SPTE 201 USC ELIZABETH MCMILLAN Exam 1

Myths in Sports

1) Opportunities are limited

2) Short term opportunities are not worthwhile

3) Opportunities for minorities are limited

4) Opportunities for females are limited

Reality (old - not accurate)

1) Projected GNP $200-425 Billion

2) Fourth largest growth rate

3) Growth approximately 27%

What to expect in the sport industry

- Competition

- Nontraditional hours

- Entry level positions (low pay)

- Exciting opportunities

- Growth & advancement

- Industry "perks"

Reasons for Sport Management

- Revenue potential in sport

- High salaries in sport

- Recognition gained in sport

- Spectator interest

- Sport as a political tool

NASSM

North American Society of Sport Management

Birthplace of Sport Management Education

- Walter O'Malley (1957-Miami) - Initial Idea

- James Mason (1966-Ohio) - First implementation

Unique Aspects of Sport Management

- Marketing

- Financing

- Career Paths

- Customer base (fans)

- Participants

- Venues

Why Should We Study Sport

- Sport is omnipresent

- Increase in sport coverage

- Athlete serving as role models

- Socio-cultural myths in sport

Socio-cultural Myths in Sport

- Collegiate sports = huge profits

- Title IX (1972)= Gender equality in sport

- Title VII = Employment equality

- Sport gambling = Victimless crime

- Professional sport = Community economic boom

- Sport participation = Drug free environment

- Race = Equality in sport

Deviance in Sport

- Any act that violates the norms of an activity

- Sport Norms vs Societal Norms

Diversity

- Race/color discrimination

- Title VII of the Civil Rights Act (1964)

- Sex discrimination

- Religious discrimination

- Disability discrimination

- Age discrimination

Socio-cultural Methods Used to Understand Sport Behavior

- Surveys

- Interviews

- Observational studies

Functions of Sport

- Entertainment

- Educational tool

- Art form

- Recreation

- Political tool

Functions of Management

Planning, Organizing, Directing, Monitoring

Planning

Identifying goals, establishing objectives, and implementing action plans within the constraints of the organization

Organizing

Delegation of tasks to different individuals and work groups

Directing

Motivating and leading employees towards the achievement of organizational goals

Monitoring

Measuring the performance of employees and work groups against established standards

Preliminary

Screening process prior to hiring or assigning a task to an employee

Concurrent

Evaluation of employee performance at different points during the completion of the task

Feedback

Evaluation of employee performance after the completion of the task

Skills of Management

Technical skills, Human skills, Conceptual skills

Technical Skills

Specific knowledge needed to perform tasks associated with a particular position

Human Skills

Ability to lead, motivate, and communicate with employees

Conceptual Skills

Understanding of the different "parts" and how they combine to make the "whole"

Levels of Management

Top level, middle management, first level management, non-level management

Top Level Management

Conceptual skills, some human skills

Middle Management

Human skills, some technical skills

First Level Management

Technical skills, human skills

Decision Making

- Takes place within each function of management

- Your ability to solve and make correct (productive) decisions in part

- Determines your success as a manager

Problems vs Opportunities

Organizational problem, Organizational opportunity

Organizational Problem

Situation that could reduce the effectiveness of organizational operations

Organizational Opportunity

Situation that represents a chance for organizational growth

Routine Decisions

Clear decision criteria, repetitive in nature, application of established rules

Complex Decisions

Complicated decision criteria, difficult to clearly define/frame, lack of established rule/policies

Group Decision Making Advantages

Ability to gather and analyze large amounts of information, increased employee understanding of the issues, improved member support of the final decision, better execution of the decision

Group Decision Making Disadvantages

Longer time requirement, Employees may not have necessary knowledge/experience required in a particular situation, Employees may not have access to information needed to make the correct decision

Managerial Roles

Interpersonal, Informational, Decisional

Interpersonal

Figurehead, Leader, Liaison

Informational

Monitor, Disseminator, Spokesperson

Decisional

Entrepreneur, Disturbance handler, Resource allocator, Negotiator

Leadership vs Management

Often used as interchangeable concepts, now more seen as complementary, Leadership focused more on human and conceptual skills, Managers more closely attuned to technical skills

What is Charisma?

Weber (1947), House (1977)

How Does Charisma Work?

Trait, Attribution, Interaction

3 Main Elements that Leaders Must Understand

Modes of communicating, Non-verbal communication, Personal communication style

Economics

Economics is the dynamic study of collective human behavior, typically it involves the study of the market system

Economics in Sport

- Supply and demand within the sport industry

- The market for sport broadcast rights

- The relationship between team costs, profits and winning

- The value of sports talent

Opportunity Costs

- What you must give up to have what you wanted

- Arlington, TX gave up $325 million in public funds to build a sports stadium that may have been used to better the community infrastructure or improve public schools

Marginal Costs

- How much more you have to spend to get some more of what you want, without worrying about what you already have spent

- For a professional team, signing a player to a contract might drastically increase payroll. The marginal costs are not changed however. Teams sell tickets which allow people to see the players on their roster and have to pay players no matter how many people came to see them play

Law of Demand

When the price of an item declines, the demand for that item increases

Demand Curve

Relationship between the amounts of product a company or companies wish to sell and price

Equilibrium Pricer

- The point where the supply curve and the demand curve intersect

- Where the amount of product demanded equals the amount of product supplied

Economic Impact

Net economic change in a host community that results from spend attributed to a sport event or facility

Tangible Benefits

Residents, jobs, new money, visitors, subsidize event or facility, city council

Types of Spending

Direct, Indirect, induced

Direct Spending

Measures actual dollars spent in a local community during an event whether it is onsite or offsite

Direct Spending Examples

Concessions, tickets, hotels, shopping, restaurants

Indirect Spending

Develops from direct spending. Effects profits and extra incomes that come into local business and households who then spend these extra dollars

Induced Spending

The portion of consumption that varies with disposable income

Steps to Completing an EIS

- Define the local economy

- Determine the method for collecting data

- Collect the data

- Analyze the results and calculate direct spending

EIS Uses in Sports

- Indiana Sports Commission

- Maryland Department of Business and Economic Development

Reality and Myth

- EI studies used to justify the use of public funds to build new sport venues

- Studies produced that gave the impression that for the right price one could get as large of an impact number as needed

- For a team moving to a city, two studies could differ by over $100M

Intangible Benefits

- Atlanta Olympics

- Psychic Income

- The real, yet tangible, qualities associated with community pride, prestige, and competitiveness that may be associated with major sport and event hosting

National Association of Sports Commissions (NASC)

Attempted to address the abuses associated with community price, prestige, and competitiveness that may be associated with major sport and event hosting. Main issue is experts disagree on how to conduct these studies

Visitor Spending

The dollars left in a community by persons that came to the community because of the event. Spending by local residents (those who live within the community which hosts the event) is excluded

Who is John Humphrey?

Budget director for the athletic department

Guarantees

A contracted amount of money that one school pays another school to play them in a sport at home

Which Sport Brings in the Most Revenue?

Football

Which Sport Loses the Most Money at USC

Women's Basketball ($5.5M lost last year)

Did Baseball or Men's Basketball Have Higher Ticket Sales at USC

Baseball