Sport Management Exam 1 Chapters 1-5
Who is Bill Veeck
"The pioneer of promotions", he recognized that to operate successful and profitable franchise, needed to reach the masses not just sport fans,
What is ROI
Return on investment- expected dollar value return on investment, stated as percentage of original cost of each investment
what were the main problems with the Indiana State Fair concert?
-there were no required inspections for temporary structures, -there were no clear protocols for delaying, postponing or canceling events, - no formal procedure for communicating threats -no process or place for emergency vehicles - wrong people in charge of making decisions (Sugarland manager)
2 types of causation
1) "but for"- but for the defendant's actions, the plaintiff would not have been hurt 2) proximate cause- the act and injury are strongly linked, "forseability"- could the defendant have possibly known the injury would occur
Name different types of invasion of right to privacy
1) Appropriation- impersonation 2) Intrusion 3) Public disclosure of private facts 4) false light- publishing false information
Name the types of harm to persons
1) Assault- believable threat of harmful or offensive touching of another 2) Battery- harmful or offensive touching of another person 3) Defamation- false statements made in presence of another, (libel and slander) 4) false imprisonment- unreasonable confinement of another 5) intentional infliction of emotional distress 6) Invasion of the right to privacy
What are some potential defenses to torts?
1) Assumption of risk- risk is inherent to the activity 2) Plaintiff voluntarily consented to activity, plaintiff knew and understands the risks (football and concussion) 3) "The Baseball Rule"- fans assume risk when entering the stadium
what are Bill Veeck's four aspects that make a promotion successful?
1) Item must have value 2) Must be entertaining 3) Must be inclusive 4) Must be memorable
Daniel Goleman and 4 stages of emotional intelligence
1) Self Awareness 2) Self Management 3) Social Awareness 4) Relationship Management
What are the two types of damages?
1) compensatory- compensate the plaintiff, usually in money 2) Punitive- courts fine or punish the defendant to send a message
5 types of market segmentation
1) demographic: age, gender, family size, income, occupation, religion, race, 2) geographic: countries, areas, neighborhoods 3) psychographic: lifestyle, personality, values, opinions 4) usage based: how often they use and how much they use 5) product benefits: benefits consumers seek from product or event
What are the 4 elements of negligence the plaintiff must prove?
1) duty of care 2) breach of duty- failure to meet standard 3) causation 4) injury- actual harm exists
In vicarious liability, what 3 things does the employer need to be able to prove to defend themselves?
1) employee was not negligent 2) employee was not acting within the scope of his employment or job description 3) employee was an independent contractor
What are the 4 elements of finance?
1) forecasting 2) decision making 3) evaluating 4) tracking
Define decision making
1) gather information 2) analyze information 1) problem statement/ framing the problem 2) generating alternatives 3) evaluate alternatives 4) select the best alternative
what are the two types of intentional torts
1) harm to persons 2) harm to property
How does the plaintiff prove invasion of privacy?
1) invasion is substantial 2) invasion is an area for which there is expectation of privacy
What is the purpose of tort law?
1) provide (damages) monetary compensation to injured party 2) deter other from similar conduct in the future
What two things do rival leagues need to be successful?
1) quality players 2) viable cities and markets in which to play
3 types of duty of care
1) relationship inherent in situation 2) voluntary assumption of care 3) duty mandated by law
What were the early sport cases?
1600s, primarily tort law, involved professional baseball
Organizational Behavior
1940s, combo of scientific management and human relations
Empowerment
1980s, encouraging employees to take initiative and make decisions, encourages innovation and accountability
Emotional intelligence
1990s, ability of employees to identify emotions and separate emotions from rational thought, women have higher emotional intelligence generally
How long is the useful life of a stadium
30 years
What is a plaintiff? What is a defendant?
A plaintiff is the person or organization that initiates the lawsuit Defendant is the person or organization that allegedly wronged the plaintiff and must respond to lawsuit
When and where were the first olympics?
