SM 203 Exam 2
What are some difficulties in making the D1 FBS "business plan" work? How can sport programs be used to generate money in other areas of the university?
1) Commercialism vs. Education! 2) Implications of this D1-FBS model: Different academic requirements for student athletes. Started off with 1.6 rule (1965), then 2.0 rule (1973) prompted by Ivy, then Prop 48 (1983)- minimum SAT/ACT score, minimum GPA in core classes, then Sliding Scale (1996)- sliding scale b/w SAT/ACT and GPA. 3) APR and GSR 4) Coaching Salaries- some coaches make more money than the presidents's of their school (their boss!) issue of Commercialism vs Education 5) Scheduling/Post-Season- CFB used to just be 8 games for educational purposes, now it is 12 games more focused on commercialism. NCAA Men's B-ball tournament wastes weeks of student-athletes time. More weeknight games 6) Rules/Regulations: Amateurism- Can be pro in one sport and amateur Practice Time Limits- Officially, no more than 20 hrs/week, but have "recommended" workouts, in reality 40-50 hrs/week. Scholarship Limits- The change from 1 to 4 year scholarships for P5 7) Funding: Subsides- Minimal for P5 conferences while higher for L5. After top 20 schools in P5, subsides increase
How does the IOC spend their money?
1) Distribute $ to NOCs, IFs, and OCOGs (90%). Revenue Sharing 2) Keep the money (10%)- Non-profit so must distribute money back.
What is involved in the bidding process for a candidate city? Steps in creating a bid.
1) Image Creation (city, country): Each city/country must create a potential official logo, try to capture cultural aspects of city/country in logo 2) Theme: With logo and aspects of bid, must include culture and Olympic ideas. Incorporate unifying aspects of the Game 3) Fundraise: Need money to create bid. about $35-45 million just to put in a bid (expensive because lots of people go into bid process). USOC no fed funding. 4) Evaluate previous/current Games/bids: See what worked and what didn't work. Replicate what has worked in the past. 5) Legacy: IOC wants to know what city will do to repurpose things, not let things go to waste, IOC will not choose you if legacy plans are not good. 6) Submit to NOC
How does an IF get a sport added to the Olympic Games?
1) Petitions the IOC 2) Must show wide-spread participation 3) It is increasingly important to show why it will be popular/profitable to watch on tv
What are the duties and responsibilities of an OCOG?
1) Security- protect against threats of attacks 2) Transportation- Ensuring all spectators/athletes can get in/out effectively and efficiently 3) Accommodations- For spectators (enough hotels available), athletes (Olympic Village), Officials (nice housing) 4) Venues- Must have enough for all events, must build more if needed, have plan for repurposing them after Olympics 5) Cultural Events 6) Sponsorship 7) Licensed Products 8) Medical Services 9) Promoting the Games- Ticket Sales, marketing 10) Stages for Paralympic games
IOC Revenue Sources
1) TV Broadcasting Rights (47%)- Sell rights to each country--USA has NBC through 2032, $7.65 Billion. 2) Sponsorship (45%)- TOP 3) Licensing- Officially licensed products for IOC, NOCs, and OCOGs. Commemorative souvenirs and memorabilia
What were some of the circumstances that lead to the establishment of the NCAA?
1st Intercollegiate athletic competition- Crew race Harvard and Yale on a lake in NH, railroad company sponsored the event to drive sales. Football then started up: Yale was the 1st school to charge for admission to athletic events. Pittsburg was the 1st school to put #s on their uniforms. College football originally was very violent (in the late 1800s, early 1900s), in 1905 over 15 players died so Theodore Roosevelt told schools they needed to change the rules or no more CFB so the IAAUS was created focusing on football regulation/rules to make it safer, no effect 30 players died in 1909 so then the IAAUS evolved into the NCAA in 1910
What are the roles and duties of an NGB?
Approve and sanction competitions open to all athletes in its country. Ex) T&F championships, other international championships Set national policies and eligibility standards for participation in their respective sports Responsible for training, development, and selection of Olympic teams in their respective sports- NOC can step in and change something, choose different players/athletes NGBs have own sponsors, but these cannot compete with TOP sponsors
What is the "business plan" used to operate sport at the D1 FBS level? How effective is this plan?
Athletic departments place special emphasis on football and/or Men's B-Ball to try and generate revenue to be self-supportive and to generate excess revenue to fund other sport programs Reality: About 70 football programs break even or have a surplus Only 24/180 athletic departments were financially self-sufficient last year Operating Budgets- Dramatically higher for P5 than L5. Ticket sale P5 higher, Student fees L5 higher, Guarantees (money you make for playing teams) higher for L5, Donations P5 higher. Operating Expenses- Dramatically higher for P5. Salaries higher for P5 Power lies in conference affiliation P5 more powerful than L5. TV deals P5 make billions, L5 make millions.
