Exam 4

What are public assembly facilities?

1. Stadiums
2. Arenas
3. Convention center
4. Theaters

Arenas

Indoor facilities that host sporting and entertainment events

\-built to accommodate one or more prime sports tenants or to lure a prime tenant to the facility

Ex. Basketball and hockey

\-recent trends in a facility construction include adjacent practice facilities for the primary tenants to increase event bookings

Stadiums

Outdoor or domed facilities for baseball, football, and soccer teams

\-stadium managers try to maximize bookings, but it is more difficult with a stadium than arena

Cons: far fewer non-sport events can play in stadiums because they are larger than other venues and most other events cannot attract stadium-sized crowds

Convention centers

\- Almost always built and owned by a public entity

\-built to lure conventions and business meetings to a particular municipality

\-public financed bc the rents and fees they charge do not always cover costs

\-the econ impact through local spending during the convention or business meetings can be large

Theaters

* live performance shows
* local companies and touring companies

Who manages these facilities?

* Private management companies-ASM global, Global spectrum
* Professional teams
* Public officials

Pros & cons of private management company

Pros: liability, expertise, connections to promoters

Cons:

Main responsibilities of a facility manager?

* Maximize event dates
* maintain the facility


* event operations/security
* Tenant relations
* Community goodwill (ex. Natural disaster relief)

What are some facility expenses

* Mortgage


* taxes
* Insurance
* Maintenance
* Repairs
* Utilities
* Personnel

What types of events are available to a booking manager?

* Concerts


* festivals & fairs
* Rides
* Sports
* Graduations
* Family shows
* Charity events
* Sponsor events

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What are some key considerations in booking?

* Tenant schedules


* time of year
* Local market/community support
* Set up and tear down
* Historical performance of show
* Annuity events (happen every year)

Anuitty event

Cons: commitment, what if something better comes along, decrease in interest of even

Pro: guaranteed income

What are the current issues surrounding facility management?

* ADA regulations
* Sustainability
* entertainment districts
* safe and security

ADA Regulations

* president George bush signed into law the Americans w/ disabilities act in 1990- requires new facilities to be accessible to people with disabilities including concession areas, public telephones, restrooms, parking areas, drop off and pick up areas, entrances and exits etc
* In 2011, the ADA was updated with a number of changes directly applicable to stadiums and arenas..

Sustainability

* public facilities consume more energy per square foot than any other retail industry
* In response, the facility management industry is working to build green buildings, create green management teams, reduce waste, cut energy use and pollution, etc.
* LEED certification

Entertainment districts

* sports facilities are playing a key role in urban development plans
* Neighborhoods are emerging in which one or more sport facilities serve as anarchies for redevelopment
* Cities frequently balk at sharing costs of stadium construction, but having cities invest in surrounding the stadium w/ entertainment venues, hotels, retail, office space, and public transportation can help the team owners achieve greater long-term financial success

Safety and security

* increased focus, attention, and resources after 9/11
* Bag checks, pat downs, and metal detectors are now normal, regular functions in day to day security operations
* Includes physical barriers to entry, surveillance tech and an increase in security personnel presence
* Covid-19

What is included in a crowd management plan?

* categorizing the type of event
* knowing surrounding facilities and/or environment
* being aware of team or school rivalries, threats of violence, the crowd size and seating configuration
* having an existing emergency plan
* using security personnel and ushers

What are university venues?

* they consist of stadiums, arenas, and theaters that operate under different economic factors
* The market for univeristy and college venues is generally dictated by the student populations

What are metropolitan facilities?

* located in large cities as Madison Square Garden in NY
* a “must play” venue for artisits based on the potential size of the audience

Family events

* geared toward the toddler through the “tween” markets
* usually produced for tv

Facility financing

* starts w/ the federal government, which allows state and local governments to issue tax-exempt bonds to help finance sport facilities
* a bond is a certificate issued by the government or corporation, promoting to pay interest and to repay a sum of money

Why do cities subsidize sport facilities?

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sports facilities improve the local economy in 4 ways:

* building a facility creates construction jobs
* ppl who attend games or work for the team
* a team attracts tourists and companies to the host city,
* multiplier effect as increased local income stimulates more new spending and job creation

Facility ownership…

Falls into 3 categories:

* community or state
* colleges
* private facilites

What are saturated markets?

markets with several venues in a close proximity to one another

What are co-promotional markets?

a deal structure in which risk and revenues are shared

Event management

a team of ppl and entities working together to successfully execute an experience for stakeholders

What skills are most important in event management?

* interpersonal communication
* negotiation
* mediation
* ability to be detail-oriented
* accountability
* efficiency
* ability to recognize patterns/red flags
* understanding of analytics

What tools does an event manager use?

