1. Sports and Entertainment Management

2.  Managing Local Events  Economic Environments  Utility  Factors of Production  Economic Systems  Managing College Events  College Bowl Project  Professional Events

3.  Financial Plan  Marketing Plan  Budget  Economics  Supply  Demand  Utility  Factors of production  Economic system  Scarcity  Unity of command  Research

4.  Goals  Describe three types of plans necessary for organizing entertainment events.  Explain the importance of budgets as related to entertainment management.  Describe the management necessary for major events.

5.  Read page 79 in book  Answer the two questions at the end of the Wining Strategies article  Need a full sheet of paper as we will do another written activity

6.  By failing to plan, you are planning to fail. ▪ Benjamin Franklin  What does this mean in life?  What does this mean in business? “Americans spend more time planning their vacations then they do their careers and retirement”

7.  “Americans spend more time planning their vacations then they do their careers and retirement”  What are the consequences of failing to plan for  Your career?  Your retirement?

8.  Career  One you hate  Low pay  Not skilled enough  Limited advancement opportunities  Frustration

9.  Retirement  #1 concern of retired people is ----  Running out of money  Consequences of little/no retirement planning?  Running out of money  Not having enough to do what you want  Live with children  Poor post retirement care

10.  Much the same as life consequences  Limited money  Run out of money  Can not do what is wanted/needed for business  Unhappy employees (Think Hostess)

11.  The process of  Setting goals  Developing strategies  And outlining tasks and schedules ▪ to accomplish the goals.

12.  Any event needs cash and cash flow during the event.  Run out of cash and event is in trouble  Cash flow  Must plan and manage cash and cash flow

13.  A measure of a company's financial health  Equals cash receipts minus cash payments  over a given period of time  Sounds simple, right?

14. Over $213 BILLION In Revenue. This make the Sports Industry 2X the size of the Automotive Industry. Sources of Revenue: 2. Advertising - $27.43 billion 4. Operating Expenses: 14. Endorsements - $897 million (Not travel) 1. Sporting goods - $35.62 billion $22.98 billion. 12. Facility construction - $2.48 billion 15, Internet - $239.1 million2002 –Sale of Athletic and 9. Licensed goods - $10.50 billion Sports clothing: 10. Media broadcast rights - $6.99 billion $10 billion 7. Professional services - $15.25 billion 3. Spectator spending - $26.17 billion 11. Sponsorships - $6.4 billion 8. Medical spending - $12.6 billion 6. Travel - $16.06 billion 13. Multimedia - $2.12 billion 5. Gambling - $18.90 billion

15.  Business Plan  Document of a set of business goals  Reasons they are believed To be attainable  Plan for reaching those goals  Financial Plan  Projected income, expenses, and profits from event  Marketing Plan  Detailed description of all promotional activities

16.  What exactly does a business plan contain?  Research ▪ Very good site is the SBA  Briefly (handed in for credit) 1.List the elements or components of a business plan 2.Give a short description of each

17.  Goals of a company and how they will be achieved  Attain financing or funding ▪ Includes business loans  Strategy on paper ▪ Mistakes can be found here in thinking ▪ Less costly here  Road map for the business

18.  Executive Summary  Summary of your plan as a whole  Actually written last ▪ after other components completed  Company Description  What does the company do?  What is different from other companies?

19.  Market Analysis  Research business/industry the company operates within  Organization and Management  How is the business structured?

20.  Service or product offered  What do you sell or have to sell?  Benefit to customers?  Marketing and Sales  How do you plan to market your business?  What is your strategy?

21.  Financing/Funding  Where will you get funding for your business?  Financial Projections  Revenue Vs.. Expenses  What will be your return on investment?

22.  A written plan that  Describes the event  Events goals and objectives  How goals and objectives will be achieved ▪ Includes details for items as ▪ Jobs and job descriptions ▪ Legal issues ▪ Acquiring financing if necessary

23.  Managing Yourself  Hard to manage a business if you can not manage yourself.  What is your business plan for you? ▪ Career? ▪ Retirement? ▪ Think about things you want to do in life and retirement

24.  See Rubric  Contains eight elements covered for a business plan  It is on you as a company and a product  Think about managing your future  Where do you see yourself?  What is your product? (you)  What is or will be your value to someone?  Financing for college? How? How much?

