Legal Issues and Risk Management in Sport PDF

CHAPTER 6 Legal Issues and Risk Management Chapter Objectives Sport and the law The autonomy of sport Limitations to the autonomy of sport Contracts, memberships, and legal structures Sport dispute resolution Threats to the integrity of sport: doping and match-fixing Sport and the Law Importance of legal advice Sport is relatively autonomous within the law Legal structures Members bound by rules autonomous - run on its own Regulation and integrity legal structures - diﬀerent for each level of sport measures membership bound by rules - CONTRACTS regulation and integrity - sport has power to do what it wants, but still doping, gambling, etc issues with athletes The Autonomy of Sport This phrase refers to the “freedom enjoyed by national and international sport freedom - opportunity to make the rule organizations to decide on switzerland head of sports ( the hub) internal matters” neutrality finance - tax breaks WADA - Seat in switzerland to follow financial rules of switzerland CAS - major sport issues are dealt with Swiss law context for IOC, freedom of association - who regulates WADA and CAS who is in charge who is responsible Freedom of association The Autonomy of Sport IOC Olympic charter (2020): largest international tyoe deal Recognising that sport occurs within the framework of society, sport organisations within the Olympic Movement shall apply political neutrality. They have the rights and obligations of autonomy, which include freely establishing and controlling the rules of sport, determining the structure and governance of their organisations, enjoying the right of elections free from any outside influence and the responsibility for ensuring that principles of good governance be applied. Limitations to the Autonomy of Sport Must comply with general law IOC head quarters - comply with law in switzerland German and Swiss law vs US context paralympics seat in germany olympics seat in swiss - neutral, does its own thing, rich USA many national teams - own states has own rules Anti-discrimination: see case study even if autonomous, line is drawn based on constitution where seat is located - follows legal structure - obide by country with head quarters critical - have to consider where seat is Case Study Blake Leeper is an elite-level 400- metre runner from the United States of America. Leeper was born without both of his legs below the knee due to the congenital birth defect. To enable him to run, Leeper uses passive-elastic carbon-fibre running- specific prostheses (RSPs), or blades. In the beginning of his professional career, Leeper focused on participating in para-athletics events with great success. Case Study In June 2017, Leeper started competing against able- bodied athletes in international 400-m World Athletics events. IAAF Competition Rules (2018-2019) prevented: the use of any mechanical aid, unless the athlete can establish on the balance of probabilities that the use of an aid would not provide him with an overall competitive advantage over an athlete not using such aid. do these blades give him an advantage? Art. 144.3(d) blades considered too long for his body torso if he was abled bodied, he woiuldnt have same advantage than with the blades coun't used the blades since give him an 'advantage' Case Study This means that athletes who seek to use mechanical aids in World Athletics-sanctioned events must demonstrate that they do not have an “overall competitive advantage” over their competitors. World Athletics initially found that Leeper had not satisfied the burden of proving that he did not have a competitive advantage over his able-bodied peers and, therefore, was ineligible to compete in qualifying events for the 2020 Tokyo Olympic Games. Leeper challenged this decision before CAS. Case Study Leeper argued that Article 144.3(d) of the IAAF Rules is discriminatory against athletes with disabilities, even though the rule appears to be neutral. Leeper therefore argued that Article 144.3(d) should be declared invalid and unenforceable. therefore, wouldnt have to prove that not advantage From an autonomy of sport perspective, Leeper argued that World Athletics had limited its autonomy by committing itself to be a non-discriminatory sport. key issue: not cant compete, burden on athlete to prove or burden on organization of what shouldnt or should be allowed Case Study The CAS panel considered whether the wording of Article 144.3(d) was directly discriminatory between able-bodied athletes and athletes with disabilities and found it was not. Accordingly, the CAS panel had to determine whether by placing the burden on all athletes using mechanical aids might be indirectly discriminatory against athletes with disabilities. The panel found that Article 144.3(d) has a greater practical impact on athletes with disabilities and is, therefore, indirectly discriminatory against them, including Leeper. Case Study The panel then amended Article 144.3(d) – in accordance with the World Athletics regulations – to remove the burden on the athlete and applied this new wording to the Leeper case, as follows: The use of any mechanical aid, unless on the balance of probabilities the use of an aid would not provide them with an overall competitive advantage over an athlete not using such an aid. vague wording, someone has to prove (not necessarily the athlete) Case Study In placing the burden to prove “overall competitive advantage” on World Athletics, instead of the athlete, the panel took into account that proof requires scientific expertise that is generally very expensive and unaffordable for most athletes. The panel found that the decision taken by World blake leeper needs to hire people to Athletics to exclude Leeper from qualifying prove, should be on governing body (world athletics) competitions for the 2020 Tokyo Olympic Games against non-disabled athletes was legitimate. case studies shows issues need to be NB: Leeper reportedly chose not to compete in the dealt with as sport managers Tokyo 2020 Paralympic Games because his RSPs contravene the International Paralympic Committee’s Maximum Allowable Standing Height (MASH) rule. Limitations to the Autonomy of Sport Sport can discriminate on the basis of age, weight, nationality and para-athlete categories ex: for a specific age group mma - heavy weight, light weight (need to be in weight range) - technically discrimanitory Gender discrimination more complex sport is AUTONOMOUS - can discriminate - special about sport (diﬀers from business) olympics - boxing algeria woman - autonomy questioned Contracts, Memberships, and Legal Sport Structures sport agent - this is the job sport contracts can sign with whoever they want Members can be individuals or organizations all contracts come into play when talking about legality Indirect member control via contracts or agreements have control through contracts control athletes, coaches beacuse made the contracts indirect - uphold end of deal Offer, acceptance and consideration key aspects of contracts oﬀer - some oﬀer in place acceptance - deals needs to be acceptance, contract needs to be sgned by athlete consideration - money piece - need to pay what is owed end of day sports teams a business Contracts, Memberships, and Legal Sport Structures closed systems - can still be adapted - teams can be added - however Federated models versus privatized structures rules remain - trading remains Federated (or European) system fundamentally diﬀerent usa and canada Privatized (or American) system work way up to the top - pyramid: # European model governed by a pyramid structure from International/elite level grassroots to the professional and/or elite level. international level deisions trickles down slowly to each level - makes its way down to club level national federations regional federations as soon as best - move up to next level automnatically change leagues - can pay transfer fee to other team and have right to negotiate contract with athlete - TRANSFER - pay for a player (money transaction) base - clubs (local level) terrible year - team religated - demmoted to lower league teams that do really well - move up - open system dont participate in school American model is a closed league system, with no connection base - schools - encounter sport (start) - are clubs but not as prevalent between NCAA