Athens, Greece, 1896 Summer
Where was the first Sport Law class taught?
Boston College Law School, taught by Robert Berry
What is a tort
Conduct that is either careless or intentional that results in harm or injury to people or property
what is the difference between a consumer purchaser and a consumer
Consumer purchaser has more buying power, controls the money. For example a consumer purchaser might be a season ticket holder while a consumer would be a one game ticket holder. A consumer purchaser might be a dad of 4 who buys his family tickets to a game.
What is marketing
Creating, promoting, and delivering goods and services to consumers and businesses *** CREATING DEMAND
What is the process of risk management plan developing?
DIM: Develop a plan, implement the plan, manage the plan
Where is the birthplace of sport management
England
what were the Jockey Club's responsibilities?
Establish rules, determine eligibility, designate officials, regulate breeding, settle disputes, discipline rule breakers
What are the 3 common elements of management principles?
Goals/objectives, resources, people
Hard salary cap vs soft salary cap
Hard salary cap: payroll limit is absolute and cannot be violated, NFL and NHL Soft salary cap: payroll limit is set but teams can exceed limit but must pay tax, NBA, MLB, MLS
Libel vs slander
Libel is written and slander is spoken
what was the growing point for the olympics?
London 1908 games
who invented sport marketing?
Mark McCormack and IMG
What is undifferentiated marketing?
Mass marketing, appealing to a wide range of people, more cost efficient for company, McDonalds or Target or Walmart
How are stadiums financed?
Mostly through municipal bonds, also through owner equities, personal seat licenses, naming rights
What were two tipping points for codes of conduct?
NBA 2004- Malice in the palace and NFL 2008 Dead Tree Crew
What is the Rooney Rule?
NFL teams must interview at least one minority candidate for head coaching or VP and above positions, designed to improve diversity in coaching ranks
What are the 4 characteristics of the modern manager?
POLE: Planning (goals, mission statement, vision), Organizing (determining what jobs and who has what jobs), Leading (motivate, stimulate creativity, handle conflict) , Evaluating (establish reporting systems, performance standards)
What is an example of proximate cause or forseability?
Palsgraf vs Long Island Railroad- man carrying fireworks, conductor pulled him onto the train causing him to drop fireworks, fireworks exploded causing a pole down the track to fall on a woman and injure her, the conductor could not possibly have known all of that would happen.
Examples of expenses
Player salaries, staff salaries, facility mortgage, utilities, repairs, insurance, travel, equipment, advertising, game day expenses
What are the four P's of the marketing mix?
Product Price Place Promotion +++Public Relations
How do tournaments operate upside down?
Professionals use facilities constructed for the use of the amateur
Formula for profits or income
Profits/income= revenues(assets) - expenses (liabilities)
What was William Hulbert's legacy within baseball?
Prohibited betting, selling beer, playing on Sundays, players must have clean image, created pennant race to promote baseball as series of games, limited movement of players from team to team, created revenue sharing
ROI formula
ROI= (gains- investment costs)/ investment costs
where did Mark McCormack predict would be the center for sport growth?
Southeast Asia, followed by South America and Africa
Who is the czar of baseball
William Hulbert
when were professional athletes allowed to compete in olympics?
after 1988
Define sport marketing
all activities designed to meet needs and wants of sport consumers (1products, 2services, 3entities: leagues, teams, individuals, 4recruitment and retention of volunteers as relationships)
What is vicarious liability
allows a plaintiff to sue a superior for negligent acts of a subordinate, employer does not need to be negligent to be held responsible
Debt or liabilities
amount of money borrowed plus interest
What is owner's equity
amount of their own money that owners have invested in the organization
what are assets
anything that an organization owns that can be used to generate future revenues (equipment, buildings, stadiums)
What is sport law
application of existing laws to sport industry
Who is Fred Corcoran
architect of pro golf tournament, coined the term "upside down", claimed golf operates upside down
Examples of revenues
broadcast contracts, ticket sales, gate receipts, sponsorships, naming rights, luxury seating, parking revenue, concessions revenue, merchandise, ancillary events, revenue sharing
What is ambush marketing
capitalizing on goodwill associated with an event without becoming official sponsor, rival company attempts to associate its products with an event that already has official sponsors, for example Adidas tries to sponsor an athlete at a nike event
what is competitive balance
consumers of spectator sport seek to be entertained by a game that has 2 roughly equally balanced opponents producing a better game than 2 unequal opponents
Who is Matt Levine
credited with formalizing customer research, created "audience audit" to capture demographic and psychographic information
Who is William Hulbert?
