Test 1 Intro to Sports Management

birth of sport management
England
original reasons why sports teams formed (3)?
Politically
Economically
Power (had the leisure time)
Two diverse populations of Thoroughbred racing
Rich (owners)
Poor (entertainment)
2 factors that led to a systematic management
Desire of owners to breed and train fast horses
Increase complexity gambling (rich and poor), created sense of pride
The jockey club is an example of what modern function
Leagues (establish rules, break disputes, etc)
founder of the modern olympic games
Pierre De Coubertin
The games were seen as a symbol of….
peace
where were the first olympic games held
Athens
commitment to serve broad membership and manage elite sport enterprise
present day club structure
changes to the club structure
local and international
emphasis $ and entertainment
why was harness racing important
Everyone drove a buggy
how was the prized money paid by
admission
first pro team in baseball
Cincinnati Reds
importance of breakeven financial interests of individual than league
allegiance to personal finances was more important than league
who took over the management of the national league of professional baseball players
William Hulbert
Hubert believed stability would be achieved by
run teams like business
teams against each other & no colluding
strict rules were enforced creating honest competition
hubert emphasized _____ to the league
allegiance
*also believed in taking a financial risk
5 keys to success
1. excitement of race
2. favorable media attention
3. appealed to fans loyalty and pride in their cities
4. early form of revenue sharing (home team share w/ visiting)
5. distributive talent (draft)
had a debilitating disease and won the court to be able to ride in the cart
Casey Martin
She was granted membership in the PGA tour
Augusta Martin
a set of games organized by a group known as
The 16 women
first two men to start the idea of sports management
Water O’Malley and James Mason
This man started the first Masters program at Ohio University
James Mason
Goal of Sports manager
Get people working for us to get work done in the most efficient way
Two phases of management theory
scientific management
human relations movement
Frederick Taylor said the foundation of sports management was the following
there is one best way to do it and we have decided it is the most efficient way
how did taylor say a manager could influence his workers
economic rewards
study that said the social factors were the most important and they performed better bc someone was watching them
Hawthorne study
An inspiring female in the 1920’s who said not to just focus on the task but on the human behavior and to create a partnership w/ management and employees
Mary Parker Follet
POLE
Plan
Organize
Leading
Evaluating
define goals and then decide the most appropriate ways to achieve them
Plan
an organized plan should be
flexible
Action part, direct activities and delegating responsibilities
Leading
measuring/ensuring progress toward organizational objectives
evaluation
How to monitor progress
establish reporting system
develop standards and compare employees performance to them
interaction w/ clientele involves
people skills
knowing how to say something is just as important as….
knowing what to say
who are underrepresented in managerial positions in the sport industry
women and minorities
use of technology
stubs
surveys
see if season ticket holders are in their seats
this enables you to learn about different aspect of sport organization you are working with
initiative
create an ongoing demand for a product
sport marketing
one of the biggest challenged for sports marketing
understanding what the consumers wants
Marketing includes
Products
Services
Entities (Team, league)
sports broadcasting was originally
factual reports
Now sports broadcasting for
loyal fans
casual viewer
who created monday night football
Roone Arledge
acquisition of the rights to affiliate or directly associate w/ a product or event for the purpose of deriving benefits related to affiliation
sponsorship
Created sporting goods company and first to use the term “official”
Albert G. Spalding
Who built IMG and the golfer Arnold Palmer
Mark McCormack
First partnership of its kind between nike and
Jordan
The man who said you must provide reasons other than the game for people to attend and support the franchise
Bill Veek
Veek’s 3 beliefs
Create the greatest joy for the largest number of people
Ensure pleasurable attending performance
Create Conversation
who is credited for formalizing customer research in the sport industry
Matt Levine
Techniques used by Levine
audience
intercepts (one on one site interview)
focus groups
Pass by interview
The 4 P’s
Product
Price
Place
Promotion
looking at the total market groups and then the subgroups to better understand them
segmentation
emotional involvement with sports team organization
fan identification
They =
disconnect
We=
engaged and identifying with them
BIRG
basking in reflected glory
CORF
cutting off reflected failure
most loyal fans
NASCAR
best plan for retention
ensure fans become the “Raving Fans”
creating database includes consumer names addresses and other demographic information
database marketing
finance in an organization involves these two
How an organization generates funds that flow into the organization
How funds are allocated and spent once they are in an organization
financial inflows
revenues
financial outflows
expenses
two ways teams are financed
owners equity
debt
expected value to return on each alternative investment
return on investment
snapshot financial statement at a certain time
balance sheet
example of a non spectator sport industry
DICKS
sports leagues are considered _____ since there is no competitors
monopolies
monopolies allows them to
have better bargaining power aka price higher
PSL
personal seat licensed (making so much now even have to have a license)
example of capital investments being made to increase the revenues of the sports teams
stadiums
college athletics are as a whole…
non profitable
entertainment value connected to uncertainty of outcome
competitive balance
two types of caps
Hard
soft
you can’t exceed the amount
hard cap ex NFL
there are exceptions for going over
soft cap ex NBA
you have to play this when you exceed your hard cap
luxury tax
reasons for legal growth in sports (3)
Legal profession is more specialized
Amount of litigation and diversity cases have increased
Associations have rules and procedures based on US Legal system
Risk management involves two things
Prevention
Intervention
an injury or wrong suffered as the result of another improper conduct
Tort
Tort law provides
monetory damages to compensate for an injured person
Act or fail to act causes injury to a person to whom owe duty of care
Negligence
Found negligent when (3)
Injury
Duty of care (comes from relationship b/w plaintiff and defendant)
Act or failure to act (causes injury)
allows plaintiff to sue the superior for negligent acts of subordinate
vicarious liability
employer does not need to be _____ to be liable
negligent
Employee wasn’t negligent
Employee wasn’t acting w/in scope employment
Independent carrier aka not part of the company
Three defenses available
describes a relationship in which one party, the agent, agrees to act for and under the direction of another, the principal
Agency
To comply w/ a contract if one exists
To compensate the agent for his or her service
To reimburse the agent for any expenses incurred while acting on the principals behalf
fiduciary duties inherent in principal- agent relationship
Agents fiduciary duties
To obey
To remain loyal
To exercise reasonable care
To notify
To account
written or oral agreement b/w two or more parties, creates legal obligation to fulfill the promises
contract
Offer and Acceptance
Consideration (something of value)
Capacity (of age, mental)
Legality
A valid contract must have
in athletics cases focus on 3 areas
Scholarship distribution
Equal treatment, benefits, opportunities given to specific program areas
Degree to which educational institution has equally and effectively accommodated the interests and abilities of male/female students
Prohibits employer from paying one employee less than another on basis of sex when performing jobs of equal skill, effort and responsibility
Equal Pay Act
Equal pay act only applies to
sex paid discrimination
4 defenses available when display caused by
Seniority system
Merit system being followed in good faith
System measuring pay on basis of quantity/ Quality production
Factor other than sex
Prohibits employment discrimination on the basis of disability
Americans with Disabilities Act
Americans with disabilities act only applies
if the applicant or employee is able to perform all Essential functions of the job