SM 375 Final Exam
Key issues in the organization of sport leagues
1. Schedule & Championship format 2. Composition of the league 3. Team ownership 4. Players Entrance and Movement
Sport policies
A main difference between the work of the European Union and the Council of Europe is their approach toward ______ ______ ●European Union: sport as an industry (economic approach) ●Council of Europe: sport as leisure (sport as social right)
Government
Before 1989, many Communist nations achieved great sporting success due to the heavy involvement of ____________ in sport.
Greater wealth
Brazil and Mexico have developed a more advanced and multifaceted sport system because of their ________ ________
Professional sports, amateur sports
Characteristics of the European sport models ____________ _________ (soccer) are based on: ●Open market (American leagues are closed or regulated) ●Promotion and Relegation ●Tied to a NGB and IF structure (EPL- FA- UEFA- FIFA) ●Less competitive balance (open market) ●Position in the league dictates revenues from broadcasting rights. ____________ _________ are supported ●by volunteers ●SPORT FOR ALL movement (charter)
Council of Europe
Created in 1949 by non-communist European states to promote democratic and parliamentary principles, the defense of human rights and the cooperation of member states. ● Today it has 47 members - approx. 750 Million people
Managerial practices
Despite of being one of the most attractive league in the world, football in Argentina operates under poor ________ ________, lacks of competitive balance, and the exodus of talent have affected the welfare of the league.
J-League
Emerging Models of Professional Sports • Partially state model in soccer in China • The Soccer ________ (Japan) o Clubs as "corporation" but not a sub-unit of a major company (Honda) o Funded by public and private interest o Support of developmental team
The European Union
Formerly known as European Community (EC) it was established in the 1950s as an economic organization to develop cooperative policies. ●Today it has 28 members
Sale of players
In Argentina the number one source of income for first-division football clubs is the _______ __ ______
Confederations, membership, governance model
Management of International Federations • _________ o Some Federations organize at a Regional Level o (e.g. UEFA, CONCACAF) • ________ o Made up of National Federations or NGB in each country • ________ o Similar Governance Models (Congress, Assembly, members vote on critical issues, etc.)
PASO, CACSO, ODESUR
Olympic sports ●_________ (ODEPA) Pan American Sport Organization ●_________ (ODECACE) Central America and Caribbean Sport Organization ●_________- South American Sport Organization
European identity
One of the main goals related to sport has been the notion of community building tied to the strength of the concept of ______________ ____________.
CONMEBOL, UNCAF, CONCACAF
SOCCER ●_____________(SOUTH American Confederation of Soccer) ●_____________- Central American Football Union ●_____________- North and Central American Football Association
Transfer fee
Soccer before Bosman • A player could only move to another club with the agreement of both clubs and by the setting of a _____ ______. • This rule applied whether or not the player's contract had ended. • Out of contract players were not allowed to sign a contract with a new team until a _______ ___ had been paid • A quota system restricted the number of foreign players o UEFA* club competitions: only 3 foreign players could play for a team.
Club model, Government structure
Sport system ● _______ _______ ● ______ ________
Non-profit
Sport system (Private) ______ ________ ●National Olympic Committee ●National Governing Bodies ●Regional AssociationClub
For profit
Sport system (private) ___________ ___________ ●Professional Sports ●Commercial Sports ●Public Limited Companies
South America and Mexico
Strongest professional sport clubs are in _______ _______ and _________ ●Most clubs lack adequate managerial standards. ●Most domestic leagues lack competitive parity. ●Traditionally, most soccer professional clubs have operated as non-profit associations
True
T/F: Brazilian sports sponsorship revenues continue to increase
True
T/F: CSR initiatives attempt to create a much longer term and enduring impact by creating awareness of unfair business practices.
True
T/F: Latin America is in the negative when it comes to world economic
True
T/F: Managerial Approach is looking for a win-win relationship between corporation and community.
True
T/F: The European Court of Justice ruled in favor of Bosman and against RFC Liege, the Belgium Football Association and UEFA.
True
T/F: The largest number of sport jobs are in Germany
True
T/F: The problem with most European clubs is that they spend more than they earn
Western European + Eastern European
The European sport model ● ___________ + ___________ (1945-1989) = Today's Model
CSR from a critical theory perspective
The Vodafone Homeless of World Cup • A football tournament for marginalized people using football to foster leadership skills and promote healthy living and social entrepreneurship. • What matters here is what do participants (homeless) gain after this tournament and not how much recognition VODAFONE gained by sponsoring this event.
Sports Reform, Innovation and Training (Sprint)
The ________ ___________ __________ ___________ program implemented in 1991, helped to transform the sport systems of many former Communist nations.
