Sports & Entertainment Marketing Unit Three Outline, 2014-15 School Year
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- OBJECTIVES
- LESSONS
- KEY TERMS
OVERVIEWUnit three provides an introduction to the basic principles that create the foundation for the business of sports and entertainment. Students will explore the many segments that make up the industry and gain an understanding of how sports and entertainment organizations generate revenues in an effort to achieve profitability. OBJECTIVES1) Define and provide examples of sports and entertainment industry segments 2) Explain the concept of revenue streams and why they are important to an organization 3) Understand the general financial structure of a sports franchise 4) Recognize how entertainment companies generate revenue 5) Define ancillary products 6) Define and understand the importance of product placement 8) Provide an example of how an organization may track shifts in industry trends 9) Understand the concept of economic impact LESSONSLesson 3.1 Industry Segments Lesson 3.2 The Financial Structure of Sports Business Lesson 3.3 The Financial Structure of Entertainment Business Lesson 3.4 Tracking Industry Trends Lesson 3.5 Economic Impact KEY TERMSAncillary Products Economic Impact Industry Segment Product Placement Revenue Stream Royalties Lesson 3.1 Industry Segments There are many segments of the sports and entertainment business industry Industry segments refer to a grouping of similar types of products or services offered to consumers by businesses within the same industry Sports business segments Sports tourism Sporting goods Sports apparel Amateur and Olympic sports High school athletics Collegiate athletics Professional sports Motor Recreation Outdoor sports Health clubs and fitness facilities Sports marketing firms Event management Sports-governing organizations Venue and facility management Extreme or “action” sports Entertainment business segments Filmed entertainment Television networks (broadcast and cable) Television distribution (station, cable and satellite) Recorded music Video games Radio services Internet Publishing sector (newspapers, books, magazines) Digital media services Broadcasting-satellite services Theatre Casinos and gaming Fine arts Theme parks and amusement parks  * LESSON 3.1 * ACTIVITY IDEA *
Ask students to, either individually or as a class discussion, identify a specific product for each of the segments listed above. Lesson 3.2 The Financial Structure of Sports Business  * TEACHER’S NOTE *
To listen to a Freakonomics podcast discussing the topic of the business of March Madness, click here. The podcast discusses a number of concepts that tie in with unit 3’s core objectives. * TEACHER’S NOTE *
To see a breakdown of all the collegiate athletic conference media deals, consider distributing the handout marked “Lesson 3.2 student handout – collegiate athletic conference media deals” now. The file can be accessed from your CD-ROM or online. Team Sports Professional team sports are finding it increasingly difficult to achieve financial success and turn a profit In 2012, Forbes reported that more than 50% of NHL franchises suffered financial losses the previous year (18 of the 30 franchises operated at a loss) 1 Because so many franchises were reportedly losing money, the owners chose to lockout the players in an effort to create a new financial plan that would create a healthier economic situation for each NHL franchise, ultimately resulting in the league cancelling half of the 2012-13 season 2 Though soccer's popularity is growing in the U.S., Major League Soccer players' average salary is just $148,000. Average player salaries for basketball, baseball, and hockey are about $5.3 million, $3 million, and $2 million, respectively. Yet, reports indicate just half the MLS clubs are currently profitable.3 Despite selling out every home game and winning a NBA championship (including 13 home sellout playoff games), Miami Heat owner Mickey Arison told CNBC that the franchise lost money in 2012 4 Financial challenges are not limited to major league franchises. According to a report from the local ABC affiliate in Fresno, CA, the city’s minor league baseball team (Fresno Grizzlies) lost over one million dollars. two seasons ago 5 A large gap exists in revenues between NHL franchises, something the league hoped to address in negotiations with the NHL Players Association in 2012 in an effort to help more teams achieve profitability (for an in-depth look at the NHL’s revenue model, click here) Last season, nine NBA teams lost money while eleven NHL teams lost money Even the teams that are profitable (aside from NFL franchises) typically enjoy significantly lower profit margins than other for-profit entities such as banks or publicly traded companies Click here to view a chart comparing the profitability of pro sports leagues compared to broadcast/cable companies, banks and publicly traded companies Click here to read an in-depth comparison of professional sports and other entities Revenue Streams Directory: cms -> lib6 -> IL01001099 -> Centricity -> Domain -> 480 480 -> Unit 4: Marketing Applications 480 -> Sports & Entertainment Marketing Unit One Outline, 2014-15 School Year 480 -> Sports & Entertainment Marketing Unit Three Outline, 2014-15 School Year Unit 3: Introduction to Sports & Entertainment Business Principles 480 -> Unit 6: Branding & Licensing 480 -> Unit 11: Sports & Entertainment Communications 480 -> Unit Nine Outline, 2014-15 School Year Unit 9: Ticket Promotion & Sales Download 1.28 Mb. Share with your friends:
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