SM 203 Final
How can sport facilities benefits be overstated?
-Building a stadium is good for the local economy only if a stadium is the most productive way to make capital investments and use its workers. -New sport facility: extremely small effect on economic activity and employment -Sport facilities attract neither tourists nor new industry -A professional sport team creates a "public good" -No recent facility appears to have earned anything approaching a reasonable return on investment, or been self-financing.
Arenas-what is necessary for their effective functioning?
-Built to accommodate one (or more) prime sports tenants or to lure a prime tenant to the facility. -Intercollegiate facilities are financed by private donations, endowments, student fees, fundraising campaigns, and, in the case of public institutions, public grants. -Public owner may manage its own facility or contract our for private management. -Some NBA and NHL teams have built their own stadiums, others have been built by municipalities, state governments, or public authorities. -If the arena is privately built, commercial lenders issue loans to the team, which pledges facility revenue streams as well as collateral. -Recent trends in facility construction include adjacent practice facilities for the primary tenants to increase event bookings
How has logo redesign and expansion contributed to the licensed sporting goods industry?
-Customers want to buy more things. -More licensing deals / more revenue. -Way to stay relevant. -Generate more money by expanding how intellectual property is being used. -Changes in team colors and images, need to buy new products.
What are current trends and concerns associated with sport sponsorship?
-Ethnic marketing through sport sponsorship: globalization of sport and changing demographics of consumers. Companies must be cognizant of key cultural differences, and not be seen as a token effort to reach out to a particular ethnic market. -Overcommercialization - everything is sponsored, events are broken down to smaller units to allow exclusive sponsorship -"Vices" - fighting perceptions of alcohol, gambling, tobacco, creates a slippery slope. Gambling and alcoholic sponsorships are extremely common. Need to fight effects these associations may have on children.
How do corporations benefit from sport sponsorship?
-Exclusivity, "Official Designations"- "Official soft drink of the NFL" -Rights to intellectual properties in advertising and promotion. -Title Naming Rights- Fedex Cup, Bridgestone NHL Winter Classic. -Advertising Support -In stadium signage and promotion, "Thank you to ..." -Access to tickets, player rights and images. -Potential new business.
Describe various methods for financing public facilities?
-Federal government allows state and local governments to issue tax-exempt bonds -Tax exemption lowers interest on debt and thus reduces the amount that cities and teams must pay for a stadium. -Public vs. Private Financing. -Building public assembly facilities meant other services had to be neglected (I.E. Initiating or raising taxes on local/state hospitality industry). -Team owners have had to look for additional revenue to compete for, and pay, their players while maintaining profitability. -Team owners look for a city or state willing to build a new facility but let the team control the stadium revenue streams, thereby allowing the owner to maximize revenue without heavy debt service expenses Bonds, Taxes and Private Investment. Sometimes opportunities to combine public and private funding.
The Business of Telecasting: Rights Fees
-In most professional and college team sports, national television contracts are controlled by the league or conference and individual teams retain radio rights and local television rights. -For individual sports, such as tennis tournaments and boxing matches, the event organizer control the television rights. Key terms in the negotiation of a rights agreement include: -The amount of the rights fees -The territory in which the telecast can (or must) be distributed -The length of the deal -The process for selecting particular games for telecast -Copyrights ownership -Sponsorship rights -The number of commercial units to be included in the telecast -Procedures for preempting coverage in the event of inclement weather or other unforeseen circumstances. -Whether the telecaster will have the first right to negotiate a renewal of the agreement.
Stadiums-what is necessary for their effective functioning?
-Outdoor or domed facilities for baseball, football, and outdoor soccer teams. -Stadium managers try to maximize bookings, but it is more difficult with a stadium than an arena. -Far fewer nonsport events can play in stadiums, primarily because stadiums are significantly larger than other venues and most other events cannot attract stadium-sized crowds. -Stadium managers have become increasingly effective in creating events for their venues that take advantage of all available spaces. (EX: Parking lot to host Carnival, E-Zoo at Metlife). -Ownership, financing, and management issues discussed in arena section also apply to stadiums.
