Sport Management Study Notes PDF

1 Introduction to Management in Sport 1. Types of Organizations in Sport Profit vs. Non-Profit o Profit Organizations: Aim to generate revenue and financial profit. o Non-Profit Organizations: Focus on societal benefits, not profit-driven. Public vs. Private...

1 Introduction to Management in Sport 1. Types of Organizations in Sport Profit vs. Non-Profit o Profit Organizations: Aim to generate revenue and financial profit. o Non-Profit Organizations: Focus on societal benefits, not profit-driven. Public vs. Private o Public Organizations: Owned by the state or government (e.g., national sports federations, public schools). o Private Organizations: Includes companies and associations managed independently of the state. Public-Private Partnerships (PPPs): o Collaborative models that combine resources from both public and private sectors, often for large projects like stadium construction or community sports programs. Key Example: A stadium built with government funds (public) but operated by a private sports club (private). 2. Company and Business Process Technical Division of Work: Tasks within an organization are divided to increase efficiency and quality. Coordination and Delegation: o Managers coordinate specialized tasks across different areas, similar to an orchestra conductor ensuring harmony among musicians. Key Concepts: - Coordination: Aligning efforts across departments. - Delegation: Assigning specific responsibilities to different team members or departments. 3. Essence of Management Managers work to coordinate, delegate, and make decisions to guide an organization. Core Tasks of Managers: o Planning: Setting organizational goals and deciding on the steps to achieve them. o Organizing: Structuring the organization to ensure it can meet its objectives. o Leading: Motivating team members to work towards the organization’s goals. o Controlling: Monitoring progress and making adjustments as needed. 4. Managerial Functions Planning: Outlining goals and identifying strategies. Organizing: Establishing roles and responsibilities. Leadership: Motivating and guiding employees. Control: Ensuring goals are met through monitoring and corrective action. Important Note: These functions are continuous and interdependent, meaning they do not occur in isolation but influence each other. 5. Managerial Roles (Mintzberg's Framework) Interpersonal Roles: o Figurehead: Represents the organization at public events. o Leader: Directs and motivates team members. o Liaison: Connects with external stakeholders and other organizations. Informational Roles: o Monitor: Collects and analyzes information relevant to the organization. o Disseminator: Shares important information with the team. o Spokesperson: Represents the organization to outsiders. Decisional Roles: o Entrepreneur: Initiates and manages change. o Disturbance Handler: Addresses unexpected issues. o Resource Allocator: Distributes resources efficiently. o Negotiator: Engages in negotiations on behalf of the organization. Additional Perspective: Adizes' framework suggests that managers fulfill four key roles: Producer, Administrator, Entrepreneur, Integrator (PAEI). Most managers excel in one or more of these roles but rarely all. 6. Levels of Management Top-Level Management: Focuses on strategic goals for the entire organization. Middle-Level Management: Responsible for tactical goals at business unit or functional levels. Lower-Level Management: Handles operational goals for departments and teams. Visual Memory Aid: Think of a pyramid structure, where top management oversees strategic decisions, middle management addresses tactical objectives, and lower management focuses on daily operations. 7. Social Responsibility & Ethics in Sport Ethical Theories: o Deontological (Duty-Based): Actions are judged by their adherence to rules or duties. o Teleological (Outcome-Based): Actions are judged by the consequences they produce. Carroll’s Model of Social Responsibility: o Economic Responsibilities: Must be profitable. o Legal Responsibilities: Must obey laws. o Ethical Responsibilities: Should adhere to moral principles. o Discretionary Responsibilities: Might engage in voluntary activities that benefit society. Exam Tip: Be prepared to discuss ethical scenarios, especially in the context of sports organizations that impact both society and athletes. 8. Non-Profit Organizations in Sport Key Characteristics: o Non-profits serve the public good, reinvest surplus revenues, and rely on non- traditional funding sources like grants and donations. Common Challenges: o Resource limitations, “founder’s syndrome,” dependency on external funding, and navigating political influences. Managerial Responsibilities: o Fundraising, human resource management, and branding to sustain and grow the organization. Example: A youth sports organization that offers free training sessions funded by community donations. 9. Fundamentals of Sport Management Management vs. Administration: o In sports, management entails planning, implementation, and control, whereas administration is often focused on day-to-day operations. Types of Sports Management: o Recreational Sports Management: Focused on public health and enjoyment, often supported by volunteers. o Competitive Sports Management: Prioritizes achievement and professionalism, requiring more investment and expertise. 10. Role of the Sport Manager Key duties include coordinating activities, managing resources, and overseeing planning and control processes. Types of Sport Managers: o Organization Managers: Manage overall operations. o Infrastructure Managers: Focus on sports facilities and equipment. o Event Managers: Plan and execute sports events. o Agents: Represent athletes and manage contracts. 11. Ethics in Sport Core Ethical Principles: o Follow established rules, avoid harm, respect victories and defeats, and prioritize fairness. Guidelines for Ethical Decision-Making: o Ensure legality, impartiality, and self-respect when making decisions. Key Concept: Ethics in sports management is crucial for maintaining integrity, fairness, and respect among athletes, teams, and organizations. 1.1 Introduction to Business Performance 1. Definition and Importance of Business Performance Business Performance: The measure of an organization's efficiency, effectiveness, and ability to achieve its objectives. Significance: o Indicates financial health and growth potential. o Helps in strategic decision-making, especially in competitive industries like sports. o Assesses an organization’s capacity to satisfy stakeholders (e.g., fans, sponsors, investors). Key Point: In sports management, understanding performance is essential for optimizing resources, managing teams, and ensuring sustainability. 2. Performance Indicators in Sports Organizations Financial Indicators: o Revenue Growth: Measures increases in sales, sponsorship, and ticketing over time. o Profit Margin: Shows the profitability of an organization relative to its revenue. o Return on Investment (ROI): Indicates the efficiency of investments. Operational Indicators: o Efficiency: Assessed through cost control, productivity, and resource utilization. o Capacity Utilization: Evaluates how well facilities (e.g., stadiums) are used. Customer Satisfaction Indicators: o Reflects fan engagement, retention, and satisfaction with services and products. o Example: High fan satisfaction can lead to increased ticket sales and merchandise purchases. Example: A sports club tracking revenue from merchandise to assess its fan engagement level. 