SPMT 217 Exam #2 Review

Personal sales

Face-to-face, in-person selling

Sport Agency Firms

-Freestanding sport management firm -Law practice-only firm -Sport management firm affiliated with a law firm

4 ingredients to selling

-Identifying the customer -getting through to the customer -increasing awareness/interest -persuading customers toast on their interest

Sport Agents Unethical behavior

-Income mismanagement, incompetence, conflicts of interest, charging of excessive fees, overly aggressive client recruitment

Up-Selling

-"Escalator concept"-Sport organizations strive to move customers up the escalator from purchasing single-game tickets to mini ticket plans to season ticket packages. -Sponsorship sales-Increase company's involvement with your organization.

History:Stadiums

-Constraints of urban space limitations dictated the irregular size and shapes of the older ballparks. -Gain in the popularity of modern sport

Sport agent Financial Planning

-Covers banking and cash flow management, tax planning, investment advising, estate planning, and risk management. -Sport agents often attempt to take on this function without proper skills and trying, doing so can lead to allegations of incompetence and negligence

CRM: Three primary methods

-Direct mail -Telemarketing -Personal Sales

Arenas

-indoor facilities that host sporting and entertainment events -Build to accommodate one or more prime sports tenants

CRM

A system that enables sport organization to build and utilize a database of demographic and psychographic information, as well as past purchase behaviors, for existing and potential customers.

What skills might be needed for an athletic director or an associate athletic director at the collegiate level? Choose all that apply. A. ability to teach an academic class of some type B. ability to manage a large number of employees C. public relations and negotiating skills D. ability to coach a team E. knowledge of financial and legal complexities that may affect the department F. ability to have played one or more sports competitively at the college level

A, B, C, D, E

Which of the following statements is true of the Division I conference? Choose all that apply. A. As of this writing, the Division I conference consists of 340 member institutions; most of these are either in the Football Bowl Subdivision or the Football Championship division. B. Division I schools, in general, support the philosophy of competitiveness, generation of revenue through athletics, and national success C. Division I schools are required to sponsor at least 14 sports programs; FBS institutions must sponsor 16 teams D. A typical Division I coach oversees several sport programs and may also hold an academic appointment, an administrative appointment, or teach activities classes E. Athletic department budgets at the Division I level, and especially for FBS institutions, may be as much as two to three million dollars

A, B, and C

The NBA has the broadest representation of foreign players on its rosters. In the 2009-2010 season, for example, the textbook notes that opening night rosters included...players from...different countries and territories. A. 83; 36 B. 115; 84 C. 13; 14 D. 150; 15

A. 83; 36

What is the only sports league to ban corporate ownership? A. NFL B. NBA C. NHL D. MLB E. MLS

A. NFL

Which United States sporting goods manufacturer signed with great teams such as the Brazilian national football team, Manchester United, Juventus, and F.C. Barcelona in an attempt to expand their market presence in football? A. Nike B. Reebok C. New Balance D. Adidas

A. Nike

A misconception resulting from the influence of contemporary superpowers on spectator sports, and perpetuated by popular media, is that the term globalization is often equated to Americanization. A. True B. False

A. True

An OCOG identifies and targets its own sponsors, but must have approval from both the IOC and NOC. A. True B. False

A. True

As college athletics has become more complex and business-like, colleges and universities are looking more and more to the corporate world for CEOs or administrators with business backgrounds to run their athletics department. A. True B. False

A. True

Common in the Southeastern Conference and a growing model in collegiate athletics is a structure in which the program is run through an outside entity that is incorporated by the state. A. True B. False

A. True

The Cincinnati Red Stockings were the first all-professional baseball team. A. True B. False

A. True

The National Collegiate Athletic Association refers to student-athletes from other countries as nonresident aliens. A. True B. False

A. True

The PGA operates as two divisions: one that governs the club professionals who serve amateur players and another, known today as the PGA Tour, that governs the tour professionals, and schedules events such as the PGA Championship Tour, PGA Tour Canada, and the Web.com Tour. A. True B. False

A. True

The U.S. Paralympics are a division of the U.S. Olympic Committee. A. True B. False

A. True

The World Anti-Doping Agency (WADA) is an independent, international agency funded by the world's governments and sports programs. A. True B. False

A. True

The first intercollegiate athletic contest involved sponsorship by a company looking to enhance the company's business. A. True B. False

A. True

To be recognized as a voting member conference of the NCAA, member conferences must have a minimum of seven member institutions. A. True B. False

A. True

Sport first spread across international borders through... A. imperialistic efforts, as a means of imposing the conqueror's culture on the colonized land B. broadcasting of various games into other nations C. the Olympic Games D. the work of international federations spreading different sports across borders

