Sports and Entertainment Marketing © Thomson/South-Western ChapterChapter Sports and Entertainment Means Business 2

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 2 Lesson 2.3 Business Ethics Learning Targets I can define ethics. I can discuss the impacts of unethical behavior.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 3 Terms Ethics Principles

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 4 DO ETHICS COUNT? Ethics a system of deciding what is right or wrong in a reasoned and impartial manner. All businesses should be conducted with integrity, trust, and fairness.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 5 Ethics and Character Matter Principles high standards of rules and guidelines. Character Development a progression in behavior - advance from childish behavior to mature behavior (it takes time) Young people need good role models.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 6 Common Principles in our society? Don’t Kill Don’t Steal Common Principles for NCAA? Can’t except money from boosters/agents

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 7 BUSINESS BEHAVIOR People (businesses) should act ethically while pursuing a profit. Athletes (teams) should act ethically while pursuing a victory.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 8 Seeking an Advantage Sometimes it is hard to continue to act ethically when you observe people who receive a benefit from acting unethically. PED’s (Performance Enhancing Drugs) Corked Bats Paying or giving gifts to recruits

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 9 When Being Bad Profits Only fans can really influence the behavior of ethically challenged athletes and celebrities.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 10 Effective and Ethical Good decisions are both ethical and effective. Good decisions are the right choices for the long term.

Sports and Entertainment Marketing © Thomson/South-Western DUE TODAY! Assignment Sheet from yesterday. FFFL Week 4 Stats Chapter 2 Slide 11

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 12 Lesson 2.4 Financial Analysis Learning Targets I can discuss sources of funding and revenue for sports and entertainment businesses. I can list and describe four tools for financial analysis.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 13 Terms Return On Investment Forecast Budget Balance Sheet Income Statement

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 14 IT TAKES MONEY Profit is the primary purpose of sports and entertainment marketing. #1 Goal/Objective of any business is to make a profit.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 15 Finding Funding Funding for an event is typically provided by investors. Example Costs – Celebrity Golf Pro-Am Salaries Promotions/Advertising Player Fees Course Fees

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 16 the income from a venture that is distributed to investors. Payment investors receive for providing financial backing. Return On Investment

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 17 Money Sources Funds to repay investors are raised through; Ticket Sales Pre-Game Sales and Season Tickets Broadcast Rights TV and Radio Licensing Merchandise and Apparel Facilities signage, parking fees, luxury boxes, concessions

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 18 WHERE IS THE MONEY? Forecast a plan/report that predicts the expenses to be incurred and the revenues to be received. Note – must always do your homework if you want a successful business/team.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 19 Budget a plan for how available funds will be spent. Solid budgets list specifics - Income (money coming in) and Expenses (money going out). Sole purpose of a budget is to control costs so they do not exceed the funds available. Helps businesses/people to allocate money and not spend more than they have.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 20 Financial Statements Balance Sheet shows net worth at a specific point in time. (Assets – Liabilities = ) Assets = items of value, cash, property, equipment. Liabilities = amounts owed for purchases made on credit and loans. Income Statement shows revenues and expenses for a specific period of time. Reveals company’s profit or loss.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 2 Slide 21 Investor Do Their Homework NOTE – reviewing the forecasts, budgets and financial statements is a must prior to investing. Financial Analysis – Four Tools; 1.Forecasting 2.Budgeting 3.Balance Sheet 4.Income Statement