1. Chapter 13 Event Management

2. Introduction
Sport event management: All functions related to the planning, implementation, and evaluation of a sport event
Requires: Finance/budgeting, risk management, tournament operations, registration, volunteer management, and event marketing

3. History
Late 1800s: Focus turned to the professional aspects of managing sport events because of a desire to increase profits (Albert Spalding)
Barnstorming tours: The touring of star athletes and teams to promote the popularity of a particular sport
Emergence of sport management/marketing agencies—businesses that act on behalf of a sport property (e.g., IMG)
Agencies have expanded to incorporate myriads of functions beyond representing athletes

4. Top Sport Management/Marketing Agencies
Rank
Corporate Consulting/
Marketing Services
Athlete/
Talent Representation
Property Representation and Media Sales
Event Planning and Management 1
Octagon
IMG
SportsMark Management Group 2
Momentum Worldwide
Bronskill and Co. 3
Velocity
Wasserman Media Group
Host Communications
Jet Set Sports 4
GMR Marketing and IMG (tie)
Creative Artists Agency
CSTV
Vivid Marketing 5
Millsport
Scott Boras Corp.
Raycom Sports
Next Marketing

5. Agency Functions
Client representation: Acting on behalf of a client in contract negotiations
Client marketing: Locating appropriate endorsement opportunities, booking appearances, and developing entertainment extensions
Event development and management
Meeting increased demand for television production and development work
Developing/marketing grassroots programs

6. Agency Functions (cont.)
Soliciting corporate sponsorships
Evaluating the success of events and initiatives through market research— implementing mail surveys, focus groups, on-site surveys, and sponsorship/economic impact surveys
Studying impact of sponsorship activities

7. Types of Agencies
Full-service agencies perform the complete set of agency functions (e.g., IMG, Octagon).
Specialized agencies limit either the scope of services performed or the type of clients serviced (e.g., Redmandarin).
In-house agencies are formations of separate departments or divisions dealing with event management within major corporations.

8. Event Management Functions: Finance/Budgeting
Critical to successful sport event management
Budgeting attempts to predict revenues and expenses for a particular event
Zero-base budgeting: Review of all activities and related costs of an event as if it were the first time
Cash-flow budgeting: Accounting for the receipt and timing of all sources and expenditures of cash

9. Event Management Functions: Risk Management
Protecting the organization from anything that could possibly go wrong and lead to a loss of revenue or customers
DIM Process: Developing, implementing, and managing the risk management plan
Waiver and release of liability: form signed by participants that releases venue from negligence
Purchasing insurance: Provides security to an event regarding potential financial losses

10. Event Management Functions: Tournament Operations
The nuts and bolts of an event
Divided into pre-event, actual event, and postevent activities
Pre-event: Determine type of event being planned and the event’s goals
Script: Specific, detailed, minute-by-minute schedule of activities throughout the day
Postevent: Activities surrounding completion of event

11. Event Management Functions: Registration
First time event staff members come into contact with participants
Registration system: Crucial for making a good first impression on clientele
Determining information that needs to be collected and disseminated during the registration process

12. Event Management Functions: Volunteer Management
Most events cannot be successfully executed without volunteers
Determine volunteer needs: Numbers, qualifications, type of work
Recruitment and training
Keep volunteers happy

13. Event Management Functions: Event Marketing
Integrated marketing approach: Corporate sponsorship, advertising, public relations, hospitality, ticket sales, broadcasting, Web site development, licensing/merchandising, fund-raising
Long-term strategic planning to manage functions in a consistent manner

14. Event Management Functions: Event Marketing (cont.)
Corporate Sponsorship
Increase in number of events has led to an increase in competition for sponsors
Events have become increasingly reliant on sponsorship
Either sold by the event (in-house) or by an outside sport marketing agency (IOC)

15. Event Management Functions: Event Marketing (cont.)
Advertising
Advertising expenditures are a very minor portion of an event’s expenses
Advertising sought through one of two means: (1) media sponsors or (2) attachment to corporate sponsor advertisements
Nearly all successful events sell sponsorships to media outlets
In-kind sponsorships: Event provides the typical sponsorship benefits in exchange for a specified amount of free advertising space

16. Event Management Functions: Event Marketing (cont.)
Public Relations
Generating free publicity is important
Must develop a good working relationship with the members of the media (e.g., through hospitality)
Event must be creative to attract interest

17. Event Management Functions: Event Marketing (cont.)
Hospitality
Providing a satisfying experience for all stakeholders of the event
One way of improving event loyalty
Hospitality rewards and builds relationships with current customers; generates business from new customers; rewards employees for good performance; rewards suppliers for excellent sales
Hospitality is one of the 10 most common functions of a sport agency

18. Event Management Functions: Event Marketing (cont.)
Ticket Sales
Sporting events rely on ticket sales to varying degrees.
For medium-sized and smaller events, ticket sales are a less effective way to generate revenues.
Ability to charge admission is dependent on where the event occurs and how easily the event manager can control entry to the event (e.g., golf).
© Corbis/age fotostock

19. Event Management Functions: Event Marketing (cont.)
Broadcasting
Radio/television broadcasts add credibility to an event and provide increased exposure, benefiting sponsors.
If a broadcast outlet does not feel an event will be attractive to a large audience, limiting the ability to sell advertising time, then the outlet will not be willing to pay a rights fee to televise or broadcast that event.
Sport organization have begun to look at online sites (Youtube, etc.)

20. Event Management Functions: Event Marketing (cont.)
Web Site Development
Imperative that any event, no matter the size, has a Web site to provide important information and promote the event
Web site’s URL should be the name of the event or something that is very close to the name of the event
Web site should provide basic event details: When/where the event is occurring, how tickets can be purchased for the event, online ticket purchase option, news releases, and so forth

21. Event Management Functions: Event Marketing (cont.)
Licensing/Merchandising
Sale of items that display an event’s name or logo: Usually only beneficial for large, televised, multiday events
To cover the costs of inventory, staffing, and space allocation, significant sales must be achieved for the event to make a profit

22. Event Management Functions: Event Marketing (cont.)
Fund-raising
Not-for-profit events can use fund-raising as a means of revenue generation.
Most often, not-for-profit events center around raising money for some charitable enterprise.
Cause-related marketing efforts by corporations are another instance in which fund-raising may be appropriate.
© Thomas Weibenfels/ShutterStock, Inc.

23. Career Opportunities
The event management field offers one of the most fertile areas for career opportunities.
To be successful in event management, one must be prepared to work long and typically inconvenient hours.
Careers in event management involve working with one of three types of organizations: sport management/marketing agencies, events, and charities.

24. Key Skills
Education – sport management programs with marketing, event management, business, finance
Internships – usually need internships for experience and companies hire new workers from intern pool

25. Current Issues: Niche Sports
Unique and appealing to a distinct segment of the market
Can be good for sponsorships to target specific market
Usually lack exposure and corporate support

26. Current Issues: Consolidation of Agencies
Benefits of vertical integration created significant consolidation among sport management/marketing agencies.
Larger, more diversified sport and entertainment companies purchased sport management/marketing agencies (e.g., SFX Entertainment).

27. Current Issues: Economic Recession
Changed approach of sponsorships in sports
Finance and auto industry were major sponsors, but hit hard by recession
2009 sponsorship spending fell by $100M