3. Balanced Scorecard Approach Definition: A strategic management tool that balances financial and non-financial performance indicators. Four Perspectives: o Financial: Revenue, profitability, cost management. o Customer: Satisfaction, engagement, loyalty. o Internal Processes: Efficiency in operations, innovation, and logistics. o Learning and Growth: Employee development, culture, and adaptability. Application in Sports: o Helps organizations assess overall performance beyond just financial metrics, incorporating fan satisfaction and employee training. Key Insight: The balanced scorecard encourages a well-rounded approach, recognizing that strong customer engagement and effective internal processes lead to long-term success. 4. Types of Business Performance Analyses Trend Analysis: o Observing performance metrics over time to identify patterns. o Example: Tracking attendance trends over multiple sports seasons. Ratio Analysis: o Financial ratios (e.g., debt-to-equity, profit margin) are used to evaluate financial health. Benchmarking: o Comparing metrics against competitors or industry standards to gauge relative performance. o Example: A sports club may benchmark ticket sales against other teams to understand market position. 5. Financial Statements as Performance Tools Income Statement: o Details revenue and expenses, showing profit or loss. o Application: Useful for tracking earnings from ticket sales, sponsorships, and merchandise. Balance Sheet: o Shows assets, liabilities, and equity, offering insight into financial stability. o Application: Helps sports organizations assess assets like stadiums or equipment. Cash Flow Statement: o Reports cash inflows and outflows, crucial for understanding liquidity. o Example: Important for teams managing seasonal fluctuations in revenue. Key Insight: These statements provide a comprehensive view of financial health, necessary for sustainable growth and investment planning. 6. Economic Value Added (EVA) and Sports Organizations Economic Value Added (EVA): Measures the true economic profit of a company by considering the cost of capital. Formula: EVA = Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital) Importance: o EVA helps determine if an organization is creating value beyond operational costs. o Particularly useful for evaluating investment projects or high-cost initiatives in sports. Example: A sports club calculating EVA to determine the return from building a new training facility. 7. Key Financial Ratios in Sports Business Performance Profitability Ratios: o Gross Profit Margin: Measures profit after covering costs of goods or services. o Net Profit Margin: Reflects total profitability after all expenses. Liquidity Ratios: o Current Ratio: Assesses short-term financial stability. o Quick Ratio: Measures ability to meet short-term obligations without relying on inventory. Leverage Ratios: o Debt-to-Equity Ratio: Shows the extent of leverage, or how much debt the organization carries relative to equity. Efficiency Ratios: o Asset Turnover Ratio: Indicates how effectively assets generate revenue. Example: A sports organization monitoring its debt-to-equity ratio to maintain a healthy balance of debt and equity for stability. 8. Non-Financial Performance Indicators in Sports Customer Satisfaction: o Surveys, feedback forms, or social media engagement metrics that reflect fan satisfaction. Employee Satisfaction: o Assessed through surveys or turnover rates, indicating workplace culture and morale. Environmental Impact: o Reflects sustainability practices, such as reducing carbon footprint or managing waste. Innovation and Development: o Tracking new initiatives, products, or services introduced by the organization. Application: A stadium introducing eco-friendly practices, such as recycling programs, enhances brand value and appeals to environmentally conscious fans. 9. Challenges in Measuring Business Performance in Sports Subjectivity in Non-Financial Metrics: o Indicators like customer or employee satisfaction are subjective and harder to quantify. Inconsistent Revenue Streams: o Seasonality and dependence on event-driven revenue can create cash flow challenges. Impact of External Factors: o Economic downturns, crises, and changes in public interest can significantly impact performance. Resource Constraints: o Limited budgets may restrict data collection or implementation of advanced performance metrics. Example: A sports team facing revenue fluctuations due to off-seasons may struggle to maintain consistent performance metrics. 10. Using Performance Metrics for Strategic Planning Goal Setting: Setting SMART goals (Specific, Measurable, Achievable, Relevant, Time- bound) based on performance data. Resource Allocation: Directing funds and resources to areas that show the most promise or need. Continuous Improvement: Regular performance reviews to identify areas of improvement, adapt to industry changes, and enhance competitive advantage. Example: A sports organization using fan engagement data to increase marketing efforts in underperforming areas, aiming to boost attendance and loyalty. 1.2 The Impact of Crisis on Sport 1. Understanding Crisis Impact on the Sports Industry Definition of Crisis: A crisis is an unexpected event that disrupts the normal functioning of an organization or industry, often leading to financial, operational, or reputational challenges. Examples of Crises: o Economic Recession: Decreased consumer spending impacts ticket sales, sponsorships, and merchandise. o Public Health Crises: Pandemics like COVID-19 restrict gatherings, halting events and reducing revenue streams. o Natural Disasters: Hurricanes, earthquakes, or extreme weather can damage facilities and disrupt events. Key Point: Crises often lead to short-term operational disruptions and long-term strategic changes in sports organizations. 2. Impact of COVID-19 on the Fitness Industry Pre-COVID Landscape: o The fitness industry relied heavily on in-person memberships, classes, and events. COVID-19 Disruptions: o Gym closures and restrictions on gatherings led to revenue losses and forced many facilities to shut down. o Shift to virtual fitness options as gyms adapted to remote delivery models. Post-COVID Adaptations: o Hybrid models emerged, combining online and in-person offerings. o Increased demand for home fitness equipment and digital fitness subscriptions. Example: Many gyms introduced live-streamed classes, which became a new revenue source even as in- person memberships declined. 3. General Consequences of Crises on Sports Organizations Financial Impact: o Loss of revenue from ticket sales, sponsorships, and merchandise. o Increased costs due to health and safety compliance (e.g., sanitization, testing). Operational Impact: o Rescheduling or cancellation of events. o Reduced staffing and increased reliance on digital platforms. Stakeholder Impact: o Fans experience a loss of live events, affecting engagement. o Sponsors may reduce funding due to decreased visibility and economic downturns. Strategic Adjustments: o Diversification of revenue streams to reduce reliance on ticket sales. o Investment in digital and remote engagement tools. Example: The Tokyo 2020 Olympics were postponed, affecting athletes, sponsors, broadcasters, and the Japanese economy. 