Sport Management Exam 1 Chapters 1-5

Who is Bill Veeck

"The pioneer of promotions", he recognized that to operate successful and profitable franchise, needed to reach the masses not just sport fans,

What is ROI

Return on investment- expected dollar value return on investment, stated as percentage of original cost of each investment

what were the main problems with the Indiana State Fair concert?

-there were no required inspections for temporary structures, -there were no clear protocols for delaying, postponing or canceling events, - no formal procedure for communicating threats -no process or place for emergency vehicles - wrong people in charge of making decisions (Sugarland manager)

2 types of causation

1) "but for"- but for the defendant's actions, the plaintiff would not have been hurt 2) proximate cause- the act and injury are strongly linked, "forseability"- could the defendant have possibly known the injury would occur

Name different types of invasion of right to privacy

1) Appropriation- impersonation 2) Intrusion 3) Public disclosure of private facts 4) false light- publishing false information

Name the types of harm to persons

1) Assault- believable threat of harmful or offensive touching of another 2) Battery- harmful or offensive touching of another person 3) Defamation- false statements made in presence of another, (libel and slander) 4) false imprisonment- unreasonable confinement of another 5) intentional infliction of emotional distress 6) Invasion of the right to privacy

What are some potential defenses to torts?

1) Assumption of risk- risk is inherent to the activity 2) Plaintiff voluntarily consented to activity, plaintiff knew and understands the risks (football and concussion) 3) "The Baseball Rule"- fans assume risk when entering the stadium

what are Bill Veeck's four aspects that make a promotion successful?

1) Item must have value 2) Must be entertaining 3) Must be inclusive 4) Must be memorable

Daniel Goleman and 4 stages of emotional intelligence

1) Self Awareness 2) Self Management 3) Social Awareness 4) Relationship Management

What are the two types of damages?

1) compensatory- compensate the plaintiff, usually in money 2) Punitive- courts fine or punish the defendant to send a message

5 types of market segmentation

1) demographic: age, gender, family size, income, occupation, religion, race, 2) geographic: countries, areas, neighborhoods 3) psychographic: lifestyle, personality, values, opinions 4) usage based: how often they use and how much they use 5) product benefits: benefits consumers seek from product or event

What are the 4 elements of negligence the plaintiff must prove?

1) duty of care 2) breach of duty- failure to meet standard 3) causation 4) injury- actual harm exists

In vicarious liability, what 3 things does the employer need to be able to prove to defend themselves?

1) employee was not negligent 2) employee was not acting within the scope of his employment or job description 3) employee was an independent contractor

What are the 4 elements of finance?

1) forecasting 2) decision making 3) evaluating 4) tracking

Define decision making

1) gather information 2) analyze information 1) problem statement/ framing the problem 2) generating alternatives 3) evaluate alternatives 4) select the best alternative

what are the two types of intentional torts

1) harm to persons 2) harm to property

How does the plaintiff prove invasion of privacy?

1) invasion is substantial 2) invasion is an area for which there is expectation of privacy

What is the purpose of tort law?

1) provide (damages) monetary compensation to injured party 2) deter other from similar conduct in the future

What two things do rival leagues need to be successful?

1) quality players 2) viable cities and markets in which to play

3 types of duty of care

1) relationship inherent in situation 2) voluntary assumption of care 3) duty mandated by law

What were the early sport cases?

1600s, primarily tort law, involved professional baseball

Organizational Behavior

1940s, combo of scientific management and human relations

Empowerment

1980s, encouraging employees to take initiative and make decisions, encourages innovation and accountability

Emotional intelligence

1990s, ability of employees to identify emotions and separate emotions from rational thought, women have higher emotional intelligence generally

How long is the useful life of a stadium

30 years

What is a plaintiff? What is a defendant?

A plaintiff is the person or organization that initiates the lawsuit Defendant is the person or organization that allegedly wronged the plaintiff and must respond to lawsuit

When and where were the first olympics?

