1. Chapter 1.1 Factors Contributing to Industry Growth

2. LESSON 1.1 History of SEM Factors Influencing Industry Growth  Increase in participation  More people following sports and entertainment  Increase in sports/entertainment offerings  Attendance boom  Media coverage  Global products

3. LESSON 1.1 History of SEM Evidence of Increased Participation Rates U.S. Youth Soccer Association 1974 100,000 registered players Today 3.2 million registered players 800,000+ coaches & volunteers

4. LESSON 1.1 History of SEM US Golfers 19743.5% of population Today12.6% of the population Evidence of Increased Participation Rates

5. LESSON 1.1 History of SEM Lacrosse 280% increase in the last decade National Federation of State High School Associations Evidence of Increased Participation Rates

6. LESSON 1.1 History of SEM Skateboarding 74.1% growth within the past 10 years National Sporting Goods Association (NSGA) Evidence of Increased Participation Rates “Skateboarding saw a remarkable increase in the last 10 years, due in part, to the television exposure provided by ESPN’s X- Games” - NSGA VP of Information & Research, Thomas B. Doyle

7. LESSON 1.1 History of SEM USA Hockey 2014519,547 people register as amateur hockey players 8,000 more players than any other year non-traditional markets like California, Texas and Florida have grown exponentially over the past 20 years CBS Sports report Evidence of Increased Participation Rates

8. LESSON 1.1 History of SEM  Increase in participation  More people following sports and entertainment  Increase in sports/entertainment offerings  Attendance boom  Media coverage  Global products  Emergence of Internet and new technologies Factors Influencing Industry Growth

9. LESSON 1.1 History of SEM Television Broadcasts 1971 - U.S. TV broadcast 800 hours of sports 2014 NBC streamed the entire Winter Olympics in Sochi, Russia 1 st time that fans had a chance to watch every Winter Olympic event live Compared with a total of 14 total hours of coverage from the 1964 Tokyo games Increase in Those Following Sports & Entertainment

10. LESSON 1.1 History of SEM  Increase in participation  More people following sports and entertainment  Increase in sports/entertainment offerings  Attendance boom  Media coverage  Global products  Emergence of Internet and new technologies Factors Influencing Industry Growth

11. LESSON 1.1 History of SEM Disc Golf 1995560 courses nationwide 20001120 courses nationwide Today4,000 courses globally played in 40+ countries Professional Disc Golf Association Increase in Sports/Entertainment Offerings

12. LESSON 1.1 History of SEM Surfing In 2013, Hawaii became the first state to sanction surfing as an officially recognized high school sport Increase in Sports/Entertainment Offerings

13. LESSON 1.1 History of SEM Bass Fishing Also in 2013, the state of Missouri bass fishing became an officially sanctioned high school sport Illinois, Kentucky and Tennessee already had it Increase in Sports/Entertainment Offerings

14. LESSON 1.1 History of SEM Go Kart Racing One school in Florida is attempting to legitimize Go Kart racing as an official varsity sport Increase in Sports/Entertainment Offerings

15. LESSON 1.1 History of SEM Spikeball A new sport called Spikeball burst on the scene two years ago Already boasts 125,000 participants Fastest growing sport in the U.S. Increase in Sports/Entertainment Offerings

16. LESSON 1.1 History of SEM ESPN’s coverage features more than 65 sports including: Increase in Sports/Entertainment Offerings MLBWNBASpelling NBACollege FootballBilliards NFL Monday Night Football Men’s & Women’s College Basketball Poker NASCARGolfArena Football MLSLittle League World Series Eating Championships FIFA World CupFishingX Games

17. LESSON 1.1 History of SEM DirecTV now offers over 285 channels as part of their “premiere” package over 50 channels dedicated specifically to sports programming 17 “specialty” packages that require an additional subscription like the NBA League Pass, NFL Ticket or NHL Center Ice Increase in Sports/Entertainment Offerings

