Sports and Entertainment Marketing © Thomson/South-Western Textbook Assignment: Encore pg. 41 1. B – Thunderstorm 2. A – 1.Gain or Loss Risks 2.Insurable.

Sports and Entertainment Marketing© Thomson/South-Western

Textbook Assignment: Encore pg. 41

1. B – Thunderstorm

2. A –

1. Gain or Loss Risks

2. Insurable Risks

3. Controllable Risks

3. Make the facility is well-lit, has adequate fire exits, staffed with security personnel, employees have been trained for emergency situations.

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Sports and Entertainment Marketing© Thomson/South-Western

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Lesson 2.3

Business Ethics

Learning Targets I can define ethics.

I can discuss the impacts of unethical behavior.

Sports and Entertainment Marketing© Thomson/South-Western

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Terms Ethics Principles

Sports and Entertainment Marketing© Thomson/South-Western

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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.

Sports and Entertainment Marketing© Thomson/South-Western

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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).

Sports and Entertainment Marketing© Thomson/South-Western

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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

Sports and Entertainment Marketing© Thomson/South-Western

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BUSINESS BEHAVIOR

People (businesses) should act ethically while pursuing a profit.

Athletes (teams) should act ethically while pursuing a victory.

Sports and Entertainment Marketing© Thomson/South-Western

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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

Sports and Entertainment Marketing© Thomson/South-Western

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Controlling Bad BehaviorProfessional Sports - AthletesFinesReduced Playing TimeSuspensions

Game(s) Season Lifetime

College Sports - AthletesReduced Playing TimeSuspensions

Game(s) Season Loss of scholarship

Professional Sports - FranchiseFinesSalary Cap HitsFiringsRemoval of Owner(s)

College Sports - SchoolFinesReduction of ScholarshipsSuspensions

Televised GamesPostseason PlaySeason

Sports and Entertainment Marketing© Thomson/South-Western

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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.

Sports and Entertainment Marketing© Thomson/South-Western

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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.

Sports and Entertainment Marketing© Thomson/South-Western

Textbook Assignment:

Encore pg. 46 Answer Questions: #1, #2, and #4

Email your responses to the questions.

Michael.florimonte@campbell.kyschools.us

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Sports and Entertainment Marketing© Thomson/South-Western

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Lesson 2.4

Financial Analysis

Learning Targets

I can discuss sources of funding and revenue streams for sports and entertainment businesses.

Sports and Entertainment Marketing© Thomson/South-Western

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Terms Return On Investment Forecast Budget Balance Sheet Income Statement

Sports and Entertainment Marketing© Thomson/South-Western

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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.

Sports and Entertainment Marketing© Thomson/South-Western

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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

Sports and Entertainment Marketing© Thomson/South-Western

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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

Return On Investment

Sports and Entertainment Marketing© Thomson/South-Western

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Money Sources Funds to repay investors are raised through Revenue Streams;

ExamplesTicket Sales

Pre-Game Sales and Season Tickets

Broadcast Rights TV and Radio

Licensing Merchandise and Apparel

Facilities signage, parking fees, luxury boxes, concessions

Sports and Entertainment Marketing© Thomson/South-Western

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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.

Sports and Entertainment Marketing© Thomson/South-Western

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Budgeta 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.

Sports and Entertainment Marketing© Thomson/South-Western

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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.

Sports and Entertainment Marketing© Thomson/South-Western

Chapter 2 - Textbook Assessment

Pg. 52

Questions: #1 – #10

Pg. 53

Questions: #15, #17 and #18

Due 10/22 – Start of Class

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