Introduction to sport management

1. 1
Introduction to Sport
Management
C H A P T E R
Contemporary Sport Management (5th)

3. • Scholarly Society
– North American Society for Sport Management (NASSM),
– Sport Marketing Association (SMA),
– Sport Management Association of Australia and New Zealand
(SMAANZ),
– European Association for Sport Management (EASM)

4. • Working in Sports
– Intercollegiate Athletics
– Professional Sports
– Facilitiy Management
– Campus Recreation
– Community – based sports
– Sports Information
– Sport Marketing
- Sports Journalism
- Sports Club Management
- Physical Fitness
- Athletic Training & Sports Medicine
- Consulting
- Entrepreneurship

5. • Some things to consider…
– No other industry or business is viewed as
simplistically by individuals who are not directly
working in it
– No other industry has as much personal
identification with its consumers
– A sport management degree does not guarantee a
job in the field

6. • Some things to consider…
– Hours are long and pay may be low
Avg Hr/Week Underpaid in
position
Big 4
League/Teams
60.8 47%
Other
leagues/teams
58.2 37%
Colleges 58.3 50%
Sport Marketing
Agencies
55.5 48%
Stadium/Arena 55.2 52%
Corporation 55.56 70%
Media 55.3 33%

7. • Some things to consider…
– Lots of people want to work in sports
– Over 350 Sport Management programs in
the United States
– What are you going to do to stand out?

8. Top 20 Skills & Qualities Desired in New Hires
• Communication
• Honesty/Integrity
• Interpersonal Skills
• Strong work ethic
• Teamwork
• Analytical skills
• Motivation/Initiative
• Flexibility/Adaptability
• Computer Skills
• Detail-oriented
• Leadership skills
• Organizational skills
• Self-confidence
• Friendly/outgoing personality
• Tactful/polite
• Strong GPA
• Creative
• Entrepreneurial
• Sense of humor

9. Amount Units Year
Estimated Size of the Entire Sports Industry, U.S. 498.4 Bil. US$ 2015
Estimated Size of the Global Sports Industry 1.5 Tril. US$ 2015
Annual Company Spending for Sports Advertising,
U.S.
34.9 Bil. US$ 2015
From Plunkett Research, Ltd.
Sport Industry Size
https://www.plunkettresearch.com/statistics/sports-industry/

10. How is all the $$$ spent?
• Sponsorships
• Media Broadcasting Rights
• Endorsements
• Multimedia (Magazines, video games,
DVDs)
• Medical Spending
• Spectator Spending (tickets,
concessions, merch)
• Operating Expenses
• Advertising
• Professional Services (facility
management, financial legal,
insurance, marketing agencies)
• Facility construction
• Licensed goods
• Internet (ads, fees)
• Sporting Goods
• Travel
• Gambling

11. Defining Sport and Sport Management
• Sport vs. sports
• Scope of sport?
– “Any activity, experience, or business enterprise for which the primary
focus is fitness, recreation, athletics, and leisure related.” (Pitts,
Fielding, & Miller, p.18)
• Sport management defined
– “The study and practice of all people, activities, businesses, or
organizations involved in producing, facilitating, promoting, or
organizing any sport-related business or product.” (Pitts & Stotlar,
2007, p. 4)
– Management vs. administration

12. Nature and Scope of Sport Industry
1. Types of sports
– Traditional sports
– New sports
• E-sports
• Extreme (action) sports
• Snowboarding
• Aerobics
• Indoor soccer
http://www.cbsnews.com/news/the-competitive-world-of-esports/

13. Nature and Scope of Sport Industry
2. Settings for sporting activities
– Single sports and multi-sports
– Media
– Sports sponsors
– Professional services
– Facilities
– Manufacturers and retailers
– Events, meetings, and trade shows

14. Nature and Scope of Sport Industry (continued)
3. Models of sport industry segments
– Sport activity model

15. Sport activity model

16. Special Aspects of Sport Management
• Sport (events) marketing
– Perishable: spontaneous production and consumption
– Unpredictable
– Intangible
– Subjective and heterogeneous
– Socially consumed

17. Special Aspects of Sport Management
• Sport enterprise financial structures
– A large portion of revenues from extraneous sources (e.g., TV rights,
sponsorship, merchandise, road game guarantees, and concessions)
rather than the sale of a service (e.g., game, workout, or 10K run).
– More sport related consumption (e.g., travel, entertainment, and
equipment) than sport itself.

