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SEE 3020 (Pro Sports) > Midterm > Flashcards

Midterm Flashcards

(71 cards)

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1
Q

the big 4 in sports

A
  • MLB
  • NFL
  • NHL
  • NBA
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2
Q

Things that fall under pro sports mgmt

A
  • org structure & governance
  • economics
  • marketing
  • Media/Broadcasting Rights
  • Labor Unions and Player Associations
  • Contract Law
  • Merchandising and Licensed Products
  • Community Impact
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3
Q

different types of owner philosophies

A

Own and manage teams as a business have been successful in other businesses
Try to win championships and have a very successful franchise
Own teams for status and power
Own teams for tax write-offs
Own teams for almost a hobby
Own teams because it has been passed down in the family

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4
Q

Factors that might affect the future of pro sports

A 
Economics/Economy
Image and popularity of the sports
Ownership actions
Players/Player union actions – strikes, etc.
Fan actions
Media impact
Legal issues
Other issues – violence in  sports, steroids/performance enhancing drugs
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5
Q

considered the most important influence on the structure of a pro sports org

A

size

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6
Q

3 most commonly found dimensions of org structure in pro sports

A
  1. complexity
  2. formalization
  3. centralization
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7
Q

complexity

A

refers to the extent to which an org is divided into divisions, departments, groups or roles

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8
Q

horizontal differentiation

A

different parts of the organization become specialized in different activities – Ex: tennis and golf tours

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9
Q

vertical differentiation

A

refers to the number of hierarchal levels of the organization – organization chart – Ex: most independent organizations

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10
Q

spatial differentiation

A

refers to the degree of geographical separation of the various divisions of an organization – Ex: NFL, MLB, NBA, NHL

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11
Q

formalization

A

Refers to the extent that to which rules, regulations, job descriptions, policies, and procedures govern the operation of the organization

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12
Q

centralization

A

how decisions are made within an organization

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13
Q

centralized organizations

A

decisions tend to be made by upper levels of management

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14
Q

decentralized organizations

A

similar decisions would be delegated to lower hierarchal levels – upper management gives more authority to lower levels

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15
Q

Governance for most major league sports usually include:

A

Usually have a commissioner
Board of governance or committee structure
League or sport office
Usually the owners have the ultimate say in the policies that are developed, but the commissioner has a lot of power and influence
Player associations and unions have grown and become more powerful over the years which influences governance

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16
Q

organization of pro sports team

A 
Owner(s)
CEO
CFO
President
Vice Presidents
General Managers and Asst. GM
Directors/Managers/Asst. Managers
Areas of management - Player Personnel, Sales & Marketing, Ticket Operations, Facilities Operations, Technology, F&B, Parking, Community/Public Relations,
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17
Q

law of supply

A

supply is directly proportional to price; the higher the price of the product, the more the producer will supply

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18
Q

law of demand

A

demand is inversely proportional to price; the higher the price of the product, the less the consumer will demand

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19
Q

market power

A

when a producer faces limited substitute products and is able to set the price of their product on how much they produce

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20
Q

scarcity

A

is the simple economic principle that there are not enough goods and services freely available to satisfy people’s wants and needs

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21
Q

Scarcity characteristics of professional sports

A 
The “product”
The “beauty” of the sport or team
Competition
Commonality
Enjoyment of winning
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22
Q

price elasticity

A

the responsiveness of consumption to changes in prices

One of the most important pieces of information that determines the demand

Affects attendance

Affects the pricing of the tickets

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23
Q

basic expenses

A

facility costs, operational expenses, salaries, all other expenses

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24
Q

traditional revenue sources

A

ticket sales, concessions, merchandising, parking, other basic sources, etc.

