Transcript Chapter 13
Chapter 13 Sports and Entertainment Legal Issues 13.1 Laws 13.2 Labor Unions 13.3 Agents and Contracts Sports and Entertainment Marketing © Thomson/South-Western Winning Strategies A Perfect Match Sanders Morris Harris Group paid $5 million for a 50% interest in Select Sports Group. The combined group offers services in: salary/contract negotiations financial planning This new group has the resources to expand. Major League Baseball clients National Basketball Association clients Chapter 13 Slide 2 Sports and Entertainment Marketing © Thomson/South-Western Lesson 13.1 Laws Goals Discuss how laws impact sports and entertainment marketing. Explain copyright law. Chapter 13 Slide 3 Sports and Entertainment Marketing © Thomson/South-Western Terms franchise broadcast flags copyright laws intellectual property royalty Chapter 13 Slide 4 Sports and Entertainment Marketing © Thomson/South-Western THE LAW In 1966, Congress allowed two exemptions from the Sherman Antitrust Act to allow the formation of an expanded NFL. Congress also allowed the owners of the merged leagues to form a cartel. Chapter 13 Slide 5 Sports and Entertainment Marketing © Thomson/South-Western Governing Sports and Entertainment The laws governing sports and entertainment are designed to protect: players celebrities producers promoters investors Chapter 13 Slide 6 Sports and Entertainment Marketing © Thomson/South-Western franchise an authorization from local governmental agencies to sell services in a given area Competition tends to drive prices down and improve the quality of service for customers. Chapter 13 Slide 7 Sports and Entertainment Marketing © Thomson/South-Western The Broadcast Flag Rule broadcast flags digital bits that can be imbedded in digital programming to prevent programs from being recorded and redistributed In 2005, a federal court ruled that the FCC could not regulate equipment, only communications. Chapter 13 Slide 8 Sports and Entertainment Marketing © Thomson/South-Western The major TV networks are working to add the use of broadcast flags into pending federal laws. Chapter 13 Slide 9 Sports and Entertainment Marketing © Thomson/South-Western Federal Laws Federal laws that have had a major impact on the sports and entertainment industry include Sherman Antitrust Act (1890) Clayton Act (1914) National Labor Relations Act (1935) In 1998, Congress passed the Curt Flood Act to give baseball players more protection. Chapter 13 Slide 10 Sports and Entertainment Marketing © Thomson/South-Western What are two general purposes for laws governing sports and entertainment? Chapter 13 Slide 11 Sports and Entertainment Marketing © Thomson/South-Western WHO HAS THE RIGHTS? copyright laws protect the unique work of the originator within the geographic boundaries to which the laws apply Chapter 13 Slide 12 Sports and Entertainment Marketing © Thomson/South-Western intellectual property the unique works of writers, artists, and musicians that can be protected under copyright law royalty payment to the owner of copyrighted work for the use of their copyrighted material fixed the work must be recorded on a permanent medium Chapter 13 Slide 13 Sports and Entertainment Marketing © Thomson/South-Western All material available over the Internet is protected by copyright law. Chapter 13 Slide 14 Sports and Entertainment Marketing © Thomson/South-Western U.S. Laws U.S. copyright laws are not enforceable in other countries except where the U.S. is part of an international copyright convention. Countries with high levels of piracy are: China Russia Chapter 13 Slide 15 Sports and Entertainment Marketing © Thomson/South-Western Legal Listening The Recording Industry Association of America (RIAA) regards file sharing as theft and has begun to aggressively prosecute violators. Chapter 13 Slide 16 Sports and Entertainment Marketing © Thomson/South-Western Consumer-oriented companies like Apple Computer are helping the music industry rethink its distribution channels and find ways to please customers while protecting profits. Chapter 13 Slide 17 Sports and Entertainment Marketing © Thomson/South-Western What do copyright laws protect? Chapter 13 Slide 18 Sports and Entertainment Marketing © Thomson/South-Western Lesson 13.2 Labor Unions Goals Explain the need for salary caps. Describe the financial and public relations impacts that strikes may cause to a sport. Discuss owner-labor relations and the impacts of labor unions. Chapter 13 Slide 19 Sports and Entertainment Marketing © Thomson/South-Western Terms collective bargaining collective bargaining agreement salary cap Chapter 13 Slide 20 Sports and Entertainment Marketing © Thomson/South-Western ORGANIZED LABOR players’ associations the labor unions of athletes in professional sports collective bargaining when a group of employees join together as a single unit to negotiate with employers Chapter 13 Slide 21 Sports and Entertainment Marketing © Thomson/South-Western Bargaining Rights collective bargaining