Taxes- What strengths and weaknesses associated with the various methods of financing public facilities?
-Property taxes: paid by homeowners, who are often long-term residents of a city. Called TIF (Tax Increment Funding) an area around the stadium where the tax base is frozen and any additional taxes are used to pay the TIF bonds (KFC Center-Louisville 6 Mile TIF). -Occupational tax: anyone who works in the community; more likely to pass in vote -General sales tax: affects both local residents and out-of-town visitors. These are hard taxes and often require voter approval. -Hospitality tax (Soft): forces visitors to pay directly for the facility. Car rentals, Hotels, "Sin" and players. Affects much less of the population.
Theatres-what is necessary for their effective functioning?
-Public assembly facilities that are primarily utilized for the presentation of live artistic entertainment. -House prime tenants such as symphony orchestras, opera and dance companies, and resident theater groups. -Profits are rare, but the spinoff business from theater attractions justifies public subsidies. -Provide culture and entertainment for a community, enhancing its quality of life.
Corporate Investment/Private Funding- What strengths and weaknesses associated with the various methods of financing public facilities?
-Sale of naming rights for stadiums and arenas is a current trend -Facility pouring rights: being the facility's exclusive soft drink or beer distributor -Outright corporate donations: defray costs in exchange for the publicity and public relations benefits that may result from such a donation. -many universities use this by using naming rights and advertising rights to fund a facility project. Private donors also will provide funding and have their names placed on new facilities Facility revenus: PSL (Personal Seat Liscence) Down payment on luxury suites/club seating. Ticket Tax. Revenue from other sources (IE parking, rent, concessions)
What are current issues related to the licensing of sport products?
-Trademark Infringement: Estimated to be about $200 Billion annually. -Manufacturer and Licensee Conduct: Global sourcing (low wages and unsafe working conditions) -Logo Expansion and Redesign: More licensed products of all types. Changes in Team colors and Images.
Convention Centers-what is necessary for their effective functioning?
-Typically located in downtown (highly populated) areas, they are almost always built and owned by a public entity to lure conventions and business meetings to a particular municipality. -Publicly financed because the rents and feed they charge do not always cover costs. -The economic impact the convention or business meeting has on the municipality can be large. -Convention business is extremely competitive, and municipalities offer significant financial inducements to convention and meeting planners for the opportunity to host visitors. -The increased business, employment opportunities, and fiscal revenue justify the public entity's construction and continued subsidy of convention centers.
What are the different types of events that are used to make facilities profitable or sustainable?
-Venue managers should know a wide variety of genres and be able to quickly access the type of event that would have the biggest impact on the community and the venue. Promoter and Facility director must consider the market in order to ensure the success of the event. Sports: Specific Dates, determined by league, usually planned 8 months in advance. Everything scheduled around primary team's schedule, playoffs can cause problems. Family Events: Disney, Nickelodeon, Sesame Street, and Ice Capades. Typically multiple days, requires large amounts of concession and merchandise. Booking can be challenging based on prep the venue needs and run-time. Prep can be hard. Concerts: Typically booked 6 months in advance. Size, available Tech, age of arena, and capacity dictate types of performers. Touring/Routing scheduled and then promoted. Timing is critical; (I.E. Students on break=bad) Amphitheaters popular in summer. Tradeshows: Multi-day events often in Convention Centers. (NYC Boatshow) Occasionally in stadiums/arenas. Religious Events: Mass Worships, often in summer. Generally booked as a rental with expenses guaranteed, usually held indoors in summers since many other events are outside during this time. Convocations: Graduations, Speaking Events. Community Involvement and interaction. Seasonal Events: Summer Tours, Holiday Shows (I.E. Radio City Christmas Spectacular)
University Venues-what is necessary for their effective functioning?
-consists of stadiums and arenas that operate under different economic factors. -The market for university and college venues is generally dictated by the student population. -Universities tend to provide the venue with tenant teams as well as a certain amount of content through the university. -General intent when selling tickets is to market to the student population.
Local/Civic Venues-what is necessary for their effective functioning?
