The Sp rts Market

1. The Sp rts Market Chapter 2 Sections 2.1: Sports Marketing Profile 2.2: Categories of Sports

2. SPORTS MARKETING PROFILE Sports Marketing: all of the marketing activities designed to satisfy the needs and wants of sports consumers. Has 2 majorcomponents: • The marketing of sports • Marketing through sports

3. The promotion of the Super Bowl, the Indianapolis 500, and the Olympics through television or radio advertisements is considered the marketing of sports. On the other hand, when Nike, Gatorade, and Goodyear promote their products by using a connection to sports, such as a sports personality as a spokesperson, those companies are marketing through sports. Example of 2 Components

4. Ranking Sports

5. Brief History • The beginnings of sports marketing can be traced through several events and people. • Your task: • Look up the following and give the significance to the history of sports marketing. • List the event and significance in your notebook.

6. Events in the History of Sports Marketing • Longest running endorsement deal in history. • What company? With who? When did it start? When did it end? • William “Bill” Veeck • Explain what he did to change the atmosphere at baseball games. • What was one of his most famous promotions in August of 1951? • Mark McCormack • What company was he the founder of? • Who was one of the first professional athletes (he signed) that associated with corporations in a promotional role? (Hint: Famous golfer).

7. Events in the History of Sports Marketing • Longest running endorsement deal in history. • What company? Wilson Sporting Goods • With who? Professional Golfer, Gene Sarazen • When did it start? 1923 • When did it end? 1999 – When he died

8. Events in the History of Sports Marketing 2. William “Bill” Veeck • Explain what he did to change the atmosphere at baseball games. He introduced the concepts of player names on jerseys, ballpark giveaways, exploding scoreboards (electronic scoreboards), and Wrigley Field’s ivy-covered walls. • What was one of his most famous promotions in August of 1951? He hired stage performer Eddie Gaedel who was about three and a half feet tall and weighed 65 pounds. Wearing a St. Louis Browns uniform with the number 1/8 Gaedel jumped out of a cardboard birthday cake and then stepped up to home plate to bat.

9. Events in the History of Sports Marketing 3. Mark McCormack* • What company was he the founder of? International Management Group (IMG) • Who was one of the first professional athletes (he signed) that associated with corporations in a promotional role? (Hint: Famous golfer). Arnold Palmer • *Was named Most Powerful Man in Sports by Sports Illustrated in 1990. • Visit IMG’s Web Site at: http://www.imgworld.com/

10. Other Sports Marketing Firms • A rising player in the sports marketing industry is rEvolution, a Chicago-based sports marketing and media agency who in 2005 announced a strategic partnership with the National Collegiate Athletic Association (NCAA) to offer unique hospitality to the semi-final and final games of the 2006 NCAA Division I Men’s Basketball Championship. • This marked the first time in the event’s history the NCAA offered "The Tournament Club," a unique and convenient hospitality venue adjacent to the RCA Dome. • http://www.revolutionworld.com/

11. What you will learn in this section: To identify the different categories of sports Differentiate between amateur sports and professional sports Discuss the significance of international sports Explain the significance of women’s sports Key terms Amateur athlete NCAA Professional athlete Title IX Extreme sports Section 2: Categories of Sports

12. Variety of Sports • Sports and sporting events can be classified into several categories, including amateur, high school, college, and professional. This section will explain the categories of sports and how each one varies and applies to sports marketing. • These categories will give you an understanding of how a sports marketer can make the most of the different and specific characteristics

13. AMATEUR SPORTS and RECREATION • The Society of Seniors (SOS) is an organization that provides competitive tournaments on fine golf courses for its more than 700 members. Its members are the best senior amateur golf players in North America. • An amateur athlete is someone who is not paid, but plays for the enjoyment and challenge. Visit: http://www.societyofseniors.com/home/

14. AMATEUR SPORTS and RECREATION • A high school, college, or any other type of athlete, including a recreational player, is considered an amateur athlete. • All types of amateur sports are growing in popularity. • Amateur sporting events attract a large number of fans, attention, and money. • Many communities have youth leagues, senior leagues, and a variety of other athletic organizations that attract people who have a strong interest in participating or watching a particular athletic event.

15. AMATEUR SPORTS and RECREATION • Think and Respond: • Why do you think some people have an interest in watching amateur athletes perform instead of professional athletes?

