Chapter 03


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  • Chapter 03

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