and professional sport. change teams - TRADE based on draft pick and some money and players for 1 superstar - trade ammenities for player no pyramid: University - NCAA - recruited professional/elite level - draft (have to get picked even if the best, at the level to) closed system - leagues set number of teams, even if team does bad they stay autonomy can pick if they want to follow new rules - does trickle, flow down - usually owners - purchase a team - invest, expect profit from team - merchandise people follow but doesnt have to - right to choose - not connected through the levels Internal tribunals for disputes, disciplinary matters, unethical behaviour, selection or field of play decisions Arbitration vs. Mediation arbitration - 2 disagreements - cant come to agreement - go to judge, agree to arbitration - have to accept and agree to what the lot of people involved external party decides - final decision, cant fight it selection - legal rules mediation - 2 people disagree - third person/party (judge, panal of people) mediate, find common ground - conversation between Sport Dispute Resolution Sport Dispute Resolution Standards of natural justice involved in sport organization need right to decision in resonable time Access to an independent and impartial tribunalsports move quickly Principle of equality of arms/equal treatment of the parties Right to have access to all files and evidence Right to be heard (which may be limited to documentation rather than in person/online) Right to a reasoned decision Right to a decision within reasonable time Right to a public hearing Legal aid, if legal representation is necessary based on the circumstances of the case. Sport Dispute Resolution Can delegate this power to hear disputes to a third party intervention Challenges to decisions can be heard in Court of Arbitration for Sport or a court or CAS - not limited to can take to supreme court even if CAS appeals Threats to Sport Integrity Broad area of integrity impacts cheating to win Doping intention of enhancing performance to be the best cheating to lose Match-Fixing everyone wants to win push game into one direction - sqew results (cause a team to win/lose) Threats to Sport Integrity Doping WADA deals with everything doping - THE AGENCY INCHARGE WADA code and UNESCO code Acceptance, implementation and enforcement what allowed to take (can/cant take), what is legal and what is not Violations and the prohibited list Athlete obligation Sanctions Threats to Sport Integrity Match-Fixing The Council of Europe Convention on the Manipulation of Sports Competitions, which is the first international convention to tackle all forms of sports competition manipulation at an international level, refers to match-fixing as: an intentional arrangement, act or omission aimed at an improper alteration of the result or the course of a sports competition in order to remove all or parts of the unpredictable nature of the aforementioned sports competition with a view to obtaining an advantage for oneself or for others. sports have underdogs - excitement, dont necessarily know who will win - GOES AGAINST THIS Attacks credibility and unpredictable nature of sport Major impact on commercial viability of sport Summary Sport and the law The autonomy of sport Limitations to the autonomy of sport Contracts, memberships, and legal structures Sport dispute resolution Threats to the integrity of sport: doping and match-fixing CHAPTER 5 Sport Governance Chapter Objectives What is governance? Corporate vs nonprofit governance Is there a theory of sport governance? Governance structural elements Strategic role of the board Board staff relationships Principles of good organizational governance Board Performance Drivers of change in governance Ethics What is governance? Policy and direction more than daily management Exercise of power and sets out how decisions are made who calls the shots who makes the decisions Important issue in sport Some big failures in governance cost organization big time good governance - decisions makers calling the right shots literature of governance Corporate vs Non-profit busines- CEOs want to promote sport and allow people to participate decisions that enhance team to MAKE MONEY volunteer boards Corporate governance – protecting and enhancing shareholder value investments are involved Nonprofit – provision of services and involvement of people oﬀer service decisions enhance and protect people involved in services Conformance Performance inprove performance: money vs service Stakeholders differ stakeholders conform Governance Theory (1) Internal monitoring: Agency theory – managers should be subject to extensive monitoring to ensure shareholder’s interests are protected Stewardship theory – assumes managers act as individuals to protect shareholders angency: decision makers rely on shareholders/ stakeholders - mangers listen to people giving advice or have share in company (they want you to succceed as invested) stewardship: opposite of agency manager makes own decisions - more successful - act on their own self interest and in doing so push organization to be better and protect shareholders in doing so Governance Theory (2) External relations: Institutional # theory – governance system adopted is a result of external pressures preasure from outside causes adoption of system - influence losing - preasure from fans, media - influence how make decisions Resource dependence theory – behaviour dictated by relationship with the environment make decisions based on what is available - money, resources, weather, fans dependant on resources abailable to you Network theory – socially binding contracts drive performance about diﬀerent contracts between people social contracts: fans - decisions to please fans change/adapt to fanbase (parking, merchandise, accessibility) head coach leaves/fired - rest of team doesnt have job (on chopping block) new coach hired - new team is usually brought Governance Theory (3) Stakeholder theory – need to maintain a series of stakeholders - external: fans, media, public interdependent internal: coaches, employees, athletes relationships combines internal and external relationship between stakeholders and organization Which theory to apply? Structural Elements Membership non profit: Council internal (local) Board external Staff Volunteers non profit volunteers have positions higher than payed staﬀ can have more responsibilities (trusted) awkward relationship between employees massive corporation: can have both board and council Strategic Role of the Board decision making: Think longer term think 5, 10 years down the road stay on track, check ifSet a clear vision and progress, evaluate need to make adjustments monitor progress Facilitate effective board processes NSOs cooperate with member organisations board genuinely allows CEO to be CEO Board Staff Relationships Professionalization has changed the game Role ambiguity asposition volunteer: of power? whats my role? who is in control and what is their goals? Control by who for what? to improve organization or personal profit key to sports industry: 'if team does well, you will do well' Relationships depend on: Trust Dominant coalition Information flow sport industry made up of mostly volunteers get foot in the door - become volunteer Principles of Good Governance making decisons well, practice good governance: 1. Transparency transparent with people - to be good leader 2. Accountability trust people around me 3. Democracy everyone has a voice working together to reach a collective goal 4. Responsibility everyone has to be responsible, on time, prepare - good leader 5. Equity 6. Efficiency how used resources to complete the job - to produce great results 7. Effectiveness how well job was done how well preformed Board Performance Structures Planning Influence of CEO is CEO taking advice from board or disagreeing and bring back to board Training and development how training board members Motivations what are their motivations (especially if small organization) Cyclical nature evaluate board How to measure it? Drivers of Change in Governance if funding threathened to be removed - decisions adapted Influence of funding agencies money rules based on funding (often changes) Threat of litigation everything lawsuit and legal related threat of litagation - may reconsider, not worth the