PROFESSIONAL SPORTS Mrs. Wilson Larry A. Ryle High School Sports Marketing

Q.O.D./JOURNAL ENTRY (10 MINUTES) 10/6/14  Not all people are willing to spend large sums of money on sporting events because these people have different values (Psychographics) 1. How much would you be willing to spend on a pro sport game for tickets only? Why? 2. What are some MAJOR differences between:  Amateur Sports  Collegiate Sports  Professional Sports

MOST EXPENSIVE TICKETS  Average cost for a family of 4 to attend a professional game is $  Includes 4 avg. priced tickets, 2 small draft beers, 4 small drinks, 4 hot dogs, parking, 2 programs & 2 adult sized adjustable caps.  NFL is most expensive- $  Most expensive team to see? New York Jets - $628.90

HOW BIG ARE PRO SPORTS? $$$ 1. Lionel Messi - FC Barcelona  Contract is  $400 Million  $50.7 per year  $650K per game 2. Miguel Cabrera - Detroit Tigers   $292 Million $180K per game

BIG LEAGUE PRICING  Marketers consider the potential revenue of a pro team and that’s how they determine prices.  For example, a team fresh off a national championship will probably have a sold out next season because the fans will expect continued success.

BIG LEAGUE PRICING  When you have a team that is continually successful, owners of the team must consider the cost of obtaining the top pro athletes.  Multimillion $$ contracts  huge ticket sales  Corporate sponsorships & T.V. revenue for success  In order to keep all this going, you must have a winning team!!!

HOW CAN AN NFL TEAM HELP A CITY FINANCIALLY? 1. Everyone and everything involved with a team (staff, headquarters, practice areas) are within the home city area 2. The stadium/arena is used for events other than those for which it was built 3. The team attracts other business development like hotels, restaurants & shops (Think the Banks project next to the Reds stadium)

THE BANKS PROJECT

Q.O.D. 10/27/11  What are the three ways a team can help a city financially?

WHAT ARE TEAMS WORTH?  In 2014, the Dallas Cowboys are the most valuable NFL team. They are worth 3.2 Billion (  An average game ticket? $160  New England Patriots  $2.6 B  Washington Redskins  $2.4 B  St.Louis in last place, worth a measly $930 Million  Side Note: When people purchase NFL teams, they must pay a price for the franchise of the team and pay for the stadium.  In 1989, owner of the Cowboys, Jerry Jones purchased the stadium for $75 M and the franchise was $65 M.

PERKS & PAYOFFS  In addition to usual benefits of being an NFL player, like THEIR SALARY, they receive other benefits  Perk- payoff or profit received in addition to a regular paycheck  Example  employees of the aquarium might receive free tickets for their family  Example #2  One of the perks of my jobs is I have summers off.

Q.O.D./JOURNAL 10/8/14 THE SUCCESS OF A PRO TEAM  The success of a pro team depends upon support form the whole community  What celebrity in Cincinnati would you use to encourage tax payers to vote for a new stadium that would increase taxes ?  Write in your Q.O.D./Journal section what the letter would say.  That’s how they paid for the Bengals stadium  Increased Ohio’s sales tax from 6% to 6.5%.  KY’s is 6%.

VIDEOS  

LETS TALK ABOUT OUR EMOTIONS  Do you have emotions toward to a pro or college team?  How do fans become “die-hard” fans?  How would a “die-hard” fan feel if that team left the community? YOU must understand that the fans/public make a large financial commitment for a pro team.

THE GOAL…  The goal for any business is…. PROFIT (to make money)  Professional teams = Businesses  WINNING IS EVERYTHING  THE MORE YOU WIN, THE MORE YOU MAKE.

CONTRACTS  Contract- agreements enforced by law that detail the transaction of business.  Has to be worded into one interpretation  This means it must be very clear so both parties fully understand  Examples: Performer contracts, concessions, sponsorships, broadcast rights and building contracts

MAJOR DIFFERENCES IN MAJOR SPORTS  NFL- (National Football League)  During draft, usually drafts 60+ players  Money IS NOT guaranteed  This is why they want big signing bonuses  When the player is drafted, they can immediately begin playing  If they are injured, kicked off team, traded, whatever, their money is over.  They are no longer are paid  Draft is Televised  Only paid during season, not during off season

MAJOR DIFFERENCES CONT’D.  MLB-(Major League Baseball)  $$$ is guaranteed once contract is signed  MLB is a future sport  Reason for this is:  even if a player is the top draft pick, many players spend 1-2 years in the minor leagues  Players get “traded up” and “traded down” ALL THE TIME.  Draft is not televised

MAJOR DIFFERENCES CONT’D.  NBA-  Usually contracts players  Much more difficult to actually have opportunity to play ( only top 12 players actually play on consistent basis)  $ is guaranteed  When drafted, they can play immediately  NBA draft is a major television event  Even if they don’t play, they still are paid

IN THE COMPUTER LAB…  Pick 2 athletes from the major sports:  NFL  NBA  MLB  NHL  Look up information about the player such as:  Year drafted  Position in the draft  Home town  Amount of contract  Sign-on Bonuses  Sport they played  Injuries  If they got passed up  Do they still play? Are they successful? Do they experience much playing time?  This information needs to be presented in an Excel Document