CHAPTER 3 – SECTION 1

Big League Pricing and Planning The “big” in “big league sports” refers to

revenue potential or commercial value (money) as much as to the skill level of the actual physical competition.

As professional team owners plan for financial success, they must determine the cost of obtaining the top professional athletes.

Why would corporations pay extra fees to get a group of tickets for professional contests?

Financial Planning for a Sports Team

An NFL team can be a financial asset to a city if:

1. Everyone and everything involved with the team (staff, headquarters, practice areas, and pre-season training facilities) stays within the home city area.

2. The stadium/arena is used for events other than those for which it was built

3. The team attracts other business development like hotels, restaurants, and retail shops.

Bringing all the Resources Together Give three examples of off-the-field

products that can products that can produce profits.1. Media rights2. Luxury suites3. Team sponsorships

Sports Movies

What are your top three favorite sports movies?

Varsity Blues (1999) Any Given Sunday (1999) Fumbleheads (1999) Remember the Titans (2000) The Replacements (2000) Full Ride (2001) The Slaughter Rule (2002) The Junction Boys (2002) Hometown Legend (2002) The Second String (2002)

Radio (2003) Friday Night Lights (2004)The Longest Yard (Remake) (2005) Two For the Money (2005) Invincible (2006) We Are Marshall (2006) Facing the Giants (2006) Gridiron Gang (2006) The Comebacks (2007) The Game Plan (film) (2007) Leatherheads (2007) The Express (2008) The Longshots (2008) The Blind Side (film) (2009)

What can cause higher prices for tickets to sports events?

How can a team be good for a city?

Prestige, Power & Profitability Perks (short for perquisite) – A payoff or

profit received in addition to a regular wage or payment

Jerry Jones paid $140 million for the Cowboys in 1989 ($65 mil. For the franchise and $75 mil for the stadium) The value has now more than doubled

Political Clout

Reasons that Mayor Philip Bredesen of Nashville, TN, supported Nashville’s success ful bid to become the new home of the Titans football team.1. New local jobs & businesses2. New image for the city3. Motivation for young people to stay in

Nashville

Professional Teams and the Community

What type of jobs could a new stadium and team bring to a community?

Sociological Ties to a Professional Team

Image enhancement –

The Bottom Line

Rickey Jackson signed with the 49ers for $162,000 in 1994 with a bonus clause of $838,000 if the 49ers made it to the Super Bowl. (He got it – they won)

Power, prestige & money apply to college sports too

Merging conferences and alliances is done for fiscal reason. Fiscal (money)

Penn State

Joined the Big Ten for 3 reasons:1. More television coverage2. Better exposure3. More money