Athens, Greece, 1896 Summer

Where was the first Sport Law class taught?

Boston College Law School, taught by Robert Berry

What is a tort

Conduct that is either careless or intentional that results in harm or injury to people or property

what is the difference between a consumer purchaser and a consumer

Consumer purchaser has more buying power, controls the money. For example a consumer purchaser might be a season ticket holder while a consumer would be a one game ticket holder. A consumer purchaser might be a dad of 4 who buys his family tickets to a game.

What is marketing

Creating, promoting, and delivering goods and services to consumers and businesses *** CREATING DEMAND

What is the process of risk management plan developing?

DIM: Develop a plan, implement the plan, manage the plan

Where is the birthplace of sport management

England

what were the Jockey Club's responsibilities?

Establish rules, determine eligibility, designate officials, regulate breeding, settle disputes, discipline rule breakers

What are the 3 common elements of management principles?

Goals/objectives, resources, people

Hard salary cap vs soft salary cap

Hard salary cap: payroll limit is absolute and cannot be violated, NFL and NHL Soft salary cap: payroll limit is set but teams can exceed limit but must pay tax, NBA, MLB, MLS

Libel vs slander

Libel is written and slander is spoken

what was the growing point for the olympics?

London 1908 games

who invented sport marketing?

Mark McCormack and IMG

What is undifferentiated marketing?

Mass marketing, appealing to a wide range of people, more cost efficient for company, McDonalds or Target or Walmart

How are stadiums financed?

Mostly through municipal bonds, also through owner equities, personal seat licenses, naming rights

What were two tipping points for codes of conduct?

NBA 2004- Malice in the palace and NFL 2008 Dead Tree Crew

What is the Rooney Rule?

NFL teams must interview at least one minority candidate for head coaching or VP and above positions, designed to improve diversity in coaching ranks

What are the 4 characteristics of the modern manager?

POLE: Planning (goals, mission statement, vision), Organizing (determining what jobs and who has what jobs), Leading (motivate, stimulate creativity, handle conflict) , Evaluating (establish reporting systems, performance standards)

What is an example of proximate cause or forseability?

Palsgraf vs Long Island Railroad- man carrying fireworks, conductor pulled him onto the train causing him to drop fireworks, fireworks exploded causing a pole down the track to fall on a woman and injure her, the conductor could not possibly have known all of that would happen.

Examples of expenses

Player salaries, staff salaries, facility mortgage, utilities, repairs, insurance, travel, equipment, advertising, game day expenses

What are the four P's of the marketing mix?

Product Price Place Promotion +++Public Relations

How do tournaments operate upside down?

Professionals use facilities constructed for the use of the amateur

Formula for profits or income

Profits/income= revenues(assets) - expenses (liabilities)

What was William Hulbert's legacy within baseball?

Prohibited betting, selling beer, playing on Sundays, players must have clean image, created pennant race to promote baseball as series of games, limited movement of players from team to team, created revenue sharing

ROI formula

ROI= (gains- investment costs)/ investment costs

where did Mark McCormack predict would be the center for sport growth?

Southeast Asia, followed by South America and Africa

Who is the czar of baseball

William Hulbert

when were professional athletes allowed to compete in olympics?

after 1988

Define sport marketing

all activities designed to meet needs and wants of sport consumers (1products, 2services, 3entities: leagues, teams, individuals, 4recruitment and retention of volunteers as relationships)

What is vicarious liability

allows a plaintiff to sue a superior for negligent acts of a subordinate, employer does not need to be negligent to be held responsible

Debt or liabilities

amount of money borrowed plus interest

What is owner's equity

amount of their own money that owners have invested in the organization

what are assets

anything that an organization owns that can be used to generate future revenues (equipment, buildings, stadiums)

What is sport law

application of existing laws to sport industry

Who is Fred Corcoran

architect of pro golf tournament, coined the term "upside down", claimed golf operates upside down

Examples of revenues

broadcast contracts, ticket sales, gate receipts, sponsorships, naming rights, luxury seating, parking revenue, concessions revenue, merchandise, ancillary events, revenue sharing