16. AMATEUR SPORTS and RECREATION • Young amateur sports • Youth league basketball tournaments in major cities attract many people. Interest may come from the players’ families and friends to potential sponsors, such as soft-drink and health care product manufacturers or local businesses. • In addition, there are booths from sponsors and banners hanging around the court aiming to attract a target market to their products. • Colleges and universities may be represented at these types of tournaments because they know that amateur events attract teenagers who might be interested in attending their schools.

17. The Gus Macker • “America’s Original 3 on 3 Tournament” • Who might some national sponsors be? • Who might some local sponsors be for the tournament that runs in Buffalo? • Visit: http://www.macker.com/ to find out who the national sponsors really are and check out the history of this famous tournament!!

18. AMATEUR SPORTS and RECREATION • Recreational Sports • Boys and Girls Clubs of America • YMCA and YWCA • One of the biggest and oldest amateur sporting organizations, the Amateur Athletic Union (AAU), was established in 1888 as a nonprofit organization to encourage children and adolescents to explore sports that they may not otherwise have an opportunity to play. • Visit: http://www.aausports.org/ to visit the AAU’s home page.

19. AMATEUR SPORTS and RECREATION • Recreational Sports also include a variety of nontraditional events that, though noncompetitive, are classified as sports. A few popular examples are: • Scuba diving • Rollerblading • Skydiving • Rock climbing • These recreational events inspire people to improve their skills and exercise their physical abilities while enjoying recreational time.

20. High School Sports • Another form of amateur sports. • Many communities rally around the success of their high school team. • Some people debate the issues involved with schools spending money and energy in support of sporting events. • Because of these controversies, high school organizations such as the National Federation of State High School Associations (NFHS) set guidelines and make sure that students benefit from a balanced educational and athletic experience.

21. High School Sports • Location Considerations Regional influences affect the popularity of sports in the U.S. In the southern states, high school football games take on the importance of college or professional football. In central states and in New England, the sport of ice hockey interests many communities. Visit: http://www.texashsfootball.com/

22. High School Sports • In a 75-100 word response: How does marketing of amateur sports differ from that of professional sports? • Consider: • Funding • Popularity • Size • Ages of people involved at the different levels • Also Remember: • Marketing includes: • Price • Product • Promotion • Distribution

23. E C O N O M I C I M P A C T • A winning college team has economic implications not only for its school but also for the community, region, and state. • A college community can benefit from the success of its primary sports program through revenue earned from supporting fans. The home city will benefit from the increased patronage of local businesses and a growth in jobs.

24. B U D G E T S • At large universities the types and number of sports offered are greater because the student population is larger. • For example, at large universities, sporting events such as rowing, water polo, and fencing become highly competitive. • In most cases, these schools also have large budgets. • Ohio State University’s athletic budget is one of the highest in the NCAA each year. The budget provides the university with the best possible facilities and support staff to encourage winning teams. • Visit: http://www.ohiostatebuckeyes.com/

25. The National Collegiate Athletic Association (NCAA), is a national organization that governs college athletics and oversees important decisions pertaining to athletics (similar to the NFHS for HS students). • The guidelines and rules of the NCAA are posted on its Web site at www.ncaa.org

26. R U L E S • As an example of an NCAA rule, players are not allowed to accept any form of payment from a school or from companies. • This kind of rule encourages legitimate, amateur competition without unfair influence from businesses or individuals. • The NCAA regulates all collegiate athletics, including the marketing of sporting events. • Ifrules and regulations are broken, the NCAA has the power to eliminate teams from playing for an entire season and can terminate an athlete’s college scholarship.

27. R U L E S • High school athletes can be offered athletic scholarships from major universities, but they can not be offered any additional financial rewards or other benefits to attend a university. • Alumni and coaches who become overzealous during the recruitment process jeopardize the integrity of their university. • Examples of recruitment violations include paying recruits bribes, giving incentives to families or recruits, and altering grade transcripts to make athletes eligible to play. • Examples of NCAA punishments also may include shutting down programs with the worst violations.

28. D I V I S I O N S • To keep schools on a competitive level, the NCAA created divisions determined by the characteristics of the school and the level of competitiveness of the athletes. • For example, schools are ranked as Division I, Division II, or Division III based on student population, financial stability, and player ability. • The NCAA ranking has an important economic impact on schools and communities, because the ranking of sports draws larger crowds to games. • Higher divisions draw more spectators. As more people are attracted to a particular sporting event, there is more opportunity for the university to benefit from name recognition. COMPLETE THE DIVISIONS VENN DIAGRAM!!

