SlideShare a Scribd company logo
1 of 36
CHAPTER 6 DISCUSSION QUESTIONS


1) Professional sport is any activity or skill for which the athlete is what?
2) Most jobs associated with professional individual sports are found where?
3) Professional sport can be traced to the Olympic Games that took place when?
4) The professional sportsmen at the above games were known as what?
5) During the mid-19th century who were the first athletes paid for their prowess?
6) What was the first team sport to employ professionals?
7) What team & in what year was the first professional baseball team?
8) What was & in what year was the first professional sport league?
9) What was founded in 1887 as an outlet for African American baseball players?
10) What was & in what year the first women's professional league?
11) Passed in 1961 what dramatically changed the relationship between the media & professional sports?
12) What 4 aspects of professional sport distinguish it from other industries?
13) What was the first electronic medium to bring professional sport to the masses?
14) Leagues associated with professional sport need TV for what 3 reasons?
15) Define local television contracts.
16) What is the only major professional sport league that does not allow member teams to negotiate local
television contracts?
17) As late as 1950, gate receipts & concessions accounted for more than what % f the revenue of professional
teams?
18) How are licensing revenues generated?
19) Define sponsorship.
20) Beyond executive positions, jobs associated with professional sport teams typically fall into what 2
categories?
PROFESSIONAL SPORT

    “ANY ACTIVITY OR SKILL FOR WHICH THE ATHLETE IS
                    COMPENSATED.”




DID YOU REALLY
THINK I WOULD
     POST A
 BASKETBALL
   PICTURE?
WORLD’S HIGHEST PAID ATHLETE

                        TIGER WOODS




-$75 MILLION/YEAR.

-$127,902,706/YEAR INCLUDING ENDORSEMENTS.

-FIRST ATHLETE TO EARN $1 BILLION IN EARNINGS & ENDORSEMENTS.
WORLD’S 2ND HIGHEST PAID ATHLETE

                         SAMUEL ETO’O




-35.7 MILLION POUNDS ($54+ MILLION) / YEAR EXCLUDING
ENDORSEMENTS.
WORLD’S 3RD HIGHEST PAID ATHLETE

                          KOBE BRYANT




-$28.7 MILLION/YEAR IN SALARY.

-$53 MILLION/YEAR INCLUDING ENDORSEMENTS.
HIGHEST PAID (SALARY) NFL PLAYER

          DREW BREES

        $20 MILLION/YEAR
HIGHEST PAID (SALARY) MLB PLAYER

        ALEX RODRIGUEZ

        $30 MILLION/YEAR
HIGHEST PAID (SALARY) NHL PLAYER

          SHEA WEBER

        $14 MILLION/YEAR
HIGHEST PAID (SALARY) WNBA PLAYER

           CANDACE PARKER

     $105,500/YEAR (LEAGUE MAXIMUM)

$3+ MILLION/YEAR INCLUDING ENDORSEMENTS
-$20 MILLION/YEAR SALRY IS HIGHEST IN MLS.

-ABOUT 50 TIMES THE AVERAGE MLS BASE SALARY OF $115,000.
2 MAIN FACTORS THAT HAVE AFFECTED THE GROWTH OF PROFESSIONAL
                       SPORT IN AMERICA:

                       1) MASS MEDIA

                    2) INCREASED LEISURE
MEDIA

-PROFESSIONAL SPORT IS PERHAPS THE ONLY ACTIVITY THAT DEFIES THE
COMMERCIAL NORM.

-THE MEDIA USUALLY EXPECTS TO BE PAID FOR CARRYING PUBLICITY FOR
NON-MEDIA ORGANIZATIONS.

-IN PROFESSIONAL SPORT THE MEDIA ARE EXPECTED TO PAY FOR THE
PRIVILEGE OF DOING SO.

-2014-2022: CBS, NBC, FOX, & ESPN WILL PAY A COMBINED $39.6 BILLION FOR
THE BROADCASTING RIGHTS TO NFL GAMES.

-2010-2014: CBS & TURNER BROADCASTING WILL PAY A COMBINED $10.8
BILLION FOR THE BROADCASTING RIGHTS TO NCAA MEN’S BASKETBALL
TOURNAMENT.
INCREASED LEISURE

-JUNE 10, 2012: RED SOX SET THE RECORD FOR LONGEST REGULAR-
SEASON SELLOUT STREAK IN MAJOR U.S. SPORTS WITH THE 745TH
CONSECUTIVE SELLOUT.

