goal of sports managers
To get workers to do what the manager wants in an efficient and cost-effective manner
Taylorism
�Workers should not be doing the same job different ways, but instead in the "one best way" (most efficient way)
�Manager can get workers to perform job the "best way" by enticing them with economic rewards
Hawthorne studies
Social factors in the workplace were important, and job satisfaction and output depended more on cooperation and a feeling of worth than on physical working conditions
Mary Parker Follett
Believed that effective, motivational management existed in partnership and cooperation
Organizational Behavior
�Study and application of human side of management
�Includes dealing with modern changes (Downsizing, Globalization, information technology, Diversity)
�Better human resources = "competitive advantage
Functional areas of management
planning, organizing, leading and evaluating
Planning
�Defining organizational goals and determining the appropriate means by which to achieve these desired goals
�Setting "course of action" for the sport organization
�Organizational plans change and evolve
�Should not be viewed as "set in stone"; adjustable
Organizing
�Putting plans into action; manager determines what types of jobs are needed and who will perform them
�Developing an organizational chart
�Developing position descriptions
�Developing position qualifications
�Staffing
�Selection, orientation, training, a
Leading
�"Action" part of the management process
�Delegation
�Involves assigning responsibility and accountability for results to employees
�Managers must manage any differences or changes that may take place in organization
�Managers handle conflicts, work probl
evaluating
�Measuring and ensuring progress toward organizational objectives
�Progress is accomplished by the employees effectively carrying out their duties
�Establish reporting systems, develop performance standards, compare employee performance to set standards,
Communication
�Knowing how to say something to another person is equally as important as knowing what to say to another person
�Answering each question professionally and courteously wins a lifelong fan
�Sport managers must be able to write in many different styles
managing diversity
�Differences between individuals, such as age, race, gender, sexual orientation, disability, education, and social background
�Women and minorities are still underrepresented in managerial positions in the sport industry
�Employment process: Recruitment,
managing technology
�Usage of technology in the sport industry
�The importance of social media in promoting athletes, teams, and products
�Usage of technology in the workplace
decision making
�Gathering and analyzing information
�Classic model of decision making (Define problem, Generate alternatives, Evaluate alternatives, select best alternative)
�Participative decision making
organizational politics
�Use of power or some other resource outside of the formal definition of a person's job to get a preferred outcome
Four types of political tacticsused (Coalitions,Outside experts, Links/networks, Controlling information)
�Sport organizations have formal (
managing change
�Managers should appreciate employees' resistance to change
�Managers should select priorities for change
�Managers should deliver early tangible results
�Managers should publicize successes to build momentum and support
�Managers must make sure top manag
motivation
�Critical for everyone to be on same page when it comes to working to accomplish organizational goals and objectives
�Maslow's hierarchy of needs, Herzberg's two factor ideas, Vroom's expectancy theory, and Adam's equity theory
�Katzell and Thompson: Appr
taking initiative
�enables you to learn about a different aspect of sport organization you are working with
�Allows you to meet and interact with people outside of office you work in, thus increasing your network
�Shows your employer your commitment to working in sport ind
current issues in diversity
�Perform self-study to evaluate effectiveness of recruitment and employment of diverse individuals
current issues in managing technology
�Understand how expanding technology will improve customer relations and service
�Examples: Streaming services, social media, and M-ticketing
current issues in international sport management
�Domestic models of sport governance cannot be unilaterally imposed on other cultures
�Sport leagues exporting product overseas via events, broadcasting, offices, and merchandise
current issues in new management theories
�"Empowerment" and "Emotional Intelligence
marketing
creating, promoting and delivering
sales and marketing
sales men rely on marketing to provide them with marketing materials that allow them to sell in order to generate revenue, no reason to market if not to sell
sports marketing
�Create "demand" for products and services: Create, promote, deliver goods and services to consumers and businesses
�Obtain the best possible understanding of who the "target market" is and what they want
�Includes the marketing of: Products: (Equipment,
Mark McCormack
�Founded IMG in 1960s; first sport marketing firm
�Visionary: Back in the 1990s he predicted significant growth in Asia, South America, Africa
�Now international with broad service categories
Roone Arledge
�: Sport placed in "primetime" with ABC Monday Night Football; combined entertainment and sports
�Helped the industry evolve from pure, factual reporting aimed at sport fans to sport entertainment
�Led to proliferation of sport channels and sport networks
Sport Sponsorship
The acquisition of rights to affiliate or directly associate with a product or event for purpose of deriving benefits related to that affiliation
ex. Packaging of the Nike brand, product, advertising, and athlete into one personality
Albert G Spalding
�First to capitalize on the use of the word official
Ambush Marketing
�Capitalizing on the goodwill associated with an event without becoming an official sponsor
Bill Veeck
�Sport marketing pioneer in professional baseball
�Philosophy: Team must provide reasons other than the game itself for people to attend and support franchise: Create the greatest joy for the greatest number of people, Ensure a pleasurable attending exper
Matt Levine
�Credited with formalizing customer research in sport industry; used strategies such as audience audit, intercepts, focus groups
�Collected demographic and psychographic info
Pass-by interviews
�On-site interviews in heavy traffic areas such as malls
Marketing Mix
�Controllable variables that company puts together to satisfy a target market
�Product (actual event vs. experience)
�Price (depends on value or perceived value)
�Place (preselling and exceptional locations)
�Promotion (advertising, personal selling, publ
Segmentation
�Identifying subgroups of overall marketplace based on demographic, geographic, psychographic, and product usage data
�Ethnic marketing: Growth of Hispanic population, ESPN Deportes
�Generational marketing: Generation Y and action sports
Fan identification
�The personal commitment and emotional involvement customers have with sport organization
�Enhanced long-term loyalty in sport fans
