SPORTS AND ENTERTAINMENT MANAGEMENT © SOUTH-WESTERN/THOMSON CHAPTER 1SLIDE 1 CHAPTER 1 CHAPTER 1 What is Sports and Entertainment Management? Management Basics Sports Management Entertainment Management

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 2 LESSON 1.1 LESSON 1.1 MANAGEMENT BASICS GOALS Define management and its four functions. Discuss the principles of business management. List the steps in the decision-making process.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 3 MANAGING SPORTS AND ENTERTAINMENT EVENTS Management Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 4 FUNCTIONS OF MANAGEMENT Planning Organizing Implementing Controlling

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 5 Functions of Management - Planning Planning The planning function involves analyzing information and making decisions about what needs to be done. A good idea requires planning in order to maximize success and profits. The planning of successful sports and entertainments events must take place far in advance. Once decision makers decide to go ahead with the event, they must determine all the steps that must be completed. Factors to consider include the date, target markets, customer potential, competition, marketing strategies, sponsorships, security, facilities, and community or regional support.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 6 Functions of Management - Organizing The organizing function is concerned with accomplishing tasks most effectively and arranging resources to complete all necessary work. Many small communities have summer celebrations that include parades, fun runs etc. Organizing these events involves committees chaired by individuals who are event specialists. Event planning includes security, concessions, parking lot management, and maintenance.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 7 Functions of Management - Implementing The implementing function involves carrying out plans making sure that adequate personnel are available to accomplish all the necessary tasks. Successful implementation involves taking care of details, such as providing extra police officers to direct traffic, making sure that parking lots handle heavy traffic flow, and having enough restroom facilities.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 8 Functions of Management - Controlling The controlling function involves evaluating results to determine if objectives have been accomplished as planned. Managers must evaluate the event to determine how to improve the event in the future or if the event should not be pursued again.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 9 THE BEST LAID PLANS Characteristics of host city for major event Diverse culture Large airport Appropriate venue(s) Reliable public transportation Ample hotel rooms Strong hospitality Pleasant climate Tight security

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 10 THE BEST LAID PLANS Careful planning must take place. The Houston 2012 Committee was formed to promote Houston as the best city in the United States to host the 2012 Summer Olympics. The committee had to determine what features made Houston the best U.S. city.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 11 INTERMISSION What are the four functions of management?

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 12 Business Information Management Management Responsibilities Financial Management Production Management Marketing Management Human Resources Management BUSINESS MANAGEMENT PRINCIPLES

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 13 BUSINESS MANAGEMENT PRINCIPLES Management responsibilities Business information management Financial management Production management Marketing management Human resources management

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 14 Business Management Principles Management Responsibilities Managers are responsible for accomplishing the goals of an organization through the effective use of people and other resources. They provide leadership for their part of the organization. They work with other managers and employees to determine ways to improve the performance of the organization.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 15 Business Management Principles Business Information Management All managers need information about target markets, the economy, competition, and business operations to make sound decisions. Information management uses technology, to effectively gather, organize, protect, and make information available to people in a form they can use.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 16 Business Management Principles Financial Management Good financial management is crucial for business success. Financial management involves obtaining funds to finance the business, managing the funds carefully, and keeping financial records accurately.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 17 Business Management Principles Production Management Production is all of the activities involved in creating products for sale. In sports and entertainment, the products are the events as well as the many related products such as posters, CDs, and apparel sold at the event. Production management works with others to determine the products to be produced, obtains needed resources, organizes production facilities and personnel, and develops and maintains a production schedule and quality control.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 18 Business Management Principles Marketing Management Marketing involves all the activities used to plan, price, promote, and sell the event. These activities include customer and competitor research, event development, advertising, pricing, etc.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 19 Business Management Principles Human Resource Management Managing human resources involves determining the number and type of employees needed, recruiting and hiring the best people, offering needed training and providing adequate compensation and benefits as well as a motivation work environment.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 20 WHO IS RESPONSIBLE FOR WHAT? Managers are responsible for making things happen in an organization. Authority is the right to make decisions about assigned work and to delegate assignments to others. Supervisors are the first level of management and are responsible for directing the work of employees and conducting employee evaluations.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 21 Who is Responsible for What? Well managed organizations possess a sense of teamwork in which all individuals work together for the benefit of the entire team. These organizations may utilize employee empowerment, in which individuals have the authority to solve problems with available resources or to develop new strategies for the betterment of the organizations.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 22 MAKING THE TOUGH DECISIONS Managers of entertainment events need to be aware when performance is not meeting expectations. When managers identify a problem, such as declining attendance, business research provides the information needed to correct the problem. The five steps of the decision-making process are: Identify the problem List possible solutions Analyze possible solutions Select the plan Evaluate the plan