4. Crisis Management in Sports Organizations Preparation: o Establishing a crisis management plan to respond quickly. o Risk assessment to identify potential vulnerabilities (financial, operational, reputational). Response: o Communication strategies to maintain transparency with stakeholders. o Adjustments to operational procedures (e.g., implementing safety protocols). Recovery: o Long-term recovery planning, including rebuilding revenue sources and stakeholder relationships. o Evaluation of crisis response effectiveness for future improvements. Key Insight: Preparedness and adaptability are critical; organizations with flexible structures and diverse revenue sources tend to recover faster. 5. Examples of Crisis Management Strategies Diversification: Developing multiple revenue streams (e.g., virtual events, merchandise). Digital Transformation: Implementing virtual platforms for fan engagement, such as live- streaming and social media content. Financial Reserves: Building cash reserves to manage cash flow during crises. Fan Engagement Strategies: Offering virtual interactions, online games, and behind-the- scenes content to maintain fan loyalty. Example: Professional sports leagues held virtual fan experiences to keep audiences engaged during lockdowns. 6. Stakeholder Perspectives on Crisis Impact Providers: o Loss of income and operational disruptions. o Shift towards digital solutions to continue offering services. Customers (Fans/Athletes): o Limited access to facilities and live events. o Increased engagement with online platforms and virtual sports experiences. Economy: o Loss of local economic activity related to events (e.g., hotel, food, and retail). o Potential for recovery through increased investment in digital infrastructure. Example: Fans engaged with teams through social media when unable to attend games, maintaining a connection despite physical absence. 7. Financial Recovery After a Crisis Revenue Recovery Strategies: o Seeking alternative revenue channels like e-commerce, virtual memberships, or sponsorship of digital events. Cost Management: o Reducing overhead by streamlining operations or reducing non-essential expenses. Long-Term Financial Planning: o Establishing funds for crisis management and implementing cost-saving technologies. Public-Private Partnerships: o Collaborating with local governments or private investors to secure funding or reduce operational costs. Example: Some sports organizations received government aid to support employee salaries and cover operational expenses during COVID-19. 8. Evaluating Crisis Preparedness in Sports Organizations Key Areas of Evaluation: o Financial Health: Cash reserves and diversification of income. o Operational Flexibility: Ability to shift to remote or hybrid models. o Stakeholder Communication: Timeliness and clarity in crisis communication. Benchmarking Against Industry Standards: o Comparing crisis response to best practices in the industry for continuous improvement. Example: Organizations with pre-existing virtual platforms adapted more easily to the shift toward online engagement during the COVID-19 crisis. 9. Case Studies of Crisis Responses in the Sports Industry Tokyo 2020 Olympics Postponement: o Delays incurred additional costs and logistical challenges for the host nation, sponsors, and athletes. Virtual Sports Leagues: o E-sports and online leagues saw increased interest as traditional sports were temporarily halted, leading to new revenue streams. Adaptation by Gyms and Fitness Studios: o Pivoted to online classes and subscription-based fitness apps, which provided revenue stability during closures. Insight: Adaptable organizations that could quickly shift to digital engagement strategies fared better in maintaining financial stability and fan loyalty. 2 Planning in Sport 1. Essence of Planning Definition: Planning is the process of defining objectives and determining the resources, activities, and responsibilities needed to achieve them. Components of a Planning System: o Planning Process: The steps taken to develop a plan. o Subsystem Connections: How different planning areas (e.g., financial, HR) interrelate. o Time Schedules: Outlining deadlines and timeframes. o Responsibility Allocation: Identifying who is responsible for each part of the plan. Key Point: Planning provides direction, anticipates future needs, and allows for better resource allocation. 2. Benefits of Planning Directional Guidance: Establishes priorities and directs focus to critical issues. Future-Oriented Thinking: Encourages anticipation of resource needs, market opportunities, and potential threats. Coordination Improvement: Helps align activities across different levels of the organization. Enhanced Employee Engagement: Involving employees in planning leads to greater commitment and alignment with organizational goals. Comparative Basis for Control: Provides benchmarks to measure performance. Drawback: Planning can be time-consuming and may delay decision-making, requiring a balance between benefits and costs. 3. Purpose of Planning Curative Planning: Addresses existing problems. Preventive Planning: Anticipates potential issues to avoid them. Developmental Planning: Focuses on strengthening and leveraging organizational strengths. Stages in the Planning Process: Analysis: Assessing the current position of the organization and its environment. Goal Setting: Defining what the organization aims to achieve. Formulating the Plan: Creating a pathway to reach the defined goals. 4. Analyzing the Organization and its Environment Two-Step Analysis Process: o Observation: Identifying existing conditions and deviations (e.g., areas where the organization excels or faces challenges). o Diagnosis: Investigating the reasons behind strengths and weaknesses. Holistic Analysis Approach: o Internal Analysis: Examining the organization's strengths and weaknesses. o External Analysis: Identifying opportunities and threats in the environment. SWOT Analysis: This tool combines internal and external analysis, providing a comprehensive view of the organization’s position. Note: SWOT is often supported by other types of analyses like feasibility studies and economic impact analysis. 5. SWOT Analysis Definition: A strategic tool to analyze strengths, weaknesses, opportunities, and threats. Internal Factors: o Strengths: Internal capabilities that provide a competitive advantage. o Weaknesses: Limitations that hinder performance. External Factors: o Opportunities: External chances for growth or improvement. o Threats: External elements that could challenge success. Application in Sports: A coach might use SWOT analysis to assess team readiness and strategic opportunities for an upcoming season. 6. Methodological Approaches in Planning Feasibility Study: Determines whether a proposed project is achievable within the current context. o Example: Assessing the viability of hosting a sports event by analyzing operational, financial, and logistical factors. Economic Impact Analysis: Evaluates the economic influence of a project on local or regional communities. o Example: Measuring the economic benefits of building a new sports stadium on job creation and local business growth. 