Transcript Chapter 12 Legal Issues For Sports and Entertainment

SPORTS AND ENTERTAINMENT MARKETING
CHAPTER
12
Legal Issues For Sports
and Entertainment
12.1 Laws and Contracts
12.2 Unions
12.3 Licensing
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LESSON 12.1
Laws and Contracts
GOALS
Explain risk management in the
distribution of sports and entertainment
marketing.
Describe the importance of copyright
law to pricing.
Discuss the need for contracts.
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The Law
Managing risk
Liable—legally responsible for damages
Risk—the possibility of financial loss or
personal injury
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Steps to Risk Management
Identify risks.
Estimate the possibility of each risk.
Determine how great the consequences
are.
Determine how to control the risk.
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Control the Risk
Limit the possibility of risk through
planning.
Purchase insurance that transfers the
cost of the risk to the insurance
company.
Transfer liability through a contract.
Cover the risk in the event budget.
Avoid offering the risky event.
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Who Has The Rights?
Copyright laws—protect the unique
work of the originator within the
geographic boundaries to which the
laws apply
Royalty—payment made to the owner
of a copyright for the use of a
copyrighted work
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U.S. Laws
International copyright convention
Celebrity marketability
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Legal Listening
Recording Industry Association of
America (RIAA)
File sharing
Apple’s iTunes Music Store
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Federal Laws
Sherman Antitrust Act (1890)
Clayton Act (1914)
National Labor Relations Act (1935)
Contracts the bind
Contracts—agreements enforced by law
that detail the transaction of business
Contract law
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LESSON 12.2
Unions
GOALS
Analyze the public relations impact of
labor laws on sports.
Assess the financial harm that strikes
may cause to a sport.
Analyze the impact of labor unions on
sports and entertainment pricing.
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Organized Labor
Players’ associations—professional
athletes organized into labor unions
Collective bargaining—a group of
employees joining together as a single
unit to negotiate with employers
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Bargaining Rights
 Minimum and maximum salaries
 Grievance procedures
 Contract lengths
 Rules of operation
 Negotiations with skilled communicators
 Higher salaries
 Higher percentage of revenue from the game
 Increased costs passed along to the fans
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Topping the Salary
Salary cap—a maximum amount that a
team can spend on players’ salaries
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Owners Versus Players
Lock-out
Strike
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Picking up the Pieces
Work stoppages
Loss of revenue for all parties
Congress
Winning back fans
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Labor Relations
 Soccer success
 Single-entity league
 Owners are business partners
 Entertainment labor
 Screen Actors Guild (SAG)
 American Federation of Television and Radio
Artists (AFTRA)
 Union power
 Getting along
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LESSON 12.3
Licensing
GOALS
Explain licensing.
Describe the financial value of licensing
sports and entertainment merchandise.
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Walking Billboards
Reaching agreement
Licensing—giving permission to copy the
logo of a league, athlete, team, entertainer,
film, or TV show for a fee paid to the right
holder of the image
Licensing allows unions to focus on their
primary business
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Worldwide Publicity
Availability of licensed items
New opportunities in Europe
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Getting Licensed
A complete business plan
A sample of drawing of the product
The costs of production and distribution
A marketing plan
The existing distribution channels for
the product
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Easy to Apply,
Hard to Obtain
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Immediate recognition and honor to a
product
Limited number of licenses granted
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Keeping Current
Fashions, uniforms, and team logos
change
Promotional strategies
Changing logo, color, or uniform
Adding creative new items, licensees, and
sales methods
Widening the marketing to the world
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Managing Licensing
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License applications
Selection of licensees
Minimum guarantees
Design handbook and marketing plan
New product lines and number of designs
Approval process guidelines
Design review
Accounting
Counterfeit merchandise
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New Success Story
NASCAR Nextel Cup Series
ten-year agreement
36 championship-point races
23 tracks
19 states
Target market
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Legal Protection
Federal registration as a trademark—
Civil and criminal penalties for violation
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