Sport Management & Marketing Agencies Chapter 10 Sport Management & Marketing Agencies

Questions to Consider: What are sport management and marketing agencies? What are the different types of sport management and marketing agencies and what is their central role? What types of experiences, education, and skills would a person need to attain when pursuing a position with a sport management and marketing agency?

Introduction A sport management and marketing agency is a business that acts on behalf of a sport property. Sport property can be A person A corporation An event A team A place A concept

Introduction Actions undertaken may include Representation Negotiation Sales Licensing Marketing Management

Functions Client management and representation Client marketing and product endorsement Event creation and development Event management and marketing Property representation and licensing Television development and production Sponsorship solicitation and consulting Hospitality management services Grassroots and participatory programs Research evaluation Financial planning and management

Client Management and Representation Represents a client in contract negotiations and marketing decisions Negotiations may be between player and team license and licensor product and endorser Functions involve Financial planning Investment and management Marketing Personal appearances Other forms of revenue production and management Donovan McNabb (Eagles Quarterback) Chicago-based CSMG Negotiates his player contracts Advises financial & marketing opps.

Client Marketing and Product Endorsement Involves the agency in the promotion and total marketing of the client For athletes Endorsement opportunities Product endorsement Personal appearances Book contracts Interview and feature stories Tiger Woods IMG (International Mgmt Group) Secures endorsements with Buick & Nike

Event Creation & Development Creating new sports & events New satellite technology Fiscally rewarding opportunities Jim Kelley Enterprises Great Outdoor Games X Games Quarterback Challenge

Event Management and Marketing Involved in activities such as Golf and tennis tournaments Festivals Bowl games Functions include Tournament operations Hospitality and entertainment Sponsorship and ticket sales Licensing and merchandising Television production, public relations, promotion PGI, Inc. Major sport events including: MLB NFL PGA Tour

Property Representation and Licensing Property can be a facility, event, team, athletic program, band or concert tour, and so on Functions include Sales of rights fees Promotional licensing opportunities Sponsorship sales Signage and advertising agreements Endorsements Rose Bowl Rock & Roll Hall of Fame San Antonio Spurs US Tennis Open Ohio State University

Television Development and Production Agencies have recognized the opportunities that television presents Cable Satellite Pay-per-view Example The emergence of 12-team conferences has resulted in lucrative markets for televised conference championships Host Communications Creative Sports Marketing Raycom

Sponsorship Solicitation and Consulting The most common functions are the solicitation and securing of corporate sponsorships Particular properties may assist in achieving corporate goals and objectives Atlanta-based Bevilaqua International Specializes in Olympic sport marketing Specializes in working with corporations & major events to enhance, protect and leverage the marketing investment

Hospitality Management Services Functions include Transportation and other logistical issues Menu and food service planning and management Corporate sponsor entertainment Special auxiliary event creation and management Housing Awards, gifts, and recognition programs Party Planners West Produces the NFL Experience Fan interactive event in association with the Super Bowl

Grassroots and Participatory Programs Designed to build a following Essential to long-term growth Mostly aimed at children and adolescents who are potential consumers in the future Often targeted to certain demographic groups and ethnic markets Major League Baseball’s RBI Program Targets inner city youth NBA’s Basketball Without Borders Global program that targets youth

Research and Evaluation Research is critical to success and aids decision making Forms of research Mail surveys On-site surveys Personal interviews Pre- and posttest event impact analysis Focus groups Joyce Julius and Associates Audience Analysts Performance Research

Financial Planning and Management Highly specialized service involving Accountants Financial planners and advisors Investment specialists Portfolio managers Few agencies specialize in this type of service IMG offers this as part of their services Usually outsourced to financial planners or accountants

Types of Agencies Full service General Specialty In-house

Full-Service Agencies In-house personnel perform a full range of services Client management Event creation Television development Sponsorship solicitation Hospitality services Research and evaluation Financial planning

IMG Because of the size and scope of IMG, and the many relationships it has constructed over the past 4 decades, it has a major advantage over competitors in attracting clients. Here is a partial list of clients: Andre Agassi (Tennis) Venus Williams (Tennis) Annika Sorenstam (Golf) Julie Foudy (Soccer) Arnold Palmer (Golf) Tiger Woods (Golf) Brett Hull (Hockey) Chris Webber (Basketball) Jeff Gordon (Auto Racing) Pat Conroy (Author) John Madden (Broadcasting) Serena Williams (Tennis) Lauren Hutton (Acting) And many more….. Peyton Manning (Football)

Top Sport Marketing Agencies Table 10.1, Pg. 213 IMG, Octagon, Host Communications, etc.

General Agencies Uses an integrated approach in the development of client programs Marketing and representation of athlete, coach, or broadcaster Team and venue services Corporate consulting and property marketing Hospitality and event management 16W Marketing Provides certain business components: Representation, Venue services, consulting & marketing, & hospitality

Specialty Agencies Specializes in the types of services it provides or in the scope of its clientele Sponsorship and event marketing Event management and hospitality Velocity Sports & Entertainment Headquartered in Wilton, Connecticut Specializes in sponsorship and event marketing

In-House Agencies Departments of companies that perform many sport marketing functions on behalf of the products and divisions of the parent company Brand or product managers Advertising departments Public relations departments Community affairs departments NBA Attractions & Entertainment Division of the NBA Promotes the NBA as a holistic product through special events & activities (NBA Jam Session, NBA Draft)

Challenges Facing Agencies In-house versus outsourcing Control in generating more income and cutting expenses Conflicts of interest Agency under contract of an athlete and several teams Mergers and acquisitions Trend toward aggressive mergers and acquisitions Labor unrest Downfall of a strike Legislative and judicial review Elimination of tobacco and alcohol signage

Careers Within an Agency Typically hire experienced people Degree Business degree with a marketing background is preferred Sport management degree with several electives in business is desirable Advanced degrees in business, law, or sport management are an advantage Skills Pg. 220-Figure 10.2—organizational, technical, people

Next Session: Chapter 11-Sport Tourism Think of the places you have traveled in the past…..have any of them been centered around an athletic or sporting event? Research one place you could travel to an athletic/sporting facility and come prepared to talk about it on Thursday.