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25
Non-traditional revenue sources
luxury suites, naming rights, sponsorships, TV/broadcasting rights, etc.
26
Ways to increase attendance
Improve quality of team Lower ticket prices Facility reconfiguration – “downsizing” of facilities seating capacities Sellouts Providing other entertainment – making sure fans get their “money’s worth”
27
professional sports marketing
consists of all of the activities designed to meet the needs and wants of professional sports consumers through exchange processes
28
The marketing “of” sports includes
- Determining the demographics, psychographics, and target market for the organization - the 5 "p"s of marketing
29
the 5 'p's of marketing
- product - price - place - promotions - public relations
30
marketing through sports includes
“Naming rights” for a venue “Pouring rights” – beer, soft drink companies Sponsorships for specific games/events or activities at a game/event Sponsorships and endorsements – teams, individual players, etc.
31
1920's
radio broadcasts of professional baseball and football games, other sports
32
1950's-1960's
TV broadcasts of NFL, MLB, NBA – growth of the major networks
33
1971
Monday Night Football – first big prime time professional sport
34
1979
ESPN comes onto the scene
35
1980's
present – development and growth of other pro sports broadcasting on cable and other outlets
36
Sports Broadcasting Act (SBA)
passed by congress in 1961 that granted professional sports leagues an antitrust exemption allowing them the right to sell to the highest bidder
37
National Broadcasting Rights
teams/leagues sell their game rights to national TV companies – MLB and NHL sells some national games, NBA sells a large number, and NFL sells all of their games
38
Local Broadcasting Rights
contracts between local cable media providers to broadcast professional sports games – NESN, YES Network, other cable and local companies, etc.
39
Internet/Satellite/Wireless Rights
contracts between professional sports teams/leagues with satellite and wireless companies – mlb.TV, XM satellite radio, Sirius radio, ESPN wireless, other wireless packages
40
Media providers
network, cable, satellite broadcasting companies
41
Rights fees
fees paid by the media providers to a league or team to broadcast their games
42
Advertising slots
short time periods set aside for advertisements during a broadcast
43
Slot fees
the fee charged by media providers for particular time slots
44
Other New Trends in Broadcasting
- Leagues creating their own network - Other networks that are not major or national networks are making large contracts - Broadcasting of games on the internet by “streaming” games - satellite radio - pay-per-view
45
Management Component
is made up of the league itself, the individual teams and owners, including all non-player employees
46
labor
is made up of the players, their agents, and the player’s association
47
Collective Bargaining Agreement (CBA)
labor contract between management and the labor unions (player associations) – leagues and unions negotiate collective bargaining agreements usually for long term period of time
48
2 Types of work stoppages sometimes develop if CBA’s cannot be reached
1. strikes | 2. lockout
49
strikes
work stoppages where the players refuse to work
50
lockout
work stoppage where owners refuse to allow the players to play
51
Issues that generally cause work stoppages:
Salaries, benefits, pensions, revenue-sharing, free agency, salary caps, working conditions
52
National Labor Relations Act – 1935
created to oversee the formation of unions and the process of collective bargaining The right for labor to form unions The right for unions to bargain collectively through representative (professional sports – player rep) The right for labor to use pressure tactic such as strikes and picketing
53
National Labor Board
board that enforces the NLRA and decides grievance brought to them by labor or management
54
Revenue-sharing
guarantee’s the league’s overall health as an economic entity – TV/radio contracts, merchandising and other sources of revenue are divided equally among the teams in the league
55
free agents
players who have reached the end of their contract and have met the experience requirements by their collective bargaining agreement – free to sign with another team - restricted and unrestricted free agents
56
Arbitration
a process where a mutually agreed upon third party determines a disputed outcome – salaries, benefits, etc. – arbitration usually forces parties to negotiate in good faith
57
Salary cap
is an established limit on the amount of money that a team can spend on player salaries – either as a per-player limit or a total limit for the team’s roster (or both) – “hard” or “soft” cap
58
Luxury tax
tax that a team is forced to pay after they spend more than the established league salary cap amount per team
59
collusion
when owners have been accused of planning and plotting to work together to lower salaries and decrease the effectiveness of the player associations
60
3 Basic strategies of player associations
Antitrust litigation Player strikes Arbitration of grievances
61
Option clauses
team and player options for additional years – team options, player options or both
62
No-cut clause
assure that a player cannot be cut for the life of a contract
63
No-trade clause
player cannot be traded any time during the life of the contract
64
Off-season and in-season activities
activities that a player is not allowed to participate in – “dangerous activities” clause
65
Other clauses
physical conditioning, drug-testing, rehabilitation of injuries, performance bonuses/clauses, bonus/guarantee upfront, others
66
Breaching of these clauses and terms cause
terminations, fines, suspensions, other legal remedies
67
Monetary damages
the usual type of award – one party must pay another party a monetary award
68
Specific performance
the breaching party must perform the act as promised in the contract
69
Rescission and restitution
the contract is cancelled and the status occupied before the contract is restored
70
Restoration
the court allows the parties to rewrite a contract
71
Mitigation
the non-breaching party must make reasonable efforts to lessen the consquences of the breach

SEE 3020 (Pro Sports) (2 decks)

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