SPORTS AND ENTERTAINMENT MANAGEMENT © SOUTH-WESTERN/THOMSON CHAPTER 4SLIDE 1 CHAPTER 4 CHAPTER 4 Sports and Entertainment Management Managing Local Events Managing College Events Managing Professional Sports Managing Other Events

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 2 LESSON4.1 LESSON 4.1 MANAGING LOCAL EVENTS GOALS Describe three types of plans necessary for organizing entertainment events. Explain the importance of budgets as related to entertainment management. Describe the management necessary for major events.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 3 THE IMPORTANCE OF PLANNING Communities of all sizes organize entertainment events each year. Business plan – a written description of the event including: Goals Objectives

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 4 THE IMPORTANCE OF PLANNING Financial plan must include: Income Expenses Profit Marketing plan – a detailed written description of all marketing activities that must be accomplished in order to make an event successful.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 5 STRATEGIC PLANNING Long-term preparation Strengths and weaknesses Goals Planners depend on the mission of the event for directions to reach goals. Threats to an event include: Competitors, poor weather, weak economy

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 6 PRODUCING THE EVENT Businesses make plans based on a budget Budget – a specific financial plan to determine the best way to use available resources to reach goals. Dividing the work The most successful organizations determine the strengths of their team members and rely on those individual strengths.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 7 MAJOR EVENTS New Year’s Eve in Times Square Started with a rooftop celebration in 1904 Macy’s Thanksgiving Day Parade Began in 1924 (balloons in 1927) Not held during WWII (could not waste rubber and helium)

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 8 LESSON4.2 LESSON 4.2 MANAGING COLLEGE EVENTS GOALS Define the four types of economic utility as they relate to collegiate entertainment events. Describe the factors of production in a market economy. Explain how universities increase revenues through entertainment events.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 9 ECONOMIC ENVIRONMENT Economics – relates to producing and using goods and services that people want. Supply – the amount that will be offered for sale at a particular time and price. Demand – the amount that will be bought at a given time at a given price.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 10 ECONOMIC ENVIRONMENT Utility – the ability of a service or good to satisfy a want. Form utility – involves changing the form or shape of a product to make it useful. Ex. Plain white t-shirt vs t-shirt with college logo Possession utility –created when ownership of a good or service is transferred from once person to another. Ex. Enthusiasm for winning team makes you want to own item with their name on it

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 11 ECONOMIC ENVIRONMENT Time utility – involves having the entertainment event available when the largest target can be involved. Ex. Selling hot chocolate at a cold ball game. Place utility – involves offering an entertainment event at a location where the target market demand is greatest. Ex. Country music concert in Kansas

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 12 FACTORS OF PRODUCTION Factors of production – four basic resources used to create useful goods and services. Natural resources – anything provided by nature. Labor – the physical or mental human effort Capital goods – buildings, tools, machines, equipment Entrepreneurship – taking the risk of planning, managing, and producing the event.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 13 ECONOMIC SYSTEMS Market economy Scarcity – limited financial resources for unlimited wants (ex. College students life) Capitalism – free enterprise Socialism – govt controlled Communism – extreme form of socialism, govt owned.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 14 COLLEGIATE EVENTS NCAA Tournament Entertainment events - concerts Homecoming

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 15 LESSON4.3 LESSON 4.3 MANAGING PROFESSIONAL SPORTS GOALS Describe the job positions and responsibilities involved in sports management. Explain the importance of community involvement for professional sports teams.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 16 SPORTS MANAGEMENT JOBS Requirements Knowledge of business Long workweeks (50-60 hours) including night and weekend hours Employment outlook Competitive Most require internships (may not be paid) Growing

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 17 EXAMPLE OF SPORTS MANAGEMENT JOB TITLES Marketing and Promotions Director Corporate Sales Director Director of Ticketing and Finance Sporting Goods Sales Manager Facilities Coordinator Athletic Business Manager Fitness Manager

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 18 COMMUNITY INVOLVEMENT Community relations coordination Pro sports franchises must demonstrate a commitment to the community that supports the team and facility. Increased visibility shows goodwill (ex. Charity events) Catering to young fans Kids’ Club gain enthusiasm of young fans and their families.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 19 LESSON4.4 LESSON 4.4 MANAGING OTHER EVENTS GOALS Explain the various types of organizational structures. Describe the value of special events and their importance during shoulder periods.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 20 ORGANIZATIONAL STRUCTURE Line organizations – trace all authority and responsibility in a direct line from top executive down to lowest employee level. Unity of command – employees report only to one supervisor at a time. Span of control – the number of employees that a manager supervises directly. Line-and-staff organizations Matrix organizations – forms temporary work teams for specific projects. Team organizations – divides employees into permanent work teams. Teams have responsibility. Self-directed work teams – organized without a permanent team leader.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 21 BUSINESS ORGANIZATION Centralized organizations – have a few top managers who do all major planning and decision making. Decentralized organizations – divide large businesses into smaller operating units. Flattened organizations – have fewer levels of management. Improves communication because info flows through fewer levels of business. More coordination and cooperation are necessary due to less specialization.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 22 MORE THAN A THEME PARK Making the bad times good Shoulder periods – non-peak times at theme parks. (peak season is summer) Mardi Gras at Universal Studios Orlando, Halloween at Kings Island Creating a special event Proforma – financial document projects attendance and revenue necessary to be success.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MANAGEMENT CHAPTER 4SLIDE 23 MORE THAN A THEME PARK Marketing and sales (Ex. Universal) Brand marketing – the process of creating a perception that separates an organization from its competitors. Upselling – selling additional products to customers beyond the initial purchase. Synergy – strength gained from partnerships (Ex. Sponsors like Toyota, Gatorade, etc..)