Transcript Chapter 3 Professional Sports

SPORTS AND ENTERTAINMENT MARKETING
CHAPTER
3
Professional Sports
3.1 Big
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to League
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3.2 Attracting a Professional Team
3.3 Agents, Managers, and Ethics
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LESSON 3.1
Big League Sports
GOALS
Discuss the financial impact of
professional sports.
Identify the perks associated with big
league sports.
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Financial Impact
Big league pricing and planning
Financial planning for a sports team
Bringing all the resources together
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Big League Pricing
and Planning
Professional athletes contracts
Corporate sponsorships
Television revenue
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Financial Planning
for a Sports Team
Financial viability for the home city
Increased spending by fans
Increased tax revenues
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Bringing All the
Resources Together
Media support
Marketing
Charitable and other organizations
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Prestige, Power,
Profitability
Perks and payoffs
Political clout
Professional teams and the community
Sociological ties to a professional team
The bottom line
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Perks and Payoffs
Perk—a payoff or profit received in
addition to a regular wage or payment
Company employees receive tickets
Media exposure for owners
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Political Clout
Franchise owners bring millions of
dollars in business activity to a city
Frequently associated with wealth
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Professional Teams
and the Community
Teams bring new jobs to a city
Boost for surrounding businesses
Community service
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Sociological Ties to
a Professional Team
City’s “image enhancement”
Residents feel pride
Wholesome family entertainment
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The Bottom Line
Winning is everything in sports
Special contract incentives for winning
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LESSON 3.2
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Attracting a
Professional Team
GOALS
Describe the distribution process for a
professional sports team.
Explain the process for financing a
professional sports team.
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Getting in the Ballgame
Distributing the game
How distribution is decided
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Distributing the Game
Individual teams are separately
operated businesses
Cartel—a combination of independent
businesses formed to regulate
production, pricing, and marketing of a
product
The league controls the distribution of
the teams
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How Distribution
Is Decided
Region with a large potential customer
base
Subsidies for the team
Owner must have financing
Stadium to attract fans
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Attracting a Sports Team
It takes money
And more money
Cashing in
Another option
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LESSON 3.3
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Agents, Managers,
and Ethics
GOALS
Understand the role of agents in
marketing.
Explain ways that professional sports
organizations and their sponsors
develop an athlete’s character.
Assess the impact of ethical behavior
on an athlete’s promotional value.
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Show Me the Money
Agent—the legal representative of a
celebrity
Athletes won the right to become free
agents
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Polishing the
Marketing Value
Professional athletes ultimately
responsible for their own behavior
National Basketball Association rookie
training program
Illegal behavior may hurt ability to
attract sponsors
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Handlers
Handlers—sponsor-paid individuals
who work closely with athletes who are
unable or unwilling to police themselves
For athletes to remain valuable to
sponsors, they must behave
Neither can afford negative publicity
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Advisors
Financial and business counselors
Advisors keep the athlete and sponsor
together for the benefit of both
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Do Ethics Count?
Ethics—a system of deciding what is
right or wrong in a reasoned and
impartial manner
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Ethics and
Character Matter
Lack of mature adult role models
Frequent news accounts of unethical
behavior by politicians, sports and
entertainment figures, and religious
leaders
Can result in publicity that interferes
with a marketing plan
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