1. Developing Public Support

2. Class Overview 1 History of Government and Sports Sports as part of the national, state, and local dialogue. Governments funding the building of new venues. What Are the Current Problems? Governments are running budget deficits. Sports are considered to be “non-essential” spending. New regulations are coming down the pipeline. Dealing With The Changing Dynamics Positioning sports as a benefit for the public good. Organizations need to prepare for legislation that impacts their sports. Understanding the need for public affairs employees and community outreach.

3. 2 Much of the world’s greatest historical architecture comes from sports. Politicians use sports for the glorification of city, state, or country. Sports And Government Have Always Interacted WWII – Athletes become icons of shared sacrifice in World War II. Baseball – Jackie Robinson become a symbol of progress in race relations. Olympics – ’36, ’68, and ’72 Olympics are known for their historical significance outside of the competitions Sports As A Vehicle For Political Gains / Social Change Sports teams become highly visible attractions and prized possessions both inside and outside of local communities. Sports As City, State, and Town Identity Anti-Trust Exemptions allow for some anti-competitive practices in a variety of areas. Most industries do not have these exemptions. Sports Benefiting From Laws Passed In Their Favor History Of Sports And Governments / Politics

4. How Does Public Finance of Sports Organization Work? 3 Why do governments take on so much debt to finance sports organizations’ venues? Tax Reform Act (TRA) of 1986 TRA prevented the government from issuing tax exempt bonds if debt was being repaid by private sports teams’ revenues Legislation was supposed to prevent publicly financed venues because sports teams cannot pay off municipal debt TRA Impact TRA actually had the opposite effect. Over 200+ venues have been built with public financing Governments expect to use new tax revenues from economic growth to pay off the debt.

5. Consequences -The Decline of Publicly Financed Stadiums 4 Many stadiums do not generate new development. Many cities, states, and towns do not see revenue multipliers. Multiple cities paying debt on “non-essential” spending Why is public support of sports organizations waning? Case Study – Hamilton County, Ohio Case Study – Hamilton County of The

6. How Can Sports Organizations Maintain Public Support? 5 Sports organizations can create new opportunities for communities to benefit from public investments Sharing Means Caring Sports organizations can provide unique sponsorship and marketing platforms to achieve public policy goals Doing Well By Doing Good Sports organizations can help enhance the identity of the countries, cities, and towns in which they operate Identity Marketing Sports organizations directly tap into communities to conduct fundraising activities and build goodwill. Launching Grassroots Campaigns Sports organizations created or increased number of positions focused on government issues Government Focused Positions Sports organizations evaluate how lobbying can help achieve their goals. Straight Talk on Lobbying

7. Doing Well By Doing Good / Identity Marketing 6 Sports = Non- Essential Spending Sports = Essential to the Public Good Governments support activities that benefit the public even when not profitable

8. Launching Grassroots Campaigns 7 New crowdfunding platforms make it easier than ever for sports organizations to tap directly into local communities for support. Kickstarter There already hundreds of sports projects with “sports” label in Kickstarter that have raised thousands of dollars. ThrillPledge The New Zealand sailing team raised $42,445 to compete in Youth America’s Cup Regatta RallyMe The U.S. women’s ski jumping team raised $32,950 through a “rally” supporting the team’s debut in the 2014 Sochi Olympics.

9. Straight Talk on Lobbying 8 The Real Lob City How governments are impacted by lobbyists State Government Case Study – Ultimate Fighting Championship

10. Dealing With The Crisis – Taking Control 9 How Can Sports Organization Handle Public Support Challenges? Establish Public Affairs Departments Decrease Reliance on Public Subsidies – Cal Bears Case Study Appeal To Non- Profits For Funding Create Own Lobbying Entities

11. Conclusion 10 Interactive Relationship Sports organizations have an interactive relationship with their local, state, and national communities that includes significant economic ties Doing Well By Doing Good As bad publicity continues to surround public investment in local teams, organizations must serve as a positive icon for the city, contribute to the community, and seek to make the public’s investment worthwhile New Strategies In the face of increased resistance to public support, organizations are increasingly turning to innovative bond programs and lobbying entities, and are also putting more focus into public affairs