18. LESSON 1.2 History of SEM Copyright © 2014 by Sports Career Consulting, LLC

19. LESSON 1.1 History of SEM  Increase in participation  More people following sports and entertainment  Increase in sports/entertainment offerings  Attendance boom  Media coverage  Global products  Emergence of Internet and new technologies Factors Influencing Industry Growth

20. LESSON 1.1 History of SEM Attendance Increases NHL 1978-1979 7,758,050 attendance 2013-2014 21,960,034, attendance Only played half a season due to a lockout that drew plenty of fan and media criticism, NHL league And missed several weeks of the season during the 2014 Winter Olympic Games in Sochi

21. LESSON 1.1 History of SEM Attendance Increases Movies Over 75% of movies in the top 50 all-time highest- grossing films (before inflation) were released after the year 2000 1970sStar Wars$800 million 1980sET$750 million 1990sTitanic$2.19 billion 2000sAvatar$2.78 billion

22. LESSON 1.1 History of SEM Attendance Increases Movies Highest grossing animated films of all time: #1Frozen2013$1.27 billion #2Toy Story 32006$1.06 billion #3Despicable Me 22013$970 million #4Finding Nemo2003$936 million #5Shrek 22004$919 million

23. LESSON 1.1 History of SEM  Increase in participation  More people following sports and entertainment  Increase in sports/entertainment offerings  Attendance boom  Media coverage  Global products  Emergence of Internet and new technologies Factors Influencing Industry Growth

24. LESSON 1.1 History of SEM Media Coverage Media coverage of sports and entertainment has grown significantly in the past half-century, placing athletes and entertainers in the public eye with incredible frequency Introduction of Internet makes information available “on demand” with increased frequency and accessibility

25. LESSON 1.1 History of SEM Media Coverage  Television and radio provide alternative news sources to newspapers while social media provides an even newer alternative to all other forms of media  Profit potential for media centers encourage increased competition for top stories  Introduction of Internet makes information available “on demand” and with increased frequency

26. LESSON 1.1 History of SEM Media Coverage “Arnold Palmer…came along at the same time television was exploding in America. Now we’ve got global Internet access. Our sport wasn’t global when I began playing the Tour. Now it is. You can log on anywhere in the world an see what any player did in any tournament or for the year. With that international boom, that international stream of information, golf is getting exposed to parts of the world that it never even thought of getting into.” - Tiger Woods

27. LESSON 1.1 History of SEM  Increase in participation  More people following sports and entertainment  Increase in sports/entertainment offerings  Attendance boom  Media coverage  Global products  Emergence of Internet and new technologies Factors Influencing Industry Growth

28. LESSON 1.1 History of SEM Global Marketplace The international marketplace continues to provide a platform for driving sales of sports and entertainment products and services

29. LESSON 1.1 History of SEM Global Marketplace Global events attract world-wide attention, providing an exceptional marketing opportunity for ticket sales, sponsorship sales, licensing and merchandise opportunities and provide a major economic impact for host cities Wimbledon  Olympic Games Tour de France  Iditarod FIFA World Cup  Cannes Film Festival

30. LESSON 1.1 History of SEM Global Marketplace Winter X Games In 2010, ESPN, CANAL + Events and Tignes Ski & Snowboard Resort (in France) launched the first Winter X Games to be held outside the United States X Games Munich 2013 demonstrated the growth in global appeal of the event 47.5 hours of action were broadcast across ESPN’s various platforms, including 26.5 hours on live television

31. LESSON 1.1 History of SEM Global Marketplace Footwear and Sports Apparel International brands China’s Li Ning Germany’s Adidas and Puma Fiercely competing with American brands like Nike and Under Armour for market share

32. LESSON 1.1 History of SEM Global Marketplace Celebrity Endorsements Dwyane Wade left Jordan Brand for Li-Ning Steve Nash left Nike to sign with Luyou Kevin Garnett left Adidas to sign with Anta Kevin Love wears a new Chinese shoe brand, 361 Degrees

