1. CHAPTER 3 Professional Sports
SPORTS AND ENTERTAINMENT MARKETING
4/17/2017
CHAPTER 3 Professional Sports
3.1 Big League Sports
3.2 Attracting a Professional Team
3.3 Agents, Managers, and Ethics
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2. LESSON 3.1 Big League Sports
GOALS
Discuss the financial impact of professional sports.
Identify the perks associated with big league sports.
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3. Financial Impact Big league pricing and planning
Financial planning for a sports team
Bringing all the resources together
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4. Big League Pricing and Planning
Professional athletes contracts
Corporate sponsorships
Television revenue
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5. Financial Planning for a Sports Team
Financial viability for the home city
Increased spending by fans
Increased tax revenues
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6. Bringing All the Resources Together
Media support
Marketing
Charitable and other organizations
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7. Prestige, Power, Profitability
Perks and payoffs
Political clout
Professional teams and the community
Sociological ties to a professional team
The bottom line
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8. Perks and Payoffs
Perk—a payoff or profit received in addition to a regular wage or payment
Company employees receive tickets
Media exposure for owners
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9. Political Clout
Franchise owners bring millions of dollars in business activity to a city
Frequently associated with wealth
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10. Professional Teams and the Community
Teams bring new jobs to a city
Boost for surrounding businesses
Community service
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11. Sociological Ties to a Professional Team
City’s “image enhancement”
Residents feel pride
Wholesome family entertainment
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12. The Bottom Line Winning is everything in sports
Special contract incentives for winning
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13. LESSON 3.2 Attracting a Professional Team
GOALS
Describe the distribution process for a professional sports team.
Explain the process for financing a professional sports team.
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14. Getting in the Ballgame
Distributing the game
How distribution is decided
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15. Distributing the Game
Individual teams are separately operated businesses
Cartel—a combination of independent businesses formed to regulate production, pricing, and marketing of a product
The league controls the distribution of the teams
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16. How Distribution Is Decided
Region with a large potential customer base
Subsidies for the team
Owner must have financing
Stadium to attract fans
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17. Attracting a Sports Team
It takes money
And more money
Cashing in
Another option
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18. LESSON 3.3 Agents, Managers, and Ethics
GOALS
Understand the role of agents in marketing.
Explain ways that professional sports organizations and their sponsors develop an athlete’s character.
Assess the impact of ethical behavior on an athlete’s promotional value.
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19. Show Me the Money Agent—the legal representative of a celebrity
Athletes won the right to become free agents
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20. Polishing the Marketing Value
Professional athletes ultimately responsible for their own behavior
National Basketball Association rookie training program
Illegal behavior may hurt ability to attract sponsors
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21. Handlers
Handlers—sponsor-paid individuals who work closely with athletes who are unable or unwilling to police themselves
For athletes to remain valuable to sponsors, they must behave
Neither can afford negative publicity
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22. Advisors Financial and business counselors
Advisors keep the athlete and sponsor together for the benefit of both
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23. Do Ethics Count?
Ethics—a system of deciding what is right or wrong in a reasoned and impartial manner
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24. Ethics and Character Matter
Lack of mature adult role models
Frequent news accounts of unethical behavior by politicians, sports and entertainment figures, and religious leaders
Can result in publicity that interferes with a marketing plan
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