What is ambush marketing

capitalizing on goodwill associated with an event without becoming official sponsor, rival company attempts to associate its products with an event that already has official sponsors, for example Adidas tries to sponsor an athlete at a nike event

what is competitive balance

consumers of spectator sport seek to be entertained by a game that has 2 roughly equally balanced opponents producing a better game than 2 unequal opponents

Who is Matt Levine

credited with formalizing customer research, created "audience audit" to capture demographic and psychographic information

Who is William Hulbert?

developed first baseball league "National League"

What is risk management?

developing a strategy to maintain control over legal uncertainties

Name different market research methods

fan Intercept surveys or pass by interviews: one on one insight interviews, focus groups, website data, beacons (devices that send you offers), apps

what are bonds

financial instruments that allow borrower to both borrow large dollar amounts and for a long period of time, usually issued by large corporate entities and government

What is a salary cap

financial mechanism to alter competitive balances that limits the payroll teams can pay

Who is Roone Arledge

first person to recognize sport televised had to be more than sport- had to be entertainment -ABC's Monday Night Football and 3 broadcast personalities, more commentary, cameras, etc... Sport broadcasting

What was the human relations movement

founded by Elton Mayo, social factors are important to production, job satisfaction, motivation, partnership, cooperation, good working conditions

Uncertainty of outcome

greater uncertainty = more entertainment value for fans

Indiana State Fair Concert is an example of

gross negligence

what are the benefits of new stadiums?

higher revenue areas like premium seating, personal seat licenses, hospitality areas, sponsorships, naming rights

what is finance?

how organizations generate and allocate funds

How do you create demand?

identify target market of customers, identify needs of customer understand customer create what customer wants provide it at an appropriate value

What is segmentation

identifying subgroups based on factors

What is an important aspect of the DIM process?

involving all relevant employees in the planning process

what are statutes

laws

Credit facilities

leagues maintain these loan pools so individual teams can borrow from rather than borrowing directly from market NFL, NBA and MLB all use

What are important aspects of tournaments?

less dependent on ticket sales and more dependent on sponsorships, strong charity ties, tax deductions, volunteers, community support, some created by marketing agencies like X- Games

What is scientific management

or Taylorism, founded by Frederick Taylor, 1880s, there is only one best way to perform the job efficiently, rewards workers economically based on their productivity

what is an injunction

order from a court to do or not do a particular action

What is a balance sheet

organization's assets, liabilities and owner's equity shown on financial statement

What is an income statement

organization's revenues, expenses and profits over a time period summarized on statement

principal debt

original amount they borrowed

What is a luxury tax

payroll threshold set prior to the season and team that exceed this threshold pay a tax on excess amount, MLB

what is sponsorship

practice of partnering with a rights holder for the purpose of gaining some benefit

what are the two goals of risk management?

prevention and intervention

Who was Albert G Spalding

pro baseball player, first marketer to capitalize on term "official" as it relates to sport product with his "official baseball"

What is target marketing?

promoting product to specific group of people, identifying qualities of consumers and find commonality among purchasers, maximizing sales by appealing to certain groups of people

What do sport lawyers do

represent parties in a dispute, draft rules and regulations and interpret those rules and regulations

What were William Hulbert's contributions to leagues?

revenue sharing, weighted drafts, player contracts, player and fan codes of conduct

what were the two early management theories?

scientific management and human relations movement

Define revenue sharing

teams in league share revenue

What was the first club?

the Jockey Club 1750

what is the one type of harm to property

trespassing

What is negligence?

unintentional/ no intent to cause harm, when person commits an act or omission that causes injury to a person to whom they owe a duty to act with care

What is intentional tort

when one person purposely causes harm to another or engages in activity that is certain to cause harm

What is gross negligence

when the defendant acts recklessly, the person knows that the act is harmful but fails to realize the degree of harm, reasonable person should know someone might get hurt - example: McDonalds Coffee