Chapter 6 6 Professional Sport James M. Gladden, Indiana University-Purdue University-Indianapolis William A. Sutton, University of Central Florida C H A P T E R

Name all sports that pay athletes full time to play.

Nature of Professional Sport Occupies powerful role in society – entertainment, socialization Three principles that form the professional sport industry –Labor – collective group of athletes in sports who unionize so they can bargain collectively with league owners –Management – collective group of ownership utilizing a league commissioner –Governance – leagues that attempt to regulate roles, but not control labor and management

History of Major Professional Sport Ancient history (Greek and Roman culture) Inclusion (and exclusion) Race, Gender, Religion, Sexuality hQE4&list=PLWQ7rH2iN60H_ojqmmRTUE0 En9EsosrTAhttp:// hQE4&list=PLWQ7rH2iN60H_ojqmmRTUE0 En9EsosrTA Buck O’Neil Factors affecting growth – Media and Corporate Sponsorship

4 Unique Aspects of Professional Sport that make it Different from other Industries Interdependence Structure and governance Labor–management relations Role of electronic and new media

Interdependence The need of the teams to compete and cooperate simultaneously League think – the notion that teams must recognize the importance of their competition and share revenues Luxury Tax – Device used by MLB and NBA to tax the payrolls of wealthy teams Revenue sharing – The successful/rich redistribute profits to the struggling/poor

Structure and Governance League commissioner – enforces rules and shapes policy Board of governors or committee structure composed of the team owners – subgroup of owners make policy A central administrative unit – negotiates contracts and bargains with unions

Labor–Management Relations Baseball’s antitrust exemption – defy the Sherman Antitrust Act Collective bargaining – Right to self organize, bargain collectively, activities to improve situation Free agency – Bid upon for services (Curt Flood) Salary caps – league-wide payroll thresholds Player draft – system to distribute new talent

Table 6.2

Role of the Electronic and New Media Importance of television – MNF, ESPN, Yahoo Sports, pay-per-view Emerging sources of media coverage  Social Media  Satellite Coverage  Internet Access

Revenue Sources for Professional Sport Teams Media contracts Gate receipts Licensing and merchandising revenues Sponsorship

Table 6.3

Table 6.4

Future Challenges Facing Professional Sport Maintaining labor–management harmony in the face of rising salaries Developing new revenue streams Meeting the challenges created by technology Dealing with globalization

Career Opportunities in Professional Sport Executive positions –Chief executive or operating officer (CEO, COO) –Chief financial officer (CFO) –Chief marketing officer (CMO) –General counsel –General manager (continued)

Career Opportunities in Professional Sport (continued) Player personnel positions Business positions

Player Personnel Positions Medical, training, and team support Coaching staff Player education and relations Video support staff Stadium and facility staff

Business Positions Ticket and corporate sales Game experience Advertising and promotions Community and media relations Database marketing coordinator Hospitality coordinators Ticketing

Three Review Questions 1.How is the management of professional sport different than the management of Microsoft? 2.What has been the impact of the Sports Broadcasting Act of 1961? How does it affect media rights agreements today? 3.Can professional sport continue to develop its revenues? Identify the revenue sources that can be enhanced.