Kine 2038 Sport Admin Notes PDF

Mikayla Caranci KINE 2038: INTRO TO SPORT ADMIN NOTES CHAPTER 1: MANAGING SPORT Defining Sport - A sport: An activity that includes play, is organized, involves competition based on skill not chance, which has a level of physicality, has a broad following and has...

Mikayla Caranci KINE 2038: INTRO TO SPORT ADMIN NOTES CHAPTER 1: MANAGING SPORT Defining Sport - A sport: An activity that includes play, is organized, involves competition based on skill not chance, which has a level of physicality, has a broad following and has achieved institutionalization - Sports: A collection of separate activities such as golf, soccer, hockey, volleyball etc. (accumulation of all the individual activities) - Sport: All the people, activities, businesses and organizations involved in promoting, facilitating, producing and organizing activities, experiences and business enterprises focused on fitness, recreation, leisure or athletics; sport products can be goods, services, people, places or ideas *selling sport as a product* Defining Sport Management - The study and practice of all people, activities, businesses or organizations involved in producing, facilitating, promoting, or organizing any sport-related service or product ➔ Can be referred to by other terms including sport administration, sport business management, athletic administration ➔ Nature of Sport Admin and Sport Industry is fluid and dynamic (changing all the time, faster and faster) - Lots of places available to study sport admin; most in the US, also lots in Canada Nothing New Under the Sun - While the first formalized sport administration program was introduced in 1966, the discipline of organizing and managing athletic competitions dates back to the very beginning of sport in the ancient world. - Evidence of physical competitions being witnessed by onlookers dates back as far as 7000 BCE - The early linking of ritualized warfare, physical activity and entertainment necessitated the consideration of logistical challenges that resulted in bringing large groups of people together to witness competition between skilled performers Facets of Sport Administration - Have to manage the event; where they will meet - Promote event; how to get people to attend, people have to know about it - Product on the field has to be attractive for customers (high level athletes = charge more) - Technology; using it to enhance fan experience Nature and Scope of Sport Industry - In order to identify opportunities to commodify sport there are a number of ways to conceptualize the nature and the scope of the sport industry. ➔ Types of sport; traditional (ex: soccer), new/emerging (ex: video games) , reformulated (ex: pickleball) ➔ Settings for sport activities: single (ex: NHL), multi (ex: IOC), college, media, sponsors, professional services (ex: accounts, lawyers etc) , facilities, manufacturers/retailers, events/meetings/trade shows ➔ Sport industry segments Sport Industry Segments - An industry segment is a combination of product variations and the consumers who buy them (Pitts, Fielding and Miller 1985) - Sport industry segments ➔ Sport Production ➔ Sport Promotion ➔ Sport Performance - Various models exist to aid in understanding relationships between segments and within segments. ➔ Production segment- The Contemporary Sport Management (CSM) Sport Industry Sectors Model ➔ Promotion segment-The Strategic Sport Communication Model (chapter14) Contemporary Sport Mgmt Sport Industry Sectors Model (CSM) - Identifies three organizational categories (sectors) and how they contribute to the sport industry. ➔ Public-government based units, agencies, departments ➔ Nonprofit-voluntary organizations that address particular cause or the needs of its members ➔ Commercial-ultimate goal is to generate profit - Central to the creation and production of sport products, services, programs and facilities. Unique Aspects of Sport Management Sport Marketing - Sport has a primary *perishable* (event on the field/venue) and secondary product (merch, concessions etc) - Primary product ➔ Consumed as quickly as it is produced. ➔ Outcome is unpredictable *promotion based on past events* ➔ No guarantee of customer satisfaction. - Focus on both must be balanced Sport Enterprise Financial Structures - Sport managers continually compete for consumer discretionary funds through the sale of items that may or may not be related to the apparent focus of the enterprise. ➔ Sport enterprises earn a significant portion of revenue from extraneous sources. Professional enterprises-Television rights, concessions, road game guarantees (gets a portion of money made by away venue) , parking, merchandise Intercollegiate/Municipal Organizations-Private donations, rentals, user fees - Sport attracts consumers who spend money outside of the sports arena (transportation, food, drinks etc) Sport Industry Career Path - Traditionally, sport management practitioners have been hired based on their affiliations *ex retired athletes become part of “back office”* - The sport industry is recognizing the value of opening the workforce to a variety of available talent namely underrepresented groups. - Future sport management