sports management 110 final (drexel) chapter 12 and 13, 17, 16
full-service agency
perform the complete set of agency functions IMG and Octagon
Zero-base budgeting
review of all activities and related costs of an event as if it were the first time
non-guaranteed tax bond
sold on basis of repayment from designated revenue sources (concession, naming rights, parking revenue) - higher interest rate o bonds issued with only the potential financial support of the proposed project. Issued at higher interest rate Higher risk, relies on concessions, naming rights, parking revenue, etc.
hard tax
taxes on local income, rel estate, personal property, and general sales and often require voter approval bc the burden of payment becomes that of the public
soft tax
taxes to car rentals, taxis, hotels/motels, restaurants, sin and players and affect smaller portion of taxpayers making it easier to levy
during 1950
television replaced radio as the nation's primary mass medium
First outlet to cover a sporting event
the Boston Gazette when it sent a reporter to London to cover a boxing match.
communications
• All methods used by a sport organization to deliver key messages proactively to a diverse group of stakeholders
crisis
• Any non-routine event that could be disruptive to an organization • Unusual short-term incident that has real or perceived negative impact • Can cause significant stress and irreparable damage - overreaction is most common error
beat reporter
• Assigned to maintain daily contact with team, maintain blogs and Twitter accounts
Two types of cable content channels
• Below Ground Cable Company (Comcast, Time Warner) • Satellite Companies (Direct TV, Dish Network)
• Annual team media guide publications
• Created and distributed prior to season • Includes staff directories; biographies of all coaches, players, owners, and front-office staff; team and individual records
Community relations objectives include:
• Creating programs that will benefit local and charitable causes • Common examples: educational and outreach programs in an organization's area of business
1990's
• DIRECTV delivers programming to homes via direct broadcast satellites (DBS) (DIRECTV, n.d.). • Public usage of the Internet started growing at a rate of 100% per year (Internet World Stats, n.d.). • :AOLofferedmultimediacontentincludingnews, reference, entertainment, and educational material (McCracken, 2010). • ESPN2 launched • ESPN created the X Games • First digital video recorder (DVR) introduced
defamation
• Giving inaccurate information to the media.
stakeholders
• Groups/individuals with a direct or indirect interest in organization. • Advances in technology have made world smaller • Shifted sport industry's communications needs • More aggressive and strategic communication plans are vital to organization's success
2000's
• High-definition television (HDTV) • ESPN first sports network to launch an HD channel (ESPN Media Zone, n.d.). • Growing availability of high-speed broadband Internet connectivity. • All the major American professional sport leagues have launched their own networks.
crisis plan
• Identifying crises, identifying the probability of their occurrence, creating a plan of actio
press release
• Lets people know what organization is doing • Sent out to media in hopes of stimulating favorable stories about an organization • Written in the standard inverted pyramid style of writin
Family Educational Rights and Privacy Act (FERPA)
• Limits personal, academic, and medical info to media • For college: student-athletes receiving federal funds must give consent to release academic/medical info
1970s
• NCAA men's basketball championship was first televised on Monday night • HBO delivers Ali-Frazier fight via satellite. • Ted Turner beams TBS signal nationwide via satellite. • ESPN starts. Sports 24 hours a day
Three typical rights arrangements for networks
• Rights and production deal • Rights only agreement • Time buy
Health Insurance Portability and Accountability Act (HIPAA)
• Sets limits on providing medical information to others.
