Chapter Sport Management and Marketing Agencies William A. Sutton, University of Central Florida Nicole Fowler, National Basketball Association Mark A. McDonald, University of Massachusetts Amherst C H A P T E R

Introduction A sport management and marketing agency is a business that acts on behalf of a sport property More appropriate term is sport and lifestyle management and marketing agencies Early history of agencies Arrival of IMG

Functions of Sport Management and Marketing Agencies Some agencies perform only one function (or a few) Some agencies perform all functions Agency functions –Client management and representation –Client marketing and product endorsement and placement (continued)

Functions of Sport Management and Marketing Agencies (continued) Agency functions –Event creation and development –Event management and marketing –Property representation and licensing –Television development and production –Negotiation of media contracts (continued)

Functions of Sport Management and Marketing Agencies (continued) Agency functions –Strategic planning, sponsorship solicitation and consulting –Hospitality management services –Grassroots and participatory programs –Research and evaluation –Financial planning and management

Sidebars Sport Marketing as Part of a Communication Strategy Sponsors Report and the NTIV Analysis

Types of Sport Management and Marketing Agencies Thousands of agencies and quasi-agencies Vary in size, budget, type of clientele, and scope of services Types include full service, general, specialty, and in-house See table 10.1

Full-Service Agencies Full range of services –Client management, event creation, TV development –Sponsorship solicitation, hospitality services –Research and evaluation, financial planning Perform function in house with own personnel

Full-Service Agency: IMG History Client management Event management and marketing Television Corporate marketing

General Agencies Integrated approach to development of client programs Business components of 16W Marketing –Athlete, coach, and broadcaster marketing and representation –Team and venue services –Corporate consulting and property marketing –Hospitality and event management

Specialty Agencies Velocity Sports & Entertainment SportsMark Management Group Ltd.

In-House Agencies: Professional League Departments Departments that perform sport functions on behalf of the parent company Have only one client: themselves Function as gatekeepers in reviewing opportunities presented to them Work with other units of the corporation

International Sidebar Marketing the Beijing Olympic Games Helios Partners consulting company –Contract negotiations to secure sponsorship rights –Created a marketing roadmap –Implemented plan –Sample client: Lenovo International Learning Activities

Practical Application Critical thinking in agency activities –In-house vs. outsourcing options –IMG College Ethics in agencies and revenue sources: advertising by spirit brands

Careers in Sport Management and Marketing Agencies Careers are diverse and challenging Entry requirements Educational background Required skills

Figure 10.2

Challenges Facing Sport Management and Marketing Agencies Major challenges –In-house versus outsourcing –Conflicts of interest –Mergers and acquisitions –Labor unrest Top 10 issues that agencies must address

Three Review Questions 1.What are the functions performed by sport management and marketing agencies? 2.How are specialty agencies different from full-service sport management and marketing agencies? (continued)

Three Review Questions (continued) 3.Founded in 1960, IMG benefited from being the first and best-known sport management and marketing agency. Which events reviewed in this chapter have affected the competitive situation faced by IMG?