professionals with increased sensitivity to inequities can lead to ➔ Expanded workforce diversity ➔ Positive changes to organizational culture Sport as Social Institution - Sport often forms the basis of a person’s social identity because of its integration into everything including education, politics, family, economy, religion and media - Results in significant influence - Sport managers must ➔ Have sound understanding of the historical, psychological, sociological, cultural and philosophical dimensions of sport ➔ Be aware of the social implications of their actions. Future Challenges and Opportunities - The sport industry is expanding rapidly which presents sport administrators with a number of challenges and opportunities. Technology - Technology has been developing at an ever quickening pace and number of areas that will affect the sport industry - Artificial intelligence ➔ Chatbots-to provide virtual assistance to fan inquiries, Automated journalism-translating game data into text, Smart ticketing - Virtual reality ➔ Fan experiences, Training of athletes - Social Media ➔ E-commerce applications, Spectator interactivity - WiFi - Massive Video boards - Hi-definition and 3d technologies - Improved safety, care and training of athletes Ethics and Social Responsibility - Because of the potential of sport to be a platform for good, there is a call for greater accountability from sport managers in order to eliminate illegal and immoral incidents in the sport industry. - Sport Managers must deal with a multitude of questions that require and understanding of ethical principles and moral psychology Globalization of Sport CHAPTER 4: MANAGING CONCEPTS AND PRACTICE IN SPORTS ORGANIZATIONS Organization - Social entity that is created to coordinate the efforts of individuals with the intent to achieve a goal - By working in a collective, organizations can achieve ➔ Economies of scale; savings that come from the mass production of goods and services ➔ Economies of scope; savings from scale if more than one product or service - Process by which organizations achieve goals; inputs → transformations → outputs Organizational Environment - In attempt to achieve its goals, an organization must contend with the uncertainties of the external environment with which it interacts - Two organizational environment aspects  ➔ General ➔ Specific Organizational Environment Elements of the General Environment - Elements of the external environment that may influence an organization but may not have a direct effect on its day-to-day operations. - The economy; cost of living, growth, recession - Technology; rate at which discoveries are made, adapted and adopted by society - Politics; social and economic beliefs of governments in power ➔ regulation, taxation, size of government - Social and cultural forces; immigration patterns, ethnicity, religion, family dynamics - Demography; age of population, size of demographic cohorts, gender Elements of Specific Environment - Internal and external individuals (stakeholders) or groups that can affect or be affected by the organization - Primary stakeholders; Those who engage in economic exchanges with the organization (ex: customers, broadcast company) *pay money get smtg in return* - Secondary stakeholders; Those who affect or are affected by the actions and practices of the organization *no exchange of money* (ex: lending leafs players to a street hockey tournament for charity) Organizational Function/Culture Organizational Strategy - Plans or a course of action to achieve the organization’s goals while coping with its environment ➔ Organizational processes involved in identifying and capitalizing on a competitive advantage (considering internal and external factors) - Steps in the development of plans ➔ Identify the organization’s mission and a broad set of goals  ➔ Assess the strengths and weaknesses of the organization and any environmental opportunities and threats that will impact the organization as a means of determining objectives to achieve established goals ➔ Assess resources ➔ Establish timelines and identify milestones - Development of partnerships and alliances ➔ Organizations generally partner to complement their strengths with the strengths of other organizations in order to overcome the weaknesses of both organizations to create a competitive advantage that neither would have realized alone. ➔ Nature of organizational collaboration Asymmetry- one organization seeks to dominate another Reciprocity- coming together to achieve common goals Necessity- coming together to respond to constraints set by another organization Legitimacy- coming together to provide credibility (ex: UFC & reebok) Efficiency- decrease operating costs (ex: seneca at york/guelf-humber) Stability- help to reduce uncertainty and increase predictability Organizational Structure - Identifies the formal reporting relationships amongst individuals and organizational units, determines departments, groupings of functions and roles. - Informal groups within a sport organization ➔ Spontaneous formation independent of formal structure ➔ Operate simultaneously with formal structure ➔ Can compete or support with formal structure Dimensions of