A. imperialistic efforts, as a means of imposing the conqueror's culture on the colonized land

For a sport to be included on the Summer Olympic Program, it must be practiced by... A. men in at least 75 countries on four continents and by women in at least 40 countries on three continents B. men in at least 25 countries on four continents and by women in at least 25 countries on three continents C. men in at least 25 countries on four continents and by women in at least 25 countries on four continents D. men and women in at least 25 countries on four continents

A. men in at least 75 countries on four continents and by women in at least 40 countries on three continents

Which of the following is not one of the governing bodies of the IOC? A. the Legislature B. the Executive Board C. the Session D. the President

A. the Legislature

Convention centers

Almost always built and owned by a public entity

The Olympic motto, "Citius, Altius, Fortius" translates to... A. "Swiftest, Highest, Winningest" B. "Swifter, Higher, Stronger" C. "Swift, Tall, and Fortified" D. "Serious, Highest, Fortuitous"

B. "Swifter, Higher, Stronger"

In 2011, minorities accounted for approximately.....of the sport industry workforce while women held approximately.....of managerial positions in the workforce. A. 90%; 10% B. 35%; 44% C. 50%; 50% D. 25%; 21%

B. 35%; 44%

Leagues derive the bulk of their revenues from gate receipts. A. True B. False

B. False

Professional leagues have organized themselves in a manner consistent with a corporate governance model. A. True B. False

B. False

The International Olympic Committee is a corporation based in Paris, France. A. True B. False

B. False

The International Paralympic Committee is a committee of the International Olympic Committee. A. True B. False

B. False

The NCAA National Office staff members pass the legislative rules of the association and then enforce these rules through their enforcement and legislative services departments. A. True B. False

B. False

The NCAA is the primary rule-making body for all college athletic departments, including junior colleges, small colleges, and universities. A. True B. False

B. False

The Paralympic Games are a segment of the modern Olympic Games for disabled athletes that occur during the actual Olympic Games. A. True B. False

B. False

The first association to govern women's intercollegiate athletics was the Association for Intercollegiate Athletics for Women (AIAW). A. True B. False

B. False

The size of all International Federation staffs is determined by the IOC. A. True B. False

B. False

The term used to describe a team's ability to relocate is franchise decertification. A. True B. False

B. False

Which league has the highest credit rating in sports? A. MLB B. NFL C. NBA D. NHL

B. NFL

The term of the IOC president is... A. a non-renewable term of 8 years B. an initial term of 8 years, renewable once for 4 additional years C. an initial term of 4 years, renewable as often as the IOC members deem appropriate D. an initial term of 8 years, renewable as often as the IOC members deem appropriate

B. an initial term of 8 years, renewable once for 4 additional years

Which traditional athletics department staff member oversees adherence to NCAA and conference rules and regulations? A. senior women's administrator (SWA) B. compliance coordinator C. faculty athletics representative (FAR) D. student-athlete services administrator

B. compliance coordinator

The philosophy behind a "hard" salary cap is to... A. change the behavior of high-payroll teams B. constrain all franchises to spend the same amount on payroll C. share certain types of revenue amongst all franchises E. All of these are correct

B. constrain all franchises to spend the same amount on payroll

Mark McCormack's sports marketing agency, IMG, began through a relationship with players of this sport. A. baseball B. golf C. tennis D. football

B. golf

Which of the following is NOT one of the philosophy principles followed by Division 1 institutions? A. strive for regional and national prominence B. maximize the number and variety of athletic opportunities available to students C. strive to finance its athletics program through revenues generated D. recognize the dual objectives of serving both the university or college community and the general public

B. maximize the number and variety of athletic opportunities available to students

In its initial efforts to sell more shoes in Europe, Nike incorporated one of Europe's most popular traditions. What was it? A. bullfighting B. opera C. track and field events D. soccer exhibitions

B. opera

The Organizing Committee for the Olympic Games (OCOGs) is responsible for... A. awarding the host city for the Olympic Games from the bids that come through the bidding process B. planning, implementing, and staging the Olympic Games in a host city C. monitoring ambush marketing practices in the Olympic Games and sending out cease and desist orders against sponsors who trample on the property rights of official sponsors D. choosing a nation's athletes and coaches and sending them to the Olympic Games

B. planning, implementing, and staging the Olympic Games in a host city

Leagues such as the NFL, NBA, and MLB all maintain "credit facilities" because... A. the leagues do not trust the financial markets B. the leagues can borrow less expensively than can individual teams C. the leagues use them to administer revenue sharing D. A and B are correct E. B and C are correct

B. the leagues can borrow less expensively than can individual teams

...has emerged as a method for leagues to establish themselves in a manner that avoids antitrust liability and creates centralized fiscal control. A. the labor exemption B. the single-entity structure C. the corporate governance model D. revenue sharing

B. the single-entity structure

General obligation bonds:

Backed by the local government's ability to raise taxes to pay of the debt. (SAFE)

