Sport Facility Management: Organizing Events and Mitigating Risks

Chapter 1 Introduction

Sport Facility Management: Organizing Events & Mitigating Risks Preliminary Thoughts Common Denominators in Sport and Entertainment  Event classification  Type of facility  Risk association

Sport Facility Management: Organizing Events & Mitigating Risks Preliminary Thoughts (cont.) Sport facilities have a long and storied history 1966: First sport management program started at Ohio University Understanding large facility events helps transition to smaller venues

Sport Facility Management: Organizing Events & Mitigating Risks Globalization of Sport Rupert Murdoch  Owner of Fox Sports, LA Dodgers, Sky TV NFL  Kurt Warner played in NFL Europe MLB  Plays in Mexico, Japan, Puerto Rico World Cup 2002  Brazil v. Germany in Japan

Sport Facility Management: Organizing Events & Mitigating Risks Violence 1972 Olympics  Palestinian attack on Israelis 1996 Olympics  Bombing in Atlanta 1999  Metal detectors installed before high school basketball game 2002 College Football  Brawls  Fans tearing down goalposts Crowd Management Philosophy  Foreseeability

Sport Facility Management: Organizing Events & Mitigating Risks September 11th, 2001 Facility managers must reassure guests of their safety Budgets may increase by 40% Insurance companies reluctant to insure Event risk profile

Sport Facility Management: Organizing Events & Mitigating Risks Other Concerns Attendance downturn Economy TV ratings

Sport Facility Management: Organizing Events & Mitigating Risks Industry and Technology Changes Spectator-based to entertainment experience Quality over quantity Internet sales  ATTM “Smart” fan cards Wireless at seats

Sport Facility Management: Organizing Events & Mitigating Risks Conclusion  23% increase in construction of sport facilities Need for trained personnel who can manage and mitigate risk The future of sport management

Chapter 2 Planning and Producing an Event

Sport Facility Management: Organizing Events & Mitigating Risks Defining Event Management Getting things done through people Complex, surprising, ambiguous Satisfying stakeholders  Participants, sponsors, spectators

Sport Facility Management: Organizing Events & Mitigating Risks What Is Sport Event Planning and Production? Elements of management occurring within an organization A triangle of stakeholders Adapt, improvise, overcome

Sport Facility Management: Organizing Events & Mitigating Risks Steps in Planning and Producing the Event Agree on event goals SWOT – Strengths – Weaknesses – Opportunities – Threats Event development and monitoring strategies Manage event logistics Motivate and influence event volunteers

Sport Facility Management: Organizing Events & Mitigating Risks Cialdini’s Rules of Influence Reciprocation Commitment and consistency Social proof Liking Authority Scarcity

Sport Facility Management: Organizing Events & Mitigating Risks Steps in Planning and Producing the Event Pre-event briefing Track the event in real time Post-event debriefings Cleanup and/or closeout Reconcile the event

Sport Facility Management: Organizing Events & Mitigating Risks Additional Event Planning and Production Suggestions Event checklists  Double check  Be specific Recognize Murphy’s Law

Chapter 3 Financing Facilities

Sport Facility Management: Organizing Events & Mitigating Risks Introduction Unprecedented renovation and construction of sport facilities Escalating costs causing problems Teams relocating for new facilities The financing and economic impact of new facilities central to this chapter

Sport Facility Management: Organizing Events & Mitigating Risks Facility Financing Public  Keep public subsidy to minimum to expand cash flow Private  Emphasis is on stockholder wealth and stock price Combination

Sport Facility Management: Organizing Events & Mitigating Risks Financing Options General obligation bonds  Backed by government and require taxes Revenue bonds  Tax from specific sources COP (Certificate of Participation) TIF (Tax Increment Financing) Other

Sport Facility Management: Organizing Events & Mitigating Risks Financing Options (cont.) Public and private cooperation  Revenue bonds backed by sales tax  Naming rights and arena revenues  Land taxes  Club seating

Sport Facility Management: Organizing Events & Mitigating Risks Financial Team Examples  Facility manager/staff  Business plan consultant  Architect  Construction manager  Legal counsel

Sport Facility Management: Organizing Events & Mitigating Risks Cash Flow Definition Examples Why is cash flow such an important concept for the facility manager?

Sport Facility Management: Organizing Events & Mitigating Risks Public v. Private Financing Public financing supporters  New jobs, attracts new fans, etc.  “Minor League City”  Multiplier effect Private financing supporters  New stadiums do not create, they redistribute  Other activities lose participants  Tax base not expanded significantly

Sport Facility Management: Organizing Events & Mitigating Risks College Facilities Student fees User fees Corporate funding

Chapter 4 Privatization

Sport Facility Management: Organizing Events & Mitigating Risks Introduction Governmental resources are limited  Privatization shift 1990s  Most facilities funded publicly  However, managed privately Public-private partnership  Efficiency and effectiveness

Sport Facility Management: Organizing Events & Mitigating Risks Rationale for Utilizing Public- Private Partnerships Governments can and should do more with less Increased efficiency and effectiveness Competition Rewarding innovation

Sport Facility Management: Organizing Events & Mitigating Risks Public-Private Partnerships Types  Contracting out or outsourcing  Franchising  Commercialization/service shedding  Tax expenditure  Vouchers

Sport Facility Management: Organizing Events & Mitigating Risks Examples of Public-Private Sport Partnerships Event promotion and management Sport stadium financing and construction Private sport facility and event management

Sport Facility Management: Organizing Events & Mitigating Risks Possible Benefits of Privatization Economies of scale Discipline of market forces Increase in meaningful private-sector jobs Reduced threat and impact of strikes

Sport Facility Management: Organizing Events & Mitigating Risks Possible Drawbacks of Privatization Inefficient and costly Government still responsible for quality control Public employees needed to monitor the private sector

Sport Facility Management: Organizing Events & Mitigating Risks Final Thoughts Privatization is part of today’s sport event and facility management landscape Facility manager should be cognizant of both to run an effective operation