COLLEGE AND AMATEUR SPORTS Marketing College Athletics Economic Impact of College Athletics Amateur Sports

Popularity of Amateur Sports Professional athlete is someone who earns a living participating in a sport Amateur athlete is someone who does not get paid but plays for the enjoyment, challenge, or both 35 Million kids play in organized sports 7.8 Million participants in high school sports 460,000 NCAA student-athletes

Market Segmentation Market segment is a group of individuals within a larger market that share one or more characteristics Divides the marketplace into smaller interest groups

Market Segmentation Psychographics Demographics focus on characteristics that cannot be measured, such as attitudes and lifestyle choices. Consumers frequently make decisions based on emotions. Example: sports fans spend more money on clothing with a teams logo right after the team has a big victory Demographics focuses on information that can be measured, such as income, profession, gender, and education Example: males, $50,000+ income, college educated

Market Segmentation Geographics divides markets into physical locations, such as eastern, northern, southern, and western regions of the United States or the urban and rural areas of a state Example: US, South, Texas, Austin, 78738

Marketing and Sponsoring Amateur Sports There are millions of amateurs, which marketers see as millions of consumers Provides significant income for manufacturers Athletic apparel Team uniforms, shoes, equipment, etc. Fan jerseys Gaming Minivan and sport utility vehicle Etc.

Collegiate Licensing Company Top Merchandise Sales 2013-2014 Rank School 1 Texas 2 Alabama 3 Michigan 4 Notre Dame 5 Georgia 6 Florida 7 LSU 8 Florida State 9 Texas A&M 10 North Carolina

Collegiate Licensing Company Top Apparel Licensees 2013-2014 Rank Company 1 Nike 2 Knight Apparel 3 Gear for Sports 4 Adidas 5 Top of the World 6 Colosseum Athletics Corporation 7 Twins Enterprise 8 VF Imagewear 9 College Concepts 10 Outerstuff Ltd.

Collegiate Licensing Company Top Non-Apparel Licensees 2013-2014 Rank Company 1 EA Sports 2 Wilson Sporting Goods 3 Rawling Sporting Goods 4 Tervis Tumbler Company 5 Balfour 6 Northwest Company 7 Team Beans 8 Logo Chair 9 Wincraft 10 Herff Jones

Local Promotion of Amateur Sports Local business support amateur sports because: Promotion is good for the local team (many times a high school team) Image of being an active participant in the community People that attend the event will frequently shop with businesses that advertise in the sports program

Effects of Collegiate Sports A winning team has economic implications for school, community, region, and state Fan expectation Promotion of organization’s goods and services

Winningest D1 Football 1. Michigan: 924-331-36 2. Notre Dame: 899-313-42 3. Texas: 886-354-33 4. Nebraska: 879-368-40 5. Ohio State: 874-320-53 6. Alabama: 862-326-43 7. Oklahoma: 861-318-53 8. Penn State: 856-381-41 9. Tennessee: 819-371-53 10. USC: 813-332-54 Updated as of 12/27/2015

NCAA National Collegiate Athletic Association (NCAA) is the governing body of most college and university athletic programs NCAA creates guidelines for recruitment, gender equity, scholarships, gambling prohibitions, and many ethical issues The overall goal is the promotion of college athletics with a focus on the integrity of the athletes and their game

Joining the NCAA Must meet the following conditions: Obtain accreditation by the recognized accrediting agency of its region Offer minimum required sports for men and women (one in each of the three traditional seasons) Complies with all NCAA rules Cooperates with the NCAA enforcement program and accepts penalties imposed by that program

NCAA as a Sponsor Magnet The NCAA attracts sponsors that support intercollegiate athletics financially and provide business and personnel expertise These advertising dollars support the NCAA Championship, as well as allow expansion of NCAA programs for young people

NCAA Revenue 2011 – 2012 NCAA Revenues $912.8 Million

NCAA Growth

NCAA Division 1 Schools 340 schools Requirements Biggest student bodies, largest athletics budgets, most number of scholarships Requirements 7 sports for men 7 sports for women 2 team sports for each Division 1-A or Football Bowl Subdivision (FBS) 85 scholarships per year 15,000 minimum attendance requirements per home game 128 schools 11 Conferences Division 1-AA or Football Championship Subdivision (FCS) 60 scholarships per year No attendance requirements 122 schools 15 Conferences

