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  Form Utility  Possession Utility  Time Utility  Place Utility  Factors of production  Economic system  Scarcity  Unity of command  Span of control  Proforma  Brand Marketing  upselling

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

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

41.  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 ▪ Allows them 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

44.  Scarcity

46. Chapter 4.3

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

48.  What jobs can be found in sports and entertainment management?

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

50.  Many colleges offer degrees in sports management. (Majors, Minors, and Masters)  Competition comes from everywhere  A degree in the field offers network opportunities and a solid understanding of the product

51.  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

52.  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

54.  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, familiarity with sport economics is beneficial

55. Chapter 4.3

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

57.  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.

58. Chapter 4.4

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

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

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

62.  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

63.  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.

65.  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.

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

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

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

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

72.  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.

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

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

75.  Few levels and has improved communication

76. Chapter 4.4

77.  What is a brand?

78.  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

79.  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.

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