-NBA’S PORTLAND TRAIL BLAZERS RECORDED 744 CONSECUTIVE
SELLOUTS FROM 1977-1995.
MOST JOBS ASSOCIATED WITH PROFESSIONAL INDIVIDUAL SPORTS
                   ARE FOUND WHERE?



              SPORT MANAGEMENT AGENCIES

               SPORT MARKETING AGENCIES
SPORT MANAGEMENT AGENCIES

                         SMG
WORLDWIDE ENTERTAINMENT & CONVENTION VENUE MANAGEMENT

-WORLD LEADER IN VENUE MANAGEMENT

-FOUNDED IN 1977 WITH THE MANAGEMENT OF ITS FITST
FACILITY, THE LOUISIANA SUPERDOME
SPORT MARKETING AGENCIES

                           IMG
         GLOBAL LEADER IN SPORTS, FASHION, & MEDIA

-FOUNDED IN 1960, IMG CONNECTS BRANDS & AUDIENCES THROUGH
SPONSORSHIPS, LICENSING, MEDIA, CONSULTING, VENUES, TRAINING,
 & TALENT MANAGEMENT

-GLOBAL LEADER IN TALENT REPRESENTATION, COLLEGIATE
MARKETING, & SPORTS PROGRAMMING
HOW FAR BACK CAN PROFESSIONAL SPORT BE TRACED?

           OLYMPIC GAMES IN ANCIENT GRAEECE IN 776 BCE

ATHLETAI

-WELL-PAID PROFESSIONAL SPORTSMEN RECRUITED FROM
MERCENARY ARMIES & TRAINED EXCLUSIVELY FOR BRUTAL
COMPETITION

-IN EXCHANGE FOR COMPETING & WINNING, ATHLETAI WERE
COMPENSATED WITH PRIZES & MONEY
WHO WERE THE FIRST PAID AMERICAN ATHLETES?

BOXERS, JOCKEYS, RUNNERS (EARLY & MID-19TH CENTURY)
WHAT WAS THE FIRST AMERICAN SPORTS TEAM TO PAY ITS PLAYERS?

               CINCINNATI RED STOCKINGS (1869)

-10 SALARIED PLAYERS

-PLAYED FROM 1876-1880
WHAT WAS THE FIRST PROFESSIONAL PROFESSIONAL SPORT
                           LEAGUE?
  ___________________________________________________________

THE NATIONAL ASSOCIATION OF PROFESSIONAL BASE BALL PLAYERS
                          (NAPBBP)

                             1871


-1876: WILLIAM HULBERT FORMED THE NATIONAL LEAGUE WHICH
WOULD EVENTUALLY BECOME MAJOR LEAGUE BASEBALL (MLB)
NATIONAL HOCKEY LEAGUE (NHL)

            1917
NATIONAL FOOTBALL LEAGUE (NFL)

             1921
NATIONAL BASKETBALL ASSOCIATION (NBA)

                1949
WHAT WAS FOUNDED IN 1887 AS AN OUTLET FOR AFRICAN AMERICAN
BASEBALL PLAYERS WHO WERE NOT ALLOWED TO PLAY IN THE ALL-
                  WHITE MAJOR LEAGUES?
    ____________________________________________________


          THE NATIONAL COLORED BASEBALL LEAGUE
WHAT WAS THE FIRST WOMEN’S PROFESSIONAL LEAGUE?


   THE ALL-AMERICAN GIRLS PROFESSIONAL BASEBALL LEAGUE
                         (AAGPBL)

                         1943-1954

-FOUNDED IN RESPONSE TO DECREASED PLAYER QUALITY IN MLB
DUE TO WWII & THE POPULARITY OF WOMEN’S AMATEUR SOFTBALL
WHAT WAS PASSED IN 1961 THAT DRAMATICALLY CHANGED THE RELATIONSHIP
              BETWEEN THE MEDIA & PROFESSIONAL SPORTS?

                      THE SPORTS BROADCASTING ACT


-GAVE SPORT LEAGUES AN EXEMPTION FROM ANTITRUST LAWS, GRANTING THEM
THE RIGHT TO NEGOTIATE FEES COLLECTIVELY (FOR ALL TEAMS) WITH TELEVISION
NETWORKS.

