The Business of Selling Sports and Entertainment

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The Business of Selling Sports and Entertainment

• Ms. Jacobs
• Business/Marketing
• DECA Advisor

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

• The Key is..PASSION
• The Moral of the Story
• Be careful what you wish for
• For you just might GET it!

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Reality of Working in Team Sports and the
Entertainment Industry

• Long Hours
• Lousy Pay
• Frequent Turnover

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Not interested in working in Sports and
Entertainment?
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It is a working and a learning field

• Thanks to the growth of Media the Sports and
  Entertainment Industry has become ENORMOUS!
• Section of newspaper
• News segments
• Radio segments
• Magazines

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Why do we focus mainly on sports???

• 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
• 213 Billion
• That is 2 times the size of the U.S. auto
  industry and 7 times the size of the movie
  industry

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

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Spectator Spending

• 28.54 Billion per year 13.4
• Ticket Sales
• Premium seat revenue
• Concessions, parking, and on-site merchandise

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Sporting Goods Industry

• 28.12 Billion per year 13.2
• Equipment used in competition
• Sportswear used in competition
• Footwear used in competition

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Operating 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

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Gambling

• 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)

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Travel

• 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

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Professional Services

• 16.61 Billion per year 7.8
• Facility and event management
• Financial, legal, and insurance services
• Marketing and consulting
• Athlete representation

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Medical 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 Smiths SportsBusiness Journal
research)
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Licensed Goods

• 11.50 Billion a year 5.4
• Represents sales of merchandise officially
  licensed by leagues, teams, and other sports
  properties

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Media 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

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Sponsorship

• 7.03 Billion per year 3.3
• Represents money spent on sponsorship of
  leagues, teams, broadcasts, and events.
• (Sources IEG Sponsorship Report, Street
  Smiths Sports Business Journal League Report
  Card)

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Facility Construction

• 2.98 Billion per year 1.4
• U.S. stadiums
• U.S. Motor Speedways
• U.S. arenas

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Multimedia

• 2.34 Billion per year 1.1
• Magazines (circulation revenue)
• Computer and Video Games
• Videos and DVDs
• Books

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Endorsements

• 852 Million per year 0.4
• Endorsement vales of top 75 athletes,
  coaches, and sports personalities

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Internet

• 426 Million per year 0.2
• Ad spending
• Subscriber fees
• Yahoo Sports
• ESPN Plus
• Etc.

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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

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SoHow do you get a job in Sports and
Entertainment??
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So How do you get a job in Sports?

• Introductory 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

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So How do you get a job in Sports? 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.

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So How do you get a job in Sports? 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
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Get Your Start Right Out of High School
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Get Your Start Right Out of High School

• One of the HOTTEST new degrees in the market
  today is a SPORTS degree.
• According to Dr. 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
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Get Your Start Right Out of High School cont.

• NASPE National Association for Sports Physical
  Education
• NASSM North American
• Society of Sports Management
• (www.nassm.com)
• SMPRC NASPE and NASSM have teamed up to create
  the Sports Management Program Review Council

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

• Get involved in LWs 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.
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Thank You!