SM 203 Exam 2

Early issues associate with NCAA

Amateurism "Home Rule"- Left each school to monitor themselves, ensure program is following NCAA rules/regulations

What are the 2 main purposes of the USOC?

Generate resources in support of its mission, which is to help American athletes achieve sustained competitive excellence. Ensure organizational resources are wisely and effectively used to that end.

How do Conferences make revenue?

Media Rights (FBS Football is their biggest source) Sponsorship/Licensing Championships Bowl Payouts March Madness Payouts NCAA Distribution

How do Conferences distribute their revenue?

Member Schools Services Programs

What is NOCs relationship with the IOC?

Must obtain approval as a NOC by IOC Must go to IOC for approval on any actions Reports go back to IOC

How much revenue does the NCAA receive from FBS CFB?

NONE!

What is the 3-Prong test for Title IX include?

OCR provided 3-prong test for Title IX compliance: 1) Proportionality with student body- Male:female student-athlete is similar to male:female student body 2) Accommodating the interest of the underrepresented sex: tough to prove this (surveys) 3) History of adding opportunities for the underrepresented sex (tough to prove this) No money has been taking away for failure to comply. Only way schools get in trouble is if female sues school

What is the purpose of the IOC?

Purpose: IOC is a private, non-for-profit,non-governmental, free-standing organization. Owns exclusive rights to Olympic Games, Olympic Symbols (rings), flag, anthem, motto, flame, and torch.

Division 1 FBS requirements

Stadium size requirements, average home attendance must be over 15,000 over several year period.

Who is the current IOC president?

Thomas Branch

What is the basic structure of the USOC?

1) Board of Directors: Have final say in all decisions, establishes all policies to be followed in carrying out the business and activities of the USOC. 2) Chair (Larry Probst) 3) USOC Standing Committees: Audits, Compensation, Ehics, Nominating, Governance

5 major reports since NCAA created reviewing/looking into NCAA

1) Bulletin 23 2) President's Report 3) Hanford 4) Carnegie Reports of 1929-NCAA was pressured to change from an organization responsible for developing playing rules, to an organization that would oversee academic standard for student athletes, monitor recruiting activities of coaches and administrators, and establish principles governing amateurism, thus alleviating the paying of student-athletes by alumni and booster groups 5) Knight Commission- In response to these new changes, Knight Commission created an order to propose a reform agenda for intercollegiate athletics. Helped with supporting legislation to alleviate improper activities and emphasized institutional control in an attempt to restore integrity of collegiate sports Overview of the 5: Player subsides/amateurism Academic misconduct Professional vs Amateur Coaches Education vs Commercial Focus

What are some difficulties in making the D1 FBS "business plan" work? How can sport programs be used to generate money in other areas of the university?

1) Commercialism vs. Education! 2) Implications of this D1-FBS model: Different academic requirements for student athletes. Started off with 1.6 rule (1965), then 2.0 rule (1973) prompted by Ivy, then Prop 48 (1983)- minimum SAT/ACT score, minimum GPA in core classes, then Sliding Scale (1996)- sliding scale b/w SAT/ACT and GPA. 3) APR and GSR 4) Coaching Salaries- some coaches make more money than the presidents's of their school (their boss!) issue of Commercialism vs Education 5) Scheduling/Post-Season- CFB used to just be 8 games for educational purposes, now it is 12 games more focused on commercialism. NCAA Men's B-ball tournament wastes weeks of student-athletes time. More weeknight games 6) Rules/Regulations: Amateurism- Can be pro in one sport and amateur Practice Time Limits- Officially, no more than 20 hrs/week, but have "recommended" workouts, in reality 40-50 hrs/week. Scholarship Limits- The change from 1 to 4 year scholarships for P5 7) Funding: Subsides- Minimal for P5 conferences while higher for L5. After top 20 schools in P5, subsides increase

IOC Expenses

1) Distribute $ to NOCs, IFs, and OCOGs (90%). Revenue Sharing 2) Keep the money (10%)- Non-profit so must distribute money back.

What is involved in the bidding process for a candidate city? Steps in creating a bid.

