ISS

UE

NO

.4 -

WIN

TE

R/S

PR

ING

15Inside the

Winter/Spring 15 Newsletter

SBI introduces The Business of Team Sports series with inaugural Business of Hockey event (Via USC News) Anyone looking for a good brawl at the meeting between the heads of the Los Angeles Kings and the Anaheim Ducks Jan. 15 was out of luck. Apart from a few convivial jabs, Luc Robitaille and Michael Schulman were largely on the same page when it came to the particular challenges of growing a hockey franchise in Southern California.

We battle each other on the ice, but off the ice, weve got to work together, said Robitaille, president of business operations for the L.A. Kings.

Schulman, CEO of the Anaheim Ducks, agreed. The Kings willingness to expand the sport in Southern California is why the Ducks exist.

Sponsored by the USC Marshall School of Business and the Sports Business Institute. (SBI), The Business of Hockey event brought together the leading executives of both Southern California hockey franchises for a candid discussion in front of a sold-out crowd of about 250 students, faculty, industry members and fans.

The conversation the first in a series of planned Business of Team Sports events was moderated by David Carter, SBI executive director and associate professor of management and organization. The event was lively and very well-attended. Everyone behaved themselves and enjoyed the discussion. You never know with hockey fans, he laughed.

CONTINUED ON PAGE 2

CONTINUED FROM PAGE 1, SBI INTRODUCES THE BUSINESS OF TEAM SPORTS

Carter was only half joking. The Kings and the Ducks share a passionate fan base in Southern California an unlikely toehold for a cold-climate sport until the Kings acquisition of Wayne Gretzky galvanized interest in the region in 1988. More than two decades later, that interest continues to rise. Since 2006, theres been an eight percent year-over-year growth in league revenue, shocking every-body, and our national revenue has grown at an even higher rate closer to 25 percent, Schulman said. We keep surprising ourselves.

The franchises ability to sustain those numbers was a central topic of the discussion.

Where do you see revenue growth within your franchise? Carter asked Robitaille and Schulman. Wheres the upside?

Robitaille had a ready answer. I would say TV, he said. Our game is still a ticket game The stadiums are already almost full.

Were at 95 percent capacity, Schulman concurred. In L.A. theres not a lot of room left in bringing people through the turnstiles.

TV could be a growth market, the executives agreed, because seeing a hockey game televised makes for a different fan experience. While the numbers suggest more people are watching the game on TV, Schulman noted that new technology could be used to make the game even more TV-friendly. Its a fast game. Its a confusing game, and there are not enough time outs to explain everything. We are working hard to make the TV experience better, he said.

Whatever the strategy, both Robitaille and Schulman agreed that growing the fan base and future player pool in Southern California will require the franchises to step up and hook young kids. The ages between four and eight are a prime market for us, Schulman said. You get those kids on the ice, and they are going to want to continue playing and watching hockey.

Still, in the land of sun and surf, finding facilities where kids can learn and practice their ice skating remains a challenge. Land in Southern California is too expensive to build ice rinks, Schulman pointed out. Instead, the franchises are putting their weight behind bringing in an elite triple A league for talented high school players (there are currently 41 high school teams in the region, mostly in Orange County). The idea is to bring scouts here instead of having to leave the region to go where they are, Robitaille said.

In perhaps the biggest development, Schulman announced that Southern California will soon have its own minor league teams. Weve been working on this for four years now, he said. There will be six new cities and six new teams. Those people who see minor league hockey are going to want to see major league hockey. It will expand further from there and help grow hockey in California. l

2

Click the image below for highlights from the event:

3SBIin the news

February 22, 2015USA TODAY SportsKurt Busch Faces Career Crossroads after Indefinite Suspension

January 31, 2015LA TimesNFL Team in L.A. Would have to Win over Fans with Widespread Loyalties

January 6, 2015Newark Star-LedgerChristies All-expenses Paid Dallas Cowboys Trip Raises 2016 Concerns

December 16, 2014ESPNJust a Sign of the Times October 18, 2014Philadelphia InquirerChip Kelly and the Culture of Success

October 6, 2014International Business TimesNBA TV Deal 2014: What The $24 Billion New Agreement Means For The League

September 29, 2014Fortune5 things to learn from Derek Jeters brand management

For more, visit the SBI Pressroom

Introducing:The SBI Corporate BoardSBI Corporate board members are organizations who possess a demonstrated interest in the sports business industry, as well as the SBIs pursuit of thought leadership and/or a desire to align with a leading academic institution in an effort to support academics as part of a commitment tothe business community.

