1. 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

2. Nature of Professional Sport Occupies powerful role in society Three principles that form the professional sport industry –Labor –Management –Governance

3. History of Major Professional Sport Ancient history Inclusion (and exclusion) Factors affecting growth

4. Unique Aspects of Professional Sport Interdependence Structure and governance Labor–management relations Role of electronic and new media

5. Interdependence The need of the teams to compete and cooperate simultaneously League think Revenue sharing

6. Structure and Governance League commissioner Board of governors or committee structure composed of the team owners A central administrative unit

7. Labor–Management Relations Baseball’s antitrust exemption Collective bargaining Free agency Salary caps Player draft

8. Table 6.2

9. Role of the Electronic and New Media Importance of television Emerging sources of media coverage

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

11. Table 6.3

12. Table 6.4

13. 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

14. 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)

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

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

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

18. 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.