Understanding the Sport Industry

The Management of Sport Organizations, Events and

Programsin the 21st Century

League Total Revenues

NFL $4.8 billion

MLB $3.5 billion

NBA $3 billion

NHL $2 billion

Size of the Sport IndustryUS Professional Sport Industry

US Consumer Spending on Sport• Advertising $28.25 billion• Endorsements $730 million• Equipment/Apparel $24.94 billion• Facility Construction $2.49 billion• Internet $300 million• Licensed Goods $15.1 billion• Media/broadcast rights $10.57 billion• Professional Services $14.03 billion• Spectator Sports $22.56 billion• Sponsorships $5.09 billion• Medical Treatment $4.1 billion• Travel $44.47 billion• Publications/Videos $2.12 billion• Gambling $18.55 billion• Team Operating Expenses $19.23 billion•

The Alternative Sports Boom

• Young males between 12-24 years of age spend billions of dollars annually on equipment and apparel:– In-line skate ($251 million)– Snowboard ($235 million)– Skateboard ($105 million)– Wakeboard ($80 million)

Grand Total

Sport Managers Are The Glue That Holds This All Together

“Sport managers are the wonderful glue that binds successful sport organizations, sport events, athletes, health clubs, and virtually every sport industry-related business.”

(Davis, p. 5)

Defining Sport

“Sport is any activity, experience, or business enterprise focused on fitness, recreation, athletics, or leisure. …sport does not have be competitive, nor does it always require specialized equipment or rules; in fact, sport includes activities such as working out, running, and dancing.” (Parks & Quartermain, p.7)

Sport Management is “any combination of skills related to planning, organizing,

directing, controlling, budgeting, leading and evaluating within the context of an

organization or department whose primary product or service is related to sport and/or

physical activity.” (Parks & Quartermain, p. 8)

Sport Industry- all sport-related products offered to customers

Sport Performance

Sport Production

Sport Promotion

Sport Industry Segmentation

Participation Products/Influence Promo Tools

A View of the Sport Industry by Setting

Sport Setting Examples of Organizations

Professional Sport

Real Madrid, NBA, MBL

Amateur Sport USATF, Canada Basketball, NOC

University Athletics

Notre Dame, USC

Municipal Recreation

City of Altanta, Nymburk Parks and Recreation etc

What makes the sport product unique?

1. Aspects of the sport product are intangible.

VS.

What makes the sport product unique?

2. Sport is subjective and heterogeneous.

What makes the sport product unique?

3. Sports are inconsistent and unpredictable.

What makes the sport product unique?

4. Sport is perishable.

What makes the sport product unique?

5. Sport involves emotions.

Sport Organizations are:

•Goal oriented (exist for a reason)

•Deliberately Structured (systematic arrangement of people and working relationships)

•Deliberately Coordinated (patterns and relationships)

•Exist as a system of individuals and groups (activation)

•Made up of people with special skills (competencies)

Sport Context

Future Trends in the Field

Health and Fitness Industry:

• Growth in family markets

• Growth in niche markets (women, older adults)

• Growth in ‘spa’ settings

• Growth in personal training

Facility Management:

• Growth in domes and multi-pad arenas

• Growth in golf courses

• Growth in parks and trails

Sporting Goods:

• Growth in diversity of products …

• Growth in use of event management

Professional Sport:

• Growth in number of franchises …

Forming your Organization

• Vision - The vision statement includes a vivid description of the organization as it effectively carries out its operations.

• Mission - the mission statement describes the overall purpose of the organization.

• Values - Values represent the core priorities in the organization’s culture, including what drives members’ priorities and how they truly act in the organization.

N.E.T Organizational Chart

Billy Crossan-President

Scott Hofmann- Operations

Dominic Favia- Finance

Brooke Ashbaugh-Marketing

Tom Rapp- Corporate Sales

Judy Kopp-Sponsorship

Chris Hartman-Graphic Design

And Media

Fred Prudek- Contracts

Jill Sparks- Legal consul

Sue Strand- Security

Phil Lyman-Event Planning

Kim Arnold- Team manager

Deciding on sport organization

• By next week have a sport organization that you feel could attract capital

• By next week create your organization’s vision, mission and values

• Be prepared to present your organization to the class with powerpoint