The Bryan Cave Sports and Entertainment Group is recognized nationally and internationally as a leader in sports and entertainment law. Following our combi-nation with Holme Roberts & Ow-en, we now offer our clients a Sports Practice which was recently nationally ranked by Cham-bers USA America's Leading Lawyers for Business, a directory of the country's most widely recommended law firms and lawyers with rankings based entirely on client input. We offer our clients the unique experience and relationships of our over 60 Sports and Enter-tainment Group members across the United States, in London and in Shanghai practicing in a variety of transac-tional, litigation and regulatory practice groups.

In an industry synonymous with creativity and innovation, the bar for business excellence is set high. You need to embrace new technology, develop new distri-bution models and satisfy the demands of a voracious and outspoken consumer. At the same time, it's important to manage costs, exceed stakeholder expecta-tions and comply with new regulations. There's always another challenge just around the corner. EY's Global Media & Entertainment Center can help. We bring together a high-performance, worldwide team of media and entertainment professionals with deep technical experience providing assurance, tax, transac-tion and advisory services to the industry's leaders. Our network of professionals collaborates and shares knowledge around the world to provide exceptional cli-ent service and leverage our leading mar-ket share position and provide you with actionable information, quickly and reliably.

FOX Sports is the umbrella entity representing 21st Century FOX's wide array of multi-platform US-based sports assets. Built with brands capable of reach-ing more than 100 million viewers in a single weekend, FOX Sports includes

ownership and interests in linear television networks, digital and mobile programming, broadband platforms, multiple web sites, joint-venture businesses and several licensing partnerships. FOX Sports includes the sports television arm of the FOX Broadcasting Company; FOX Sports 1, FOX Sports 2; FOX Sports Regional Networks, their affiliated regional web sites and national programming; FOX Soccer Plus; FOX Deportes and FOX College Sports. In addition, FOX Sports also encompasses FOX Sports Digital, which includes FOXSports.com, FOX Sports GO, Whatifsports.com and Yardbarker.com. Also included in the Group are FOX's interests in joint-venture businesses Big Ten Network and BTN 2Go, as well as a licensing agreement that establishes the FOX Sports Radio Network.

Founded in 1948, Majestic Realty Co. is a fully-integrated development, leasing, construction and management company with offices in five states and a team of more than 200 profession-als. The Majestic portfolio consists of approximately 70 million square feet and includes indus-trial, retail, office, hospitality and entertainment facilities.

Companies today invest millions of dollars annually on corporate tickets and sponsorships yet are unable to measure the business impact of this investment. The all-too-common manual methods for buying, using, and tracking tickets are time-consuming, error-prone, and inefficient. The result: 40% of corporate and business tickets go unused and many tickets are wasted on attendees that don't drive business.

TicketManager: Gets tickets into the right hands; Drives business you can measure; For clients like AT&T, FOX Sports, HP, Google, and hundreds more.

TicketManager is an enterprise SaaS (software-as-a-service) available on any connected device enabling companies to manage their sports, entertainment and special events tickets and measure the impact these programs have on their busi-ness. Trusted by thousands of globally recognized companies and exclusive partner of over 60 professional teams, Ticket-Manager provides real-time corporate ticket and event management with comprehensive reports measuring ticket inven-tory, top users, most invited companies, ticket utilization and other metrics driving optimization and results.

