Sport as a product

1. Money, Business, and Entertainment Sport as a product Christina Sbrocchi Luciano Lombardi

2. Athletes… People Like Us?

3. Contracts and Salaries: Money, Money, Money Highest Paid Athletes in the Four Major Sporting Leagues (2010-2011) • NFL: Peyton Manning - $15.8 million (2010) • NHL: Vincent Lecavalier - $10 million (2010-2011) • NBA: Kobe Bryant - $24.8 million (2010-2011) • MLB: Alex Rodriguez - $33 million (2010)

4. Contracts and Salaries: Money, Money, Money • Top 10 Highest Paying Contracts of All Time • 1. Alex Rodriguez – 10 years, $275,000,000 (New York Yankees - MLB) • 2. Alex Rodriguez – 10 years, $252,000,000 (Texas Rangers - MLB) • 3. Derek Jeter – 10 years, $189,000,000 (New York Yankees – MLB) • 4. Michael Vick – 10 years, $167,000,000 (Atlanta Falcons – NFL) • 5. Manny Ramirez – 8 Years, $160,000,000 (Boston Red Sox – MLB) • 6. Fernando Alonso – 4 years, $160,000,000 (McLaren – Auto Racing) • 7. Kimi Raikkonen – 3 years, $153,000,000 (Ferrari – Auto Racing) • 8. Miguel Cabrera – 8 years, $152, 300,000 (Detroit Tigers – MLB) • 9. Todd Helton – 11 years, $151, 500,000 (Colorado Rockies – MLB) • 10. Johan Santana – 6 years, $137,500,000 (New York Mets – MLB) • Breakdown – 7 baseball, 2 auto racing, 1 football • (N.B. Kobe Bryant is #11, the first spot for the NBA on the list… Alexander Ovechkin is the only NHL’er in the top 25)

5. Contracts and Salaries: Money, Money, Money • The Influence of Salary Caps • Salary Cap – The amount of money a team can spend on player salaries. • Major Leagues that have “caps”: NHL, NFL, NBA, MLS • The influence of salary caps can be seen in the list of the highest paying contracts… Major League Baseball does not have a “cap”. Consequently, MLB teams are responsible for 7 of the top 10 highest paying contracts of all time.

6. Transfer Fees in Football… yes, That Means Soccer • Professional clubs use transfer fees to buy players from other clubs. • Top 10 Highest Transfer Fees of all time • 1. Cristiano Ronaldo - €93.5 million (Manchester United to Real Madrid) • 2. Zinedine Zidane - €75 million (Juventus F.C. to Real Madrid) • 3. Zlantan Ibrahimovic - €69 million (Internazionale to Barcelona) • 4. Kaka - €65.1 million (AC Milan to Real Madrid) • 5. Luis Figo - €58.5 million (Barcelona to Real Madrid) • 6. Hernan Crespo - €53.6 million (Parma to Lazio) • 7. Gianluigi Buffon - €49.2 million (Parma to Juventus F.C.) • 8. Robinho - €49 million (Real Madrid to Manchester City) • 9. Christian Vieri - €48.3 million (Lazio to Internazionale) • 10. Andriy Shevchenko - €46.4 million (AC Milan to Chelsea)

7. Entertainment “Value” of Sports… to say the least! • Average Ticket Prices to the Four Major Sporting Leagues in North America… • NFL: $76.47 per ticket (highest league average is $117.84 for the New England Patriots) • NHL: $54.25 per ticket (highest average is $115.96 for the Toronto Maple Leafs) • NBA: $48.08 per ticket (highest average is $99.25 for the Los Angeles Lakers) • MLB: $26.74 per ticket (highest average is $52.56 for the Chicago Cubs)

8. Entertainment “Value” of Sports… to say the least! • Fun Facts! • Average NFL Super Bowl 2011 ticket price: $900 per ticket (resold, average of $3000)… could buy a decent used car for the price of a resold ticket!!! • Super Bowl 2011 parking: lots ranged from $55 per spot up to $990 per spot based on location!!! • Average NHL Stanley Cup 2010 ticket: $993 per ticket (premium seat, $2,838 on average)… instead of a premium ticket, could pay for a 7-day Disney cruise to the Caribbean!!! • Average NBA Finals 2010 (in L.A.) ticket price: $1,328 ($550 in Boston)… Game 6 courtside seats went for as much as $57,950 per ticket (a pair cost approx. $115,900)… instead of courtside seats, could buy a 2011 Mercedes-Benz SL550 convertible!!! • Average re-sold MLB World Series 2010 ticket: $858 (up to $5000 for box seats)… instead of box seats, could pay for approximately 70% of our OISE B. Ed. tuition!!! • The New Medowlands Stadium in New Jersey (NFL) and Cowboys Stadium in Texas (NFL) both cost over $1 BILLION to build!!!

