Chapter 1 The History of Sport Management

Chapter 1 The History of Sport Management

Introduction Roots of Sport Management Structures
Management structures include clubs, leagues, professional tournaments Primary theme of chapter Evolution resulting from broad social changes and/or to address specific issues Secondary themes: Honest play and inclusion

The Club System England
Birthplace of modern sport and sport management 18th century Development of sport clubs with limited membership 19th century Continued club evolution with standardizing of rules, settling disputes, and organizing schedules

Thoroughbred Racing Races drew broad and diverse audience
No admission charged Local club system initially Racing existed for entertainment only, not financial gain 1830s Rail system allowed horses to compete nationally Desire of owners to breed and train fast horses and the increasing complexity of gambling lead to more complex club system

The Jockey Club Settled disputes, established rules, determined eligibility, designated officials, regulated breeding, and punished unscrupulous participants Organized, sponsored, and promoted local events Met need for a strong national governing body to establish rules, standards, and a mechanism for resolving disputes Served as model for wider sport management practices in England

The Modern Olympic Games
International club event, with little resemblance to ancient Olympic Games First Modern Olympics in 1896, but the revival can be traced back to at least 1850 with club-based Olympic festivals in England Founder Pierre de Coubertin, inspired by English revivals and Victorian notions of character building and peace movements through sport, introduced concept of amateur Olympic Games every 4 years

Present-Day Club Structure
Commitment to serve broad membership and manage elite sport enterprise Clubs organize youth teams and academies, adult recreational leagues, and social events for members Large built-in memberships and loyal fan bases Characterized by nonprofit status and exclusive membership Augusta and male-only membership Change from European club system to U.S. league system

American Structures European club system did not suit the United States Lack of aristocratic tradition and prohibition against gambling Evolution of harness racing, sport of the common person Better spectator sport Sprint vs. 4-mile race; horses could compete daily, large field of competitors Managed by track owners and race promoters Willing to create spectator interest for sport Issues of race fixing, management lacking credibility

Leagues Baseball was first to adopt league system
Cincinnati Red Stockings: First pro team Some teams in the league paid and some did not—created controversy 1871: Creation of National Association of Professional Baseball Players Importance of “breakeven” financial interests of individual clubs © Jones and Bartlett Publishers

William Hulbert Czar of baseball
1876: Took over management of National League of Professional Baseball Players Believed stability achieved only if teams were run like businesses Teams should compete against each other and not collude Understood that without strict rules forcing honest competition, collusion would occur

William Hulbert (cont.)
Also believed: Owners must take some financial risk: Abandoning seasons early to prevent losses in short term eroded long-term faith of public Owners must field competitive teams to be profitable. Integrity of baseball was suspect as long as the players’ honesty was questionable: Gambling prohibited and ticket prices raised

Success of League Excitement of pennant race Favorable media attention
Appealed to fans’ loyalty and pride in their cities Early form of revenue sharing Rules that distributed talent

Leagues Today Successful contemporary commercial sport leagues depend on consolidated league play with strong centralized control and regulation Audience has changed Public’s perception of locus of honest effort resides more with the players than with ownership structure Single-entity structures: MLS, MLL, AFL

Professional Sport Tournaments
Professional Golf Early golf professionals were instructors and caddies. Professional leagues failed to capture public interest or attract golf professionals. Attempts to generate gate revenues at tournaments failed. Stability of tournaments was achieved when prize money was put up by companies and corporate sponsors. © LiquidLibrary

Corcoran’s Tournaments
Fred Corcoran: Architect of golf tournament Golf tournament was medium through which celebrity, politician, manufacturer, charity, town, or product gained exposure Used athletes and golf tournaments to sell advertising space to the public Bing Crosby and Bob Hope created charity golf tournaments in pro-am format for WWII fund-raising

Corcoran’s Tournaments Continue After War Ends
Good business = Tax deductions Charities encourage volunteers and good publicity for tournaments Golf equipment manufacturers paid Corcoran to create golfer association and arrange tournaments using prize money as player payments to reduce cost of hiring player representatives 1950s press changes policy and begins naming tournament sponsor not location = free publicity

Tournaments Today Golf tournaments have evolved into corporate celebrations of golf and products PGA Tour viewed as private group Set rules of eligibility Associations not as exclusive as private clubs (Casey Martin) Trend moving away from nonprofit private associations and toward marketing agencies and/or broadcast media

Importance of Women Heraea Games: Intercollegiate Sport:
The Sixteen Women Intercollegiate Sport: Christine Grant and Judy Sweet National Intramural-Recreation Sports Association (NIRSA): Anette Akins, Mary Daniels, Juliette Moore