The USA TODAY Sports Media Group encompasses all sports initiatives across USA TODAY Sports, and Gannett's 42 stations. It also includes: For The Win, the fastest-growing sports site in history; USA TODAY Sports Images, the largest sports-dedicated photography service in North America; USA TODAY High School Sports, the nation's leading destina-tion for high school sports; and USA TODAY Sports Digital Properties, which comprises hundreds of leading sports ver-ticals that include HoopsHype.com, mixed martial arts leader MMAjunkie.com, and the popular sports-meet-pop-culture site The Big Lead, among many others. Digitally, The USA TODAY Sports Media Group sites consistently rank among the top five most-visited sports sites in North America as measured by comScore. Across all platforms, the USA TODAY Sports brand reaches an audience of more than 50 million consumers each month.

4

Corporate Board Q & A

Tony KnoppCEO AND CO-FOUNDER, TICKETMANAGER

How have your various experiences in the industry at AEG, StubHub and now TicketManager molded you as an executive? We create a culture we believe will be the most successful given our experiences and our culture is no different. My dad, my first and strongest role model, would always remind me there is a lesson in everything. Its easy to take those lessons from what we see that we like, more difficult when we see what we believe to be wrong, however that is where we are truly shaped and has molded my approach to the team Im so lucky to be a part of.AEG gave me exposure to the sports industry, both the good and the bad. I learned how to be an advocate and not a boss to my charges from great leaders like Kurt Schwartzkopf. I learned how hard it was to break into this industry and, as such, I had the opportunity to see how limited opportunities brought out the best and worst in people, which allowed me to make a con-science choice as to what kind of legacy I wanted to leave. What I learned most, however, was just how far behind the world of team sports was vs. the technology industry.StubHub was the result of my experience at AEG, and a terrific opportunity Ill forever cherish. I had the chance to see how a business can support entrepreneurship at all levels. At 25, I was given opportunities alongside those much my senior and was given responsibilities we would not see at more mature firms (keep in mind, this was 2004, very early in StubHubs maturation). It was at StubHub I learned the power of incentive and motivation with a team and how asking the right questions can change an industry. We were challenged by our leaders, Jeff Fluhr and Colin Evans, to be aggressive and try new things without fear of failure. Theres a reason StubHub is as successful as it is, and it started at the top.All of these lessons led to what we are at TicketManager: An entrepreneurial meritocracy where we encourage constructive disagreement and strive to be uncomfortable. As they say, if youre not growing, youre dying, and the best way to grow is in a supportive environment with well aligned advocates and a committed team. We wouldnt have this culture had I not had the benefits of experience at AEG and StubHub.How has the ticketing industry evolved since you began your career?The ticketing industry has, sometimes reluctantly, shown signs of maturing along with the technology market. It wasnt long ago we all stood in line on a Saturday to get a ticket. Now we can leverage technologies across multiple platforms to better under-stand, engage with, and transact on events we want to be a part of. I was lucky enough to be at the early stage of the secondary ticket movement, an industry that, though many may not see it, is still very early in its maturation into a true market.Weve seen ideas come and go, more going than coming, as many try to find the next breakthrough in the consumption of live events. The day of the ticket is soon to be over, replaced with a form of digital identification allowing the user license to enjoy a live event. It is an entry into the consumer who is putting up walls and making it more difficult for commerce to access them. It is leveraging an experience to gain access to people. Its been fun to be a part of.What are some of the biggest challenges that you foresee as you continue to grow TicketManager?Disrupting a market comes with new challenges at every level of growth. Weve effectively positioned our platform as the only way companies big or small can effectively manage, track, and market their tickets to their staff and customers. Now that weve done so, we will need to stay ahead of any new entrants to the market and make certain the partners we are choosing are the right ones for the future of our industry. Were very happy with our partnerships with Salesforce.com, Concur, Tickets.com, StubHub, and others and will be looking to do more deals that will help get tickets into the enterprise systems the business user leverages every day.The two most important challenges within our control are culture and talent. We are constantly refining our team and our ap-proach to assure we have the best talent and the deepest bench. Our goal is to help our teammates grow their careers at the same

Tony Knopp is CEO of TicketManager, where he is responsible for the day-to-day tech-nology and management of over 30 million sports tickets annually. Tony previously held positions as an early member at StubHub and with AEG Worldwide, and has over 15 years experience in the technology and ticket markets.

