Sport Management Chapter 10

____can occur when an agency represents a free-agent basketball player as well as several NBA teams.

A conflict of interest

The chapter outlines several economic challenges currently facing sport marketing agencies. Briefly discuss three of these.

Any three of the following: 1 - The banking and automotive industries are just beginning to emerge from challenging years of pushing to improve their business models and satisfying a high level of accountability and public scrutiny, which often resulted in a significant reduction in sponsorship spending. 2 - Beyond specific sectors, the generally weakened economy resulted in increased scrutiny of overall budget with many companies implementing cost-cutting measures. With cost becoming the distinct area of focus, this has resulted in a move back to evaluation by quantitative return on investment (ROI) models and away from more qualitative return on objective (ROO) and return on experience (ROE) models. 3 - As economic conditions constrict the total pool of potential sport-related stakeholders and the funds they may dedicate to sport, it is increasingly imperative that the sport management and marketing agency become more creative in terms of activation and more responsible in terms of accountability and results. 4 - Sport management and marketing agencies and their clients will need to become more focused on creating business solutions using marketing platforms. These platforms must be structured for cost efficiency while amplifying marketing impact. 5 - Corporate brands and category segments that have been significantly restricted in sport, such as alcohol purveyors, are now back in play. Agencies must identify new opportunities for products and brands that have limited or no sport marketing experience. 6 - Sport management and marketing agencies must become nimbler in making quick adjustments to capitalize on new and emerging opportunities and markets. The time available to wait and react is limited. 7 - Sport products such as sponsorships and premium seating (e.g., suites) may be sold in different incremental offerings (e.g., monthly, quarterly) than they were in the past. Agencies must be able to visualize how to use sport in a more constricted time basis that might lead to a better ROI and expanded marketing opportunities. 8 - New revenue models featuring revenue sharing may become more common because of the economy. Agencies may garner less up-front money, with deals structured for more of an upside in terms of revenue sharing. 9 - As deal lengths shorten and contract amounts decrease, sport management and marketing agencies will need to expand their client bases or the breadth of their offerings to ensure financial stability. 10 - Global connectivity of sport has and will continue to grow exponentially. Sport management and marketing agencies must become well-versed in global thinking and have a strong understanding of different cultures.

Which of the following would be classified as a specialty sport management and marketing agency?

Excel Sports

A psychology degree is preferable for those entering careers in sport management and marketing agencies.

False

Solicitation involves becoming a smaller organization by reducing personnel or departments.

False

Sport management and marketing agencies often hire mid-level employees who have just completed their college degrees.

False

__________ are individuals or groups responsible for controlling the flow of proposals or solicitations to the decision maker.

Gatekeepers

__________ agencies are those that fall between the expansive scope of work performed by full-service agencies and the narrow scope of work undertaken by specialty agencies.

General

What was the first sport management and marketing agency?

International Management Group

Who founded the first agency dedicated to representing professional athletes?

Mark H. McCormack

A method by which the output or outcome of an investment is calculated in light of the dollars or resources spent on that investment is referred to as __________.

ROI (return on investment) analysis

. Specialty agencies specialize in a specific type of service or a specific stakeholder clientele.

True

A full-service agency performs strategic planning, sponsorship solicitation, marketing activation, and event management tasks.

True

Grassroots programs are often aimed at children or adolescents who have the qualities, abilities, and potential to become consumers in the future.

True

The first sport management and marketing agencies were formed primarily to represent athletes in contract negotiations and to seek endorsements and other revenue streams for these athletes.

True

__________ is a full-service sport management and marketing agency and was the first true global agency.

WME/IMG

Briefly describe the involvement of a sport management and marketing agency in grassroots marketing programs.

designs programs to involve participants in activities and events targeted to certain demographic groups and ethnic markets

Associating the name of a sponsor with the name of an event or facility in exchange for cash or other considerations is referred to as __________.

entitlement

A sport management and marketing agency is a business that acts on behalf of an __________ involved in the sport industry.

entity

Which of the following functions involves tournament operations, hospitality and entertainment, fan engagement, sponsorship and ticket sales, and public relations?

event management and marketing

In which category of sport management and marketing agencies are WME/IMG, Octagon, and Wasserman Media Group?

full service

What are the four categories of sport management and marketing agencies?

full-service agencies, general agencies, specialty agencies, and in-house groups

The assets a sport property has to sell are referred to as __________.

inventory

Briefly describe the involvement of an event management and marketing agency in event creation, management, and marketing

manages, activates, and markets tournaments, festivals, bowl games, and other sport and lifestyle special events; performs services such as tournament operations, hospitality and entertainment, sponsorship and ticket sales, licensing and merchandising, content production, public relations, and promotion; and creates innovative experiential events to engage fans and entice them to become consumers and product advocates

Briefly describe the involvement of a sport management and marketing agency in research and evaluation.

performs research and evaluation to justify the cost, value, and relevance of a program to the company involved with the product or agency

Briefly describe the involvement of a sport management and marketing agency in content development.

performs services such as developing and producing programming for cable, satellite, and pay-per-view television and social, digital, and mobile media to maximize revenue opportunities

Briefly describe a sport management and marketing agency's involvement in hospitality management services.

performs services such as turnkey hospitality, event and experience management, promotional coordination, and licensing and merchandising

What forms can a sport entity or client take?

person, corporate brand, media company, property (e.g., an event, a team, a university, a venue), and concept

Briefly describe the involvement of a sport management and marketing agency in strategic planning and management.

provides consultative services to the client regarding business, marketing, and promotional decisions to best meet the client's objectives; consults about solicitation and securing corporate sponsorships; and identifies properties that may assist the client in achieving corporate goals and objectives

What actions may be undertaken on behalf of a sport entity or client?

representation, negotiation, sales, licensing, marketing, management, strategy, experiential activation, content creation, and measurement

Briefly describe the involvement of a sport management and marketing agency in contract negotiation.

represents a client in contract discussions, which could be between a player and a team, a corporate sponsor and a media company, a corporate sponsor and an athlete, or other combinations of parties

Which of the following have grown as corporate sport sponsorship continues to grow in popularity?

rights fees and media commitments

Which of the following sport management and marketing agency functions is undertaken for all four main client groups (i.e., talent, properties, corporate brands, media companies)?

strategic planning

According to the text, sport management and marketing agencies can provide up to eight services for their clients. Name four of them.

strategic planning; sponsorship and licensing solicitation; event creation, management, and marketing; contract negotiation; marketing activation; content development; financial/investment planning; research and evaluation

Sport management and marketing agencies perform functions for industry stakeholder groups defined as

talent, properties, corporate brands, media companies

When a sport management and marketing agency hires a new employee for an entry-level position, what are some critical considerations for the agency?

the candidate's potential, which is generally determined by his level of preparedness for the interview; his eagerness to contribute and be part of a team; his flexibility to work off hours and weekends; and his perceived demeanor or cultural fit within the organization as a whole

Who is the sole client of an in-house group?

themselves

The term __________ refers to a program or product that the vendor executes without further involvement from the client.

turnkey

List four current challenges facing sport management and marketing agencies.

uncertainty in client base, in-house versus outsourcing, conflicts of interest, mergers and acquisitions, and labor unrest

Briefly describe the involvement of a sport management and marketing agency in sponsorship and licensing solicitation for a professional athlete.

works on behalf of the client to sell rights, assets, or other inventory for commercial benefit and performs services such as securing endorsement opportunities, personal appearances, product placements, book contracts, movie and television roles, interviews and feature stories, and video game presence