databases of info about team customers
-Serves as liaison between team and player -Educates players regarding 1. Financial management 2.image management 3. additional higher education
Video Staff Support
Produces/edits videos and coordinates broadcasts
Equipment and clubhouse staff
-Maintains, cleans, orders, repairs, distributes, inventories, ships, and packs all uniforms and equipment -Negotiates with manufacturers and sales personnel for equipment and uniforms -Provides security for locker room both at home and on the road
Information Technology Staff
- handles purchasing, network maintenance, and report generation
Medical and Training Staff
- responsible for physical and mental prep and readiness of players - responsibilities include medical and dental care, treatment and rehabilitation, nutrition, and strength and conditioning
concentrates on coaching, managing, and training players on the rosters
When was Intercollegiate Athletic Association changed to National Collegiate Athletic Association (NCAA)
NCAA Division 1
350 institutions - must offer at least 7 sports for men and 7 for women - must have at least 2 team sports for each gender
Player Education and Relations
NCAA Division 2
- 282 institutions - must offer at least 4 sports for men and 4 for women - must have 2 team sports for each gender
NCAA Division 3
- 449 institutions - must offer at least 5 sports for men and 5 for women - must have 2 teams sports per gender
- National Association of Intercollegiate Athletics - 1940
- National junior college athletic association - 1938
- National Christian College Athletic Association - 1968
How many FBS Programs operate in the black?
23 division 1 institutions are profitable
How can schools lose money when basketball/football generate so much?
bwt 50 and 60 percent of basketball and football programs have generated more revune than expenses
How much of total athletics “revenues” are allocated by institutions
FBS = 20% | FCS = 71% | No Football = 77%
What are current challenges of College Athletics?
- gender equity - racial equity - increasing coaches salaries and the "facilities arms race" vs. compensation to student-athletes and educational mission
High School Athletics - over 7.4 million high school students participate in sport
- Interscholastic Football Association formed in 1888 - by early 1900s largest sport sector - no other level has as many participants
Governance of Interscholastic Athletics
- individual state associations in early 1900s - little attention given to eligibility and welfare of student-athletes until arrival of Midwest Federation in 1921 - today serves 19,000 high schools
What is the state governing body of interscholastic athletics?
Tennessee Secondary School Athletic Association
What are the critical views of HS sport participation?
„- High injury rates „- Athletics goals are unrelated to educational goals „- Student-athletes are privileged over other students - Athletics deprive other programs of resources
Which 3 states have the most HS participants?
1. Texas 2. California 3. New York
What are the most popular high school sports for boys?
- football, track, basketball
Where does funding for high school athletics come from?
For Public Schools: local property taxes For Private Schools: Donations, tuition allocations, participation fees
Issues facing interscholastic athletic programs
- Finding experienced and certified athletic administrators - Budgetary constraints - Coaching turnover and exiting - Recruitment and retention of officials -Participation options - fair play - transfers - alcohol, drug, and PED use
Arrival of voluntary sport clubs
Mid 1800s sport began to organize Governing bodies develop, mid-to- late 1800s
organized physical activity that is based in community, school, and local sport organiatizations
What are the managements concerns of community sport?
- types of programs offered - time/place of activities - delivery of programs - financial issues - social/ethical development of children
What are the benefits of sport participation?
- physical and mental benefits - greater sense of belonging - sense of community and social capital
What are some examples of community sport organizations
- YMCA - KROC Memphis - Boys and Girls Club
What are the management challenges of community sport?
- some are highly professional while others loosely run with volunteers - governance of community/youth sport by volunteer boards pressure to professionalize due to legal issues and government policy - Fundraising
What is marketing?
The process of designing and implementing activities for the production, pricing, promotion, and distribution of a sport product or sport business product to satisfy the needs or desires of consumers and to achieve the company’s objectives
What are the steps of a sport marketing plan?
1. identify purpose 2. analyze product 3. project market climate 4. position the sport product 5. analyze and target consumers 6. packaging sport product 7. Pricing the sport product 8. promoting the product 9. placing the product 10. evaluation
1. Strengths:competitive advantage 2. Weakness:competitive disadvantage 3. Opportunities:chances to benefit 4. Threats:chance of adverse consequence bc of external factors *Greatest risk: weakness and threat strategy
Process of using a name, design, symbol, or any combination to allow an organization to distinguish and differentiate itself
4 elements of a marketing strategy
Factors in Pricing Strategy Development
- consumer - competitor - company - climate
Visible Aspects of Marketing Plan
- advertising - publicity - activities and inducements - public relations - community relations - personal selling - sponsorships
What does placing of the sport product refer to?
- location of product (stadium) - where to distribute product (ticket office) - geographical location of target markets (global, national, state, regional) - media
- Fulfillment of needs is the essence of marketing
- need to compete, be the best - need for social interactions - desire to develop skills, learn, and experience personal challenges
represents the degree of personal relevance a consumer finds in pursuing value from a given consumption act
portion or self-identity and social-identity
- high level of emotional and psychological investment - can provide sense of community and belonging that is difficult to find
A group in society that influences an individual's purchasing behavior
Direct Reference Groups:
Indirect Reference Groups:
In order to influence, reference groups must:
1. Provide an opportunity for the individual to compare self to the group
2. Influence person to adopt attitudes and behaviors consistent with the group
3. Support the person’s decision to use the same products as the group
- geographic location, decor, sound, smells, lighting, weather, crowding - Time pressures, time of day, season of the year - Momentary moods à Anxiety, excitement, hunger - Momentary conditions à Cash on hand, fatigue, illness
Decision Making Process Steps
evaluation of alternatives
post purchase behavior
Challenges facing sport marketers
1. the meaning & emotion of sport consumption 2. the globalization of sport 3. virtual consumption 4. compulsive consumption
Want to see the other 87 Flashcards in Exam 2?JOIN TODAY FOR FREE!