1) Image Creation (city, country): Each city/country must create a potential official logo, try to capture cultural aspects of city/country in logo 2) Theme: With logo and aspects of bid, must include culture and Olympic ideas. Incorporate unifying aspects of the Game 3) Fundraise: Need money to create bid. about $35-45 million just to put in a bid (expensive because lots of people go into bid process). USOC no fed funding. 4) Evaluate previous/current Games/bids: See what worked and what didn't work. Replicate what has worked in the past. 5) Legacy: IOC wants to know what city will do to repurpose things, not let things go to waste, IOC will not choose you if legacy plans are not good. 6) Submit to NOC

What are the duties and responsibilities of an OCOG?

1) Security- protect against threats of attacks 2) Transportation- Ensuring all spectators/athletes can get in/out effectively and efficiently 3) Accommodations- For spectators (enough hotels available), athletes (Olympic Village), Officials (nice housing) 4) Venues- Must have enough for all events, must build more if needed, have plan for repurposing them after Olympics 5) Cultural Events 6) Sponsorship 7) Licensed Products 8) Medical Services 9) Promoting the Games- Ticket Sales, marketing 10) Stages for Paralympic games

IOC Revenue Sources

1) TV Broadcasting Rights (47%)- Sell rights to each country, USA has NBC through 2032, $7.65 Billion. 2) Sponsorship (45%)- TOP 3) Licensing- Officially licensed products for IOC, NOCs, and OCOGs. Commemorative souvenirs and memorabilia

What were some of the circumstances that lead to the establishment of the NCAA?

1st ICA competition- regatta between Harvard and Yale on a lake in NH, railroad company sponsored the event to drive sales. Football then started up: Yale was the 1st school to charge for admission to athletic events. Pittsburg was the 1st school to put #s on their uniforms. College football originally was very violent (in the late 1800s, early 1900s), in 1905 over 15 players died so Theodore Roosevelt told schools they needed to change the rules or no more CFB so the IAAUS was created focusing on football regulation/rules to make it safer, no effect 30 players died in 1909 so then the IAAUS evolved into the NCAA in 1910

What are the progress requirements for NCAA? APR and GSR and their implications.

Academic Progress Rate (APR)- 1/2 of athletes must be on track to graduate in a 6-year period. Implications- "Clustering" in specific majors (athletes dont have choice in major get stuck in easy to fit their schedule majors). Special athletic run facilities for tutoring/assistance- can isolate athletes Graduation Success Rate (GSR)- >1/2 athletes on team must graduate in a 6-year period, if you leave early as long as you are in good standing don't count, which results in overestimation of graduation rates Schools are penalized if they don't meet requirements in consecutive years

What are the roles and duties of an NGB?

Approve and sanction competitions open to all athletes in its country. Ex) T&F championships, other international championships Set national policies and eligibility standards for participation in their respective sports Responsible for training, development, and selection of Olympic teams in their respective sports- NOC can step in and change something, choose different players/athletes NGBs have own sponsors, but these cannot compete with TOP sponsors

What is the "business plan" used to operate sport at the D1 FBS level? How effective is this plan?

Athletic departments place special emphasis on football and/or Men's B-Ball to try and generate revenue to be self-supportive and to generate excess revenue to fund other sport programs Reality: About 70 football programs break even or have a surplus Only 24/180 athletic departments were financially self-sufficient last year Operating Budgets- Dramatically higher for P5 than L5. Ticket sale P5 higher, Student fees L5 higher, Guarantees (money you make for playing teams) higher for L5, Donations P5 higher. Operating Expenses- Dramatically higher for P5. Salaries higher for P5 Power lies in conference affiliation P5 more powerful than L5. TV deals P5 make billions, L5 make millions.

Examples of when IOC weakened/eliminated ambush marketing

Atlanta (1996): Tried to cut down on ambush marketing by publicly shaming companies, these companies liked the increased publicity so it back fired. Government action: Indicia and Images Act (Sydney): Intended to protect TOP sponsors from ambush marketing. Prohibited use of wide range of terms during Games. Ex) share the spirit, Summer games, team millennium, Olympics/Olympiad with other words like gold, silver. Olympic Arrangement Act: Allowed councils of suburbs where Olympic activities were taking place to "prohibit any selling or distributing of articles/items, within 3K radius, unless given authorization to do so (included private houses and businesses). Beijing: Recent legislation protects Olympic symbols and Chinese Olympic Committee's symbols. Municipal regulations- does not cover areas outside Beijing.

