Textbook Assignment:

1. Textbook Assignment: • Encore pg. 41 • B – Thunderstorm • A – • Gain or Loss Risks • Insurable Risks • Controllable Risks • Make the facility is well-lit, has adequate fire exits, staffed with security personnel, employees have been trained for emergency situations. Chapter 2

2. Lesson 2.3Business Ethics Learning Targets • I can define ethics. • I can discuss the impacts of unethical behavior. Chapter 2

3. Terms • Ethics • Principles Chapter 2

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. Chapter 2

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). Chapter 2

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 Chapter 2

7. BUSINESS BEHAVIOR • People (businesses) should act ethically while pursuing a profit. • Athletes (teams) should act ethically while pursuing a victory. Chapter 2

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 Chapter 2

9. Professional Sports - Franchise • Fines • Salary Cap Hits • Firings • Removal of Owner(s) College Sports - School • Fines • Reduction of Scholarships • Suspensions • Televised Games • Postseason Play • Season Controlling Bad Behavior Professional Sports - Athletes • Fines • Reduced Playing Time • Suspensions • Game(s) • Season • Lifetime College Sports - Athletes • Reduced Playing Time • Suspensions • Game(s) • Season • Loss of scholarship Chapter 2

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. Chapter 2

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. Chapter 2

12. Textbook Assignment: • Encore pg. 46 • Answer Questions: #1, #2, and #4 • Email your responses to the questions. Michael.florimonte@campbell.kyschools.us Chapter 2

13. Lesson 2.4Financial Analysis Learning Targets • I can discuss sources of funding and revenue streams for sports and entertainment businesses. Chapter 2

14. Terms • Return On Investment • Forecast • Budget • Balance Sheet • Income Statement Chapter 2

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. Chapter 2

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 Chapter 2

17. Return On Investment 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 Chapter 2

18. Money Sources • Funds to repay investors are raised through Revenue Streams; Examples • Ticket Sales • Pre-Game Sales and Season Tickets • Broadcast Rights • TV and Radio • Licensing • Merchandise and Apparel • Facilities • signage, parking fees, luxury boxes, concessions Chapter 2

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. Chapter 2

20. Budget a 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. Chapter 2

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. Chapter 2

22. Chapter 2 - Textbook Assessment Pg. 52 Questions: #1 – #10 Pg. 53 Questions: #15, #17 and #18 Due 10/22 – Start of Class Chapter 2