2. Sports Marketing: A Strategic Perspective Third Edition Matthew D. Shank CHAPTER 1 EMERGENCE OF SPORTS MARKETING

3. Understanding the Sports Industry What is sport? Sport - Source of diversion or physical activity engaged in for pleasure Sports as Entertainment - Reebok president Robert Meers, “We’ve recognized for several years that sport is part of entertainment. The market now is really sports, fashion and music. We can’t expect to ignore reality and survive.”

4. Growth of the Sports Industry 11th largest of all U.S. industry groups Nation’s output for sports goods and services estimated at $213-350 billion annually How do we measure growth in the sports industry? Growth measured in….. –Attendance Figures –Media Coverage –Employment Figures (4.5 million jobs) –Global Markets –Sports Goods –Sports Information

5. Growth of the Sports Industry The sports industry generates estimates of 213 to 350 billion dollars per year in revenues. As ESPN founder Bill Rasmussen points out, “The games are better, and well the athletes are just amazing and it all happens 24 hours a day. America’s sports fans are insatiable.” Attendance is increasing: –The NFL experienced a record number of fans in the 2003 season (regular-season total paid attendance of 16,913,584 and the average of 66,328 per game were both all-time records) –The NBA 2003-2004 season also produced a record increase –MLB down 0.4% –NHL continues to decline slighty in attendance (16,591 to 16,533) and popularity –NASCAR continues to increase Sports Sponsorship Spending Exceeds $9 Billion Mark New Leagues (AF2, NWFL, NLL, WHA)

6. Growth of Sports Industry Sporting Good Industry –Sports Equipment (17.5 billion) Exercise equipment Golf Guns and Hunting –Recreational Vehicle and Water Scooters (17.9) –Sports Apparel (22.3) –Footwear (9.3) Collectibles and Memorabilia –1.2 billion at height in 1991 and now stable at 500 million Sports Information –3.2 circulation of SI –34% use Internet for sports Info –ESPN.com reaches 15 million unique users

7. Growth of Sports Industry Media Coverage is Increasing –200 million people watched NBC coverage of the Summer Olympic Games and 3.7 billion people watched worldwide – ESPN, the original sports-only network launched in 1979, reaches some 76 million homes with its 4900 hours of sports programming and, remarkably, ESPN2 reaches 65 million viewers. –$2.3 billion to secure the broadcast and cable rights for the Olympic Games in 2004, 2006, and 2008 and additional $2.2 billion for 2010 and 2012 –Overall for the week, NBC averaged 26.7 million viewers in primetime, more than three times the 7.2 million for second-place CBS. ABC was third with 4.5 million, followed by Fox with 4.4 million. –$2.64 billion paid by NBC and Turner Sports to televise NBA contests, $18 billion paid by the networks for the NFL, $2.5 billion for post season MLB –New sports networks, such as the College Sports Television, Tennis Channel, Blackbelt TV, and the Women’s Sports Network –Internet, satellite stations, and pay-per-view cable television are growing in popularity

8. Opportunities in the Sports Industry: Academics Over 200 Academic Programs in Sports Administration NKU – 120 Majors and growing

9. Opportunities in the Sports Industry: Careers Upwards of 4.5 million sports-related jobs in sports administration 13 career areas in sport. These include: event suppliers, event management and marketing, sports media, sports sponsorship, athlete services, sports commissions, sports lawyers, manufacturers and distribution, facilities and facility suppliers, teams, leagues, college athletics, and finance Marketing & Public Relations Professional Sports Intercollegiate Sports Youth Sports Olympic Sports Organizations Regional and National Sport Commissions Amateur Sports Corporate Sports Marketing Sports Marketing Firms Licensing Firms

10. What is Sports Marketing? Sports Marketing - The specific application of marketing principles and processes to sports products and to the marketing of non-sports products through association with sport.

11. Simplified Model of the Consumer-Supplier Relationship in the Sports Industry Consumers Spectators Participants Corporations Products Events Sporting Goods Personal Training Sports Information Producers/Intermediaries Sports Labor Sanctioning Bodies Sponsors Media Agents Equipment Manufacturers

12. Classification of Sports Spectators Individuals Corporate In-PersonMediated

13. Classification of Sports Participants Unorganized Sports Participants Organized Sports Participants Amateur Youth Recreational Instructional Youth Recreational Elite Schools Intercollegiate Professional Minor/Secondary Major

14. The Sports Product Sports Product - A good, service, or any combination of the two that is designed to provide benefits to a sports spectator, participant, or sponsor.

15. Types of Sports Products Sporting Events –Athletes –Arenas/Stadia Sporting Goods –$60.2 billion industry comprised of four segments (equipment, transportation, apparel, and footwear) –Collectibles and Memorabilia Sports Training –Fitness and Health Services –Sports Camps and Instruction Sports Information –Newspapers, Internet, Magazines, Radio, etc.

16. The Sports Product Map

17. The Sports Marketing Exchange Process Something of Value Exchange Players