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

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)

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

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)

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

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)

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

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

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

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

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

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

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

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

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

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

Types of Agencies Full service General Specialty In-house

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

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

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

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

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

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