1. Understanding the Sport Industry
The Management of
Sport Organizations, Events and Programs
in the 21st Century

2. Size of the Sport Industry
US Professional Sport Industry
League
Total Revenues
NFL
$4.8 billion
MLB
$3.5 billion
NBA
$3 billion
NHL
$2 billion

3. US Consumer Spending on Sport
Advertising $28.25 billion
Endorsements $730 million
Equipment/Apparel $24.94 billion
Facility Construction $2.49 billion
Internet $300 million
Licensed Goods $15.1 billion
Media/broadcast rights $10.57 billion
Professional Services $14.03 billion
Spectator Sports $22.56 billion
Sponsorships $5.09 billion
Medical Treatment $4.1 billion
Travel $44.47 billion
Publications/Videos $2.12 billion
Gambling $18.55 billion
Team Operating Expenses $19.23 billion

4. The Alternative Sports Boom
Young males between years of age spend billions of dollars annually on equipment and apparel:
In-line skate ($251 million)
Snowboard ($235 million)
Skateboard ($105 million)
Wakeboard ($80 million)

5. Grand Total
$213 billion

6. Sport Managers Are The Glue That Holds This All Together
“Sport managers are the wonderful glue that binds successful sport organizations, sport events, athletes, health clubs, and virtually every sport industry-related business.”
(Davis, p. 5)

7. Defining Sport
“Sport is any activity, experience, or business enterprise focused on fitness, recreation, athletics, or leisure. …sport does not have be competitive, nor does it always require specialized equipment or rules; in fact, sport includes activities such as working out, running, and dancing.” (Parks & Quartermain, p.7)

8. Sport Management is “any combination of skills related to planning, organizing, directing, controlling, budgeting, leading and evaluating within the context of an organization or department whose primary product or service is related to sport and/or physical activity.” (Parks & Quartermain, p. 8)

9. Sport Industry- all sport-related products offered to customers
Sport Industry Segmentation
Sport Performance
Sport Production
Sport Promotion
Participation
Products/Influence
Promo Tools

10. A View of the Sport Industry by Setting
Sport Setting
Examples of Organizations
Professional Sport
Real Madrid, NBA, MBL
Amateur Sport
USATF, Canada Basketball, NOC
University Athletics
Notre Dame, USC
Municipal Recreation
City of Altanta, Nymburk Parks and Recreation etc

11. What makes the sport product unique?
VS.
1. Aspects of the sport product are intangible.

12. What makes the sport product unique?
2. Sport is subjective and heterogeneous.

13. What makes the sport product unique?
3. Sports are inconsistent and unpredictable.

14. What makes the sport product unique?
4. Sport is perishable.

15. What makes the sport product unique?
5. Sport involves emotions.

16. Sport Organizations are:
Goal oriented (exist for a reason)
Deliberately Structured (systematic arrangement of people and working relationships)
Deliberately Coordinated (patterns and relationships)
Exist as a system of individuals and groups (activation)
Made up of people with special skills (competencies)

17. Sport Context

18. Future Trends in the Field
Health and Fitness Industry:
Growth in family markets
Growth in niche markets (women, older adults)
Growth in ‘spa’ settings
Growth in personal training

19. Facility Management: Sporting Goods: Professional Sport:
Growth in domes and multi-pad arenas
Growth in golf courses
Growth in parks and trails
Sporting Goods:
Growth in diversity of products …
Growth in use of event management
Professional Sport:
Growth in number of franchises …

20. Forming your Organization
Vision - The vision statement includes a vivid description of the organization as it effectively carries out its operations.
Mission - the mission statement describes the overall purpose of the organization.
Values - Values represent the core priorities in the organization’s culture, including what drives members’ priorities and how they truly act in the organization.

21. N.E.T Organizational Chart

22. Deciding on sport organization
By next week have a sport organization that you feel could attract capital
By next week create your organization’s vision, mission and values
Be prepared to present your organization to the class with powerpoint