-smaller capacity and are located in towns or small cities. -Provide the public with the desired event at the best time of the year to avoid undue competition with other events that may be occurring simultaneously. -Essential to have events that fill the calendar -Venues can hold large events but usually do not due to artist costs, venue manager needs to identify what works in the 5,000 to 10,000 seat range. -Essential to have events that fill the calendar. -Facility-operating teams have been successful hosting events that play to local groups such as cheerleading comps. and church conferences. -Has a niche based on the community, and the support the venue receives is critical to its success
Metropolitan Venues-what is necessary for their effective functioning?
-venues in large cities such as MSG in NYC, The Staples Center in LA. -Venues like these are generally referred to as a "must play" for concert tours based on the size of the potential audience. -Often have large capacities, allowing for greater ticket sales. -Skilled labor in metropolitan venues is almost always unionized. -Must-play venue is attractive to promoters for several reasons, promoters with established routing have a variety of local staff, making tour travel less expensive and efficient. -Venue managers often are required to use union labor because of contracts negotiated before the venue opened that were based on funding and economic impact studies
Two new sport facilities will soon exist in Las Vegas. One is a new football stadium for the relocating Oakland Raiders and the other is a new hockey arena for the NHL expansion team the Golden Knights. Though both facilities support professional sport franchises, the impact of each type of facility on the Las Vegas community is likely to be very different. What are four (4) significant differences in the ways these two facilities are likely to impact the Las Vegas community?
1) Arenas are able to be used in more ways than just sport. 2) Arenas can host multiple professional sport teams. 3) Stadiums provide more jobs 4) Stadiums are significantly more expensive on average.
Why has much of our sport programming shifted from the broadcast networks to cable networks?
1)Audiences for any single program are more spread out (smaller). 2)Audiences do not watch advertisements the way they used to TIVO and DVRs. 3) Cable is now widespread in TV households (90% of households have Cable) 4)Cable provides multiple outlets for programming -Tailor content to specific audiences -Provide variety of program simultaneously 5) Cable provides at least one source of guaranteed revenue. Reduced reliance on advertising support.
What are the various types of public facilities?
Arenas, Stadiums, Convention Centers, Theatres, University Venues, Metropolitan Facilities, Local/Civic Venues.
How has the proliferation of televised sporting events impacted the television industry? What are current and future trends for televised sport?
As sports programming has gone up - ratings have gone down. Due to: 1)Saturated market 2)Change in demographics 3)Decreased interest 4)Changes in viewing habits Television responded with: Extreme focus channels (ESPN2, FS1, The Golf Channel, NBA TV, etc.) Future: -Subscription fees (cable model) -Advertising Revenue Sharing (Broadcast Model) -Mobile applications -Self-Production (Big Ten Network, MLB Network, MSG Network) -Pay-Per View (ESPN +, B/R Live)
A significant portion of televised sport has shifted from broadcast ("free") networks such as ABC, NBC and CBS, to cable networks over the past few years. For example, 35 of the 40 college bowl games this past season were televised on a cable network. This past fall, Major League Baseball split coverage of the playoffs between FOX (broadcast), Fox Sport 1 (cable) and TBS (cable). What are four (4) trends in the television industry that have contributed to the shift in sports being shown on cable networks instead of broadcast networks?
Audiences for any single program are more spread out (smaller). Audiences do not watch advertisements the way they used to TIVO and DVRs. Cable is now widespread in TV households (90% of households have Cable) 4) Cable provides at least one source of guaranteed revenue for broadcast companies so there is less risk involved. Cable also has the ability to tailor content for specific audiences and provide a variety of programs simultaneously.
Describe the basic model of broadcast network television. How does the cable network television business model differ?
BCast"Network - Advertisers - Audience" Cycle vs. Cable"network—advertisers plus subscription fees—audience" cycle. Bcast-Advertising is predominant source of revenue. Distribution/retransmission fees also collected. Cable-Advertising fees still key source of revenue. Subscriber fees are charged to cable providers. Per subscriber per month fee. Example: ESPN charger Comcast almost $6 per subscriber per month for the right to include ESPN in its cable packages. Bundling is key in negotion for these per subscriber contracts.
