Transcript Principles & Practice of Sport Management

Chapter 13
Event Management
Introduction
• Sport event management: All functions
related to the planning, implementation, and
evaluation of a sport event
• Requires: Finance/budgeting, risk
management, tournament operations,
registration, volunteer management, and
event marketing
History
• Late 1800s: Focus turned to the professional
aspects of managing sport events because of a
desire to increase profits (Albert Spalding)
• Barnstorming tours: The touring of star athletes
and teams to promote the popularity of a particular
sport
• Emergence of sport management/marketing
agencies—businesses that act on behalf of a sport
property (e.g., IMG)
• Agencies have expanded to incorporate myriads of
functions beyond representing athletes
Top Sport Management/Marketing
Agencies
Corporate
Consulting/
Marketing
Services
Athlete/
Talent
Representation
Property
Representation
and Media Sales
Event
Planning and
Management
1
Octagon
IMG
IMG
SportsMark
Management
Group
2
Momentum
Worldwide
Octagon
Octagon
Bronskill and
Co.
3
Velocity
Wasserman
Media Group
Host
Communications
Jet Set Sports
4
GMR Marketing
and IMG (tie)
Creative Artists
Agency
CSTV
Vivid
Marketing
5
Millsport
Scott Boras Corp.
Raycom Sports
Next
Marketing
Rank
Agency Functions
• Client representation: Acting on behalf of a client
in contract negotiations
• Client marketing: Locating appropriate
endorsement opportunities, booking appearances,
and developing entertainment extensions
• Event development and management
• Meeting increased demand for television
production and development work
• Developing/marketing grassroots programs
Agency Functions (cont.)
• Soliciting corporate sponsorships
• Evaluating the success of events and
initiatives through market research—
implementing mail surveys, focus groups,
on-site surveys, and sponsorship/economic
impact surveys
• Studying impact of sponsorship activities
Types of Agencies
• Full-service agencies perform the complete
set of agency functions (e.g., IMG, Octagon).
• Specialized agencies limit either the scope
of services performed or the type of clients
serviced (e.g., Redmandarin).
• In-house agencies are formations of separate
departments or divisions dealing with event
management within major corporations.
Event Management Functions:
Finance/Budgeting
• Critical to successful sport event management
• Budgeting attempts to predict revenues and
expenses for a particular event
• Zero-base budgeting: Review of all activities and
related costs of an event as if it were the first time
• Cash-flow budgeting: Accounting for the receipt
and timing of all sources and expenditures of cash
Event Management Functions:
Risk Management
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Protecting the organization from anything that
could possibly go wrong and lead to a loss of
revenue or customers
DIM Process: Developing, implementing, and
managing the risk management plan
Waiver and release of liability: form signed by
participants that releases venue from negligence
Purchasing insurance: Provides security to an
event regarding potential financial losses
Event Management Functions:
Tournament Operations
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The nuts and bolts of an event
Divided into pre-event, actual event, and
postevent activities
Pre-event: Determine type of event being
planned and the event’s goals
Script: Specific, detailed, minute-by-minute
schedule of activities throughout the day
Postevent: Activities surrounding completion of
event
Event Management Functions:
Registration
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First time event staff members come into
contact with participants
Registration system: Crucial for making
a good first impression on clientele
Determining information that needs to be
collected and disseminated during the
registration process
Event Management Functions:
Volunteer Management
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Most events cannot be successfully
executed without volunteers
Determine volunteer needs: Numbers,
qualifications, type of work
Recruitment and training
Keep volunteers happy
Event Management Functions:
Event Marketing
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Integrated marketing approach: Corporate
sponsorship, advertising, public relations,
hospitality, ticket sales, broadcasting, Web
site development, licensing/merchandising,
fund-raising
Long-term strategic planning to manage
functions in a consistent manner
Event Management Functions:
Event Marketing (cont.)