World Wide of Sports - 1961
• Show fans "the thrill of victory and agony of defeat" • Up close and personal stories of athletes in addition to sport events
1960s
• TV generating twice as much advertising revenue than radio • First use of videotaped "instant replay" in a sport telecast was during the Army-Navy game on CBS
cable television
• Video delivery service that sends signals transmitted by cable (wire or satellite) to subscribers (ESPN, TNT, MTV, VH1). • Cable Content Channels • Distribution Platforms
EVent Management Functions: Volunteer Management
- 1. Working with event organizers and staff to determine the areas I which volunteers are needed and the quantity needed - 2. Soliciting, training, and managing volunteers
private funded stadiums
- A method of funding major capital investments, especially those with high earning potential and high risk by private company (corporate) investments - Direct borrowing, cash, fundraising, investors, sponsorships, PSL's
sport event management
- ALL FUNCTIONS related to the planning, implementation, and evaluation of a sport event - Requires: Finance/budgeting, risk management, tournament operations, registration, volunteer management, and event marketing
Finance/Budgeting Sport Event Functions
- Critical to successful sport event management - Budgeting attempts to predict revenues and expenses for a particular event
types of agencies
- Full-service agencies - Specialized agencies - In-house agencies:
Event management functions: broadcasting
- If an ___ outlet doesn't feel an event will be attractive to a large audience, limiting the ability to sell advertising time, then the outlet won't be willing to pay a rights fee to televise or broadcast that event - Options as a sport organization social media?
1980s
- NCAA placed limits on amount school could appear on television - • NCAA exempt form Sports Broadcasting Act of 1961
Event Management Functions: Tournament Operations
- Nuts and bolts of an event - Pre-event, actual event, and post-event
Risk Management Sport Event Functions
- Protecting the organization from anything that could possibly go wrong and lead to a loss such as financial loss, equipment or property damage, loss of goodwill, and loss of market share - Waiver and release of liability o Form signed by participants and volunteers that releases venue and event managers from negligence - Purchasing insurance o Provides security to an event regarding potential financial losses
Event management functions: license/merchandising
- Sale of items that display an event name or logo o Usually only beneficial for large, televised, multiday events - Advertise bran recognition of event - Potential revenue source through sales generated - Costs?
Script- Actual event
- Specific, detailed, minute-by-minute schedule of activities throughout the event o The time of day and what is taking place o The operational needs (equipment and setup surrounding each activity) o The event person(s) in charge of each activity
2 Major REVENUE Sources for methods of delivery
- Subscription fees - monthly payments to carry each channel on its platform (usually per subscriber) - Advertising Revenue
Board of Regents v. NCAA
- Supreme Court ruled schools could sign own broadcast deals in college football
Event management functions: ticket sales
- Ticket sales for medium and smaller events are a less effective way to generate revenues - Ability to charge admission is dependent on where the event occurs and how easily the event manager can control entry to the event (ex: golf) - Impact of technology paperless tickets
general facility revenue
- Ticket sales, ricket rebate and price points, sponsorships, naming rights, rent from tenants/touring acts, luxury boxes/suite sales, ancillary
Event management functions: website development
- Websites URL should be name of event or something close - Should provide basic event details o When/where is it o How can you buy tickets o Online purchase ticket option o News releases
Event Management Functions: Registration
- crucial for making a good first impression on clientele - Information being collected/distributed at the registration point o Waiver forms, identification (alcohol), event schedule, registration fees, new registration and pre-registration - Computer system or manual?
Event management functions: event marketing
- integrated marketing approach o Corporate sponsorship, Advertising, Public relations, Hospitality, Ticket sales, Broadcasting, Web site development, Licensing/merchandising, Fundraising
VNR (video news release)
- pre-produced piece that includes a written summary or press release that is edited for broadcast, making it more attractive and time saving for a TV producer to air
facility management
- process of managing and coordinating the physical workplace to ensure functionality of the built environment by integrating people, place, process, and technology. - Primary function is to plan, establish, and maintain a work environment that effectively supports the goals and the objectives of the organization
? - new or renovated stadiums in a 20 year period (1989-2009)
103
- ? sports facilities were constructed or renovated in 2004
25
? - billion spent on new construction in 2008
3.34
? sports facilities were constructed or remodeled in 2005
50
marketing fund
A pool of money that is set aside from the profits of other shows. The concessionaire and the venue director each agree to a certain share of the percentage of sold goods, and they use the pool to help invest in future programs.