Importance of Women in Sport Management
Sport management industry: Effa Manley of Newark Eagles (Negro League) Billie Jean King (WTT, WSF) Lesa France Kennedy (NASCAR) Stephanie Tolleson (IMG) Dawn Hudson (PepsiCo)

Academic Field Continuing growth of sport industry and its importance to numerous sponsors and institutions created demand for the systematic study of sport management practices. 1957: Walter O’Malley 1966: James Mason; first master’s program at Ohio 1971: University of Massachusetts

Academic Field (cont.) Current status
More than 210 programs nationwide North American Society for Sport Management (NASSM) Program evaluation Globalization Sport management degree programs throughout Europe SMAANZ EASM

Chapter 3 Marketing Principles Applied to Sport Management

What Is Sport Marketing?
Create demand Obtain the best possible understanding of what consumers want Includes the marketing of products, such as equipment, apparel, and footwear services, such as skill lessons or club memberships entities, such as leagues, teams, or individuals

Evolution of Sport Broadcasting
From pure, factual reporting aimed at sport fans to sport entertainment aimed at masses Roone Arledge: ABC Monday Night Football; combined entertainment and sports Success of sports in prime time ESPN, ESPN2, ESPN Classic, ESPN News, ESPN Zone, ESPN.com © Comstock Images/Getty Images

Sport Sponsorship Sponsorship:
The acquisition of rights to affiliate or directly associate with a product or event for purpose of deriving benefits related to that affiliation Albert G. Spalding Use of the word official Mark McCormack Built IMG through golfer Arnold Palmer Nike and Air Jordan Packaging of the Nike brand, product, advertising, and athlete into one personality

Product Extension and Promotion
Bill Veeck Team must provide reasons other than the game itself for people to attend and support franchise. Create the greatest joy for the greatest number of people Ensure a pleasurable attending experience Create conversation

Research in Sport Marketing
Matt Levine Credited with formalizing customer research in sport industry; audience audit, intercepts, focus groups Pass-by interviews: On-site interviews in heavy traffic areas such as malls San Jose Sharks logo and colors changed as a result of pass-by interviews

The Marketing Mix Controllable variables that company puts together to satisfy a target group 4 Ps: Product (actual event/experience) Price (depends on value or perceived value) Place (preselling and exceptional locations) Promotion (advertising, personal selling, publicity, and sales promotion)

Segmentation Identifying subgroups of overall marketplace based on age, income level, ethnicity, geography, and/or lifestyle Ethnic marketing Growth of Hispanic population, ESPN Deportes Generational marketing Generation Y and action sports

Fan Identification The personal commitment and emotional involvement customers have with sport organization Enhanced long-term loyalty in sport fans Sponsorship opportunities resulting from ability to tap into strong emotional connection between a fan and his or her sport team © Photos.com

Relationship Marketing
Aids in fostering identification with sport teams Begins with customer and encourages integration of the customer into the company Builds relationships through communication, satisfaction, and service Examples: Loyal fan gift rewards, special access to players, and special access to information

Service Quality Ability to provide consistent high-quality service becomes source of competitive advantage for firms Aftermarketing: Customer retention activities for customer after purchase Many choices available to customers Best plan for retention is to ensure that fans become “raving fans”

Key Skills Oral and written communication Computer capabilities
Data analysis Personnel management Sales Education Understanding of the sport product © Photos.com

Current Issues: Cost of Attendance
Drastic increase in cost of attending MLB, NBA, NHL, and NFL games Increasing evidence that sport fans are not willing or able to pay such prices Do not see the value of attending a game Significant challenge for sport marketers is to develop relationship marketing strategies Key challenge for anyone in team sport marketing is increasing revenues for sport teams

Current Issues: Database Marketing
Creating a database that includes consumer names, addresses, and other demographic information Managing database by developing and delivering integrated marketing programs Including promotions and sales offers to targeted consumer segments Database marketing is often an integral factor in a company’s decision to sponsor an event

Current Issues: Cluttered Marketplace
Numerous and varied entertainment options are available to a consumer with leisure time Added technological options for the next generation of sport fans Marketplace cluttered for sponsors Rise in number of athletes and events, increase in number of advertising opportunities available Future Heightened focus on marketing mainstream sports to youth; increased challenge for sport entity to demonstrate how sponsor will benefit from a sponsorship

Current Issues: Image Development and cultivation of a positive image is becoming increasingly important in sport marketing. Cluttered marketplace: Imperative that corporations identify sports, events, or athletes that have unique images Corporate and athlete ethical scandals Result: Corporations are more discerning in ways that they spend their sponsorship and endorsement dollars; they may now spend more on nonprofit organizations and causes.