9. Support Your Team… With Your Wallet • Examples of average prices of team apparel (in Canada) • NFL: Premiere (not authentic) Reebok NFL jersey: $129.99(Replica Reebok NFL jersey: $99.99) • NHL: Authentic Reebok NHL jersey: $279.99 (Replica/Premier Reebok NHL jersey: $129.99 - $189.99) • NBA: Swingman (not authentic) adidas NBA jersey: $99.99(Replica adidas NBA jersey: $44.99 - $54.99) • MLB: Nike MLB Fan jersey (not authentic): $69.99 (New Era MLB cap: $39.99) • Soccer – MLS: Authentic adidas Toronto F.C. jersey: $119.99(Toronto F.C. adidas training jersey: $64.99) • Soccer – International: Replica Nike international club jersey: $99.99(Nike International training club jersey: $59.99 - $69.99) • … PLUS TAX!!! • N.B. According to Statistics Canada, the average Canadian household spends between $125-$150 on food/groceries per week.

10. Endorsements- Because you can never have too much money! • On top of insane salaries, why not market yourself and make some extra pocket change? • Endorsements are meant to advertise a certain product, usually sports-related, in order for companies to expand their market, and ultimately make more money • Companies capitalize off the “if they have it then I MUST have it too” strategy, which influences many, many consumers (don’t lie, you’ve all said it!)

11. Top 5 endorsements: 1) David Beckham - Soccer Sponsor: Adidas Estimated Value: $160 million (lifetime) 2)George Foreman - Boxing Sponsor: Salton, Inc. Estimated Value: $137.5 million (lifetime) 3) Tiger Woods - Golf Sponsor: Nike Estimated Value: $100 million (5 years)

12. Top 5 endorsements… 4) LeBron James - Basketball • Sponsor: Nike • Estimated Value: $90 million (7 years) 5) Cristiano Ronaldo • Sponsor: Nike • Estimated Value: $32 million a year (lifetime)

13. Power of advertising

14. Power of advertising…

15. POWER OF ADVERTISING

16. Sponsorships: another advertising scheme Official sponsors for NBA: • Haier: the Official HD TV • Gatorade: the Official Sports Drink, • Nike: The Official Sports Shoe, • Sprite: The Official Drink • Newest sponsor… Spanish Bank BBVA, a deal that earns the NBA over $100 million.

17. Sponsorships • Official sponsors of the MLB: • Bank of America, Bayer (One a Day), FIA Card Service NA, Firestone, Frito Lay, Gatorade, Gillette, General Motors (Chevy), InterContinental Hotels Group, KPMG, MasterCard Worldwide, Nike, Pepsi-Cola, Scotts, State Farm, Taco Bell, Sirius XM

18. Sponsorships… • Official Sponsors of the NHL: • Scotiabank, Energizer, LG Electronics and Roots • As for the NFL… recently signed a 6-year, $1.2 billion deal with Budweiser/Bud Light • … all of these sponsors pay big money to leagues in exchange for prime advertising, and the fans are once again the target.

19. For the love of the game! - Activity • Medical Definition: ESF (Extreme Sports Fanatic) A serious condition spreading across the world like wild fire. Symptoms include: • No money to buy daily necessities • Owns at least 3 jerseys from various sports • Beer gut • No significant other

20. For the love of the game! • Usually lives in parents basement due to lack of funds • Still manages to scrape up enough money to attend Leaf home games (even with crappy seats) • IS THIS YOU? LETS FIND OUT…

21. FOR THE LOVE OF THE GAME! • OPTION #1: 2 tanks of gas OR 1 Leaf ticket (approx. $115) • OPTION #2: Green Bay Packers jersey OR dress shoes for work (approx. $120) • OPTION #3: 1 Blue Jays ticket OR lunch for the day (approx. $25) • OPTION#4: Soccer jersey of choice OR clothes for practicum (approx. $120)

22. OPTION #5: Authentic Reebok NHL Jersey OR Groceries for 2 weeks (approx. $280) • Option #6: Take your family (of 4) to a Raptors game OR make a car payment (approx. $300)