Study Guide Exam 2 Chapter 6 Professional Sport 1 Define explain and discuss the development of professional sport Professional sport any sport activity or skill for which the athlete is compensated History Ancient history traced back to ancient Greece the Olympic Games in 776 BCE Baseball first team sport to employ pros MLB 1876 NHL 1917 NFL NBA 1949 Inclusion AND EXCLUSION Segregated until 1947 Jackie Robinson Slower for women s sports Pro sport outlets have arisen only in the past 70 years Factors affecting growth Radio only 3 TV stations off at night Media and the Sports Broadcasting Act antitrust Allowed networks to obtain leaguewide rights therefore more 2 Describe the unique facets of professional sport including its governance and the labor management relationship on which professional sports depend Interdependence The need of the teams to compete and cooperate simultaneously League think teams must recognize the importance of their competition and share revenues to ensure that their competitors remain strong Revenue sharing each league pools its revenues to a certain extent Luxury tax MLB NBA use to tax teams categorized as paying too much defined by CBA on payroll and then the revenue from this tax is distributed to other lower payroll teams Structure Governance League commissioner Board of governors or committee structure composed of the team owners A central administrative unit Labor management relations Baseball s antitrust exemption Federal Base Ball Club of Baltimore Inc v National League of Professional Base Ball Clubs decided that baseball was local in nature didn t produce an actual tangible good ergo not subject to interstate commerce Effect Team owners have significant leverage over the cities in which they operate Collective bargaining process by which management labor negotiate work terms Free agency Salary caps establish a league wide payroll that can t be exceeded in most cases guarantees players will receive an established of all gross revenues Player draft 3 Document the significance of the relationship between media and professional sport No single factor has influenced the popularity of sport the escalation in player salaries free agency and the growth and increase of corporate involvement in professional sport more than television Role of electronic and new media Network television cable satellite TV radio internet Importance of television Revenue from network etc enhances enjoyment sponsorships the single most important thing driving growth these other facts Emerging sources of media coverage Fans can now pay to see every game 4 Describe the major revenue sources for a professional sport team Each league has its own network sponsorship alternative TV Media contracts Gate receipts Portion may be shared with league Licensing and merchandising revenues Def when leagues and teams grant merchandise and apparel manufacturers the right to use their names and logos Shared with league Domestic licensing revenues however have begun to plateau as the market for such merchandise has become saturated revenue stream appears to have leveled off during the 2000 through 2010 period Def 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 Stadium naming rights signage virtual LED etc Sponsorship Future Challenges Facing Professional Sport Maintaining labor management harmony in the face of rising salaries When is an athlete paid enough Developing new revenue streams Technological advances Meeting the challenges created by technology Too many ways to access and other things to do Video games movies etc Dealing with globalization cultural differences etc Identify the types of employment opportunities available in this segment of the sport industry Executive positions 5 Chief executive or operating officer CEO COO Chief financial officer CFO Chief marketing officer CMO o o o o General counsel o General manager Player personnel positions Player personnel o o Medical training and team support o o o Video support staff o Coaching staff Player education and relations Stadium and facility staff Business positions Ticket sales Corporate sales o o o Game experience o Advertising Promotions o Community relations o o Media relations o Database marketing coordinator o Hospitality coordinator o ticketing Chapter 7 Intercollegiate Athletics 1 Define intercollegiate athletics Intercollegiate athletics essentially college sport programs 2 Demonstrate an understanding of the events surrounding the development of intercollegiate athletics Started with contest between Harvard and Yale to test superiority of oarsmen Later 1800s college sport ran by students early part of 1900s shift towards pro coaches overspecialization emphasis on beating rivals Deaths in college football caused Teddy Roosevelt to host a conference leading to formation of Intercollegiate Athletic Association which later became known as the NCAA NCAA Largest and most influential college sport governing body in U S More than 1 288 colleges Membership separated into three divisions Football subdivisions Football Bowl Subdivision FBS Football Championship Subdivision FCS www ncaa org Rules are made by division Started championships for women in 1981 4 3 Describe the purposes of intercollegiate athletics governance organizations Role of intercollegiate athletics in a university Purpose of university to serve the needs of society Financial stakes high evidenced by large media contracts Identify key administrative personnel within intercollegiate athletics departments 5 Identify the roles and responsibilities of personnel working intercollegiate athletics departments NACDA NACWAA Director of Athletics Growing business demands associated with position Associate Assistant Athletics Directors Senior Women Administrator SWA not a position title per se ensure that women s interests are represented in decision making processes First lane managers responsible for specific work groups in the athletics departments Director of Student Athlete Academic Services Director of Business Director of Compliance rule book Director of Sport Marketing Promotions Development Public Relations Director Director of Events Facilities Sports Information Director College Sport Finance Ticket Manager Equipment Manager Director of Operations for each sport Generating revenue vs turning a profit Knightcommission org Gender equity Title IX No