fight, the trial Threat of competition Marketplace has changed influenced based on what other teams (competition) have succeeded with Performance demands from government game plans change based on competition investments - returns from investments - will determine how money is allocated - diﬀferent incentives Ethics what is moral good conduct scandals in sport industry what is morally acceptable corruption? Increased scrutiny Olympic sport governance issues someone calls the shots Integrity measures and agencies can lose credibility Summary What is governance? Corporate vs nonprofit governance Is there a theory of sport governance? Governance structural elements Strategic role of the board Board staff relationships Principles of good organizational governance Board Performance Drivers of change in governance Ethics CHAPTER 1 Sport Management and Administration Chapter Objectives What is sport management? Unique features of sport Sport management environment Three sectors of sport What is different about sport management? What is Sport Management significant - sport employees millions around the world - professionalized and organized Significant industry Demands contemporary management need managmenet system in place - profitable, high community Operating as a global network ex: fifa, olympics invests in sport Need to know: Industry context Sport environment Range of sport organizations (public, nonprofit, and professional sectors) Unique Features of Sport 1.special in sport - team near and dear to your heart seen in economies around world. sport may why is sport unique? change, however merchandise and team passion sold to the people 2.sport teams willing to go indebt to win championship 1) Irrational passions unique to sport : CHAMPIONSHIPS 2) Performance measures good (giving back to) in community (coaches, athletes) 3) Interdependence 3. what good is a team if there is no competition? world of sport depend on competeition!!! 4) Anti-competitive make money oﬀ broadcast rights behaviour? 4.where the government gets involved - helping competition? anti-competetive behaviour let slide 5) Product of variable quality 5. dont know what to expect even if favourite or underdog - anything can happen on any given night, doesnt always go to plan Unique Features of Sport 6. grew up loving a team, loyal to a team (continued) 6) High product and brand buy their products, watch/attend their games loyalty 7. want to be athlete, inspire to be - identify with athletes and coaches - "i could be" 7) Vicarious identification 8. sport fans generally optimistic true irrational fan believe that their team will still win even if lost 8) High optimism muktiple games in a row and is likely they will lose again people keep coming back even when you lose. not same degree 9) Reluctant to embrace if when but optimism stilll present new technology 9. reluctance to embracing new tech: sport has tradition, history 10) Limited supply even if using new watching replays system there is still a ref with same rules uses analytics but overall reluctant 10. season has a start and a finish - limited supply of the games Sporting Environment sport and sporting industry has gone global sporting events Globalization leagues travel most government see sport in positive light health Government policy population invested - nationalism economic development social development - unites people Professionalization idea that sporting industry has become for professionalize Impact of technology what used to be 4/5 voluntteers --> now 4/5 paid employees --> 4/5 board of directors more jobs in industry, but also more competition for jobs slowly being embraced by teams connections/overlap: Three sectors of sport new stadium - money comes from owners, public, and government gives back taxes, tourism, money, status public and nonprofit - organize events - select national teams - help team buil up - tied up to governemnt as money is involved, relied on public = state sector the government 3 sectors are intertwined any sport organization tied to the governemnt - regional, local, municipal, federal, provincial professional = commercial FOR profit sector any organizations out to make money non profit = volunteer ex: leagues, addidas, nike no money organizations support competition organize events Sport Administrati on cr all create and maintain sport organization Governance Legal issues and risk management Strategic management Organizational structure Human resource management Organizational culture Sport marketing Leadership Governanc structure of organization who in power heads of departments e recruiters assistant directors volunteers Involves the exercise of decision-making power within organizations and provides the system by which the elements of organizations are controlled and directed Important element of managing sport organizations Legal Issues and Risk Management Sport organizations have the authority to decide on internal matters on their own without state interference, a unique aspect of sports’ autonomy. what you get if successful vs punishment if you are not seat - organization based out of somewhere Sport organizations have an interest in the protection of the integrity of sport and have implemented rules and regulations aiming at preventing all forms of corruption in sport, including doping and match- fixing. best interest of sport organization to have these rules in place - riged? corrupt? - less investment in league/sport, considered waste of time and money how will i set myself apart? how will i sell myself to this athlete/team/company Involves the analysis of an organization’s position in the competitive environment, the determination of its direction and goals, the selection of an appropriate strategy, and the leveraging of its distinctive assets. how to best leverage them The success of any sport organization may largely Strategic depend on the quality of its strategic decisions. Management strategies, goals, objectives in placce Organizatio nal Structure It defines where staff and volunteers “fit in” with each other in terms of work tasks, decision- making procedures, the need for collaboration, levels of responsibility, and reporting mechanisms. how do we get this structure to be ideal? Human Resource Management Essentially about ensuring an effective and satisfied workforce ex: papers, contracts signed dependent on size of coorporation However, the sheer size of some sport organizations, as well as the difficulties in managing a mix of volunteers and paid staff in the sport industry, make human resource management a complex issue for sport managers. major coorporation with teams for every department vs local organization, 1 person working it all Organizationa l Culture Consists of the assumptions, norms, and values held by individuals and groups within an organization, which impact the activities and goals in the workplace and in many ways influence how employees work. how can we make it a place that everyone wants to work - individually and team level Organizational culture is related to organizational performance, excellence, employee commitment, cooperation, efficiency, job performance, and decision-making. assumed micheal jordan because of colour, number, jersey and marketing of that Application of marketing concepts to sport products Sport and services and the marketing of non-sports products through an association with sport. Marketing Like other forms of marketing, sport marketing seeks to fulfil the needs and wants of consumers. Managers at the helm of sport organizations need to be able to influence others to follow their visions; empower individuals to feel part of a team working a common goal; and be adept at working with leaders of other sport organizations to forge alliances, deal with conflicts, or coordinate common business or Leadership influence development projects. key key key: able to work with others!! Summary What is sport management? Unique features of sport Sport management environment Three sectors of sport Specific topics tied to sport management and administration Need for leadership in sport CHAPTER 2 Sport Policy and the Canadian Sport System Chapter Objectives The role of government Why should governments engage with sport? Reasons for government intervention Regulation and control Overview of the Canadian sport system Defining and Explaining