7. Setting Objectives Definition of Objective: The desired result or state the organization aims to achieve in the future. Vision and Mission: o Mission: The fundamental purpose of the organization. o Vision: The aspirational future state or goals. Example: A community sports center may have a mission to promote public health and a vision to expand facilities and increase member participation. 8. Characteristics of a Mission Statement Clearly communicates why the organization exists and what it seeks to accomplish. Key Components: o Core Purpose: Describes what the organization does (e.g., providing sports facilities). o Target Audience: Identifies who benefits from the organization’s services. o Values and Beliefs: Outlines the guiding principles of the organization. Example: A youth soccer league may have a mission to foster sportsmanship and teamwork in young athletes. 9. Types of Plans in Sports Organizations Strategic Plans: Long-term, high-level goals often set by top management. Tactical Plans: Medium-term goals that specify steps to achieve strategic objectives. Operational Plans: Short-term, day-to-day plans focused on the execution of specific tasks. Contingency Plans: Backup plans prepared for potential disruptions or unexpected situations. 10. Timeframes in Planning Short-Term Planning: Focuses on immediate tasks and goals, often within one year. Medium-Term Planning: Covers goals over one to three years. Long-Term Planning: Encompasses goals extending three or more years into the future. 11. Plan Development and Execution Setting Specific Goals: Ensuring each goal is clear, measurable, and achievable. Resource Allocation: Identifying the necessary resources, such as financial support, equipment, and personnel. Implementation Strategy: Developing a step-by-step approach for each goal. Monitoring and Adjustment: Regularly assessing progress and making adjustments as needed. Example: A sports club developing a plan to increase membership might allocate funds for marketing, set monthly member goals, and track sign-ups to evaluate progress. 2.1 Feasibility Study 1. Purpose of a Feasibility Study in Sports Projects Definition: A feasibility study evaluates whether a project idea is practical and viable within a specific context. Key Functions: o Helps answer whether to proceed with a proposed project. o Assesses the technical, operational, schedule, and financial feasibility of a project. Application in Sports: o Used to assess the feasibility of sports events, facilities, or other large projects. Example: Conducting a feasibility study for constructing a new sports complex to determine if it meets community needs and can be completed within budget. 2. Objectives of a Feasibility Study Determining Project Viability: Helps decide if the project is achievable and justifiable. Providing Decision-Making Information: o Offers stakeholders data on potential success, challenges, and risks. Identifying Alternatives: o Suggests possible project variations or alternative solutions. Supporting Funding Efforts: o Increases likelihood of securing financing by demonstrating thorough analysis. Example: A study for a new soccer stadium might explore alternative sites, financing options, and revenue models. 3. Types of Feasibility Analysis Operational Feasibility: o Determines if the project aligns with the organization’s operations. o Considers stakeholder needs, community acceptance, and environmental impact. o Example: Assessing if the community supports a new public sports facility. Technical and Organizational Feasibility: o Evaluates if the required technology, resources, and expertise are available. o Example: Checking if there is sufficient expertise and equipment to manage an international sports event. Schedule Feasibility: o Assesses if the project timeline is realistic. o Example: Ensuring a sports facility can be built in time for a major event. Economic Feasibility: o Analyzes if the project will be financially viable and generate adequate revenue. o Example: Calculating projected income from ticket sales, sponsorships, and concessions to offset costs. Tip: Economic feasibility often includes a cost-benefit analysis to determine financial justification. 4. Operational Feasibility: Key Questions User Needs: Is there demand for the project from the intended audience? Market Potential: Are there enough potential customers or attendees? Social Acceptance: Is the project acceptable to the community? Environmental Impact: Does the project comply with environmental regulations? Example: A study for a new sports center would assess community interest, project legality, and any possible resistance. 5. Technical Feasibility Resources and Technology: Are the resources and technology needed to complete the project available? Site Suitability: Is the project location appropriate? Human Resources: Does the organization have enough skilled staff, or is additional recruitment/training needed? Example: Determining if a new stadium has the required infrastructure support (electricity, water) and the right location to draw attendees. 6. Schedule Feasibility Project Deadlines: Can the project be completed within the desired timeframe? Scheduling Constraints: Are there potential delays due to recruitment, training, or supply chain issues? Consequence of Delays: Assessing the impact of not completing the project on time. Application: For a sports event, schedule feasibility ensures all preparations, including ticketing, promotions, and venue readiness, are completed by the event date. 7. Economic Feasibility Key Financial Questions: o Will the project generate sufficient revenue? o Do the financial benefits outweigh the costs? Components of Economic Feasibility: o Revenue Projections: Estimating income from ticket sales, sponsorships, and other sources. o Cost Estimation: Calculating capital, operating, and maintenance costs. o Risk Analysis: Identifying risks that may affect project costs, such as economic downturns or regulatory changes. Example: For a stadium, economic feasibility would include forecasting ticket sales, concession revenue, and maintenance costs. 8. Key Steps in Cost-Benefit Analysis for Economic Feasibility Financial Analysis Assumptions: Evaluate the reliability of all assumptions. Income and Expense Projections: o Consider different scenarios for revenue (e.g., high or low attendance rates). Investment Evaluation: o Calculate Net Present Value (NPV) and ROI to assess profitability. Break-Even Point: Determine how long it will take for the project to recoup its costs. Calculation Example: NPV of future revenues helps evaluate if the project will be profitable when adjusted for time value and risks. 9. Important Financial Metrics for Feasibility Studies Net Present Value (NPV): Calculates the present value of future cash flows. Return on Investment (ROI): Measures the profitability of the project. Break-Even Analysis: Determines when revenues will cover all costs. Sensitivity Analysis: Examines how project outcomes change with variations in key assumptions (e.g., ticket price changes). Example: A sports facility might use NPV to calculate if future revenue from events will justify the initial investment. 