Sports and Entertainment Marketing © Thomson/South-Western Textbook Assignment: Encore pg. 41 1. B...
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Transcript of Sports and Entertainment Marketing © Thomson/South-Western Textbook Assignment: Encore pg. 41 1. B...
Sports and Entertainment Marketing© Thomson/South-Western
Textbook Assignment: Encore pg. 41
1. B – Thunderstorm
2. A –
1. Gain or Loss Risks
2. Insurable Risks
3. Controllable Risks
3. Make the facility is well-lit, has adequate fire exits, staffed with security personnel, employees have been trained for emergency situations.
Chapter 2Slide 1
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 2
Lesson 2.3
Business Ethics
Learning Targets I can define ethics.
I can discuss the impacts of unethical behavior.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 3
Terms Ethics Principles
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 4
DO ETHICS COUNT?
Ethics a system of deciding what is right or wrong in a
reasoned and impartial manner.
Note - All businesses should be conducted with integrity, trust, and fairness.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 5
Ethics and Character Matter
Principles high standards of rules and guidelines.
Character Development a progression in behavior - advance from childish
behavior to mature behavior (it takes time).
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 6
Common Principles in our society? Don’t Kill Don’t Steal
Common Principles for NCAA? Can’t except money from boosters/agents Can’t bet on games
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 7
BUSINESS BEHAVIOR
People (businesses) should act ethically while pursuing a profit.
Athletes (teams) should act ethically while pursuing a victory.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 8
Seeking an Advantage
Dilemma - acting ethically when you observe others who receive a benefit from acting unethically.
PED’s (Performance Enhancing Drugs) Corked Bats Paying or giving gifts to recruits
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 9
Controlling Bad BehaviorProfessional Sports - AthletesFinesReduced Playing TimeSuspensions
Game(s) Season Lifetime
College Sports - AthletesReduced Playing TimeSuspensions
Game(s) Season Loss of scholarship
Professional Sports - FranchiseFinesSalary Cap HitsFiringsRemoval of Owner(s)
College Sports - SchoolFinesReduction of ScholarshipsSuspensions
Televised GamesPostseason PlaySeason
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 10
Being Bad Can Affect Profits Only fans can really influence the behavior of ethically challenged
athletes/celebrities/leagues by taking a stand;
Stop buying Tickets Products (Jersey, Apparel, and items from major Sponsors)
Voice displeasure Letters Emails Blogs Protest
NOTE – if fans do not take a stand the bad behavior wont change because profit has not been affected.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 11
Effective and Ethical Good decisions are both ethical and effective.
Good decisions are the right choices for the long term.
Athlete who takes steroids - Short Term – helps them perform at high level and perhaps helps team win Long Term – player will eventually encounter serious health problems
Teams that establish core values and demand that players act accordingly will be the big winners in the long run.
Sports and Entertainment Marketing© Thomson/South-Western
Textbook Assignment:
Encore pg. 46 Answer Questions: #1, #2, and #4
Email your responses to the questions.
Chapter 2Slide 12
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 13
Lesson 2.4
Financial Analysis
Learning Targets
I can discuss sources of funding and revenue streams for sports and entertainment businesses.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 14
Terms Return On Investment Forecast Budget Balance Sheet Income Statement
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 15
IT TAKES MONEY
Profit is the primary purpose of sports and entertainment marketing.
#1 Goal of any business is to MAKE A PROFIT.
#1 Goal of any team is to WIN.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 16
Finding Funding Funding for an event is typically provided by investors.
Example Costs – Celebrity Golf Pro-Am Salaries Promotions/Advertising Player Fees Course Fees Event Workers
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 17
income from a venture that is distributed to investors.
Payment investors receive for providing financial backing (typically more $ than what they invested).
Initial Investment + Interest Initial Investment + Agreed Upon $ Amount Initial Investment + Interest + Agreed Upon $ Amount
Return On Investment
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 18
Money Sources Funds to repay investors are raised through Revenue Streams;
ExamplesTicket Sales
Pre-Game Sales and Season Tickets
Broadcast Rights TV and Radio
Licensing Merchandise and Apparel
Facilities signage, parking fees, luxury boxes, concessions
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 19
WHERE IS THE MONEY?
Forecast a plan/report that predicts the expenses to be
incurred and the revenues to be received.
NOTE – must always do your homework if you want a successful business/team.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 20
Budgeta plan for how available funds will be spent.
Solid budgets list specifics – Income (money coming in or revenue streams) Expenses (money going out).
Sole purpose of a budget is to control costs so they do not exceed the funds available.
Helps businesses/people to allocate money and not spend more than they have.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2Slide 21
Financial Statements Balance Sheet
shows net worth at a specific point in time.
(Assets – Liabilities = )
Assets = items of value, cash, property, equipment.Liabilities = amounts owed for purchases made on credit and loans.
Income Statement
shows revenues and expenses for a specific period of time.Reveals company’s profit or loss.
Both are used to show investors and creditors that the business/team is being managed properly and worthy of funding.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 2 - Textbook Assessment
Pg. 52
Questions: #1 – #10
Pg. 53
Questions: #15, #17 and #18
Due 10/22 – Start of Class
Chapter 2Slide 22