Government Structures that govern and rule society Long history of government involvement in sport wants to be involved in sport Current State: statiums Facilities and stadia Training centres Sport science best facilities and access to athleteics General funding support sport has $ behind it sponsorships wanting to and is investing more government some times dont rely on government while others do nationalism - sense of pride - summer mcintosh gold medals sense of shame - womans soccer Nation building? team drone scandal Why should Wellbeing of society passion in general brings people together - encourage people governments engage to engage in what the already love Character building represents our country with sport? sport canada runs all of sport - NSO Health impacts cheating - shines in bad light handled culture, sports, art - fitness or sports at core good for health - encorages people to health canada participate in sport and creates healthy habits now purely handles culture Reasons for Government Intervention why government gets involved: Market failure and the supply of sport services Sport as a public good Sport equity and inclusiveness Market Failure service not available service - access to sporting facility ex: no more basketball shoes - cant play - market failure Full benefits not realized due to: basketball shoes cheap - more injuries, no competition government gets involved - regulations set to fix Oversupply of too many bad products less desirable products set bare minimum Undersupply of desirable products governement involvement - creates more desired products not enough good products Sport produces private and wider societal benefits The market will generally focus on delivering private benefits for profit as long as sell they are happy if balance not there - government gets involved Sport as a Public public good: does not inhibit Good someone from purchasing even if i did One person’s consumption does not prevent another person’s consumption The State seeks to maximise public create something everyone can goods use. everyone can participate. no exclusion (ex: park) E.g.: visit to the beach or attending a sport event Sport Equity and Inclusiveness government encourage sport - eventually 1 will become elite athletes - inspire next Fund sport for benefit of all generation to participate in sport --> continuing cycle Optimal benefit through meeting diverse needs how to make accessable, where everyone is included?? Met through low-cost facilities, subsidised programs and targeted programs Sport System Who do you think are the most powerful sports organizations in the world? International Federations (IFs) are the most powerful IOC, FIFA, IAAF, FIS most powerful organizations - incontanct with all heads of state organizations control sports at highest level IOC - international olympic committee in contact with counrties worldwide Do you know these IFs? WA FISU FIBA basketball table ITTF tennis has entire federation FIVB volleyball FIH hockey International Federations (IFs) FIFA controls soccer all around the world What do they do? determines who qualifies determines who hosts Establish the regulations that each national sport federation must follow Qualification standards and procedures for championships Host cities for championships Sport System Governments: Sport Canada; Sport Alliance Ontario, Sport Québec Canadian Olympic Committee (COC) National Sport Organizations (NSOs) organize sports across the nation, country Provincial and Territorial Sport Organizations (PTSOs) Local clubs/teams Universities/colleges/schools varsity, school teams Professional leagues ex: NHL Sports stores Individuals (athletes, coaches, administrators, researchers, consultants, agents) people involved - very important Canada vs. USA Canada United States Sport Canada; provinces; USOC sports dealt with at federal level municipalities NSO - states rely on federal level and their rules set COC Community Clubs/Teams NSO provinces usually follow what happens at NCAA (!!) PTSOs national and federal level - not obligatory CCMS High School PSO Professional sports Community clubs/teams (NFL, MLB, NBA, NHL, NASCAR) University Professional sports (NHL, MLB, NBA, CFL) important to sport canada - plan to boost sport in canada Sport Canada Canadian Sport Policy (2012) comes out every 10 years Participation increase sport participatation - encourage people to play Excellence we need more success at elite level Capacity infrastructure - need to invest more money for better facilities do we have the facilities, training centers for participation? Interaction need better communication (between provinces) Policy objectives Introduction to sport provide access to particiapate in diﬀerent sports Recreational sport create environement to participate Competitive sport whos the best in the region? champonships!! High performance sport success at olympics, world cup high level of success Sport for development social development economic development Summary Defining and explaining government Why should governments engage with sport? Reasons for government intervention Regulation and control Overview of the Canadian sport system CHAPTER 3 Non-profit Sport Chapter Objectives Non-profit sector and society Non-profit sector and sport Governing bodies of sport The sports club environment Government intervention Issues for the non-profit sport sector The rise of sport for development Non-profit Organizations non for profit voluntter organizations community sector third sector (less visible not less important) check all these boxes it is then considered non profit Non-profit organizations are: these companies make alot of money Separate from the State non for profit - owner is not pocketing alot of money Do not return profits to the money is reinserted into organization owners Self governing autonomous sport factoring of Significant element of volunteers Formally incorporated own seperate legal entities why are non profit organizations so important to sport? Non-profit Sector and Society volunteers - larger part of the economy Concept of citizen engagement social initiatives economic initiatives Major part of the economy Covers social, religious, charitable, philanthropic and sport related activities in the world of sport Most nonprofit groups target an area or a specific population group Issues finding volunteers, board members and funding (Cuskelly, 2017) hard to find volunteers - hard to find people to give their time for non money for a small organization alot of board members volunteers - do what is best for the organization how will train new board members?? Non-profit Sector and Society catagorize non profits Sport event organizations, training, fitness, facilities ex: IOC, fifa Recreation and social clubs, touring clubs, associations revolve around sport participation - social purpose and keeping traditions to oﬀer opportunities for competive and recreation sport Service clubs humanitary work mixed with sports - perform charitable works, raising money Particular interest: Professional service organizations Industry lobby groups Sport event organizations Sport governing bodies IOC makes lots of money sold broadcast rights how non for profit: online answers: put the money back into organization real answer: people benifit finacially say hide money to give to diﬀerent federations around the world, reality there is corruption IOC is a non for profit organization also fifa Non-profit Focus Exist to facilitate sporting opportunities Interdependent Volunteers are central to their operation Professional paid staff some non profit organizations have paid staﬀ Governing Bodies of Sport ex: doping dealt with by governing body Hierarchical system volunteers - high turnover rate Governance laws and regulation of sport Management manage everything Administration support the managemnet, policies, and procedures Rely on cooperation and negotiation to operate how will run non profit? talk to other city councils talk to province leaders deal with at federal level Sports Club Environment depends on size, and Administrators goals but usually in day-day life includes: Chairperson or CEO president Treasurer Secretary Volunteer coordinator Coaches paid or unpaid Officials huge piece - diﬃcult to find refs, umpires, General scorekeepers volunteers Government Intervention invest alotof money into sport, organization, athletes Volunteer management program government intervenes because want return on investmnet, want money back “Whole of sport” plans Sport England Club makers programme Seeking to influence the quality of people running the system self-determinant - power to do what they want ministers of sport - links from non for profit to profit sport oranizations will invest, but want return on investment pick sports and tells boards to come up with plan to keep people engaged - how will you promote your sport? how will you make high performing eite athletes? pushing for this as they need return on their investment about creating hall of sport plans across the country Issues for Non-profit Sport because 1. cost of living gone up - need to make money to make ends meet Declining volunteerism? 