Chapter Sport Management and Marketing Agencies William A. Sutton, University of Central Florida Nicole Fowler, National Basketball Association Mark A. McDonald, University of Massachusetts Amherst C H A P T E R

Introduction “A sport management and marketing agency is a business that acts on behalf of a sport property” More appropriate term is sport and lifestyle management and marketing agencies Early history of agencies- Honus Wagner was first to use a marketing professional Arrival of IMG –Mark McCormack and Arnold Palmer

Honus Wagner The first and most valuable baseball card Arnold Palmer and Mark McCormack formed IMG – changed golf

Roc Nation Sports – New Agents on the Block

Class Question for Discussion What are the top 10 issues that agencies must address? Salary negotiation Try-out prep Communication Endorsements Athlete behavior Greedy Ownership Player injury Investment Planning

Functions of Sport Management and Marketing Agencies Some agencies perform only one function (or a few) Some agencies perform all functions Important Agency functions 1 - Client management and representation 2 - Client marketing and product endorsement and placement (marketing gatekeepers) (continued)

Functions of Sport Management and Marketing Agencies (continued) Agency functions (continued) 3 - Event creation and development 4 - Event management and marketing 5 - Property representation and licensing (entitlement) 6 - Television development and production 7 - Negotiation of media contracts (continued)

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Functions of Sport Management and Marketing Agencies (continued) Agency functions (continued) –Strategic planning, sponsorship solicitation and consulting –Hospitality management services –Grassroots and participatory programs –Research and evaluation –Financial planning and management

Types of Sport Management and Marketing Agencies There are thousands of agencies and quasi- agencies They vary in size, budget, type of clientele, and scope of services Types include full service, general, specialty, and in-house See table 10.1 of textbook

Full-Service Agencies Creative Artists, IMG, Octagon, Wasserman Offer full range of client services –Client management, event creation, TV development –Sponsorship solicitation (actively seeking out sponsorships), contracts –Research and evaluation, financial planning Perform all functions with own personnel (lawyers, marketers, event planners, negotiators)

Full-Service Agency: IMG History- founded for Arnold Palmer Client management – best stable of athletes Event management and marketing – own many events like Wimbledon Television – own TWI…highlights Corporate marketing – finds the right athletes for corporations

IMG – Subsidiary of William Morris Endeavor Founded1960 Headquarters200 5th Ave, New York, NY 10010, United States Area served25+ countries Key peopleAri EmanuelAri Emanuel and Patrick Whitesell, co-Chief Executive OfficersPatrick Whitesell OwnerWilliam Morris Endeavor Silver Lake Partners Number of employees3000+ DivisionsEvents & Media College Golf Tennis Performance and IMG Academy Fashion Models Clients Consulting Licensing Joint Ventures Art + Commerce Websitewww.img.com

General Agencies 16w Marketing, Excel Sports, Navigate Research, Team Epic Integrated approach to development of client programs without a media component Business components of 16W Marketing Athlete/Celebrity Marketing, Broadcasting Negotiation, Corporate Hospitality, Corporate Sponsorship, Property Marketing Retail licensing, Merchandising Design, Product Fulfillment, Sponsorship Analysis/Sales/Service, Stadium Development, Venue Entitlement Event Development/Management

Specialty Agencies Velocity Sports & Entertainment – marketers first and foremost SportsMark Management Group Ltd. – events specialists…ran 50 hospitality events at the Olympic games since Capital Advisors Consulting – Steven Reed (Read Article)

In-House Agencies: Professional League Departments Departments that perform sport functions on behalf of the parent company- examples: Anheuser-Busch, Mastercard, GM “Have only one client: themselves” Function as “gatekeepers” in reviewing opportunities presented to them Work with other units of the corporation

Careers in Sport Management and Marketing Agencies Careers are diverse and challenging Entry requirements – marketing, law, or sports management experience Educational background – 4 year or masters in sports man., marketing, business com, or law degree. Required skills – organization, communication, interpersonal skills, negotiations, sales

Figure 10.2

Challenges Facing Sport Management and Marketing Agencies Major challenges - Shift in client base (athletes and sponsors flux) –In-house versus outsourcing (service vs good service) –Conflicts of interest (who do we work for?) –Mergers and acquisitions (smaller firms joining to make larger ones) –Labor unrest – major strikes every 5 years

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Three Review Questions 1.What are the functions performed by sport management and marketing agencies? 2.How are specialty agencies different from full-service sport management and marketing agencies? (continued)

Three Review Questions (continued) 3.Founded in 1960, IMG benefited from being the first and best-known sport management and marketing agency. Which events reviewed in this chapter have affected the competitive situation faced by IMG?