Organizational Structure Specialization - Division of labour- high vs. low - Complexity ➔ vertical- layers of hierarchy that exist between top executives and lowest employees ➔ horizontal- number of business units ➔ spatial- number of locations in which organization operates Formalization (standardization) - Amount of written documentation ➔ Job descriptions, reporting structures, policies, procedures - Controls/directs employee behavior - High level of formalization leads to standardization Centralization - Hierarchical levels of individuals with the authority to make decisions ➔ Centralized- Decision making resides at top of organizational chart  ➔ Decentralized-Greater amount of decision making resides through entire organization Organizations are often both centralized and decentralized - Factors affecting centralization of decision making ➔ cost, timing, qualifications of employees Organizational Design - The features and traits of an organizations that allow it to achieve its goals Henry Mintzberg - Outlined different design configurations for various types of organizations based on the nature of their operations - Designs based on the interplay of five organizational parts ➔ Top management- leadership of organization ➔ Middle management- managers between leaders and front line employees ➔ Technical core- group or employees that produce goods and services ➔ Administrative support staff- provide support function ➔ Technical support staff- provide technical and technological support Mintzberg’s Proposed Designs - Based on the interplay of the five parts of an organization the following Mintzberg and number of design possibilities ➔ Simple structure- small orgs. Top management and technical core ➔ Machine bureaucracy- manufacturing, all five parts ➔ Professional bureaucracy- technical core and admin support important ➔ Innovative- emphasizes creativity, power resides with experts ➔ Missionary- built around ideology ➔ Political- very flexible, typical for temporary organizations Organizational Performance - Measures by which organizations know they are achieving their intended goal ➔ Effectiveness: the extent to which goals are achieved (focus on results) ➔ Efficiency: the achievement of goals using minimum resources (focus on activities) Evaluating Organizational Performance Traditional Approaches  - Goal approach; Organization successful if its goal is achieved - Resource-based approach; Organization successful if it can acquire inputs and transform them into outputs - Internal process approach; Organization effective if it can process inputs while considering the internal well-being of the organization *Traditional approaches do not take into account the environment that the organization operates in* Contemporary Approaches - Competing-values approach; Success of an organization is based on it values with respect to: ➔ Focus – continuum from internal (employees) to external (organization) ➔ Structure – continuum from stability (task-oriented) to flexibility (change/innovation) - Stakeholder approach; Success of organization is judged by stakeholders ➔ Determination of performance will change depending on stakeholder group Organizational Change - Process by which leaders within an organization adopt new ideas and behaviours to enhance their operations, products and services. - Two frameworks for studying organizational change 1. Organizational life cycle - Also called the model of organizational growth - Fours stages of growth each punctuated by a crisis ➔ Entrepreneurial- based on the vision of the founder Need for leadership- founder becomes overwhelmed ➔ Collectivity- reaffirmation of goals and design and structure to achieve them Need for delegation with control- ltd autonomy of employees results in frustration ➔ Formalization- rules and procedures refined and formalized Too much red tape- too much bureaucracy paralyzes employees and stifles innovation ➔ Elaboration- leaders and managers embrace collaboration Need for revitalization- organization’s alignment with its environment becomes askew 2. Contextualist approach - Change does not take place in isolation or in a brief period - Change is accomplished over time by considering three elements 1. Content- What has changed? 2. Context- Why the change occured? ➔ Internal- elements at play within organizations ➔ Outer- elements in the organization’s environment 3. Process- How has the change occurred? Innovation - Organizational change often involves innovation - Two types of innovations Product innovations - Creation of new product designs - Development of new products Process innovations - Improve efficiency or effectiveness of organizational processes *Must be managed carefully; May face resistance, Resources may not be adequate* Radical or Incremental Innovation Radical innovations - Break unwritten industry rules - Highly disruptive - Often due to technological change Incremental innovations - Small and evolutionary - Can add value and have competitive advantages - Tend to be more common than radical innovations Sources of Innovation - Unintended - Incongruity- the difference between reality as it is and as its assumed to be - Process needs - Industry and market changes - Demographic changes - New knowledge Organizational Culture - Pattern of basic assumptions developed by a group as it learns to cope with problems of external adaptation and internal integration. ➔ Used to guide organization towards its goals Manifestations of culture - Stories and myths- narrative based on fact and/or fiction - Symbols- events or objects that convey meaning for the organization - Language- jargon/terminology used within organization - Ceremonies and rites- social and award events organized by leaders - Physical setting- space belonging to organization - Symbolic artifacts- Items found in the organization’s physical setting CHAPTER 5: MANAGING & LEADING IN SPORTS ORGANIZATIONS Organizational Behavior - Study devoted to understanding individual and group behavior, interpersonal processes and organizational dynamics - Key aspects that impact organizational behavior ➔ Management ➔ Leadership ➔ Power ➔ Diversity Management - Process of working with and through individuals and groups and other resources to achieve organizational goals - Theoretical approaches to managing people; Scientific Management Approach - Focuses on scrutinizing the performance of individual workers ➔ Workers who produce more receive greater rewards ➔ Advocates for rewarding employees on units produced or sold rather than time ➔ Eg. Ticket sales on commission Human Relations Management Approach - Strong positive relationship between a manager’s concern for the well being of employees and higher productivity ➔ Greater management concern leads to increased employee self importance ➔ As employees perceive themselves to be more important to their employers they become more cohesive ➔ Greater employee cohesion results in higher job performance and overall productivity Process (administrative) Management Approach - Focus is to manage the organization as a entity ➔ Most predominant theoretical framework in recent times ➔ Uses interactive activities to accomplish the goals and objectives of organizations, departments or work units Underlying management functions Managers often engage in the functions in different sequences depending on the need of the organization at a certain time - Includes management functions below Management Functions 1. Planning- developing goals and objectives and establishing processes and regulations 2. Staffing- recruiting, hiring, orienting, training and replacing of employees 3. Organizing- arranging resources for employees to do their job 4. Directing- influencing members (motivate to increase productivity)  5. Controlling and evaluating- evaluating whether employees are making progress towards achieving objectives and are adhering to guidelines and standards Classification of Managers - All managers have formal authority for organizing, directing and controlling the work of others - Managers within organizations have different degrees of authority - In the hierarchy of an organization managers are usually classified based on their level of authority Managerial Skills - Skill sets common to all effective managers - Three Categories; ➔ Conceptual- help manager to identify root cause of problems ➔ Human relations- help manager to lead, motivate and develop group cohesion ➔ Technical- are directly associated to specific skills required to complete a particular task - Level of proficiency in each category will vary depending on the organization and the level of management Leadership - A relationship where individuals, or a group of individuals, influence others in an effort to inspire stakeholders to move towards an end goal that depends on alignment with values and a mutually beneficial purpose - Parallels and differences in the roles of leaders and managers ➔ Both leaders and managers involve people working with other people ➔ The term ‘leader’ is broader than the term ‘manager’ ➔ Managers are primarily focused on efficiency while leaders are focused on effectiveness ➔ Managers cope with complexity while leaders cope with change - Two main frameworks in which to consider leadership ➔ Contingency Theory of Leadership ➔ Full Range Leadership Model Contingency Theory of Leadership - Recognizes that the most effective style of leadership is dependent on the situation and the context - Leadership is based on; ➔ Leaders’ traits, power and goals ➔ Followers’ expectations and values ➔ Leadership context which is based on organizational complexity and task uncertainty Leaders - Leaders are responsible for introducing and managing change - Leaders’ ability to affect change is dependent on leader having some form of power - Power can be based on ➔ Personal characteristics ➔ Knowledge or expertise ➔ Place within the organizational hierarchy Followers - Followers are a vital component to the process - Importance often overlooked in favour of the leader’s role - Alignment between the followers’ values and expectations and leaders goals is essential ➔ Highlight the need for clear communication Context - Recognizes that issues of organizational complexity and task uncertainty will guide the most appropriate leadership style when it comes to coping with change ➔ Organizational complexity- Influenced by the size of the organization and the