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Chapter 1 The History of Sport Management Introduction Roots of Sport Management Structures Management structures include clubs, leagues, professional tournaments Primary theme of chapter: Evolution due to broad social changes and/or to address specific issues Secondary themes:

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Chapter 1 the history of sport management l.jpg

Chapter 1

The History of Sport Management

Introduction l.jpg

Roots of Sport Management Structures

  • Management structures include clubs, leagues, professional tournaments

  • Primary theme of chapter:

    • Evolution due to broad social changes and/or to address specific issues

  • Secondary themes:

    • Honest play and inclusion

The club system l.jpg
The Club System

  • England:

    • Birthplace of modern sport & sport management

  • 18th century:

    • Development of sports clubs with limited membership

  • 19th century:

    • Continued club evolution with standardizing of rules, settling disputes, and organizing schedules

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Thoroughbred Racing

  • Races drew broad and diverse audience

    • no admission charged.

  • Local club system initially

    • racing existed for entertainment only, not financial gain

  • 1830s:

    • Rail system allowed horses to compete nationally

  • Desire of owners to breed & train fast horses, and the increasing complexity of gambling led to more complex club system

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The Jockey Club

  • Settled disputes, established rules, determined eligibility, designated officials, regulated breeding, & punished unscrupulous participants

  • Organized, sponsored, and promoted local events

  • Met need for a strong national governing body to establish rules, standards, and a mechanism for resolving disputes

  • Served as model for wider sport management practices in England

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The Modern Olympic Games

  • International club event, with little resemblance to ancient Olympic Games

  • First Modern Olympics in 1896, but the revival can be traced back to at least 1850 with club-based Olympic festivals in England

  • Founder Pierre de Coubertin, inspired by English revivals & Victorian notions of character building and peace movements through sport, introduced concept of amateur Olympic Games every 4 years

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Present-Day Club Structure

  • Commitment to serve broad membership & managing elite sports enterprise

  • Clubs organize youth teams & academies, adult recreational leagues, and social events for members

  • Large built-in memberships & loyal fan bases

  • Characterized by nonprofit status and exclusive membership:

    • Augusta and male-only membership

  • Change from European club system to U.S. league system

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American Structures

  • European club system did not suit the U.S.

    • Lack of aristocratic tradition & prohibition against gambling

  • Evolution of harness racing

    • Sport of the common person

  • Better spectator sport

    • Sprint vs. four-mile race; horses could compete daily, large field of competitors

  • Managed by track owners & race promoters:

    • More willing to create spectator interest for sport

  • Issues of race fixing, management lacking credibility

Leagues l.jpg

  • Baseball was first to adopt league system

  • Cincinnati Red Stockings: First pro team

  • Some teams in the league paid and some not—created controversy

  • 1871: Creation of National Association of Professional Baseball Players

  • Importance of “breakeven” financial interests of individual clubs

© Jones and Bartlett Publishers

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William Hulbert

  • Czar of baseball

  • 1876 - Took over management of National League of Professional Baseball Players

  • Believed stability only achieved if teams run like businesses

  • Teams should compete against each other & not collude

    • Understood that without strict rules forcing honest competition, collusion would occur

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William Hulbert

Also believed:

  • Owners must take some financial risk:

    • Abandoning seasons early to prevent losses in short term eroded long-term faith of public

  • Owners must field competitive teams to be profitable

  • Integrity of baseball was suspect as long as the players’ honesty was questionable:

    • Gambling prohibited and ticket prices raised

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Success of League

  • Excitement of pennant race

  • Favorable media attention

  • Appealed to fans’ loyalty and pride in their cities

  • Early form of revenue sharing

  • Rules that distributed talent

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Leagues Today

  • Successful contemporary commercial sports leagues depend on consolidated league play with strong centralized control and regulation

  • Audience has changed:

    • Public’s perception of locus of honest effort resides more with the players than with ownership structure

  • Single-entity structures: MLS, MLL, AFL

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Professional Sports Tournaments

Professional Golf

  • Early golf professionals were instructors & caddies

  • Professional leagues failed to capture public interest or attract golf professionals

  • Attempt to generate gate revenues at tournaments failed

  • Stability of tournaments achieved when prize money was put up by companies & corporate sponsors

© LiquidLibrary

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Corcoran’s Tournaments

  • Fred Corcoran = Architect of golf tournament

  • Golf tournament was medium through which celebrity, politician, manufacturer, charity, town, or product gained exposure

  • Used athletes & golf tournaments to sell advertising space to the public

  • Bing Crosby & Bob Hope created charity golf tournaments in pro-am format for WWII fundraising

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Corcoran’s Tournaments Continue After War Ends

  • Good business = tax deductions

  • Charities encourage volunteers and good publicity for tournaments

  • Golf equipment manufacturers paid him to create golfer ass’n and arrange tournaments using prize money as player payments to reduce cost of hiring player representatives

  • 1950s press changes policy and begins naming tournament sponsor not location = free publicity

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Tournaments Today

  • Golf tournaments have evolved into corporate celebration of itself and products

  • PGA Tour viewed as private group

    • set rules of eligibility

  • Associations not as exclusive as private clubs (Casey Martin)

  • Trend moving away from nonprofit private associations and toward marketing agencies and/or broadcast media

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Importance of Women

  • Heraea Games:

    • The Sixteen Women

  • Intercollegiate Sport:

    • Christine Grant & Judy Sweet

  • National Intramural Association (NIRSA):

    • Anette Akins, Mary Daniels, Juliette Moore

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Importance of Women in Sport Management

  • Sport Management Industry:

    • Effa Manley of Newark Eagles (Negro League)

    • Billie Jean King (WTT, WSF)

    • Lesa France Kennedy (NASCAR)

    • Stephanie Tolleson (IMG)

    • Dawn Hudson (PepsiCo)

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Academic Field

  • Continuing growth of sport industry and its importance to numerous sponsors and institutions created demand for the systematic study of sport management practices

    • 1957: Walter O’Malley

    • 1966: James Mason; first Master’s program at Ohio

    • 1971: University of Massachusetts

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Academic Field

  • Current status

    • Over 210 programs nationwide

    • North American Society for Sport Management (NASSM)

    • Program evaluation

    • Globalization

      • Sport Management Degree Programs throughout Europe

      • SMAANZ

      • EASM