Bonds-What strengths and weaknesses associated with the various methods of financing public facilities?
Bonds: promise by the borrower to pay back the lender a specified amount of money, with interest, within a specified period of time. Tax-exempt available in two ways: -General obligation bonds: backed by the local government's ability to raise taxes to pay off the debt (safe). Nonguaranteed bonds are sold on the basis of repayment from designated revenue sources (concessions, parking, etc.), although they do not generally require voter approval, the interest rate is higher compared to general obligation bonds. (risky). Privately Funded Bonds: Private-placement bonds - provide a lien on all future revenues generated. Asset-backed bonds - secured through specific assets.
What is "branded" apparel? What are the advantages to manufacturers when they "brand" their merchandise?
Branded product: making a company seem like it is more than just the product. Tremendous growth of use of company logo over the past 20 years to develop brand and image recognition. Reduce reliance on other's intellectual property. Recognizable and coveted brand, equity, then can charge more.
What are "designated market areas?" How can they be used in determining audiences for televised programs? How or why might they be important to both networks and potential advertisers?
Designated market areas (DMA): Currently 211, and are geographical areas all across US. Nielsen "people meter" measures national and local DMA audiences
Discuss the basic issues that need to be determined when deciding to broadcast a sports event, or to continue broadcasting a sports event.
Determinants of Sport Telecasts: Cost of producing the event, Audience Characteristics (Size, Demographics, Psychographics, location). Components of a Successful Televised Sporting Event: Event has meaning, viewers get to "see" the event viewers experience the event viewers are reminded of positive societal values
History of Stadiums
Existed since ancient times, many facilities today bear the name of an ancient facility, gain in the popularity of modern sport, such as professional baseball and intercollegiate football, launched construction of stadiums, constraints of space limitations dictated the irregular sizes and shapes of the older ballparks, early NFL teams played in baseball stadiums until new stadiums were built
What are a facilities revenues and expenses?
Facility Revenues and Expenses: Ticket sales offer lion's share of revenues. Ticket rebate: surcharge on ticket that goes to facility. Ancillary revenue: sale of food, beverage, parking, fees, and sponsorships. Marketing fund: profits from other shows put aside to invest in future programs. Market knowledge and demographics are key factors in deciding whether to host a show. Sponsorship is also important, big driving factor for revenues Primary expenses are mortgage and rent, maintenance and repairs, utilities, taxes, marketing and sales, personnel, and insurance. Usually mortgage on most facilities, also have year-to-year costs such as maintenance, extreme weather, etc.
Describe the evolution of stadium and arena development in the United States, and the issues that municipalities and team owners had to address over time.
Gain in the popularity of professional baseball and intercollegiate football launched the construction of stadiums • Hockey owners built arenas to host their teams in 1927 -Needed to fill empty seats in arenas on non-hockey nights (boxing matches, ice capades) --Basketball enters arena picture and arena owners earn revenue from two tenants
How are sport facilities managed?
Goal: to provide a clean, safe, and comfortable environment for patrons. Functions: security, cleanup, marketing and sales, scheduling and bookings, operations, event promotions, and finance and box office operations.
What are the various ways in which corporations sponsor sports?
Governing body sponsorship, team sponsorship, athlete sponsorship, media channel sponsorship, facility sponsorship, event sponsorship, and sport-specific sponsorship.
How do these sponsorships provide promotional opportunities for corporations?