B-roll
A tape of raw footage that is not a finished segment that would accompany a written news release
AFL - 1960
ABC acquired rights to the new American Football League (AFL)
Sport Broadcasting Act of 1961
Antitrust exemption for big 4 leagues for pooled sale of broadcast rights
Free-to-AirBroadcasting
Broadcast sent in a clear (unencrypted) form allowing any person w/ appropriate receiver to get the signal (ABC, CBS, NBC)
1800
Electronic communications began with telegraph () and telephone (), which relied on electricity and conductive wires
1921
First radio broadcasts of sporting events: • April 11, : KDKA in Pittsburgh broadcast the first live sport program, a boxing match. • August 5, : KDKA broadcast first baseball game—Philadelphia Phillies vs. Pittsburgh Pirates.
Monday Night Football (1970)
First sport programming series in primetime
• ABC Executive Roone Arledge • NFL Commissioner Alvin "Pete" Rozelle
Growth in sport broadcasting was dominated by two me
PR
Non−media-related communication efforts to directly interact and connect to the fans
public funding forms
TIF, direct financial subsidy, zoning changes or infrastructure improvements, taxes
co-promotional model
a deal structure where risk and revenue are shared - can prove greater profit but carry risk of loss
Pittsburgh Athletic Co. v. KQV Broadcasting Co. (1938)
a federal court ruled that the home team controls all commercial broadcasting rights to a sport event.
sport property
a person, company, event, team, or place
cash-flow budgeting
accounting for the receipt and timing of all sources and expenditures of cash
TIF (tax increment financing
available in a square mileage of land around the facility where the tax base is frozen and any additional taxes added are used to repay those bonds
general obligation tax bond
bonds repaid with a portion of the general property taxes and requires voter approval -o issues with full financial backing of issuer Backed by government and require taxes, usually tax-exempt, AT&T stadium
convention center
built and owned by public entity built to lure conventions and business meetings to a particular municipality publicly financed
facility ownership falls into 3 categories
community/state colleges private facilities
grassroot program
created by organizations attempting to target individuals at the most basic level on involvement, sport participation
stadium
derived from ancient Greek stade, a site for early olympic-style athletic competition, such as early olympic games first held in olympia greece
in-kind sponsorships
event provides typical sponsorship benefits in exchange for a specified amount of free advertising space
in-house agency
formations of separate departments or divisions dealing with event management within major corporations
tax-exempt bonds public stadium financing
general obligation nonguaranteed
arena
indoor facilities that host sporting and entertainment events -built to accommodate one or more prime sports tenants or to lure a prime tenant to the facility -colleges and universities
taxable bond
issues by private entity private-placement bond asset-backed bond
specialized agency
limit scope of services performed or type of clients serviced
saturated market
markets with several venues in a close proximity to one another
public relations
must develop a good working relationship with members of media (through hospitality) creativity to attract interest
Phase 2 - 1960 to 1979
o 57 sport and entertainment facilities were built o cities began financing stadium projects o multi-purpose stadiums o "cookie-cutter" veterans stadium, three rivers stadium, riverfront stadium
phase 3- 1887 to present
o 90 new facilities over 20 years - 80% of major professional sports facilities have been replaced or substantially upgraded o single-purpose o public financing covered about 71% of the costs
Phase 1- 1880's to end of Great Depression
o Financing was primarily private funds
Private- corporate investment
o Private- use of private funds (organization or individual) o Emphasis is on stockholder wealth and stock price o Sponsorships
Public- government and taxpayers
o Public- use of government funds (taxes, borrowing) o Keep public subsidy to minimum to expand cash flow bonds
advertisting
o expenses are small part of event expenses ♣ Nearly all successful events sell sponsorships to media outlets
corporate sponsorship
o increase in the number of events has let to an increase in competition for sponsors ♣ Events have become increasingly reliant on sponsorship ♣ Sold by the event (in-house) or by an outside sport marketing agency ( IOC and Meridian Agency)
hospitality
o providing a satisfying experience for all stakeholders of the event ♣ intended to improve event loyalty ♣ reward and build relationships with current customers ♣ generate new business from new customers ♣ rewards employees for good performance ♣ reward suppliers for excellent sales ♣ one of the 10 most common functions of a sport agency
ancillary revenue
occurs from the sale of concessions, parking charges, ticket fees, and sponsorships - profit margins allow venue managers to get creative with promoters when developing their deal structures