1. Seminar
Strategic Management & Sports Events Organizations
Lionel Maltese
Maître de Conférences Paul Cézanne University (Aix-Marseille III)
Affiliate Professor Euromed Marseille School of Management
Strategic Planner French Tennis Events (Marseille, Paris, Roland Garros, Lyon, Toulouse)

2. Degree & Professional “course”
Engineer Economist – Econometrics (Magistere 2001)
DEA in Management Sciences – Strategy IAE Aix-en-Pce (2001)
Doctorat (PHD) in Management Sciences – Strategy (2004) IAE Aix-en-Pce
Academic Thesis in sport events context…
« Maître de Conférences »
Paul Cezanne University
Strategy
IUT-IAE (2004…)
Affiliate Professor
Euromed Marseille
Strategy
Sports & Events
Management
(2006…)
Professional Consulting (Strategic Planner)
& Event Organization (Entertainment management)
Pampelonne Organisation
(Open13, BNP Paribas Masters, Roland Garros, ATP, FFT, FFR, Occade Sport (GPTL-ASVEL), Team Lagardere…)
(2001…)

3. Sports Organizations ? Production Actors Council Media Broadcast
Sports goods
& Equipments
Production
Sponsors
Events
Clubs
Franchises
Institutions
Federations
Actors
Athletes
agents
Consulting
Agencies
Council

4. Club (or franchise) VS sport event
Professional athletes management and control
Clubs and Franchises :
Contracts : transactions and salary
Motivation : training, selection, financial premiums
 Athlete = “asset” for the managers
Events :
Fees (ATP, PGA for instance)
No control of sport performance by the managers
 Dependency of the athletes (calendar for instance) and their professional associations (ATP, PGA, UCI…)

5. Main “goals” for this seminar !
Sports organizations [professional Events & Clubs] = management “stake” ?
Proposition of a new Strategic Management Model for these organizations !
Understand & manage key factors of success (or failure) : sponsoring, public relations, reputation, physical (stadium) & local factors, managerial skills…
Develop your professional skills on : strategic analysis & formulate Sport Organizations Business Plan (Development Plan) : STRATEGIC PLANNER for sport organizations

6. Focus on “Event Concept”
In sports context, “event” is everywhere :
National Championships (every week ! : NBA, MLB, NFL, NHL, LNF, Top 14, Premier League…)
National and International Competitions (JO, World Cups…)
One shot events (every year) : Roland Garros, Tour de France, ATP, PGA, Superbowl, Formula 1… exhibitions… …

7. For consumers : Entertainment & Event = “experiential service”
Key questions
Strategic Marketing :
How to show the show ?
How to sell, communicate, package this “experiential service” ?
Who are our consumers : B to B, B to C, C to C… : working on communities (fans : difficult for an event !)
Strategy :
To perform and to develop sustainable performances on : sports measures, financial ratios, affluence – audience…

8. But… we need definitions (Covell an al., 2007)
Organization : « Any group of people working together to achieve a common pupose or goals thant could not be attained by individuals working separately »
Management :
The coordination of human, material, technological, and financial resources needed for the organization ti achieve its goals.
Responsibility for performance

9. But : what is performance for sports organizations ?
Performance indicators (Pis) give us an evaluation process that can provide objective and meaningful performance feedback to aid future decision making.
The methods of evaluation are both quantitative and qualitative but all the final results depend upon one or more manager’ interpretation
The key for sport organizations : your stakeholder analysis.

10. Sport organizations – performance and stakeholders
You can evaluate returns for :
Média
Athletes
Sponsors
Institutions
Spectators
Cities
Suppliers
Owner ….
 Various PIs for different objectives and muliple stakeholders…

11. Managing an event ?
Learning by Doing : “operational organization”  Self Made Men : (Jean-Marie Leblanc, Jean-François Caujolle, Gilles Moretton…) without academic formation (tacit knowledge and not explicit : see Julien & Vincent presentation…)
Distinction between :
Operational activities : press, ticketing, sports aspects, technical (stage manager) direction, volunteers or vacations management…
Development (you !) : experts in : Marketing, Strategy, Finances, RH… THE FUTURE IN SPORTS ORGANIZATIONS (Jean-Michel Aulas, Jean-Claude Blanc, Patrice Clerc, Christian Prudhomme…)
The twice but without sleeping…

