Presentation on theme: "Understanding the Sport Industry"— Presentation transcript:
1 Understanding the Sport Industry The Management ofSport Organizations, Events and Programsin the 21st Century
2 Size of the Sport Industry US Professional Sport IndustryLeagueTotal RevenuesNFL$4.8 billionMLB$3.5 billionNBA$3 billionNHL$2 billion
3 US Consumer Spending on Sport Advertising $28.25 billionEndorsements $730 millionEquipment/Apparel $24.94 billionFacility Construction $2.49 billionInternet $300 millionLicensed Goods $15.1 billionMedia/broadcast rights $10.57 billionProfessional Services $14.03 billionSpectator Sports $22.56 billionSponsorships $5.09 billionMedical Treatment $4.1 billionTravel $44.47 billionPublications/Videos $2.12 billionGambling $18.55 billionTeam 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)
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 Industry SegmentationSport PerformanceSport ProductionSport PromotionParticipationProducts/InfluencePromo Tools
10 A View of the Sport Industry by Setting Sport SettingExamples of OrganizationsProfessional SportReal Madrid, NBA, MBLAmateur SportUSATF, Canada Basketball, NOCUniversity AthleticsNotre Dame, USCMunicipal RecreationCity of Altanta, Nymburk Parks and Recreation etc
11 What makes the sport product unique? VS.1. Aspects of the sport product are intangible.
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)
18 Future Trends in the Field Health and Fitness Industry:Growth in family marketsGrowth in niche markets (women, older adults)Growth in ‘spa’ settingsGrowth in personal training
19 Facility Management: Sporting Goods: Professional Sport: Growth in domes and multi-pad arenasGrowth in golf coursesGrowth in parks and trailsSporting Goods:Growth in diversity of products …Growth in use of event managementProfessional 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 organization’s culture, including what drives members’ priorities and how they truly act in the organization.
22 Deciding on sport organization By next week have a sport organization that you feel could attract capitalBy next week create your organization’s vision, mission and valuesBe prepared to present your organization to the class with powerpoint