developed first baseball league "National League"
What is risk management?
developing a strategy to maintain control over legal uncertainties
Name different market research methods
fan Intercept surveys or pass by interviews: one on one insight interviews, focus groups, website data, beacons (devices that send you offers), apps
what are bonds
financial instruments that allow borrower to both borrow large dollar amounts and for a long period of time, usually issued by large corporate entities and government
What is a salary cap
financial mechanism to alter competitive balances that limits the payroll teams can pay
Who is Roone Arledge
first person to recognize sport televised had to be more than sport- had to be entertainment -ABC's Monday Night Football and 3 broadcast personalities, more commentary, cameras, etc... Sport broadcasting
What was the human relations movement
founded by Elton Mayo, social factors are important to production, job satisfaction, motivation, partnership, cooperation, good working conditions
Uncertainty of outcome
greater uncertainty = more entertainment value for fans
Indiana State Fair Concert is an example of
gross negligence
what are the benefits of new stadiums?
higher revenue areas like premium seating, personal seat licenses, hospitality areas, sponsorships, naming rights
what is finance?
how organizations generate and allocate funds
How do you create demand?
identify target market of customers, identify needs of customer understand customer create what customer wants provide it at an appropriate value
What is segmentation
identifying subgroups based on factors
What is an important aspect of the DIM process?
involving all relevant employees in the planning process
what are statutes
laws
Credit facilities
leagues maintain these loan pools so individual teams can borrow from rather than borrowing directly from market NFL, NBA and MLB all use
What are important aspects of tournaments?
less dependent on ticket sales and more dependent on sponsorships, strong charity ties, tax deductions, volunteers, community support, some created by marketing agencies like X- Games
What is scientific management
or Taylorism, founded by Frederick Taylor, 1880s, there is only one best way to perform the job efficiently, rewards workers economically based on their productivity
what is an injunction
order from a court to do or not do a particular action
What is a balance sheet
organization's assets, liabilities and owner's equity shown on financial statement
What is an income statement
organization's revenues, expenses and profits over a time period summarized on statement
principal debt
original amount they borrowed
What is a luxury tax
payroll threshold set prior to the season and team that exceed this threshold pay a tax on excess amount, MLB
what is sponsorship
practice of partnering with a rights holder for the purpose of gaining some benefit
what are the two goals of risk management?
prevention and intervention
Who was Albert G Spalding
pro baseball player, first marketer to capitalize on term "official" as it relates to sport product with his "official baseball"
What is target marketing?
promoting product to specific group of people, identifying qualities of consumers and find commonality among purchasers, maximizing sales by appealing to certain groups of people
What do sport lawyers do
represent parties in a dispute, draft rules and regulations and interpret those rules and regulations
What were William Hulbert's contributions to leagues?
revenue sharing, weighted drafts, player contracts, player and fan codes of conduct
what were the two early management theories?
scientific management and human relations movement
Define revenue sharing
teams in league share revenue
What was the first club?
the Jockey Club 1750
what is the one type of harm to property
trespassing
What is negligence?
unintentional/ no intent to cause harm, when person commits an act or omission that causes injury to a person to whom they owe a duty to act with care
What is intentional tort
when one person purposely causes harm to another or engages in activity that is certain to cause harm
What is gross negligence
when the defendant acts recklessly, the person knows that the act is harmful but fails to realize the degree of harm, reasonable person should know someone might get hurt - example: McDonalds Coffee