CHAPTER 3 Professional Sports SPORTS AND ENTERTAINMENT MARKETING 4/17/2017 CHAPTER 3 Professional Sports 3.1 Big League Sports 3.2 Attracting a Professional Team 3.3 Agents, Managers, and Ethics CHAPTER 3 CHAPTER 3

LESSON 3.1 Big League Sports GOALS Discuss the financial impact of professional sports. Identify the perks associated with big league sports. CHAPTER 3

Financial Impact Big league pricing and planning Financial planning for a sports team Bringing all the resources together CHAPTER 3

Big League Pricing and Planning Professional athletes contracts Corporate sponsorships Television revenue CHAPTER 3

Financial Planning for a Sports Team Financial viability for the home city Increased spending by fans Increased tax revenues CHAPTER 3

Bringing All the Resources Together Media support Marketing Charitable and other organizations CHAPTER 3

Prestige, Power, Profitability Perks and payoffs Political clout Professional teams and the community Sociological ties to a professional team The bottom line CHAPTER 3

Perks and Payoffs Perk—a payoff or profit received in addition to a regular wage or payment Company employees receive tickets Media exposure for owners CHAPTER 3

Political Clout Franchise owners bring millions of dollars in business activity to a city Frequently associated with wealth CHAPTER 3

Professional Teams and the Community Teams bring new jobs to a city Boost for surrounding businesses Community service CHAPTER 3

Sociological Ties to a Professional Team City’s “image enhancement” Residents feel pride Wholesome family entertainment CHAPTER 3

The Bottom Line Winning is everything in sports Special contract incentives for winning CHAPTER 3

LESSON 3.2 Attracting a Professional Team GOALS Describe the distribution process for a professional sports team. Explain the process for financing a professional sports team. CHAPTER 3

Getting in the Ballgame Distributing the game How distribution is decided CHAPTER 3

Distributing the Game Individual teams are separately operated businesses Cartel—a combination of independent businesses formed to regulate production, pricing, and marketing of a product The league controls the distribution of the teams CHAPTER 3

How Distribution Is Decided Region with a large potential customer base Subsidies for the team Owner must have financing Stadium to attract fans CHAPTER 3

Attracting a Sports Team It takes money And more money Cashing in Another option CHAPTER 3

LESSON 3.3 Agents, Managers, and Ethics GOALS Understand the role of agents in marketing. Explain ways that professional sports organizations and their sponsors develop an athlete’s character. Assess the impact of ethical behavior on an athlete’s promotional value. CHAPTER 3

Show Me the Money Agent—the legal representative of a celebrity Athletes won the right to become free agents CHAPTER 3

Polishing the Marketing Value Professional athletes ultimately responsible for their own behavior National Basketball Association rookie training program Illegal behavior may hurt ability to attract sponsors CHAPTER 3

Handlers Handlers—sponsor-paid individuals who work closely with athletes who are unable or unwilling to police themselves For athletes to remain valuable to sponsors, they must behave Neither can afford negative publicity CHAPTER 3

Advisors Financial and business counselors Advisors keep the athlete and sponsor together for the benefit of both CHAPTER 3

Do Ethics Count? Ethics—a system of deciding what is right or wrong in a reasoned and impartial manner CHAPTER 3

Ethics and Character Matter Lack of mature adult role models Frequent news accounts of unethical behavior by politicians, sports and entertainment figures, and religious leaders Can result in publicity that interferes with a marketing plan CHAPTER 3