Sport Facility Management: Organizing Events and Mitigating Risks

1. Sport Facility Management: Organizing Events and Mitigating Risks

2. Chapter 1 Introduction

3. Preliminary Thoughts • Common Denominators in Sport and Entertainment • Event classification • Type of facility • Risk association Sport Facility Management: Organizing Events & Mitigating Risks

4. Preliminary Thoughts(cont.) • Sport facilities have a long and storied history • 1966: First sport management program started at Ohio University • Understanding large facility events helps transition to smaller venues Sport Facility Management: Organizing Events & Mitigating Risks

5. Globalization of Sport • Rupert Murdoch • Owner of Fox Sports, LA Dodgers, Sky TV • NFL • Kurt Warner played in NFL Europe • MLB • Plays in Mexico, Japan, Puerto Rico • World Cup 2002 • Brazil v. Germany in Japan Sport Facility Management: Organizing Events & Mitigating Risks

6. 1972 Olympics Palestinian attack on Israelis 1996 Olympics Bombing in Atlanta 1999 Metal detectors installed before high school basketball game 2002 College Football Brawls Fans tearing down goalposts Crowd Management Philosophy Foreseeability Violence Sport Facility Management: Organizing Events & Mitigating Risks

7. September 11th, 2001 • Facility managers must reassure guests of their safety • Budgets may increase by 40% • Insurance companies reluctant to insure • Event risk profile Sport Facility Management: Organizing Events & Mitigating Risks

8. Other Concerns • Attendance downturn • Economy • TV ratings Sport Facility Management: Organizing Events & Mitigating Risks

9. Industry and Technology Changes • Spectator-based to entertainment experience • Quality over quantity • Internet sales • ATTM • “Smart” fan cards • Wireless at seats Sport Facility Management: Organizing Events & Mitigating Risks

10. Conclusion • 2001-2002 • 23% increase in construction of sport facilities • Need for trained personnel who can manage and mitigate risk • The future of sport management Sport Facility Management: Organizing Events & Mitigating Risks

11. Chapter 2 Planning and Producing an Event

12. Defining Event Management • Getting things done through people • Complex, surprising, ambiguous • Satisfying stakeholders • Participants, sponsors, spectators Sport Facility Management: Organizing Events & Mitigating Risks

13. What Is Sport Event Planning and Production? • Elements of management occurring within an organization • A triangle of stakeholders • Adapt, improvise, overcome Sport Facility Management: Organizing Events & Mitigating Risks

14. Steps in Planning and Producing the Event • Agree on event goals • SWOT • Strengths • Weaknesses • Opportunities • Threats • Event development and monitoring strategies • Manage event logistics • Motivate and influence event volunteers Sport Facility Management: Organizing Events & Mitigating Risks

15. Cialdini’s Rules of Influence • Reciprocation • Commitment and consistency • Social proof • Liking • Authority • Scarcity Sport Facility Management: Organizing Events & Mitigating Risks

16. Steps in Planning and Producing the Event • Pre-event briefing • Track the event in real time • Post-event debriefings • Cleanup and/or closeout • Reconcile the event Sport Facility Management: Organizing Events & Mitigating Risks

17. Additional Event Planning and Production Suggestions • Event checklists • Double check • Be specific • Recognize Murphy’s Law Sport Facility Management: Organizing Events & Mitigating Risks

18. Chapter 3 Financing Facilities

19. Introduction • Unprecedented renovation and construction of sport facilities • Escalating costs causing problems • Teams relocating for new facilities • The financing and economic impact of new facilities central to this chapter Sport Facility Management: Organizing Events & Mitigating Risks

20. Facility Financing • Public • Keep public subsidy to minimum to expand cash flow • Private • Emphasis is on stockholder wealth and stock price • Combination Sport Facility Management: Organizing Events & Mitigating Risks

21. Financing Options • General obligation bonds • Backed by government and require taxes • Revenue bonds • Tax from specific sources • COP (Certificate of Participation) • TIF (Tax Increment Financing) • Other Sport Facility Management: Organizing Events & Mitigating Risks

22. Financing Options (cont.) • Public and private cooperation • Revenue bonds backed by sales tax • Naming rights and arena revenues • Land taxes • Club seating Sport Facility Management: Organizing Events & Mitigating Risks

23. Financial Team • Examples • Facility manager/staff • Business plan consultant • Architect • Construction manager • Legal counsel Sport Facility Management: Organizing Events & Mitigating Risks

24. Cash Flow • Definition • Examples • Why is cash flow such an important concept for the facility manager? Sport Facility Management: Organizing Events & Mitigating Risks

25. Public v. Private Financing • Public financing supporters • New jobs, attracts new fans, etc. • “Minor League City” • Multiplier effect • Private financing supporters • New stadiums do not create, they redistribute • Other activities lose participants • Tax base not expanded significantly Sport Facility Management: Organizing Events & Mitigating Risks

26. College Facilities • Student fees • User fees • Corporate funding Sport Facility Management: Organizing Events & Mitigating Risks

27. Chapter 4 Privatization

28. Introduction • Governmental resources are limited • Privatization shift • 1990s • Most facilities funded publicly • However, managed privately • Public-private partnership • Efficiency and effectiveness Sport Facility Management: Organizing Events & Mitigating Risks

29. Rationale for Utilizing Public-Private Partnerships • Governments can and should do more with less • Increased efficiency and effectiveness • Competition • Rewarding innovation Sport Facility Management: Organizing Events & Mitigating Risks

30. Public-Private Partnerships • Types • Contracting out or outsourcing • Franchising • Commercialization/service shedding • Tax expenditure • Vouchers Sport Facility Management: Organizing Events & Mitigating Risks

31. Examples of Public-Private Sport Partnerships • Event promotion and management • Sport stadium financing and construction • Private sport facility and event management Sport Facility Management: Organizing Events & Mitigating Risks

32. Possible Benefits of Privatization • Economies of scale • Discipline of market forces • Increase in meaningful private-sector jobs • Reduced threat and impact of strikes Sport Facility Management: Organizing Events & Mitigating Risks

33. Possible Drawbacks of Privatization • Inefficient and costly • Government still responsible for quality control • Public employees needed to monitor the private sector Sport Facility Management: Organizing Events & Mitigating Risks

34. Final Thoughts • Privatization is part of today’s sport event and facility management landscape • Facility manager should be cognizant of both to run an effective operation Sport Facility Management: Organizing Events & Mitigating Risks