2. prestige of these sports has gone up - is it really worth it? what am i getting out of it? less and less people want to volunteer Litigious nature of society and insurance cost amount of lawsuits have increased in world have sport and cost alot of money: less money to cover lawsuits for local, small Trend toward informal participation no commitment organizations Market competition competition for where will participate Capacity problems infulstructure Governance and management systems Performance measures The Rise of Sport FOR Development importance? use sport to encourage people to be active, stay in school, stay healthy, etc. One of the more widely cited definitions of sport for development is (Lyras & Welty Peachey, 2011): the use of sport to exert a positive influence on public health, the socialisation of children, youths and adults, the social inclusion of the disadvantaged, the economic development of regions and states, and on fostering intercultural exchange and conflict resolution. Enormous growth of SFD programs Dominated by work in developing nations Significant employer Summary Non-profit sector and society Non-profit sector and sport Governing bodies of sport The sports club environment Government intervention Issues for the non-profit sport sector The rise of sport for development CHAPTER 4 Professional Sport most visible Chapter Objectives What is professional sport? Sport circuits Athlete management Ownership structures Professional Sport Defined commercial sport why is pro sport important? All about elite, high-performance competitions that capture large audiences and generate revenue. minor league = feeder league to the big leagues (low salary) CFL not aﬃliated with NFL considered developing on complellety seperate league - aﬃliated with professional sports league international scale league that can get called up from developmental to become superstar - imporve play ex: gleague for nba Three tiers – premier, minor and developing major/premier leagues: developing team/league: top of the top - pinical not directly aﬃliated with pro team (lowlsalary) best athletes of the world participate in this sport ex: CEBL (lower level then gleague) make ex: nba, nfl, wbna money from sports team NFL and EFL are two of the largest leagues football does not have minor league college football not minor league - not aﬃliated - not pro sport - amature sport Minor leagues operate as important feeders for major leagues Table 4.1 Professional global football teams with highest valuations in 2021 5-Year Change in Team Country Value (US$) Value Barcelona Spain 4,760,000,000 34% why peope want to own these teams? approx $5 billion as value skyrockets Real Madrid Spain 4,750,000,000 30% people want to host, broadcast these teams Bayern Munich Germany 4,210,000,000 57% Manchester United England 4,200,000,000 27% Liverpool England 4,100,000,000 165% Manchester City England 4,000,000,000 108% Chelsea England 3,200,000,000 93% Arsenal England 2,800,000,000 39% Paris Saint-Germain France 2,500,000,000 207% Source: www.forbes.com Table 4.2 Selection of Women’s Professional Sport Leagues women in sport has increased in the last few years Name Country Sport Year Founded WNBA United States Basketball 1996 NWSL United States Global Football 2012 NWHL United States Ice Hockey 2015 NFP United States Softball 2004 WSL England Global Football 2011 WBBL Australia Cricket 2015 AFLW Australia Australian Football 2017 NRLW Australia Rugby League 2018 W-League Australia Global Football 2008 Damehåndboldligaen Denmark Handball 1936 Sport Circuits considered professional sport Global circuits – NASCAR, European Champion’s soccer League, ATP tennis tour, F1, Olympics, World Cups City bid process to host event sports circuits special: athletes travel the world one oﬀ events all over the world Government support not necessarily playing same teams and at same facilities - each F1 - stands, events, showcases to visit - new government support year, each event constantly changing Broadcast rights how you make your money - people watch from home comonderates pay higher fees to get broadcasted - will profit oﬀ of it Athlete Management IMG agency revolutionized player management Octagon represents 800+ athletes agencies created to do everthing: Contract negotiations ex: shoe deals, Marketing and endorsements gatorate commercials Public relations and charity support NFL - "not for long" Financial planning how to manage money Media management Property development agencies are completeling an insane amount of research players, stats, market, earnings Speaking engagements contract negotiations used to be the only one dealt with by agency - angencies roles have grown - 24/7 taking care of their athlete anual salaries of athletes: athletes also make make more money from endorsments, media, deals Case Study LeBron James and Serena Williams, two of the most prominent athletes in world sport today. Sportsbiz concept: professional sport is more than just sport and provides opportunities for athletes to emerge with their own commercial interests Both of these athletes have a large global reach, have not only accumulated significant personal wealth for themselves but also delivered significant benefits to others in the sportsbiz landscape. Case Study LeBron James, professional basketball player for the LA Lakers 4 NBA championships, 4 MVP awards 4th highest earning athlete in the world Has deals with firms such as Nike (lifetime endorsement agreement), Coca-Cola, McDonalds, Samsung, Intel, and KIA Motors More social media followers than the NBA, Nike, LA Lakers… companies rather sign the athletes than the league - getting athletes have more impact, talked about more than a small logo Case Study Serena Williams, professional tennis player Widely recognized as one of the greatest tennis players of all time and one of the most accomplished Endorsement deal with Nike, Aston Martin, Wilson, Gatorade, Pepsi, Beats By Dre, Chase Bank (USA), and Delta Airlines Widely regarded for her activism and push for equal pay for men and women in tennis (and other industries) 28th highest-paid athlete in the world Case Study How do James’ and Williams’ sportsbiz circles compare, and how are they similar? What explains the difference in the money earned via endorsements by James and Williams? popularity of sport - basketball vs tennis popularity (watching, playing) gender - #1 diﬀerence individual vs team sport - all eyes on individual sport and individual in team sport selling jerseys vs no jersey for sport Ownership Structures Private ownership MOST COMMON one family/person behind the team importance: teams becoming more expensive, family becoming richer ex: lakers won championship, family now trying to sell could be worth billions ex:Community owners greenbay packers does shares - buy percentage share (part owner of the team) - shareholder not the norm Media conglomerates corporation and organizations pool together money to own teams Win versus profit maximizing profit maximizing (not willing to spend - good for profit book, not good for fans) vs wins (not good for profit book, good for fans) ex: nba trying to limit how much spend - taxing if spending too much, exceeds payroll threshold ex: mlbs teams: yankees - owners spends lots of money pitsburg pirates - reach certain level of hits, earns a bonus - could be sent to minor leagues so they couldnt reach bonus Summary sport team finance breakdown: What is professional sport? pro league revenue streams: 1. broadcast Sport circuits 2. gate and match