1. Sports & Entertainment Management Chpt. 3 - Managing Big League Sports

2. Managing Big Money Professional athlete: an athlete who has the will and ability to earn an income from a particular sport. Big League Sports: the “big” refers to revenue potential and the skill level of the actual physical competition It takes large sums of money to successfully operate professional sports teams. Sound financial management is necessary to build the latest state of the art stadiums and arenas and to pay player salaries that are well into the millions

3. Multi-million dollar contracts equal huge ticket sales, merchandise sales.
Winning teams equal strong ticket sales with high ticket prices and sold out games
The Big 4 sports are:
Major League Baseball (MLB)
National Basketball Association (NBA)
National Football League (NFL)
National Hockey League (NHL)

4. Player Average Salaries
Top Athlete Salaries
Sports League
Athlete Salary
Agent Salary
MLB
$20,000,000
$600,000
NBA
$25,000,000
$750,000
NFL
$18,000,000
$540,000
NHL
$10,000,000
$300,000
Player Average Salaries
Sports League
Athlete Salary
Agent Salary
MLB
$2,800,000
$84,000
NBA
$4,200,000
$126,000
NFL
$1,700,000
$51,000
NHL
$1,800,000
$54,000

5. The Organizing Function Organizing determines how plans can be accomplished most effectively. Organizing is all about arranging resources and developing relationships. Organizational Charts Organizational Charts: illustrations that show the structure of an organization, the major job classifications, and the chain of command. Organizational charts clearly show each employee’s department and supervisor and identify lines of authority and formal communication.

6. Job descriptions: define requirements for each position in an organization. Job descriptions include skills required for the position and the basic function. Detailed job descriptions can list as many as 20 duties and responsibilities.

7. Duties can include:
Travel requirements
Physical demands
Audiovisual demands
Specific actions
Work environment
Job requirements
Good job descriptions include measurements of success that describe how the employee will be evaluated.

8. Managers of Professional Sports Coach: responsible for planning and implementing training & recruiting. League Commissioner: oversee all operations of the league. Owners: oversee all operations of the team. Attract and keep a sports franchise in a city. General Manager: attract best professional players to a team, organize and motivate coaching staff, manage large budgets. Agent: legal representatives who negotiate new contracts, endorsement deals, and public relations matters. Some may handle finances from filing taxes and making investments.

9. Characteristics of a Successful Agent
Agents are objectives leaders who understand legal terms, honest, ethical negotiators, good communicators, patience, enthusiasm, understanding of sports.
Fees and Competition
Commission: percent the agent receives for negotiating the contract.
Agents receives 4% -10% (varies) of negotiated contracts

10. Unethical Behaviors Ethics: deciding what is right and wrong in a reasoned and impartial manner. Unethical Behaviors could include funneling money and gifts to prospects, representing too many athletes at one time, putting pressure on student athletes, using poor ethical judgment to make large sums of money.

11. Functions of Management Examples for Professional Sports
Planning
what needs to be done to host a Super Bowl game or determine best TV schedule
Organizing
Hiring the best coaching staff
Implementing
Building a new arena
Evaluating/Controlling
Selling all tickets 2 weeks before the event

12. Benefits: Prestige, Power and Profitability
There are many benefits of owning/managing a professional sports team.
A. Perks: a payoff or a profit received in addition to salary
B. Political Clout
Franchise owners who bring millions of dollars in business activities often find themselves with political clout.
New local jobs and businesses
New image for the city
Motivation for people to stay in city
Build a new stadium

13. C. Professional Teams and the Community
Brings enthusiasm, heightened emotion, and morale to a city
Brings jobs
People identify with teams
Offers entertainment for the family
 D. Distributing the Game
1. Cartel: a group of independent businesses (sport teams) governed by the league to control the production, pricing, and marketing of a team.
2. The League
a. Decides location of the team
b. Decides number of teams that can operate in the league

14. Financing Professional Sports
Selling the naming rights to their stadiums
Build multi-functional stadiums that offer luxury suites and restaurants.
Use of TV ads to pay the cost of broadcasting the game.