In-Venue Promotions: game day giveaways (bobbleheads, thundersticks, etc.), theme days, and continuity programs (fans must attend multiple games to obtain product), increase "value-added" that teams provide their paying customers. Success varies based on date of promotion, time of season, opponent, quality of team, quality of item given away, etc. In-Store Promotions: premiums (inducements to buy a certain product/item), contests and sweepstakes, sampling (provide free samples of products), POS/POP displays, coupons (free standing inserts (FSI)). Cross- Promotion: sponsorship shared with other companies, beneficial because sponsors share total cost, promote several product lines within same company, weaker company can "piggyback" on stronger company, allow testing of a relationship, create a pass-through opportunity. (IE Wilson and Lincoln for US Open). Governing body sponsorship (MLB, NCAA, IOC) - "official" sponsorship status, tend to be larger, international organizations, overall rights, but most secure individual team rights separately. Team Sponsorship (Detroit Tigers, US Olympic Team, Manchester City FC) - local or regional companies or companies with smaller marketing budgets, "official sponsor" of the team, conduct in-venue promotions and access to team tickets and hospitality, most leagues allow competitors of national sponsor to sponsor local teams, ex. Local banks sponsoring NFL teams. Athlete Sponsorship (Tiger Woods, Russell Westbrook, LeBron James) - usually involves an endorsement of the product or company, tend to attract more sponsor interest because they generate a greater number of visible impressions on TV, can be riskier to sponsor athletes. Q-Score-Nielsen determines a players marketability. Media Channel Sponsorship (ESPN College Gameday, College Bowl Week) - companies purchase advertising or promotion during sport-related broadcasts, included commercial sports, on-sight signage, etc., --Often have no affiliation with the team or league being broadcast, which can result in ambush marketing, but many sport orgs. now require their official sponsors to purchase advertising within the event broadcasts or provide them with a "right of first refusal" to purchase broadcast advertising time, with the intent of eliminating ambush marketing. Facility sponsorship (naming rights, pouring rights) - one of fastest growing sponsorship platforms, facility sponsors typically sponsor the sport properties that play in the facility in some other capacity. Event sponsorship (college bowl games, McDonalds all American game, Fedex Cup) - enables companies to tie directly into the event atmosphere over a relatively short time period, typically a few days or a weekend. Sport-specific sponsorship (auto racing, triathlons, marathons) - enables a company to direct its sponsorship efforts to a specific sport that best appeals to the company and its targeted consumers and provides a strong fit for generating brand identity, most effectively leveraged through the additional use of governing body, athlete, and/or media channel sponsorships
What are licensed products and how does licensing work? What are the various components involved in licensed goods?
Licensees pay licensors money to put the licensor's logo on their products. Licensor - owner of the intellectual property to be used (Team/leagues, colleges) Licensee - "borrower" of the intellectual property to be used (Nike, Adidas, UA), pay for the right to manufacture products bearing team names, logos, mascots, colors, etc., if these names and logos are registered they are referred to as trademarks. Royalties: Fees paid by licensee to licensor for the right to use licensor's intellectual property. -Range from 4% to 20%, based on gross sales at wholesale cost (costs paid by retailer). -Apparel royalties range from 11% for on-field items to 15% for player-identified items
International Association of Venue Managers (IAVM)
Management principles are similar for stadiums and arenas, and their managers are eligible for membership in the IAVM. With the goal of providing the public with a safe, enjoyable experience while providing a cost-effective and efficient means for the venue owner..
What are issues that must be considered relative to the marketing of facilities?
Marketing: Account for location of venue, culture of community, and production of events. -Must focus on marketing new facilities, securing anchor tenants, attracting events, and developing relationships -Internet has allowed easier booking of events -Saturated Marketplace (Cities with multiple Venues) -Promoters need to earn a base amount to cover the artist guarantees and venue expenses. Local economy determines ticket sales and price point.
Advertising efficiency
Measured by "cost per thousand" (CPM)($100 to reach 10,000 people = CPM of $10). Super Bowl: $4.5 million per 30 second shot Audience = 110 million+$4.5 million/110,000 (thousand) = $40.91 per thousand viewers
How do corporations assess the effectiveness of their sport sponsorship?
No exact formula to measure ROI. Internal feedback for sales departments, sales promotion bounce back measures, print media exposure, television media exposure, primary consumer research, dealer/trade response, and syndicated consumer research. Difficult to determine how much incremental sales are directly attributable to a specific sponsorship program or how awareness has increased. Consumer surveys are often used as a first step in measuring ROI. Many companies specialize in measuring ROI. - Focus on "Do consumers understand your sponsorship? Has the sponsorship made a connection with your target audience?, etc." Sport properties often hire firms to measure the value the property provides to their sponsors
What do sport organizations expect from corporations from these sponsorship agreements?