NCAA Division II Schools 302 schools Requirements 24 Conferences Other 52% public institutions, 48% private 4,500 average number of students 50% of student-athletes earn some type of athletically funded financial aid Requirements 5 sports for men 5 sports for women 2 team sports for each 50% football and basketball games must be against DI or DII opponents No attendance requirements 24 Conferences Other 36 Scholarships per year Do not have to sit out a year when transfer student

NCAA Division III Schools 445 schools Requirements 45 Conferences 19% public institutions, 81% private 2,717 average number of students No athletic financial aid Requirements 5 sports for men 5 sports for women 2 team sports for each No attendance requirements 45 Conferences Other Do not have to sit out a year when transfer student Can not redshirt as freshman

FBS Conferences Conference Founded Members American Athletic Conference (The American) 1979 11 Atlantic Coast Conference (ACC) 1953 15 Big Ten Conference (Big Ten) 1896 14 Big 12 Conference (Big 12) 1996 10 Conference USA (C-USA) 1995 Independents 4 Mid-American Conference (MAC) 1946 12 Mountain West Conference (MWC) 1999 Pacific 12 Conference (Pac-12) 1959 Southeastern Conference (SEC) 1932 Sun Belt Conference (Sun Belt) 1976

American Athletic Central Florida Memphis Tulsa Cincinnati South Florida Cal State Connecticut Southern Methodist San Diego State East Carolina Temple Villanova Houston Tulane Naval Academy (2015)

Atlantic Coast Boston College Louisville Pittsburgh Clemson Miami Syracuse Duke North Carolina Virginia Florida State North Carolina State Virginia Polytechnic Institute Georgia Institute of Technology Notre Dame * Wake Forest * Baseball only

Big 10 Illinois Michigan State Penn State Indiana Minnesota Purdue Iowa Nebraska Rutgers Maryland Northwestern Wisconsin Michigan Ohio State

Big 12 Baylor Oklahoma State Iowa State Texas Kansas TCU Kansas State Texas Tech Oklahoma West Virginia

Conference USA Alabama at Birmingham Middle Tennessee State Southern Mississippi Florida Atlantic North Carolina at Charlotte UTEP Florida International North Texas UTSA Louisiana Tech Old Dominion Western Kentucky Marshall Rice

Independents Army BYU Navy * Notre Dame

Mid-American East Division West Division Akron Ball State Bowling Green Central Michigan Buffalo Eastern Michigan Kent State Northern Illinois Miami of Ohio Toledo Ohio Western Michigan

Mountain West Air Force Nevada, Reno San Jose State Boise State Nevada, Las Vegas Utah State Cal State, Fresno New Mexico Wyoming Colorado State San Diego State

Pacific 12 Arizona Colorado Stanford Arizona State Oregon Utah UC Berkeley Oregon State Washington UCLA USC Washington State

SEC East Division West Division Florida Alabama Georgia Arkansas Kentucky Auburn Missouri Louisiana State South Carolina Mississippi Tennessee Mississippi State Vanderbilt Texas A&M

Sunbelt Appalachian State Georgia State Texas State Arkansas State Louisiana, Lafayette Texas, Arlington Arkansas, Little Rock Louisiana, Monroe Troy Georgia Southern South Alabama

College Football Playoffs Rankings Why so much emphasis? Early exposure promotes a team A highly ranked team builds excitement and strong attendance at games (which creates fan loyalty and national respect) Preseason rankings influence major television networks (more revenue for the team and its university) Helps recruiting

College Football Playoffs Final Rankings   1 Clemson 14 Michigan 2 Alabama 15 Oregon 3 Michigan State 16 Oklahoma State 4 Oklahoma 17 Baylor 5 Iowa 18 Houston 6 Stanford 19 Florida 7 Ohio State 20 LSU 8 Notre Dame 21 Navy 9 Florida State 22 Utah 10 North Carolina 23 Tennessee 11 TCU 24 Temple 12 Ole Miss 25 Southern California 13 Northwestern

#1 Has Lingering Effects A national championship brings favorable national recognition and increased potential for recruitment of top high school athletes Retailers carrying national championship sportswear will experience tremendous growth in sales

College Football Most Valuable Teams School Valuation Revenue Profit 1 Texas $152M $121M $92M 2 Notre Dame $127M $86M $54M 3 Tennessee $94M $70M 4 LSU $111M $58M 5 Michigan $105M $88M $56M 6 Georgia $102M $76M $50M 7 Ohio State $100M $84M $51M 8 Alabama $99M $97M $46M 9 Oklahoma $96M $79M $48M 10 Auburn $89M $87M $47M 2015