54

SBI AdvisoryBoardMembership

John BendheimPresident, Bendheim Enterprises

Anita L. DeFrantzPresident, LA84 Foundation and Member, International Olympic Committee

Peter DropickVice President of Event Development, Ultimate Fighting Championship

Jim G. EllisDean, USC Marshall School of Business

Dennis GilbertCo-Founder, The Gilbert Group

Dick GloverCEO, Funny or Die Networks

Ed GorenRetired Vice Chairman, FOX Sports Media Group

Bob GrazianoManaging Director, J.P. Morgan

Patrick C. HadenAthletic Director, University of Southern California

Shawn HunterCo-Chairman, USA Pro Cycling Challenge

Chris McGowanPresident and Chief Executive Officer, Portland Trail Blazers

Jeff MooradFormer Agent and Major League Baseball Executive

Arturo Arte MorenoOwner, Los Angeles Angels of Anaheim

Brian MulliganCEO, Brooknol Advisors

David NealExecutive Producer, FOX Sports

6

trajectory as TicketManager and together ask questions that will change the way compa-nies view tickets.You wrote an in-depth piece on Fields of Green about ticketing at the Super Bowl, do you expect to see any changes to the marketplace as a result of the exorbitant prices at this years event?I do however I dont think they will happen too soon. Currently, there is not much downside to a speculator in the ticketing market walking away from a deal they will lose money on. Eventually, this market will mature with penalties and licenses similar to what we see in the capital markets. The NFL and its member teams will continue to try and find a way to get in on the action and eventually leverage forms of paperless ticket-ing that will curtail the black market dealings of the ticket brokers involved. I believe, however, this is at least five years away.What interests you about the USC Marshall SBI and its corporate board?We came to the corporate board as we are always looking for new ideas from well-established professionals on the cutting-edge of whats next in the sports business. Our industry needs a champion of thought leadership and I cant think of a better group or principal in David Carter to advance our industry by bringing together the right leaders to ask the right questions. The members of the corporate board are consistently focused on the future from every aspect and were honored to be a part of the discussion. USC Marshall SBI is the right organization in the right city to drive new ideas and objective analysis of what we can all do to grow the industry together.What qualities do you look for in a hire? Any advice for upcoming USC graduates entering the workforce?We take hiring very seriously at TicketManager and practice what we call relentless recruiting where we look for new talent even when we dont have open opportunities as we know there are openings coming.We are looking for three very simple things: 1) Alignment in career. Will this position help this applicant advance down the career path they desire 2) Preparation. Does the applicant know what we do? Have they taken the time to research our business, our competition, and our partners and 3) Do they have a track record of success? We look for people who have a pattern of success whether on the field, in the classroom, through volunteering, or in their careers.As for advice, I have too much to share in such a forum! A few pieces of advice:1) Too often new grads are just looking for a job. As clich as the where do you want to be in ten years question is, it is vital in ones approach to the job market. A com-mon misnomer is the glory of the entry level job. Most employers wont tell the truth to graduates: entry level jobs are very demanding leaving you underpaid and exhausted when done right, though I look back on mine with nostalgia. If these jobs can take you where you want to be in ten years, they are easy and interesting. If they dont, they are a waste of your time and the employers. New graduates are investments so dont be afraid to make mistakes and try new things while learning all you can.2) Success leaves clues: Find people in positions you envy and mirror them. Dont be afraid to reach out to a stranger. My career began when I offered to buy a beer for some-one I admired. Two weeks later, he got me a job at the Los Angeles Dodgers and weve been good friends ever since.3) Most importantly: There are things you can control in the job search and things you cannot. Accept those you can and dont get hung up on those you cannot. One vital as-pect you control is your preparation. Know the business, the competitors, the pain points, the dress code, and the job function and youll have a significant advantage on other ap-plicants. If they are taking their time to meet with you, take the time in advance to come prepared. And dont worry about being nervousall new grads are. l

Advisory BoardMembership Contd.Neal PilsonPresident, Pilson Communications

Jeffrey N. PollackSpecial Advisor to the President, San Diego Chargers

David RonePresident, Sports, News and Local Programming, Time Warner Cable

Matt RossettiPresident, ROSSETTI

Alan I. RothenbergChairman, 1st Century Bank, N.A.