Pay Rights fees- Typically multi-year commitments paid out periodically to ensure stability. Advertising Commitment- Spend a pre-determined amount advertising with the team. Goal is 3/1 ratio, $3 advertising fee, $1 sponsorship rights, in reality closer to 2/1. Sport entity promotional commitment.
How did Roone Arledge (Monday Night Football) revolutionize the way we view sport?
Pete Rozelle and Roone Arledge are responsible for growth of sports broadcasting. Created 1st pooled network contract, Base on "league think", Ruled in violation of anti-trust law. Persuaded Congress to pass the Sports Broadcasting Act (1961) - Granted football, basketball, baseball and hockey antitrust immunity from the pooled sale of broadcast rights.
What are issues that must be considered relative to the Promotion of events with/at facilities?
Promoting: Keep financial risks low and profit margins high. Co-promotional Model - facility and promoters split the risk and revenue. Can provide chance for higher profit, but also loss, if tickets don't sell. Rental Agreements: promoters pay a specified amount up front and other costs covered by promoter. Fixed cost for venue. Relies on Ancilary revenue (IE Concessions) to increase profit margins. Majority of shows brought by outside companies (Live Nation)
How are licensing programs administered in professional sport leagues?
Properties division: for-profit branch of the league. Duties and roles: approve licensees, police trademark infringement, distribute licensing revenues equally among league franchises, and usually handle marketing and sponsorship efforts as well. Player Associations- Operate their own licensing agreements related to the use of player likenesses and/or names (video games, trading cards, apparel, collectibles). Individual professional sport (PGA, LPGA, WTA, ATP) all operate their own licensing activities.
What do measurements such as ratings, share, and "cume" tell us about the audience viewership (TV) or listenership (radio)? Why are these numbers important in the business of sport broadcasting? Why are tennis and golf televised despite their consistently low ratings?
Ratings = % of ALL TV households that are tuned in to the program. Approx. 115.6 million Television households. Each rating point = 1% of TV households. 1.156 million households = 1 ratings point. Can be broken down into National, Certain DMAS, or one DMA. Share = % of TV households watching television who were tuned in to the program. Share is always larger than ratings (smaller denominator). "Cume" = total number of listeners/viewers over a specified period of time (Season, Week, Event)
Telecast Rights
Rights and Production Network pays fee, and is responsible for all costs/expense of production. High-risk High-reward model. Rights only Network pays rights, organizer responsible for production often includes some form of barter. Time buy Organizer buys time on network, and is responsible for production
You work for a Fortune 500 company, and have been assigned the task of developing ways for the company to gain greater brand recognition and increase sales. You suggest that the company get involved in sport sponsorship. The CEO asks you why they should invest in sport. Defend your position by providing four (4) key arguments that illustrate the value of sport sponsorship, and the promotional options it provides.
Rights to intellectual properties in advertising and promotion.Exclusivity, "Official Designations"- "Official soft drink of the NFL". Access to Player Rights and images. In stadium signage and promotion, "Thank you to ..." Access to tickets. There are a variety of different promotions you are able to do including In-Venue, In-Store and Cross-Promotions. Brings the potential of targeting DMAs and specific target demographics.
Describe some of the current issues associated with the design, construction, and operation of today's stadiums and arenas.