day revenue - people come watch game 3. commercial 4. retail and licensing Athlete management 5. property development 6. team trading Ownership structures small league revenue streams: 1. social club and marketing 2. marketing and sponsorship 3. membership - community 4. league distribution and match day returns 5. other CHAPTER 11 Sport Organizational Culture what is culture? Chapter Objectives Defining organizational culture Relevance of culture to the sport manager Defining sport organizational culture The impact of culture in different sport contexts Sport and subcultures Sport organizational identity Diagnosing sport organizational culture Building sport organizational culture internal and external perception of the each has their own culture - each oranization is diﬀerent company What is Organizational Culture? want to understand subculture in sports. The general consensus among scholars is that organizational culture comprises the shared values, beliefs, assumptions, and standards for behaviour that influence the attitudes, habits, customs, and behaviour of an organization’s members. ex: "let things go", "all about winning" culture drives performance, changes how organization is seen 5 assumptions: Hard to change traditions are important in the world of sport Involves people, history and circumstances general managers, coaches making history Is learned and shared "how we do things" Is unspoken as employees we dont talk about the 'culture' of the company Manifests in a variety of ways Relevance of Culture some organizations have a stronger, ingrained culture Influence individual behaviour and organizational outcomes performance, win, championships Bespoke to each organization global and local relavence - cant talk about sport in absolute terms - cant say "all around the world" each unique, each their own best way of doing things no 1 solution to culture Defining Values Sport Organizatio Beliefs Attitudes 3 common to a group of people Common to members nal Culture Set behavioral norms or standards culture not tangable more common up to date definition Defining Sport Organizational Culture Culture can be assumed to be inflexible and resistant to hard to change the culture of an organization change. how do organizations change? scandal highlights negative aspect - hire new leadership to change the culture not all culture can be changed because of history and values - resistant to change Culture is created by an organization’s history and its members. story behind who we are - expectations built on history culture creates the expectation to win Culture is learned and shared by organizational members and teamwork reflected in common understandings of beliefs and values. respect support Culture is often intangible cant touch and based on deep values and beliefs that drive behaviours that may not be easily identifiable. culture in rugby: picking someone up to catch the ball Culture manifests in a variety of ways that impacts individual and organizational performance. culture usually only talked about when scandals surface - in a negative light - what is going on? what is the negative impact? why not winning championships? are the employees unhappy? Defining Sport Organizational Culture For the purposes of this course, we define sport organizational culture as the fundamental shared values, beliefs, and attitudes that are held by members of a sport organization and which subsequently establish the behavioural standards or norms for all members (Lussier & Kimball, n.d.). merged the old and new definition culture in simpler terms: how things are done how we think about things ex: how to dress, expectations laid out, is loyalty important? way we do things: what we do in house stays in house Impact of Culture in Different Sport Contexts values and beliefs diﬀernt depending if noprofit or commercial organization Business values vs community “feel” nonprofit goal to earn money vs goal to interest crowd brand Profit vs participation bigger than wins - dallas cowboys Inclusivity wonders for staﬀ, team, fans Tool for change positive culture is a great tool for change Sport and Subcultures Business systems applied to sport – need to consider cultural implications everyman and woman for themselves (dont want to get fired) but when culture succeeding (winning) everyone wants to help out ane be apart of the team Cultures vary within and between sports each has their own traditions Pro athletes, volunteers, paid staff, supporters, fanatics often view culture differently If working in sport, understanding culture goatagainst thetradition sport,- may get backlash - need to be organizational and unit level is important aware of reprocussions pro- athletes see culture in it everyday - see how coaches and fans treat them organization culture - win at all cost -- win - everyone wants you, lose - plague unit level - nutrition department has own culture volunteers - how does team treat you? paid staﬀ - do people treat you diﬀerently when you have a hard to have a diﬀerent culture at unit/department title to your name? role model? level than organizational level from fear of being supporters fired. fanatics - always there rain or shine - care for the culture --unit usually follows organizational level Sport Organizational Identity identitiy individuals self definition How individuals perceive themselves and are perceived by others identity as individual, as team Perception by outsiders losers? winners? Aligning the two (iceberg metaphor) identiity - perception everything on top - identity - what people see everthing hidden - culture - inner workings fans see wins, loses, scandals - thats the identity what is the culture behind it? Culture shapes identity, how people and emplyees see you Diagnosing Sport Organizational Culture Acquired through socialisation, learning and reactions of others only way to find out the type of culture - need to talk to people, integrate scandals Culture revealing situations negative conotation yourself to see for yourself Values and beliefs are behind these observable symptoms Table 11.1 – Observable Symptoms of Sport Organizational Culture known the symptom and general idea of Symptom Explanation explanation but dont need to memorize explanation Environment The general surroundings of an organization, like the building it where is it? location? is housed in and the geographical location, like the city or in a ex: downtown vs collage town grandstand. Artefacts Physical objects located in the organization such as photographs ex: culture of bulls: michael jordan, and trophies. his trophies, himself Language The common words and phrases used by most organizational gestures and body language members, including gestures and body language. ex: chants Documents Any literature including reports, statements, promotional material, memos and emails produced for the purpose of communication. people get attached to logo - represent Logos Any symbolic visual imagery including colours, fonts, and images that convey meaning about the organization. more to some people - associate logo with memory Heroes Current or former organizational members who are considered athlete, coach exemplars or role models. ex: michael jordan Stories Narratives shared by organizational members based at least good stories told about team partly on true events. Legends An event with some historical basis but has been embellished with fictional details. Rituals Standardised and repeated behaviours. ex: bbq Rites Elaborate, dramatic, planned set of activities. planned, orchestrated ex: award event, celebratory event Building Sport Organizational Culture Used to identify issues and need for change Challenge values, beliefs, attitudes ex: implenting technology slowly Establish new norms of behaviour ex: transparancy 5 steps: Review stories Words and actions Behaviours Valuesvalues? whats important? win at all cost? or estabilish rewarding Assess analyze - look at culture already established/ in place Summary Defining organizational culture Relevance of culture to the sport manager Defining sport organizational culture The impact of culture in different sport contexts Sport and subcultures Sport organizational identity Diagnosing sport organizational culture Building sport organizational culture CHAPTER 8 Organizational Design same as organizational structure - can be used