Kathy S. SchloessmanPresident, Los Angeles Sports & Entertainment Commission

Michael SchulmanCEO, Anaheim Ducks

Jeff ShellChairman NBCUniversal; Chairman of Broadcasting Board of Gover-nors

Bill ShumardPresident & CEO, Special Olympics Southern California

David SimonPresident, Los Angeles Sports Council

Gary ToebbenPresident & CEO, Los Angeles Area Chamber of Commerce

Nick ZobelUSC MARSHALL, B.A. 15

BackgroundNickZobel is the Associate Editor for The Fields of Green and senior at USC pursuing degrees in Business Administration and Political Science. He is also an Analytics and Research Associate for AEG, working primarily with the LA Kings and LA Galaxy. What are your main areas of interest in sports and business (and the intersection)?Im interested in the growth of business analytics within sports, especially with regard to partnership activations. Sponsors and partnership development teams now expect to always be equipped with quantifiable results, and the development of better ways to calculate the impacts of activations is fascinating. How did you come across the Fields of Green opportunity?I was in SBI Executive Director David Carters undergraduate sports business class when FOG was initially launched, and after a summer of working in finance I decided to pursue my passion and enter sports business. I knew writing about sports business topics would give me new perspectives on the industry, and I wanted to be in an environment where I was encouraged to pursue multiple angles with industry developments.What were some of your personal highlights from business school ?I was part of the Global Leadership Program, an invitational class partially taught by Marshall Dean Jim Ellis. Its an all-freshman, year-long class, with guest lectures from a variety of business leaders that culminates in a Spring Break immersion trip to China to meet with companies there. Its so rare for freshmen to be exposed to international perspectives that quickly.What are some of the takeaways from your internships/MSBO/SBI interactions that will help you moving forward into your career?Being an editor has inherently made me a better writer. But more than that, working for FOG has opened my eyes to some of the big challenges within sports that are often missed: what to do with old venues, how the impact of social media activations can be quantified, the financial benefits of team ownership. l

7

Student Spotlight

MSBO reaches the halfway point of productive 2014-15 school yearThe 2014-15 school year has been very successful for the MSBO. As a club, membership has grown, with more students expressing an interest in learning about the business of sports and working in the industry. A great success has been the number of members that have taken on internships during the school year, providing invaluable experience in driving to our goal of finding careers in the sports industry. In the Fall, Sports 1 Marketing CEO, David Meltzer spoke to the club to discuss his career and give advice on how to achieve our goals. There have also been a number of Marshall Alumni come to discuss their careers and the path they took to get there. The MSBO has started off the spring semester with the oppor-tunity to help with the SBI Business of Hockey event. This February, members visited the LA Galaxy and had the opportu-nity to speak with a number of the front office staff from different functions. A group of members attended the MIT Sloan Sports Analytics Conference with two smaller groups submitting presentations to the case competition. This event provid-ed a tremendous opportunity to learn more about the role of analytics in sports, both in business and player evaluation.

PA

GE

PA

GE

1

5

I N T H I S I S S U E

EventsThe SBI hosted its inagural event in the Business of Team Sports series.

AdvisorsThe SBI Corporate Board has been launched with six member corporations.

VisitDont forget to visit the Fields of Green (thefieldsofgreen.com), the SBIs sports business website in partnership with USA TODAY Sports Media Group.

1150 South Olive StreetSuite 2900AT&T CenterLos Angeles, CA 90015

Addressee NameBusiness/Home AddressSuite NumberCity Name, ST 01234-5678

The USC Marshall Sports Business Institute appreciates your continued support.

3PAGE PAGE 7

The Business of Team SportsThe SBI hosted the LA Kings Luc Robitaille and the Anaheim Ducks Michael Schulman for The Business of Hockey, its inagural Business of Team Sports event series.