1. 20-1 Chapter 20 Controversial Issues in Sports Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. 20-2Controversy Marketers Face Continuous Scrutiny For Sports Marketers, Criticism Emanates from Many Different Groups –Consumers –Consumer Advocacy Groups –Community Residents –Fans –Media –Government

3. 20-3 “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. 20-4 Controversial Issues in Sports Marketing Target Market Decisions Marketing Mix Decisions –Product –Distribution –Pricing –Promotion Broad-Based Controversies

5. 20-5 Target Market Decisions Exclusionary Membership Policies –Private Clubs Excluding Women or Minorities –Protests Regarding Masters Golf Tournament Targeting Children –Expensive Products –Creating Unrealistic Expectations

6. 20-6 Product Decisions Oversaturation of Spectator 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

7. 20-7 Product Decisions Appearance Money –May Cause Ticket Prices to Go Up –May Not Be a Good Investment TV’s Role in Spectator Sports –Media Time-Outs –Event Scheduling

8. 20-8 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. 20-9 Product Decisions 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 (Miller Lite Beer and the NFL) Tobacco Products (Marlboro and Indy Car) Products of a Sexual Nature (Viagra and MLB)

10. 20-10 Distribution Decisions Franchise Mobility –Loyal Fans Even When Overall Support Is Low –Team Moves because of Financial Incentives Drop in Table 20.1 Here

11. 20-11 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 3 rd Party Distribution

12. 20-12 Distribution Decisions Drop in Table 20.3 Here

13. 20-13 Pricing Decisions Ticket Prices –Fan Cost Index Documents High Cost –Focus on Corporate Ticket Buyers –Exorbitant Prices for Special Events PSLs –Personal Seat License –Permanent Seat License –University Contribution –Seeing PSLs Used at High Schools

14. 20-14 Examples of University PSLs Drop in Table 20.2 Here

15. 20-15 Pricing Decisions Pay-per-View (PPV) –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

16. 20-16 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

17. 20-17 Promotion Decisions Overcommercialization –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

18. 20-18 Promotion Decisions Signage Issues –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

19. 20-19 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. 20-20 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

21. 20-21 Broad-Based Controversies Costs Are Underestimated Drop in Table 20.4 Here

22. 20-22 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

23. 20-23 Gender Equity Title IX Led to More Female Participants Has Resulted in Cuts to Men’s Programs Most Universities Have Compliance Officer

24. 20-24 Handling of Performance Enhancing Drugs (PED) Steroids and Human Growth Hormones Rules Against Use, But Penalties Have Been Relatively Mild Have Leagues Condoned Use for Economic Reasons? Recent Government Intervention

25. 20-25 Integrity of Sports Criminal Charges –Sexual Assault, Marijuana Civil Infractions –Reckless Driving, DUI Cheating –Spying, Corked Bats, Foreign Substances

26. 20-26 Integrity of Sports Judging Transgressions –Olympic boxing, Olympic ice skating Selection of Location for Special Events –Salt Lake City Olympics Gambling –NBA referee, Pete Rose

27. 20-27Security A Concern versus a Criticism –Fan Safety –Terrorism –Tremendous Financial Burden on Organizers

28. 20-28 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

29. 20-29 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