Financial and Economic Principles Applied to Sport Management
Chapter 4 Financial and Economic Principles Applied to Sport Management

WLR42-4_WILLIAMS_FINAL_ME_8-27-06 8/31/2006 5:26:33 PM
The Sports Business Industry – over $213 BILLION in revenue. This make the Sports Industry 2X the size of the Automotive Industry. Sources of Revenue: Advertising - $27.43 billion Operating Expenses: Endorsements - $897 million (Not travel) Sporting goods - $35.62 billion $22.98 billion Facility construction - $2.48 billion 15, Internet - $239.1 million –Sale of Athletic and Licensed goods - $10.50 billion Sports clothing: Media broadcast rights - $6.99 billion $10 billion Professional services - $15.25 billion Spectator spending - $26.17 billion Sponsorships - $6.4 billion Medical spending - $12.6 billion Travel - $16.06 billion Multimedia - $2.12 billion Gambling - $18.90 billion

Introduction Financial aspects of sport world shown in the media can seem staggering to the average person. Sport industry is definitely a major force in North American business, though it is difficult to get an accurate, reliable measure of its magnitude. There is a difference between an industry’s sales and its value-added. Financial boom has created a great need for people with training in finance. Average Player salary in the NBA now exceeds $4 million per season. Alex Rodriguez signed a contract in 2000 for 10-years for more than $20 million per year. Arizona Cardinals opened a new stadium in 2006 that cost more than $455 million; naming rights went to the University of Phoenix for $7.7 million per season for the next 20 seasons. NFL’s TV contract calls for the league to be paid more than $3 billion per year, approximately $100 million per team per year. College Football’s BCS championship game receive payouts of more than $14 million per team. NCAA has an 11-year contract with CBS to televise the NCAA Men’s Basketball Tournament which pays the NCAA about $6 billion over the life of the contract. Ohio State’s athletic budget exceeds $90 million per year. According to “SportBusiness Journal”, the total spending in the sports industry were approximately $214 billion in 2006, up from $196 billion in The U.S. Dept. of Commerce estimated gross economic output of the sport, recreation, and entertainment to be around $183 billion in 2005.

Key Concepts: What Is Finance?
No single, universally agreed upon definition Generally refers to two primary activities of an organization: How an organization generates the funds that flow into that organization How these funds are allocated and spent once they are in the organization

Total Output versus Value Added
There is a difference between an industry's sales and its value added. For example, the golf club manufacturer mentioned earlier may have bought raw materials (e.g., graphite, titanium, rubber) from its suppliers for $300, used these materials to manufacture the clubs, and then sold the clubs to the retailer for $1,000. Although the manufacturer's sale totals $1,000, its value-added is only $700, because $300 of the $1,000 sale prices was attributable to those outside the industry. Department of Commerce estimates total output for the sport industry in 2005 to be $183 billion, it estimates the value-added to be only $114 billion. This $114 billion represents about 0.9% of the U.S. gross domestic product (GDP).

Key Concepts: Financial Flows in Sport Organizations
Profits/Income Difference between financial inflows (Revenues) and outflows (Expenses) Assets: Anything an organization owns that can be used to generate future revenues Teams can fund or “finance” assets in many ways: Owners’ Equity: The amount of their own money owners have invested in the firm Debt: Amount of money an organization borrows College sports are nonprofit. Use budgetary transfers from the university and other innovative methods

Key Concepts: Some Typical Financial Decisions
Many financial decisions ultimately revolve around management of assets Return on Investment (ROI): Expected dollar-value return on each alternative investment Risk Future benefits of investment cannot be known at time of investment Owners must decide how much they will finance with their own money and how much with borrowed money Debt carries more risk than equity does

Key Concepts: The Economics of Sports
Spectator sport industry is organized much differently from nonspectator industry and from rest of American business. The existence of one franchise benefits the others. © David Lee/ShutterStock, Inc.

Key Concepts: The Economics of Sports (cont.)
Sport leagues considered monopolies They face no direct competition Gives them greater bargaining power when dealing with stakeholders (e.g., players, broadcasters, corporate sponsors, and local governments) and allows them to potentially charge higher prices Allows them to earn much higher profits than would otherwise be the case, as well as enact financial policies (e.g., salary caps, revenue sharing) that would not be possible with direct competition Only legal monopolies in United States

Salary Cap Salary Cap – A limit to the total amount of money that teams are allowed to pay their players. This is usually defined by the collective bargaining agreement between the league and their represented teams. The Salary cap varies each year; a percentage of the league’s revenue from the previous season. (i.e. NBA is $ million based upon ratified Dec contract.)

