Introduction to Sports Management

What is Sport?
All forms of physical activity through casual or organized participation. Aimed at expressing or improving physical fitness and mental well being. Results in social relationships being established.
Sports Management
Promoting, organizing, or facilitating any sport or sport related business or product.
Role of a Sports Manager
Primary job to plan, organize, staff, direct, and control within a sport related industry/product.
Factors of Sports Management
Support Units
HR
Technologies
Context
Support Units
Make the production of a given source easier by providing efficient and coordinating activities.
Human Resources
Clients/Customers: service can not be produced without the active participation of customers.
Employees: provide knowledge and help to provide service for customers.
Volunteers: not paid people who are essential component of sport organizations.
Technologies
Coming up with new ideas, inventions, techniques, and materials, due to the innovation of ________________.
Context
External forces sports management has to be aware of: government, culture, community, market conditions, etc.
Leisure
Discretionary use of time spent in activities of personal interest.
Recreation
Voluntary activity that causes a diversion from work.
Sport
Playing cooperative-competitive activity in the form of a game.
Sport Industry Segments
Product Type Model
Economic Impact Model
Sport Activity Model
Product Type Model
Sport performance, production, and promotion.
Economic Impact Model
Sport entertainment and recreation, sport products and services, and sport organizations.
Sport Activity Model
Defines sport industry as the firms and organizations that: produce sport activity, provide products and services to support production of sport activities, and to sell and trade products related to sport activity.
4 Aspects of Sports Management
1. Sport Marketing
2. Sport Enterprise Financial Structure
3. Sport Industry Career Paths
4. Sport as a Social Institution
Sport Marketing
Creating unique products in the sporting industry.
Sport Enterprise Financial Structure
Where revenue is earned. (tv, concessions, parking, taxes, donations, rentals, travel, etc.)
Sport Industry Career Paths
Coaches, athletic directors, event management, marketing, officials, etc.
Sport as a Social Institution
Influential on social activity and identity.
Sports Management Compenticies
Managerial Leadership Skills – Communication
Critical Thinking Skills – Helps to make sound decisions about issues. Based on ethics.
Globalization in Sport
Brings people together, crosses gender, religion, and geographical barriers, exploitation 3rd world countries, migrating athletes, effects on environment.
Business Etiquette
A set of manners that is accepted by a profession.
Modernization
Specialization of athletic skills
development of effective organizational structures
standardization and routinization of sport product
educated citizens on sport
Spaldings 4 Developments
1. Vertical Integration
2. Diversification
3. Modern Management Systems
4.Promotional Activities
1. Vertical Integration
-Horizontal Integration
Attempt to gain control of inputs (backward integration) and outputs (forward integration).
When a company adds new products and services to its structure.
2. Diversification
Adding new products to a companys product mix. (Diversifying the companys product offerings.)
3. Modern Management Systems
The creation of a decentralized organization. Giving employees more responsibility.
4. Promotional Activities
Sport variation, pro athlete advertising, incorporated all society into the sport world, and brand recognition.
Types of Sport Organizations
Public
Non Profit
Commercial
Public Sport Organizations
Includes federal and provincial government agencies for funding.
Non Profit Sport Organizations
Volunteer executives (board of directors) make all of the decisions. Can hire paid staff to help carry out duties.
Commercial Sport Organization
Main goal is to make profit.
Traditional Approach to Organizational Effectiveness
Lack acknowledgement of the complexity of the environment in which organizations operate today.
Dimensions of Organizational Structure
1. Specialization
2. Standardization
3. Centralization
1. Specialization
The division of labour or the extent to which tasks and duties are divided into separate roles. Includes 3 levels of complexity: Vertical, Horizontal, and Spatial.
Vertical Complexity
Number of levels that exist between the top executive and the lowest positions.
Horizontal Complexity
Number of units that exist across an organization.
Spatial Complexity
Number of geographical locations in which an organization operates.
2. Standardization
High degree of formalization leads to a high degree of standardization.
Employees who face similar situations are expected to react in a similar fashion.
3. Centralization
– Decentralization
Leaders and managers at the top level of management make all of the decisions.

When decision making is delegated to lower employees.