10. Benefits and Limitations of a Feasibility Study Benefits: o Provides a structured approach to decision-making. o Helps secure funding by offering a detailed risk and profitability analysis. o Identifies potential challenges early, allowing for better risk management. Limitations: o Can be time-consuming and costly to conduct. o Relies on assumptions that may change over time, potentially affecting accuracy. Key Insight: Feasibility studies provide critical insights but should be updated periodically to account for changes in the market or project scope. 2.2 Economic Impact Analysis 1. Purpose of Economic Impact Analysis in Sport Definition: Analyzing the economic effects of sports projects on local communities or broader regions. Why It’s Important: o Sports projects, like stadium construction or major events, often use public funds, so it’s crucial to evaluate both profitability and economic impact on the community. o Impact studies assist in decision-making and planning for both private investors and public policymakers. Examples of Application: Assessing how a new stadium affects local businesses. Evaluating the economic impact of hosting a major sports event like the Olympics on local employment and infrastructure. 2. Types of Economic Impacts Direct Impact: o Money directly spent by visitors, athletes, and organizations (e.g., ticket sales, lodging, and local dining). Indirect Impact: o The additional economic activity generated when local businesses receiving direct impact revenues spend on supplies and services. Induced Impact: o Occurs when employees of local businesses spend their wages within the community, creating further economic activity. Example: Hosting a sports event can lead to direct spending by visitors, which then generates additional economic activity as businesses purchase goods and services (indirect) and employees spend their wages (induced). 3. Theoretical Background of Economic Impact Analysis General Equilibrium Theory: o Describes how supply and demand interact across an economy’s various markets, eventually reaching a state of equilibrium. Keynesian Income Accounting: o Formula: Y = C + I + G + (Ex - Im) § Where Y is GDP, C is private consumption, I is investment, G is government spending, Ex is exports, and Im is imports. o This model highlights the relationship between income and spending within an economy and serves as the basis for understanding how spending on sports impacts the larger economy. 4. Process of Economic Impact Analysis Step 1: Understand the Background: Study the project and its environment thoroughly (e.g., the impact of a new sports facility in a community). Step 2: Define the Scope: Determine what impacts will be measured and the geographic area of interest (municipality, region, country). Step 3: Select the Methodology: Choose a method based on study goals (e.g., multiplier analysis). Step 4: Estimate the Effects: Calculate Direct, Indirect, and Induced effects. Step 5: Calculate Multipliers: Multipliers reflect how initial spending leads to additional economic activity. Step 6: Interpret and Make Recommendations: Based on findings, provide insights for policymakers or investors. Key Tip: Define the geographic scope and methodology based on the specific needs of the study to ensure accurate results. 5. Understanding the Local Economic Structure To conduct a thorough economic impact analysis, it’s essential to understand local economic relationships among: o Households: Consumers within the local economy. o Businesses: Local businesses that supply goods and services. o Institutions: Schools, hospitals, and government agencies that may influence or be influenced by sports projects. Example: When assessing the impact of a sports facility, consider how local businesses and households will interact with the facility and its visitors. 6. Using the Proper Methodology Economic Base Multiplier Approach: o Divides the economy into basic (e.g., export) and non-basic (e.g., local service) sectors. o Measures how changes in basic activities (like tourism) generate additional demand in non-basic sectors. o Drawback: It’s often difficult to categorize sectors accurately, which limits its application in sports. Input-Output (I-O) Models: o Developed by Leontief, these models describe purchasing patterns among industries and institutional spending patterns. o Multiplier Components in I-O Models: § Direct Effects: Immediate economic activities resulting from spending. § Indirect Effects: Inter-industry spending that supports direct activities. § Induced Effects: Spending by households as a result of direct and indirect effects. Application: I-O models are frequently used in large-scale sports events to estimate economic effects across a range of industries. 7. Estimating the Effects Using I-O Models Direct Effects: Spending directly attributed to the event or facility. o Example: Spending by attendees at local hotels and restaurants. Indirect Effects: Increased demand for goods and services by businesses supplying to the event. o Example: Local vendors supplying food and merchandise. Induced Effects: Additional spending as a result of increased income among local residents. o Example: Retail employees spending their income within the local economy. 8. Examples of Economic Impact Calculations Direct Visitor Spending: o Total number of visitors multiplied by average spending per visitor. Indirect Business Spending: o Additional demand experienced by businesses supplying services to event locations. Induced Household Spending: o The increase in household spending due to income earned by employees of businesses benefiting from direct and indirect effects. Example Calculation: A conference center might calculate visitor spending on lodging and dining, then assess increased demand at local suppliers. 9. Realistic Assumptions in Economic Impact Studies For an analysis to be valid, assumptions should reflect real-world conditions. o Example: Accurate estimates of visitor numbers, average spending, and regional economic conditions. Challenges with Assumptions: o Overestimating visitor spending or multiplier effects can lead to inflated projections. o Leakage: Money spent on imported goods/services doesn’t benefit the local economy directly. 10. Cost-Benefit Analysis in Economic Impact Studies Benefits Assessment: o Tangible: Direct economic benefits like jobs created, sales increases, and tax revenue. o Intangible: Community pride, improved reputation, and increased tourism. Costs Assessment: o Direct Costs: Construction, maintenance, and operating costs. o Opportunity Costs: Value of alternative uses for funds or land. Calculation Techniques: o Net Present Value (NPV): Calculates the value of future cash flows adjusted for inflation and risk. o Return on Investment (ROI): Measures profitability relative to investment costs. o Break-Even Analysis: Determines how long it takes for revenues to cover costs. Key Insight: Accurate cost-benefit analysis requires realistic assumptions and sensitivity testing to avoid over- or under-estimating potential impacts. 