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

Psychographics –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 RankSchool 1Texas 2Alabama 3Michigan 4Notre Dame 5Georgia 6Florida 7LSU 8Florida State 9Texas A&M 10North Carolina

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

Collegiate Licensing Company Top Non-Apparel Licensees RankCompany 1EA Sports 2Wilson Sporting Goods 3Rawling Sporting Goods 4Tervis Tumbler Company 5Balfour 6Northwest Company 7Team Beans 8Logo Chair 9Wincraft 10Herff 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: Notre Dame: Texas: Nebraska: Ohio State: Oklahoma: Alabama: Tennessee: USC: Georgia Updated as of 9/29/2014

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 – 2012NCAA Revenues$912.8 Million

NCAA Growth

NCAA Division 1 Schools –340 schools 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 Conferences15 Conferences

NCAA Division II Schools –302 schools 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 ConferencesConferences –Other 36 Scholarships per year Do not have to sit out a year when transfer student

NCAA Division III Schools –445 schools 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 ConferencesConferences –Other Do not have to sit out a year when transfer student Can not redshirt as freshman

FBS Conferences ConferenceFoundedMembers American Athletic Conference (The American) Atlantic Coast Conference (ACC) Big Ten Conference (Big Ten) Big 12 Conference (Big 12) Conference USA (C-USA) Independents4 Mid-American Conference (MAC) Mountain West Conference (MWC) Pacific 12 Conference (Pac-12) Southeastern Conference (SEC) Sun Belt Conference (Sun Belt)197611

American Athletic Central FloridaMemphisTulsa CincinnatiSouth FloridaCal State ConnecticutSouthern MethodistSan Diego State East CarolinaTempleVillanova HoustonTulaneNaval Academy (2015)

Atlantic Coast Boston CollegeLouisvillePittsburgh ClemsonMiamiSyracuse DukeNorth CarolinaVirginia Florida StateNorth Carolina State Virginia Polytechnic Institute Georgia Institute of Technology Notre Dame *Wake Forest * Baseball only

Big 10 IllinoisMichigan StatePenn State IndianaMinnesotaPurdue IowaNebraskaRutgers MarylandNorthwesternWisconsin MichiganOhio State

Big 12 BaylorOklahoma State Iowa StateTexas KansasTCU Kansas StateTexas Tech OklahomaWest Virginia

Alabama at BirminghamMiddle Tennessee StateSouthern Mississippi Florida AtlanticNorth Carolina at CharlotteUTEP Florida InternationalNorth TexasUTSA Louisiana TechOld DominionWestern Kentucky MarshallRice Conference USA

Army BYU Navy * Notre Dame Independents

Mid-American East DivisionWest Division AkronBall State Bowling GreenCentral Michigan BuffaloEastern Michigan Kent StateNorthern Illinois Miami of OhioToledo OhioWestern Michigan

Mountain West Air Force Nevada, Reno San Jose State Boise StateNevada, Las VegasUtah State Cal State, FresnoNew MexicoWyoming Colorado StateSan Diego State

ArizonaColoradoStanford Arizona StateOregonUtah UC BerkeleyOregon StateWashington UCLAUSCWashington State Pacific 12

SEC East DivisionWest Division FloridaAlabama GeorgiaArkansas KentuckyAuburn MissouriLouisiana State South CarolinaMississippi TennesseeMississippi State VanderbiltTexas A&M

Sunbelt Appalachian State Georgia State Texas State Arkansas StateLouisiana, LafayetteTexas, Arlington Arkansas, Little RockLouisiana, MonroeTroy Georgia SouthernSouth 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 1Alabama14UCLA 2Oregon15Arizona State 3Florida State16Missouri 4Ohio State17Clemson 5Baylor18Wisconsin 6TCU19Auburn 7Mississippi State20Boise State 8Michigan State21Louisville 9Mississippi22Utah 10Arizona23LSU 11Kansas State24Southern California 12Georgia Tech25Minnesota 13Georgia

#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 College Football Most Valuable Teams SchoolValuationRevenueProfit 1Texas$131M$113M$74M 2Notre Dame$122M$81M$48M 3Michigan$117M$91M$65M 4Alabama$107M$95M$53M 5LSU$103M$88M$50M 6Auburn$97M$75M$39M 7Tennessee$94M$70M$49M 8Oklahoma$93M$71M$43M 2014