Transcript Chapter 2
Chapter 2 Sports and Entertainment Means Business Sports and Entertainment Marketing © Thomson/South-Western Lesson 2.3 Business Ethics Learning Targets I can define ethics. I can discuss the impacts of unethical behavior. Chapter 2 Slide 2 Sports and Entertainment Marketing © Thomson/South-Western Terms Ethics Principles Chapter 2 Slide 3 Sports and Entertainment Marketing © Thomson/South-Western DO ETHICS COUNT? Ethics a system of deciding what is right or wrong in a reasoned and impartial manner. All businesses should be conducted with integrity, trust, and fairness. Chapter 2 Slide 4 Sports and Entertainment Marketing © Thomson/South-Western Ethics and Character Matter Principles high standards of rules and guidelines. Character Development a progression in behavior - advance from childish behavior to mature behavior (it takes time) Young people need good role models. Chapter 2 Slide 5 Sports and Entertainment Marketing © Thomson/South-Western Common Principles in our society? Don’t Kill Don’t Steal Common Principles for NCAA? Can’t except money from boosters/agents Chapter 2 Slide 6 Sports and Entertainment Marketing © Thomson/South-Western BUSINESS BEHAVIOR People (businesses) should act ethically while pursuing a profit. Athletes (teams) should act ethically while pursuing a victory. Chapter 2 Slide 7 Sports and Entertainment Marketing © Thomson/South-Western Seeking an Advantage Sometimes it is hard to continue to act ethically when you observe people who receive a benefit from acting unethically. PED’s (Performance Enhancing Drugs) Corked Bats Paying or giving gifts to recruits Chapter 2 Slide 8 Sports and Entertainment Marketing © Thomson/South-Western When Being Bad Profits Only fans can really influence the behavior of ethically challenged athletes and celebrities. Chapter 2 Slide 9 Sports and Entertainment Marketing © Thomson/South-Western Effective and Ethical Good decisions are both ethical and effective. Good decisions are the right choices for the long term. Chapter 2 Slide 10 Sports and Entertainment Marketing © Thomson/South-Western DUE TODAY! Assignment Sheet from yesterday. FFFL Week 4 Stats Chapter 2 Slide 11 Sports and Entertainment Marketing © Thomson/South-Western Lesson 2.4 Financial Analysis Learning Targets I can discuss sources of funding and revenue for sports and entertainment businesses. I can list and describe four tools for financial analysis. Chapter 2 Slide 12 Sports and Entertainment Marketing © Thomson/South-Western Terms Return On Investment Forecast Budget Balance Sheet Income Statement Chapter 2 Slide 13 Sports and Entertainment Marketing © Thomson/South-Western IT TAKES MONEY Profit is the primary purpose of sports and entertainment marketing. #1 Goal/Objective of any business is to make a profit. Chapter 2 Slide 14 Sports and Entertainment Marketing © Thomson/South-Western Finding Funding Funding for an event is typically provided by investors. Example Costs – Celebrity Golf Pro-Am Salaries Promotions/Advertising Player Fees Course Fees Chapter 2 Slide 15 Sports and Entertainment Marketing © Thomson/South-Western Return On Investment the income from a venture that is distributed to investors. Payment investors receive for providing financial backing. Chapter 2 Slide 16 Sports and Entertainment Marketing © Thomson/South-Western Money Sources Funds to repay investors are raised through; Ticket Sales Pre-Game Sales and Season Tickets Broadcast Rights TV and Radio Licensing Merchandise and Apparel Facilities signage, parking fees, luxury boxes, concessions Chapter 2 Slide 17 Sports and Entertainment Marketing © Thomson/South-Western WHERE IS THE MONEY? Forecast a plan/report that predicts the expenses to be incurred and the revenues to be received. Note – must always do your homework if you want a successful business/team. Chapter 2 Slide 18 Sports and Entertainment Marketing © Thomson/South-Western Budget a plan for how available funds will be spent. Solid budgets list specifics - Income (money coming in) and Expenses (money going out). Sole purpose of a budget is to control costs so they do not exceed the funds available. Helps businesses/people to allocate money and not spend more than they have. Chapter 2 Slide 19 Sports and Entertainment Marketing © Thomson/South-Western Financial Statements Balance Sheet shows net worth at a specific point in time. (Assets – Liabilities = ) Assets = items of value, cash, property, equipment. Liabilities = amounts owed for purchases made on credit and loans. Income Statement shows revenues and expenses for a specific period of time. Reveals company’s profit or loss. Chapter 2 Slide 20 Sports and Entertainment Marketing © Thomson/South-Western Investor Do Their Homework NOTE – reviewing the forecasts, budgets and financial statements is a must prior to investing. Financial Analysis – Four Tools; 1. Forecasting 2. Budgeting 3. Balance Sheet 4. Income Statement Chapter 2 Slide 21 Sports and Entertainment Marketing © Thomson/South-Western