3 Organizing in Sport 1. Importance of Studying Organization Reasons to Study Organization: o Most people spend a significant amount of time in organizations (work, sports, family). o Organizations allow people to accomplish more collectively than they could individually. o Effective organizations improve efficiency and standard of living. Challenges: o People may feel limited by hierarchical structures and specialization. o Hierarchies can limit autonomy, raising questions about democracy and equality in organizations. 2. Organizational Structure Definition: The way relationships and roles are structured within an organization. Components of Organizational Structure: o Formal Structure: Deliberate and visible connections (e.g., manager-to-staff relationships). o Informal Structure: Unintended, often social connections (e.g., friendships between colleagues). Purpose of Structure: Ensures efficiency, clear responsibilities, and helps achieve organizational goals. Example: In a sports club, the formal structure may include roles like coach, assistant coach, and players, while informal relationships may include friendships among team members. 3. Static and Dynamic Elements of Organizations Static (Structural) Elements: Fixed aspects of the organization, like job roles and reporting lines. Dynamic (Process) Elements: Changing aspects, such as project teams or temporary committees, that allow flexibility and adaptation. Key Point: Successful organizations balance the stability of structure with the flexibility of dynamic processes. 4. Organizational Variables Variables determine an organization’s structure and are chosen based on situational factors. Key Variables: o Hierarchy of Authority: Levels of command and control. o Control Range: Number of employees a manager oversees. o Complexity: Number of hierarchical levels and job functions. o Formalization: Degree of rules and procedures. o Specialization: Extent of task division. o Standardization: Uniformity of procedures across departments. o Centralization: Decision-making concentration at the top. o Professionalization: Skill level required for job roles. Example: A national sports organization might have high formalization and standardization to ensure consistent performance across regions. 5. Types of Organizational Structures Mechanistic Structure: o Suited for stable environments with routine tasks. o High specialization, narrow control range, centralized decision-making, and vertical communication. Organic Structure: o Ideal for dynamic environments that require flexibility. o Low specialization, wide control range, decentralized decision-making, and horizontal communication. Visual Aid: Imagine a mechanistic structure as a rigid hierarchy (like a corporate office) and an organic structure as a flexible network (like a startup). 6. Situational Variables Influencing Structure The suitability of a structure depends on factors like environment, organization size, technology, goals, and employee skills. Environmental Suitability: o Stable Environment: Suits a mechanistic structure. o Unstable/Complex Environment: Suits an organic structure. Size: o Large Organizations: Mechanistic structures for control and consistency. o Small Organizations: Organic structures to allow flexibility. Technology: o Routine technology suits mechanistic structures, while non-routine or high- interdependence technology suits organic structures. Goals and Strategies: o Cost-Minimization Strategy: Mechanistic structure. o Differentiation Strategy: Organic structure. Employee Skill Level: o Skilled, creative employees thrive in organic structures. o Less skilled employees often require the direction of mechanistic structures. 7. Basic Organizational Levels: Micro and Macro Micro Level: Involves defining specific tasks and work processes for individual roles. o Work Processes: Break down tasks into specific jobs and responsibilities. o Work Positioning: Defining work tasks for each employee within specific roles. Macro Level: Involves creating departments and linking individual roles to larger organizational goals. Example: In a football club, the micro level defines player training schedules, while the macro level defines overall team management. 8. Breaking Down Work Processes Work processes can be broken down in several ways: o By Function: Purchasing, production, sales, etc. o By Process Phase: Planning, implementation, control. o By Subject: Specific product (e.g., fitness training, aerobic classes). o By Purpose: Primary tasks (core sports activities) vs. secondary tasks (administrative support). 9. Creating Departments and Divisions Department Creation: Organizing related work positions into coherent departments (e.g., Marketing, HR, Operations). Linear Diagram of Responsibility: o A tool to link work tasks to specific positions and responsibilities. o Useful for visualizing team structures and identifying organizational issues. Example: In a sports facility, departments might include Operations (handling daily activities) and Marketing (promoting memberships). 10. Criteria for Combining Work Tasks into Roles Workload Duration: Ensuring a role has a balanced amount of work. Task Complexity: Matching complexity levels to skills required for a specific role. Task Sequencing: Logical order of tasks to streamline processes. Team Integration: Combining tasks for teams that work closely together. Application: In a sports team, the head coach’s role would involve multiple tasks around strategy, training, and team management, requiring a well-defined and integrated role. 4 Leadership in Sport 1. Essence of Leadership Definition: Leadership is the ability to influence and motivate individuals or groups to achieve organizational goals. Importance in Sports: o Leadership is essential in setting direction, building team morale, and managing challenges. Core Attributes of Effective Leaders: o Determination: Persistence in achieving goals. o Professionalism: Maintaining high standards and ethics. o Adaptability: Adjusting strategies in dynamic environments like sports. Example: A coach may demonstrate leadership by motivating players through challenging seasons and adapting strategies based on team performance. 2. Leadership Styles Autocratic Leadership: Leaders make decisions unilaterally without team input. o Pros: Effective for quick decisions in high-stakes situations (e.g., last-minute game decisions). o Cons: Can lead to low team morale and lack of innovation. Democratic Leadership: Leaders encourage team participation in decision-making. o Pros: Fosters team cohesion and motivation. o Cons: Time-consuming, which can hinder quick responses. Laissez-Faire Leadership: Leaders allow team members to make decisions independently. o Pros: Empowers team members and promotes creativity. o Cons: Can lead to a lack of direction if overused. Application in Sports: In training, a coach might use democratic leadership to involve players in tactical decisions, whereas in a close game, an autocratic approach may be necessary. 3. Transactional vs. Transformational Leadership Transactional Leadership: Based on rewards and penalties. o Focus: Establishes clear expectations and rewards compliance. o Ideal For: Situations needing clear rules and structure. Transformational Leadership: Focuses on inspiring and engaging team members to pursue a shared vision. o Focus: Motivates team members beyond personal gain. o Ideal For: Teams needing long-term motivation and development. Example: A transformational coach focuses on personal growth, helping athletes reach their full potential by instilling a sense of purpose. 