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34 Cards in this Set
- Front
- Back
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Chapter 7 Financial Operations |
-Major categories of revenue -Effective Budgeting -Game guarantee -Object of expenditure budget -Largest expense item for an athletic department -Majority of NCAA revenue -Major expenses category for NCAA -Liquidity |
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Major Categories of revenue |
Two major categories: -Generated revenue: income derived from commercial activities of the athletics department. This is usually when good or service is provided in exchange for a fee (sponsorship, donor relations, ticket sales, and media coverage). -Strategic focus of most athletic departments. -Allocated revenue: all support from noncommercial activity (i.e. student fees) directly allocated to athletics, institutional support and government support |
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Effective Budgeting |
-Allows decision makers to better control and monitor spending -Offers a clearer picture of organizational priorities -Alerts management to revenue shortfalls -Prevents rash financial decisions -Provides a working document for strategic planning -Proffers a precise measurement source for financial performance -Motivates constituents to meet important goals and objectives *Budgets are essential in departmental operations; athletics departments are constrained by time and money. *A good budget should also provide an accurate projection of revenue and expenses detailing the projected costs of each planned trip. Giving a source of stability in unpredictable times. *Three stages of budgeting process: -data collection -planning -budget development |
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Game Guarantee
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-Home teams looking to secure visiting opponents, guarantees can be an expense for an athletics department. Guarantee revenue for an opponent |
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Object of Expenditure |
also known as line-item budget -Is a document in which individual financial items (revenue and expenses) are grouped by department and itemized by function. -Is traditional budgeting -Implemented for: simplicity, flexibility, an the the ability to measure over time -Ex: revenue generated from website subscriptions would be itemized as such and grouped under digital media. |
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Largest expense item for an athletic department
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-Salaries are the largest expense for an athletics department. -Includes: wages paid to coaches, administrators, and support staff members and also bonuses and benefits. |
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Majority of NCAA revenue |
-is generated through television and marketing rights--specifically, through the agreement with Turner/CBS Sports to broadcast March Madness (men's Division I basketball tournament) -deal is worth $10.8 billion over 14 years. |
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Major expenses category for NCAA |
-Distribution to Division I members through 5 Division I funds. -Majority of Division I revenue distribution is based on school and conference performance in NCAA basketball tournament. Each tournament game that a ream plays earns a share worth about $250,000. -Payouts are distributed to each conference based on its member-school appearances in the tournament over a six-year rolling period. |
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Liquidity |
-Refers to time it takes for an asset to be converted into cash. -Assets that can be converted to cash within a year are considered current assets. -Assets that would take longer than a year to convert to cash are considered fixed assets, |
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Chapter 8 Marketing |
-Secondary ticket market -Dynamic ticketing price meaning -Different types of sales promotions/advertising -Community relations initiatives -Original rights holders with logos |
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Secondary Ticket Market |
Also known as the resale market -Exists between fans and brokers of event tickets after they have been purchased from the primary market Benefits: -Exhaustive inventory (tickets are generally available for whatever event you want to attend) -Aggregate prices that provide consumers with a comprehensive picture of what is available -Detailed analytics and price forecasts, which ensure that the consumer gets the best deal -Possibility of purchasing tickets below face value -Transparent fees |
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Dynamic Ticketing Price
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-Allows fan demand or lack of, to set the ticket prices for each sporting event -Defined as "pricing strategy in which prices change either over time, across consumers, or across product/service bundles" |
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Different types of sales promotions/advertising
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Sport promotion defined: "a fully integrated set of communication activities intended to persuade consumers toward a favorable belief or action as a tactical component of the overall marketing campaign" In-Game promotions: usually take place before play or during breaks in play. Ex: "kiss cam". Designed to incentivize people to become repeat buyers. Our own example: hockey games getting 3 or 4 goals to get a free culvers ice cream Sales Promotions: provides incentives to stimulate sales and increase attendance. Generally comes in the form of reduced prices, premium giveaways, contests, free samples, and other add-ons. Best giveaway items; bobblehead, t-shirt, headwear, backpack/bag, magnet schedule, photo, toy, poster, jersey, retail coupon. -Another sales promotion is the student reward program: a way to increase student attendance and awareness. Accumulate points to trade in for items like shirts and hats to pants and shorts. |
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Community Relations Initiatives
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-Community relations should not only target the campus and community but also take into account the global nature of the sport product |