Salary Cap – NBA Cont’d League began salary cap in for a competitive balance among teams; the cap then was $3.6 million in total payroll. Soft versus Hard caps: Soft caps allow teams to exceed the salary cap to sign players—this builds fan support. Hard caps: NFL and NHL offer very few circumstances under which teams can exceed the salary caps.

Key Skills No matter what type of sport organization involved, the finance function is crucial Those interested in a career in sports should have solid grounding in: Corporate finance Managerial and financial accounting Advanced use of spreadsheet software For those interested in working in spectator sports, familiarity with sport economics is beneficial

Current Issues: Can Growth Continue?
There has been an explosion of spending on recreational and fitness activities. The U.S. population has aged, overall affluence has increased, and societal concerns about health-related issues have grown. For individual segments of nonspectator sport industry, predicting trends is a factor. Capital investments are made now, but payoff does not occur until later. Spectator sport industry has had tremendous revenue growth in past 15 years as the result of increased popularity, premium ticketing, broadcast contracts, sponsorship sales, stadium naming rights, and so on.

Current Issues: Challenges
Increasingly large capital investments are needed to be able to continue to generate revenues. College athletics, taken as a whole, continues to be unprofitable. The revenue-generating abilities of football and men’s basketball are insufficient to compensate for deficits of other sports. Society’s concerns over health-related issues has grown resulting in increased spending on recreational and fitness activities. Each non-spectator sport will need to predict trends that affect their specific sport. Will new recreational sports emerge? This affects capital investments, borrow now and pay years later? Look at college sports money makers – Football and Basketball growth in past 15 years. (Table 4-3on pg 72) Division I (I-A and I-AA) Football leads the revenue ( $52.7 million) way while women’s basketball grew % per year, the largest growth. Spectator sports revenue increased as a result of gate receipts (Tickets prices – due to demand and scarcity of tickets in most locations.), broadcast contracts (NCAA and CBS Men’s Basketball Tournament – $140 Million per season; 11-year - $540 Million per year expires in 2013) (BCS Games - $80 Million per year to televise four Bowl Championship series; 2007 Fiesta Bowl - $14 Million to each team versus 1991 Fiesta Bowl - $2 Million, sponsorship sales, stadium naming rights (2006-NY Mets new stadium – Citigroup $20 million per year, etc. (Univ. of Tennessee – Premium club for football - $25,000 donation + $4000 annually.) Some University ticket prices are higher than some NFL franchise ticket prices. © Frank Boellmann/ShutterStock, Inc.

Current Issues: Challenges (cont.)
Competitive balance Entertainment value connected to “uncertainty of outcome” Differences in market sizes cause differences in revenue potential, which cause differences in ability to pay players, which cause differences in on-field performance Salary cap, revenue sharing, luxury tax

Project-Stadium Construction
Read and summarize an article relating to stadium construction (new or refurbishment) in sport. Specifically, address the financial aspects of stadium funding, public funding versus private funding, reasons, sources, and so on.

Chapter 5 Legal Principles Applied to Sport Management

Introduction Sport law
Application of existing laws to the sport setting A few laws specific to sport industry (regulation of boxing and sport agent industries, Title IX, etc.) When a dispute arises over interpretation of a rule or regulation, sport lawyers often represent both the governing body/association and the participant(s) Involvement of sport lawyers occurs because sport organizations hire lawyers to draft their rules and regulations; thus, need lawyers to interpret them

History Tort law cases involving participation in sports and games date from early evolution of tort law. Many of earliest U.S. lawsuits in sport industry involve professional baseball. Players challenged owners on reserve system that prevented players from free agency. Owners challenged each other on business of sports. First sport law course was offered in 1972 at Boston College Law School.

