1. Controversial Issues in Sports Marketing
Chapter 13

2. Controversy Marketers Face Continuous Scrutiny
For Sports Marketers, Criticism Emanates from Many Different Group, Including:
Consumers
Consumer Advocacy Groups
Community Residents
Fans
Media
Government

3. “Do The Right Thing” Ethics Is Subjective
Any Decision May Evoke Controversy
Critics Are Vocal
Issues for Both the Marketing of Sports Products and Marketing Through Sports

4. Controversial Issues in Sports Marketing
Target Market Decisions
Marketing Mix Decisions
Product
Distribution
Pricing
Promotion
Broad-Based Controversies
We will look at controversy in six categories – each of the five basic components of marketing strategy and a sixth category that encompasses broad-based issues that are important but do not fall neatly into one of the five strategic decision areas.

5. Target Market Decisions
Exclusionary Membership Policies
Private Clubs Excluding Women or Minorities
Protests Regarding Masters Golf Tournament
Augusta National Admits First Two Female Members
Targeting Children
Expensive Products
Creating Unrealistic Expectations
Augusta National has admitted its first female members, but many all-male AND all-female private clubs continue to operate within current legal parameters (not just sports-oriented clubs).

6. Product Decisions Over-saturation of Spectator Sports Gimmick Sports
More Teams, Longer Seasons, More Sports
More Post-Season Participants
More Media-Based Access to Sports
Gimmick Sports
Contrived Competitions
Athletes Outside of Their Sport
Focus on Sexuality Rather than Sport
Non-Athlete Participation
Oversaturation - MLB has added two more “wild card” teams for post season playoffs. The resultant one-game play-in for the divisional round of playoffs is not fully embraced by the fans.

7. Product Decisions Appearance Money TV’s Role in Spectator Sports
May Cause Ticket Prices to Go Up
May Not Be a Good Investment
Tiger Woods in 2010 Australian Masters
TV’s Role in Spectator Sports
Media Time-Outs
Event Scheduling
For Event Scheduling, note NFL’s decision to use “Flexible Scheduling” in determining it’s Sunday night broadcast. Appearance money is a product issue because the premise is that the payment secures participation by a premier athlete thereby improving the product from the fans’ perspective. It was reported that Tiger was paid a $3,000,000 appearance fee (plus his winnings).

8. Product Decisions Changing the Spectator Sport Core Product
Traditionalists Will Resist
Did the Change Make the Game Better
Player Mobility
Often Cited as the “Business Side” of Sports
Players Deemed “Greedy” – Moving for Money
Owners Deemed “Cheap” – Money over Fans

9. Product Decisions Culturally Insensitive Team Names and Mascots
Washington Redskins; Cleveland Indians’ Chief Wahoo
Unwholesome Nonsports Products Sold Though a Sports Platform
When Appropriate Segment Is Targeted
When Non-Targeted Segments Are Reached
Examples of Unwholesome Products
Alcoholic Beverages (Budweiser Beer and the NFL)
Tobacco Products (Marlboro and Formula 1 Racing)
Products of a Sexual Nature (Viagra and MLB)
Children are not a target market for beer, or cigarettes, or ED drugs, but they are exposed to the signage at the venues and advertising for these products during many sports broadcasts.

10. Distribution Decisions
Franchise Mobility
Loyal Fans Even When Overall Support Is Low
Team Moves because of Financial Incentives

11. Distribution Decisions
Taxpayer-Funded Venues
Billionaire Owners with Millionaire Players
New Stadium May be Required to Keep Team
Taxpayers “Held Hostage”
Better Ways to Spend Tax Money
Control of Streaming Video and Podcasts
Not Allowing 3rd Party Distribution

12. Controversy: Taxpayer Funded Venues
Table 13-3 is out of place in the textbook; it should be closer to content on page 514

13. Pricing Decisions Ticket Prices PSLs (Qualifying Payments)
Fan Cost Index Documents High Cost
Focus on Corporate Ticket Buyers
Exorbitant Prices for Special Events
PSLs (Qualifying Payments)
Personal Seat License
Permanent Seat License
Stadium Builders License (SBL term used for Levi’s Stadium)
University Contribution
Starting to See PSLs Used at High Schools

14. Examples of University PSLs (Football Season Tickets)

15. Example of NFL PSL – San Francisco 49ers
The term Stadium Builders’ License (SBL) is used instead of the more common term, PSL.