26.  Setting a budget  Estimates expenses and sales  Shows number of people to be hired  Consider the following ▪ Previous attendance ▪ Competition ▪ Economic trends ▪ Amount of promotion

27.  Remember the Functions of Management  Planning is the process of setting  Goals (short and long term)  Developing strategies  Outlining tasks  And schedules ▪ to accomplish goals.

28.  Create a PERSONAL BUSINESS PLAN  Plan your next five years using below as your guide  The process of setting  Goals (short and long term)  Developing strategies  Outlining tasks  And schedules ▪ to accomplish goals.

30.  Any event needs cash and cash flow during the event.  Run out of cash and event is in trouble  Cash flow  Must plan and manage cash and cash flow

31. Over $213 BILLION In Revenue. This make the Sports Industry 2X the size of the Automotive Industry. Sources of Revenue: 2. Advertising - $27.43 billion 4. Operating Expenses: 14. Endorsements - $897 million (Not travel) 1. Sporting goods - $35.62 billion $22.98 billion. 12. Facility construction - $2.48 billion 15, Internet - $239.1 million2002 –Sale of Athletic and 9. Licensed goods - $10.50 billion Sports clothing: 10. Media broadcast rights - $6.99 billion $10 billion 7. Professional services - $15.25 billion 3. Spectator spending - $26.17 billion 11. Sponsorships - $6.4 billion 8. Medical spending - $12.6 billion 6. Travel - $16.06 billion 13. Multimedia - $2.12 billion 5. Gambling - $18.90 billion

32.  Money must be managed

33.  No single, universally agreed upon definition  Generally refers to two primary activities of an organization:  How an organization generates the funds that flow into that organization  How these funds are allocated and spent once they are in the organization

34.  Profits/Income  Difference between financial inflows (Revenues) and outflows (Expenses)  Assets: Anything an organization owns that can be used to generate future revenues  Teams can fund or “finance” assets in many ways:  Owners’ Equity: The amount of their own money owners have invested in the firm  Debt: Amount of money an organization borrows  College sports are nonprofit. Use budgetary transfers from the university and other innovative methods

35.  Many financial decisions ultimately revolve around management of assets  Return on Investment (ROI): Expected dollar- value return on each alternative investment  Risk  Future benefits of investment cannot be known at time of investment  Owners must decide how much they will finance with their own money and how much with borrowed money ▪ Debt carries more risk than equity does

36.  Long-term preparation where strengths and weaknesses are evaluated.  Strengths  Experience  Past success  New features  Weaknesses  Budget  Target market  Lack of experience

37.  Opportunities  Size of community  Expansion  Threats  Weather conditions  Economic conditions  Competitors

39. Chapter 4.2 Chapter 12 (new book) Finance, Economics, & Budgeting In The Sports Industry

40.  One of most diverse in the world  Sub industries  Professional sports  Collegiate athletics  Facility Management  Health and fitness  Sporting goods

41.  $435 billion industry (2012 est.)  Plunkett Research Plunkett Research ▪ What are the largest revenue producers?  11 th largest industry in the US  Ranks larger than insurance and legal services

43.  Has seen large growth over the last 20 years  138,000 jobs just in spectator sports  Not including careers in sport related industries

44.  Some economic problems  Income disparity between teams ▪ Try to solve with ▪ Revenue sharing ▪ Salary caps  NFL generates more revenue from media than gate receipts ▪ This revenue has grown but owners still complain

45.  Some Media outlets and sports teams  Own Each other  For years trend was for media to buy teams  Trend is now in other direction  Show  Media Companies No Longer Want To Own Sports Teams Media Companies No Longer Want To Own Sports Teams

46.  ESPN and their new TV deal ESPN and their new TV deal  Revenue streams

48.  Spectator sport industry is organized much differently from non spectator industry and from rest of American business.  The existence of one franchise benefits the others. © David Lee/ShutterStock, Inc.

49.  Sport leagues considered monopolies  They face no direct competition  Gives them greater bargaining power when dealing with stakeholders ▪ (e.g., players, broadcasters, corporate sponsors, and local governments) ▪ and allows them to potentially charge higher prices

50.  Allows teams to earn much higher profits  than would otherwise be the case,  as well as enact financial policies ▪ (e.g., salary caps, revenue sharing) that would not be possible with direct competition  Only legal monopolies in United States

51.  Contemporary Sport Management book  P 271 to 281  Economics deals with unlimited wants Vs.. Unlimited needs AKA Scarcity  Economics of sport is  The study of how people within a sports industry deal with scarcity  Scarcity is there are not enough resources to meet all peoples needs

52.  Scarcity is important because all managers encounter it  The most successful managers are those who make the best use of limited resources  What exactly is a resource?