Currently, the IOC is made up of... A. 14 members B. 72 members C. 104 members D. as many members as there are countries in the world

C. 104 members

What is not one of the sponsorship levels for the Olympic Games in accordance with the Olympic Charter? A. The Olympic Partner program B. NOC sponsorship programs C. IF sponsorship programs D. OCOG sponsorship programs

C. IF sponsorship programs

The NCAA took on its present day name in 1912. The birth of the NCAA, though, actually occurred in 1905 and the initial name of the organization was... A. Intercollegiate Football Rules Committee B. Intercollegiate Conference Association C. Intercollegiate Athletic Association of the United States D. Intercollegiate Football Association

C. Intercollegiate Athletic Association of the United States

What league recently operated for a number of years without a permanent commissioner? A. National Hockey League B. National Football League C. Major League Baseball D. National Basketball Association

C. Major League Baseball

Which of the following was instrumental in initiating the modern Olympic Games? A. Gianna Riga B. Spyros Constantinides C. Pierre de Coubertin D. Stephen Lanara

C. Pierre de Coubertin

The USOC (U.S. Olympic Committee) is an example of... A. an IOC Session B. a National Governing Body (NGB) C. a National Organizing Committee (NOC) D. an International Federation (IF)

C. a National Organizing Committee (NOC)

In spectator sports, stadium construction projects are often financed with... A. equity B. interest C. bonds D. expenses

C. bonds

The under-representation of women, minorities, and people with disabilities in the sport industry is an important issue for sport managers who value...in the workplace. A. equality B. uniformity C. diversity D. fairness

C. diversity

For a sport to be included on the Winter Olympic Program, it must be practiced by... A. men in at least 75 countries on four continents and by women in at least 40 countries on three continents B. men in at least 75 countries on four continents and by women in at least 75 countries on two continents C. in at least 25 countries on three continents D. men and women in at least 25 countries on two continents

C. in at least 25 countries on three continents

Nike's huge success since 1972 has come primarily as a result of all of the following except... A. brand strength B. advertising C. league sponsorships D. athlete endorsements

C. league sponsorships

All of the following are examples of "financial" mechanisms for altering competitive balance except... A. luxury tax B. salary cap C. revenue sharing D. "reverse-order" draft E. All of these are financial mechanisms

D. "reverse-order" draft

The increase in ticket prices in all leagues in recent years reflects... A. consumers' increased affluence B. decreased regulation in ticket scalping C. the growing popularity of sport D. A and C are correct E. All of these correct

D. A and C are correct

With regard to international sport management, sport managers from North America must be aware that... A. they cannot unilaterally impose domestic models of sport governance on other cultures B. differences exist in terms of language, culture, etiquette, management, and communication styles C. they need to learn, understand, and respect cultural and systematic differences that exist D. All of these are correct

D. All of these are correct

The founder of the modern Olympic Games in 1894 was... A. William Hulbert B. Fred Corcoran C. Henry Mitchell McCracken D. Baron Pierre de Coubertin

D. Baron Pierre de Coubertin

IOC members must speak at least one of the six languages spoken at IOC sessions. What are they? A. French, English, German, Korean, Spanish, and Russian B. French, English, German, Japanese, Spanish, and Russian C. French, English, German, Mandarin Chinese, Spanish, and Russian D. French, English, German, Arabic, Spanish, and Russian

D. French, English, German, Arabic, Spanish, and Russian

In the Olympic organizational structure, National Governing Bodies (NGBs) report directly to... A. NOCs B. IFs C. OCOGs D. NOCs and IFs E. All of these are correct

D. NOCs and IFs

International federations... A. are the international governing bodies for one or several sports throughout the world B. are nongovernmental organizations recognized by the IOC to administer one or more sports at the world level and encompassing organizations administering such sports at the national level C. must petition for formal recognition by the IOC and must apply the Olympic Movement Anti-Doping Code and conduct effective out-of-competition tests in accordance with the established rules D. all of these are correct

D. all of these are correct

Nike has expanded its operations from running shoes to international markets. To capture these markets, Nike has had to move into what sport(s)? A. ice hockey B. golf C. soccer D. all of these are correct

D. all of these are correct

The NFL Trust is responsible for which of the following activities? A. ownership of all team logos and trademarks B. oversight and administration of the league's properties rights C. distribution of revenue for league properties rights to each club D. all of these are correct E. oversight and administration of the league's properties rights and distribution of revenue for league properties rights to each club

D. all of these are correct

The USOC is the organization mandated by Congress under the Amateur Sports Act of 1978 to do which of the following? A. govern activities of the United States related to the Olympics, Paralympics, and the Pan Am Games B. represent the U.S. Olympic athletes, coaches, administrators, and other Americans who support the Olympic Movement C. send the U.S. Olympic teams to the Olympics, Paralympics, and the Pan Am Games D. all of these are correct