Corporate Sponsorship
• Increase in number of events has led to an
increase in competition for sponsors
• Events have become increasingly reliant
on sponsorship
• Either sold by the event (in-house) or by
an outside sport marketing agency (IOC)
Event Management Functions:
Event Marketing (cont.)
Advertising
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Advertising expenditures are a very minor
portion of an event’s expenses
Advertising sought through one of two means:
(1) media sponsors or (2) attachment to
corporate sponsor advertisements
Nearly all successful events sell sponsorships to
media outlets
In-kind sponsorships: Event provides the
typical sponsorship benefits in exchange for a
specified amount of free advertising space
Event Management Functions:
Event Marketing (cont.)
Public Relations
• Generating free publicity is important
• Must develop a good working relationship
with the members of the media (e.g.,
through hospitality)
• Event must be creative to attract interest
Event Management Functions:
Event Marketing (cont.)
Hospitality
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Providing a satisfying experience for all
stakeholders of the event
One way of improving event loyalty
Hospitality rewards and builds relationships with
current customers; generates business from new
customers; rewards employees for good
performance; rewards suppliers for excellent sales
Hospitality is one of the 10 most common
functions of a sport agency
Event Management Functions: Event
Marketing (cont.)
Ticket Sales
• Sporting events rely on ticket
sales to varying degrees.
• For medium-sized and smaller
events, ticket sales are a less
effective way to generate
revenues.
• Ability to charge admission is
dependent on where the event
occurs and how easily the event
manager can control entry to the
event (e.g., golf).
© Corbis/age fotostock
Event Management Functions:
Event Marketing (cont.)
Broadcasting
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Radio/television broadcasts add credibility to an
event and provide increased exposure, benefiting
sponsors.
If a broadcast outlet does not feel an event will
be attractive to a large audience, limiting the
ability to sell advertising time, then the outlet
will not be willing to pay a rights fee to televise
or broadcast that event.
Sport organization have begun to look at online
sites (Youtube, etc.)
Event Management Functions:
Event Marketing (cont.)
Web Site Development
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Imperative that any event, no matter the size, has
a Web site to provide important information and
promote the event
Web site’s URL should be the name of the event
or something that is very close to the name of
the event
Web site should provide basic event details:
When/where the event is occurring, how tickets
can be purchased for the event, online ticket
purchase option, news releases, and so forth
Event Management Functions:
Event Marketing (cont.)
Licensing/Merchandising
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Sale of items that display an event’s name or
logo: Usually only beneficial for large, televised,
multiday events
To cover the costs of inventory, staffing, and
space allocation, significant sales must be
achieved for the event to make a profit
Event Management Functions:
Event Marketing (cont.)
Fund-raising
• Not-for-profit events can
use fund-raising as a means
of revenue generation.
• Most often, not-for-profit
events center around
raising money for some
charitable enterprise.
• Cause-related marketing
efforts by corporations are
another instance in which
fund-raising may be
appropriate.
© Thomas Weibenfels/ShutterStock, Inc.
Career Opportunities
• The event management field offers one of the
most fertile areas for career opportunities.
• To be successful in event management, one must
be prepared to work long and typically
inconvenient hours.
• Careers in event management involve working
with one of three types of organizations: sport
management/marketing agencies, events, and
charities.
Key Skills
• Education – sport management programs with
marketing, event management, business, finance
• Internships – usually need internships for
experience and companies hire new workers from
intern pool
Current Issues: Niche Sports
• Unique and appealing to a distinct segment
of the market
• Can be good for sponsorships to target
specific market
• Usually lack exposure and corporate
support
Current Issues: Consolidation of
Agencies
• Benefits of vertical integration created
significant consolidation among sport
management/marketing agencies.
• Larger, more diversified sport and
entertainment companies purchased sport
management/marketing agencies (e.g., SFX
Entertainment).
Current Issues: Economic
Recession
• Changed approach of sponsorships in sports
• Finance and auto industry were major
sponsors, but hit hard by recession
• 2009 sponsorship spending fell by $100M