12. Categorization of events
Scale of impacts (attendance, media, profile, infrastructure, costs, benefits)
High
Low
LOCAL
MAJOR
HALLMARK
MEGA-EVENT
Category of event

13. Categorization of events
Local or community events : Local consumers (Beach events, Corrida, Snowboard & Surf contest, ATP International Series Tournaments, National Events…)
Major events : Media interest (coverage & benefits) and capability of attracting significant visitor numbers (Formula 1, Master Series ATP, PGA…)

14. Categorization of events
Hallmark events : identified with the spirit or ethos of a town, city or region (synonymous with the name of the place) & very traditional (Wimbledon is the best example, 24H du Man, Paris Dakar, Masters Evian…)
Mega events : so large that they affect whole economics and reverberate in the global media (Olympic Games, FIFA World Cup, IAAF World Championships, Superbowl, March Madness, NBA, MLB, NHL Finals…)

15. Stakeholders in sport organizations
Private sponsors
Public sponsors
Sport institutions
Event / Club
Organisation
Athletes
Suppliers
Spectators
Media

16. Now before studying strategic analytic tools :
So sport organizations are in the “eye” of important actors “stakeholders” :
Our strategic problematic is :
How to control external environment (stakeholders) and how to be independent to perform, to develop and maintain ?
Now before studying strategic analytic tools :
What is Strategy ?
What are the more “sensemaking” approaches to analyze a sports organizations and their stakeholders ?

17. Main Strategic Approaches (Saias & Métais, 2001)
POSITIONING
MOVEMENT
Resource-Based View RBV
Permanent Transformation
S.W.O.T
5 Forces
Competitive
Advantage
STRATEGIC « FIT »
STRATEGIC
« INTENT »
Michael Porter & Co
Gary Hamel and C. K Prahalad & Co

18. FIT What business are we in ? S-C-P : Structure Conduct Performance
The structure of the industry will dictate the conduct of firms and thereby their performance (most popular : SWOT or “five-forces” model (Porter, 1979)).
The big illustration is the 5 Forces Model (Porter, 1979).

19. Porter’s Five Forces (Industry)
Barriers to Entry
Bargaining Power of Customers
Bargaining Power of Suppliers
Competitors
Substitutes

20. What are we able to make with what we have ?
INTENT
What are we able to make with what we have ?
RBV (Resource-Based-View, Wernerfelt, 1984, Barney, 1991, Grant, 1991) : certain assets (resources and capabilities) with certain characteristics will lead to sustainable competitive advantage.
Strategy dictated by unique resources and capabilities of the firm (what can the firm do best?)

21. Concepts definitions
Resources : stocks of available factors that are owned or controlled by the firm (Amit and Schoemaker, 1993)
Capabilities : a firm’s capacity to deploy resources, usually in combination, using organizational processes, to effect a desired end” (Amit and Schoemaker, 1993)
Dynamic capabilities : capacity of the organization to renew competences to be in line with the changing business environment (Teece and al., 1997).
Asset = resource + capability

22. Non-Substitutability
Resource Based-View : VRIO model (Barney, 1991)
Value
Rareness
Resources & capacities
Lead to
Sustained Competitive
Advantage
Organization
Inimitability
Non-Substitutability

23. VRIO Properties Is the resource or capability… Implications Valuable
Rare
Difficult to imitate
Difficult to substitute
Organizational
Implications
Neutralize threats and exploit opportunities
Not many firms possess
Physically unique
Path dependency
Causal ambiguity
Social complexity
No equivalent strategic resources or capabilities
Productive exploitation by the organization

24. FIT : Soccer metaphor
The strategy (tactical) is a function of the external environment (rival teams : opportunities - threats).
The trainer has a tactic adapted to the adversary and the players (resources) adapt to this positioning (diagram of play).