29. Perhaps the most heavily marketed collegiate sporting event is the NCAA Division I Men’s Basketball Championship tournament, known as March Madness, where one loss by a team means elimination from the tournament. • During the event, marketing efforts by competing schools are intense. Each school uses this time to get its name known and to attract potential markets. Potential markets can be athletic fans wanting to buy school-brand apparel, or they can be prospective students interested in attending the school.

30. T E A M R A N K I N G S (Football ) • Sports magazines and nationally recognized sports enthusiasts determine college team rankings based on past team performance, talent, and team schedules. • Preseason rankings influence the game schedules of the major television networks. Televised games mean more revenue for the team and its university. • High BCS (Bowl Championship Series) standings, equate to big money and determine which teams play in the national championships. Three components are used to determine the BCS rankings • The USA Today Coaches’ Poll • The Harris Interactive College Football Poll • An average of six computer rankings from well-known sports statisticians.

31. Are You Eligible to Participate in NCAA Athletics??? • Open the following document to view some quick rules for prospective student athletes. • http://www1.ncaa.org/eprise/main/Eligibility_Center/QuickReferenceSheetforIEStandards-8-28-07.pdf • You will also have to visit: http://www.ncaa.org/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLN4j3CQXJgFjGpvqRqCKOcAFfj_zcVH1v_QD9gtzQiHJHRUUAc0tpTA!!/delta/base64xml/L3dJdyEvUUd3QndNQSEvNElVRS82XzBfTFU!?CONTENT_URL=http://www1.ncaa.org/membership/membership_svcs/eligibility-recruiting/faqs/initialeligibility.html • On the hand out, fill in information for what is needed to participate in Division I and Division II athletics.

32. Division I If you have a GPA of 3.0, what must your SAT score be? 620 If you have an SAT score of 820, what does your Core GPA need to be? 2.5 If you have the minimum GPA, what do you need to get on the SAT to play Division I sports? 1010 Number of Core Courses Required: 16 Number of Semesters you have in High School to complete the Core Courses: Must complete in the first 8 semesters of high school Division II Minimum SAT Score:820 Minimum ACT Score:68 Grade Point Average Minimum Requirement: 2.00 Number of Core Courses Required:14 When must you complete your Core Courses by? By the time you enter as a full time student into college or university. NCAA Freshman Eligibility Standards Name:

33. COMPENSATION FOR ATHLETES • Currently, athletes receive scholarships and grants for their college education. They do not have enough time in the day to work at part-time jobs for additional income. Some of the best young college athletes are tempted to sign multimillion-dollar contracts with professional sports organizations before graduating from college. • Once a college athlete signs with an agent to help find and negotiate a deal with a professional team, he or she is no longer eligible to participate in college sports. • In some states, proposals have been brought before the state legislature to pay college athletes.

34. COMPENSATION FOR ATHLETES • Do you feel that collegiate athletes should be compensated for their time (besides scholarship money) and rewarded for the money they bring to their programs? • Explain your reasoning.

35. WOMEN'S SPORTS

36. WOMEN'S SPORTS • The status of women in sports has advanced in the 20th century and especially in the last 20 years, opening up new markets for sports, with more progress ahead. As early as 1932, Olympic gold medalist Mildred “Babe” Didrikson Zaharias not only excelled at most sports, including track, golf, basketball, softball, boxing, and others, she was also an impressive sports promoter. • She had a signature line of golf clubs, wrote books, and made personal appearances. • Playing at the amateur and professional levels, Zaharias’s all-around skills inspired women and men, as well as sports marketers, at a time when few women received public recognition for their athletic abilities.

37. Mildred “Babe” Didrikson Zaharias • Use the Internet to find the answers to the following questions. • What sport did she participate in during the 1932 Olympics? • How many medals did she win? • Why was her nickname “Babe”? • What did she do during the 1932 AAU Championships that was so amazing? • What event did she compete in in January of 1938? • Why was this unique?