Who created modern Olympism?

Baron Pierre de Coubertin

Why does the IOC go to great lengths to protect TOP sponsors from ambush marketing?

Because they must protect the exclusivity of TOP- the more ambush marketing occurs, the less the TOP sponsors derive from sponsoring. Must limit ambush marketing for the best interest of IOC and TOP sponsors. Sponsorship is 47% of IOCs revenue, need to protect it!

How are cities elected to host the Olympic Games?

Bidding for Olympic Games: Election of host city takes place 6-7 years in advance to games- need lag time, can be bad for some cases (Brasil) Bidding process can take several years City must start bid preparation about 12-14 years prior to Games For US, cities submit to USOC, USOC refers selection ones to IOC (OCOG->NOC->IOC) Voting Process: Corrupt. 2 phase process: 1) IOC Executive Board decides whether host city bid is viable 2) Then, full IOC votes on cities using elimination process. Attempts to prevent corruption/bribery by restricting who can visit potential cities After 1st phase, cities come to IOC special meeting and present their bid (in form of video), then voting begins

What are the new changes to the structure of D1 in the NCAA?

BoD->Purpose, Values, Vision->Autonomy and Council/Governance->Substructures Autonomy- Power 5 conferences (B1G, Big 12, ACC, SEC, PAC-12) have unique, special power over the rest. 10 Conferences in total. This is how power 5 are pulling away from other conferences and have such a distinct power.

Motto of Olympic

Citus, Altius, Fortius- faster, higher, stronger

CFA Case, and what TV show became leader of CFB after this.

Colleges with top programs formed CFA in 1979 and wanted to sell their own TV rights. Teams couldn't be televised more than once, not fair to great programs. NCAA said sanctions would be placed on schools for doing this, Georgia and Oklahoma continued on and sued NCAA for restraint of trade and won in 1983. ESPN became leader for CFB after this Schools felt empowered, NCAA was scared teams would leave NCAA and go to CFA so NCAA let schools keep all money generated from FBS CFB

What are the roles and duties of an IF? What do they do during the Olympic Games?

Conduct events in their sports at the Olympics- work with IOCs and NOCs Establishes its own eligibility rules in its sport, standards for competing- Olympic rules must be approved by IOC, usually a single federation for each sport Must work with OCOG to ensure proper facilities are built Responsible for resolving technical issues. Can propose revisions/development of event in its sport Select judges, referees, other official for international competition

What are the problems for host cities?

Cost- not going to make a profit, very expensive, several billion dollars Magnifies social, political, economic issues in the city/country

Current issues associated with the Olympics

Cultural Awareness and Sensitivity Increase of Foreign Student-Athletes in US Colleges and Universities Marketing of the Olympic Games- All levels of Olympic Movement rely heavily on revenues from TV Broadcasting and Sponsorship Agreements Doping a lot of doping happening, World Anti-Doping Agency (WADA) established in 1999

Compare the philosophies of Division 1, 2, and 3 athletics. How do the different Divisions approach and support athletics?

D1/D2/D3- differences between each: School size decreases as you go down divisions Each has its own governing structure, does own governance. D1: Support Philosophy of competitiveness, generation of revenue through athletics, and national success. Larger and have larger budget. 3 subdivisions: Football Bowl Subdivision (FBS), Football Championship Subdivision (FCS), and Non-football D1 D2: Attract student-athletes from local/in-state area who may receive some athletic scholarship money, but not full ride. Must sponsor certain amount of programs D3: Do not allow athletic scholarships and encourage participation by maximizing number and variety of athletic opportunities available to students. Emphasize participant's experience, rather than spectator's, and place primary emphasis on regional in-season and conference competition. Must sponsor certain amount of programs. Additional Notes: D1—focused on all matters vs D2/D3—focused solely on divisional matters D1—full scholarship given vs. D2/D3—partial scholarships or none at all, academic scholarships D1—recruit nationally vs. D2/D3—recruit locally/regionally D1—play nationally/internationally and focus on all games vs. D2/D3—focus on playing regionally and in-conference (1 bid teams NCAA) D1—general entertainment D1—higher number of sports required to offer vs. D2/D3—lower requirements numbers D1—focus on spectators vs. D2/D3—focus on participants

Why would cities want to host the Olympics?