History Considerable growth over last 30 years caused by:
Legal profession more specialized Amount of litigation and diversity of cases in sport industry have increased as more people rely on the courts to resolve disputes Many athletic associations have adopted own governance systems with rules, regulations, and procedures that are based on the U.S. legal system Skills in legal education are beneficial to many positions in sport industry

Key Concepts: Risk Management
Developing management strategy to maintain greater control over legal uncertainty Prevention: Keeping problems from arising Intervention: Having action plan to follow when problems do occur DIM process: Develop, Implement, and Manage risk Include all employees in the three-stage process

Key Concepts: Judicial Review
Occurs when plaintiff challenges a rule in sport organization and court determines whether it should review the sport organization’s decision Historically, courts decline to overturn the rules of voluntary athletic organizations unless certain conditions exist Plaintiff’s interest is to keep rule from applying or to force athletic association to apply it differently Plaintiffs seek injunction: An order from the court to do or not do particular action

Key Concepts: Judicial Review (cont.)
Court will intervene if athletic organization: Violates/misapplies its own rule Violates a statute Violates public policy Violates constitutional law and it’s a state actor Acts as arbitrator or in a capricious manner Exceeds the scope of its authority

Key Concepts: Tort Liability
An injury or wrong suffered as the result of another’s improper conduct Tort law provides monetary damages to compensate an injured person (plaintiff). Intentional torts occur when a person purposely causes harm to another or engages in activity that is substantially certain to cause harm. Negligence is an unintentional tort and is the most common tort that sport managers encounter.

Key Concepts: Tort Liability Negligence
Sport managers are negligent when: They commit an act/omission causing injury to a person to whom they owe a duty of care Negligence imposes a duty to refrain from careless acts Plaintiff must show that sport manager (defendant) owed plaintiff a duty of care and breached it A duty of care arises from relationship between plaintiff and defendant (e.g., arena operator and fan). When a duty is breached and that breach is the cause of an injury for which there are monetary damages

Key Concepts: Vicarious Liability
Allows plaintiff to sue superior for the negligent acts of a subordinate Employer need not be negligent to be liable Three defenses available: Employee was not negligent Employee was not acting within scope of employment Employee was an independent contractor

Key Concepts: Agency Law
Agency describes a relationship in which one party, the agent, agrees to act for and under the direction of another, the principal. Purpose of agency law is to establish duties that principals and agents owe each other. Agency law is an important component of player representation industry.

Key Concepts: Agency Law (cont.)
Fiduciary duties inherent in principal–agent relationship Principal’s fiduciary duties: 1. To comply with a contract if one exists 2. To compensate the agent for his or her service 3. To reimburse the agent for any expenses incurred while acting on the principal’s behalf

Key Concepts: Agency Law (cont.)
Agent’s fiduciary duties: 1. To obey 2. To remain loyal 3. To exercise reasonable care 4. To notify 5. To account (for information and finances on a reasonable basis)

Key Concepts: Contract Law
Contract: Written or oral agreement between two or more parties; creates legal obligation to fulfill the promises Sport managers negotiate and enter into contracts regularly with or without legal advice. A valid contract must have the following elements: Offer and acceptance (mutual assent) Consideration (value) Capacity Legality (subject matter legal and not against public policy)

Key Concepts: Constitutional Law
Developed from precedents established by courts applying language of U.S. Constitution and state constitutions to actions and policies of governmental entities Four constitutional challenges arise in sports: Due process Equal protection The right to be free from unreasonable searches and seizures Invasion of privacy

Key Concepts: Constitutional Law State Action
U.S. Constitution and state constitutions do not apply to private entities. Exception: In some cases a private entity is so enmeshed with the public that courts apply constitution to private entity. When a private entity meets this standard, it is called a state actor.

Key Concepts: Constitutional Law Due Process: 5th and 14th Amendments
The right to notice and a hearing before life, liberty, or property may be taken away Athletic associations may have an impact on liberty and property interests protected by due process clauses in Fifth and Fourteenth Amendments Right to play, right to be free from stigma, right to work and earn salary, and so forth

Key Concepts: Constitutional Law Equal Protection: 14th Amendment
No person shall be discriminated against unless a constitutionally permissible reason for discrimination exists Standards of review for discrimination Strict scrutiny: On the basis of race, religion, or national origin Legitimate interest: On the basis of gender; discrimination can occur only if legitimate interest for doing so exists Reasonable basis: Discrimination on any other status or classification

Key Concepts: Constitutional Law Search and Seizure: 4th Amendment
People have the right “to be secure in their persons, houses, papers, and effects against unreasonable searches and seizures.” Sport example: The act of taking the athlete’s urine or blood for drug testing Several courts determined that private athletic associations (such as NCAA) or public high school drug testing programs do not violate state constitutional rights.

Key Concepts: Constitutional Law Invasion of Privacy
There is no specific amendment for invasion of privacy; Court has implied one from Constitution. Plaintiff must establish that invasion is substantial and in area for which there is an expectation of privacy. Sport cases most often arise as challenges to drug testing programs. U.S. Supreme Court has held drug testing of high school athletes is not invasion of privacy (1995).