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Original rights holders with logos
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-To minimize problems, the Collegiate Licensing Company (CLC) was formed in 1981 to help schools protect and control the use of their logos through trademark licensing. |
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Chapter 9 Corporate Sponsorship |
-Various types of inventory you could provide corporate partner -Business exchange -Exclusivity -Speculation -Quantifiable sponsorship measures -Ambush marketing -Outsourcing marketing |
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Various types of inventory you could provide corporate partner |
Traditional inventory: -signage at athletics facilities (LED sideboards, scoreboards, ribbon boards and permanent signage and video boards), print options (media guides, ticket backs, and game programs), radio commercials during broadcasts of sporting events, television commercials during broadcasts of coaches' shows, website options (contests, rotating banners), game-day promotions, and premium item giveaways that include recognition of the corporate partner. |
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Business exchange
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Business-to-business exchanges -Example: the upkeep of an athletic field, stadium, or arena may require the purchase of considerable quantities of improvement products from a local home improvement store. The sales team for the athletics department might form a partnership with the local store that gives the department lower prices if it pledges to make its purchases strictly from the sponsoring store. |
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Exclusivity
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-Can be given to those who are willing to pay more in order to ensure that their competitors will not be affiliated with the athletics department. -Ex: PepsiCo may be the exclusive pouring rights provider for an athletics department, thereby preventing Coca-Cola from being involved in sponsorship of that department's athletic events. |
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Speculation
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Quantifiable sponsorship measures
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-Intangible measures: photo or video evidence of a partnership generating pride among participants competing in a halftime event or of students wearing premium giveaway t-shirts in the student section at a game. -Quantifiable measurements: attendance total at a sporting event, the number of people who purchased a game program and therefore might see the partner's ad, or the length of air time or the number of impressions that a sign at an athletics facility yields during the course of a sporting event or season. -Greater detail in sponsorship measurements: the number of visitors to fan fest, as well as their demographics; the number of new e-mail addresses generated through a contest; and the number of coupons passed out at an event in order to drive traffic to the business partner. |
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Ambush Marketing
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-In which a business tries to profit from the assets of an athletics department without paying a rights fee. -Ex: business passing out coupons or samples of its product in a parking lot where fans are tailgating or arriving for an event; may also be implemented as fans exit an athletics facility after a sporting event. |
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Outsourcing marketing
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-Outsourced marketing firms traditionally work with Division I schools because their larger fan base enables the firm to generate greater revenue and thus a profit for the parent company. -Pay school in one of three ways: guaranteed fee to the school, two parties may share the revenue generated, or the school and the firm may create a payment option that combines both the guaranteed fee and a revenue-sharing element beyond an established threshold -Ex: Learfield Sports, IMG College, and CBS Collegiate Sports Properties |
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Chapter 10 Facility and Event Management |
-Security measures -Risk assessment; behavior issues, alcohol -Facility construction; bench marketing, LLED Certification, ADA |
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Security Measures |
-Facility and event managers have an obligation to protect the individuals who participate in, attend, and work at an event. Preserving the safety of everyone involved requires a high standard of care. Meeting this standard requires managers to conduct risk assessments to examine potential sources of injury, from the moment someone arrives on campus to the moment he or she departs. |
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Risk Assessment; behavior issues, alcohol
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Risk assessment: is a continuous process in facility and event management, and it should address such areas as participant safe, terrorism threats, student behavior, alcohol consumption, and tailgating. The assessment process itself should include the following steps: -Identifying specific potential risks -Establishing policy and procedures -Documenting all incidents -Executing the policy and procedures Student behavior: -though most student sections provide a positive home-court or home-field advantage, it takes only a few individuals to cause concern with negative behavior. -bad behavior can take place at any type of contes; whether a problem involves chanting, clothing choices, or other behavior, facility and event managers should have a policy in place for addressing problematic situations when they arise Alcohol at sporting events: -question the risk whether schools should serve alcohol at their sporting events. Among schools that do sell alcohol, many restrict alcohol consumption to their premium seating areas to foster greater contributions by donors in return for this benefit. The NCAA and other governing bodies have remained neutral on the issue, choosing to grand institutional control over pouring choices. -Critics of alcohol sales during