League organization, Team financing
The gap between the top and bottom teams in top leagues seems to be growing constantly. It is contributed by: • _______ _______ o Team Ownership o Free agency • _______ ______ o No Salary cap o No collective agreements
Public limited sport companies
Today, many soccer clubs are transforming into_________ _______ ______ ______ (stock market) ● Is LLC company that offers its securities (stocks) for the sale of the general public.
Government
__________ plays a critical role in supporting the advancement of sport in most countries: ●Promote the value of physical activity among people ●Provide participation opportunities for groups that are traditionally excluded. ●Provide funding for the construction of sport facilities ●Support the development of elite athletes.
Individual ownership: Manchester United
• Acquired by Malcolm Glazer, American investor and owner of the Tampa Bay Buccaneers NFL franchise. • Purchased by a slow takeover between 2003 and 2005. The final price that Glazer is reported to have paid is somewhere around US$1.45 billion. • Fans strongly opposed the takeover • The value of the club has increased to US$1.8 billion, and its following and popularity have continued to expand worldwide. • Today the Glazer family own 90% of the Club
CSR initiative
• Adidas - SOS Children's Village - FIFA • Built six SOS Villages including a football field, classrooms, and medical facilities in developing countries around the globe after the final match of the 2006 World Cup.
Financing of international federations
• Broadcasting rights and Naming rights • Sponsorships for worldwide events • Membership dues from NGBs (National Federations). • Donations • Other (subscriptions, technical publications)
Managerial approach
• CSR _______ _______ focus on the win-win aspects of being socially responsible • Emphasis is on the business for corporations involved, and the effect of CSR on shareholders, managers, and taxpayers. • Focus on how corporations seek to improve relations with communities, suppliers, consumers, investors when implementing profit-driven activities.
Sporting good corporations
• CSR among ______ _____ _____ emerged during the 1990s • A response to activism about child labor and exploitative practices in the production of athletic shoes, uniforms, and equipment manufactured in poor countries. • Students Against Sweatshops brought these abuses and the moral contradictions involved to the attention of consumers through boycotts and sit-ins. • These events have made global companies to commit to the realization of human rights.
Pyramidal Hierarchical Model
• Characteristics of ________ o A national governing body (NGB) is the key decision maker. o The NGB has control of the key assets. o The control of FIFA to international football (soccer) is an example of this a model. o Most Olympic sports are run in this way
Corporate Social Responsibility
• Corporations acting in accordance with approved labor codes and environmental policies and become Advocates for Human Rights. • Commitment to Behave Ethically and harm no one.
European model (Oligarchy model)
• Each team is treated as an economic unit. • As clubs are not constrained by salary caps, they can offer players whatever money it would take to lure them away from another team. • Financial Fair Play (FFP) • A league employs a promotion and relegation system.
Role of international federations
• Establish and enforce rules concerning the practice of their sports and ensure their application • Ensure the development of their sports throughout the world • Establish criteria of eligibility for competitions of the Olympic Games. • Assume responsibility for the technical control and direction of their sports at the Olympic Games and at the Games held under the patronage of the IOC • Express their opinions (technical aspects of venues) on the candidatures for organizing the Olympic Games. • Spread of Olympism and Olympic education • Provide assistance in implementation of the Olympic Solidarity program
Responsibilities of International Federations at the Olympic Games
• Establishing the technical rules of their own sports, disciplines, and events • Establishing the results and ranking of Olympic competitions • Selecting judges, referees, and other technical officials from the host country or from abroad • Enforcing the rules of the IOC concerning the eligibility of the participants
Critical approach
• Focuses on social relations, including the struggles over social power, representation, and ideology. • How CSR activities influence and affect those targeted by these programs.
North American and Australian model (self-regulated)
• Free-market capitalism is limited. • Professional sport leagues operate as joint ventures or cartels. • Teams work collectively to improve the attractiveness of their sport and hence the marketable product. • An equalization policy is used to redistribute resources to the clubs within the league. • Leagues are characterized as closed systems.
Cartels
• In North America and Australia professional sport leagues operate as joint ventures or _______. • A ________ can be defined as a collective of individual clubs, firms, or organizations that by agreement work collectively to maximize benefits to each. • has a complex set of rules and practices designed to restrict business competition among its members and divide markets among firms in the industry. • The agreement on joint policies allows _______ to minimize competition, restrict the entry of new firms, control the supply and cost of their products, coordinate advertising and promotion, set prices, and, most fundamentally, protect the interests of member organizations
Freedom of movement; Transfer system
• Jean-Marc Bosman's (a Belgium player) contract with a Belgium club, RFC Liege, ended and he wanted to be transferred to the French club Dunkerque. • RFC Liege refused to let Bosman leave without the payment of a transfer fee which Dunkerque was unwilling to pay. • Bosman claimed that as a citizen of the European Union, he had the right to "_______ ____ _______ "within the EU if he wished to find work (Article 48 - Treaty of Rome). • The ______ _______prevented him from exercising his right to freedom of movement.