location of the workspace ➔ Task uncertainty- level of uncertainty that accompanies change can range Routine and repetitive (certain) Innovative, novel and non repetitive (uncertain) Full Range Leadership Model - Model focusing on specific leadership behaviours that are attached to leadership theory. - Identifies three leadership behaviours ➔ Nontransactional (laissez-faire) leadership ➔ Transactional leadership ➔ Transformational leadership - Managers use a mix of all three types of behaviours with the most effective leaders making more use of transformational behaviours Non transactional leadership - Extreme passivity where all forms of leadership are avoided - Least effective leadership style Transactional Leadership - Implies an exchange between leaders and followers whereby they agree on the types of performances that will lead to reward or punishment - Involves three types of reinforcement behaviours ➔ Contingent reward- leaders attempt to be clear on expectations and reward and clarification are provided based on an employees adherence to expectations ➔ Active management by exception- managers keep track of followers’ performance and take corrective action when mistakes are made ➔ Passive management by exception-managers do not monitor performance, they wait passively and make corrections when mistakes occur Transformational leadership - Leaders create a vision to inspire followers through change and work through change with followers - Active use of the four Is ➔ Idealized influence- serves as a good role model ➔ Inspirational motivation- encourages optimism and enthusiasm ➔ Intellectual stimulation- encourages consideration of new ways of looking at old methods and problems ➔ Individualized consideration- give personal attention, listens and acts as a coach or mentor Sources of Power - Legitimate or positional power; Power from ones position in the organizational hierarchy - Reward power; Power from ones ability to reward behaviour - Coercive power; Power from ones ability to apply sanctions - Referent power; Power from charisma, charm and appeal - Expert power; Power from knowledge and skills valuable in the situation - Information; Power from access to information Power Vs Authority - Power ➔ Ability to influence others ➔ Control over resources - Where as power suggests ones ability to influence other people, authority is ones ability to enforce rules Decision Making Steps in decision making 1. Defining and framing the problem ➔ Fully understanding all that is involved in addressing the problem 2. Identifying criteria for decision ➔ Time frame, past resistance, stakeholder impact 3. Developing and evaluating alternatives 4. Selecting an alternative ➔ Choosing of alternative that best responds to the problem 5. Implementing the alternative ➔ Consider who needs to be involved and how implementation best takes place 6. Evaluating the effectiveness of the decision Organizational Diversity - The presence of socially meaningful differences among the members of a group - A diverse workforce is more representative of the public, can better respond to consumers’ needs and can provide consumers with better goods and services  - Representations of diversity ➔ Surface- visible, easily knowable difference ➔ Deep- differences of values, beliefs, experience and expectations Development of Diversity - Can be challenging when leaders have not created a culture where diversity is accepted as valuable and part of normal organizational functioning - Organizations generally adopt cultural diversity along a continuum Categories of Diversity Management Keys to Support Diversity CHAPTER 15: FINANCE & ECONOMICS IN THE SPORT INDUSTRY Introduction - The inherent diversity in the sport industry makes it difficult to measure the overall economic size of the industry ➔ Estimates of the size of the global sport industry range from US$151 billion (PricewaterhouseCooper) to US$1.5 trillion (Plunkett Research) ➔ Sport contributes a great deal to the global economy Current Financial Situation of U.S Professional Sport Growth of segment - NFL had operating revenues of US$12.5 billion in 2015 compared to operating revenue of UD$6.16 billion in 2005 - Over the past decade major men’s professional sport leagues have seen their revenue increase by 10 percent annually Despite successful growth, challenges remain - Despite efforts to curb the trend, huge disparities exist between high and low revenue teams  - As an entertainment source, revenue generated fluctuates with changes in the economy which impact discretionary spending - Sport team’s are also subject to inflationary forces Formula for profitability - Profit = total revenues − total costs Issue of controlling spending - Sources rising costs ➔ Team payroll ➔ Travel expenses ➔ Coaching and staff salaries ➔ Venue costs and depreciation Current Financial Situation of U.S Collegiate Athletes - Situation is more dire in collegiate athletics as costs are significant with limited sources of revenue - Costs are rising. ➔ Collegiate sport faces similar cost concerns - Revenue more challenging than professional sport ➔ Lucrative media and merchandising revenue is limited - Many athletic departments face difficult