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Chapter 3 – section 1

Chapter 3 – section 1. Big League Pricing and Planning. The “big” in “big league sports” refers to revenue potential or commercial value (money) as much as to the skill level of the actual physical competition.

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Chapter 3 – section 1

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  1. Chapter 3 – section 1

  2. Big League Pricing and Planning • The “big” in “big league sports” refers to revenue potential or commercial value (money) as much as to the skill level of the actual physical competition. • As professional team owners plan for financial success, they must determine the cost of obtaining the top professional athletes. • Why would corporations pay extra fees to get a group of tickets for professional contests?

  3. Financial Planning for a Sports Team • An NFL team can be a financial asset to a city if: • Everyone and everything involved with the team (staff, headquarters, practice areas, and pre-season training facilities) stays within the home city area. • The stadium/arena is used for events other than those for which it was built • The team attracts other business development like hotels, restaurants, and retail shops.

  4. Bringing all the Resources Together • Give three examples of off-the-field products that can products that can produce profits. • Media rights • Luxury suites • Team sponsorships

  5. Sports Movies Radio (2003) Friday Night Lights (2004) The Longest Yard (Remake) (2005) Two For the Money (2005) Invincible (2006) We Are Marshall (2006) Facing the Giants (2006) Gridiron Gang (2006) The Comebacks (2007) The Game Plan (film) (2007) Leatherheads (2007) The Express (2008) The Longshots (2008) The Blind Side (film) (2009) • What are your top three favorite sports movies? • Varsity Blues (1999) • Any Given Sunday (1999) • Fumbleheads (1999) • Remember the Titans (2000) • The Replacements (2000) • Full Ride (2001) • The Slaughter Rule (2002) • The Junction Boys (2002) • Hometown Legend (2002) • The Second String (2002)

  6. What can cause higher prices for tickets to sports events? • How can a team be good for a city?

  7. Prestige, Power & Profitability • Perks (short for perquisite) – A payoff or profit received in addition to a regular wage or payment • Jerry Jones paid $140 million for the Cowboys in 1989 ($65 mil. For the franchise and $75 mil for the stadium) • The value has now more than doubled

  8. Political Clout • Reasons that Mayor Philip Bredesen of Nashville, TN, supported Nashville’s success ful bid to become the new home of the Titans football team. • New local jobs & businesses • New image for the city • Motivation for young people to stay in Nashville

  9. Professional Teams and the Community • What type of jobs could a new stadium and team bring to a community?

  10. Sociological Ties to a Professional Team • Image enhancement –

  11. The Bottom Line • Rickey Jackson signed with the 49ers for $162,000 in 1994 with a bonus clause of $838,000 if the 49ers made it to the Super Bowl. (He got it – they won)

  12. Power, prestige & money apply to college sports too • Merging conferences and alliances is done for fiscal reason. • Fiscal (money)

  13. Penn State • Joined the Big Ten for 3 reasons: • More television coverage • Better exposure • More money

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