ANTITRUST LAW: A LAW THAT PROMOTES OR MAINTAINS MARKET COMPETITION BY
REGULATING ANTI-COMPETITIVE CONDUCT BY COMPANIES.
WHAT ARE THE 4 ASPECTS OF PROFESSIONAL SPORT THAT
          DISTINGUISH IT FROM OTHER INDUSTRIES?


1) INTERDEPENDENCE

2) STRUCTURE & GOVERNANCE

3) LABOR-MANAGEMENT RELATIONS

4) THE ROLE OF THE ELECTRONIC & NEW MEDIA
INTERDEPENDENCE

-THE NEED FOR TEAMS TO COMPETE & COOPERATE SIMULTANEOUSLY.

-LEAGUE THINK: TEAMS MUST RECOGNIZE THE IMPORTANCE OF THEIR
COMPETITION & SHARE REVENUES TO ENSURE THAT THEIR COMPETITIORS
REMAIN STRONG.
STRUCTURE & GOVERNANCE


-EACH PROFESSIONAL SPORT HAS ITS OWN STRUCTURE & SYSTEM
OF GOVERNANCE TYPICALLY REFERRED TO AS THE LEAGUE OFFICE.

1) LEAGUE COMMISSIONER

2) BOARD OF GOVERNORS OR COMMITTEE STRUCTURE COMPOSED
   OF THE TEAM OWNERS

3) A CENTRAL ADMINISTRATIVE UNIT THAT NEGOTIATES CONTRACTS
   & AGREEMENTS ON BEHALF OF THE LEAGUE
LABOR-MANAGEMENT RELATIONS

-5 UNIQUE CIRCUMSTANCES & CONDITIONS RELATED TO THE LABOR-
MANAGEMENT RELATIONSHIP IN NORTH AMERICAN PROFESSIONAL
SPORT:

1) BASEBALL’S ANTITRUST EXEMPTION

2) COLLECTIVE BARGAINING

3) FREE AGENCY

4) SALARY CAPS

5) PLAYER DRAFT
THE ROLE OF THE ELECTRONIC & NEW MEDIA

-PLAY A CRITICAL ROLE IN DRIVING THE POPULARITY OF
PROFESSIONAL SPORT & GENERATING ADDITIONAL REVENUE FOR
ASSOCIATED TEAMS.
WHAT WAS THE FIRST ELECTRONIC MEDIUM TO BRING
     PROFESSIONAL SPORT TO THE MASSES?


                   RADIO
TELEVISION HAS HAD A PROFOUND EFFECT ON THE DEVELOPMENT
   OF PROFESSIONAL TEAM SPORT OVER THE PAST 50 YEARS


LEAGUES ASSOCIATED WITH ROFESSIONAL SPORT NEED TV FOR 3
                       REASONS:

1) THE LEAGUES & MEMBER TEAMS REVEIVE SIGNIFICANT REVENUE

 2) TV ENHANCES THE ENJOYMENT ASSOCIATED WITH WATCHING
                PROFESSIONAL SPORT EVENTS

3) TV HELPS INCREASE THE AMOUNT THAT TEAMS & LEAGUES CAN
                  CHARGE FOR SPONSORSHIPS
REVENUE SOURCES FOR PROFESSIONAL SPORT TEAMS
MEDIA CONTRACTS

LOCAL TELEVISION CONTRACTS:

-”AGREEMENTS MADE BETWEEN PROFESSIONAL TEAMS & REGIONAL SPORTS
NETWORKS.”

-PROVIDE TEAMS ADDITIONAL REVENUE BEYOND WHAT THEY RECEIVE FROM THE
NATIONAL TELEVISION CONTRACT.

-MLB, NBA, & NHL ALL PERMIT THEIR MEMBER TEAMS TO NEGOTIATE LOCAL
TELEVISION CONTRACTS.

-NFL DOES NOT.


                                     GENERATES $85-90 MILLION
                                    ANNUALLY FOR THE YANKEES.
GATE RECEIPTS


-THE 2011 YANKEES HAD A $227 MILLION PLAYER PAYROLL.

-THE 2011 YANKEES MADE $292 MILLION IN GATE RECEIPTS.

-THE 2011 RED SOX HAD A $191 MILLION PLAYER PAYROLL.