25. Intent : Soccer metaphor
The head coach "visionary" (or manager) has resources (players) and sets up a strategy (tactical) starting from these forces and weaknesses (resources), in order to face to certain opportunities or threats of the environment (air play, speed, physical engagement)


26. So What ? How can we “implement” that ? It’s very theoretical !
Your and my job : to be able to construct a business plan (development) with a “specific RBV analysis” (your “sensemaking background”), and furthermore :
Persuade and control our stakeholders
Maintain our performance
To be “ready” for new opportunities and threats because of very instable sports environment…
Managing resources & capabilities = core competency of a “modern” CEO in sport organizations (Jean-Claude Blanc…and you !)

27. Categorizing resources
Barney (1991) : 3
Physical capital : technology, plants, equipment, geographical localization…
Human capital : formation, experience, networks - relationships…
Organizational capital : formal structure, control, routines, process, coordination systems…
Grant (1991) : 6
financial, physical, human, technological, organizational, reputation.
Wernerfelt (1989) : 3
Fixed assets : plants, equipment…
“Blueprints” : patent, brand, reputation
Teamwork “effects” : routines, habits, experience…

28. Sport events & clubs : assets identification
Players & coach (clubs only)
Partnership
(sponsoring, partners)
Reputation
(event, sport, players)
Relational
(Social capital, relational networks, Public Relations)
Physical
(infrastructures, stadium, territory)
Organizational Capabilities
(Core competences, event driven know how, project management))
Sport Event & Clubs
Financial resources
« Profit centres »
Ticketting
Contracts (sponsoring, Public Relations) & Players (clubs only)
TV rights
Merchandising
Institutions (public subsidies)
Renown
History
Sport performance
Affluence, audience

29. RBV first model for a sport organization Partnership Resources
Concepts
RBV first model for a sport organization
Partnership Resources
Reputational
Resources
Resources
portfolio
PROPERTIES ?
Players
Coach (club only)
Relational Resources
Physical Resources
Core
Competencies,
Capabilities
Organizational team,
Managers
Performance, Sucess
Sport Success
Financial Sucess
Public Sucess
Long Term

30. Success case Open13 1993---2008 www.open13.org
“Familial professional “bricolage” from Marseille”
VIDEO

31. Relational competencies Organizational capabilities
Open13
Corporate
Reputation
Sport
Reputation
Reputational
Resources
Partnership
Resources
Relational
Resources
Physical Resources
Relational competencies
CEO celebrity
Opportunism
Organizational capabilities

32. Cascade of assets Learning Organizational Capabilities
Relational
Resources
« Axes »
Learning
Organizational
Capabilities
Partnership
Resources
Reputational
Resources
Physical resources
Stock of resources
Dynamic Capabilities
« Bricolage  »

33. Partnership resources
Sponsoring : brand image, image transfer, notoriety, visibility, target specificity, TV…
Examples : BNP Paribas, Louis Vuitton, Rollex, Peugeot, Indesit, Adidas, Nike, Fedex, Coca-Cola, Philips, Renault, Mercedes…
Public Relations : Business relations, Employee relation, Government relations…
Examples of RP events : PGA tour, America’s Cup, ATP tournaments (Open13, GPTL, RG…)..

34. Definition
Provision of assistance either financial or in kind to an activity by a commercial organization for the purpose of achieving commercial objective (Meenaghan, 1983)
Sponsorship involves two main activities (Cornwell and Maignan, 1998) :
exchange between a sponsor and a sponsoree whereby the latter receives a remuneration (cash or in-kind contribution) and the former obtains the right to associate itself with the activity sponsored
marketing of the association by the sponsor

35. Sponsor support : financial or not
Firm, non profit organization, institution…
SPONSORED
Entity : individual, group, oragnization, event…
Area : sports, arts, environment..
Benefits for the sponsor : achieve communication objectives
Media
Sponsor
target
Sponsored
Target
PUBLIC

36. Strategic approaches for sponsorship
Passion approach : passion of a CEO (“The dancer of the President”) : RLD (Adidas – Om), Serge Kampf (Cap Gemini – BO)
Opportunistic approach : link between a sponsorship project and a firm CEO (Sodexho / Cities – Thomson / Canal +…)
Strategic approach : sponsorship integration with the global strategic communication or marketing strategy of a firm (banks, sport brands… )

37. Implementation by the event organizer Targeting – Activation – Faithfulness - Innovation
Knowledge about the sponsors activities (strategy – marketing – finance – human resources)
Event = pool of communication and marketing tools => “Fit” with sponsors needs
Do not implement a communication tool if you’re not able to evaluate or control it… Be careful to overflowing effects !