Development, tourism, publicity Catalyst for urban regeneration National pride/unity Boost economy-increase in tourism/job creation Showcase city Can involve whole country

How are NGBs related to IFs and NOCs?

Each If recognizes a single NGB in each country participating in the sport NGBs hold events to choose Olympic athletes, but NOC can step in and choose different athletes/players if they choose too.

Governing Structure of NCAA

Executive Committee-> D1 has a Board of Directors, D2/3 have presidential council Executive Committee is the highest governance body in NCAA, oversee NCAA issues and ensures each division is operation consistently with NCAA purposes, policies, and principles

How/why does sponsoring football make it more difficult for athletic departments to achieve gender equity?

FBS Football: 100+ players, many coaches, equipment, 85 full scholarships. Large team=tough to balance out gender proportions

How are IF's related to the IOC?

IFs must be recognized as official IF for Olympics by IOC IOC has power to add sports to Olympics and recognize an official IF for that sport- IF petition Olympics for their sport to be added Rules in place for Olympics must be approved by IOC

How are OCOGs financed? What are the various sources of their revenue?

IOC gives OCOGs about $1 billion More funding is needed, each city does it differently. Ex) 2012 London: Public/private partnership in where LOCOG (private) focused on sponsorship, tickets, marketing for commercial revenue and ODA (public) focused on venues, facilities, infrastructure Some OCOGs receive federal funding (US does NOT must fundraise) Fundraising from corporations, wealthy individuals

Why is the IOC such a powerful sport organization? Why are they able to command such large sums of money from the media and the corporate world?

IOC has several powers. The IOC runs the Olympics, the biggest global event that almost every country participates in, millions of viewers every day around the globe. Large sums from corporate world because of their exclusive TOP sponsorship program.

Organizational Structure of the Olympic Movement and what each sector does.

IOC- Leading organization, most powerful group in charge of Olympics. NOC- Each country has one, reports back to IOC for approval, etc. IF- Each Olympic sport has an IF, creates rules/guidelines, report back to IOC for approval etc. NGB- Within an country for each sport, report back to NOC, IF OCOG- Each city preparing to host Olympics has one, report back to IOC, NOC, IF

Does this "business plan" model work?

If you focus on athletic department income, NO! Why do L5 conferences continue to sponsor athletic departments/sport programs when you lose money on it? Advertising, brand/name recognition. Affects enrollment. Increased general student population and begin new sport to get more tuition from athletes.

What are recent legal decisions related to the rights of student-athletes? How might/will these decisions alter the business model of college sport? New autonomy Ed O'bannon Class action lawsuit seeking open market National Labor Relations Board

Increasing power of the student athlete: 1) New autonomy for Power 5 conferences: student athlete reps vote on issues, full cost of attendance will be covered. 2) Anti-trust decision (Ed O'bannon): Student-athlete can share in the revenue associated with their likeness and images 3) Class action lawsuit seeking open market- Open case, on going. Wants teams to be able to bid on players, why should a shitty player get the same incentives/benefits as a player like Jabril peppers for joining a team? 4) National Labor Relations Board: Ruled that football players at North Western were employees and could unionize (not for money, but for medical services/equipment)

What is an IF?

International Federation Autonomous organization responsible for the governance of its sport on the international level-international governing body over a sport. Nongovernment organizations recognized by IOC to administer one of more sports at the world level and encompass organizations administering such sports at the national level Each Olympic sports team has an IF, recognized by IOC as "official" IF.

What does the NCAA do with the money it generates?

NCAA Revenue Distribution: Mostly to D1 Conferences/Schools (63%)- Basketball funds (5 year payout for going further in NCAA tourney. Grants-in-aid/scholarships). D1 Tournaments/Championships. Services/Programs- Student Assistance and Sport Sponsorship

Describe the NCAA in terms of organizational structure. What type of organization is it? Who belongs to the NCAA?

NCAA is a non-profit, voluntary association. Primary rule-making body for college athletics in US. Approximately 1,200 institutions, conferences, organizations, and individuals. Administration of ICA. Purpose association strives to maintain: ICA as an integral part of the education program, The athlete as an integral part of the student body

What are NGBs?

National Governing Bodies Organizations governing 1 specific sport in each country. Ex) USA basketball, USA Soccer, US Track and Field.

What are NOCs?