Security: Ensure safety and comfort of ALL spectators, bag checks, pat downs, and metal detectors are now normal, regular functions in day-to-day ops., includes physical barriers to entry, surveillance technology, and an increase in security personnel. Crowd Management Plan: categorizing the type of event; knowing surrounding facilities and/or environment; being aware of team or school rivalries, threats of violence, the crowd size and seating configuration; having an existing emergency plan, and using security personnel and ushers. Sustainability: public facilities use more energy per square foot than any other retail industry Facilities working to build green buildings (reduce waste, cut pollution, recycle)- makes financial sense, builds brand and cuts costs. LEED Certification- (4 levels) helps facility operators identify green building design, construction, operation, and maintenance. 25 North America sport facilities certified. ADA (Americans with Disabilities Act): To prevent discrimination against qualified people with disabilities in employment, public services, transportation, public accommodations, and telecommunication services. -Requires to be accessible to people with disabilities including concession areas, public telephones, restrooms, parking areas, drop-off and pick-up areas, entrance and exits, water coolers, visual alarms, and signs. In 2011, the ADA was updated with a number of changes directly applicable to stadiums and arenas including accessible seating, and ticket sales guidelines, etc. Cutting edge facilities: Estimate nearly $6 billion spent on facility construction of renovation in 2009. Fueled by finding new revenue sources and modernizing facilities.
How are licensing programs administered in collegiate sports?
Some larger Division I schools administer their own licensing activities. Retain a greater portion of sales revenues (overhead costs to operate program). Other FBS and FCS schools outsource licensing activities to independent companies. Collegiate Licensing Company (owned by IMG College) represents: Over 200 colleges/universities, bowl games, conference, NCAA, Heisman Trophy. Learfield Licensing Partners is another Licensing resource group. Colleges and Universities pay a portion of royalties (about 50%) to CLC or LRG for their services (no overhead or financial risk for university, but less revenue from sales). College sport market was about $3.5 billion in annual sales (apparel accounts for about 62% of sales, EA Sports NCAA football accounted for most the non-apparel sales). Biggest growth trend is in womens apparel.
How does sport sponsorship differ from a sport licensing agreement?
Sponsorship = paying teams/leagues to be associated with them. -A cash or in-kind fee paid to a property in return for access to the exploitable commercial potential associated with that property. -A commercial agreement between a company and sport body to enter a joint venture to promote their mutual interest Today, sport sponsorship involves in-depth consumer research, significant financial investment, and strategic planning Licensing = paying team/league to use intellectual properties on various products
Why do cities subsidize sport facilities? What are the potential benefits? What are the economic realities of publicly subsidized facilities?
Sports facilities are thought to improve the local economy in four ways: -Building a facility creates construction jobs -People who attend games or work for the team generate new spending in the community, expanding local employment -Team attracts tourists/companies to the host city -New spending has a "multiplier effect" as increased local income causes still more new spending and job creation. Popularity of sport means subsidizing will not end soon (IE New York Yankees and Mets Stadiums)
What is a trademark and/or service mark?Federal registration not mandatory, but has several advantages including:
Trademark and/or service mark: a brand name; includes any word, name, symbol, device, or any combination, used or intended to be used to identify and distinguish the goods/services of one seller or provider from those of others, and to indicate the source of the goods/services. -Notice to the public of the registrant's claim of ownership of the mark. -Legal presumption of ownership nationwide -Exclusive right to use the mark on or in connection with the goods/services listed in the registration
What were some the innovations and practices that made Monday Night Football such a success? How do we see the influence of these practices in other sport broadcasts today?
added "entertainment" to sport broadcast technical component, "Human Component" Event has meaning, viewers get to "see" the event, viewers experience the event, viewers are reminded of positive societal values
How is the Modern era of Stadium and Arena Construction different than in the past?
• Modern era: -Baseball-only stadiums were becoming obsolete during the 1960s -Team owners could make a great deal of money by having their host city build their stadium rather than building it themselves -Cities built shiny new facilities to keep their teams enthusiastic about their hometowns. Stadium construction boomed during this time because cities were competing for major and minor league teams. Believed it increased quality of life. -Concerts and Two-Sport facilities convinced city-officials that Stadiums/Arenas were good investments. -1990's however, it was discovered that were not desirable for either sport, trend towards sport specific stadiums. -Financing has become a dilemma, emphasis on facilities that drive revenues, team owners have sought facilities that provide preferred seating, parking, concessions, and stadium sponsorship. New Technology- added revenue source. -Franchise free-agency has developed, team owners are moving out of their traditional markets, not because of size, but for more profitable facility deals. The facility in which the team plays holds the most importance to profitability.