Organizational Design
Process by which leaders select and manage aspects of structure and culture.
Mintzburg Design:
1. Top Management
2. Middle Management
3.Technical Core
4. Administrative Support Staff
5. Technical Support Staff
Plan Development Steps
1. Identify goals, objectives and missions.
2. Determine strategic objectives
3. Identify resources to implement strategies
4. Establish a timeline
Organizational Culture and Norms
Shared values and norms that controls organizational members interactions with each other and people outside the organization.
Interscholastic Sport
Boys and girls choose to participate in athletics in high school.
Intercollegiate Sport
Athletics at the college or university level. Potential scholarship dollars.
Professional Sport
Paid Athletes.
Operating Models of Interscholastic Sport
– centralized organizational structure
– decentralized organizational structure
– private schools
– public schools
Centralized Organizational Structure
All decisions controlled by a central administrative unit and carrier down through the chain of command within the organization.
Decentralized Organizational Structure
Respective units of an organization control and carry out decisions although each unit is expected to operate within the organizations guidelines.
Private School
Operate on money received through various forms of funding and donation.
Public Schools
Operate on money received through local property taxes (government).
NCAA
1288 Member institutions
Divisions 1, 2, & 3
Includes 2- Div. 1 subdivisions
“Unofficially” 31 championship
sports
NAIA (291 memberships)
Several smaller associations
(including NJCAA)
CIS
51 member institutions
21 championship sports
CCAA
108 member institutions
12 championship sports
Few other small associations
CIS Mission Statement
To enrich the educational experience of the athlete through national sport program that fosters excellence.
CIS Vision Statement
Destination of choice for Canadian student athletes to pursue excellence in academics and athletics. CIS is recognized as one of the influential leaders in sport Canada.
3 Principles of the Professional Sport Industry
1. Labour
2. Management
3. Governance
Labour Principle
Collective group of athletes in team sports who unionize so they can bargain collectively with the league owners.
Management Principle
Collective bargaining process. Management refers to the collective groups of ownership that is negotiated with the players or labour.
Governance Principle
Made up of professional sport leagues, attempts to regulate but not completely control labour and management.
Interdependence in Pro Sport
Teams depend on one another to stage the games that constitute the product.
League Think in Pro Sport
Teams must recognize the importance of their competition and share revenues to ensure that their competitors remain strong
Luxury Tax in Pro Sport
Tax the teams that spend most on player pay roles; those taxes are then shared with teams who do not have high pay rolls.
Baseball Antitrust Exemption
Prohibits companies from dominating their respective markets in the interstate commercial activity, thus creating a monopoly in which consumers have only one product choice rather than several.
Collective Bargaining
All active league players are in a bargaining unit and for a collective until for negotiating and bargaining with the owners.
Free Agency
Ability of players, after fulfilling a contract to sell their services to another team with limited or no compensation to the team losing the player.
Salary Caps
Ensure parity between large and small market teams as well as between owners whose resources may vary considerably.
Player Drafts
Aim to be equitable system for distributing new talent among all league members.
Revenue Sources for Professional Sports Teams
Media Contracts (Local TV Agreements)
Gate Receipts (Ticket Sales)
Licensing and Merchandise (Grant the right to use team name and logo)
Sponsorship (Association of team/player with a product)
Theoretical Approaches in Management
Scientific Management Approach
Human Relations Management Approach
Process Approach to Management
Scientific Management Approach
Scrutinize the performance of individual workers. Advocates for paying people by the number of units produced or sold rather than by length of time they worked.
Human Relations Management Approach
When Employees believe they are importance they become more cohesive and productive.
Process Approach to Management
Focuses on managing the organization as a whole entity.
Management Functions
Planning, Staffing, Organizing, Directing, Controlling, and Evaluating.
Classifications of Managers
1. Top Level Managers
2. Middle Level Managers
3. Supervisory Level Managers
1. Top Level Managers
Usually responsible for the entire organization
2. Middle Level Managers
Generally responsible for managing department or unit that performs an organizational function and ensuring that the assigned tasks are done efficiently.
3. Supervisory Level Managers
Primary responsibilities are for a single area in a work unit.
Leadership
Process of influencing the activities of an individual or group in effort to achieve a organizational or leader goal.
Different Between Leaders and Managers
Managers focus on efficiency (doing things right)
Leaders focus on effectiveness (doing the right things)
Transactional Leadership Style
Includes 3 types of reinforcement behaviours,contingent reward, active management by exception and leaders attempt to be clear about their expectations of followers.
Non-Transactional Leadership
Extremely passive and does not qualify as a leadership style as those people avoid all forms of leadership.
Transformational Leadership
Practice the four I’s: Idealize, Influence, Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration.
Legitimate Power
Power comes from the leadership or management position that a person holds in the hierarchy. (authority)
Reward Power
Person in the organization who provides rewards to its employees. (benefits, pay raises)
Coercive Power
Person in an organization who provide sanctions , punishments, or threats employees.
Referent Power
Peoples perceptions of the person with power, because of their personality, characteristics, respect, and admiration.
Informational Power
Person has access to information
4 strategies leaders use to manage organizational diversity
1. Reactive: maintain status quo
2. Defensive: Discrimination and fairness perspective
3. Accommodative: Differences celebrated
4. Proactive: Central to the core operation of the organization.
Athletic Conferences
Basic function to establish rules and regulations that support and sustain a level playing field for member institutions while creating in-season and post-season competitive opportunities.