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Understanding the Sport Industry The Management of Sport Organizations, Events and Programs in the 21 st Century.

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Presentation on theme: "Understanding the Sport Industry The Management of Sport Organizations, Events and Programs in the 21 st Century."— Presentation transcript:

1 Understanding the Sport Industry The Management of Sport Organizations, Events and Programs in the 21 st Century

2 LeagueTotal Revenues NFL$4.8 billion MLB$3.5 billion NBA$3 billion NHL$2 billion Size of the Sport Industry US Professional Sport Industry

3 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

4 The Alternative Sports Boom Young males between 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)

5 Grand Total

6 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)

7 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)

8 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)

9 Sport Industry- all sport-related products offered to customers Sport Performance Sport Production Sport Promotion Sport Industry Segmentation ParticipationProducts/InfluencePromo Tools

10 A View of the Sport Industry by Setting Sport SettingExamples of Organizations Professional SportReal Madrid, NBA, MBL Amateur SportUSATF, Canada Basketball, NOC University Athletics Notre Dame, USC Municipal Recreation City of Altanta, Nymburk Parks and Recreation etc

11 What makes the sport product unique? 1. Aspects of the sport product are intangible. VS.

12 What makes the sport product unique? 2. Sport is subjective and heterogeneous.

13 What makes the sport product unique? 3. Sports are inconsistent and unpredictable.

14 What makes the sport product unique? 4. Sport is perishable.

15 What makes the sport product unique? 5. Sport involves emotions.

16 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)

17 Sport Context

18 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

19 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 …

20 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 organizations culture, including what drives members priorities and how they truly act in the organization.

21 N.E.T Organizational Chart Billy Crossan -President Scott Hofmann - Operations Jill Sparks - Legal consul Sue Strand - Security Phil Lyman -Event Planning Dominic Favia - Finance Fred Prudek - Contracts Judy Kopp -Sponsorship Brooke Ashbaugh -Marketing Tom Rapp - Corporate Sales Chris Hartman -Graphic Design And Media Kim Arnold - Team manager

22 Deciding on sport organization By next week have a sport organization that you feel could attract capital By next week create your organizations vision, mission and values Be prepared to present your organization to the class with powerpoint

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