Why does the IOC go to great lengths to protect TOP sponsors from ambush marketing?
Because they must protect the exclusivity of TOP- the more ambush marketing occurs, the less the TOP sponsors derive from sponsoring. Must limit ambush marketing for the best interest of IOC and TOP sponsors. Sponsorship is 45% of IOCs revenue, need to protect it!
How are cities elected to host the Olympic Games?
Bidding for Olympic Games: Election of host city takes place 6-7 years in advance to games- need lag time, can be bad for some cases (Brazil) Bidding process can take several years City must start bid preparation about 12-14 years prior to Games For US, cities submit to USOC, USOC refers selection ones to IOC (OCOG->NOC->IOC) Voting Process: Corrupt. 2 phase process: 1) IOC Executive Board decides whether host city bid is viable 2) Then, full IOC votes on cities using elimination process. Attempts to prevent corruption/bribery by restricting who can visit potential cities After 1st phase, cities come to IOC special meeting and present their bid (in form of video), then voting begins
What are the new changes to the structure of D1 in the NCAA?
BoD->Purpose, Values, Vision->Autonomy and Council/Governance->Substructures Autonomy- Power 5 conferences (B1G, Big 12, ACC, SEC, PAC-12) have unique, special power over the rest. 10 Conferences in total. This is how power 5 are pulling away from other conferences and have such a distinct power.
What are the roles and duties of an IF? What do they do during the Olympic Games?
Conduct events in their sports at the Olympics- work with IOCs and NOCs Establishes its own eligibility rules in its sport, standards for competing- Olympic rules must be approved by IOC, usually a single federation for each sport Must work with OCOG to ensure proper facilities are built Responsible for resolving technical issues. Can propose revisions/development of event in its sport Select judges, referees, other official for international competition
Compare the philosophies of Division 1, 2, and 3 athletics. How do the different Divisions approach and support athletics?
D1/D2/D3- differences between each: School size decreases as you go down divisions Each has its own governing structure, does own governance. D1: Support Philosophy of competitiveness, generation of revenue through athletics, and national success. Larger and have larger budget. 3 subdivisions: Football Bowl Subdivision (FBS), Football Championship Subdivision (FCS), and Non-football D1 D2: Attract student-athletes from local/in-state area who may receive some athletic scholarship money, but not full ride. Must sponsor certain amount of programs D3: Do not allow athletic scholarships and encourage participation by maximizing number and variety of athletic opportunities available to students. Emphasize participant's experience, rather than spectator's, and place primary emphasis on regional in-season and conference competition. Must sponsor certain amount of programs. Additional Notes: D1—focused on all matters vs D2/D3—focused solely on divisional matters D1—full scholarship given vs. D2/D3—partial scholarships or none at all, academic scholarships D1—recruit nationally vs. D2/D3—recruit locally/regionally D1—play nationally/internationally and focus on all games vs. D2/D3—focus on playing regionally and in-conference (1 bid teams NCAA) D1—general entertainment D1—higher number of sports required to offer vs. D2/D3—lower requirements numbers D1—focus on spectators vs. D2/D3—focus on participants
How are NGBs related to IFs and NOCs?
Each IF recognizes a single NGB in each country participating in the sport NGBs hold events to choose Olympic athletes, but NOC can step in and choose different athletes/players if they choose too.
Governing Structure of NCAA
Executive Committee-> D1 has a Board of Directors, D2/3 have presidential council Executive Committee is the highest governance body in NCAA, oversee NCAA issues and ensures each division is operating consistently with NCAA purposes, policies, and principles
How/why does sponsoring football make it more difficult for athletic departments to achieve gender equity?
FBS Football: 100+ players, many coaches, equipment, 85 full scholarships. Large team=tough to balance out gender proportions
How are IF's related to the IOC?
IFs must be recognized as official IF for Olympics by IOC IOC has power to add sports to Olympics and recognize an official IF for that sport- IF petition Olympics for their sport to be added Rules in place for Olympics must be approved by IOC
How are OCOGs financed? What are the various sources of their revenue?
IOC gives OCOGs about $1 billion More funding is needed, each city does it differently. Ex) 2012 London: Public/private partnership in where LOCOG (private) focused on sponsorship, tickets, marketing for commercial revenue and ODA (public) focused on venues, facilities, infrastructure Some OCOGs receive federal funding (US does NOT must fundraise) Fundraising from corporations, wealthy individuals
Why is the IOC such a powerful sport organization? Why are they able to command such large sums of money from the media and the corporate world?
IOC has several powers. The IOC runs the Olympics, the biggest global event that almost every country participates in, millions of viewers every day around the globe. Large sums from corporate world because of their exclusive TOP sponsorship program.