38. Communicate about your sponsors loyalty (faithful)
Implementation by the event organizer Targeting – Activation – Faithfulness - Innovation
Activation :
Participative actions for the sponsors and their target (best example : NBA All Star Game
Importance of the HOSPITALITY (B to B and B to C) (best example : PR “Village”)
Communicate about your sponsors loyalty (faithful)
If you can (very rare) : using your sponsorship evaluation about efficiency in your event !
Innovation : NTIC – Buzz Marketing – Technological innovation (MSL for instance & HD for TV broadcast)

39. Summary : being “sensemaking” !
Understand the sponsor needs (your customer !) :
Targeting for your sponsor (sponsor day for instance)
Linking your media planning with the communication strategy of your sponsors
Selecting the media
No concurrency between the brands…
Being aware for new activations….
Making you sponsor dependant and not the contrary
Using strategic FIT for your sponsor but You must be a “visionary” (strategic INTENT)

40. Event communication (sponoring resources)
Event or Club
Partneship Resources
VRIO
Linkage
among
resources
Sponsor
Event communication (sponoring resources)

41. Relational Resources
Event Manager’s Social Capital (Christian Bîmes & Jean-Claude Blanc, Patrice Clerc & Jean-Marie Leblanc …)
Relational and business networks : GPTL (Marie Roussille (Occade) in Lyon), Pampelonne (Jean-François Caujolle)

42. Public Relations (PR) ?
Public Relations is a management function which tabulates public attitudes, defines the policies, procedures and interest of an organization followed by executing a program of action to earn public understanding and acceptance. " (Edward Bernays)
According to Michel Crozier (1957) : Public Relations is a set of processes used by managers to gain external publics’ sympathy and goodwill.

43. PR for events managers Press-relations : control & development
Events creation during your event
Political PR
« People » exploitation (dedicated person in your organization)
Construction and management of relational networks inside and outside your event
Forging an « iron cage » for your event network : be carefull about the balance between quantitative and qualitative interpersonal relationships

44. Interpersonal “ties” efficiency (Granovetter, 1973)
“The Strength of Weak Ties”, 4 criteria :
Relation duration
Emotional intensity
Intimacy
Services reciprocity between stakeholders

45. Physical (territorial) Resources
Stadium : Wimbledon, Roland Garros, Madison Quare Garden…
Territory : Tour de France, F1, Rally & Tennis (Monte Carlo), 24 H du Man, Stade Toulousain, Pau-Orthez, Derby de la Meije…
Infrastructures : training camps and conditions…

46. Reputational Resources
Event legend and history : JO, America’s Cup, Le Tour de France, Roland Garros, Wimbledon…
Corporate Reputation : FFT, Amaury, IMG, Octagon…
SUPERBOWL VIDEO

47. Réputation ?

48. World's Most Admired Companies 2007

49. Top 20
For the 20 most admired companies overall, FORTUNE's survey asked businesspeople to vote for the companies that they admired most, from any industry.
Rank
Company 1
General Electric 2
Starbucks 3
Toyota Motor 4
Berkshire Hathaway 5
Southwest Airlines 6
FedEx 7
Apple1 8
Google 9
Johnson & Johnson 10
Procter & Gamble 11
Goldman Sachs Group 12
Microsoft 13
Target 14 3M 15
Nordstrom 16
United Parcel Service 17
American Express 18
Costco Wholesale
19*
PepsiCo
Wal-Mart Stores