agreement (CBA) negotiated by the players’ association covers all league players includes salary ranges, contract length, and operating rules Chapter 13 Slide 22 Sports and Entertainment Marketing © Thomson/South-Western Topping the Salary salary cap a maximum amount that a team can spend on players’ salaries Chapter 13 Slide 23 Sports and Entertainment Marketing © Thomson/South-Western How do players’ salaries influence the financing of professional sports? Chapter 13 Slide 24 Sports and Entertainment Marketing © Thomson/South-Western OWNERS VERSUS PLAYERS When owners and players can not come to an agreement on contracts, strikes can result. Everyone looses out during a strike. Chapter 13 Slide 25 Sports and Entertainment Marketing © Thomson/South-Western Picking Up the Pieces Congress can design laws to control the loss of wages by third-party victims. Chapter 13 Slide 26 Sports and Entertainment Marketing © Thomson/South-Western Winning Back the Fans Despite assorted promotional efforts, it is often hard to win back fans after a strike. Chapter 13 Slide 27 Sports and Entertainment Marketing © Thomson/South-Western Why do labor conflicts hurt the promotion of a sport? Chapter 13 Slide 28 Sports and Entertainment Marketing © Thomson/South-Western LABOR RELATIONS Soccer Success Major League Soccer (MLS) owners are considered business partners structure was designed to keep teams with big audiences from dominating teams in smaller markets Chapter 13 Slide 29 Sports and Entertainment Marketing © Thomson/South-Western Getting Along Labor and management must cooperate if a business is to succeed. Chapter 13 Slide 30 Sports and Entertainment Marketing © Thomson/South-Western Entertainment Labor Unions that represent celebrities are: The Screen Actors Guild (SAG) The American Federation of Television and Radio Artists (AFTRA) Chapter 13 Slide 31 Sports and Entertainment Marketing © Thomson/South-Western How do strikes and lockouts financially affect a sports team? Chapter 13 Slide 32 Sports and Entertainment Marketing © Thomson/South-Western Lesson 13.3 Agents and Contracts Goals Discuss athlete agents, handlers, and advisers. Describe contract law. Chapter 13 Slide 33 Sports and Entertainment Marketing © Thomson/South-Western Terms agent handlers advisers contracts agent contract noncompete clause Chapter 13 Slide 34 Sports and Entertainment Marketing © Thomson/South-Western SHOW ME THE MONEY agent the legal representative of an athlete or celebrity Chapter 13 Slide 35 Sports and Entertainment Marketing © Thomson/South-Western Legally Speaking Most agents for big-name celebrities are either attorneys or accountants. Agents are paid a percentage of the celebrity’s negotiated earnings. Most leagues require the agent to be registered with the league as an agent. Chapter 13 Slide 36 Sports and Entertainment Marketing © Thomson/South-Western Handlers handlers work closely with athletes who are unable or unwilling to police themselves behavioral monitors Athletes need to have a positive public image to stay valuable to their sponsors. Chapter 13 Slide 37 Sports and Entertainment Marketing © Thomson/South-Western Advisers advisers are financial and business counselors help athletes manage their newfound wealth for long-term financial security Chapter 13 Slide 38 Sports and Entertainment Marketing © Thomson/South-Western What are some of the responsibilities of a sports agent? Chapter 13 Slide 39 Sports and Entertainment Marketing © Thomson/South-Western LEGAL AGREEMENTS Contracts That Bind contracts agreements enforceable by law that detail the transaction of business agent contract an agreement in which an athlete allows a person or agency to represent the athlete in marketing the athlete’s ability and name Chapter 13 Slide 40 Sports and Entertainment Marketing © Thomson/South-Western Contracts are enforceable by law when they involve a promise in exchange for something of value. noncompete clause prohibits a person from working in a competing business for a specific period of time Chapter 13 Slide 41 Sports and Entertainment Marketing © Thomson/South-Western Whom do contracts protect? Chapter 13 Slide 42 Sports and Entertainment Marketing © Thomson/South-Western PERFORMANCE INDICATORS EVALUATED Demonstrate effective communication skills. Demonstrate skills in developing a speech that includes an introduction, body, and conclusion. Chapter 13 Slide 43 Sports and Entertainment Marketing © Thomson/South-Western Use appropriate tempo and pitch. Utilize nonverbal gestures as appropriate. Achieve the purpose of the speech. Chapter 13 Slide 44 Sports and Entertainment Marketing © Thomson/South-Western THINK CRITICALLY 1. Why is extemporaneous speaking a valuable skill in the business world? 2. How are amateur, college, and professional sports business issues? 3. Why is the introduction to a speech important? 4. Why should the conclusion of the speech be related to the introduction? Chapter 13 Slide 45 Sports and Entertainment Marketing © Thomson/South-Western