4. Motivational Theories in Sport Leadership Maslow’s Hierarchy of Needs: o Basic needs (physiological and safety) must be met before higher needs (social, esteem, self-actualization). o Application: A team manager ensures players' basic needs (equipment, safe environment) are met before focusing on esteem-building strategies. Herzberg’s Two-Factor Theory: o Hygiene Factors: Basic needs that prevent dissatisfaction (e.g., salary, job security). o Motivators: Factors that actively enhance job satisfaction (e.g., recognition, achievement). Vroom’s Expectancy Theory: o Motivation is based on expected outcomes: Expectancy (effort leads to performance), Instrumentality (performance leads to rewards), and Valence (value of rewards). o Application: A coach might use goal-setting to enhance player motivation by aligning effort with rewards. Memory Aid: Remember Maslow’s pyramid from basic to advanced needs, Herzberg’s split between hygiene and motivators, and Vroom’s “effort-performance-reward” chain. 5. Power in Leadership Types of Power: o Legitimate Power: Derived from a formal position (e.g., a coach’s authority). o Reward Power: Ability to offer incentives (e.g., extra playtime for performance). o Coercive Power: Ability to enforce penalties (e.g., benching a player for misconduct). o Expert Power: Based on knowledge or expertise (e.g., a coach known for advanced tactics). o Referent Power: Based on personal traits or charisma, inspiring followers through admiration. Example: A coach may use expert power to guide training and referent power to build respect among players. 6. Sources of Leadership Power in Sport Positional Power: Derived from the leader’s position within the organization (e.g., head coach). Personal Power: Stemming from the leader’s individual qualities, like expertise or charisma. Situational Power: Arising from specific circumstances, such as managing a crisis or handling high-stakes games. Application: A sports team captain might leverage positional power to enforce discipline and personal power to inspire teammates. 7. Situational Leadership Theory Suggests that effective leadership adapts based on the situation and team members' readiness level. Four Leadership Styles in Situational Leadership: o Directing: High direction and low support for unskilled team members. o Coaching: High direction and support for developing skills. o Supporting: Low direction but high support for skilled team members needing encouragement. o Delegating: Low direction and support for highly skilled, independent team members. Example: In a new season, a coach might direct new players closely but gradually shift to a delegating style as players gain experience. 8. Team Dynamics and Leadership Building Team Cohesion: o Task Cohesion: Focus on achieving common goals. o Social Cohesion: Encourages positive interpersonal relationships. Leadership Role in Team Dynamics: o Leaders foster a supportive environment, set norms, and resolve conflicts. Example: A basketball coach encourages social cohesion by organizing team-building activities, enhancing teamwork on the court. 9. Emotional Intelligence in Leadership Definition: The ability to recognize, understand, and manage one’s emotions and the emotions of others. Components: o Self-Awareness: Recognizing personal emotions and how they affect others. o Self-Regulation: Controlling emotional responses. o Motivation: Focusing on goals despite obstacles. o Empathy: Understanding others’ emotions. o Social Skills: Building relationships, managing conflicts, and encouraging cooperation. Application: A coach with high emotional intelligence can manage stress effectively during a game and support players through challenging moments. 10. Effective Communication in Leadership Verbal Communication: Clear instructions, motivational talks. Non-Verbal Communication: Body language, gestures, tone. Listening Skills: Actively listening to team members enhances trust and understanding. Feedback Techniques: o Constructive feedback that is specific, actionable, and focused on improvement rather than criticism. Example: A coach who communicates clearly and listens actively creates a more engaged and motivated team environment. 5 Control in Sport 1. Definition and Purpose of Control Control: The process of monitoring and adjusting activities to ensure that organizational goals are met. Purpose: Control helps maintain focus on objectives, track performance, and make corrections where necessary. Role in Sports Management: o Provides feedback on performance. o Ensures resources are used effectively and efficiently. o Identifies issues early for timely corrective actions. Example: A sports team may monitor players' training progress and adjust routines based on performance data. 2. The Control Process Step 1: Setting Standards: o Standards serve as benchmarks for evaluating performance. o Standards can be quantitative (e.g., revenue targets) or qualitative (e.g., customer satisfaction). Step 2: Measuring Performance: o Collecting data through various methods such as reports, observations, or metrics. o In sports, performance can be measured through statistics, feedback, or visual assessments. Step 3: Comparing Performance to Standards: o Performance data is compared to set standards to identify deviations. o Example: Comparing a team’s game statistics to seasonal performance goals. Step 4: Corrective Action: o Taking steps to improve performance or address issues when there is a deviation. o Types of corrective actions include changes to strategies, reallocation of resources, or additional training. Exam Tip: Be prepared to outline each step in the control process and apply them to a sports management scenario. 3. Types of Control Feedforward Control (Preliminary): o Focuses on inputs and anticipates issues before they occur. o Example: Screening athletes’ fitness levels before training to prevent injuries. Concurrent Control (Real-Time): o Monitors activities as they happen to make immediate adjustments. o Example: A coach providing real-time feedback during a game. Feedback Control (Post-Action): o Evaluates completed activities to improve future performance. o Example: Analyzing game footage to adjust future strategies. 4. Levels of Control in Organizations Strategic Control: o Ensures that the organization’s overall strategy aligns with its mission and objectives. o Typically involves top management and focuses on long-term goals. Tactical Control: o Concerned with implementing specific plans or initiatives to achieve strategic goals. o Managed by mid-level management with a focus on medium-term goals. Operational Control: o Focuses on day-to-day operations and activities. o Ensures that tasks are performed efficiently at the departmental or individual level. Example: A sports facility manager might use operational control to ensure smooth daily operations, while senior management uses strategic control to evaluate the facility's role in expanding community outreach. 