Sport Management: Principles and Applications Chapter 4 Professional sport

2 Chapter 4 – Professional sport What is professional sport Circuits of promotion Sport circuits Media Sponsorship Player management Ownership and outcomes Summary

3 Pro sport defined The apex supporting community sport? Commercial animal soaking resources from the economy? Shift from amateur to professional Pro sport is an essential part of society

4 Growth of pro sport Growth due to seasons and schedules created World cup events an example of commercial growth Commercialization in the 1970s Hyper-commercialization in the late 1990s

5 Table 4.1 – Team values

6 Circuits of promotion Sport events and product promotion are interdependent Example of Jordan – Nike, NBA, Gatorade, etc. Continuous commercial benefit and endless leveraging opportunities for athletes and organizations

7 Sport circuits Global circuits – NASCAR, European Champion’s League, ATP tour, F1, Olympics, World Cups City bid process Government support Broadcast rights

8 Media Information and entertainment role Print, radio, TV, internet Mighty Ducks NHL franchise (Disney) one example of media ownership in sport Media control of pro sport? Broadcast rights fees exceed gate takings

Figure 4.1 – Sport and media relationships 9

Fig 4.2 – Olympic Broadcast rights 1980– 2008 Summer and Winter Games 10

11 Sponsorship Sponsorship value tied to exposure or media coverage Exclusive rights Naming rights Athlete, team, league and event sponsors

12 Player management IMG agency revolutionized player management Octagon – Phelps strategy Role of the ‘multiple’ –Help win games –Secure fans to the gate –Help win broadcast contracts –Secure sponsorships –Assist in team and league merchandizing Examples?

13 Table 4.2 Highest value football players

14 Ownership and outcomes Profit maximizers Win maximizers Interdependent nature of pro sport Competitive balance – labour regulation and revenue sharing

15 Summary What is professional sport Circuits of promotion Sport circuits Media Sponsorship Player management Ownership and outcomes