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Financial Impact of Sports Teams Sports Marketing Management.

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Presentation on theme: "Financial Impact of Sports Teams Sports Marketing Management."— Presentation transcript:

1 Financial Impact of Sports Teams Sports Marketing Management

2 How Can a Sports Team be a Financial Asset to a City Everyone involved with the team stays within the home city area –Practice Arena, Pre-Season Training Facility, Headquarters, Etc. The stadium is used for events other than sports The team attracts other businesses developments like hotels, restaurants, and retail shops.

3 Power, Prestige, and Profitability Jerry Jones bought the Cowboys in 1989 for $140 million ($65 million for the franchise and $75 million for the team) Today’s Estimated Value is $1.5 Billion (Forbes)

4 NFL Valuation Sport: Portion of franchise's value attributable to revenue shared among all teams. Market: Portion of franchise's value attributable to its city and market size. Stadium: Portion of franchise's value attributable to its stadium. Brand Management: Portion of franchise's value attributable to the management of its brand.

5 Attracting a Sports Team It takes a lot of money to attract a sports team –Oklahoma City recently approved a tax to raise $121 million to attract the Supersonics. A big portion of revenue for teams comes from TV advertisements. –When the NFL lost 3 of the largest 14 TV market areas they (Cleveland, 1999, Houston, 2002

6 Another Option to Public Financing; Community Ownership The Green Bay Packers sold publicly traded stock in their team (Have Done This for the Last 80 Years) The Packers Have –4,750,934 shares –112,015 stockholders No single person can purchase more than 200,000 shares.


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