The Business of Selling Sports and Entertainment Ms. Jacobs Business/Marketing DECA Advisor.

The Business of Selling Sports The Business of Selling Sports and Entertainmentand Entertainment

Ms. JacobsBusiness/Marketing

DECA Advisor

““So…So… You Want to Work You Want to Work in the Sports and in the Sports and

Entertainment Entertainment Business?”Business?”

So You Want to Work in the Sports and So You Want to Work in the Sports and Entertainment Business?Entertainment Business?

The Key is…..PASSIONThe Key is…..PASSION• The Moral of the Story…

“Be careful what you wish for… For you just might GET it!”

Reality of Working in Team Reality of Working in Team Sports and the Entertainment Sports and the Entertainment

IndustryIndustry

• Long Hours

• Lousy Pay

• Frequent Turnover

Not interested in Not interested in working in Sports and working in Sports and

Entertainment?Entertainment?

It is a working and a learning It is a working and a learning “field”“field”

Thanks to the growth of Media – the Sports and Entertainment Industry has become ENORMOUS!

– Section of newspaper– News segments– Radio segments– Magazines

• Sports Industry has been pegged as one of the largest and fastest growing industries in the United States

(Sports Business Journal, 2004)

Survey of the size of the industry in 2004:Survey of the size of the industry in 2004:

$213 Billion$213 BillionThat is 2 times2 times the size of the U.S. auto industry and 7 times7 times the size

of the movie industry

Why do we focus mainly on Why do we focus mainly on sports???sports???

14.1%

13.4%

13.2%

11.8%

9.5%

8.3%

7.8%

6.5%

5.4% 3.

6% 3.3% 1.

1%1.4%

0.2%0.

4%

Sports Advertising Spectator Spending Sporting Goods Industry

Operating Expenses Gambling Travel

Professional Services Medical Spending Licensed Goods

Media Broadcast Rights Sponsorship Facility Construction

Multimedia Endorsements Internet

The Categories that Make Up the The Categories that Make Up the $213-Billion Sports Industry…$213-Billion Sports Industry…

Sports AdvertisingSports Advertising

$30.03 Billion per year = 14.1%•Billboards Arena/Stadium signage

•National Network TV

•Radio

•National Cable TV

•Sports Magazines

•Regional TV (Network & Cable)

•National Syndicated TV

Spectator SpendingSpectator Spending

$28.54 Billion per year = 13.4%

• Ticket Sales

• Premium seat revenue

• Concessions, parking, and on-site merchandise

Sporting Goods IndustrySporting Goods Industry

$28.12 Billion per year = 13.2%

Equipment used in competition

Sportswear used in competition

Footwear used in competition

Operating ExpensesOperating Expenses

$25.13 Billion per year =11.8%

Represents payments (excluding travel costs) by teams, leagues, and other governing bodies in organized sports

• Big Four pro leagues, player payroll = $6.1 B

• Big Four pro leagues, other = $5.81 B

• Colleges = $6.04 B

• Minor Leagues = $600 M

GamblingGambling

$20.24 Billion per year = 9.5%

• Pari-mutuels (including horse/greyhound racing)

• Internet

• Legal sports books

(Source: State of Nevada Gaming Control Board, annual reports of state racing commissions, Internet Gambling Report by Christiansen Capital Advisors)

TravelTravel$17.68 Billion per year = 8.3%

• Represents money spent by groups for travel to and from organized sporting events

– Spectators

– Colleges

– Big Four Pro Leagues

– Minor Leagues

– Other

Professional ServicesProfessional Services

$16.61 Billion per year = 7.8%

• Facility and event management

• Financial, legal, and insurance services

• Marketing and consulting

• Athlete representation

Medical SpendingMedical Spending

$13.85 Billion per year = 6.5%Total Injury Costs:• Soccer = $3.39 Billion• Baseball = $2.16 Billion• Softball = $1.28 Billion• Football = $1.27 Billion• Track & Field = $1.12 Billion

(Street & Smith’s SportsBusiness Journal research)

Licensed GoodsLicensed Goods$11.50 Billion a year = 5.4%

Represents sales of merchandise officially licensed by leagues, teams, and other

sports properties

Media Broadcast RightsMedia Broadcast Rights

$7.67 Billion per year = 3.6%

• Big Four Pro Leagues plus NASCAR = $5.29 Billion

• Colleges = $1.06 Billion

• Other = $640 Million

SponsorshipSponsorship$7.03 Billion per year = 3.3%

Represents money spent on sponsorship of leagues, teams, broadcasts, and events.

(Sources: IEG Sponsorship Report, Street & Smith’s Sports Business Journal League Report Card)

Facility ConstructionFacility Construction

$2.98 Billion per year = 1.4%

• U.S. stadiums

• U.S. Motor Speedways

• U.S. arenas

MultimediaMultimedia$2.34 Billion per year =1.1%

• Magazines (circulation revenue)

• Computer and Video Games

• Videos and DVDs

• Books

EndorsementsEndorsements$852 Million per year = 0.4%

Endorsement vales of top 75 athletes, coaches, and sports personalities

InternetInternet$426 Million per year = 0.2%

• Ad spending

• Subscriber fees

– Yahoo Sports

– ESPN “Plus”

– Etc.

What does this mean…??What does this mean…??

… That there are now -- and will be for the foreseeable future -- LOTS of jobs and opportunity in the “Sports and Entertainment Industry”

Your biggest question then is to decide WHERE you want to focus your energies…

““So…So…How do you get a How do you get a job in Sports and job in Sports and Entertainment??”Entertainment??”

So… How do you get a job in So… How do you get a job in Sports?Sports?

• “IntroductoryIntroductory” call• Job in sports ≠ Working for a team

– Sports advertising (from agency or client angle)– Sports law– Sports agent– Sports medicine– Athletic equipment manufacturer– Sales executive– And the list goes on…

So… How do you get a job in Sports?So… How do you get a job in Sports? cont.cont.

• There are a TON of jobs working in the sports field.

• Organizations will be looking for sharp, enterprising, resourceful employees that do not mind “paying their dues”.

• This is a commodities industry – and YOU are the commodity.

So… How do you get a job in Sports?So… How do you get a job in Sports? cont.cont.

The line of people wanting to get into this industry is never ending, it is one of the MOST COMPETITIVE industries out there

It is a “WHO YOU KNOW” industry that starts with WHAT you know…

Get Your Start Right Get Your Start Right Out of High SchoolOut of High School

Get Your Start Right Out of High Get Your Start Right Out of High SchoolSchool

• One of the HOTTESTHOTTEST new degrees in the market today is a SPORTS degree.

• According to Dr. David StotlarDr. David Stotlar at the University of Northern Colorado, there are approximately…

…programs being offered currently in Sports Management at colleges and universities across America.

250

Get Your Start Right Out of High Get Your Start Right Out of High School School cont.cont.

NASPENASPE = National Association for Sports &Physical Education

NASSMNASSM = North American

Society of Sports Management (www.nassm.com)

SMPRC SMPRC = NASPE and NASSM have teamed up to create the Sports Management Program Review Council

How can you get that How can you get that “Experience” now?“Experience” now?

How can you get that “Experience” How can you get that “Experience” now?now?

• Get involved in LW’s athletic and drama department to help them raise money for their programs.

Selling tickets to games and other school events

“Nothing happens unless someone SELLS something!”

Welcome to Sports and Entertainment Marketing, the opportunities are endless….