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Chapter 6
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  • 1. CHAPTER 6 DISCUSSION QUESTIONS1) 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 womens 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 localtelevision contracts?17) As late as 1950, gate receipts & concessions accounted for more than what % f the revenue of professionalteams?18) How are licensing revenues generated?19) Define sponsorship.20) Beyond executive positions, jobs associated with professional sport teams typically fall into what 2categories?
  • 2. PROFESSIONAL SPORT “ANY ACTIVITY OR SKILL FOR WHICH THE ATHLETE IS COMPENSATED.”DID YOU REALLYTHINK 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 EXCLUDINGENDORSEMENTS.
  • 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 THECOMMERCIAL NORM.-THE MEDIA USUALLY EXPECTS TO BE PAID FOR CARRYING PUBLICITY FORNON-MEDIA ORGANIZATIONS.-IN PROFESSIONAL SPORT THE MEDIA ARE EXPECTED TO PAY FOR THEPRIVILEGE OF DOING SO.-2014-2022: CBS, NBC, FOX, & ESPN WILL PAY A COMBINED $39.6 BILLION FORTHE BROADCASTING RIGHTS TO NFL GAMES.-2010-2014: CBS & TURNER BROADCASTING WILL PAY A COMBINED $10.8BILLION FOR THE BROADCASTING RIGHTS TO NCAA MEN’S BASKETBALLTOURNAMENT.
  • 13. INCREASED LEISURE-JUNE 10, 2012: RED SOX SET THE RECORD FOR LONGEST REGULAR-SEASON SELLOUT STREAK IN MAJOR U.S. SPORTS WITH THE 745THCONSECUTIVE SELLOUT.-NBA’S PORTLAND TRAIL BLAZERS RECORDED 744 CONSECUTIVESELLOUTS FROM 1977-1995.
  • 14. MOST JOBS ASSOCIATED WITH PROFESSIONAL INDIVIDUAL SPORTS ARE FOUND WHERE? SPORT MANAGEMENT AGENCIES SPORT MARKETING AGENCIES
  • 15. SPORT MANAGEMENT AGENCIES SMGWORLDWIDE ENTERTAINMENT & CONVENTION VENUE MANAGEMENT-WORLD LEADER IN VENUE MANAGEMENT-FOUNDED IN 1977 WITH THE MANAGEMENT OF ITS FITSTFACILITY, THE LOUISIANA SUPERDOME
  • 16. SPORT MARKETING AGENCIES IMG GLOBAL LEADER IN SPORTS, FASHION, & MEDIA-FOUNDED IN 1960, IMG CONNECTS BRANDS & AUDIENCES THROUGHSPONSORSHIPS, LICENSING, MEDIA, CONSULTING, VENUES, TRAINING, & TALENT MANAGEMENT-GLOBAL LEADER IN TALENT REPRESENTATION, COLLEGIATEMARKETING, & SPORTS PROGRAMMING
  • 17. HOW FAR BACK CAN PROFESSIONAL SPORT BE TRACED? OLYMPIC GAMES IN ANCIENT GRAEECE IN 776 BCEATHLETAI-WELL-PAID PROFESSIONAL SPORTSMEN RECRUITED FROMMERCENARY ARMIES & TRAINED EXCLUSIVELY FOR BRUTALCOMPETITION-IN EXCHANGE FOR COMPETING & WINNING, ATHLETAI WERECOMPENSATED 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 WHICHWOULD EVENTUALLY BECOME MAJOR LEAGUE BASEBALL (MLB)
  • 21. NATIONAL HOCKEY LEAGUE (NHL) 1917
  • 22. NATIONAL FOOTBALL LEAGUE (NFL) 1921
  • 23. NATIONAL BASKETBALL ASSOCIATION (NBA) 1949
  • 24. WHAT WAS FOUNDED IN 1887 AS AN OUTLET FOR AFRICAN AMERICANBASEBALL 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 MLBDUE 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 THEMTHE RIGHT TO NEGOTIATE FEES COLLECTIVELY (FOR ALL TEAMS) WITH TELEVISIONNETWORKS.ANTITRUST LAW: A LAW THAT PROMOTES OR MAINTAINS MARKET COMPETITION BYREGULATING ANTI-COMPETITIVE CONDUCT BY COMPANIES.
  • 27. WHAT ARE THE 4 ASPECTS OF PROFESSIONAL SPORT THAT DISTINGUISH IT FROM OTHER INDUSTRIES?1) INTERDEPENDENCE2) STRUCTURE & GOVERNANCE3) LABOR-MANAGEMENT RELATIONS4) 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 THEIRCOMPETITION & SHARE REVENUES TO ENSURE THAT THEIR COMPETITIORSREMAIN STRONG.
  • 29. STRUCTURE & GOVERNANCE-EACH PROFESSIONAL SPORT HAS ITS OWN STRUCTURE & SYSTEMOF GOVERNANCE TYPICALLY REFERRED TO AS THE LEAGUE OFFICE.1) LEAGUE COMMISSIONER2) BOARD OF GOVERNORS OR COMMITTEE STRUCTURE COMPOSED OF THE TEAM OWNERS3) 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 PROFESSIONALSPORT:1) BASEBALL’S ANTITRUST EXEMPTION2) COLLECTIVE BARGAINING3) FREE AGENCY4) SALARY CAPS5) PLAYER DRAFT
  • 31. THE ROLE OF THE ELECTRONIC & NEW MEDIA-PLAY A CRITICAL ROLE IN DRIVING THE POPULARITY OFPROFESSIONAL SPORT & GENERATING ADDITIONAL REVENUE FORASSOCIATED 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 YEARSLEAGUES 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 EVENTS3) TV HELPS INCREASE THE AMOUNT THAT TEAMS & LEAGUES CAN CHARGE FOR SPONSORSHIPS
  • 34. REVENUE SOURCES FOR PROFESSIONAL SPORT TEAMS
  • 35. MEDIA CONTRACTSLOCAL TELEVISION CONTRACTS:-”AGREEMENTS MADE BETWEEN PROFESSIONAL TEAMS & REGIONAL SPORTSNETWORKS.”-PROVIDE TEAMS ADDITIONAL REVENUE BEYOND WHAT THEY RECEIVE FROM THENATIONAL TELEVISION CONTRACT.-MLB, NBA, & NHL ALL PERMIT THEIR MEMBER TEAMS TO NEGOTIATE LOCALTELEVISION 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 TICKETSALES.-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.