33. LESSON 1.1 History of SEM Global Marketplace Celebrity Endorsements Reebok Market Expansion - India Population of more than 1.2 billion people Signed Indian cricket captain M. S. Dhoni as its ambassador Negotiating with other yet-to-be-revealed “well-known personalities from different walks of life such as musicians, entertain- ers and professionals" according to the Economic Times

34. LESSON 1.1 History of SEM Global Marketplace Prominent American sport are making a push to expand their presence overseas by hosting regular season games (not exhibition games) outside of the United States

35. LESSON 1.1 History of SEM Global Marketplace Major League Baseball 2014 Season Opener Arizona Diamondbacks vs. Los Angeles Dodgers Played in Sydney, Australia NCAA College Basketball 2013 Season Opener MSU vs. UConn Played in Germany aboard USS Carl Vinson

36. LESSON 1.1 History of SEM Signs of Continued Industry Growth Video Game Industry Set to reach $70.1 billion globally by 2015 Due to the combined growth of console, portable, PC, and online video games DFC Intelligence

37. LESSON 1.1 History of SEM Signs of Continued Industry Growth Digital Music Pandora radio now boasts over 250 million users Revenue will exceed physical recorded music revenue for the first time in 2014

38. LESSON 1.1 History of SEM Signs of Continued Industry Growth Other Markets Theme Parks Projected to reach $29.5 billion by 2015 Footware Expected to reach $195 Billion by 2015 Ebooks ebook sales generated more revenue than hardcover books in 2012 overall ebook sales have increased 4,456% since 2008

39. LESSON 1.1 History of SEM Signs of Continued Industry Growth Soccer Nike 1994brand revenues were $40 million 2014brand revenues of $2 billion Adidas 2014 soccer division also surpassed $2.7 billion in sales

40. LESSON 1.1 History of SEM Signs of Continued Industry Growth Football NFL media fees are projected to double to $8 billion annually by the end of the decade Basketball Former NBA commissioner David Stern told industry executives at a 2013 meeting that the league estimated revenues would be a record $5 billion An increase of about 20% from the league's last full season in 2010-11 (the 2011-12 season was shortened by a lockout)

41. LESSON 1.1 History of SEM Signs of Continued Industry Growth Food and Beverage Centerplate Leading hospitality partner to North America's premier sports, convention and entertainment venues Fastest growing restaurant chain in America Serves over 115 million guests per year

42. LESSON 1.1 History of SEM Signs of Continued Industry Growth NBA Television 2014 NBA Finals Heat vs. Spurs 15.5M viewers Broadcast in 215 countries and 47 languages Social Media 400 million likes and followers combined across all league, team and player pages on Facebook, Twitter, Instagram, Sina and Tencent You Tube 1 st professional sports league to exceed 1 billion videos viewed on its YouTube channel More than 1.3 billion videos viewed overall

43. LESSON 1.1 History of SEM Signs of Continued Industry Growth Soccer 2014 World Cup shattered a number of viewership records double digit growth across ESPN’s digital platforms U.S.A. vs. Portugal match was the highest rated soccer match in ESPN history World Cup final between Germany and Argentina drew bigger TV audience than entire Stanley Cup finals Overall, 2014 World Cup viewership 29% increase over the 2010 tournament in South Africa

44. LESSON 1.1 History of SEM Signs of Continued Industry Growth Sports Franchises Yankees In 1973, the late George Steinbrenner bought the New York Yankees for just under $9 million. In 2014, Forbes magazine valued the historic franchise at $2.5 billion Cowboys Most valuable team in NFL at $2.3 billion Soccer Average Major League Soccer franchise is now worth over $100 million An increase of more than 175% over last 5 years

45. LESSON 1.1 History of SEM Fandom is a term used to refer to a subculture composed of fans characterized by a feeling of sympathy and camaraderie with others who share a common interest Signs of Continued Industry Growth

46. LESSON 1. History of SEM Signs of Continued Industry Growth The term fandom can be used to describe all types of fan groupings or “subcultures” Copyright © 2014 by Sports Career Consulting, LLC

