1. chapter 5
Professional Sport
James M. Gladden, William A. Sutton

2. Introduction
Professional sport is any sport activity or skill for which the athlete is compensated
Compensation can be in the form of a salary, bonuses, reimbursement for expenses, or any other forms of direct payment
(continued)

3. Introduction (continued)
The heart of North American sport
Super Bowl
World Series
Masters
Indianapolis 500
Wimbledon
Kentucky Derby
X Games

4. Nature of Professional Sport
David Guterson (1994)
Professional sport industry principles
Labor
Management
Governance

5. Unique Aspects of Professional Sport
Interdependence
Structure and governance
Labor–management relationship
Role of electronic media

6. Interdependence Teams simultaneously compete and cooperate
All teams make sacrifices and concessions for the long-term benefits and growth of the league
Each league pools its revenues to some extent

7. Structure and Governance
League office includes
League commissioner
Board of governors composed of team owners
Central administrative unit
Negotiates contracts and agreements
Responsible for scheduling, licensing, and so on
Coordinates publicity and advertising

8. Labor–Management Relationship
Five unique circumstances and conditions
Baseball’s antitrust exemption
Collective bargaining
Free agency
Salary caps
Player draft

9. Baseball’s Antitrust Exemption
Sherman Antitrust Act
Created to prohibit companies from dominating their respective markets in interstate commercial activity, thus creating a monopoly
Supreme Court ruling
Federal Base Ball Club of Baltimore, Inc. v. National League of Professional Base Ball Clubs (1922)
MLB was granted an exemption to antitrust law

10. Collective Bargaining
National Labor Relations Act (NLRA)
Common elements

11. National Labor Relations Act
Provides three basic rights
Right to self-organization—to form, join, or assist labor organizations
Right to bargain collectively through agents of one’s own choosing
Right to engage in concerted activities for employees’ mutual aid or protection

12. Common Elements Contract Compensation Labor Rights Agreement Clauses
Protection
Benefits
Discipline

13. Free Agency Implications Restrictions
After fulfilling number of years of service with a team, players can sell their services to another team
Restrictions
A negotiated item in the collective bargaining agreement
Recognizes team investment in the player

14. Salary Caps
Labor and management share revenues generated by the league
Places limit on total compensation
All teams must comply
Put into effect through collective bargaining

15. Player Draft Designed to be an equitable system
Teams with poor records have an advantage over teams with winning records in acquiring talented new players
Teams restrict competition for new talent
Team that drafts a player determines destination and salary of new player

16. Role of the Electronic Media
Importance of television
Teams and leagues receive revenue
Enhances the enjoyment for viewers
Emerging sources of media coverage
Satellite
Internet

17. Revenue Sources for Professional Sport
Media contracts
Gate receipts
Licensing and merchandising
Sponsorship

18. Media Contracts Table 5.3 Proliferation of sport programming
National media contracts for sport leagues
Proliferation of sport programming
Growth and capabilities of both cable and satellite
Increased choices available
Decline in viewers of professional sports
Difficult for leagues to negotiate lucrative contracts

19. Gate Receipts Major source for minor league sports
Prevalent source for newer leagues
Majority retained by home team
Portion given to league
Portion may be given to opposing team

20. Licensing and Merchandising Revenues
Leagues and teams grant manufacturers the right to use names and logos
In return they receive a royalty
Lucrative source of revenue
Revenues distributed equally among teams

21. Sponsorships Signage Naming rights Becomes visible Demand for location
Rotating signage
Virtual signage
Naming rights
Corporation agrees to pay a large sum of money
Name of corporation included in the name of the facility

22. Career Opportunities Executives Player personnel Business positions
Overseers of the entire operation
Player personnel
Responsible for putting the best possible team on the field or court
Business positions
Responsible for generating revenue, marketing, developing a fan base, and working with customers

23. Executives Chief executive or operating officer
Responsible for entire organization
Chief financial officer
Responsible for accounting and financial planning
Chief marketing officer
Responsible for coordinating marketing mix
(continued)

24. Executives (continued)
General counsel
Responsible for overseeing all legal matters
General manger
Responsible for acquiring, developing, trading, and releasing talent

25. Player Personnel
Involved in identifying, evaluating, and developing potential and current players
Involved in observing players assigned to the minor leagues

26. Medical, Training, and Team Support
Responsible for physical and mental preparation and readiness of players
Responsibilities include
Medical and dental care
Treatment and rehabilitation
Nutrition
Strength and conditioning

27. Coaching Staff
Concentrates on all activities occurring between the lines
Primarily concerned with coaching, managing, and training players on the rosters

28. Player Education and Relations
Serves as a liaison between team and player
Educates players regarding
Financial management
Substance abuse
Nutrition
Image management
Additional higher education

29. Video Staff Support Produces and edits videos
Purchases and maintains hardware and software
Supervises and coordinates satellite feeds
Coordinates broadcasts

30. Equipment and Clubhouse Staff
Maintains, cleans, orders, repairs, distributes, inventories, ships, and packs all uniforms and equipment
Negotiates with manufacturers and sales personnel for equipment and uniforms
Provides security for the locker room both at home and on the road

31. Stadium and Facility Staff
Responsible for maintenance, upkeep, and repair of the playing surface
Prepares the team offices, locker rooms, training facilities, practice facilities, and playing fields

32. Ticket Sales Focuses on selling Season tickets Partial season tickets
Group tickets

33. Corporate Sales Targets corporations exclusively
May sell corporate sponsorships, luxury suites, or club seats

34. Game Experience
Focuses on enhancing the experience of people who attend games
Oversees music, video boards, and public address messages

35. Advertising Designs and writes advertising copy
Identifies, secures, and places advertisements in a variety of media

36. Promotions Focuses on providing an optimal experience to spectators
Oversees all promotional activity that occurs on the field or in the stands

37. Web Site Management Uploads and downloads content
Works with league offices to ensure appearance standards
Works with corporate sponsors
Creates content that will increase traffic to the site

38. Community Relations Creates and administers grassroots functions
Clinics
Charitable events
Implements leaguewide programs, such as NBA Reads program

39. Media Relations
Assists and works with the media by providing information necessary for game and publicity
Ensures that the needs of the media are met at every sporting event
Responsible for media guides, yearbooks, and game programs

40. Database Marketing Coordinator
Focuses on building databases of information about team customers
Oversees the marketing research efforts of the organization

41. Hospitality Coordinators
Responsible for game-related needs of
Corporate clients
Club seat holders
Luxury box owners
Coordinates the provision of
Food
Beverages
Computer and Internet connections

42. Information Technology Staff
Responsible for information technology hardware and software used in all operations of the franchise
Handles purchasing, network maintenance, and report generation.

43. Ticketing Manage the ticket inventory Responsible for
Ticket distribution
Printing
Accounting
Box office sales
Complimentary tickets
Financial settlement for visiting team

44. Securing Employment Steps that you can take An internship is essential
Construct an information file on teams and organizations
Seek part-time employment or volunteer experience in sales, game management, customer service, and hospitality
Interview people
Develop good understanding of the industry, leaders, and issues