Sports Marketing

1. Sports Marketing Pee Wee Leagues to College Football and the NFL

2. Sports Marketing • Long been an area of interest to students and businesses alike Primarily reflected in the sheer dollar volume of ticket sales, merchandising and TV rights sold

3. Areas of Interest • Professional and College • Football and Basketball • NASCAR • Major League Baseball • Tennis • Golf • Gambling???

4. Product Branding – BCM Design Merchandising Players/Coaches Prestige of City? Pricing TV Rights Ticket Prices Fundraising Distribution Location of Team Time and Place Games Played On-Site vs. Broadcast Promotion Advertising vs. PR Sales Promotions Direct Marketing Issues Marketing Issues

5. Current Events • NBA West Finals – What’s going on with the Lakers • Steroids and baseball controversy – Caminiti - MVP 1996 • NASCAR and INDY controversies • Star Wars and Spiderman continue to rule • Friends top TV program for the season

6. Other Topics of Interest • Role of Women in Sports • Role of the Media • Importance of Personal Endorsements • Sponsorships • Fan Support

7. College Football • Pros • Raises a bunch of money! • TV rights, merchandising, tickets • Increases national profile of the university • Assists in recruiting for programs • Engenders loyalty and enthusiasm with alums

8. Fundraising • Participation in Conference Proceeds • National TV Rights (I.e., Notre Dame) • Donations from Alums • Ticket Sales

9. College Football • Cons • Funds raised not shared • Ethics considerations with grading, schedules and absenteeism • Mission of the University • Negative Publicity

10. College Football • Expenses of Program, Coaches, Travel, Opportunities • Role of Alumni and Athletes and Coaches • Perks and the NCAA

11. Negative Publicity • Alabama Football • Coach’s indiscretions/ Resignation • Tennessee • NCAA violations? • Money issues

12. Negative Publicity Academics vs. Athletics • Vandy and its woes • Stanford and Duke??? • Distraction Element • Examples • Miami, SMU, TSU, Notre Dame Investigations • Immediate publicity vs. long-term impact on program and university

13. Debate of 1A vs. 2A • Why should a school invest in the development of a 1A football program? • What are the advantages and disadvantages? • What are the payoffs?

14. NCAA Concern and Debate • Do the players get a fair deal? • Coaches make $300K plus a year • Universities generate merchandising, ticket sales, TV Rights $ • Media sells papers, generates ratings and sells ads

15. NCAA Concern and Debate • NCAA bans players from any form of payment • Universities provide educational expenses, room and board, travel arrangements and funds

16. NCAA Concern and Debate • Debate centers around questions of “fair compensation” • No pie-sharing • TV and recruiter exposure, free education • 48% players violate rules

17. NCAA Concern and Debate • Possible Solutions • Hold Firm and Enforce Policies • Provide a Monthly Stipend • Are all athletes equal? Gender and Sport Bias Issues? • Professional Recruiting Limits? • None before junior/senior year? • Age limits?

18. Women and Sports • Perpetually under-funded and promoted • Recent Court rulings require equal opportunity and access • Tennessee Women’s Basketball and Soccer teams have increased visibility • WNBA

19. Role of Women in Boxing • First Male vs. Female Fight • Shameless sideshow or equal time? • Increased ratings? • Interest in Muhammed Ali’s daughter • KNOCKOUT VICTORY

20. Women in Tennis • Draw very respectable ratings • Purses still lag behind men’s • Hurt by negative publicity • Younger ages and lack of racial diversity of competitors a concern

21. Product Issues • Product Attributes • Tangible – atmosphere, sports performance, eat, drink and be merry! • Intangible – feelings of belongingness, nostalgia, hedonic consumption • Branding • Associated Images • Ties to Cities, Schools*

22. Product Issues • Research shows that those organizations that develop a brand image that is distinctive to the area and target market most successful

23. Distribution • Location of teams • Placement in new markets vs. established markets • Geography of TV Coverage and Fan Appeal • Timing of Games

24. Sponsorships in golf and tennis Recall is high Audience very similar Sales Promotions Contests, free tickets and trips Merchandising and Specialty advertising Publicity Newsworthiness and coverage Advertising Superbowl Fox TV earned $150 million in ad revenues Ads sold for $2.5 m this year Promotion

25. Promotion • Role of marketing communications vital in establishing brand image • Advertising • Role of the message and medium separate • Sponsorship • Message and media elements inextricably linked

26. Pricing • Number and Level of Competitors • Titans • Tennessee • Vandy • MTSU • Predators • Sounds • Out of Pocket Expenses • $300 for a family of 4 with Titans

27. Professional Sports Teams • Four Distinct Target Markets • Fans that attend games, watch and purchase merchandise • TV and other media companies which purchase rights • Communities that build facilities and support local clubs • Corporations that may purchase teams outright, sponsorships, etc.

28. Houston Deal for NFL • Originally conditionally awarded LA an expansion • Needed suitable stadium site • $700 million fee; $310 million for stadium = total of more than $1 billion • Nation’s #11 TV market (means ad revenues and merchandising • No return of the Oilers moniker!

29. Houston and the Billionaire • New realignment of 8 divisions of 4 teams each • Houston will return to AFC • St. Louis and Arizona abstained in vote over realignment issues • Promise of Superbowl in 2004 (probably)

30. Prices of an Expansion • Cleveland credit card magnate Al Lerner paid a mere $530 million for the new Cleveland Browns • However, the Redskins and the stadium deal went for $800 million last year • So the selling point went up from original projections of $350 million to $700 million + stadium

31. Stadium Proposal • $310 million • $195 in public funds • What was the reason Oilers originally left? • Retractable dome • Coaching Considerations • Butch Davis? • Season Opener in 2002

32. Superbowl • Ad time initially sold for $2.5 million per 30 seconds • As a result of teams participating – value of ad space deteriorating..why?

33. WCW vs. WWF • Turner’s WCW significantly under performs relative to WWF • Strategy to hire away the head writer of WWF’s Smackdown, Raw is War and Sunday Night Heat!