Key Concepts: Title IX Comprehensive statute aimed at eliminating sex discrimination in educational institutions that receive federal funding In athletics, cases focus on three areas: Proportionate scholarship distribution Equal treatment, benefits, and opportunities given in specific program areas Degree to which educational institution has equally and effectively accommodated the interests and abilities of male and female students

Key Concepts: Antitrust
Sherman Antitrust Act (1890) goal: Promote competition in the free market; break up business trusts and monopolies and prohibit anticompetitive activity by businesses Application of antitrust laws to leagues left indelible mark on structure and nature of labor–management relations Just one major professional league for each sport; thus, their domination of the market gets challenged as monopolies violating the Sherman Act

Key Concepts: Antitrust Antitrust Exemptions
MLB is exempt from antitrust laws as a result of a 1922 Supreme Court Federal Baseball decision. All professional sport leagues and tours are subject to antitrust rules Curt Flood Act (1998): Legislative response to Federal Baseball and dozens of unsuccessful congressional acts; allows MLB players to sue their employers under the Sherman Act, but exempts the business of baseball (including the minor leagues) © Jones and Bartlett Publishers

Key Concepts: Antitrust Antitrust Exemptions
Sport Broadcasting Act of 1961 exempts leagues from antitrust laws when pooling rights to enter into national broadcasting rights Labor exemption Restrictive practices are exempt from antitrust law when those practices have been negotiated in a collective bargaining agreement by labor and management

Key Concepts: Labor and Employment Laws National Labor Relations Act (1935)
Establishes procedures for union certification and decertification and rights and obligations of union and management once a union is in place Areas of the sport industry where unions occur are facility management and professional sport Unions can be found in interscholastic athletics, but state labor laws apply

Key Concepts: Labor and Employment Laws National Labor Relations Act (1935), cont.
Players associations differ from unions in other industries: Turnover rate for sport union members is high because of short careers of athletes Forces players associations to constantly spread their message to new members throughout North America Unions struggle to keep superstars and players on bench equally satisfied Management in professional sport favors unions to achieve the labor exemption for restrictive practices

Key Concepts: Labor and Employment Laws Equal Pay Act (1963)
Prohibits employer from paying one employee less than another on basis of sex when performing jobs of equal skill, effort, and responsibility Only applies to sex-based discrimination on basis of compensation Four defenses available when disparity is caused by: Seniority system Merit system being followed in good faith System measuring pay on the basis of quality/quantity of production Factor other than sex

Key Concepts: Labor and Employment Laws Title VII of the Civil Rights Act of 1964
Federal law prohibiting discrimination in many settings, including housing, education, and public accommodations Covers employers with 15 or more employees, but exempts Native American tribes and private clubs Protects all classes of people from dissimilar treatment on the basis of race, color, national origin, sex, or religion

Key Concepts: Labor and Employment Laws Title VII of the Civil Rights Act of 1964, cont.
Defense where being a member of a certain class is a bona fide occupational qualification (BFOQ) Race and color can never be BFOQs Examples Hiring male resident directors to monitor dorms at all-male school Hiring a Catholic to teach religion at a Catholic school

Key Concepts: Labor and Employment Laws Age Discrimination in Employment Act (1967)
Prohibits employment discrimination on the basis of age Applies to employers engaged in commerce who hire more than 20 workers for 20 or more calendar weeks, as well as labor unions and state and federal governments Employer can defend a claim by proving decision was made because of reasonable factors other than age

Key Concepts: Labor and Employment Laws Americans with Disabilities Act (1990)
Prohibits employment discrimination on the basis of disability Applicant or employee must be able to perform all essential functions of the job Employer must assess responsibilities required for job and assess an individual’s ability to do them ADA extends beyond employment to places of public accommodation—common in sports Places of public accommodation = stadiums, arenas, golf courses, health clubs, YMCAs

Key Concepts: Intellectual Property
Trademark Word, name, or symbol used by a manufacturer or merchant to identify and distinguish its goods from those manufactured and sold by others Service mark Used to identify the source of an intangible service (e.g., professional sport franchises’ marks) Lanham Act Governs trademarks and service marks, gives protection to the owner of a name or logo, keeps others from selling goods as the goods of the original source

Key Skills By practicing problem solving, sport managers can improve their logical and analytical reasoning skills. Analysis of case and statutory law will lead to more persuasive and clear written and oral communication and build skills.

Putting Skills to Practice
Managers can effectively manage legal problems by knowing and understanding law. By knowing legal pitfalls, managers can avoid, prevent, or reduce many kinds of problems. A well-written and well-administered risk management plan can help a sport manager avoid legal liability. Analysis should include a list of issues to consider.