16. Pricing Decisions Pay-per-View (PPV) Team “Scalping” of Tickets
When Event Moves from Free to PPV Format
Will Mainstream Events Go to PPV Format?
Team “Scalping” of Tickets
Often Illegal for Individuals to Sell Tickets at Prices Exceeding Face Value
Some Teams have “Premium Ticket” Unit
Court Cases Ruled in Favor of the Teams
Secondary Ticket Market Being Used

17. Pricing Decisions
High Prices for Participation Sports, Athletic Shoes, and Other Sports-Related Products
Greens Fees
Ice Time
Shoes Endorsed by Popular Players
Food & Beverages at Pro Sport Venue

18. Promotion Decisions Overcommercialization Naming Rights
Proliferation of Event Sponsors – Olympics
Cluttered Sports Environment – NASCAR
Perception of Emphasis on Bottom Line
Naming Rights
Venue Names Often Ignored
Title and Presenting Sponsors
Cost – Is It a Sound Investment?

19. Promotion Decisions Virtual Advertising
Ability to Manipulate Environment
Ability to Block Out Actual Signage
Opportunities for Ambush Marketers
May Distract Viewer from the Action

20. Promotion Decisions Signage Issues Athlete Endorsements
Too Many According to Fans
Too Few Say Many Sponsors
Clean Stadium Concerns
Athlete Endorsements
Create Unrealistic Expectations Among Kids
Create Demand that Parent May Rebuff
Believed to Exert Upward Pressure on Prices

21. Promotion Decisions Virtual Advertising
Insert Signage over Blank Space
Insert Signage that Blocks Actual Venue Signage
Ambush Marketing Capability

22. Broad-Based Controversies
Overstated Estimates of Economic Value
Estimate Used as Rationale for Investment
Governments Invest Millions on this Basis
Critics Doubt Investments Will be Recouped
Critics Argue Much of the Money Would be Spent in the Area
Even without the Team, Stadium, or Event

23. Broad-Based Controversies
Costs Are Often Underestimated

24. Broad-Based Controversies
Disregard of Human Rights
Outsourced Manufacturing
For Example, Athletic Shoes in Vietnam
“Emergence of “Hate Nike” Web Sites
Led to New Policies at Some Universities
Competition Tours
Teams Reluctant to Compete in Countries
Zimbabwe
China
University policies regarding sponsorship/licensing in conjunction with the university - Issues concern living wage, work conditions, child labor, sexual harassment. For competition tours, typical concerns are political, safety, and health.

25. Broad-Based Controversies
Gender Equity
Title IX (in USA)
Has Led to More Female Participants
Has Resulted in Cuts to Men’s Programs
Most Universities Have Compliance Officer
Students typically think this law was passed specifically for athletic opportunities when its original intent addressed educational opportunities. The controversy is not the provision of more opportunities for women, rather it is when parity is sought by eliminating some men’s sports (i.e. wrestling).

26. Broad-Based Controversies
Handling of Performance Enhancing Drugs (PEDs) Steroids and Human Growth Hormones
Rules Against Use, But Penalties Have Been Relatively Mild
Have Leagues Condoned Use for Economic Reasons?
Recent Government Intervention
Harsher Penalties in Recent Years
Leagues, Organizations, and Players’ Unions Have Supported Sanctions
The issue here is how they have been addressed; for instance, MLB was accused of pretty much turning a blind eye to their use because the surge in home runs created interest among fans (as they recovered from a work stoppage in 1994). Let’s see what happens with Maria Sharapova who was found to be using an illegal substance in early 2016.

27. Broad-Based Controversies
Integrity of Sports
Criminal Charges
Sexual Assault, Marijuana, Domestic Abuse
Civil Infractions
Reckless Driving, DUI
Cheating
Spying, Corked Bats, Foreign Substances
Deflategate has emerged as a topic of discussion among fans and media.

28. Broad-Based Controversies
Integrity of Sports (continued)
Judging Transgressions
Olympic boxing, Olympic ice skating
Selection of Location for Special Events
Salt Lake City Olympics
Gambling
NBA referee, MLB’s Pete Rose
Were bribes the reason Salt Lake City was selected for the 2002 Winter Olympics? How about Qatar for 2022 World Cup? Questions have been raised.

29. Broad-Based Controversies
Security
A Concern versus a Criticism
Fan Safety
Terrorism
Tremendous Financial Burden on Organizers
Compensation for Student Athletes
Should They be Compensated
How is Equity Achieved; Who Should Receive What?
Entry into some sports events – such as MLB and NFL – now resembles airport security with metal detectors, clear bags required, and all objects removed from pockets for scrutiny.

30. Closing Capsule Sports Marketers Have Many Critics
Questions Arise Regarding Each Element of an Organization’s Marketing Strategy
There Are Also Several Broad-Based Controversies Surrounding the Sports Marketing Environment

31. Closing Capsule We Market Through Sports We Market Sports Products
It May Sound Easy, But It’s Not
As a Business, There Is A Focus on the Bottom Line –
and the Industry Has Critics (and Advocates)