53.  Basic resources used to create goods and services

54.  Capital or infrastructure  Labor or human resources  Land or natural resources  Entrepreneurship  Biological resources  Computer resources

56.  Typically resources cannot be consumed in their original form, but rather through resource development  They must be processed into more usable commodities.  With increasing population, the demand for resources is increasing.

57.  There are marked differences in resource distribution  and associated economic inequality between regions or countries,  With developed countries using more natural resources than developing countries.  Sustainable development is a pattern of resource use,  that aims to meet human needs while preserving the environment. [1] [1]

59.  Contemporary Sport Management book  P 271 to 281  Economics deals with unlimited wants Vs.. Unlimited needs AKA Scarcity  Economics of sport is  The study of how people within a sports industry deal with scarcity  Scarcity is there are not enough resources to meet all peoples needs

60.  Microeconomics  Macroeconomics

61.  The study of problems and workings of the economy as a whole  Microeconomics  The study of problems and workings of the economy in a specific region, or even individuals or households

62.  Supply  Relationship between price of a product and amount producers are willing/able to produce and sell  Demand  Relationship between price of a product and amount consumers are willing to pay

63.  You and ticket prices---  How many of you would attend a Phillies game if prices were  $100  $10

64.  The A Rod example (or any good player)  Normal supply and demand curve

65.  Supply and demand Curve  And Total Revenue ▪ Ticket prices ▪ Food and beverage prices ▪ Parking prices ▪ Sports Clothing ▪ Memorabilia

66.  If you were trying to fill a stadium, concert hall or movie theatre ---  Is it better to have a full “house” at lower price tickets or a slightly empty house at higher price tickets.

67. Ticket PricesQuantity SoldTotal revenue $1035,000$350,000 $1531,000$465,000 $2026,000$520,000 $2520,000$500,000 $3015,000$450,000 $3512,000$420,000

68. Ticket PriceSeats/Tickets SoldTotal Revenue $10545000 $9546000 $8554000 $7575000 $6578000 $5580000

69. Ticket PriceSeats SoldTotal Revenue $10545000$4,725000 $9546000$4,370,000 $8554000$4,590,000 $7575000$5,625,000 $6578000$5,070,000 $5580000$4,400,000

70.  Consumers will demand less of a product as the price of the product increases

71.  Involves more than just price times quantity sold  Total Revenue  Other factors to consider are peripheral sales  Food and beverage  Clothes  Other memorabilia

72.  The average person at an event spends $12, now what is the best price point?  Still $75 per ticket  $5.6 million in revenue and $900k in extra vs. and extra $60K for a sell out  $75 per ticket is still better by $1.16 million

73.  Scarcity  Limited financial resources for unlimited wants

74.  Capital may be scarce in the off season  Teams often borrow money  Are charged interest ▪ An interest rate ▪ Inflation

75.  Capital may be scarce in the off season  Teams often borrow money  Are charged interest ▪ An interest rate

76.  Capital resources are scarce  Better to know going in the chance for success  Vs. spending scarce resources and losing money  Economic Impact Study can help preserve scarce capital

77.  Economic Impact Study  10 points (#1 & 3 = 3 pts., #2 = 4) 1. What is an Economic Impact Study? 2. What are four reasons to conduct an economic impact study? 3. What is a basic multiplier effect and the two main components (hint we talked about $1 spent ripples through and economy 11 times)  Example Example

78.  Typed  MLA Format  NO copy and paste

79. Chapter 4.3

80. GOALS  Describe the job positions and responsibilities involved in sports management.  Explain the importance of community involvement for professional sports teams.