What is the purpose of the IOC?
IOC is a private, non-profit, non-governmental, free-standing organization. Owns exclusive rights to Olympic Games, Olympic Symbols (rings), flag, anthem, motto, flame, and torch.
What are recent legal decisions related to the rights of student-athletes? How might/will these decisions alter the business model of college sport?
Increasing power of the student athlete: 1) New autonomy for Power 5 conferences: student athlete reps vote on issues, full cost of attendance will be covered. 2) Anti-trust decision (Ed O'bannon): Student-athlete can share in the revenue associated with their likeness and images 3) Class action lawsuit seeking open market- Open case, on going. Wants teams to be able to bid on players, why should a shitty player get the same incentives/benefits as a player like Jabril peppers for joining a team? 4) National Labor Relations Board: Ruled that football players at North Western were employees and could unionize (not for money, but for medical services/equipment)
What is an IF?
International Federation Autonomous organization responsible for the governance of its sport on the international level-international governing body over a sport. Nongovernment organizations recognized by IOC to administer one or more sports at the world level and encompass organizations administering such sports at the national level Each Olympic sports team has an IF, recognized by IOC as "official" IF.
How/why were the modern Olympics revived?
Mindset went from having a world battle to uniting the world and bringing the world together to compete and be one. In 1984 the IOC constituted as supreme authority of OlympicMovement at International Athletic Congress of Paris.
What is NOCs relationship with the IOC?
Must go to IOC for approval on any actions Reports go back to IOC
What does the NCAA do with the money it generates?
NCAA Revenue Distribution: Mostly to D1 Conferences/Schools (63%)- Basketball funds (5 year payout for going further in NCAA tourney. Grants-in-aid/scholarships). D1 Tournaments/Championships. Services/Programs- Student Assistance and Sport Sponsorship
Describe the NCAA in terms of organizational structure. What type of organization is it? Who belongs to the NCAA?
NCAA is a non-profit, voluntary association. Primary rule-making body for college athletics in US. Approximately 1,200 institutions, conferences, organizations, and individuals. Administration of intercollegiate athletics. Purpose association strives to maintain: intercollegiate athletics as an integral part of the education program, The athlete as an integral part of the student body
What are NGBs?
National Governing Bodies Organizations governing 1 specific sport in each country. Ex) USA basketball, USA Soccer, US Track and Field.
What are NOCs?
National Olympic Committee Organizations recognized by the IOC and responsible for the development and protection of the Olympic Movement in their country. Promote the fundamental principles of Olympism at a national level within the frameworks of sport. Sole authority responsible for the representation of its country at the Olympics In order to be recognized by the IOC, must have greater than 5 NGBs affiliated with IOC-recognized IFs
What choices have colleges and universities made in attempting to comply with Title IX?
Non power conference schools don't (no $) Div 2 schools don't Div 3 schools come close How to comply specifically through proportionality: Cut men's sports, add women's sport Unique athlete counts- Tryouts count (Crew example) girls who try out are included in total # Have large teams like crew, rowing cheap ways to help proportionality Males practice players=female athlete Roster caps- mandate that teams carry a certain # of athletes low max for men, high min for women Sport funding caps
What are some of the methods that have been employed to weaken and/or eliminate ambush marketing?
OCOGs lease big business spaces in city to privatize areas so they can highly regulate what companies can lease space for marketing/sales/shopping and what people entering can wear, they set the rules. Ex) Nike set up shop right outside an Olympic arena, handed people entering the arena American flags with logo (AMBUSH MARKETING NIKE ISN'T A TOP SPONSOR) IOC gets around restraint of trade issue (regarding preventing non-official sponsors to use words related to Olympics) by convincing governments to suspend anti-trust laws for periods of time. BIG THEME: IOC convinces governments to suspend their own anti-trust laws for a period of time (a little before to a little after Olympics) in order to protect TOP sponsors and protect a large revenue source of theirs
What is the 3-Prong test for Title IX include?
OCR provided 3-prong test for Title IX compliance: 1) Proportionality with student body- Male:female student-athlete is similar to male:female student body 2) Accommodating the interest of the underrepresented sex: tough to prove this (surveys) 3) History of adding opportunities for the underrepresented sex (tough to prove this) No money has been taking away for failure to comply. Only way schools get in trouble is if female sues school
How does the USOC spend their money?
Olympic training Center (3 main centers, plus several regional locations) Drug testing- USADA Member support- US Paralympics, international competition USOC Programs
What are OCOGs? What is their role in the Olympic Games?
Organizing Committees for the Olympic Games Responsible for planning, implementing, and staging the Olympics Each host city has one When a city is chosen to host, it forms an OCOG to plan the entire games
What does the NCAA do for its membership?