18. Special Aspects of Sport Management
• Sport industry career paths
– Relatively closed society
– Underrepresented groups
• Sport as a social institution
– Reflecting an individual’s social identity
– Involving various social knowledge (e.g., historical, psychological,
sociological, cultural, and philosophical knowledge)

19. • Early Stage
– 1870s, the starting point of the commercialization of sport industry
• Urbanization
• Technology, e.g., railroads, telegraph, newspaper, and printing industry
• Entrepreneurs
Historical Aspects of Commercialization in Sport

20. – In the early stage of commercialization, sporting goods segment
accounted for a large portion of the sport industry
e.g., A. G. Spalding & Brother, Draper & Maynard, and B.F. Goodrich
Historical Aspects of Commercialization in Sport

21. Historical Aspects of Commercialization in Sport
Case Study: A.G. Spalding & Brothers
One of the first and most successful sporting goods firms
– Vertical integration
– Diversification
– The development of a modern management system
– The promotional skills of A.G. Spalding himself
https://www.youtube.com/watch?v=lC04CQbyFwM

22. Segmentation
• Segmentation
– In the early 20th century, the segment of sport marketing commenced
as sport practitioners recognized that the market for sport participants,
sport audiences, and sport equipment purchasers was segmented.
https://www.youtube.com/watch?v=V0v92-JfpW8

23. Segmentation
– Key sport segments over the decades
• White male middle-class sport enthusiasts in US cities.
• Youth market
– Participation rate for youth was up and there was increasing number of boys
purchasing sport equipment.
– Today’s youth participant would become tomorrow's adult participant.
• Upper-and middle-class women

24. Segmentation
– Methods of reaching market segments
• Window displays
– Attracting consumers who were not yet aware of what they needed.
– Informing consumers about new development of equipment, teaching people
about sport, and educating them about the benefits of participation.
• Athlete endorsements
– Babe Ruth, Honus Wagner, Ty Cobb

25. Segmentation

26. Segmentation

27. Further development
• Impact of WWI on sport industry
– Highlighted the role of sport in nurturing and developing manly traits
– Introduced a new source of revenue (e.g., Military training programs)
– Popularize sport among people
– Legitimize sport programs as part of public policy

28. Further development
• WWII’s impact on sport industry, events, and goods
– Severely curbed the production of sporting equipment, especially
goods made from rubber, leather, wood, cotton, and petroleum.
– Many sporting activities and events were suspended, terminated, or
affected.
– However, amateur sports flourished during the war.
– https://www.youtube.com/watch?v=QyTJ-UVclLY

29. Further development
• Sport industry keep growing to meet needs of participants
and spectators
– Integration and breaking of color barriers in sport starting in 1940s
• Jackie Robinson
– Entrance and growth of women into sport starting in WWI.
• In 1943, 1st women professional sport league: All-American Girls
Professional Baseball League (AAGPBL)
• Billie Jean King
– Battle of the Sexes
https://www.youtube.com/watch?v=Nc8WvVv5k2s
https://www.youtube.com/watch?v=e2QCFYpjH-4

30. Table 3.1

31. Future Challenges and Opportunities
• Technology
– Information delivery and exchange (Social media, Satellite tech)
– Stadium design (Wifi, Jumbotron)
– Equipment update (Helmet, Shoes, Racquet, Mobile devices)
– Sport events
– Performance Advances
• https://www.youtube.com/watch?v=8COaMKbNrX0

32. Future Challenges and Opportunities
• Ethics and social responsibility
– e.g., game fixing, sport gambling, racism
Sport as a socializing agent, unifier, vehicle for social transformation

33. Future Challenges and Opportunities
• Globalization of Sport
• NBA in China
– https://www.youtube.com/watch?v=e8dTR5Un8yY
– 70 million Chinese social media followers
– $140 million/year online streaming rights with Tencent
– NFL 400,000 Chinese social media followers
– $90 million/year - MLS TV contract with Fox and ESPN

34. Figure 1.4 Sport Mgmt Task clusters