81.  4.3 in old book  New book:  Careers  115, 117 to 122,  244, 255, 256,  289 to 290  Job opportunities in (these are NOT jobs/careers)  Financial management  In professional sports  Public relations  Facility and event management  Tourism  Marketing

82.  What jobs can be found in sports and entertainment management?  Minimum 5 for an average grade (more for above average) Must also include a Brief description what each position does or is responsible for performing  May use the book to research

83.  Jobs examples in the field of  Marketing and Promotions Director  Corporate Sales Director  Director of Ticketing and Finance  Sporting Goods Sales Manager  Facilities Coordinator  Athletic Business Manager  Fitness Manager

84.  What do you need to be A Sports Agent?  See article on:  The Nature of Being a Sports Agent The Nature of Being a Sports Agent  Become a Sports Agent Become a Sports Agent  Education and Career Roadmap Education and Career Roadmap  Sports Agents: Career Definition Sports Agents: Career Definition  1. What education is recommended?  2. What is a realistic salary expectation?  3. What type of personality is recommended?

85.  Many colleges offer degrees in sports management.  (Majors, Minors, and Masters)  Competition comes from everywhere  Is fierce for the high profile careers like sports agent  A degree in the field offers  network opportunities  solid understanding of the product

86.  Jobs can be a cross of business and exercise science.  Requirements  Knowledge of business  Long workweeks including night and weekend hours  Employment outlook  Competitive  Growing

87.  Jobs in sports have increased significantly over the past decade due to an increased interest.  Internships in sports are important to help with networking. In college some unpaid internships can cover college credits

88.  Read: P 259 IN PROFILE  Answer:  1. What advice does Ms. Marquette offer students that want to break into the sport or entertainment industry?  2. If you get an internship, what should you consider it as far as your career?  3. Why don’t some students get an internships?  4. How would you go about getting an internship?

89.  Do you have what employers want?  If not, why would they  Hire you?  Give you a raise?  What VALUE do you add to your company/employer?

90.  No matter what type of sport organization involved, the finance function is crucial  Those interested in a career in sports should have solid grounding in:  Corporate finance  Managerial and financial accounting  Advanced use of spreadsheet software  For those interested in working in spectator sports, knowledge with sport economics is beneficial

91.  Research  Top 10 skills employers want  List the top 10  Give a brief description of each  Full sheet of paper as there will be a second activity associated with this activity.  Copy and paste = a BIG FAT ZERO for this activity

92.  1. Communication skills  Includes writing, speaking, body language  2. Analytical/Research Skills  3. Computer Technology literacy  4. Flexible/Adaptable/Manage multiple items  Time and task management  5. Interpersonal skills

93.  6. Leadership/Management skills  7. Multi cultural awareness  Many cultures in our society  Global economy  8. Planning and Organizing  9. Problem solving and creativity  10. Teamwork

94.  On the same sheet of paper as the 10 skills employers want--- 1. What are three skills you need to improve personally? 2. Why do you believe you need to improve these skills? 3. What are you going to do to improve these skills?

95. Chapter 19

96.  Chapter 19 in Contemporary Sport Management book  Pages417 to 439

97.  Importance of research  Techniques of good research  Value of asking questions in sport management  Analysis, interpret and evaluate questions  Importance of obtaining accurate answers

98.  Usually unpopular  Most students would rather gain satisfaction from hands on “learning”  Less interested in theory and research  Usually need to actually be a manager to  Fully appreciate the necessity of research in a managers position

99.  On line  List five reasons research is important  To you in your career  To a manager

100.  Research is critical to Sport Management  Management in general  Only research can keep you current  Trial & error Management is Folly (and costly)  Will it play in ----?

101.  Your credibility is on the line  Helps in decision making  Helps us find details about our choices  Lets us explore choices with little risk  Helps us see more in each choice  Helps us create other choices  Helps us handle change better  Can be used in any job

102.  Research is the investigation of a particular topic  using a variety of ▪ reliable, ▪ scholarly resources.  Usually to answer a question or questions  The three major goals of research are  establishing facts,  analyzing information,  and reaching new conclusions.

103. The three main acts of doing research are ▪ searching for, ▪ reviewing, ▪ and evaluating information.

104.  Don’t you expect professionals to be up to date?  Finance and investment  Doctors  Lawyers  Auto mechanics  Airline pilots  Sport management (and management) is no different from other professions

105.  What areas do Managers need to be current?  Human resources  Marketing and organizational development  Leadership  Trends in their industry  Competition  The economy

106.  Would you drive a car that had not been fully tested by the manufacturer before buying?  Would you fly in a new aircraft that had never been test flown?  Would you try a medicine that had not gone through field testing and study?  Would you want to buy a hand held device that had not been tested?