Professional Leagues: Turkish Airlines Euro league, Nippon Professional, J-League
• MLB, NHL, NFL, NBA (USA-CANADA) • English Premier League (Soccer UK) • _______ _______ _______ (basketball Europe) • Spanish La Liga (Soccer Spain) • ________ _______ Baseball (Japan) • _________ (Soccer Japan) • K-League (Soccer South Korea) • Super Rugby (SANZAAR - South Africa, New Zealand, Australia, Argentina)
North American model
• More efficient. Collective agreements reduce costs and improves competitive balance and prevents bidding wars. • Because there is no promotion and relegation teams do not have incentive to perform better at the end of the season • Reward failure (e.g. reverse order draft to reach competitive balance)
International federations
• Non-governmental organizations established to govern one or more sports at the international level. • It must cooperate with the IOC to make sure that its statutes, practices, and activities conform to the Olympic Charter. • It promotes a particular sport or sports internationally.
Competitive balance
• Parity within North American leagues has increased in recent years, especially in the distribution of championships. • NFL, eleven different champions have emerged in the last 20 seasons. • Competitive balance is a point of emphasis in North American sport leagues.
Individual ownership: Chelsea
• Purchased in 2003 by Roman Abramovich, Russian oil tycoon, for £140 million (US$232 million). • Abramovich loaned hundreds of millions of pounds to the club so that they would be able to purchase top talent and compete for the Premier League and UEFA Champions League titles. • The press and opposing fans were unhappy with Abramovich's strategy of spending at all costs to win. • But it led to on-field success
Registered associations
• Real Madrid and Barcelona FC are organized as a_______ _______. • It is owned by its supporters who elect the club president. • The club president cannot invest his own money into the club • These two clubs are NOT Limited Company that trade shares in the stock market.
MLS
• Single-entity structure to prevent lockouts • Teams owned and controlled by league • Team owner is a shareholder in the league • Revenue sharing • Contracts negotiated with the league • No promotion and relegation format
Sport for Development and Peace
• Sport is a mean or tool to achieve something else • Focuses on health, education, and human rights. • Individual as a human being • Movement that seeks to promote and protect human rights • "sport for good" as opposed to "sport for sport's sake" • _______ positions sport as a tool to fight HIV and AIDS, build social cohesion, foster peace among conflicted groups, and address gender inequities • Focus on third world countries or global south • The _______ movement has demonstrated the potential of sport to contribute to the UN MDGs to advance human rights.
Sport and development
• Sport is an end to achieve athlete's success • Focuses on providing resources and conditions to prepare athletes to compete at an elite level. • Individual as an athlete o Olympic solidarity
Economic aspects of sport in Europe
• Sport sponsorship o 91% of sponsorship are in sport o Restrictions to tobacco, alcohol, fast food o Formula one • Sports Agents o Player single individual negotiation • European sports media o Privatization of media transformed the economics of sport (gate receipts to TV) o Joint selling of media rights
Characteristics of North American sport leagues
• Static composition with periodic expansion • Large numbers of teams qualifying for post-season play • Reverse-order draft / rely heavy on college and high school athletes (other organizations pay training costs) • Player movement: trades: Player-for-player or player-for-draft-pick trades • Free agency after a specified period of service • Private ownership, profits corporations (public trade), nonprofit organizations
S corporations
• Teams owned by individuals are often incorporated under subchapter S of chapter 1 of the Internal Revenue Code, called ____ ________. which they do not pay corporate income taxes. • The earnings or losses of an ___ _________ are passed through to the owner and paid as individual income taxes. • Because ____ __________do not have publicly traded shares, they are not obligated to file audited financial statements, making their finances difficult to assess.
Sport
• The _____ sector accounts for 1.76% of the European Gross Value Added (GDP+ Subsides-Taxes) (or 179 billion Euros) • ______ contributes more to the economy than the agriculture, forestry and fisheries combined.
Promoter led model (Break away model)
• The league is totally market by a promoter • Contest are arranged as one-off events • Promoter brings participants, organizes venues, and arrange broadcasting rights and sponsorship. • Popular in boxing • The ___________ ________ model is a threat to established leagues when stakeholder needs are not met • The "break away league" o Kerry Packer and the case of the World Series Cricket vs. ACB and ICC
League governance
• The system by which professional sport leagues and organizations are directed and controlled.