50. Shareholders performance Stakeholders Performance
Understanding the Meaning of Performance ?
Athletes
Performance
Shareholders performance
Brand
Exploitation ?
Event
Reputation 
Performance
Event
Internal Measure
P.A.P.E.R
Test
PR Efficiency
(Partners)
Sponsoring
Efficiency
(Partners)
Institutional
Performance
Media
Performance
Stakeholders Performance

51. Reputation = key resource ? Non-Substitutability
Value
Rareness
REPUTATION =>
Sustained Competitive
Advantage
Organization
Inimitability
Non-Substitutability

52. Reputation = key asset but difficult to control
Media exposition
Being Good or Being Known (Business School cases !)
Notoriety / Reputation
Actors Reputation (athletes, coach, Managers) : differences between local & major / hallmark & mega events

53. Expressive organizations ?
Services
Hospitality : B to C – B to B
In the context of Entertainment and sport : organizations (clubs & events) are expressive
Sports organizations compete based on their ability to express who they are and what they stand for.
Emotional and symbolic expressiveness is becoming part of the experience of doing business…
Expressiveness : strategy must serve all stakeholders and that means employees as well as customers, shareholders, creditors, suppliers, local or special communities, and the media.
Product
Sport competition
Experience
Entertainment
Expressiveness implementation :
Very difficult !

54. Linking Identity, Reputation and Expressive Organization (club or event) Brand

55. Identity (Fombrun, 1996)
Corporate identity describes the set of values and principles employees (and players) managers associate with a company.
Corporate identity derives from a company’s experiences since its founding, its cumulative record of successes and failures : very important for sports organizations !

56. Reputation (Fombrun, 1996)
“Reputation” is the general estimation in which one is held by the public (American Heritage Dictionary’s)
A corporate reputation represents the “net” affective or emotional reaction – good or bad, weak or strong – of customers, investors, employees, and the general public to the company’s name.

57. What’s in a name ? Sports organizations names are very strategic :
Cities
Objects, animals, groups, symbols, features : Colts – Bulls – Celtics – Patriots - Indians…
Sponsors : BNP Paribas, H Cup , Evian Masters, Andros Trophy…
Moreover : in a market society like ours, it’s clear that names – and the reputations we associate with them – have economic value :
Michael Jordan : continued to bring in top endorsement income from companies like Nike, Hanes, General Mills and Quaker Oaks (estimated $ 13 million a year)
Jack Nicklaus, Arnold palmer (golf), Joe Montana, Wayne Gretzky, Andre Agassi, Zinedine Zidane…

58. Reputation and media
Difficulty to control inside de Communication Mix (TV, Radio, Internet, Press, posting) !
For sports organizations : you can develop your own information for the public : official website (very important !) and sometimes own press (production) or TV

59. Linking Identity – Name – Image – Reputation (Fombrun, 1996)
Corporate Identity
Names
Self-Presentations
Customer
Image
Investor
Image
Employee
Image
Community
Image
Corporate Reputation

60. Brand construction and control in a very expressive organization…
Club or Event
Brand
Place, City, Country
Public, Fans, Communities
Athletes brand
Sponsors brand

61. Brand construction is difficult in this context… But :
Reputation construction and control can stimulate and develop your commercial brand !

62. Corporate Reputations can be measured and managed
Reputation management
The Reputation Quotient

63. Reputation management (Fombrun, 1996)
Visibility
REPUTATION
Authenticity
Transparency
Consistency
Distinctiveness

64. The expressiveness quotient (Fombrun and Van Riel, 2004)
Communicates Appropriately with Everyone…
Carries out Visible Stakeholder Initiatives…
Participates in Worthy Social Initiatives…
Visible
Is Recognizably Different...
Makes a Distinctive Promise…
Stands out…
Distinctive
Expressiveness
Quotient
Walks the Talk…
Is Identifiable in its Communications…
Conveys a Consistent Message…
Consistent
States Its Beliefs Openly…
Discloses Information in a Timely Fashion…
Shows Responsiveness to all Stakeholders…
Transparent
Is Credible and Sincere in Its Communications…
Is Honest…
Is Appealing to deal with…
Authentic
The expressiveness quotient (Fombrun and Van Riel, 2004)