National Olympic Committee Organizations recognized by the IOC and responsible for the development and protection of the Olympic Movement in their country. Promote the fundamental principles of Olympism at a national level within the frameworks of sport. Sole authority responsible for the representation of its country at the Olympics In order to be recognized by the IOC, must have greater than 5 NGBs affiliated with IOC-recognized IFs

What choices have colleges and universities made in attempting to comply with Title IX?

Non power conference schools don't (no $) Div 2 schools don't Div 3 schools come close How to comply specifically through proportionality: Cut men's sports, add women's sport Unique athlete counts- Tryouts count (Crew example) girls who try out are included in total # Have large teams like crew, rowing cheap ways to help proportionality Males practice players=female athlete Roster caps- mandate that teams carry a certain # of athletes low max for men, high min for women Sport funding caps

What are some of the methods that have been employed to weaken and/or eliminate ambush marketing?

OCOGs lease big business spaces in city to privatize areas so they can highly regulate what companies can lease space for marketing/sales/shopping and what people entering can wear, they set the rules. Ex) Nike set up shop right outside an Olympic arena, handed people entering the arena American flags with logo (AMBUSH MARKETING NIKE ISN'T A TOP SPONSOR) IOC gets around restraint of trade issue (regarding preventing non-official sponsors to use words related to Olympics) by convincing governments to suspend anti-trust laws for periods of time. BIG THEME: IOC convinces governments to suspend their own anti-trust laws for a period of time (a little before to a little after Olympics) in order to protect TOP sponsors and protect a large revenue source of theirs

How does the USOC spend their money?

Olympic training Center (3 main centers, plus several regional locations) Drug testing- USADA Member support- US Paralympics, international competition USOC Programs: 1) FLAME- Finding Leaders Among Minorities Everywhere 2) CODP- Community Olympic Development Program 3) Project Gold 4) Citizenship through Sports Alliance

How do Individual Schools distribute their revenue?

Operation of all sports Facilities/Maintenance

What does the NCAA do for its membership?

Purposes: To initiate, stimulate, and improve intercollegiate athletics Promote and develop educational leadership, physical fitness, athletics excellence and athletics participation as a recreational pursuit Establish rules of play, standards, eligibility requirements There is an enforcement program created in 1952 that allowed NCAA enforcement staff to see if there are any violations

What are OCOGs? What is their role in the Olympic Games?

Responsible for planning, implementing, and staging the Olympics Each host city has one When a city is chosen to host, it forms an OCOG to plan the entire games

What are the responsibilities and duties of an NOC?

Responsible for team approval and entering athletes into Olympics (provide training opportunities for athletes, equipment,and travel accommodations) Approve/recommend potential host cities from their respective countries to IOC. Obtain national scholarship support, every TOP sponsor is an NOC sponsor, but NOC can add other sponsors (that are not competitors of TOP sponsors)

What does the IOC do, what are its powers?

Select host city Choose TOP sponsors Choose TV networks Recognize "official" NOCs and IFs Approve sport "rules", "standards", and "eligibility rules" Persuade countries to violate anti-trust law (ambush marketing)

Benefits of being a TOP sponsor

Sponsors are able to develop marketing programs with various members of Olympic Movement including IOC, NOCs and OCOGs. Can use all Olympic imagery on products/advertising Direct advertising and promotional opportunities- get first dibs on air time, preferential access to Olympic broadcast advertising Ambush Marketing protection On-site concessions/franchise and product sale/showcase opportunity Acknowledgment of support- 2 way partnership: sponsor promotes Olympics and Olympics promote sponsor

What is the basic structure of the IOC?

Structure: 98 members, 36 honorary members, 1 honor member (IOC honorary president- Jacques Rogge) 3 Bodies: 1) Session- general meeting of IOC members (pick host cities, determine which sports are included, modify and interpret Olympic Charter) 2) Executive Board- 1 President, 4 VP, 10 additional members. Managers affairs of IOC, including approval of IOC internal organization, management of IOC's finances and preparation of a report to the Session on any proposed change of rules/laws, supervision of procedure for acceptance/selection of candidatures for any organization of Olympic Games, and performance of all other duties assigned to it by Sessions. 3) President IOC members are loyal to IOC first, go back to their own country as a representative/spokesperson/advocate of IOC.

How does an IF get a sport added to the Olympic Games?