47. LESSON 1.1 History of SEM Signs of Continued Industry Growth Over 50% of respondents claimed to more of a sports fan than they were five years ago ESPN’s annual “SportsNation Survey” found that a whopping 90% of male respondents claimed to be sports fans on some level Copyright © 2014 by Sports Career Consulting, LLC 58% of respondents would prefer to receive free season tickets to their favorite sports team than be promoted at work. 40% of those participating in the 2012 SportsNation Survey said they had traveled 250 miles or more to attend a sporting event

48. LESSON 1.1 History of SEM Signs of Continued Industry Growth Fans have, in a limited number of occasions, successfully organized on behalf of a cancelled television series to lobby networks to bring back their favorite show (examples include Chuck in 2010 and Community in 2012 while prompting Netflix to resurrect cult hit series Arrested Development) Copyright © 2014 by Sports Career Consulting, LLC

49. LESSON 1.1 History of SEM Signs of Continued Industry Growth The intensity levels of fandom vary, ranging from a casual sports fan who might take in one NBA game per year to those fans that put the “fan” in “fanatic” (and otherwise engage in behavior that other fans might otherwise find to be irrational) Copyright © 2014 by Sports Career Consulting, LLC

50. LESSON 1.1 History of SEM Signs of Continued Industry Growth Fans who go to extremes to show their loyalty to their favorite team, band, actor or other celebrity are often referred to as “superfans” Copyright © 2014 by Sports Career Consulting, LLC

51. LESSON 1.1 History of SEM Signs of Continued Industry Growth Self-proclaimed Clippers fan “Clipper Darrell” spent $12,000 customizing his BMW to reflect his love for the Los Angeles Clippers (complete with the license plate “CLIPERD”) Copyright © 2014 by Sports Career Consulting, LLC Darrell has gone so far as to have his own personal dedicated website Because Clipper Darrell began charging people for public appearances, the Clippers franchise asked that he disassociate himself with the team in 2012. They would later sort the issue out and Darrell returned to his regular seats.

52. LESSON 1.1 History of SEM Signs of Continued Industry Growth A Washington Redskins superfan who goes by the nickname “RG3 Woman” dresses up in a gold bodysuit at home games to cheer on her favorite player Copyright © 2014 by Sports Career Consulting, LLC

53. LESSON 1.1 History of SEM Signs of Continued Industry Growth In 2013, an Alabama football superfan passed away at the age of 91 but had attended 781 straight games Also in 2013, a lifelong Cleveland Browns superfan passed away (his family even encouraged everyone attending his funeral wear clothes supporting the team) but requested that the pallbearers be Cleveland Browns players, stating: "He respectfully requests six Cleveland Browns pall bearers so the Browns can let him down one last time." Copyright © 2014 by Sports Career Consulting, LLC

54. LESSON 1.1 History of SEM Signs of Continued Industry Growth Fandom explains why people propose at sporting events or feature a themed wedding centered on their favorite sports team Copyright © 2014 by Sports Career Consulting, LLC

55. LESSON 1.1 History of SEM Signs of Continued Industry Growth On opening night, Activision says that approximately 1.5 million gamers lined up outside 13,000 stores to buy a copy of Modern Warfare 3 at midnight USA Today published a story suggesting the number of people calling in to work sick the day after Call of Duty is release results in a significant increase University of Kentucky fans paid between $7,500 to $12,500 for the opportunity to attend a basketball camp (called John Calipari Basketball Fantasy Experience) and “essentially experience what it’s like to be a Kentucky basketball player” Copyright © 2014 by Sports Career Consulting, LLC

56. LESSON 1.1 History of SEM Signs of Continued Industry Growth The existence of fandom is what ultimately fuels today’s non-stop, around the clock media coverage of celebrities and sports stars and drives a culture in which athletes and celebrities are often quickly forgiven for highly publicized transgressions when they perform Copyright © 2014 by Sports Career Consulting, LLC