65. Reputation management in action !
You have to
Create
Protect
Repair
your reputation
Indeed bad reputation can affect brand development… (OM)

66. But don’t forget your resources reputation !
Sponsors Brand
PR and CEO celebrity
Local or cultural identity
Hospitality (stadium)
Your history !
“Being Known” => not always “Being Good”
(Stade Français or NY Knicks cases…)

67. Reputations are magnets : they help a company attract resources (Fombrun and Van Riel, 2004)
Employees
Make jobs more attractive
& motivate hard work
Customers
Encourages repeat purchase
& builds market share
Investors
Lowers capital costs
& attracts next investment
REPUTATION
Media Journalists
Generates more favorable
Press coverage
Financial Analysts
Affects content of coverage
And recommendations

68. Measure : reputation Quotient (6 dimensions and 20 attributes) (Fombrun and Van Riel, 2004)
7-pt scale
7 = describes very well
1=oes not describe well
Social Responsibility
Supports Good Causes
Environmental Responsibility
Community Responsibility
Emotional Appeal
Feel good about
Admire and Respect
Trust
Products & Services
High Quality
Innovative
Value for money
Stands Behind
Vision & Leadership
Market Opportunities
Excellent Leadership
Clear Vision for the future
REPUTATION
Financial Performance
Record of profitability
Low Risk investment
Growth Prospects
Outperforms Competitors
Workplace Environment
Good Place to work
Good employees
Rewards Employees Fairly

69. Transfer in the context of sports organizations
7-pt scale
7 = describes very well
1=oes not describe well
Social Responsibility
Supports Good Causes (Ethic)
Environmental Responsibility
Community Responsibility
(fans)
Emotional Appeal
Admire and Respect sport
& athletes
Passion & hedonism
Comsumer
experience
Products & Services
High Quality of sport show
& experience
Innovative
Value for money (tickets)
Hospitality
Vision & Leadership
Market Opportunities
Excellent Leadership
Clear Vision for the future
CEO celebrity
REPUTATION
Financial Performance
Record of profitability
Low Risk investment
Growth Prospects
Outperforms Competitors
Media returns - affluence Stakeholders performance
Workplace Environment
Good Place to work
Good employees
Volunteers management

70. Mega Event

71. Remarks… Communication : fit with the actuality ?
Merchandising and memory ?
Identity and Reputation : places – french inheritance
The athlete is known because of the event
Difficulty to target : popular event
“Caravane” : sponsoring unicity
Event director : charisma and celebrity : Jean-Marie Leblanc  Christian Prudhomme

72. Questions ? Answers ? How do you manage an exceptional (mega) event ?
Development ? Innovation ?
Answers ?
You have to maintain your level !
Reputation management (creation – protection (doping) – repair) : pivotal resource !
If you can : transform your event reputation into a brand +
External control (sponsors – media – institutions – communities…)

73. Reputation  Brand
Roland Garros

81. Be visible Be authentic Etre consistent Etre distinctive
5 principles
Reputation Management
For Roland Garros
Be visible
Media choice (F2-3)
Stadium evolution
Be authentic
Traditional identity
History respect (museum)
Etre consistent
Sport advantage
Sponsors control (colors on the court)
Etre distinctive
Sport exception :
Grand Slam
Clay courts
Physical impacts
Etre transparent
Communication (ex players)
FFT is an association
(now difficulty with Christian Bîmes)

82. Physical
Resources
Partner
Resources
Relational
Resources
Corporate
Reputation
Reputational
Resources
Sport
Reputation
Protection
Exploitation
Learning
Forecasting
Organisational
Capabilities

83. Cascade of assets Learning Organizational Capabilities
Reputational
Resources
« axes »
Learning
Organizational
Capabilities
Partnership
Resources
Physical
Resources
Relational
Resources
Stock of resources
Dynamic Capabilities
« Bricolage  »

84. Jean-Claude Blanc : resources management strategist…
TV Rights
€32 million
Public Relations
€31 million
Sponoring
€25.5 million
Ticketting
€21 million
Equilibrium « Resource-Based » ( )
No Resources Dependency +
External control of the environment
= rents optimization (most important in France)