-Birthplace of modern sport and sport management
Development of sport clubs with limited membership
Continued club evolution with standardizing of rules, settling disputes, and organizing schedules
No admission charged
-Local club system initially
Racing existed for entertainment only, not financial gain; prestige more important
Rail system allowed horses to compete nationally
-Desire of owners to breed and train fast horses and the increasing complexity of gambling lead to more complex club system
-Settled disputes, established rules, determined eligibility, designated officials, regulated breeding, and punished unscrupulous participants
-Organized, sponsored, and promoted local events
-Met need for a strong national governing body to establish rules, standards, and a mechanism for resolving disputes
-Served as model for wider sport management practices in England
-First Modern Olympics in 1896, but the revival can be traced back to at least 1850 with club-based Olympic festivals in England
-Founder Pierre de Coubertin, inspired by English revivals and Victorian notions of character building and peace movements through sport, introduced concept of amateur Olympic Games every 4 years
No longer local, but international
-Clubs organize youth teams and academies, adult recreational leagues, and social events for members
-Large built-in memberships and loyal fan bases
-Characterized by nonprofit status and exclusive membership
Augusta and male-only membership
-Change from European club system to U.S. league system
Lack of aristocratic tradition and prohibition against gambling
-League structure arose out of harness racing, sport of the common person
-Better spectator sport than thoroughbred racing
Sprint vs. 4-mile race; horses could compete daily, large field of competitors
-Managed by track owners and race promoters
Willing to create spectator interest for sport
-Issues of race fixing, management lacking credibility led to loss of popularity
-Cincinnati Red Stockings: First pro team
-Some teams in the league paid and some did not—created controversy
-1871: Creation of National Association of Professional Baseball Players
-Importance of “breakeven” financial interests of individual clubs
-1876: Took over management of National League of Professional Baseball Players
-Believed stability achieved only if teams were run like businesses
-Teams should compete against each other and not collude
Understood that without strict rules forcing honest competition, collusion would occur
-Owners must take some financial risk:
Abandoning seasons early to prevent losses in short term eroded long-term faith of public
-Owners must field competitive teams to be profitable.
-Integrity of baseball was suspect as long as the players’ honesty was questionable:
Gambling prohibited and ticket prices raised
-Honoring of contracts (reserve system)
-Favorable media attention
-Appealed to fans’ loyalty and pride in their cities
-Early form of revenue sharing
-Rules that distributed talent
-Audience has changed
Public’s perception of locus of honest effort resides more with the players than with ownership structure
-Single-entity structures: MLS, MLL, AFL
-Professional leagues failed to capture public interest or attract golf professionals.
-Attempts to generate gate revenues at tournaments failed.
-Stability of tournaments was achieved when prize money was put up by companies and corporate sponsors.
-Golf tournament was medium through which celebrity, politician, manufacturer, charity, town, or product gained exposure
-Used athletes and golf tournaments to sell advertising space to the public
-Bing Crosby and Bob Hope created charity golf tournaments in pro-am format for WWII fund-raising
-Charities encourage volunteers and good publicity for tournaments
-Golf equipment manufacturers paid Corcoran to create golfer association and arrange tournaments using prize money as player payments to reduce cost of hiring player representatives
-1950s press changes policy and begins naming tournament sponsor not location = free publicity
-PGA Tour viewed as private group
Set rules of eligibility
-Associations not as exclusive as private clubs (Casey Martin)
-Trend moving away from nonprofit private associations and toward marketing agencies and/or broadcast media
Ancient Greek Games for women
Christine Grant and Judy Sweet
-National Intramural-Recreation Sports Association (NIRSA):
Annette Akins, Mary Daniels, Juliette Moore
-Sport management industry:
Effa Manley of Newark Eagles (Negro League)
Billie Jean King (WTT, WSF)
Lesa France Kennedy (NASCAR)
Stephanie Tolleson (IMG)
Buffy Filipell (TeamWork Online)
1957: Walter O’Malley
1966: James Mason; first master’s program at Ohio
1971: University of Massachusetts
More than 200 programs nationwide
North American Society for Sport Management (NASSM)
Sport management degree programs throughout Europe
To get workers to do what the manager wants in an efficient and cost-effective manner
-Management theory evolved through two phases
Human relations movement
-Today: Use of organizational behavior
Study and application of the human side of management and organizations
-Workers should not be doing the same job different ways, but instead in the “one best way” (most efficient way)
-Manager can get workers to perform job the “best way” by enticing them with economic rewards
-Includes dealing with modern changes:
-The lasting competitive advantage within organizations comes through human resources and how they are managed.
-Areas include planning, organizing, leading, and evaluating.