events note that binge drinking is a sizable problem on college campuses and argue that serving alcohol sends the wrong message to students. -Indeed, excessive pregame drinking was so prominent at University of Wisconsin football games that the school implemented breathalyzer tests of students cited for alcohol in their system. -Proponents allowing alcohol consumption inside stadiums and arenas point out that it can generate considerable revenue. Alcohol sale previsions: -strict enforcement of ID checks -purchase limits -no alcohol point of sale near the student section -no alcohol sales in seating areas -no alcohol sales after the midpoint of the third quarter -designated driver program Alcohol management: -managing intervention procedures -procuring the alcohol license. -the adoption of alcohol sales was implemented in conjunction with the TEAM (Techniques for Effective Alcohol Management) Coalition, a nonprofit organization that addresses alcohol consumption in stadiums and arenas. The coalition works with beer distributors, traffic safety authorities, concessionaire groups, and facility managers to identify solutions for offering a more respectful, fan-friendly atmosphere at events in professional sport, entertainment, and intercollegiate athletics |
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Facility Construction; benchmarking, LLED Certification, ADA
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Facility planning: -optimal facility planning involves all stakeholder groups that may use or be involved with the facility, including participants, administrators, sports medicine staff, strength and conditioning staff, members of the media, hospitality providers, concession providers, and other support groups. -money is generally a primary consideration, and sharing space and choosing certain materials can reduce both construction and operational costs. -At the same time, cost-saving measures should be balanced with administrative considerations, such as scheduling and fiscal oversight. -In the planning stages of facility development and renovation, project managers should invest the time and energy to identify specific facility needs. This process includes conducting thorough feasibility studies and benchmarking. In choosing a firm to serve as an architectural, engineering, or construction partner, managers should balance cost-efficiency with demonstrated success and testimonials from other schools to ensure timely construction. Benchmarking: -enables school officials to research other facilities in order to glean ideas and develop comparisons. -can be done through initial on-campus research followed up by trips to other schools. LEED Certification: -Leadership in Energy and Environmental Design -if they meet certain criteria as evaluated by the U.S. Green Building Council. -The four tiers of LEED certification are platinum, gold, silver, and certified. ADA: -Americans with Disabilities Act -Facility and event managers also need to be knowledgeable about the Americans With Disabilities Act and how it affects not only spectators but also student-athlete who may be injured. -This is especially true in regard to new facility construction and facility alterations. -Seating for persons with a disability should include a variety of options, provide nightlines comparable to those of other seats, and be easy to access from the parking area, concession stands, and restrooms -In addition, staff working in disability seating and parking areas need to be knowledgable about the principle of accessibility in event management, thus ensuring high-quality customer service in an area that is frequently neglected -Can result in additional construction costs but ensures compliance with the federal legislation requiring that 1 percent of seating be appropriate for persons with a disability |
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Chapter 11 Alumni Relations and Athletics Development |
-Cultivation -Stewardship -Identifying and cultivation's stewardship -Endowments -Restricted and unrestricted gifts -Capital campaign |
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Cultivation
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Development or fundraising process |
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Stewardship |
-Fundraising is relationship driven, and in some cases a particular development staffer has an exceptionally strong one-on-one relationship with a donor. -Even these relationships need support in the stewardship process: this is particularly true as development offices strive to maintain relationships with donors regardless of changes in personnel. -Thus fundraising always requires skillful collaboration as a TEAM, which serves as a useful acronym to remind us that "Together Everyone Accomplishes More" |
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Identifying and cultivations stewardship
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-Personalized cultivation and stewardship enable donors to feel that they are part of the athletics department's success, both on the playing surface and in the classroom |
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Endowments
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-Contributions rolled into investments for the athletics department, from which the organization generates revenue in the form of interest gained. -Refers to either an organization's total investment from which it earns interest or to a large investment earmarked to fund a specific purpose (ex: a scholarship, a coach's salary, or a building maintenance fund) in perpetuity through interest earned from the investment |
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Restricted and Unrestricted Gifts
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Two ways a donor can contribute: -Restricted gift: are earmarked for a specific purpose -Unrestricted gift: preferred by a development staff, enables the school to use the funds for any purpose. |
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Capital Campaign
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-To address the school's capital, operating, and endowment efforts over a limited time frame. The establishment of a board of supportive donors initiates the process, which also includes the recruitment of other donors in a private or "silent" phase. |