Summer Olympics: Practiced by men in at least 75 countries on 4 continents and by women in at least 40 countries on 3 continents. Winter Olympics: Practiced in at least 25 countries by 3 continents

How does the NCAA generate revenue?

TV/Media/Marketing Rights (81%): Men's basketball tournament (deal with Turner) is biggest source of revenue. Championships Investments Sponsorship Member Dues

What is TOP and how does it contribute to revenue for the IOC?

The Olympic Partnership Program (TOP)-A limited and exclusive sponsorship program the IOC operates. Started in 1984 for the LA Olympics to create a more limited sponsorship program. Came up with 10-12 business industries/categories and put official sponsorship up for bidding for those industries. No apparel/shoe sponsor because it would require all teams/individuals to wear the same thing ex) Coca-cola is the official soft drink, wireless network, credit card etc. 4 year agreement (you get one summer and one winter game) Companies essentially have monopolies, since competitors cannot go near them at the Olympics and cannot have the same publicity as them at the Olympics. Price: around $100 Million each

How might/do these changes to the structure of D1 impact the business model of college sport? How are these changes related to the welfare of student-athletes? What are the autonomy areas for Power 5 Schools?

These power 5 conferences have power over other conferences/D1 On BoD there are 5 FBS university presidents and 5 FCS/non-football University presidents (Discrepancy in proportions) Autonomy Areas for Power 5 FBS Conferences: Insurance and career transition- can offer better/different career related insurance options to student athletes, other schools can't Financial aid- can guarantee 4 year scholarships while other schools can only promise one year at a time Health and fitness Meals and Nutrition General Power 5 schools generate more money than other conferences money=power. This grants extra power for power 5

What are the sources of revenue for the USOC?

They make around $200 million per year, more during the Olympic years Marks right income- TOP and Domestic sponsors Broadcast rights (TV)- from IOC US makes more money than any other country, makes other countries mad, big reason Chicago didnt get their bid. US makes the same amount of corporate sponsor revenue as every other country combined, and only $60 million less in TV rights.

How do Individual Schools make revenue?

Ticket Sales Conference Distributions Sponsorship/Licensing Student Fees Direct/Indirect Administration Support Donations

Why is gender equity such a contentious issue in intercollegiate athletics? What are the guidelines in place for complying with Title IX?

Title IX (1972): Not about sport, about educational opportunity. It eliminates discrimination on the basis of sex in educational programs or activities that receive federal aid. When passed, NCAA had nothing to do with women's sport. AIAW was biggest international organization for women's sport. When passed, strong concern that men's sport funding would decrease and would have to share funding with women. Resistance to Title IX (men trying to hold onto all the funding and not share with women). Legislation in congress: Remove sport from Title IX, remove football from Title IX- both failed. NCAA took over women sport in 1983: offered free membership to lure programs from AIAw to NCAA, AIAW folded in 1984

What are the responsibilities of the USOC? How did the Amateur Sports Act of 1978 and Ted Stevens Olympic and Amateur Act (1988) pave way to the responsibilities?

United States Olympic Committee Amateur Sports Act of 1978: Passed by Congress in 1978, named USOC as coordinating body for athletics in US directly relating to to international Olympic family competition. Included provisions for recognizing NGBs. Protects IOC and USOC emblems- grants rights to words "Olympics", "Olympiad", Olympic motto Requires USOC and NGBs to have 20% athlete membership- gave athletes a voice over Olympic-related activities. USOC must be non-political, no money from national government. 1 of only NOCs not a part of federal government. Pays medal winners money, most responsible for sending US olympic teams to Olympic, Paralympic, and Pan-American Games Ted Stevens Olympic and Amateur Act (1988): Revised the original Amateur Sports Act in several ways: Amateurism no longer an Olympic requirement for most international competitions- amateurism is gone, professional athletes can now compete (1992 Dream team for bball first US team with NBA players) Increased athlete representation, and expanded the USOC's role

How/why were the modern Olympics revived?

With the renaissance, Europe became fascinated with Greek culture and began holding informal sporting festivals in 18th and 19th centuries with the name "olympic games". Mindset went from having a world battle to uniting the world and bringing the world together to compete and be one. In 1984 the IOC constituted as supreme authority of OlympicMovement at International Athletic Congress of Paris.