-This list is not comprehensive because organizations are constantly evolving.
-Setting course of action for the sport organization
-Organizational plans should change and evolve
Should not be viewed as set in stone
-Managers must participate in both short-term and long-term planning
Manager determines what types of jobs need to be performed and who will be responsible for doing these jobs
-Develop an organizational chart
-Develop position descriptions
-Develop position qualifications
Selection, orientation, training, and development of staff members
Involves assigning responsibility and accountability for results to employees
-Managers must manage any differences or changes that may take place in the organization
-Managers handle conflicts, work problems, or communication difficulties; stimulate creativity; and motivate employees
-Progress is accomplished by the employees effectively carrying out their duties
-Establish reporting systems, develop performance standards, compare employee performance to set standards, and design reward systems
-Interaction with unique clientele
-Must be able to treat all people fairly, ethically, and with respect
-Answering each question professionally and courteously wins a lifelong fan.
-Sport managers must be able to treat all people fairly, ethically, and with respect.
-Sport managers are often asked to give speeches.
-Sport managers must be able to write in many different styles (press release, brochures, etc.
Differences between individuals, including age, race, gender, sexual orientation, disability, education, and social background
-Women and minorities still underrepresented in managerial positions in the sport industry
More women, people of color, and people with disabilities are needed at managerial level in the sport industry
Recruitment, screening, selection, retention, promotion, and ending employment
For example: customer data collection and advanced ticket systems
-Usage of technology in the workplace
For example: videoconferencing and multimedia presentations
-Computerized ticketing systems such as M-ticketing, PACIOLAN, and PROLOGUE
-Online surveys used for data collection
-MLB Media Tracker and Fan Tracker
-Need to define problem, generate alternatives, evaluate alternatives and select best alternative
-Participative decision making
Employees or members of the organization participate in the actual decision-making process
-Group decision making should be used when:
more ideas need to be generated, there is a great deal of information to share, alternative perspectives are needed, and the fairness of the decision is highly valued
-Four types of political tactics used
-Sport organizations have formal (e.g., athletic director) and informal (e.g., coach) leaders.
-Learning who the informal leaders are in an organization can help new sport managers understand politics of a sport organization.
Plan for resistance, involve employees, and provide additional training and communications
-Managers should select priorities for change.
-Managers should deliver early tangible results.
-Managers should publicize successes to build momentum and support.
-Managers must make sure top management sponsors are fully committed to implementation.
-Allows you to meet and interact with people outside of office you work in, thus increasing your network
-Shows your employer your commitment to working in sport industry
Maslow’s hierarchy of needs, Herzberg’s two factor ideas, Vroom’s expectancy theory, and Adam’s equity theory
-Katzell and Thompson:
Appropriate motives and values; attractive and consistent jobs; defined work goals; appropriate resources and supportive environments; performance reinforced; harmony
Perform self-study to evaluate effectiveness of recruitment and employment of diverse individuals
Understand how expanding technology will improve customer relations and service
-International sport management
Be aware that domestic models of sport governance cannot be unilaterally imposed on other cultures
-New management theories
Empowerment and emotional intelligence
hard salary cap
revenue sharing ALL ARE AKA ANSWER IS NONE OF THE ABOVE
From a voluntary assumption of the duty of care
From a duty mandated by a law
From all of the above
The defendant breached the duty of care
The defendant’s actions were the actual and proximate cause of the plaintiff’s injury
There is evidence of monetary damages
B.Professional sport leagues’ collective bargaining agreements are exempt from antitrust law under the labor exemption.
C.National Football League is the only professional sport league exempt from antitrust laws.
The American Camping Association
The U.S. Olympic Committee
Knowledge of injury and physical training
analysis of compensation, and consideration of employee wellness and employee relations AND performing a job analysis and writing position descriptions
state or U.S. Constitution equal protection clauses
state equal rights amendments
a combination of all of the above
Create, Promote, Deliver goods to consumers
Obtain the best possible understanding of what consumers want
Includes the marketing of
products, such as equipment, apparel, and footwear
services, such as skill lessons or club memberships
entities, such as leagues, teams, or individuals
Founder of IMG; first sport marketing firm in 1960s
Now international and broad categories
Led to proliferation of sport channels
ESPN (ESPN2, etc.)
Big Ten Network
The acquisition of rights to affiliate or directly associate with a product or event for purpose of deriving benefits related to that affiliation
Albert G. Spalding
Use of the word official
Built IMG through golfer Arnold Palmer
Nike and Air Jordan
Packaging of the Nike brand, product, advertising, and athlete into one personality
Team must provide reasons other than the game itself for people to attend and support franchise.
