chapter 6

1. chapter6 Sport Management and Marketing Agencies Mark A. McDonald, William A. Sutton

2. Introduction • A sport management and marketing agency is a business that acts on behalf of a sport property • Sport property can be • A person • A corporation • An event • A team • A place • A concept (continued)

3. Introduction (continued) • Actions undertaken may include • Representation • Negotiation • Sales • Licensing • Marketing • Management

4. Functions • Client management and representation • Client marketing and product endorsement • Event creation and development • Event management and marketing • Property representation and licensing • Television development and production (continued)

5. Functions (continued) • Sponsorship solicitation and consulting • Hospitality management services • Grassroots and participatory programs • Research evaluation • Financial planning and management

6. Client Management and Representation • Represents a client in contract negotiations and marketing decisions • Negotiations may be between • player and team • license and licensor • product and endorser (continued)

7. Client Management and Representation (continued) • Functions involve • Financial planning • Investment and management • Marketing • Personal appearances • Other forms of revenue production and management

8. Client Marketing and Product Endorsement • Involves the agency in the promotion and total marketing of the client • For athletes • Endorsement opportunities • Product endorsement • Personal appearances • Book contracts • Interview and feature stories

9. Event Management and Marketing • Involved in activities such as • Golf and tennis tournaments • Festivals • Bowl games • Functions include • Tournament operations • Hospitality and entertainment • Sponsorship and ticket sales • Licensing and merchandising • Television production, public relations, promotion

10. Property Representation and Licensing • Property can be a facility, event, team, athletic program, band or concert tour, and so on • Functions include • Sales of rights fees • Promotional licensing opportunities • Sponsorship sales • Signage and advertising agreements • Endorsements

11. Television Development and Production • Agencies have recognized the opportunities that television presents • Cable • Satellite • Pay-per-view • Example The emergence of 12-team conferences has resulted in lucrative markets for televised conference championships

12. Sponsorship Solicitation and Consulting • The most common functions are the solicitation and securing of corporate sponsorships • Particular properties may assist in achieving corporate goals and objectives

13. Hospitality Management Services Functions include • Transportation and other logistical issues • Menu and food service planning and management • Corporate sponsor entertainment • Special auxiliary event creation and management • Housing • Awards, gifts, and recognition programs

14. Grassrootsand Participatory Programs • Designed to build a following • Essential to long-term growth • Mostly aimed at children and adolescents who are potential consumers in the future • Often targeted to certain demographic groups and ethnic markets

15. Research and Evaluation • Research is critical to success and aids decision making • Forms of research • Mail surveys • On-site surveys • Personal interviews • Pre- and posttest event impact analysis • Focus groups

16. Financial Planning and Management • Highly specialized service involving • Accountants • Financial planners and advisors • Investment specialists • Portfolio managers • Few agencies specialize in this type of service

17. Types of Agencies • Full service • General • Specialty • In-house

18. Full-Service Agencies In-house personnel perform a full range of services • Client management • Event creation • Television development • Sponsorship solicitation • Hospitality services • Research and evaluation • Financial planning

19. General Agencies Uses an integrated approach in the development of client programs • Marketing and representation of athlete, coach, or broadcaster • Team and venue services • Corporate consulting and property marketing • Hospitality and event management

20. Specialty Agencies Specializes in the types of services it provides or in the scope of its clientele • Sponsorship and event marketing • Event management and hospitality

21. In-House Agencies Departments of companies that perform many sport marketing functions on behalf of the products and divisions of the parent company • Brand or product managers • Advertising departments • Public relations departments • Community affairs departments

22. Careers Within an Agency • Typically hire experienced people • Degree • Business degree with a marketing background is preferred • Sport management degree with several electives in business is desirable • Advanced degrees in business, law, or sport management are an advantage • Skills Figure 6.2—organizational, technical, people

23. Challenges Facing Agencies • In-house versus outsourcing Control in generating more income and cutting expenses • Conflicts of interest Agency under contract of an athlete and several teams • Mergers and acquisitions Trend toward aggressive mergers and acquisitions • Labor unrest Downfall of a strike • Legislative and judicial review Elimination of tobacco and alcohol signage