Chapter 10 SPORTS MANAGEMENT

Athletes pay is ……

Divided

Divided pay is

Between actual sport and sponsorship

3 principles that form the professional sports industry

Labor, managment, governance

Labor

A collective group of athletes in
team sports who unionize so that they can
bargain collectively with league owners.

Management

The collective group of
ownership that is negotiating with the
players, or labor.

Governance

The league structure that
exists to oversee both the competitive and
business elements of the sport.

1st professional athletes are from where ?

Greece

Athletai

Paid men recruited from mercenary armies to train for brutal competition (paid under the table)

Athletic sports

jockey, boxers, runners

What happened 1871?

National Association of Professional Baseball Players (1st Professional sports league)

1887

National colored baseball league

1920

Negro national league

1947

Jackie Robinson Brooklyn dodger broke color barrier

1943

All American professional baseball league

What happened during the all American professional baseball league in 1943

men went to war, when they returned they took over baseball again

1974

women’s professional league

1996

WNBA was created

Media coverage men v.s women

women receive 4%, men receive 96%

Interdependence

make sure we have stable competition, teams depend on one another. Ex (NFL draft worst team picks first)

Structure and governance

League commissioners, board of governors, central administrative unit

league commissioners

overseeing major/minor leagues, finances, scheduling

board of governors

anything has to be approved by them

central administrative unit

negotiate contracts

who benefits from minor league teams ?

referees, coaches, managers, players

Cons of a minor league team :

low pay and might not make it to major

Baseball antitrust exemption

MLB is exempted from the Sherman antitrust act

Sherman antitrust act

prohibit companies from dominating

All players are covered by the National Labor Relations Act except …..

The MLB

NLRA (national labor relations act)

Right to self-organize, form, join, or
assist labor organizations.
Right to bargain collectively through
agents of one’s own choosing.
Right to engage in joint activities for
employee’s mutual aid or protection.

Collective bargaining

process used to negotiate work terms between labor and management

Common elements of collective bargaining

contract, discipline, benefits, compensation, labor, argument, rights

free agency

The ability of players, after fulfilling an
agreed-upon number of years of
service with a team, to sell their
services to another team with limited
or no compensation to the team
losing the players.

1976

players first earned the right to become free agents

First players that became free agents

Pitchers (Andy Messersmith and Dave McNally)

Salary caps

set a ceiling on player payrolls to protect
the owners, essentially from themselves, from
overbidding for talent. creates a parity between large and small market teams.

Parity

competitive balance

Hard Cap

WNBA, NFL, & NHL; no
exceptions.

Soft cap

NBA, MLS; exception: “Larry
Bird Rule”.

Soft cap allows …..

teams to exceed the salary cap
to resign their own free agents.

No cap

MLB, but there is luxury tax

Luxury Tax

a threshold is set at the beginning of the season, if you go over you pay luxury tax.

Player Draft

Tries to be equal, distributing new players among all league players (lower record teams pick first)

Since 1985, the NBA has what kind of system…

a
lottery system in which teams who
miss the playoffs still have a
chance at getting an early pick.

How does moving players around affect the players?

getting moved in the middle of the season, means players and their families have to move cities ( not concerned about the athletes)

Media positive affects in sports

athletes sharing their perspective, views, and networking

Media negative affects in sports

death threats, bad tweets, fake news

Revenue Sources for professional sports teams

media contracts, gate receipts, licensing/merchandising, and sponsorship

Media contracts

amazon prime showing Monday night football

Licensing/merchandising

revenues (travis kelces jersey being sold 30% more from swifts) (international)

Sponsorship

100 sponsors average for teams

Future challenges facing professional sports

Maintaining labor, developing new revenue streams, technology challenges, and dealing with globalization

Mainting labor

keeping management harmony (collective bargaining, work stoppage, and labor disputes)

developing new revenue streams

ads “1st down brought to you by Toyota”, signage and virtual signage

Technology challenges

stream sports internationally and social media

Dealing with globalization

athletes having to move countries and international games played in the U.S.