financial futures ➔ Continued existence often requires significant restructuring ➔ Issues of balancing desires of donors and needs of programs Economics of Sport - The study of how people within in the sport industry deal with scarcity ➔ Scarcity- the idea that resources available are insufficient to meet the wants and needs of society Economic interaction - The exchange of one product of value for another product of value - These interactions occur within markets ➔ Can be an actual physical location-sports memorabilia store ➔ Can also be an intangible phenomena-all people interested in a product or service Two areas of study - Macroeconomics and Microeconomics - Microeconomics have the most effect on the day to day operations of an organization ➔ The study of the behaviour of individual businesses and households ➔ Consideration of variables such as price, revenue, costs and profits Supply–demand model - a widely used model to help describe human behaviour - Can be used to predict; ➔ Amount that consumers are willing to buy at various price points ➔ Amount that suppliers are willing to produce at various price points Supply-Demand Model Law of demand - Consumers will demand less of a product as its price increases - Quantity demanded-the amount of a product that consumers are willing to buy at a certain price Law of supply - Suppliers will increase production as the price of a product increases - Quantity supplied- the amount the suppliers are willing to produce and sell at various prices Market equilibrium - The price at which the quantity demanded equals the quantity supplied Market surplus - A price at which the supplied quantity of a product is greater than the demanded quantity Market shortage - A price at which the demanded quantity of a product is greater than the supplied quantity Economic Impact of Sport Events and Facilities - Sport events bring a substantial amount of economic activity ➔ Spending is stimulated in local economies Positive impact on taxes and job production - The net economic impact of a sport event and/or facility measured by Sport economic impact studies Sport economic impact studies - Measures the increase in revenue, tax dollars, and jobs attributable to a sport event or facility ➔ Estimated overall economic impact of Super Bowl in 2024—US$1 Billion (FOX News) - Collect information on spending patterns of visitors - Suffer from disagreements and manipulations ➔ Purely economic benefits vs. intrinsic benefits - Readers should ask these questions: ➔ Who conducted the research? ➔ How was the research conducted? Overview of Financial Management Functions fall into two areas 1. What to do with current financial resources 2. How to procure additional financial resources Key roles of the financial manager  - Determine how much money the organization will need to meet short-term and long-term obligations - Determine how the organization will procure those funds Financial Statements - Developed on a regular basis to allow internal and external stakeholders to monitor an organization’s financial situation Balance sheet - Reflects one aspect of the financial condition of an organization at a particular date with respect to what the organization owns versus its commitments to its owners and creditors Income statement - Reflects another aspect of the financial condition of an organization over a period of operation with respect to what an organization has earned and comparing that to the expenses it incurred during the same period Balance sheet - Generally reported at the end of financial period Includes three categories - Assets- what the organization owns ➔ Current assets, Long-term assets - Liabilities-what the organization owes to its creditors ➔ Current liabilities, long-term liabilities - Owners’ equity- what the organization owes its owners ➔ Owner’s personal investment and earnings that owners leave within the organization - Fundamental relationship ➔ assets=liabilities + owner’s equity Income statement - Reflects the on going operations of an organization - Reports on the organizations ‘bottom line’ - Broken into two categories ➔ Revenues– inflow of value into the organization Operating revenue--Recorded when goods or services are delivered not necessarily when cash is received ➔ Expenses– costs incurred that offset the inflow of value Direct-expenses that can be matched directly to the main source of revenue Operating-normally occurring expenses that cannot be directly tied to revenues Other-expenses occurring outside normal business operations Income tax-expense occurred settling tax obligation Sources of Revenue & Expenses for Sports Organizations - Sources of revenue and expenses vary depending on the type of sport organization - Regardless of organization type there are sources of revenue and expenses that are unique to the sport industry Sources of Revenue Unique to the Sport Industry Game attendance and ancillary purchases - Seat prices, personal seat licenses, luxury suite rentals, concessions, donations and parking - Associated fees increase the total cost of attendance Media rights - As cost of attendance grows and quality of broadcast product improves, more people consume sport at home, increasing