-THE 2011 RED SOX MADE $180 MILLION IN GATE RECEIPTS.

-NFL TEAMS MAKE LESS THAN 25% OF THEIR REVENUE FROM TICKET
SALES.

-MLB TEAMS MAKE 25% OF THEIR REVENUE FROM TICKET SALES.

-NBA TEAMS MAKE 33% OF THEIR REVENUE FROM TICKET SALES.

-NHL TEAMS MAKE 50% OF THEIR REVENUE FROM TICKET SALES.

More Related Content

Similar to Chapter 6

Sport & Society
Sport & SocietySport & Society
Sport & Societydetjen
 
Chapter 14
Chapter 14Chapter 14
Chapter 14detjen
 
Chapter 5
Chapter 5Chapter 5
Chapter 5detjen
 
Why the Next Big Thing is eSports
Why the Next Big Thing is eSports Why the Next Big Thing is eSports
Why the Next Big Thing is eSports Bob Snyder
 
36332054 sports-industry-overview
36332054 sports-industry-overview36332054 sports-industry-overview
36332054 sports-industry-overviewPrashant Bandhu
 
signmesh snapshot - the best of NBA league
signmesh snapshot - the best of NBA leaguesignmesh snapshot - the best of NBA league
signmesh snapshot - the best of NBA leaguesignmesh
 
Dealing with financial mismanagement Excerpt from Sport Fu
Dealing with financial mismanagement Excerpt from Sport FuDealing with financial mismanagement Excerpt from Sport Fu
Dealing with financial mismanagement Excerpt from Sport FuLinaCovington707
 
Chapter 5
Chapter 5Chapter 5
Chapter 5detjen
 
Chapter 5
Chapter 5Chapter 5
Chapter 5detjen
 
Econometrics Research & Analysis Paper
Econometrics Research & Analysis PaperEconometrics Research & Analysis Paper
Econometrics Research & Analysis PaperChris Precourt
 
Does having a NBA team improve the economic growth.docx
Does having a NBA team improve the economic growth.docxDoes having a NBA team improve the economic growth.docx
Does having a NBA team improve the economic growth.docxsusanschei
 
Chapter 5
Chapter 5Chapter 5
Chapter 5detjen
 
Chapter 7
Chapter 7Chapter 7
Chapter 7detjen
 
Maine Red Claws Quick Preso
Maine Red Claws Quick PresoMaine Red Claws Quick Preso
Maine Red Claws Quick PresoShonn Moulton
 
Key Insights into Esports in the Americas
Key Insights into Esports in the AmericasKey Insights into Esports in the Americas
Key Insights into Esports in the AmericasNewzoo
 
Ufc at yankee stadium
Ufc at yankee stadiumUfc at yankee stadium
Ufc at yankee stadiumcig4life
 

Similar to Chapter 6 (19)

Sport & Society
Sport & SocietySport & Society
Sport & Society
 
Chapter 14
Chapter 14Chapter 14
Chapter 14
 
Chapter 5
Chapter 5Chapter 5
Chapter 5
 
The Community Of Sport
The Community Of SportThe Community Of Sport
The Community Of Sport
 
Why the Next Big Thing is eSports
Why the Next Big Thing is eSports Why the Next Big Thing is eSports
Why the Next Big Thing is eSports
 
36332054 sports-industry-overview
36332054 sports-industry-overview36332054 sports-industry-overview
36332054 sports-industry-overview
 
signmesh snapshot - the best of NBA league
signmesh snapshot - the best of NBA leaguesignmesh snapshot - the best of NBA league
signmesh snapshot - the best of NBA league
 
Dealing with financial mismanagement Excerpt from Sport Fu
Dealing with financial mismanagement Excerpt from Sport FuDealing with financial mismanagement Excerpt from Sport Fu
Dealing with financial mismanagement Excerpt from Sport Fu
 
Chapter 5
Chapter 5Chapter 5
Chapter 5
 
Chapter 5
Chapter 5Chapter 5
Chapter 5
 
Econometrics Research & Analysis Paper
Econometrics Research & Analysis PaperEconometrics Research & Analysis Paper
Econometrics Research & Analysis Paper
 
Does having a NBA team improve the economic growth.docx
Does having a NBA team improve the economic growth.docxDoes having a NBA team improve the economic growth.docx
Does having a NBA team improve the economic growth.docx
 
