This document provides an overview of the sport management field. It discusses the growth of the sport industry and commercialization over time. Key topics covered include the scope and sectors of sport management, including the size of the industry and how money is spent. Challenges and opportunities for the future of sport are also examined, such as the impact of technology and globalization.

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