interchangably Chapter Objectives What is organizational structure? Dimensions of organizational structure Structural models Influences on structure Challenges for sport managers What is Structure? how organization performs, how information flows and forms goals Requires balance between intern good idea? revolutionary change without crushing inovation formalizing without crushing innovation having head of departments - clear control Control and motivations motivation because of the structure - goal to become ceo - goal to move up the chain Clear communication without huge costs structure is free. no cost to make plan. allows for great communication Provides a roadmap to individuals and teams know who to address when have an issue Purpose of Structure everyone must carry their weight Clarifies roles and responsibilities ex: group contract Enables control to occur Facilitates task allocation ex: put on socials what uniform wearing so fans wear correct jersey Should reflect the goals of an organisation set goals. work toward goals. goals and structure must be tied Should allow efficient use of resources can allocate things much easier. resources can be people. all aspects of organiation needs to be covered Should allow decisions and communication to occur who is in charge, who makes decisions. decisions at top need to trickle down to rest of big organization ex: staﬀ meetings - everyone on same page of what needs to be done, message passed to each department communicated eﬀectively is good use of resources 6 Dimensions of Organizational Structure Work specialisation Departmentalisation Chain of command Span of control Centralisation Formalisation definition: Work Specialization Breaking jobs up into small standardised tasks that can be performed over and over again – the “production line” Must be balanced against the human side of work – it cannot be too boring, stressful – this leads to accidents, poor quality, increased absenteeism and higher job turnover McDonalds is a “good” example good for sport managers: hire experts in each domain to train atheletes to the best doing same thing every single day - boring therefore employees need to feel as if progressing, learn new task and skill midlife crisises, higher job turnover are negative result of no progression Departmentalization bringing in together individuals to a group dividing into groups based on: Functional group with specific function ex: recruiter. produce paper/ research project Product ex: design next basketball, other group designs new basketballshoes Customer ex: ushers, hosts there for VIPs (expert for where they will be) Geographic ex: oﬃce in montreal and oﬃce in california - same company, diﬀerent geographic departments Process ex: department handles flights for diﬀerent departments (recruiting, coaches, trainers) Chain of Command reporting trail between upper and lower levels of organization always someone who reports to sombody else Authority who makes decisions Responsibility leaders, communicate eﬀectively Span of Control staﬀ (paid or unpaid) Number of employees that a make sure each person under manager can efficiently and command is doing what they need effectively manage without falling apart without negative aspects to do some can handle 2 people, others Appropriate span is influenced by: can handle 10 - about the number can handle/control The skills and abilities of the manager and employees Similarity and complexity of tasks Physical proximity of subordinates Availability of standardized procedures standards in place? Sophistication of organization's information system IT department all decisions made by senior management 1 ceo calling shots commity calling shots -- have all the power Centralization all decisions have to go through big boss Locus of authority to make decisions Leisure jobs often have boards or steering committees – the decisions are centralized with relatively few people allowed to make major decisions Decentralization means decision making is handed down to front line staff – e.g. camp leaders allowed to adjust programming or activities without consulting their boss have to be able to make decisions on own Formalization are there alot of policies in place to form organization? are there no policies in place? Extent to which jobs are standardised and the extent to which employee behaviour is guided by rules and procedures Selection Training impacts of formalization high formalized: lots of rules, policies in place Policies low formalized: nothing set in place Procedures Rules Job descriptions Structural Models Simple structure Bureaucratic structure Matrix organization Team structure simple structure Figure 8.1 Simple structure department implies group of people 1 person not department - SIMPLE structure 3 employees under Manager Salesperson Administration Project worker low departmentalization - small organization formalization - low - small organization - little rules, not alot of policies highly centralized - clear who calling the shots bureacratic structure Figure 8.2 The bureaucratic structure ex: sport canada Chief Executive Officer Marketing Finance Services manager manager Manager Asset Graphic Web based Accounts Member Sponsor manageme design marketing payable services services nt high departmentalization - lots of departments centralized - still clear who calling shots, clear chain of demand high formalization the matrix structure Figure 8.3 The matrix structure ex: nba Football Corporate services Marketing division operations division division all marketing is department but all have their own teams Team 1 Manager 1 Project worker 1 Worker 1 department works in multiple diﬀerent Team 2 Manager 2 Project worker 2 Worker 2 departments - overlaps Team 3 Manager 3 Project worker 3 Worker 3 Figure 8.4 Team structure team structure - newest (adapted most in recent times) so many employees, decentralization just happen connected to ceo (still call shots but taking in imput from all the Team 1 teams) - make decision based on what everyone has to say Team 5 Team 2 Chief Executive Officer Team 4 Team 3 What influences structure? is it ceo that wants to call the shots? or want feedback? Strategy Size most important - size of organization influences structure the most small organization vs large organization have diﬀerent structures Technology sharing information and meeting with people Environmental uncertainty people all around you Strategy and Structure Innovation? often gets hurt need to find a way to make it diﬀerent, better - flip, change things somepeople support, others will pushback - what innovation is about hard to have innovation with static structure (someone clearly calls shots). innovation more likely to be accepted in a feedback oriented organization Cost leadership? no matter what the structure looks like need to be conscious of all leadership aspects aware of costs Influence of Size on Structure Size and formalisation to control standards, formal procedures and policies are developed, role descriptions created as an organisation gets larger large organization needs to be more formalized Size and centralisation larger organisations require decision making to occur at many levels to get work done large organization needs to be decentralized - needs to be flexible small organization is centralized Technology and Structure Greater use of IT drives: Higher levels of departmentalization More specialization as individuals struggle to keep up with everything Environment and Structure Uncertainty impacts: Athlete behavior sign huge deal, lots of money made for team but best player involved in scandal, all sponsors leaving, walk out door - athlete behaviour influences external factors and decisions Economy downturns no longer any money for people to buy Supplier actions run out of supplies running eﬀectively is very important Challenges for Sport Managers fewer staﬀ and less costs - how to keep productivity? Costs and productivity enviroment - market unpredictable Flexible to meet demands am i flexible to find more products and sponsors (if economy, supply falls) Volunteer and staff relations Deliver strategic outcomes what are my goals and outcomes of organization?? Stakeholder involvement do i play player even if not best to appease donor?? Interdependency sport unique: rely on competition want other team to do well to bring marketing, revenue - bring people from out of town, sell merchandise dont want competing team to do well beacuse rivalry, performance competition Summary What is organizational structure? Dimensions of organizational structure Structural models Influences on structure Challenges for sport managers CHAPTER 9 Human Resource Management Chapter Objectives What is human resource management? HRM practices across sport sectors Essentials of HRM Strategic human resource planning Recruitment and selection Orientation Training and development Performance appraisal Rewards and retention Human resources and diversity in sport organizations Human resource management in a digital era What is Human Resource Management? policies and procedures!! (HRM) The policies and practices that impact the relationship between employees/volunteers and their organization hired, fired, contract negotiations, policies HRM can vary between sport sectors public private professional - commercial HRM in Commercial Sport Unique features of sport organizations Pro sport club – manage sickness management, sport specialists, and players Volunteers still integral for commercial sport host event - have alot of volunteerrs deal with volunteers and paiid staﬀ and possible tension between the 2 HRM in the Public Sector Education sector a large employer train teachers Practices vary between countries Collegiate sport is a complex HRM environment handle situations left and right HRM in Non-profit Sport volunteers! In non-profit sport unpaid volunteers employ paid staff Significant volunteer effort Motivations, commitment, satisfaction and performance differ? HRM may not be a dedicated function – may share with finance non profit sport - lots of unpaid volunteers smaller organizations finance may also handle HR - contracts and disputes handled professonal sport - unpaid volunteers usually just for event whole dedicated team - large organization HRM Process 1. Strategic planning 2. Recruitment and selection 3. Orientation 4. Training and development 5. Performance appraisal 6. Rewards and retention The Human Resource Management Process 1. Strategic HR Planning 2. 6. Rewards & Recruitment Retention and Selection 5. Performance 3. Orientation Appraisal 4. Training & Development 1. Planning plan - what is our goals? how much staﬀ to hire? Assessing and forecasting HR needs Future overall demand Mix of capabilities Seasonal variations need to be available at right time Specific skill requirements need the right people! Job analysis & what is the job? need the set to be Job description E able to recruit. what is it that im looking at?? Job specification ↓ 2. Recruitment and Selection Generating a pool of applicants where do i get these people? Short listing applicants how do i shorten amount of applicants? Paper assessment of letter, form and CV Interview what are the procedures and policies in place to hiring people? Legislative requirements people try to go around legislative requiremnts - know people, skip interview process, dont post job online Personality tests – attitudes and values Intelligence tests Trial periods test job out before oﬃcially hired 3. Orientation idea is applicant has secured position now progress, make sure feel included Make new employees welcome and valued Direct supervision Organizational policies Employment conditions make sure they feel safe Health and safety Tour of workplace Training and development opportunities Performance appraisal 4. Training & Development Skill acquisition learn new skill ex: learn new language, learn about football to be able to talk about Designed for individuals Driver for organizational performance In house vs. external provider rating performance 5. Performance Appraisal Potential problem area disagreements happen, disputes occur Mindset of reviewing performance to improve not to punish motivate to continue create love for organization Goal setting, do, review, improve huge aspect know goals know expectations learn how to improve 6. Reward & Retain Rewards and recognition crucial to maintain volunteer commitment Differ by context need to reward volunteers and employees!! or they will leave important as took time to hire/ recruit, train, develop, review lose this employee - need to start from square 1 volunteer recieves diﬀerent reward than paid employee Diversity Diversity amongst employees is important and beneficial Ethical hiring practices Welcoming culture fun, exciting, engaging managers need to emphisize welcome culture HRM in a Digital Era E-recruitment check resumes online Technology to support know how to work with others through tech. tech systems core HRM functions Online training Summary What is human resource management? HRM practices across sport sectors Essentials of HRM Strategic human resource planning Recruitment and selection Orientation Training and development Performance appraisal Rewards and retention Human resources and diversity in sport organizations Human resource management in a digital era CHAPTER 7 Strategic Management simply goals! Chapter Objectives Principles of strategic management Sport and strategic management The strategic management process Strategic analysis Strategic choices Strategy formulation Strategy implementation Principles of Strategic Management Strategy is the match between an organization and its external environment how does it fit? how does it match the environment? Strategy involves: Direction and scope of activities is it a small community rec centre The environment Capability assessment what can be done? Views of key stakeholders Long term direction long term goals Sport and Strategic Management Balanced outcomes Manage with more than assumptions Sport organizations have multiple outcomes goal is not just to have high performnace training facility but maybe to have also have something for the community. delimma: go against eachother. competing outcomes The Strategic Management 1. Analysis Process 2. Choices how can i reach y goals based on environemnet 3. Formulation most creative aspect formulate plan and strategy to reach goals 4. Implementation put the plan in place Stage 1: Strategic Analysis Four tools available: 1. SWOT analysis 2. Stakeholder and customer needs analysis 3. Competitor analysis 4. Five forces analysis SWOT Analysis internal internal Strengths Weaknesses Opportunities Threats external external Stakeholder and Customer Needs Analysis Stakeholders in sport are multi-faceted and cover government, public and private sectors Customer needs can be easily identified – in some sport organizations board of directors, fans, anyone that has any say on organization are a part of the stakeholders sell product - trying to please customers anaylsis - shapes structures and goals ex: feedback is that product does work and no one will buy, reevaluate and change product Competitor Analysis very important to know competition is sport - want to know their weaknesses to beat them - same goes for organizations Geography Vision and intent Objective Market share and position Strategy Resources Target market Marketing approach Table 7.1 - Competitor Analysis Dimensions done to see what other groups are up to Dimension Description Geographic Scope Location and overlap cant have 3 professional basketball teams all in the same city are they trying to survive? or trying to exceed Vision and Intent Ranges from survival to attempts at dominance everyone else, standout? Objective Short to medium term intentions Market Share and Position From small player to virtual monopolist need to look at market share Strategy Methods of gaining a competitive advantage need to know what competition has when examining them Resources Volume and availability what resources do they have and how can we best use ours? good shoes but not cheap? Target Market To whom the products and services are directed make product that can be sold to other population - lower income Marketing Approach The products, services and the promotions, pricing and distribution behind them target new group of people Figure 7.1 - Five Forces Competitive Analysis rivalry - competitor 1. suppliers - provide resources, promote event change in suppliers aﬀects competition. if resources runs out, disadvantage of rivalry 2. costumers for product or service participation in rec league is buyer in

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