57. LESSON 1.1 History of SEM Signs of Continued Industry Growth After his immense popularity quickly dissipated upon the revealing of a “girlfriend hoax”, Notre Dame football star Manti T’eo was named by Forbes as one of the most disliked athletes in the U.S. Yet after earning a starting position with the San Diego Chargers, his jersey was among the top selling among rookies in 2013 Copyright © 2014 by Sports Career Consulting, LLC

58. LESSON 1.1 History of SEM Signs of Continued Industry Growth While many media pundits publicly chastised LeBron James’ decision to announce which team he would be joining in a one hour ESPN special, the show (aptly named “The Decision”) drew very high ratings as nearly 10 million people tuned in to watch Copyright © 2014 by Sports Career Consulting, LLC

59. LESSON 1.1 History of SEM Signs of Continued Industry Growth Despite all the scrutiny surrounding singer Chris Brown (including his widely publicized assault of then-girlfriend Rihanna, a disturbance in a nightclub with rapper Drake, and poor album reviews), his 2013 release of “Fortune” managed to debut at the top of the Billboard 200 chart Copyright © 2014 by Sports Career Consulting, LLC

60. LESSON 1.1 History of SEM Signs of Continued Industry Growth Because of the strong emotional connection fans maintain with their favorite sports teams, wins and losses on the grandest of stages can yield incredible influence (both positive and negative) on a community at large Copyright © 2014 by Sports Career Consulting, LLC

61. LESSON 1.1 History of SEM Signs of Continued Industry Growth After struggling with one of the worst national disasters in US history (Hurricane Katrina), fans in the New Orleans area often cited the New Orleans Saints Super Bowl win as an inspiration for the city’s resurrection Copyright © 2014 by Sports Career Consulting, LLC

62. LESSON 1.1 History of SEM Signs of Continued Industry Growth Representing their country just four months after a devastating tsunami rocked Japan, their women’s soccer team pulled off one of the greatest upsets in sports history by defeating the heavily favored Germans in the 2011 World Cup and, ultimately, beating the United States in the championship game. “Our playing is to be an encouragement for the victims of the disaster,” said Coach Norio Sasaki after the monumental victory while the headline in the New York Times the following day read: “A Resilient Team Soothes a Nation.” Copyright © 2014 by Sports Career Consulting, LLC

63. LESSON 1.1 History of SEM Signs of Continued Industry Growth Copyright © 2014 by Sports Career Consulting, LLC On the flip side, after losing in extra time in the World Cup final to Germany, a large crowd of Argentinian fans turned violent and destructive, including setting fires and rioting, a scene which required police intervention and many arrests to contain

64. LESSON 1.1 History of SEM Signs of Continued Industry Growth Fandom can, unfortunately, also result in an unhealthy (and potentially dangerous) subculture of fans that become too emotionally invested and obsessive with their favorite sports teams or celebrities. In 2014, a homeless man was arrested after allegedly stalking Rihanna, sending threatening letters and even appearing at her home on more than one occasion Copyright © 2014 by Sports Career Consulting, LLC

65. LESSON 1.1 History of SEM Signs of Continued Industry Growth After being knocked out of the 2013 NBA Playoffs, Chicago Bulls fans who were disappointed that star point guard Derrick Rose was unable to play that season due to injury took to Twitter to voice their displeasure. Moments after the team lost, #DerrickRoseMoreUselessThan started trending nationally on Twitter. Copyright © 2014 by Sports Career Consulting, LLC

66. LESSON 1.1 History of SEM Signs of Continued Industry Growth After a highly recruited football player made the decision to attend Alabama over Auburn, the recruit told rivals.com that "Someone actually put out an article about my family's business telling all Auburn fans not to go there. We are going to eventually start losing money. People are telling restaurants in the town not to serve us. Social media has definitely been the worst. People on Instagram are telling me how they hope I tear my ACL in game one. They will laugh when I do. They are saying my family is horrible and how they didn't raise me right. It's just crazy.” Copyright © 2014 by Sports Career Consulting, LLC