Sport Management Notes - Exam 1 PDF

Preview

Summary

Download Sport Management Notes - Exam 1 PDF

Description

SMGT 260

Spring 2018 EXAM 1 STUDY GUIDE

CHAPTER 1 – History of Sport Management  

 



Birthplace of Sport Management – England Key factors in Sport management structures – Clubs, Leagues, Professional Tournaments o Clubs  Local governance – created in local areas  Born out of the need to control “honest play”  Controlled by the most powerful in society $$$  Collectively “policies” a sport o Leagues  Began with William Hulbert’s National League (1876)  Revenue sharing, Weighted drafts, Player contracts/code of conducts, Fan codes of conduct o Professional Tournaments  Fred Corcoran – Founder of Golf tournaments, operated “upside down” (professionals competed on/in sport facilities made for amateurs  Less dependent on ticket sales, most dependent on sponsorship  Usually a strong charity tie – tax deductions, access to volunteers Sport Participation The role of gambling in early sport management o Thoroughbred racing  Gambling provided exciting entertainment and tangible evidence of spectator’s knowledge of horses  Ensured honest competition, spectators prevented fixing  As the sport drew larger crowds, gambling system got more complex – handicapping, tip sheets, sweepstakes, stopwatch used to time the race, standardized race distance, weights to horses  Gambling enhancements/innovations made it difficult for the audience to detect when/how races were fixed o Harness racing  Participants/promoters fixed races to promote and create demand for future races; highly regarded trotters traded victories to maintain spectator interest, “choreographed dramas”  This practice violated the notion of honesty critical to a sports’ success  Spectators lost faith in the integrity of the sport, and the race promoters lacked the legitimacy to convince the public otherwise  Lost its appeal and audience by the start of the Civil War Early club governance o Jockey Club

SMGT 260

Spring 2018

1750 – established in Newmarket by noble patrons (thoroughbred racing) Responsibilities included establishing rules, determining eligibility, designating officials, regulate breeding, and punish dishonest participants o Marylebone Cricket Club – est. 1788 o The Pugilist Society (boxing) – est. 1814 How the modern Olympic Games came to be o 1896 – first modern Olympic games hosted in Athens, Greece; initially began as clubs’ participation (e.g. Boston Athletic Association) o 1988 – professional athletes allowed to compete; increasing viewership, revenue, benefited non-revenue sports The contributions of William Hulbert o William Hulbert (1832-1882) – founder of baseball’s National League, believed that teams would only enjoy stability/success if they were run like businesses  Strict rules by the League/needed to address collusion  Forced team owners to assume risk, required them to finish entire season  Created a game experience that adhered to cultural norms  Set higher ticket prices, prevented lower socioeconomic citizen attendance  Mandated that the League (not clubs) set the game schedule  Required players to have a clean image, limited their movement from team to team  Created revenue sharing among teams  “pennant race”; playing for the championship  





CHAPTER 2 – Management Principles Applied to Sport Management 







Early management theories – who, what o Scientific Management – (a.k.a. shop/process management, “Taylorism”) Frederick Taylor, mass production, rewards needed to be economic o Human Relations Movement – Emphasis on social factors, job satisfaction/productivity depended on worth How management theory changed throughout the 1900’s and 2000’s o Organizational Behavior (1940s) – combination of first two o Empowerment (1980s) – encouraging employees to take initiative The roles of the modern manager o Planning – defining organizational goals and determining the appropriate means by which to achieve these desired goals o Organizing – putting plans into action, manager determines what types of jobs need to be performed/who will be responsible for doing these jobs o Leading – the “action” part of the management process o Evaluating – measuring/ensuring progress toward organizational objectives Decision making and organizational politics

SMGT 260







Spring 2018

o Decision making – gathering/analyzing information o Organization politics – all organizations experience internal political struggle The key aspects of Emotional Intelligence (1990s) o Ability to identify/acknowledge emotions and separate from rational thought o Emphasis on 4 stages: self-awareness, self-management, social awareness, relationship management o It can be learned, CEOs/women test high Millennials in the workforce o Born b/w 1980, 2000, grew up w/ technology, most ethnically diverse, emphasis on teamwork, flexible work-life balance, job must have “meaning” o Simon Sinek: 4 characteristics - parenting, technology, impatience, environment Goals vs. Objectives o Goal – Aspirations, Future Plans, No timeline o Objectives – Specific, Measurable, Timeline

CHAPTER 3 – Marketing Principles Applied to Sport Management 











Definition of marketing o Creating, promoting, delivering goods/services to consumers/businesses o (i.e. Creating Demand) Definition of sport marketing o Consists of all activities designed to meet the needs/wants of sports consumers o Includes the marketing of: products, entities, services/experiences, recruitment/retention of volunteers Target Marketing o How to create demand  Identify target market/needs  Understand the customer  Create what the customer wants  Provide it at an appropriate value o Consumer purchaser vs. consumer – buying product vs. consuming product Bill Veeck’s contributions to sport management o Bill Veeck - “Pioneer of Promotions,” recognized key aspects of creating product: must have value, entertaining, inclusive, must create conversation/be memorable o Roone Arledge – Monday Night Football/Wide World of Sports, increase viewer experience by using multiple camera angles, sideline reporters Market research methods o Fan intercept surveys, Focus groups, Online/paper surveys, Rewards cards, Beacons, Apps, Website data The Marketing Mix