the potential revenue generated from media contracts - In many cases revenue for broadcasters is limited but having the media rights for a certain sport event has intrinsic promotional value Sponsorships and endorsements - Corporations seek to take advantage of positive associations with sport events - Perception that the association creates a positive image for the company that in turn influences people to buy their products - Large amounts of money are also paid to athletes to promote for organizations Licensed merchandise - Capitalizing on positive feelings that sport spectators have about teams and players Cost of sport facilities - Can be extremely expensive which can result in long term payments that have a long term impact on the organization’s financial stability - Despite the tendency of sport organizations to convince local communities to pay for stadiums, many find they are still required to cover at least a part of the cost of a new venue - Facilities are also costly to maintain Cost of salaries - Salaries have increased significantly in the last 40 years ➔ Often times athlete and coaching salaries make up more that 50 percent of the operating expenses in professional sport ➔ College coaches are often the highest paid public employees in a given state - Debate over value of talent versus return on investment for team Careers in Financial Management for Sport Organizations - Financial management jobs in the past ➔ Managers glorified book keepers - Sophisticated financial management skills needed for today’s jobs ➔ Consideration of long and short term implications of financial decisions - Positions in financial operations  ➔ Those with specialized skills coupled with those that have a more solid grasp of sport - Skills and education required CHAPTER 16: SPORT FACILITY AND EVENT MANAGEMENT Introduction - Rise in construction and renovation of sport and entertainment facilities in the United States and worldwide - Sports teams approaching governments on an ever increasing basis to assist with capital projects - Seek funding from government sources ➔ Tax increase ➔ Issuing of tax exempt bonds - Community and media backlash over use of public money on these projects ➔ Debate: Sport venues vs. social needs (Bread and circuses) - Diminishing distinction between sport and entertainment Types of Facilities Facilities generally fall under one of three types - Single purpose-Designed/used for only one sport - Single purpose, specialized-Designed for specialized events but might not be single-purpose facilities - Multipurpose-Designed to host a variety of events - Non traditional-May or may not have roof, walls, or spectator seating areas Facility Management - Crucial for a safe and enjoyable environment - Trend toward privatization/ outsourcing of facilities management ➔ Outsourcing facilities management can result in considerable savings for a sport organization and further allows organization to focus on the delivery of their sport product - Managerial numbers, titles, and duties vary Three positions that generally always exist in facility management - Facility director(aka facility manager) ➔ Overall responsibility for facility ➔ Creates and administers facility Standard Operating Procedures(SOPs)  - Operations manager ➔ Reports to and advises Facility Director ➔ Executes SOPs-oversees personnel, and evaluates facility operations - Event coordinator ➔ Reports to Facility Director ➔ Oversees and coordinates logistics of events within facility Event Management - Events come in many shapes and sizes. - High expectations for flawless execution ➔ Dissatisfaction of even a small percentage of patrons can have significant impact ➔ Preparation crucial - Event management includes planning, coordinating, staging, and evaluating. - Interaction and cooperation of various personnel essential to event success Event Management Personnel - As with facility management, positions in event management vary significantly though some generalities exist ➔ Executive director ➔ Operations division manager ➔ Security coordinator ➔ Public relations, marketing, and hospitality division managers Executive Director - Overall event administrator with ultimate accountability ➔ Development of operational and strategic plans Preparation of budgets for approval Anticipation of problems and implementing solutions - Responsible for recruiting, hiring and directing division managers and coordinators and ensuring adequate administrative support for them - Preparation of event manual Operations Division Manager Responsible for event plan execution - Defines roles and responsibilities and recruits, hires and directs personnel that coordinate various components of event - Assists coordinators in the development of plans for their area - Coordinates and facilitates activities and communications between divisions - Interacts with other division managers - Evaluates operations division and makes recommendation to executive director Public Relations, Marketing and Hospitality Division Managers Responsible for policies procedures and personnel pertaining to their area  - Media and public relations - Ceremonies and protocol - Develop, implement and manage overall marketing