Chapter 5
Chapter 5Chapter 5
Chapter 5
 
Soccer Stadium
Soccer StadiumSoccer Stadium
Soccer Stadium
 
Sports marketing
Sports marketingSports marketing
Sports marketing
 
Chapter 7
Chapter 7Chapter 7
Chapter 7
 
Maine Red Claws Quick Preso
Maine Red Claws Quick PresoMaine Red Claws Quick Preso
Maine Red Claws Quick Preso
 
Key Insights into Esports in the Americas
Key Insights into Esports in the AmericasKey Insights into Esports in the Americas
Key Insights into Esports in the Americas
 
Ufc at yankee stadium
Ufc at yankee stadiumUfc at yankee stadium
Ufc at yankee stadium
 

More from detjen

The corporation chapter 5
The corporation chapter 5The corporation chapter 5
The corporation chapter 5detjen
 
Chapter 10
Chapter 10Chapter 10
Chapter 10detjen
 
Chapter 12
Chapter 12Chapter 12
Chapter 12detjen
 
Chapter 13
Chapter 13Chapter 13
Chapter 13detjen
 
The corporation chapter 3
The corporation chapter 3The corporation chapter 3
The corporation chapter 3detjen
 
The corporation chapter 4
The corporation chapter 4The corporation chapter 4
The corporation chapter 4detjen
 
The corporation chapter 5
The corporation chapter 5The corporation chapter 5
The corporation chapter 5detjen
 
Food inc
Food incFood inc
Food incdetjen
 
Chapter 10
Chapter 10Chapter 10
Chapter 10detjen
 
Chapter 11
Chapter 11Chapter 11
Chapter 11detjen
 
Chapter 13
Chapter 13Chapter 13
Chapter 13detjen
 
The corporation chapter 3
The corporation chapter 3The corporation chapter 3
The corporation chapter 3detjen
 
Chapter 9
Chapter 9Chapter 9
Chapter 9detjen
 
Chapter 10
Chapter 10Chapter 10
Chapter 10detjen
 
Chapter 11
Chapter 11Chapter 11
Chapter 11detjen
 
Chapter 15
Chapter 15Chapter 15
Chapter 15detjen
 
Chapter 12
Chapter 12Chapter 12
Chapter 12detjen
 
Chapter 9
Chapter 9Chapter 9
Chapter 9detjen
 
Chapter 14
Chapter 14Chapter 14
Chapter 14detjen
 
The corporation chapter 2
The corporation chapter 2The corporation chapter 2
The corporation chapter 2detjen
 

More from detjen (20)

The corporation chapter 5
The corporation chapter 5The corporation chapter 5
The corporation chapter 5
 
Chapter 10
Chapter 10Chapter 10
Chapter 10
 
Chapter 12
Chapter 12Chapter 12
Chapter 12
 
Chapter 13
Chapter 13Chapter 13
Chapter 13
 
The corporation chapter 3
The corporation chapter 3The corporation chapter 3
The corporation chapter 3
 
The corporation chapter 4
The corporation chapter 4The corporation chapter 4
The corporation chapter 4
 
The corporation chapter 5
The corporation chapter 5The corporation chapter 5
The corporation chapter 5
 
Food inc
Food incFood inc
Food inc
 
Chapter 10
Chapter 10Chapter 10
Chapter 10
 
Chapter 11
Chapter 11Chapter 11
Chapter 11
 
Chapter 13
Chapter 13Chapter 13
Chapter 13
 
The corporation chapter 3
The corporation chapter 3The corporation chapter 3
The corporation chapter 3
 
Chapter 9
Chapter 9Chapter 9
Chapter 9
 
Chapter 10
Chapter 10Chapter 10
Chapter 10
 
Chapter 11
Chapter 11Chapter 11
Chapter 11
 
Chapter 15
Chapter 15Chapter 15
Chapter 15
 
Chapter 12
Chapter 12Chapter 12
Chapter 12
 
Chapter 9
Chapter 9Chapter 9
Chapter 9
 
Chapter 14
Chapter 14Chapter 14
Chapter 14
 
The corporation chapter 2
The corporation chapter 2The corporation chapter 2
The corporation chapter 2
 

