Event Management Chapter 13

Introduction Sport Event Management –All functions related to the planning, implementation, and evaluation of a sport event –Requires: Finance/budgeting, risk management, tournament operations, registration, volunteer management, and event marketing

History Late 1800s: Focus turned to the professional aspects of managing sport events because of a desire to increase profits (Albert Spalding). Barnstorming tours: The touring of star athletes and teams to promote the popularity of a particular sport. Emergence of sport management/marketing agencies (i.e., IMG) initially established to represent the legal and marketing interests of athletes. Agencies are businesses that act on behalf of a sport property (i.e., a person, company, event, team, or place). Agencies have expanded to incorporate myriads of functions beyond representing athletes.

Sport Management/Marketing Agency Roles

Agency Functions Client representation: Acting on behalf of a client in contract negotiations Client marketing: Locating appropriate endorsement opportunities, booking appearances, and developing entertainment extensions Event development and management Meeting increased demand for television production and development work

Agency Functions (cont.) Soliciting corporate sponsorships Hospitality services Developing/marketing grassroots programs Evaluating the success of events and initiatives through market research: Implementing mail surveys, focus groups, on-site surveys, and sponsorship/economic impact surveys Financial planning

Types of Agencies Full-service agencies perform the complete set of agency functions (e.g., IMG, Octagon). Specialized agencies limit either the scope of services performed or the type of clients serviced (e.g., Redmandarin). In-house agencies are formations of separate departments or divisions dealing with event management within major corporations.

Event Management Functions Nearly all event managers must oversee the following critical functions: –Finance/budgeting –Risk management –Tournament operations –Registration –Volunteer management –Event marketing

Event Management Functions: Finance/Budgeting Critical to successful sport event management Budgeting attempts to predict revenues and expenses for a particular event Zero-base budgeting: Review of all activities and related costs of an event as if it were the first time Cash-flow budgeting: Accounting for the receipt and timing of all sources and expenditures of cash

Event Management Functions: Risk Management Protecting the organization from anything that could possibly go wrong and lead to a loss, such as financial loss, equipment or property damage, loss of goodwill, and loss of market share DIM Process: Developing, implementing, and managing the risk management plan Waiver and release of liability: Form signed by participants and volunteers that releases venue and event managers from negligence Purchasing insurance: Provides security to an event regarding potential financial losses

Event Management Functions: Tournament Operations The nuts and bolts of an event Divided into pre-event, actual event, and post-event Pre-event: Determine type of event and the event’s goals Script: Specific, detailed, minute-by-minute schedule of activities throughout the event 1.The time of day and what is taking place 2.The operational needs (equipment and setup surrounding each activity) 3.The event person(s) in charge of each activity Post-event: Activities surrounding completion of event

Event Management Functions: Tournament Operations – Planning Venue plan and layout Equipment and facility needs Schedule of activities Sponsorship needs Signage commitments and locations Food and beverages Merchandise sales Media concerns Promotional activities and needs

Event Management Functions: Tournament Operations – Planning (cont.) Transportation concerns Housing of athletes Staff communication Personnel responsibilities Lines of authority Security issues Americans with Disabilities Act requirements Policies to address other legal concerns such as alcohol use Crowd control

Event Management Functions: Registration First time event staff members come into contact with participants Registration system: Crucial for making a good first impression on clientele Determining information that needs to be collected and disseminated during the registration process

Registration Considerations Number of participants who will be registering Information that needs to be collected from or disseminated to the participants (e.g., waiver forms, codes for sportsmanship conduct, inclement weather policy, event schedule) Registration fees that must be collected Whether identification is needed (e.g., regarding age limitations) Collect information manually or via a computer system Whether the event involves minors, who require the signature of a parent or guardian on a waiver form

Event Management Functions: Volunteer Management Events from local races to the Olympic Games rely on volunteer help. Volunteer management staff supervise the volunteers involved with an event. 1.Working with event organizers and staff to determine the areas in which volunteers are needed and the quantity needed. 2.Soliciting, training, and managing the volunteers. How to keep volunteers happy?

Event Management Functions: Event Marketing Integrated marketing approach: Corporate sponsorship, advertising, public relations, hospitality, ticket sales, broadcasting, Web site development, licensing/merchandising, fundraising Integrated marketing entails long-term strategic planning to manage the nine main functions in a consistent manner

Event Management Functions: Corporate Sponsorship Increase in number of events has led to an increase in competition for sponsors Events have become increasingly reliant on sponsorship Either sold by the event (in-house) or by an outside sport marketing agency (IOC)

Event Management Functions: Advertising Advertising expenditures are a very minor portion of an event’s expenses. Advertising sought through one of two means: (1) media sponsors, or (2) attachment to corporate sponsor advertisements. Nearly all successful events sell sponsorships to media outlets. In-kind sponsorships: Event provides the typical sponsorship benefits in exchange for a specified amount of free advertising space.