D. all of these are correct

By turning a parking garage in proximity to the 1996 Atlanta Olympic Village into a mini-Niketown, Nike was engaged in... A. target marketing B. athlete endorsements C. sponsorship D. ambush marketing

D. ambush marketing

Where revenue sharing may be effective as a tool to improve competitive balance is when it is used in conjunction with... A. luxury tax B. soft salary cap C. "reverse-order" draft D. hard salary cap

D. hard salary cap

Which of the following is not a revenue that is shared under league revenue-sharing systems? A. expansion fees when new teams enter the league B. national television revenue C. gate receipts at individual games D. luxury seating revenue

D. luxury seating revenue

As a general rule, league revenues include which of the following? A. local broadcasting revenues B. stadium sponsorships C. preferred seat sales D. none of these are correct

D. none of these are correct

The first intercollegiate athletic contest was... A. a crew race between Harvard and Princeton B. a football game between Harvard and Yale C. a baseball game between Amherst and Williams D. organized and sponsored by a railroad company in order to enhance the company's business

D. organized and sponsored by a railroad company in order to enhance the company's business

In professional sports, the commissioner has discretionary power in all of the following areas except... A. rule making B. approval of player contracts C. resolution of disputes between clubs D. resolution of disputes over player compensation E. disciplinary matters between players and clubs

D. resolution of disputes over player compensation

National Governing Bodies (NGBs) are... A. the federations governing sports throughout the world B. the organizing committees for host cities c. the national Olympic organizing committees in each individual country D. the organizations governing a specific sport within each individual country

D. the organizations governing a specific sport within each individual country

Increased revenue in spectator sports has come from... A. gate receipts B. broadcast contracts C. stadium naming rights D. B and C are correct E. All of these are correct

E. All of these are correct

Sport management firm affiliated with a law firm

Each fills a void by providing the services the other does not offer

Eduselling

Evolutionary form of selling that combines needs assessment, relationship building, stoma education, and after-marketing .

1869 Cincinnati Red Stockings

First professional team

Although the NFL bans public ownership, it has made an exception for what team? A. Miami Dolphins B. Green Bay Packers C. San Francisco 49ers D. Seattle Seahawks

Green Bay Packers

Sustainability

Green management teams to reduce waste

Direct mail

Mail campaigns that each only those people the organization wants to reach

History: Arenas

Needed to fill empty seats on non hockey nights, hosted boxing matches on some nights

1976 National League

North america first professional sport league, included by laws for limits on franchise movement, club territorial rights, and mechanism for expulsion of club

After-Marketing

Providing continued satisfaction and reinforcement to individuals or organizations who are past or current customers

american with disabilities act

Requires new facilities to be accessible to people with disabilities

Telemarketing

Utilizes telecommunications technology as a part of the well-planned, organized, and managed sales effort that features the use of non-face-to-face contact

Benefit Selling

When a product or service is not selling. Promotion and creating of new benefits to offset existing perceptions of the sport product or service

Freestanding sport management firm

a full-service firm providing a wide range of services to the athlete/client

Small sport agency firms disadvantage

a solo agent often cannot offer as many services as a large firm

University venues

consist of stadium and arenas that operate under different economic factors

Soft tax

include added taxes to car rentals, taxis, hotels, restaurants, "sin"(alcohol, tobacco, gambling), and players (additional tax imposed on visiting professional athletes), and affect as much smaller portion of taxpayers, making it easier to levy

Hard tax

include taxes on local income, real estate personal property, and general sales, and often require voter approval because the burden of payment becomes that of the public

Large Sport Agency Firms Disadvantage

large stable of clients, and athlete may feel like a "small fish in a big pond"

Law practice-only firm

lawyer performs many legal task (contract negotiation, arbitration, legal counseling, dispute resolution, and the preparation of tax forms)

In 1996, the NCAA passed Proposal 7, "Restructuring", at the NCAA convention that year. This restructuring plan gave the NCAA divisions...for conduct within their division; it also eliminated the...structure, in which each school and conference had one vote, assigned to the institution's president or CEO.

more responsibility or more control; one-school/one vote

Sports agents Skills

no established educational standards or degree requirements necessary to become a sport agent

Evolution of marketing

occurred through increased competition for the entertainment dollar and through professionally trained sport marketers

C.C. "Cash & Carry" Pyle

often cited as first sport agent

Stadiums

outdoor or domed facilities for baseball, football, and outdoor soccer teams

faculty and administrators got involved in governing intercollegiate athletics because of:

the dangerous nature of football

1905: intercollegiate athletic association of the united states (IAAUS)

was formed in response to severe injuries, to make football safer to play

1895: Big Ten Conference

was formed to create student eligibility rules

Initial Collegiate athletic contest took place in 1800s :

were student-run events