Purposes: To initiate, stimulate, and improve intercollegiate athletics Promote and develop educational leadership, physical fitness, athletics excellence and athletics participation as a recreational pursuit Establish rules of play, standards, eligibility requirements There is an enforcement program created in 1952 that allowed NCAA enforcement staff to see if there are any violations
What are the responsibilities and duties of an NOC?
Responsible for team approval and entering athletes into Olympics (provide training opportunities for athletes, equipment, and travel accommodations) Approve/recommend potential host cities from their respective countries to IOC. Obtain national scholarship support, every TOP sponsor is an NOC sponsor, but NOC can add other sponsors (that are not competitors of TOP sponsors)
What does the IOC do, what are its powers?
Select host city Choose TOP sponsors Choose TV networks Recognize "official" NOCs and IFs Approve sport "rules", "standards", and "eligibility rules" Persuade countries to violate anti-trust law (ambush marketing)
What is the basic structure of the IOC? (International Olympic Committee)
Structure: 98 members, 36 honorary members, 1 honor member 3 Bodies: 1) Session- general meeting of IOC members (pick host cities, determine which sports are included, modify and interpret Olympic Charter) 2) Executive Board- 1 President, 4 VP, 10 additional members. Manages affairs of IOC, including approval of IOC internal organization, management of IOC's finances and preparation of a report to the Session on any proposed change of rules/laws, supervision of procedure for acceptance/selection of candidatures for any organization of Olympic Games, and performance of all other duties assigned to it by Sessions. 3) President IOC members are loyal to IOC first, go back to their own country as a representative/spokesperson/advocate of IOC.
How does the NCAA generate revenue?
TV/Media/Marketing Rights (81%): Men's basketball tournament (deal with Turner) is biggest source of revenue. Championships Investments Sponsorship Member Dues
What is TOP and how does it contribute to revenue for the IOC?
The Olympic Partnership Program (TOP)-A limited and exclusive sponsorship program the IOC operates. Started in 1984 for the LA Olympics to create a more limited sponsorship program. Came up with 10-12 business industries/categories and put official sponsorship up for bidding for those industries. No apparel/shoe sponsor because it would require all teams/individuals to wear the same thing ex) Coca-cola is the official soft drink, wireless network, credit card etc. Companies essentially have monopolies, since competitors cannot go near them at the Olympics and cannot have the same publicity as them at the Olympics.
How might/do these changes to the structure of D1 impact the business model of college sport? How are these changes related to the welfare of student-athletes? What are the autonomy areas for Power 5 Schools?
These power 5 conferences have power over other conferences/D1 On BoD there are 5 FBS university presidents and 5 FCS/non-football University presidents (Discrepancy in proportions) Autonomy Areas for Power 5 FBS Conferences: Insurance and career transition- can offer better/different career related insurance options to student athletes, other schools can't Financial aid- can guarantee 4 year scholarships while other schools can only promise one year at a time Health and fitness Meals and Nutrition General Power 5 schools generate more money than other conferences money=power. This grants extra power for power 5
What are the sources of revenue for the USOC?
They make around $200 million per year, more during the Olympic years TOP and Domestic sponsors Broadcast rights (TV)- from IOC US makes more money than any other country, makes other countries mad, big reason Chicago didn't get their bid. US makes the same amount of corporate sponsor revenue as every other country combined, and only $60 million less in TV rights.
Why is gender equity such a contentious issue in intercollegiate athletics? What are the guidelines in place for complying with Title IX?
Title IX (1972): Not about sport, about educational opportunity. It eliminates discrimination on the basis of sex in educational programs or activities that receive federal aid. When passed, NCAA had nothing to do with women's sport. AIAW was biggest international organization for women's sport. When passed, strong concern that men's sport funding would decrease and would have to share funding with women. Resistance to Title IX (men trying to hold onto all the funding and not share with women). Legislation in congress: Remove sport from Title IX, remove football from Title IX- both failed. NCAA took over women sport in 1983: offered free membership to lure programs from AIAw to NCAA, AIAW folded in 1984
What are the responsibilities of the USOC? 2 main purposes
USOC must be non-political, no money from national government. 1 of only NOCs not a part of federal government. Pays medal winners money, most responsible for sending US olympic teams to Olympic, Paralympic, and Pan-American Games 1) Generate resources in support of its mission, which is to help American athletes achieve sustained competitive excellence. 2) Ensure organizational resources are wisely and effectively used
What is the USOC and its basic structure?
United States Olympic Committee 1) Board of Directors: Have final say in all decisions, establishes all policies to be followed in carrying out the business and activities of the USOC. 2) Chair (Larry Probst) 3) USOC Standing Committees: Audits, Compensation, Ethics, Nominating, Governance
