Here are the top 3 NBA jersey sponsors so far: 1. StubHub (Warriors) 2. Chase Bank (Bulls) 3. Coors Light (Nuggets)

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)

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 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.

37. LICENSING & MERCHANDISING REVENUES
-THE RED SOX & YANKEES ACCOUNT FOR A LITTLE MORE THAN HALF
OF ALL MLB MERCHANDISE SALES.

38. -LICENSED MERCHANDISE BASED ON SPORTS PROPERTIESTOTALED
$12.5 BILLION IN THE US & CANADA IN 2009.
-THE BIG 4 PROFESSIONAL SPORTS LEAGUES ACCOUNT FOR 65% OF
THE LICENSED SPORTS MERCHANDISE SOLD IN THE US & CANADA.

39. THE TOP SELLING MLB JERSEY IN 2012
DEREK JETER

40. TOP SELLING NBA JERSEY 2012
DEREK ROSE

41. TOP SELLING NHL JERSEY 2012
CLAUDE GIROUX

42. THE TOP SELLING NFL JERSEY IN 2012 SO FAR
PEYTON MANNING

43. SPONSORSHIP
“THE ACQUISITION OF RIGHTS TO AFFILIATE OR ASSOCIATE DIRECTLY
WITH A PRODUCT OR EVENT FOR THE PURPOSE OF DERIVING
BENEFITS RELATED TO THAT AFFILIATION OR ASSOCIATION.”
-ONE OF THE MOST PERVASIVE FINDINGS IN SPONSORSHIP IS THAT
THE BEST EFFECTS ARE ACHIEVED WHERE THERE IS A LOGICAL
MATCH BETWEEN THE SPONSOR & SPONSOREE.

47. MLB “OFFICIAL BEER SPONSOR”
ANHEUSER-BUSCH INBEV
-$20 MILLION/YEAR THRU 2018
-OFFICIAL MLB BEER SPONSOR FOR 33 YEARS
-BEER SPONSOR FOR 23 OF 29 US MLB TEAMS

48. NHL “OFFICIAL BEER SPONSOR”
MOLSON COORS
-7 YEAR DEAL (2011-2018) WORTH $375 MILLION
-BIGGEST SPONSORSHIP AGREEMENT IN NHL TUESDAY

49. WHAT ARE THE ONLY 2 COMPANIES WITH ON-FIELD PRESENCE AT NFL
GAMES?
-GATORADE (COOLERS) & MOTOROLA (HEADSETS)
-PEPSI: $2.3 BILLION DEAL THROUGH 2022 PLAYOFFS
-BRANDS: PEPSI, GATORADE, FRITO-LAY, TROPUCANA, & QUAKER
OATS

50. NBA
-BOARD OF GOVERNORS VOTED TO ALLOW ADVERTISING PATHCHES
ON JERSEYS STARTING IN THE 2014-15 SEASON
-PROJECTED TO GENERATE $100 MILLION PER SEASON, SPLIT 50-50
BETWEEN OWNERS & PLAYERS