Business of sport
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Sports have become a huge global business. Leagues and teams generate billions in revenue from sources like ticket sales, broadcasting rights, sponsorships, and merchandise. While some athletes earn enormous salaries, most professional careers are short and many minor leaguers struggle financially. There are also challenges for athletes after retiring when they may lack job skills. Collegiate sports profit from ticket sales, TV deals, and sponsorships but don't directly pay the athletes, which some argue they should. Overall sports is a major economic force but also presents issues around compensation and life after playing.
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Business of sport
- 1. Current Trends and Issues Prepared by: Jeremy Floyd Pedregosa
- 2. Business of Sport MONEY INCOME REVENUE PROFITS and LOSSES EXPENSES CAPITAL MARKETING INVESTMENT OWNERSHIP SPONSORSHIP and ENDORSEMENTS SALARIES SRM19-Edu: Trends and Issues in Sports
- 3. Objectives Powerful economic influence of sports How professional sports affect national and local economies How collegiate athletic programs profit SRM19-Edu: Trends and Issues in Sports
- 4. Europe USA Philippines Sports is BIG Business around the world Recreational SportProfessional Sport Corporate Sport > NBA MLB NFL NHL UFL SHAKEYS & PSL PBA La LIGA BarclaysLiga ACB Football is Big in Europe SRM19-Edu: Trends and Issues in Sports College Sport is also BIG in US UAAP Basketball is BIG in the PHL Sport is a BIG Business
- 5. Sport Pyramid WORK SPORT GAMES PLAY COLLEGE ATHLETICS PAID IN TERMS OF TUITION WAIVER AMATUERRECRUITMENT Pirating Players EQUITY BETWEEN MENS AND WOMENS SPORT ACADEMICS STANDARDS SRM19-Edu: Trends and Issues in Sports
- 6. THE SPORT and the ECONOMY Entertaining people during their time of from work has always been a primary role of both participation and spectator sport. Commercial interests influence virtually every decision in collegiate and professional sports. Events are rated by television audience share, ticket sales Web site hits, concession sales, sponsor revenue, and ,media coverage. Wins and Losses are important because they influence all of these standards. SRM19-Edu: Trends and Issues in Sports
- 7. When we moved from an agrarian society to an industrial society, we increased our leisure time. This leisure time could then be spent attending sporting events, thus increasing the role of sport in our economy HYPE it up SRM19-Edu: Trends and Issues in Sports
- 8. Ownership of Professional Sports Use teams to increase personal and financial wealth or serve as a tax advantage to offset other business gains. Originally, owners of professional sports teams were people who love the game. Corporate conglomerate purchase sport franchise to help market and promote their own other products. SRM19-Edu: Trends and Issues in Sports
- 9. Spend money to make money George Steinbrenner Owner, New York Yankees Winning is the most important thing in life after breathing. He purchase Yankee in 1973 for $10 million Yankees was estimated to be worth $950 million in 2005 by Forbes.com Buys the best players whatever the price tag Yankees won World Series in 1996, 1998, 1999, 2000 SRM19-Edu: Trends and Issues in Sports
- 10. INVESTMENT Professional team franchises appreciate, growing in value every year. TAXES Save money by reducing their overall tax liability DEPRECIATION Annual decreasing value SRM19-Edu: Trends and Issues in Sports
- 11. TICKET SALES Total ticket sales are affected by seating capacity of the stadium. The prices set for each level of seating, and the attendance of each game. On Average, LA Lakers earned $2 million for each Regular Home Game, and $3 million for each Playoff Home Game on live gates. (Home team gets 95% of the income in ticket sales) STADIUM REVENUE Concession Luxury boxes (most expensive seat) Parking SRM19-Edu: Trends and Issues in Sports
- 12. MEDIA REVENUE TV, Radio, Cable and Pay-per-view broadcast LICENSING FEES ON TEAM MERCHANDISE Sales of team jerseys, caps, t-shirt, and every imaginable souvenirs NAMING RIGHTS Selling of naming rights to their stadium American Airline Center (Home of the Dallas Mavericks) paid $195 million for 30 years. SRM19-Edu: Trends and Issues in Sports
- 13. MANAGEMENT VS. LABOR DRAFT PLAYER COMPENSATION LIMITS ON ATHLETES EARNING HOW SPORT IS BEING MONOPOLIZED? SRM19-Edu: Trends and Issues in Sports Parity
- 14. SRM19-Edu: Trends and Issues in Sports Not all athletes make exorbitant salaries. Minor- league players may make as little as $14,000 US for a season of play that is typically shorter than a major-league season. Minor-league players often play in another league the rest of the year or take another job just to make a living.
- 15. SRM19-Edu: Trends and Issues in Sports Top athletes earned multi million-dollar contract Others are struggling to make ends in the minor leagues hoping for a chance at the big league. Manny Pacquiao and Floyd Mayweather Alex Rodriguez Kobe Bryant and Lebron James Tiger Woods Mari Sharapova and Roger Federer Usain Bolt Imports College athletes
- 16. SRM19-Edu: Trends and Issues in Sports Athletes can find another job once their career is over?. Athletes often fall victim relying on their athletic prowess and have no marketable skills. Sport-relate job like officiating, coaching, scouting, and working in front office are limited and demand training and experiences. SAD story!
- 17. SRM19-Edu: Trends and Issues in Sports The day-to-day work of a professional athlete is extremely demanding even in the off-season. Athletes are constantly challenge at their physical and mental limits. They often travel extensively and spend long time s away from spouses and children. If their team trades them, they are forced to uproot their families and start life in a new city. Burn-out Divorce and broken family Constant adjustment Athletes who come short to address some of these issues usually ended up being BROKE or FAILED.. WARNING. REMEMBER THIS. Careers may last only a few years while salaries need to last a lifetime INVEST
- 18. How COLLEGIATE SPORTS make MONEY? Ticket sales Television rights Athletic fee Corporate sponsor Licensing fee and merchandise SRM19-Edu: Trends and Issues in Sports
- 19. SRM19-Edu: Trends and Issues in Sports Answer this PAY College athletes for their PLAY?
- 20. SRM19-Edu: Trends and Issues in Sports
Editor's Notes
- #5: 1. In the Philippines, Basketball men and Volleyball women is considred as the money making sports.
- #10: 1.Yankee was the most valuable sport franchise in the world in 2005 2. He fired 20 managers during his 23 years as team owner.
- #14: Draft hiring the best new talent Salary Cap amount each team could spend on players salaries in order to save money and ensure competitive balance.