Chapter 6

  • 1. CHAPTER 6 DISCUSSION QUESTIONS 1) Professional sport is any activity or skill for which the athlete is what? 2) Most jobs associated with professional individual sports are found where? 3) Professional sport can be traced to the Olympic Games that took place when? 4) The professional sportsmen at the above games were known as what? 5) During the mid-19th century who were the first athletes paid for their prowess? 6) What was the first team sport to employ professionals? 7) What team & in what year was the first professional baseball team? 8) What was & in what year was the first professional sport league? 9) What was founded in 1887 as an outlet for African American baseball players? 10) What was & in what year the first women's professional league? 11) Passed in 1961 what dramatically changed the relationship between the media & professional sports? 12) What 4 aspects of professional sport distinguish it from other industries? 13) What was the first electronic medium to bring professional sport to the masses? 14) Leagues associated with professional sport need TV for what 3 reasons? 15) Define local television contracts. 16) What is the only major professional sport league that does not allow member teams to negotiate local television contracts? 17) As late as 1950, gate receipts & concessions accounted for more than what % f the revenue of professional teams? 18) How are licensing revenues generated? 19) Define sponsorship. 20) Beyond executive positions, jobs associated with professional sport teams typically fall into what 2 categories?
  • 2. PROFESSIONAL SPORT “ANY ACTIVITY OR SKILL FOR WHICH THE ATHLETE IS COMPENSATED.” DID YOU REALLY THINK I WOULD POST A BASKETBALL PICTURE?
  • 3. WORLD’S HIGHEST PAID ATHLETE TIGER WOODS -$75 MILLION/YEAR. -$127,902,706/YEAR INCLUDING ENDORSEMENTS. -FIRST ATHLETE TO EARN $1 BILLION IN EARNINGS & ENDORSEMENTS.
  • 4. WORLD’S 2ND HIGHEST PAID ATHLETE SAMUEL ETO’O -35.7 MILLION POUNDS ($54+ MILLION) / YEAR EXCLUDING ENDORSEMENTS.
  • 5. WORLD’S 3RD HIGHEST PAID ATHLETE KOBE BRYANT -$28.7 MILLION/YEAR IN SALARY. -$53 MILLION/YEAR INCLUDING ENDORSEMENTS.
  • 6. HIGHEST PAID (SALARY) NFL PLAYER DREW BREES $20 MILLION/YEAR
  • 7. HIGHEST PAID (SALARY) MLB PLAYER ALEX RODRIGUEZ $30 MILLION/YEAR
  • 8. HIGHEST PAID (SALARY) NHL PLAYER SHEA WEBER $14 MILLION/YEAR
  • 9. HIGHEST PAID (SALARY) WNBA PLAYER CANDACE PARKER $105,500/YEAR (LEAGUE MAXIMUM) $3+ MILLION/YEAR INCLUDING ENDORSEMENTS
  • 10. -$20 MILLION/YEAR SALRY IS HIGHEST IN MLS. -ABOUT 50 TIMES THE AVERAGE MLS BASE SALARY OF $115,000.
  • 11. 2 MAIN FACTORS THAT HAVE AFFECTED THE GROWTH OF PROFESSIONAL SPORT IN AMERICA: 1) MASS MEDIA 2) INCREASED LEISURE
