1. and Marketing Agencies
chapter 6
Sport Management
and Marketing Agencies
Mark A. McDonald, William A. Sutton

2. Introduction
A sport management and marketing agency is a business that acts on behalf of a sport property
Sport property can be
A person
A corporation
An event
A team
A place
A concept
(continued)

3. Introduction (continued)
Actions undertaken may include
Representation
Negotiation
Sales
Licensing
Marketing
Management

4. Functions Client management and representation
Client marketing and product endorsement
Event creation and development
Event management and marketing
Property representation and licensing
Television development and production
(continued)

5. Functions (continued)
Sponsorship solicitation and consulting
Hospitality management services
Grassroots and participatory programs
Research evaluation
Financial planning and management

6. Client Management and Representation
Represents a client in contract negotiations and marketing decisions
Negotiations may be between
player and team
license and licensor
product and endorser
(continued)

7. Client Management and Representation (continued)
Functions involve
Financial planning
Investment and management
Marketing
Personal appearances
Other forms of revenue production and management

8. Client Marketing and Product Endorsement
Involves the agency in the promotion and total marketing of the client
For athletes
Endorsement opportunities
Product endorsement
Personal appearances
Book contracts
Interview and feature stories

9. Event Management and Marketing
Involved in activities such as
Golf and tennis tournaments
Festivals
Bowl games
Functions include
Tournament operations
Hospitality and entertainment
Sponsorship and ticket sales
Licensing and merchandising
Television production, public relations, promotion

10. Property Representation and Licensing
Property can be a facility, event, team, athletic program, band or concert tour, and so on
Functions include
Sales of rights fees
Promotional licensing opportunities
Sponsorship sales
Signage and advertising agreements
Endorsements

11. Television Development and Production
Agencies have recognized the opportunities that television presents
Cable
Satellite
Pay-per-view
Example
The emergence of 12-team conferences has resulted in lucrative markets for televised conference championships

12. Sponsorship Solicitation and Consulting
The most common functions are the solicitation and securing of corporate sponsorships
Particular properties may assist in achieving corporate goals and objectives

13. Hospitality Management Services
Functions include
Transportation and other logistical issues
Menu and food service planning and management
Corporate sponsor entertainment
Special auxiliary event creation and management
Housing
Awards, gifts, and recognition programs

14. Grassroots and Participatory Programs
Designed to build a following
Essential to long-term growth
Mostly aimed at children and adolescents who are potential consumers in the future
Often targeted to certain demographic groups and ethnic markets

15. Research and Evaluation
Research is critical to success and aids decision making
Forms of research
Mail surveys
On-site surveys
Personal interviews
Pre- and posttest event impact analysis
Focus groups

16. Financial Planning and Management
Highly specialized service involving
Accountants
Financial planners and advisors
Investment specialists
Portfolio managers
Few agencies specialize in this type of service

17. Types of Agencies
Full service
General
Specialty
In-house

18. Full-Service Agencies
In-house personnel perform a full range of services
Client management
Event creation
Television development
Sponsorship solicitation
Hospitality services
Research and evaluation
Financial planning

19. General Agencies
Uses an integrated approach in the development of client programs
Marketing and representation of athlete, coach, or broadcaster
Team and venue services
Corporate consulting and property marketing
Hospitality and event management

20. Specialty Agencies
Specializes in the types of services it provides or in the scope of its clientele
Sponsorship and event marketing
Event management and hospitality

21. In-House Agencies
Departments of companies that perform many sport marketing functions on behalf of the products and divisions of the parent company
Brand or product managers
Advertising departments
Public relations departments
Community affairs departments

22. Careers Within an Agency
Typically hire experienced people
Degree
Business degree with a marketing background is preferred
Sport management degree with several electives in business is desirable
Advanced degrees in business, law, or sport management are an advantage
Skills
Figure 6.2—organizational, technical, people

23. Challenges Facing Agencies
In-house versus outsourcing
Control in generating more income and cutting expenses
Conflicts of interest
Agency under contract of an athlete and several teams
Mergers and acquisitions
Trend toward aggressive mergers and acquisitions
Labor unrest
Downfall of a strike
Legislative and judicial review
Elimination of tobacco and alcohol signage