plan (looking at trends in society) - Assist other divisions with their PR, marketing and hospitality needs and facilitate communications among personnel in other divisions as needed - Sponsorship - VIP services (security for high profile people etc) Security Coordinator Responsible for ensuring a safe and secure event - Interacts and cooperates with representatives of various agencies within a command group structure *interact with fire/police if needed* - Command group responsible for risk assessment plan, for developing emergency and evacuation plans and for executing said plans as necessary - Ensure staff are adequately trained - If they do their job right no one knows, if they make a mistake everyone knows Six Basic Steps of Event Management Plans - All successful events should have an event management plan which will follow six basic steps 1. Scheduling 2. Negotiating 3. Coordinating 4. Staging 5. Cleaning up 6. Evaluating Pre-event Management Tasks 1. Scheduling the event - Two perspectives ➔ Facility-scheduling the largest number of events within the context of facility limitations and philosophy and to earn the highest level of profits. ➔ Event director-booking event that provides best location and amenities that serve the demands of the event. - Scheduling involves resolving any conflicts that arise between the needs of the facility and the needs of the event - Conflicts are best resolved by use of cost benefit analysis and risk management plans 2. Negotiating the event - Once decision is made to schedule an event the facility director negotiates the terms of the contract for use of the facility with the event director - Most facilities use a boilerplate contract (fill in the blank format, generic doc with standard language) to address specific terms that will be agreed upon by the facility and the promoter - One of the major negotiated items: revenue  ➔ Flat fee ➔ Split (just portion of profits from event) ➔ Combination of both (flat fee plus portion of profits from the events) 3. Coordinating the event - Once negotiations are complete, the event coordinator reviews agreements made by the Facility director and event director. ➔ Work order-game plan for event Itemizes equipment necessary to meet the needs outlined by the event coordinator ➔ Event Director oversees logistics of ensuring resources necessary are in place for the event Work breakdown structure-breaks event tasks down to manageable parts and assigns resources and personnel to those tasks ➔ Any equipment not available at facility must be procured and planned for by event director 4. Staging the Event - Coordination and planning key to smooth running event ➔ Event director in conjunction with operations divisions may develop a number of documents to ensure the event runs smoothly Run sheets; A schedule of the timing and sequence of the event elements Floor plans; illustration of where equipment or items to be placed at venue Floor diagram; Illustration of how event participants will move through the venue Security - Adequate risk assessment in collaboration with command group essential to ensure event safe and secure ➔ Identify vulnerabilities so that appropriate plans can be made - Various plans developed ➔ Essential facility plan-incident response and facility evacuation ➔ Event operation plan-alcohol, communications, credentialing, emergency medical response, fan comportment, missing persons, prohibited items, searching, fan removal - Protective measures ➔ Surveillance, deliveries, facility lockdown, law enforcement presence, staff background checks, briefing/debriefing Customer service - Event attendees are the fuel that a successful event relies on - In order to encourage repeat customers event and facility managers must listen to guests and respond effectively to their concerns - Managers have a wide array of tools to gauge customer attitudes ➔ Surveys  ➔ Social media Alcohol Policies - Alcohol stimulates significant debate for event managers ➔ Liability incurred vs. Increased revenue - Policy and training ➔ Develop plan that addresses admission, detection, restrictions ➔ Staff should be appropriately trained (SmartServe) - Sales and marketing ➔ Time and quantity limits before during and after event - Tailgating ➔ Ensure areas are monitored and limit tailgate hours - Detection and enforcement ➔ Gate searches, deny entry, no re entry policy Crowd Management Plan - Staff recruitment and training-Ensure adequate staff - Emergency planning-Limit severity of unwanted occurrences - Ensuring accessibility for people with disabilities ➔ Special evacuation plan for persons with disabilities - Procedures for ejecting disruptive people- Safe environment vs. litigation - Efficient communication system ➔ Accessible to command group to communicate emergencies - Effective signage- Facility directives and directional signage Post Event Tasks 5. Event cleanup - Event equipment stored/returned - Facility cleaned/repaired Settlement - Reconciling expenses and revenues and dividing profits according to contract 6. Evaluating the event - Management team collects details/information regarding event ➔ Apply information in future events ➔ Ensure protections against litigation