Event Management Functions: Public Relations Generating free publicity is important. Must develop a good working relationship with the members of the media (e.g., through hospitality). Event must be creative to attract interest.

Event Management Functions: Hospitality Providing a satisfying experience for all stakeholders of the event, including participants, spectators, media, and sponsors is one way of improving event loyalty. Sport sponsors use hospitality to: –Reward and build relationships with current customers –Generate business from new customers –Reward employees for good performance –Reward suppliers for excellent sales Hospitality is one of the 10 most common functions of a sport agency.

Event Management Functions: Ticket Sales Sporting events rely on ticket sales to varying degrees. For medium-sized and smaller events, ticket sales are a less effective way to generate revenues. Ability to charge admission is dependent on where the event occurs and how easily the event manager can control entry to the event (e.g., golf). Impact of technology

Event Management Functions: Broadcasting A wide variety of broadcast outlets are available for sporting events. Radio/television broadcasts add credibility to an event and provide increased exposure, benefiting sponsors. If a broadcast outlet does not feel an event will be attractive to a large audience, limiting the ability to sell advertising time, then the outlet will not be willing to pay a rights fee to televise or broadcast that event. Sport organization have begun to look at online sites (MLB.com, YouTube, etc.).

Event Management Functions: Web Site Development Imperative that any event, no matter the size, has a Web site to provide important information and promote the event Web site’s URL should be the name of the event or something that is very close to the name of the event. Web site should provide basic event details: When/where the event is occurring, how tickets can be purchased for the event, online ticket purchase option, news releases, and so forth

Event Management Functions: Licensing/Merchandising Sale of items that display an event’s name or logo: Usually only beneficial for large, televised, multiday events. Beneficial in a number of ways, including advertising and brand recognition of the event as well as a potential revenue source through sales generated. To cover the costs of inventory, staffing, and space allocation, significant sales must be achieved for the event to make a profit.

Event Management Functions: Fundraising Not-for-profit events can use fundraising as a means of revenue generation. Most often, not-for-profit events center around raising money for some charitable enterprise. Cause-related marketing efforts by corporations are another instance in which fundraising may be appropriate.

Career Opportunities The event management field offers one of the most fertile areas for career opportunities. To be successful in event management, one must be prepared to work long and typically inconvenient hours. Careers in event management involve working with one of three types of organizations: sport management/marketing agencies, events, and charities.

Key Skills Education: Sport management programs with marketing, event management, business, finance. Internships: Usually need internships for experience and companies hire new workers from intern pool. Volunteer and paid opportunities exist in any university community: The athletic department, intramural department, community recreation programs, and charity events.

Current Issues: Event Security After the terrorist attacks of September 11, 2001, there was a heightened security presence at sporting events and facilities. Event security has escalated to an even higher level of importance and scrutiny after the bombing during the 2013 Boston Marathon, which claimed three lives and injured hundreds more, predominantly spectators attending the event. Hiring more security is an increasing trend, but often the security staff has insufficient training.

Current Issues: Olympics Games in Russia When Russia hosted the 2014 Winter Games in Sochi, the debate was whether countries with human rights issues should host the Olympic Games. On the eve of the 2014 Games, President Vladimir Putin signed a law prohibiting the promotion of nontraditional sexual relationships to minors, interpreted by many as banning gay pride parades and preventing any discussion of homosexuality (Lally, 2013). Civil rights groups and advocates applied pressure to Coca- Cola, McDonald’s, General Electric, and other corporate sponsors to make a statement and perhaps even pull their sponsorships.

Current Issues: Niche Sports Niche sports are unique and appeal to a distinct segment of the market, whether defined by age, such as the Millennial Generation or Generation Y (the teenagers and 20- somethings of today), or socioeconomic class. The most popular niche sport today may be UFC MMA, or Ultimate Fighting Championship Mixed Martial Arts. With the exception of the action sports, many of these niche sports suffer from a lack of exposure and corporate support beyond their small demographic cohort.

Summary Sport event management offers a wide variety of career opportunities for young sport managers. Most of these opportunities exist within sport management/marketing agencies, the entities that most often organize, manage, and market sport events. With the proliferation of made-for-TV events, opportunities for sport managers in event management will continue to grow.