Create the greatest joy for the greatest number of people
Ensure a pleasurable attending experience
Credited with formalizing customer research in sport industry; audience audit, intercepts (one-on-one interrviews), focus groups
On-site interviews in heavy traffic areas such as malls
San Jose Sharks logo and colors changed as a result of pass-by interviews
Product (actual event vs. experience)
Price (depends on value or perceived value)
Place (preselling and exceptional locations)
Promotion (advertising, personal selling, publicity, and sales promotion, public relations)
Growth of Hispanic population, ESPN Deportes
Generation Y and action sports
Enhanced long-term loyalty in sport fans
Sponsorship opportunities resulting from ability to tap into strong emotional connection between a fan and his or her sport team
Begins with customer and encourages integration of the customer into the company
Builds relationships through communication, satisfaction, and service
Loyal fan gift rewards, special access to players, and special access to information
Increasing evidence that sport fans are not willing or able to pay such prices
Do not see the value of attending a game
Significant challenge for sport marketers is to develop relationship marketing strategies
Key challenge for anyone in team sport marketing is increasing revenues for sport teams
Managing database by developing and delivering integrated marketing programs
Including promotions and sales offers to targeted consumer segments
Database marketing is often an integral factor in a company’s decision to sponsor an event
Added technological options for the next generation of sport fans
Marketplace cluttered for sponsors
Rise in number of athletes and events, increase in number of advertising opportunities available
Heightened focus on marketing mainstream sports to youth; increased challenge for sport entity to demonstrate how sponsor will benefit from a sponsorship
Cluttered marketplace: Imperative that corporations identify sports, events, or athletes that have unique images
Corporate and athlete ethical scandals
Corporations are more discerning in ways that they spend their sponsorship and endorsement dollars; they may now spend more on nonprofit organizations and causes.
Generally refers to two primary activities of an organization:
How an organization generates the funds that flow into that organization
How these funds are allocated and spent once they are in the organization
Difference between financial inflows (Revenues) and outflows (Expenses)
Assets: Anything an organization owns that can be used to generate future revenues
Teams can fund or “finance” assets in many ways:
Owners’ Equity: The amount of their own money owners have invested in the firm; stocks
Debt: Amount of money an organization borrows; bonds
College sports are nonprofit. Use budgetary transfers from the university and other innovative methods
Return on Investment (ROI): Expected dollar-value return on each alternative investment
Future benefits of investment cannot be known at time of investment
Owners must decide how much they will finance with their own money and how much with borrowed money
Debt carries more risk than equity does
The existence of one franchise benefits the others.
Sport leagues are considered monopolies
They face no direct competition from rival leagues
Gives them greater bargaining power when dealing with stakeholders (e.g., players, broadcasters, corporate sponsors, and local governments) and allows them to potentially charge higher prices
Allows them to earn much higher profits than would otherwise be the case, as well as enact financial policies (e.g., salary caps, revenue sharing) that would not be possible with direct competition
Only legal monopolies in United States
The NFL has had the most competitors over the years including the American Football League during the 1960’and the United States Football League
College athletics, taken as a whole, continues to be unprofitable.
The revenue-generating abilities of football and men’s basketball are insufficient to compensate for deficits of other sports.
Entertainment value connected to “uncertainty of outcome”
Differences in market sizes cause differences in revenue potential, which cause differences in ability to pay players, which cause differences in on-field performance
Salary cap, revenue sharing, luxury tax
Application of existing laws to the sport setting
A few laws specific to sport industry (regulation of boxing and sport agent industries, Title IX, etc.)
When a dispute arises over the interpretation of a rule or regulation, sport lawyers often represent both the governing body/association and the participant(s)
Involvement of sport lawyers occurs because sport organizations hire lawyers to draft their rules and regulations; thus, need lawyers to interpret them
Many of earliest U.S. lawsuits in sport industry involve professional baseball.
Players challenged owners on reserve system that prevented players from free agency.
Owners challenged each other on business of sports.
First sport law course was offered in 1972 at Boston College Law School.
Considerable growth over last 40 years caused by:
Legal profession more specialized
Amount of litigation and diversity of cases in sport industry have increased as more people rely on the courts to resolve disputes
Many athletic associations have adopted own governance systems with rules, regulations, and procedures that are based on the U.S. legal system
Skills in legal education are beneficial to many positions in sport industry
Keeping problems from arising
Having action plan to follow when problems do occur
Develop, Implement, and Manage risk
Include all employees in the three-stage process
Historically, courts decline to overturn the rules of voluntary athletic organizations unless certain conditions exist
Plaintiff’s interest is to keep rule from applying or to force athletic association to apply it differently
Plaintiffs seek injunction:
An order from the court to do or not do particular action (i.e. 1. monetary damages 2. injunctive relief -force the court to apply the rule differently)
Court will intervene if athletic organization:
Violates/misapplies its own rule
Violates a statute (typically statutes command or prohibit something)
Violates public policy
Violates constitutional law and it’s a state actor
Acts as arbitrator or in a capricious manner
Exceeds the scope of its authority
An injury or wrong suffered as the result of another’s improper conduct
Tort law provides monetary damages to compensate an injured person (plaintiff).