* checklists


* riders/responsibilities
* action items
* timelines
* EOP/Event overviews/All agency meetings

crowd management

having barriers, fences, etc in place to deal with traffic of people before they have the chance to get out of control

crowd control

physically moving people out of an area ex. by horse

how many people does it take to become a “crowd”?

depends on the space

what factors affect the behavior of a crowd?

* time
* “doors open @ 10:30”
* space/facilities
* concourse width/emergency egress points
* festival seating (general admissions/open standing area)
* information/communication/leadership
* staff training
* credible directions/instructions
* energy/emotion
* demographics
* biases
* 5% of ppl can influence how a crowd moves

Space/facilities

high density crowd: 6+ ppl per sq meter

* individuals lose the ability to move around
* crowd surge
* leads to progressive crowd collapse: when someone falls ppl involuntarily move into that space and often fall on top of them, causing more people to move and fall

Hillsborough 1989

Soccer game in England

failed to delay the game

not enough entries and exits

Lot of ppl died

Set a precedent for having proper event management

What factors were responsible for AstroWorld?

* high density crowd-6+ ppl per square meter
* individuals lose the ability to move around
* leads to a crowd surge
* progressive crowd collapse
* when someone falls, people involuntarily move into that space and often fall on top of them, causing more people to move and fall

AstroWorld lawyers are suing…

* Live Nation
* Travis Scott
* NRG Stadium
* Harris County

How do we perceive sales people?

* persistent
* loud
* annoying
* persuasive

Sales

* providing goods at an appropriate value= fulfilling a need
* great salespeople identifying needs

Why do people need sports? What are they seeking personally?

* entertainment: family-bonding time, nation-bonding time
* excitement/escape
* being part of something
* nostalgia
* status

why would companies need sports? what are they seeking professionally?

* ad placement/ prestige
* employee benefits
* entertain clients/ B2B (sales)
* awareness
* loyalty
* status/reputation

What makes a good friend? (these make a good salesman too)

* loyalty
* reliability
* trustworthy
* compassionate

What are some sales tools/ strategies?

* Customer relationship management (CRM)
* Escalator concept

Customer relationship management (CRM)

a system that enables sport orgs to build and utilize a database of demographic and psychographic info, as well as past purchase behaviors, for existing and potential customers

CRM enables the sport organization to…

* build and utilize a database of demographic info
* effectively and efficiently segment their various target markets

What are archtics?

* one of the earliest data-capturing products designed for sport sales departments
* helped Ticketmaster consolidate their sales and marketing operations into a single operating suite

What is Prospector?

* enables properties to easily manage all critical data processes in a single location

What is inside sales?

* a 9-12 month sales training program that focuses on taking people with little or no sales experience and trains them in professional development and sales strategies

What is personal selling?

* consists of face-to-face, in-person selling and typically incorporates use of sport org’s CRM system

Escalator concept

* sport organizations strive to move customers up the escalator from purchasing single-game tickets to mini-ticket plans to season ticket packages

what inventory do we have to sell?

* tickets
* group sales/ suites
* hospitality/ premium packages
* sponsorship
* signage
* naming rights
* game elements
* promotions
* digital/ social media elements
* community/ team programs

What are the 4 main factors that cause sport consumers to purchase (or not purchase) a sport organization’s product or service?

* quality: how well the team is doing
* quantity: the units in which the product is sold-can be an influencing factor
* time: will consumers have time to attend the majority of games?
* cost: is the price of the game worth it?

What is an element that distinguishes sport sales from the selling of other products?

the presence of emotion

what are the 2 determinants of success in the sales department?

* ability to accurately identify and understand the needs of potential customers
* ability to maximize the generation of sales leads

What are the different forms of selling?

* benefit selling
* up-selling
* eduselling

What is aftermarketing “retention marketing”?

* process of providing continued satisfaction and reinforcement to individuals or organizations who are past or current customers

Sport sponsorship

* the right to affiliate or associate a product or service w/ an athlete, team, entity, facility or event in order to achieve benefits from that affiliation
* sponsorships=relationships=value

What value might a sports entity be seeking from a sponsor?

* money
* services or goods
* partnership benefits or affiliations

what value might a sponsor be seeking from a sports entity?

* brand recognition
* incremental sales
* partnership benefits or affiliations

What are the components of a sport sponsorship agreement?

1. money or VIK (value in-kind)
2. benefits
3. activation
4. measurement/KPIs
5. renewal/term length

What did early sponsorships include (before 1984)?

1. money
2. signage/exposure
3. overall result= increase in sales

What was the tipping point in sport sponsorship?

1984 LA Olympics-Peter Ueberroth, head of the LA Olympic Committee

* success was measured on brand recognition, not incremental units sold
* created exclusivity of category

Growth of sport sponsorship after 1984:

* increased media interest in sport
* targeted marketing-young, active, engaged
* decision makers changed
* led to “clutter” in the marketplace

How do you cut through the clutter?