�Sponsorship opportunities resulting from ability to tap into strong emotional connection between a fan and his or her spor
relationship marketing
�Builds mutually satisfying long-term relations with key parties (consumers, suppliers, distributors)
�Begins with customer and encourages integration of the customer into the company
�Builds relationships through communication, satisfaction, and service
eSports
�Established professional leagues have witnessed the growth within eSports leading to 17 NBA franchises sponsoring teams in their new eSports league
�Many questions remain regarding the distribution of material and the potential popularity of sports games
Cord-Cutters
�56.6 million nonpaying television viewers
�Over-the-top viewing
�Young generations moving away from traditional cable, which has had drastic impacts on television's share of total media advertising
�Pro leagues are partnering with social media platforms
Next generation of sports
-Participation in youth sports drive viewership as adults
-Possible that more children drop out of sports for any number of reasons, making it likely that viewership in the coming years will decline
-Major reason for decreasing participation is safety, pa
Value-Added
�There is a difference between an industry's sales and its value-added
�Value-added is a more accurate statistic
�Cost of raw materials and manufacturing are considered when calculating value-added
Finance
1.How an organization generates the funds that flow into that organization
2.How these funds are allocated and spent once they are in the organization
revenues
�Funds raised by an organization through a variety of sources including tickets, merchandise, services, and sponsorships
expenses
�Funds spent to operate an organization such as salaries, equipment, utilities, food, travel, and insurance
profit
�More revenues than expenses
�Can be enhanced by increasing revenues, decreasing costs, or both
income statement
(statement of activity or profit and loss): Summarizes an organization's revenues, expenses, and profits over a given time period
Assets
Anything an organization owns that can be used to generate future revenues (facility, equipment)
Ways to fund assets
�Owners' equity: The amount of their own money owners have invested in the firm
�Debt: Money an organization borrows (bonds)
�Franchise ownership groups
�Corporate conglomerates
Publicly traded sport companies
debt
�The amount of money an organization borrows from banks or other lenders in the market
�Organization is legally obligated to pay back the original amount borrowed (principal) plus interest
bonds
�Financial instruments that allow the borrower to both borrow large dollar amounts over an extended period of time (20 or more years)
�Issued by government and/or corporate entities
�Often used to fund stadium construction
credit
�Some professional leagues maintain "credit facilities" (loan pools) backed by league revenues
�Individual teams can borrow from the loan pools at better interest rates
�NFL debt has highest credit rating = lowest credit risk = can borrow at lowest intere
balance sheet
A financial statement that summarizes an organization's assets, liabilities, and owner's equity at any given point in time
Return on investment
�The expected dollar value return on each alternative investment, stated as a percentage of the original cost of each investment. there is a risk associated with all investments
risk
�Because the future is uncertain, the future benefits of any investment cannot be known with certainty at the time the investment is made
�Level of risk must be considered by sport managers prior to any future investment
economics of sports
�The general field of (micro) economics examines how an industry organizes itself and how this industry structure affects competition and profits among firms in the industry
legal monopolies
�Face no direct competition from rival leagues
Gives them greater bargaining power when dealing with stakeholders and allows them to potentially charge higher prices
-Allows them to earn much higher profits than would otherwise be the case, as well as ena
Sport law
�Application of existing laws to the sport setting
Some new laws have been enacted specifically for the sport industry
�When a dispute arises over interpretation of a rule or regulation, sport lawyers often represent both the governing body/association an
Tort law
�provides monetary damages to compensate an injured person (plaintiff)
-occur when a person purposely causes harm to another or engages in activity that is substantially certain to cause harm
history of sports law
�Many of earliest U.S. lawsuits in sport industry involve professional baseball (first pro sport league)
�First sport law course was offered in 1972 at Boston College Law School
�Many sport management programs include Sport Law class in curriculum
growth in sports law
�Legal profession is more specialized
�Amount of litigation and diversity of cases in sport industry have increased as more people rely on the courts to resolve disputes
Many athletic associations have adopted own governance systems with rules, regulation
risk management
Developing management strategy to maintain greater control over legal uncertainty
DIM process
related to risk management
�Develop, Implement, and Manage risk
�Include all employees in the three-stage process
Judicial review
�Occurs when plaintiff challenges a rule in sport organization and court determines whether it should review the sport organization's decision
when will courts intervene
�Violates/misapplies its own rule
�Violates a statute
�Violates public policy
�Violates constitutional law and it is a state actor
�Acts as arbitrator or in a capricious manner
�Exceeds the scope of its authority
Tort Liability
�An injury or wrong suffered as the result of another's improper conduct
gross negligence
�occurs when defendant acts recklessly and fails to realize harm caused
�Negligence is an unintentional tort and is the most common tort that sport managers encounter
sports managers are negligent when
�They commit an act/omission causing injury to a person to whom they owe a duty of care
� imposes a duty to refrain from careless acts
duty of care examples
�Relationship inherent in the situation
�Voluntary assumption of the duty of care
�Duty mandated by law
vicarious liability
�Allows plaintiff to sue superior for the negligent acts of a subordinate
�Employer need not be negligent to be liable
�Three defenses available
�Employee was not negligent
�Employee was not acting within scope of employment
�Employee was an independent c
Agency law
�Agency describes a relationship in which one party, the agent, agrees to act for and under the direction of another, the principal
�Purpose of agency law is to establish duties that principals and agents owe each other
�Agency law is an important compone
contract
�Written or oral agreement between two or more parties; creates legal obligation to fulfill the promises
�Sport managers negotiate and enter intocontracts regularly with or without legal advice
valid contract
�Offer and acceptance (mutual assent)
�Consideration (value)
�Legality (subject matter legal and not against public policy)
�Capacity (disaffirm at any time)