Understanding the Sport Industry

1
Understanding the Sport Industry

• The Management of
• Sport Organizations, Events and Programs
• in the 21st Century

2
Size of the Sport Industry
US Professional Sport Industry
3
US Consumer Spending on Sport

• Advertising 28.25 billion
• Endorsements 730 million
• Equipment/Apparel 24.94 billion
• Facility Construction 2.49 billion
• Internet 300 million
• Licensed Goods 15.1 billion
• Media/broadcast rights 10.57 billion
• Professional Services 14.03 billion
• Spectator Sports 22.56 billion
• Sponsorships 5.09 billion
• Medical Treatment 4.1 billion
• Travel 44.47 billion
• Publications/Videos 2.12 billion
• Gambling 18.55 billion
• Team Operating Expenses 19.23 billion

4
The Alternative Sports Boom

• Young males between 12-24 years of age spend
  billions of dollars annually on equipment and
  apparel
• In-line skate (251 million)
• Snowboard (235 million)
• Skateboard (105 million)
• Wakeboard (80 million)

5
Grand Total
213 billion
6
Sport Managers Are The Glue That Holds This All
Together
Sport managers are the wonderful glue that binds
successful sport organizations, sport events,
athletes, health clubs, and virtually every sport
industry-related business. (Davis, p. 5)
7
Defining Sport

• Sport is any activity, experience, or business
  enterprise focused on fitness, recreation,
  athletics, or leisure. sport does not have be
  competitive, nor does it always require
  specialized equipment or rules in fact, sport
  includes activities such as working out, running,
  and dancing. (Parks Quartermain, p.7)

8
Sport Management is any combination of skills
related to planning, organizing, directing,
controlling, budgeting, leading and evaluating
within the context of an organization or
department whose primary product or service is
related to sport and/or physical activity.
(Parks Quartermain, p. 8)
9
Sport Industry- all sport-related products
offered to customers
Sport Industry Segmentation
Sport Performance
Sport Production
Sport Promotion
Participation
Products/Influence
Promo Tools
10
A View of the Sport Industry by Setting
11
What makes the sport product unique?
VS.
1. Aspects of the sport product are intangible.
12
What makes the sport product unique?
2. Sport is subjective and heterogeneous.
13
What makes the sport product unique?
3. Sports are inconsistent and unpredictable.
14
What makes the sport product unique?
4. Sport is perishable.
15
What makes the sport product unique?
5. Sport involves emotions.
16

• Sport Organizations are
• Goal oriented (exist for a reason)
• Deliberately Structured (systematic arrangement
  of people and working relationships)
• Deliberately Coordinated (patterns and
  relationships)
• Exist as a system of individuals and groups
  (activation)
• Made up of people with special skills
  (competencies)

17
Sport Context
18
Future Trends in the Field

• Health and Fitness Industry
• Growth in family markets
• Growth in niche markets (women, older
  adults)
• Growth in spa settings
• Growth in personal training

19

• Facility Management
• Growth in domes and multi-pad arenas
• Growth in golf courses
• Growth in parks and trails
• Sporting Goods
• Growth in diversity of products
• Growth in use of event management
• Professional Sport
• Growth in number of franchises

20
Forming your Organization

• Vision - The vision statement includes a vivid
  description of the organization as it effectively
  carries out its operations.
• Mission - the mission statement describes the
  overall purpose of the organization.
• Values - Values represent the core priorities in
  the organizations culture, including what drives
  members priorities and how they truly act in the
  organization.

21
N.E.T Organizational Chart
22
Deciding on sport organization

• By next week have a sport organization that you
  feel could attract capital
• By next week create your organizations vision,
  mission and values
• Be prepared to present your organization to the
  class with powerpoint