  • 12. MEDIA -PROFESSIONAL SPORT IS PERHAPS THE ONLY ACTIVITY THAT DEFIES THE COMMERCIAL NORM. -THE MEDIA USUALLY EXPECTS TO BE PAID FOR CARRYING PUBLICITY FOR NON-MEDIA ORGANIZATIONS. -IN PROFESSIONAL SPORT THE MEDIA ARE EXPECTED TO PAY FOR THE PRIVILEGE OF DOING SO. -2014-2022: CBS, NBC, FOX, & ESPN WILL PAY A COMBINED $39.6 BILLION FOR THE BROADCASTING RIGHTS TO NFL GAMES. -2010-2014: CBS & TURNER BROADCASTING WILL PAY A COMBINED $10.8 BILLION FOR THE BROADCASTING RIGHTS TO NCAA MEN’S BASKETBALL TOURNAMENT.
  • 13. INCREASED LEISURE -JUNE 10, 2012: RED SOX SET THE RECORD FOR LONGEST REGULAR- SEASON SELLOUT STREAK IN MAJOR U.S. SPORTS WITH THE 745TH CONSECUTIVE SELLOUT. -NBA’S PORTLAND TRAIL BLAZERS RECORDED 744 CONSECUTIVE SELLOUTS FROM 1977-1995.
  • 14. MOST JOBS ASSOCIATED WITH PROFESSIONAL INDIVIDUAL SPORTS ARE FOUND WHERE? SPORT MANAGEMENT AGENCIES SPORT MARKETING AGENCIES
  • 15. SPORT MANAGEMENT AGENCIES SMG WORLDWIDE ENTERTAINMENT & CONVENTION VENUE MANAGEMENT -WORLD LEADER IN VENUE MANAGEMENT -FOUNDED IN 1977 WITH THE MANAGEMENT OF ITS FITST FACILITY, THE LOUISIANA SUPERDOME
  • 16. SPORT MARKETING AGENCIES IMG GLOBAL LEADER IN SPORTS, FASHION, & MEDIA -FOUNDED IN 1960, IMG CONNECTS BRANDS & AUDIENCES THROUGH SPONSORSHIPS, LICENSING, MEDIA, CONSULTING, VENUES, TRAINING, & TALENT MANAGEMENT -GLOBAL LEADER IN TALENT REPRESENTATION, COLLEGIATE MARKETING, & SPORTS PROGRAMMING
  • 17. HOW FAR BACK CAN PROFESSIONAL SPORT BE TRACED? OLYMPIC GAMES IN ANCIENT GRAEECE IN 776 BCE ATHLETAI -WELL-PAID PROFESSIONAL SPORTSMEN RECRUITED FROM MERCENARY ARMIES & TRAINED EXCLUSIVELY FOR BRUTAL COMPETITION -IN EXCHANGE FOR COMPETING & WINNING, ATHLETAI WERE COMPENSATED WITH PRIZES & MONEY
  • 18. WHO WERE THE FIRST PAID AMERICAN ATHLETES? BOXERS, JOCKEYS, RUNNERS (EARLY & MID-19TH CENTURY)
  • 19. WHAT WAS THE FIRST AMERICAN SPORTS TEAM TO PAY ITS PLAYERS? CINCINNATI RED STOCKINGS (1869) -10 SALARIED PLAYERS -PLAYED FROM 1876-1880
  • 20. WHAT WAS THE FIRST PROFESSIONAL PROFESSIONAL SPORT LEAGUE? ___________________________________________________________ THE NATIONAL ASSOCIATION OF PROFESSIONAL BASE BALL PLAYERS (NAPBBP) 1871 -1876: WILLIAM HULBERT FORMED THE NATIONAL LEAGUE WHICH WOULD EVENTUALLY BECOME MAJOR LEAGUE BASEBALL (MLB)
  • 24. WHAT WAS FOUNDED IN 1887 AS AN OUTLET FOR AFRICAN AMERICAN BASEBALL PLAYERS WHO WERE NOT ALLOWED TO PLAY IN THE ALL- WHITE MAJOR LEAGUES? ____________________________________________________ THE NATIONAL COLORED BASEBALL LEAGUE
  • 25. WHAT WAS THE FIRST WOMEN’S PROFESSIONAL LEAGUE? THE ALL-AMERICAN GIRLS PROFESSIONAL BASEBALL LEAGUE (AAGPBL) 1943-1954 -FOUNDED IN RESPONSE TO DECREASED PLAYER QUALITY IN MLB DUE TO WWII & THE POPULARITY OF WOMEN’S AMATEUR SOFTBALL