Intentional torts occur when a person purposely causes harm to another or engages in activity that is substantially certain to cause harm.
Gross negligence occurs when defendant acts recklessly, and fails to realize harm caused
Negligence is an unintentional tort and is the most common tort that sport managers encounter
They commit an act/omission causing injury to a person to whom they owe a duty of care
Negligence imposes a duty to refrain from careless acts
Plaintiff must show that sport manager (defendant) owed plaintiff a duty of care and breached it
A duty of care arises from relationship between plaintiff and defendant (e.g., arena operator and fan).
When a duty is breached and that breach is the cause of an injury for which there are monetary damages
Purpose of agency law is to establish duties that principals and agents owe each other.
Agency law is an important component of the player representation industry.
Fiduciary duties inherent in principal-agent relationship
Fiduciary – to act with trust and loyalty
Principal’s fiduciary duties:
1. To comply with a contract if one exists
2. To compensate the agent for his or her service
3. To reimburse the agent for any expenses incurred while acting on the principal’s behalf
Agent’s fiduciary duties:
1. To obey
2. To remain loyal (disclose conflicts of interest)
3. To exercise reasonable care
4. To notify
5. To account (for information and finances on a reasonable basis)
Employer need not be negligent to be liable
Three defenses available:
Employee was not negligent
Employee was not acting within scope of employment
Employee was an independent contractor
Sport managers negotiate and enter into contracts regularly with or without legal advice.
A valid contract must have the following elements:
Offer and acceptance (mutual assent)
Legality (subject matter legal and not against public policy)
Breach: Once a contract is made, if a promise is broken it is considered a breach
Full (entire contract) or partial (some provisions)
Remedy usually money, can be injunction
Waiver and releases: contract in which participant gives up right to sue
Waiver signed before participation in activity
Release signed after participation in activity
Legality and enforcement varies in different jurisdictions
Four constitutional challenges arise in sports:
The right to be free from unreasonable searches and seizures
Invasion of privacy
In some cases a private entity is so enmeshed with the public that courts apply constitution to private entity.
When a private entity meets this standard, it is called a state actor.
Athletic associations may have an impact on liberty and property interests protected by due process clauses in Fifth and Fourteenth Amendments
Right to play, right to be free from stigma, right to work and earn salary, and so forth
Standards of review for discrimination
Strict scrutiny: On the basis of race, religion, or national origin
Legitimate interest: On the basis of gender; discrimination can occur only if legitimate interest for doing so exists
Rational basis: Discrimination on any other status or classification
Sport example: The act of taking the athlete’s urine or blood for drug testing
Several courts determined that private athletic associations (such as NCAA) or public high school drug testing programs do not violate state constitutional rights
Plaintiff must establish that invasion is substantial and in area for which there is an expectation of privacy.
Sport cases most often arise as challenges to drug testing programs.
U.S. Supreme Court has held drug testing of high school athletes is not invasion of privacy (1995).
Drug Testing usually addressed in collective bargaining
In athletics, cases focus on three areas:
Proportionate scholarship distribution
Equal treatment, benefits, and opportunities given in specific program areas
Degree to which educational institution has equally and effectively accommodated the interests and abilities of male and female students
Promote competition in the free market; break up business trusts and monopolies and prohibit anticompetitive activity by businesses
Application of antitrust laws to leagues left indelible mark on structure and nature of labor-management relations
Just one major professional league for each sport; thus, their domination of the market gets challenged as monopolies violating the Sherman Act
1922 Supreme Court Federal Baseball decision granted MLB antitrust exemption
Curt Flood Act (1998): Legislative response to Federal Baseball
allows MLB players to sue their employers under the Sherman Act
Restrictive practices are exempt from antitrust law when those practices have been negotiated in a collective bargaining agreement (i.e. hours, wages and other terms of employment).
Sport Broadcasting Act of 1961 exempts leagues from antitrust laws when pooling rights to enter into national broadcasting rights
In past, NCAA free from antitrust
As college and high schools sports grow and bring in more money, face cases
Sport managers’ decisions about ethical dilemmas tend to fall under greater public scrutiny
Ethical analysis involves a systematic process of reasoning:
Weighing pros/cons of two or more seemingly valid choices that reflect equally cherished values
Code of conduct outlines and explains the principles under which an organization or profession operates.