Current Issues: Olympics
Growing number of challenges over rules and regulations imposed on participants Drug testing is a growing legal battlefield Ambush marketing occurs when an organization misappropriates trademarks, logos, and goodwill of events or organization (e.g., Nike in 1996) Other issues: The right of individual athletes to market themselves Imposition of codes of conduct for athletes

Future Issues: Collegiate Sports
Challenges may arise regarding NCAA amateurism rules. Key legal issues: Restrictions on athletes’ involvement with sport agents Restrictions on athletes’ abilities to market themselves Protection and licensing of collegiate trademarks and logos Gender equity Use of dietary supplements and other stimulants Possible that issue of NCAA drug testing might be heard and decided by the U.S. Supreme Court

Future Issues: Professional Sports
League structure and collective bargaining negotiations Labor peace Drug testing (BALCO) Individual sports Team sports Viability of women’s professional sports © Image100/Jupiterimages

Chapter 6 Ethical Principles Applied to Sport Management

Introduction Ethics The systematic study of the values guiding our decision making Ethics reflect how we believe people should behave and how we want the world to operate Ethical dilemma Practical conflict involving equally compelling values or social obligations; solved when we articulate which commonly held values we admire most Morality The list of those actions people ought to do or refrain from doing

Ethical Considerations
Decisions that affect diverse groups of people with conflicting interests (e.g., athletes, fans, media, community, businesses) Sport managers’ decisions about ethical dilemmas tend to fall under greater public scrutiny Ethical analysis involves a systematic process of reasoning: Weighing pros/cons of two or more seemingly valid choices that reflect equally cherished values

Ethical Considerations: Codes of Conduct
Need exists for establishing solid ethical climates in corporations. Code of conduct outlines and explains the principles under which an organization or profession operates. Codes of conduct should be clear and straightforward and encourage employees to understand the goals they are trying to accomplish.

Ethical Considerations: Morality
Some ethical dilemmas are about choosing between right and wrong or two opposing choices. Social practices depend on people upholding certain baseline values. Many moral values in society are codified in laws, but moral behavior cannot always be legislated and people cannot be forced to act morally.

Ethical Considerations: Morality in the Work World
Absolutism Moral precepts are universal—applicable to all circumstances. Relativism What is moral depends on the situation. Commercial moral rules Rules of the marketplace guide activities such as sales and marketing. Noncommercial moral rules Occupations demand loyalty to an oath of office or professional standards to guard against selling out.

Ethical Considerations: Morality and Multiple Roles
Specific jobs in sports do not reside completely in either the commercial or the noncommercial sphere. Process of making a moral choice, of deciding what is right and wrong, involves understanding the parameters of acceptable behavior in the context of one’s multiple roles in society.

Ethical Considerations: Morality and Corruption
Immoral behavior violates our basic assumptions and corrupts our social institutions. An immoral decision can lead to systemic corruption that can destroy a sport enterprise. Corruption usually occurs when people hop from one set of moral precepts to another. One feature of corruption is that it is systemic.

Ethical Considerations: Moral Reasoning and Work
Contemporary society is characterized by innovation, which continually presents new ethical dilemmas Periodically need to assess whether our current practices are in keeping with values that underlie a just society Moral and ethical principles evolve over time

Key Skills: Ensuring Morality in the Workplace
Rules designed to protect integrity of sports operate uncomfortably alongside business structure underwriting sports. Organizations can help individuals make moral choices by establishing standards, encouraging self-examinations, providing support structures, and enforcing codes.

Key Skills: Self-Examination
An effective tool to remind people of ethical actions and express institutional concern for ethical issues Ask employees to think about hypothetical ethical dilemmas Accreditation programs (NCAA)

Key Skills: Forum for Moral Discourse
Communication is critical to decreasing corruption and resolving ethical dilemmas. Employees should be encouraged to get together to discuss where and how they face specific problems. The process takes pressure off individuals and clarifies issues at stake. Decisions should be reviewed only after they have been made. © Bananastock/Alamy Images

Key Skills: Consequences
Employees need to know there are consequences for immoral behavior. If people understand that corruption comes with certain risks, they are less likely to engage in immoral acts. Discipline must meet two criteria: It must be (1) meaningful and (2) enforceable.