  • 26. WHAT WAS PASSED IN 1961 THAT DRAMATICALLY CHANGED THE RELATIONSHIP BETWEEN THE MEDIA & PROFESSIONAL SPORTS? THE SPORTS BROADCASTING ACT -GAVE SPORT LEAGUES AN EXEMPTION FROM ANTITRUST LAWS, GRANTING THEM THE RIGHT TO NEGOTIATE FEES COLLECTIVELY (FOR ALL TEAMS) WITH TELEVISION NETWORKS. ANTITRUST LAW: A LAW THAT PROMOTES OR MAINTAINS MARKET COMPETITION BY REGULATING ANTI-COMPETITIVE CONDUCT BY COMPANIES.
  • 27. WHAT ARE THE 4 ASPECTS OF PROFESSIONAL SPORT THAT DISTINGUISH IT FROM OTHER INDUSTRIES? 1) INTERDEPENDENCE 2) STRUCTURE & GOVERNANCE 3) LABOR-MANAGEMENT RELATIONS 4) THE ROLE OF THE ELECTRONIC & NEW MEDIA
  • 28. INTERDEPENDENCE -THE NEED FOR TEAMS TO COMPETE & COOPERATE SIMULTANEOUSLY. -LEAGUE THINK: TEAMS MUST RECOGNIZE THE IMPORTANCE OF THEIR COMPETITION & SHARE REVENUES TO ENSURE THAT THEIR COMPETITIORS REMAIN STRONG.
  • 29. STRUCTURE & GOVERNANCE -EACH PROFESSIONAL SPORT HAS ITS OWN STRUCTURE & SYSTEM OF GOVERNANCE TYPICALLY REFERRED TO AS THE LEAGUE OFFICE. 1) LEAGUE COMMISSIONER 2) BOARD OF GOVERNORS OR COMMITTEE STRUCTURE COMPOSED OF THE TEAM OWNERS 3) A CENTRAL ADMINISTRATIVE UNIT THAT NEGOTIATES CONTRACTS & AGREEMENTS ON BEHALF OF THE LEAGUE
  • 30. LABOR-MANAGEMENT RELATIONS -5 UNIQUE CIRCUMSTANCES & CONDITIONS RELATED TO THE LABOR- MANAGEMENT RELATIONSHIP IN NORTH AMERICAN PROFESSIONAL SPORT: 1) BASEBALL’S ANTITRUST EXEMPTION 2) COLLECTIVE BARGAINING 3) FREE AGENCY 4) SALARY CAPS 5) PLAYER DRAFT
  • 31. THE ROLE OF THE ELECTRONIC & NEW MEDIA -PLAY A CRITICAL ROLE IN DRIVING THE POPULARITY OF PROFESSIONAL SPORT & GENERATING ADDITIONAL REVENUE FOR ASSOCIATED TEAMS.
  • 32. WHAT WAS THE FIRST ELECTRONIC MEDIUM TO BRING PROFESSIONAL SPORT TO THE MASSES? RADIO
  • 33. TELEVISION HAS HAD A PROFOUND EFFECT ON THE DEVELOPMENT OF PROFESSIONAL TEAM SPORT OVER THE PAST 50 YEARS LEAGUES ASSOCIATED WITH ROFESSIONAL SPORT NEED TV FOR 3 REASONS: 1) THE LEAGUES & MEMBER TEAMS REVEIVE SIGNIFICANT REVENUE 2) TV ENHANCES THE ENJOYMENT ASSOCIATED WITH WATCHING PROFESSIONAL SPORT EVENTS 3) TV HELPS INCREASE THE AMOUNT THAT TEAMS & LEAGUES CAN CHARGE FOR SPONSORSHIPS
  • 34. REVENUE SOURCES FOR PROFESSIONAL SPORT TEAMS
  • 35. MEDIA CONTRACTS LOCAL TELEVISION CONTRACTS: -”AGREEMENTS MADE BETWEEN PROFESSIONAL TEAMS & REGIONAL SPORTS NETWORKS.” -PROVIDE TEAMS ADDITIONAL REVENUE BEYOND WHAT THEY RECEIVE FROM THE NATIONAL TELEVISION CONTRACT. -MLB, NBA, & NHL ALL PERMIT THEIR MEMBER TEAMS TO NEGOTIATE LOCAL TELEVISION CONTRACTS. -NFL DOES NOT. GENERATES $85-90 MILLION ANNUALLY FOR THE YANKEES.
  • 36. GATE RECEIPTS -THE 2011 YANKEES HAD A $227 MILLION PLAYER PAYROLL. -THE 2011 YANKEES MADE $292 MILLION IN GATE RECEIPTS. -THE 2011 RED SOX HAD A $191 MILLION PLAYER PAYROLL. -THE 2011 RED SOX MADE $180 MILLION IN GATE RECEIPTS. -NFL TEAMS MAKE LESS THAN 25% OF THEIR REVENUE FROM TICKET SALES. -MLB TEAMS MAKE 25% OF THEIR REVENUE FROM TICKET SALES. -NBA TEAMS MAKE 33% OF THEIR REVENUE FROM TICKET SALES. -NHL TEAMS MAKE 50% OF THEIR REVENUE FROM TICKET SALES.