History: What is it good for?Past informs the present:Offers understanding of how market conditions influence success/failureIllustrates how certain managers were visionaries in developing sport businessAll of the above can be used to “model” modern management practicesEarly Organized Sports Entertainment SpectaclesThink about the movie Gladiator as there is a crowd, arena, etc.The consumption of sport as entertainment has not changed muchRoots of Sport and SM in the United StatesEngland influenced early sports development:Empire exported their sports/system to coloniesSports clubs:Provided sport activities for members (elites)By 1800s, they standardized rules and organized competitionsJockey Club in the United States (know this):Earliest example of club management (mid-1700s)Had significant and lasting influences on SM in the United StatesUnited States Sport: Mid-to-Late 1800sTrends that aided development of SI:Urbanization (by 1870)Growing middle class brought entertainment (e.g., sport)There is now the mass for entertainment and mediaTechnological influences (mass distribution)Telegraph, newspaper, railroadsSport Performance segment first to modernize:Baseball and horse racing had structured organizationStandardization and regulation of sport productCould argue this is the early emergence of what we call “sport governance”Late 1800s: Sporting GoodsMass production of bicycles and baseball gloves (golf was really popular too)B.F. Goodrich begins to make golf ballsSpalding (and brothers)Vertical integration (production and retail)Diversification/brand extensions (offered products for variety of sports)Development modern management system (decentralized, they were able to have regional operations)Utilize promotional (marketing) strategies like advertisingVisionaryCompetition in bicycle industry heats up:Bicycle craze went from 1893 to 1898Industry went from 27 companies to 312Industry trendsUsed slogans and trademarks for brand recognitionBegan to use adverting (emotional appeal)Above practices later adopted by other sport businessesLate 1800s: College AthleticsSports EntertainmentFirst college football (rugby) game: 1869Admission first charged 3 years later (Yale vs. Columbia)Discovered people would pay to watchIntercollegiate Football Conference: 1876Created rules and standardized methods of playOrganized annual Thanksgiving day gameBy 1881, 10000 fans paid fifty cents to watch gameLate 1800s: Pro BaseballSport Performance SegmentBaseball surpasses cricket in popularityFirst, organized under club systemLater, loosely organized leagues formedNational Association first pro baseball: 1871William Hulbert takes control of league in 1876Profit-oriented baseball gains legitimacyTied owners to a schedule and enforced rulesEarly 1900s: Age of OrganizationSport Performance SegmentSport becomes increasing popular with consumers by turn of the centuryYMCAs begin to organize and marketUnited States Lawn Tennis Association createdUnited States Golf Association organizedColleges begin to offer more sportsOrganizations begin to segment/target marketsGrowing middle class prime targetAdvertising becomes increasingly important1910: Endorser AdvertisingSport Promotion PracticesMaker of Louisville Slugger signs endorsers (recognizes importance of celebrity endorsers)Babe Ruth, Honus Wagner, Ty CobbPublic sought to emulate celebritiesRuth’s popularity leads to other endorsementsCandy bars, tobacco, etc.1930s: Effects of the DepressionSporting GoodsCompetition and Economy hurt profitsManufacturers see need to cooperateChamber of Commerce of Athletic Goods Manufacturers first trade association (know this)Helped to regulate/control competitionHelped to create efforts that would promote sport participation (and subsequent sales)1930s: Corcoran and the PGA (know this he is a visionary)Event MarketingGolf manufacturers hire Fred CorcoranTournaments used to showcase golf productsCorcoran made tournaments self-sufficient (tour stops where cities competed to hold sporting events, sponsors)Used golf as platform to sellLater hired to head up LPGA1940s: Impact of WWIISporting GoodsShortage of material (leather, rubber, wood)Hinders manufacturing of sporting goodsMany professional athletes drafted into militaryCollege and High School programs cutMilitary leagues flourished (morale and fitness)Sports EntertainmentWar increased participation by womenAll American Girls Professional Baseball League (movie: “A League of Their Own”)When war ended Americans looked for more entertainmentMen’s football increasingly popular (NFL)NBA is formed (evolution of the big man)GI Bill and more and more people are going to college1950s: Marketing and TechnologyEvent Marketing and Sports EntertainmentBill Veeck (visionary) uses promotion to market baseballCreated “bat day” to draw fans to baseballUsed fireworks shows after every gameUnderstood the game is entertainmentRevenue, concessionsAdvances in technology draws fansOwners skeptical about TV’s effect on gateEventually seen as tool to increase fan interestAutomobile technology: NASCAR created1960s: Foreign Competition (know this, watershed decade in modern sport business)Sporting goodsPost WWII trade restrictions liftedOpens United States to foreign manufacturersMizuno, Puma, and Adidas enter United States marketForeign competition hurts United States companiesCheaper manufacturing/lower pricesForeign companies among first to deal directly with coaches and athletes1960s: Television Contracts (know this, big reason why the 1960s is a watershed decade)Sport EntertainmentAFL/NFL sign network television contracts (allows leagues to bargain on behalf of their member teams)Television helps grow popularity of spectator sports like football, basketball, and baseballFirst “Super Bowl” between AFL/NFLPlayed in 1967 at LA Coliseum30000 empty seatsLeagues later merge (NFL = AFC + NFC)Joe Namath was a big TV endorser1960s: Growing CommercializationSport Performance SegmentMark McCormick (visionary) creates IMGInternational Management Group reps athletes1970s: Beginning of Health and Fitness CrazeNFL goes primetime: MNFRoone Arledge (visionary) producer for ABC SportsBest known for a weekly sports show called Wide World of Sports and creating MNFBaby boomers begin to challenge meaning of sportFirst generation to have mass interest in health and fitnessBegin to expect more for entertainment dollarSporting Goods and ParticipationNike and Reebok being to take advantage