European model
• Too many competitions require teams to pay more in players salaries and transfer fees. • Promotion and relegation increase fan interest and give incentives to mediocre teams to perform better. • Reward success
Transfer fees; quota systems
• Two important decisions that changed soccer forever o _____ ______ for out-of-contract players were illegal when a player was moving between from one E.U. nation and another EU nation. From now on only players still serving contracts with their teams could have _____ ______ paid for them. o _______ _______ were also held to be illegal. Clubs are now able to play as many foreigners from other European Union states as they like (although limits on players from outside the E.U. could still be imposed).
CSR
• ___ means a change from "within" the organization • Activities such as: o NFL 60 is more related to Philanthropy than CSR o Similarly, Livestrong is a caused-related marketing • These two are corporate social engagement activities
Labor market
• _______ ______ of sport related employment represents 2.12 % of the total employment in Europe, about 4.5 million sport job employees. • The European Commission states that the sport sector has proved to be especially resilient during economy crisis.
Latin America
• ________ ________ encompasses a vast geographical area of more than 8 million square miles within the Americas. • Politically is formed by 26 countries • Overall population surpasses 550 million people. • Most countries are characterized by similar cultural and historical roots.
Promotion and regulation
• ________ and ________ is a much more commonly used league format, one that rewards stronger teams and punishes weaker ones. • Works by having a multitiered system of connected sport leagues in which teams are exchanged from one league to the next based on performance. • Decisions could be based on the records of either the regular season or the playoff.
Single entity, joint venture
• ___________ Corporation o Actions needed for the game to take place ▪ Number of teams in the league ▪ League schedule ▪ Season length ▪ Structure of the tournament • __________ Corporation o Actions to increase profit ▪ Creation of exclusive territories ▪ Collective selling of broadcasting rights ▪ Debts limits (Salary cap) ▪ Player's mobility (Draft)
Development
• it is a complex term with multiple definitions and understandings. • In the 1970s it focused on "satisfying basic human needs • comprehensive economic, social, cultural and political process, which aims at the constant improvement of the well-being of the entire population and of all individuals on the basis of their active, free and meaningful participation and the fair distribution of benefits
Advantages of the promotion and regulation system
• not only generates more interest in matches among weak teams in a league but also produces better competitive balance within a league. • new franchise must work its way through from the bottom of the tier system all the way to the top. Achieving this goal takes a serious investment, and it may require several years to a lifetime.
British and Americans, military expeditions, religious missions
● In Latin America, most sports were adopted as a result of the cultural import from the __________ ___ ________ business, _________ __________, and ________ _______ of the late 19th and early 20th century ●Soccer - (almost to all countries) ●Rugby, Cricket, Tennis, Rowing, Polo - e. g., Argentina, West Indies, Brazil, ●Baseball - e.g., Venezuela, Cuba, Dominican Rep, Mexico, Nicaragua, Puerto Rico and Panama. ●Basketball - e.g., Brazil, Argentina, Venezuela, ●Volleyball - e.g. Brazil, Venezuela
Immigrants from different parts of Europe
● Most Sport and Social Clubs across Latin America were founded by __________ _______ _______ _______ _______ and across the world. ●Germans - Gymnastics in Brazil ●French - Cycling and fencing in Venezuela ●Italian, Spanish, Portuguese, British, Palestinian, and Jewish sport clubs served as places for gathering and preserve the cultural identity of these different communities.
Committee for the Development of Sport (CDDS)
● Policies in: ●Sport for All - promotion of policies. ●Drug-abuse - testing and enforcement ●Violence in Sport - Spectator violence in sporting events
Diverse
●Economically Latin American countries are _______. ●Some countries have extensive natural resources and high levels of economic growth. ●The majority still struggle in fighting poverty, have inadequate health standards, and have not reached acceptable levels of education.
Football (soccer)
●Is the No. 1 popular sport in most Latin American countries ●Practiced mostly by men ●Typically a working class sport ●Brazil and Argentina are among the top football countries in the world
Sport club funding
●Memberships; ●Government subsidies ●Corporate Sponsorships
Public (Government)
●Regulate Sport (Laws) ●Promote Sport ●Fund Sports
Focus of sport clubs
●Social benefits; ●High performance sport ●Professional sport
Baseball
●Very popular in Venezuela, Cuba, Dominican Republic, Nicaragua, Panama, Puerto Rico and Mexico. ●Many Latin American players play in the MLB and MiLB
The first comprehensive initiative on sport in the EU: Societal role, economic dimension, Organization aspects.
●___________ ________ of sport: health and participation; social inclusion; education and training; doping ●_________ ________ of sport: statistics and data, sustainable financing; antitrust law; support for grassroots sports organizations. ●__________ _________ of sport: free movement of players, free agency, players' agents, corruption and money laundering, licensing system for clubs, media rights