Chapter 7 High School and Youth Sports

Introduction High numbers of children participate in youth/school sports. Athletics provide positive influences on adolescents at a crucial juncture of their lives. School and youth sports are the most influential sport programs in the United States. Reflects directly on the importance Americans place on involving youth in sport activities

History: School Sports
Youth athletic participation predates formation of United States and signing of U.S. Constitution. Formally organized youth educational athletic participation did not emerge until mid-19th century. Schools and other agencies promoted sport participation to aid in solving broad social problems such as ill health and juvenile delinquency.

History: School Sports (cont.)
Public schools were slow to embrace value of exercise and play, but private schools recognized value much earlier. Students organized games at college level. Athletics were incorporated into school curricula (New York, Illinois, Wisconsin). Boston-area schools formed Interscholastic Football Association in 1888.

History: Twentieth Century
Progressive Movement Educators touted athletics as tool to prepare for rigors of modern life and democracy and to assimilate immigrants into American culture Promoted child welfare by advocating for increased playground space Promoted formalized public school athletics as an antidote to regimented physical education curricula

History: Twentieth Century (cont.)
Period during and just after World War I School sports for males were promoted as a source of physical training for armed forces Sports resulted in boost in school retention and graduation rates Athletics became entrenched in schools and educators took control of athletics from students Dr. Dudley Sargent, James Naismith, and Amos Alonzo Stagg Significant contributions toward meeting instructional and curricular development needs

History: Nonschool YMCA: Most prominent private agency to promote youth athletics (Young Men’s Christian Association) 1930–1950s: YMCA branches were opened in suburban areas that allowed female members Financial calamities of Great Depression of 1930s launched unprecedented governmental involvement in recreation

Governance: National Federation of State High School Associations
National coordinator for high school sports, plus activities such as music, debate, theater, and student council Encompasses 50 state high school athletics and activity associations, as well as District of Columbia, Bermuda, Guam, St. Croix, St. Thomas, St. John, and 10 Canadian provinces Coordinates official certification Issues playing rules; holds national conferences and competitions; acts as advocate/lobbying agent

Governance: State Associations
Replicate NFHSA model Organize state championships and competitions in athletics and activities Final authority in determining athlete eligibility The scope of activities, the size of full-time administrative and support staff, and the number of schools represented vary from state to state

Governance: National Youth League Organizations
Focus administrative efforts on promoting participation in a particular sports among children (e.g., Little League Baseball) Little League 2006: 200,000 teams all 50 states plus 80 other countries participate Require strict adherence to administrative guidelines: Standardized field size; use of uniforms and a draft system; promote adult supervision and safe play

Career Opportunities: School Athletic/Youth League Director
Responsibilities Hiring, supervising, and evaluating coaches Coordinating facets of contest management, including hiring and paying of officials and event staff Departmental/league training and disciplinary policies

Career Opportunities: School Athletic/Youth League Director (cont.)
Responsibilities Determining departmental/league budgets Overseeing all associated fund-raising Determining and verifying game scheduling and athlete eligibility Transmitting relevant publicity and handling public relations

Career Opportunities: Officials/Judges
Employed by schools and leagues but are considered independent contractors because school or league exhibits no supervisory capacity over the official May require certification from national, state, and local sanctioning organizations Use of unprofessional personnel (volunteers) can leave a league liable for litigation for the actions of these individuals

Management Personnel who operate school and youth sport programs are the organization’s most valuable assets and most difficult resources to attract and retain. Because of budgetary and staffing limitations, more and more schools and virtually all youth leagues are forced to rely on athletic personnel who are not full-time employees of the organization.

Financial Administrators and coaches work together to present a detailed prediction of how funds will be spent and an accurate accounting of actual expenditures Although school and youth sport organizations are not-for-profit enterprises, this does not mean that associated programs are not concerned with controlling costs and maintaining balanced budgets

Marketing As schools and leagues become more financially strained, coaches and administrators are often expected to be fundraisers Such methods may include direct sponsorships donated by local businesses and individuals, the sale of items such as candy bars or other novelties, or selling advertising space in school publications or facilities

Ethics Administrators are responsible for ensuring that athletic programs treat boys and girls equally and ethically 1990: Americans with Disabilities Act (ADA) enacted and has led to increased opportunities for athletes with disabilities

Legal Primary responsibility for any administrator is to inform staff of risks and dangers inherent in their profession. Waiver and release of liability will not be enforceable if it attempts to insulate the school district from intentional, willful, wanton, or reckless misconduct. Coaches are principal supervisors of the athletic activities of their teams and must provide a reasonably safe environment for participants.

Summary Organized school and youth sports have evolved from their modest beginnings in New England private schools in the early 1800s. Administrators, coaches, and other associated personnel have developed the skills and expertise to deal with challenges and issues.