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 23 Making the Tough Decision 1. Identify the Problem: Managers must determine what is causing declining attendance. 2. List Possible Solutions: For example, what are the possible actions to turn around declining attendance at the event? 3. Analyze Possible Solutions: Managers must analyze the solutions carefully and use research when necessary.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 24 Making the Tough Decisions 4. Select the Plan: Managers must then determine the best way to implement the plan. 5. Evaluate the Plan: The plan must be evaluated for effectiveness to make the best decisions in the future.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 25 LESSON 1.2 LESSON 1.2 SPORTS MANAGEMENT GOALS Discuss the management of championship series for college sports. Explain the financial and social impact that professional sports have on host cities.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 26 MANAGING SPORTS EVENTS EFFECTIVELY Human resources management is the core of success for any organization. A professional management staff must be in place not only to maintain the facility but also to uphold the image of the organization. Guests have high expectations for the entertainment dollars they spend. Therefore, event staff members should greet each guest in a friendly, sincere manner. The safety and comfort of all guests should always come first. Attitude makes a big difference when working at sports and entertainment events.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 27 MANAGEMENT OF COLLEGE CHAMPIONSHIPS Select teams Select host city or cities Commit sponsors Negotiate television packages Sell tickets

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 28 Management of College Championships The NCAA has championship series games for basketball, football, baseball, volleyball and other sports. The Final Four starts in 16 host cities with 65 Division 1-A basketball teams competing to be the national champion. Management is needed to select the teams, select the host cities, commit sponsors, negotiate television packages, and sell tickets. Hotels, restaurants, universities, shopping malls and gas stations all receive financial benefits for being involved with the Final Four.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 29 Management of College Championships The BCS determines the Division 1-A National Champion in college football. The BCS consists of the Rose Bowl, Sugar Bowl, Orange Bowl and Fiesta Bowl.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 30 MANAGING PROFESSIONAL SPORTS “Build it or they will leave.” Cities face the challenge of providing the best facilities to keep professional teams from moving to other locations. Satisfying the demands of professional teams requires strong financial management. Most cities trying to attract or keep professional sports teams must find ways to finance expensive sports arenas. Residents of these cities often vote on new taxes to pay for the necessary sports facilities.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 31 Managing Professional Sports Financial management also involves finding corporations willing to make long-term financial commitments. Stadiums and other sports arenas are named after the corporate sponsors. Stadiums are now being built with multiple purposes in mind in order to maximize revenue. Stadiums also have retractable roofs to keep bad weather out and to serve multiple purposes. Management is needed for sponsorships, ticket sales, concessions, field maintenance, transportation from satellite parking lots and operation of the professional team.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 32 Managing Professional Sports The 2003 Super Bowl in San Diego generated more than $300 million in revenues for the city. The Super Bowl is the nation’s largest sports celebration. The Super Bowl also has a major financial impact outside of the host city. The gaming industry experiences a windfall from the Super Bowl which generates approximately $70 million annually for Nevada’s legal sports books.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 33 LESSON 1.3 LESSON 1.3 ENTERTAINMENT MANAGEMENT GOALS Explain the role of human resources management in community entertainment events. Describe the challenges faces by state fairs.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 34 LIMITED ONLY BY YOUR IMAGINATION Entertainment possibilities are endless. The size of a community does not necessarily determine its ability to host an event. Many small towns host very large events. Morristown, Ohio hosts the Super Bowl of Country Music. Human resource management Community volunteers Committees Comedy clubs

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 1SLIDE 35 Small Town, Big Entertainment Event State’s showcase entertainment event Stiff competition from amusement parks Equally popular for urban and rural residents