* the sponsor commits resources to independently promote and advertise the sponsored product
* industry average-more than the money of the sponsorship

Activations (how sponsorships get started)

* sales promotions - in venue, POS displays
* giveaways
* contests and sweepstakes
* sampling
* retail POS displays
* coupons
* ancillary events

Who has the highest sponsorship revenue growth since 2015?

The NBA at a rate of 8.1% with their partnership with Gatorade

What benefits does Gatorade get from the NBA?

* logo exposure on game balls, team jerseys, on-court signage, and majority of their digital assets
* access to all players for promo and marketing purposes

What does the NBA gain from Gatorade?

* player nutrition and training programs
* products
* equipment
* tech

Example of a successful targeted sponsorship?

* Adidas and Lionel Messi
* they have created an entire community that revolves around his skills and success that benefits him and the brand which generated global engagement
* this is undone by any other sports apparel company

Sales promo

A variety of short-term, promotional activities that are designed to stimulate immediate product demand

* increasing brand awareness
* broadening sales distribution channels
* gaining new consumers to sample product/service

What sport uses In-Venue promotions the most?

baseball

What are In-Venue promotions?

* when the sponsor underwrites the cost of a premium item in exchange for its logo on the item and advertising support that promotes the event
* a way to get more people to come to the game
* ex. specialty baseball cards

How do you measure the success of sponsorship? What metrics are used?

* recall
* number of impressions


* sales promo bounce back/ incremental sales
* digital exposure/ print media/ TV media exposure

Ambush Marketing

* non-sponsor acts like an official sponsor w/o those rights
* Tag onto event, the actual sponsor may feel encroached

What is analytics?

* the management of structured historical data
* the application of predictive analytic models that utilize that data
* the use of information systems to inform decision-makers and enable them to help their organizations in gaining a competitive advantage

What are the 3 basic components of a sports analytics program?

1. data management
2. predictive models
3. information systems

What is included in data management?

* data standardization: common formats; standards definitions
* data centralization: stored in a central location
* data integration: merged to maximize value

What is included in predictive models?

* predictive analytics: use models to understand the future
* descriptive analytics: provide insight

What does sport analytic typically cover:

* business analytics
* player-performance analytics

What are the skills of a great analytics professional?

1. ask the right questions
2. collect the correct data
3. understand statistics sufficiently to model the data
4. interpret the data- sorting out meaningful from not
5. communicate finding to be understood


1. remember that correlation does not imply causation


1. noise= coincidence

Evolution of sport analytics

* data has been used throughout the history of sports
* early data focused on play-specific stats
* all teams collected their own data
* all teams used different data

What is the rise of sabermetrics?

* created by the Society for American Baseball Research (SABR)
* empirical analysis of baseball
* the use of past performances to predict future outcomes
* evolved out of the work of Bill James

Who is Billy Beano?

* Central Manager of the Oakland Athletics (2003)
* relatively average player in the MLB
* moved into front office/scouting
* started using stat analysis (sabermetrics) to evaluate players
* subject of the 2003 book and 2011 movie “Moneyball”

What factors to consider with analytics?

* who is looking at your data?
* why would they want to know what you have to tell them?
* how will it help them achieve their goals?

What is business analytics comprised of?

* ticket pricing
* operational efficiencies
* customer relationship management
* social media marketing

What is player-performance analytics comprised of?

* scouting, player development, in-game strategy

What does one gain from using business analytics?

* better understanding of your customers
* personalization-engagement-loyalty
* increase in revenue

What does one gain from using player performance analytics?

* better understanding of your players- health, value
* game strategy
* competitive advantages

Henry Chadwick

* in the late 1850s he created the baseball box score as a way for fans and journalists to follow the game numerically and keep track of player performance

George Lindsey

created the analysis of lineup adjustments and defensive strategy

Bill James

* created the Baseball Abstract which changed the player-performance analytics
* he proposed that data be collected on every MLB game and enter that data into a computer database
* led to the birth of fantasy gaming thanks to the Project Scoresheet

What is the Project Scoresheet?

it creates robust data that fans, media entities, and teams can use to learn insights about player performance

John Dewan

* worked with Bill James
* inspired by him he became the president of a company called STATS- an industry leader in cutting-edge statistical analysis
* later founded Baseball Info Solutions- a leading commercial provider of statistical info for teams, publications, and online services

Current issues in sport analytics

* privacy
* value gaps b/w players
* cohort effect
* the more seasons someone has played, the higher the total # of games started and pro-bowls

Morals

Fundamental baseline values that dictate appropriate behavior within a society

Ethics

Set of theories and principles that determine right and wrong (systemic study of values guessing decisions)

Ethical dilemmas

Practical conflict involving equally compelling values or social obligations

What dissuades us from immoral or unethical behavior?

Consequences

What 2 criteria must discipline meet?

* meaningful
* enforceable

What are the 2 approaches to ethical dilemmas?

* Focusing on the practical consequences of what we do
* Concentrating on the actions themselves