107.  Other examples of what you probably want tested  Helmets  Running shoes  Baseball bats  Hockey sticks  Other sports equipment

108.  Often ideas are implemented without testing  However, trial and error can be expensive  We all use trial and error  But why if an alternative is available?  Why do “trial and error” on purpose?  Why not ▪ Gather information about question/topic ▪ Make decision on sound judgment

109.  Read page 420  Trial and Error Management  You need to know if---  in book

110. 1. Why is Trial and Error Management Folly? 2. What in management are all derived from research? 3. What is the point in asking the question – 1. Will it play in our area?

111.  Where in your life do you conduct research? Example: Checking out colleges  List three examples of where research is used in your life and what you do to conduct that research

112.  First and foremost---  What is the question? ▪ Formulate and pose clear cut questions  To be good in decision making questions must  Precisely address topic to be researched  Answers must relate to needed information

113.  Address questions and gather information without bias  Through tenacity  Through experts  Through experience/intuition  Through science ▪ Empirical evidence ▪ Data

114.  Question Construction  Read page 422 to 424  Planning Useful Results  What is Economic Impact Analysis? Why is question construction so important?

115.  Remember  Capital resources are scarce  Time is scarce and equates to money  Better to know going in the chance for success  Vs. spending scarce resources and losing money  Economic Impact Analysis/Study can help preserve scarce capital

116.  Research is very vital to our everyday decision making.  It arms you from wrong information  Saves time and money.  It is important to your success  as you take on life's challenges  and career decision making.

117.  Economic Impact Study  12 points 1. What is an Economic Impact Study? 2. What are four reasons to conduct an economic impact study? 3. What is a basic multiplier effect and the two main components (hint we talked about how $1 spent ripples through an economy)  Example Example  Find an Economic Impact study

118.  Find three different Economic Impact Studies relating to sports or entertainment  List all three impact studies and where you found them  1. Summarize one study  2. What was the key question?  3. What were the conclusions?

119. Chapter 4.3

120.  All teams have an extensive involvement with the local community  Teams support and help create/fund local organizations. Players do the same

121.  All sports teams demonstrate a commitment to the community. Many organizations have paid positions for a community relations coordinator.  Use a kids club for community involvement  Teams organize charity events around larger events.

122.  What do you think/believe is the impact on sports teams having community involvement?  Economic?  Social?

123. Chapter 4.4

124. GOALS  Explain the various types of organizational structures.  Show the importance of branding

125.  Why is the structure of the business or organization a vital part to success?

126.  The organizational structure highlights different business departments and the personnel in which they exist.  This relationship influences the lines of communication

127.  Trace all authorities and responsibility in a direct line from top executives down to the lowest employee level.  A president or CEO has direct authority over all work in a line organization

128.  In a line organization, top management has complete control, and the chain of command is clear and simple. Examples of line organizations are small businesses in which the top manager, often the owner, is positioned at the top of the organizational structure and has clear "lines" of distinction between him and his subordinates.

130.  Unity of command- employees report to only one supervisor at a time.  Span of Control- is the number of employees that a manager supervises directly.

131.  The line-and-staff organization combines the line organization with staff departments that support and advise line departments

133.  This form is ideally suited for companies, such as construction, that are “project- driven”.

135.  Team Organizations- permanent  Self-directed work teams not permanent

136.  As competition increases customers expect increased quality and service. The organization becomes even more important

137.  Centralized Versus Decentralized:  The terms "centralized" and "decentralized" are important management concepts. Often, they are used to refer to the distribution of authority and decision making with in an organization.

138.  Have a few top managers who plan and make decisions. Sometimes larger organizations have communication problems. There can be an overabundance of rules.

139.  Divides businesses into smaller units.  Divided by business functions.

140.  Few levels and has improved communication

141. Chapter 4.4

142.  What is a brand?

143.  Brand Marketing is the process of creating a perception that separates an organization from its competitors. A name and a brand is an important part of increasing sales

144.  Selling additional products to customers beyond the initial purchase is known as upselling.  Up selling is a result of you purchasing products beyond your original intentions.  The key is the additional revenue stream.

145.  Brand Marketing and upselling stress the importance of synergy.  Synergy can also be the strength developed working with partnerships.