38. On June 23, 1972, the enactment of Title IX, the Education Amendment, advanced girls’ participation in sports. Title IX is a law that bans gender discrimination in schools that receive federal funds. As a result, over a 20-year period, the number of girls participating in high school sports programs has increased nearly tenfold. What is Title IX? http://espn.go.com/espnw/title-ix/8022724/sporting-chance WOMEN'S SPORTS

39. Title IX Video Clips • http://licensetothrive.tv/mailandmore/udr/sch/index.asp • http://licensetothrive.org/video http://espn.go.com/espnw/title-ix/8088693/julie-foudy http://www.kicklikeagirlmovie.com/

40. WOMEN'S SPORTS

41. WOMEN'S SPORTS SOME STATISTICS • In 1970-71, only 294,000 high school girls competed in interscholastic sports in the United States. • By 2005-2006, more than 2,900,000 girls were participating. • Prior to Title IX, few colleges offered sports scholarships for women. • In 2005-2006 there were 2.9 million girls participating in high school athletics. They made up 41% of high school athletes, even though they represent more than 49% of the high school student population. • In 2005-2006 there were 171,000 women participating in college athletics. Women comprise 43% of all collegiate athletic opportunities even though they represent 55% of the college student population. • Each year male athletes receive $137 million more than female athletes in college athletic scholarships at NCAA member institutions. • Women in Division I colleges are over 50% of the student body, but receive only 32% of athletic recruiting dollars and 37% of athletic operating budgets. • In 2001-02, only 44% of coaches of women's teams were women. In 1972, the number was over 90 percent.

42. A key player in the advancement of women’s sports was tennis star Billie Jean King. She dominated women’s tennis for nearly two decades, winning her first Wimbledon title in 1962, and went on to win 20 Wimbledon titles. In 1972, Sports Illustrated named Billie Jean King “Sportswoman of the Year,” the first time the annual sports award was given to a woman. Billie Jean King

43. Billie Jean King • In 1973, she challenged male tennis professional Bobby Riggs, who had publicly proclaimed that no woman could beat him. • The event was dibbed “The Battle of the Sexes.” • King defeated Riggs, and remained a significant figure in women’s sports history.

44. WOMEN'S SPORTS • Since the 1970’s, other successful women in modern-day professional sports have emerged. • Professional sports organizations have also experienced breakthroughs. • For example, in 1991, the Washington Wizards named Susan O’Malley as the first female president of an NBA franchise.

45. WOMEN'S SPORTS • Women’s amateur and professional sports organizations have also taken substantial steps to involve women in sports. • For example, on April 24, 1996, the NBA Board of Governors approved the formation of the Women’s National Basketball Association (WNBA). - WNBA teams began to play in June of 1997. - Since then, the WNBA has grown and produced a variety of new basketball superstars.

46. MARKETING Women's Sports • Sports marketing has seriously neglected women’s sports until recently. While many fans would tune in twice a year to watch women’s figure skating and women’s gymnastics on TV, these competitions were mostly amateur. • Although marketing was involved, it was limited.

47. When the U.S. Women’s Soccer Team won the World Cup Soccer Championship in 1991, it barely made the sports pages. Eight years later, due to its continued success and international popularity, fans closely watched the Women’s U.S. team win the 1999 championship. Women as much as men have made this sport popular in the United States. 2007 World Cup MARKETING Women's Sports

48. Lisa Leslie and Tina Thompson are superstars in the WNBA. The teams and their starts have a strong following, averaging 7,739 spectators per game during the 2007 season. The WNBA’s web site keeps fans up to date on players, sponsors, schedules, and the latest merchandise for sale. Visit WNBA home page MARKETING Women's Sports

49. MARKETING Women's Sports • Salary Inequities • Women’s professional sports are becoming increasingly popular. • However, salaries are grossly inequitable in comparison to male professional athletes’ pay. • ABC Sports and ESPN televise WNBA regular –season and playoff games. THE NBA Average Salary = $5,300,000 Top Salaries = $22,000,000 THE WNBA Average Salary = $50,000 Top Salaries = $80,000 Rookie Salaries = $30,000 Veteran Salaries = $42,000

50. The WNBA Phoenix Mercury is getting a significant in-state media boost due to an Arizona Department of Health Services campaign that uses the team to promote its anti-tobacco message. The ad campaign, tagged, “Inhale Life – It’s a Girl Thing,” is part of a three-year sponsorship that the Department of Health Services signed with the Mercury organization. MARKETING Women's Sports