5. Types of Control Systems Budgetary Control: o Involves setting budgets and monitoring expenses to stay within financial limits. o Ensures resources are allocated effectively without overspending. Financial Control: o Focuses on financial ratios and performance indicators, such as profit margins and return on investment. Quality Control: o Ensures that products or services meet established standards. o In sports, this may involve maintaining facilities, equipment standards, or training quality. Inventory Control: o Manages the stock of necessary resources, such as equipment, supplies, or merchandise. Example: A budgetary control system in a sports team might track expenses for equipment and travel to ensure they stay within allocated funds. 6. Factors of Effective Control Timeliness: Control should be frequent enough to catch issues early. Accuracy: Data used in control processes must be precise. Consistency: Standards and methods of control should remain stable to provide reliable comparisons over time. Flexibility: The control system should adapt to changes in the environment or organization. Key Insight: Effective control balances timeliness and flexibility to adapt quickly without compromising accuracy. 7. Control Challenges in Sport Management Over-Control: Excessive monitoring can reduce motivation and creativity, particularly in highly skilled or independent team members. Under-Control: Insufficient monitoring can lead to inefficiencies, especially in dynamic settings like sports events. Complexity: As sports organizations grow, control systems must manage more data and diverse functions. Resistance to Control: Employees or athletes may feel micromanaged, leading to resistance. Example: Too much control in training might demotivate experienced athletes who feel they don’t have enough autonomy. 8. Control Techniques in Sports Performance Appraisal: o Regular assessment of employees or athletes based on performance criteria. o Can involve quantitative data (e.g., stats) or qualitative evaluations (e.g., attitude). Management by Objectives (MBO): o Sets specific goals agreed upon by management and team members. o Encourages accountability and provides clear benchmarks for success. Key Performance Indicators (KPIs): o Specific metrics used to evaluate the success of an activity. o In sports, KPIs might include win-loss records, fan engagement, or revenue growth. Application: A basketball team might use performance appraisals to evaluate player development and set improvement goals based on stats. 9. Reporting Methods in Control Written Reports: Provide detailed documentation, often used for formal assessments. Oral Reports: Useful for quick feedback, especially in real-time situations. Graphical Reports: Visual summaries, such as charts or graphs, to quickly assess performance trends. Example: After each game, a coach might receive a graphical report summarizing team performance metrics, which helps in identifying trends or areas needing improvement. 10. Developing a Control System in Sport Identify Key Areas for Control: o Establish what needs monitoring (e.g., player health, budget). Set Standards: o Define clear, measurable standards for performance. Establish Monitoring Systems: o Implement tracking tools, such as performance metrics or financial software. Evaluate and Adjust: o Regularly assess the effectiveness of control measures and adjust as needed. Example: A sports academy might develop a control system focused on academic and athletic performance, with monthly evaluations and tailored support for students falling behind. STUDIES: 6 Sport Facility Feasibility Study: Assessment, Value, and Demand Purpose: This study evaluated the feasibility of an indoor sports facility near an urban area, focusing on market demand, poten:al growth, and investment value. Key Components: o Market Overview: Analysis of local demographics, employment, and economic indicators. o Market Demand Survey: Evaluated the demand from prospec:ve facility users and local sports organiza:ons. o Financial Analysis: Considered poten:al revenue streams, opera:onal costs, and financial sustainability. Conclusion: The feasibility study recommended the facility as a viable investment, emphasizing poten:al to aBract regional users beyond the immediate local market due to limited local incomes 7 A Theoretical Comparison of the Economic Impact of Large and Small Events Objec?ve: This ar:cle examined the economic impacts of large versus small sports events, proposing a model for assessing event impact based on resource needs. Key Insights: o Event and City Size Rela?onship: Defines events and ci:es by the resources they demand and supply, respec:vely. o Small vs. Large Events: Smaller events are more likely to produce posi:ve net economic benefits, par:cularly in smaller ci:es where resources may be limited. o Policy Recommenda?on: Hosts should priori:ze mul:ple smaller events over large ones for consistent posi:ve local impact. Conclusion: Smaller events, due to manageable resource demands and local engagement, may offer beBer economic returns than large, resource-intensive events. 8 Destigmatization of Disability in and Through Sport Focus: This study explored how sports adver:sing featuring disabled athletes influences public aJtudes and reduces s:gma through emo:onal and social engagement. Key Findings: o Role of Emo?ons: Social sharing of emo:ons (e.g., empathy and admira:on) empowers both athletes and consumers, fostering connec:ons that reduce s:gma. o Empowerment and Social Media: Disabled athletes and fans share empowering narra:ves on plaMorms like YouTube, contribu:ng to broader des:gma:za:on. Conclusion: Adver:sing in disability sports can play a vital role in reducing s:gma by fostering shared emo:onal experiences that promote inclusivity and social change. 9 Amateur Sports Market in Chico, California: Needs Assessment and Feasibility Study Objec?ve: This study assessed the demand and feasibility of new sports facili:es in Chico, California, focusing on infrastructure that could boost sports tourism. Methodology: o Community Engagement: Consulta:ons with stakeholders, including sports groups, business leaders, and government officials. o Market Demand and Cost-Benefit Analysis: Evaluated poten:al for user demand, facility types (e.g., aqua:cs center, mul:purpose fields), and economic impact. Recommenda?on: The study supported developing new facili:es, ci:ng the poten:al to aBract regional visitors, especially for tournaments. It highlighted the need for partnerships to ensure financial sustainability. 10 Multi-Use Sport and Event Centre in Peterborough: Feasibility Study Purpose: This feasibility study aimed to assess the development of a mul:-use sports and events center in Peterborough. Key Considera?ons: o Facility Scale and Design: Recommended a sea:ng capacity increase and mul:-use layout to aBract diverse events (sports, concerts). o Community and Economic Impact: Focused on the ability to aBract both commercial events and community sports, genera:ng local economic benefits. o Implementa?on Strategy: Suggested a phased approach to construc:on and opera:on, with considera:ons for long-term growth in demand. Conclusion: The proposed center was posi:oned as a crucial investment for economic s:mula:on and community engagement, mee:ng both local and regional needs.