1. Sports and Entertainment Marketing © Thomson/South-Western ChapterChapter Sports and Entertainment Legal Issues 13.2 Labor Unions 13

2. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 2 Winning Strategies Sanders Morris Harris Group paid $5 million for a 50% interest in Select Sports Group. The combined group offers services in: salary/contract negotiations financial planning This new group has the resources to expand. Major League Baseball clients National Basketball Association clients A Perfect Match

3. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 3 Lesson 13.2 Labor Unions Goals Explain the need for salary caps. Describe the financial and public relations impacts that strikes may cause to a sport. Discuss owner-labor relations and the impacts of labor unions.

4. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 4 Terms collective bargaining collective bargaining agreement salary cap

5. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 5 ORGANIZED LABOR players’ associations the labor unions of athletes in professional sports collective bargaining when a group of employees join together as a single unit to negotiate with employers

6. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 6 Bargaining Rights collective bargaining agreement (CBA) negotiated by the players’ association covers all league players includes salary ranges, contract length, and operating rules

7. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 7 Topping the Salary salary cap a maximum amount that a team can spend on players’ salaries

8. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 8 How do players’ salaries influence the financing of professional sports?

9. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 9 OWNERS VERSUS PLAYERS When owners and players can not come to an agreement on contracts, strikes can result. Everyone looses out during a strike.

10. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 10 Picking Up the Pieces Congress can design laws to control the loss of wages by third-party victims.

11. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 11 Winning Back the Fans Despite assorted promotional efforts, it is often hard to win back fans after a strike.

12. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 12 Why do labor conflicts hurt the promotion of a sport?

13. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 13 LABOR RELATIONS Soccer Success Major League Soccer (MLS) owners are considered business partners structure was designed to keep teams with big audiences from dominating teams in smaller markets

14. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 14 Getting Along Labor and management must cooperate if a business is to succeed.

15. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 15 Entertainment Labor Unions that represent celebrities are: The Screen Actors Guild (SAG) The American Federation of Television and Radio Artists (AFTRA)

16. Sports and Entertainment Marketing © Thomson/South-Western Chapter 13 Slide 16 How do strikes and lockouts financially affect a sports team?