SMGT 260





Spring 2018

o The controllable variables a company puts together to satisfy the target group:  Product – Core product: event, experience, etc.  Price – Not just the cost of the ticket (parking, concessions, merchandise)  Place – Facility, location, neighborhood, sales locations  Promotion – Advertising, selling, publicity, sales promotion  Public Relations – Managing the image of an organization to the public Market Segmentation o Identifying a target audience – Demographic, Geographic, Psychographic, Usage based, Product Benefits Current issues in sport marketing o Nike advertisement – First to the Challenge, In the Zone, Doubt and Suffering, Rededication, Victory o Ambush Marketing – Rival companies competing for customers, e.g. Nike vs. Adidas at London 2012 Olympics

CHAPTER 4 – Financial and Economic Principles Applied to Sport Management  





Definition of finance o Generating funds and how to allocate/spend them Typical Revenues and Expenses of pro sports teams o Revenue – Broadcasting (largest contributor), Sponsorship, Ticket Sales, Parking, Merchandise, Concessions o Expenses – Facilities, Staff/player salaries, Game-day expenses, equipment, travel, advertising Strategies for financial performance o Profit = Revenue – Expenses o Increase revenue, decrease expenses:  Sign a star player – increased team performance, more tickets sold and/or higher TV ratings  Upgrade luxury seating – charge a higher price to its corporate clients to lease the suites  Install new scoreboard – increase overall fan experience, increase sponsorship and advertising opportunities for the team  Replace grass w/ artificial turf – reduce player injuries, increase team performance, ticket sales and reduce further expenses Key Financial terms and definitions o Owner’s equity – the amount of their own money that owners have invested in their organization o Principal – the original, borrowed amount an organization is obligated to pay back (+ interest) o Debt – the amount of money that an organization borrows

SMGT 260



Spring 2018

o Balance sheet – a financial statement showing an organization’s assets, liabilities, and owner’s equity at any given point o Salary Cap – limit of money paid to athletes  Hard Cap – the team payroll limit is an absolute and cannot be violated  Soft Cap – a payroll limit is still set, but teams can exceed this limit through various types of “exclusions,” e.g. signing own free agents o Luxury Tax – a tax on the excess amount about a payroll threshold, set prior to the season o Revenue sharing – when teams in a league agree to share certain types of revenues among themselves Bonds in stadium financing o U.S. Government Bonds – issued by U.S. government o Agency Bonds – U.S. Agency, implicitly backed by U.S government o Municipal Bonds – state/local gov., repaid w/ new taxes, offer significant tax breaks

CHAPTER 5 – Legal Principles Applied to Sport Management  



History of Sport Law o 1972, Boston College: First Sport Law class taught Tort liability o Tort – Civil action that is careless/intentional that results in harm or injury to people/property  Provide monetary compensation to the injured party (damages)  Prevent others from similar conduct in the future (establish precedent) o Defense against Tort  Assumption of Risk – inherent to the activity, voluntary consent to the activity, plaintiff knew risks (e.g. the Baseball rule) Intent and Negligence o Intent  Harm to persons – battery, assault, defamation (libel/slander), false imprisonment, emotional distress  Invasion of right to privacy – appropriation, intrusion, public disclosure of private facts, false libel  Not protected by U.S. Constitution, implied in amendments  Plaintiff must prove: invasion is substantial, expectation of privacy o Negligence  Intentional – purposeful/substantially certain to cause harm  Gross Negligence – occurs when a defendant acts recklessly  Negligence – unintentional/no intent to cause harm  Plaintiff must prove elements of negligence:

SMGT 260

Spring 2018   

 



Standard of Care – relationship inherent to the situation, voluntary assumption, duty by law Breach of Duty – Plaintiff must prove that defendant’s conduct breached employment bounds Causation – Plaintiff must prove that the act (or failure to act) caused the injury/harm, “but/for,” BUT foreseeability/proximate clause (Palsgraf v. Long Island Railroad Co.) Injury – physical or emotional harm (hazing)

Risk Management o Developing a strategy to maintain control over legal uncertainties o Two-pronged approach  Prevention – keeping problems from arising  Intervention – having a plan of action o DIM process – Develop, Implement, Manage Vicarious liability o Allows a plaintiff to sue a superior for the negligent acts of a subordinate o Employer must prove:  Employee is not negligent  Not acting w/ duties of employment  Employee was an independent contractor

THE OLYMPICS (p. 209-217) 



History of the Olympics o 776 B.C. o June 23, 1984 – Pierre de Coubertin founded the International Olympic Committee (IOC) o 1896 – First modern Olympic (summer) games held in Athens, Greece o 1924 – First modern winter Olympics held in Chamonix, France IOC, NOCs, OCOGs, IFs o International Olympic Committee  International, non-profit, non-governmental organization (NGO) comprised of “volunteers;” 98 members  Most members are heads of state, former Olympians, royalty  Headquarters located in Switzerland – neutral, tax breaks, FIFA  Goal – To host the BEST Olympic Games o National Olympic Committees  206 NOCs on 5 continents  Responsible for athlete development/selection o Organizing Committees for the Olympic Games

SMGT 260

Spring 2018   





Responsible for the operational aspects of hosting the Olympic Games (a.k.a. event management) Comprised of IOC members of host country, President/Secretary General of the NOC, public authorities, leading figures Pays for most of the Games’ expenses – broadcast contracts, sponsorship, merchandise, ticket sales

NGBs o National Governing Bodies  Operate w/n guidelines set by their respective IFs to administer a specific sport in their country Paralympic Games o 1960 – first Summer Paralympic Games held in Rome, Italy o 1976 – first Winter Paralympic Games held in Sweden o International Paralympic Committee (IPC)  Headquartered in Bonn, Germany  Separate from the IOC, and thus they do not share in $$$  Oversees National Paralympic Committees (NPCs)  Since Athens 2004, both Olympic and Paralympic Games are overseen by the host’s OCOG...