Codes of conduct should be clear and straightforward and encourage employees to understand the goals they are trying to accomplish
Social practices depend on people upholding certain baseline values.
Morals seen as coming from higher order or common sense
Many moral values in society are codified in laws, but moral behavior cannot always be legislated and people cannot be forced to act morally.
Moral precepts are universal—applicable to all circumstances.
What is moral depends on the situation.
Commercial moral rules
Rules of the marketplace guide activities such as sales and marketing.
Noncommercial moral rules
Occupations demand loyalty to an oath of office or professional standards to guard against selling out.
Process of making a moral choice, of deciding what is right and wrong, involves understanding the parameters of acceptable behavior in the context of one’s multiple roles in society.
An immoral decision can lead to systemic corruption that can destroy a sport enterprise.
Corruption usually occurs when people hop from one set of moral precepts to another.
One feature of corruption is that it is systemic.
Periodically need to assess whether our current practices are in keeping with values that underlie a just society
Moral and ethical principles evolve over time
Organizations can help individuals make moral choices by establishing standards, encouraging self-examinations, providing support structures, and enforcing codes.
Ask employees to think about hypothetical ethical dilemmas
Accreditation programs (NCAA)
Employees should be encouraged to get together to discuss where and how they face specific problems.
The process takes pressure off individuals and clarifies issues at stake.
If people understand that corruption comes with certain risks, they are less likely to engage in immoral acts.
Discipline must meet two criteria:
It must be (1) meaningful and (2) enforceable.
Formally organized youth educational athletic participation did not emerge until mid-19th century.
Schools and other agencies promoted sport participation to aid in solving broad social problems such as ill health and juvenile delinquency.
Public schools were slow to embrace value of exercise and play, but private schools recognized value much earlier.
Students organized games at college level.
Athletics were incorporated into school curricula (New York, Illinois, Wisconsin).
Boston-area schools formed Interscholastic Football Association in 1888.
Educators touted athletics as tool to prepare for rigors of modern life and democracy and to assimilate immigrants into American culture
Promoted child welfare by advocating for increased playground space
Promoted formalized public school athletics as an antidote to regimented physical education curricula
Period during and just after World War I
School sports for males were promoted as a source of physical training for armed forces
Sports resulted in a boost in school retention and graduation rates
Athletics became entrenched in schools and educators took control of athletics from students
Dr. Dudley Sargent, James Naismith, and Amos Alonzo Stagg
Significant contributions toward meeting instructional and curricular development needs
1930-1950s: YMCA branches were opened in suburban areas that allowed female members
Financial calamities of Great Depression of 1930s launched unprecedented governmental involvement in recreation
Encompasses 50 state high school athletics and activity associations, as well as District of Columbia, Bermuda, Guam, St. Croix, St. Thomas, St. John, and 10 Canadian provinces
Coordinates official certification
Issues playing rules; holds national conferences and competitions; acts as advocate/lobbying agent
One representative from each association
Board of Directors
12 member panel elected from National Council
Oversees budgets, committees, exec. Director
50 people; day to day operations
Organize state championships and competitions in athletics and activities
Final authority in determining athlete eligibility
The scope of activities, the size of full-time administrative and support staff, and the number of schools represented vary from state to state
Require strict adherence to administrative guidelines: Standardized field size; use of uniforms and a draft system; promote adult supervision and safe play
Hiring, supervising, and evaluating coaches
Coordinating facets of contest management, including hiring and paying of officials and event staff
Departmental/league training and disciplinary policies
Determining departmental/league budgets
Overseeing all associated fund-raising
Determining and verifying game scheduling and athlete eligibility
Transmitting relevant publicity and handling public relations
Face complex human resource issues
Deal with pressure
Long hours with little or no pay
Most must pass certification
Important to avoid litigation
May require certification from national, state, and local sanctioning organizations
Use of unprofessional personnel (volunteers) can leave a league liable for litigation for the actions of these individuals
Increased pressure to win
Leading to obesity (Brockton football) and more injuries (women’s soccer)
Players want to play and see opportunities to play in college
Up to coaches to provide safe environment
Equipment (using right ones, maintaining)
Actual play (not playing in bad weather, minimizing physical mismatches, etc.)
Evaluating coaches important
Consistent performance reviews
Disney’s Wide World of Sports Complex
Expanding of opportunities draws more students
Testing has high costs
Students feel impervious to risk, enjoy challenging authority