Chapter 13

Event Management

Introduction

• Sport event management: All functions related to the planning, implementation, and evaluation of a sport event

• Requires: Finance/budgeting, risk management, tournament operations, registration, volunteer management, and event marketing

History• Late 1800s: Focus turned to the professional aspects

of managing sport events because of a desire to increase profits (Albert Spalding)

• Barnstorming tours: The touring of star athletes and teams to promote the popularity of a particular sport

• Emergence of sport management/marketing agencies—businesses that act on behalf of a sport property (e.g., IMG)

• Agencies have expanded to incorporate myriads of functions beyond representing athletes

Top Sport Management/Marketing Agencies

RankCorporate Consulting/Marketing

Services

Athlete/Talent

Representation

Property Representation

and Media Sales

Event Planning and Management

1 Octagon IMG IMG SportsMark Management

Group

2 Momentum Worldwide

Octagon Octagon Bronskill and Co.

3 Velocity Wasserman Media Group

Host Communications

Jet Set Sports

4 GMR Marketing and IMG (tie)

Creative Artists Agency

CSTV Vivid Marketing

5 Millsport Scott Boras Corp. Raycom Sports Next Marketing

Agency Functions

• Client representation: Acting on behalf of a client in contract negotiations

• Client marketing: Locating appropriate endorsement opportunities, booking appearances, and developing entertainment extensions

• Event development and management• Meeting increased demand for television

production and development work• Developing/marketing grassroots programs

Agency Functions (cont.)

• Soliciting corporate sponsorships• Evaluating the success of events and

initiatives through market research— implementing mail surveys, focus groups, on-site surveys, and sponsorship/economic impact surveys

• Studying impact of sponsorship activities

Types of Agencies• Full-service agencies perform the complete

set of agency functions (e.g., IMG, Octagon).• Specialized agencies limit either the scope of

services performed or the type of clients serviced (e.g., Redmandarin).

• In-house agencies are formations of separate departments or divisions dealing with event management within major corporations.

Event Management Functions: Finance/Budgeting• Critical to successful sport event management• Budgeting attempts to predict revenues and

expenses for a particular event• Zero-base budgeting: Review of all activities and

related costs of an event as if it were the first time• Cash-flow budgeting: Accounting for the receipt

and timing of all sources and expenditures of cash

Event Management Functions: Risk Management• Protecting the organization from anything that

could possibly go wrong and lead to a loss of revenue or customers

• DIM Process: Developing, implementing, and managing the risk management plan

• Waiver and release of liability: form signed by participants that releases venue from negligence

• Purchasing insurance: Provides security to an event regarding potential financial losses

Event Management Functions: Tournament Operations• The nuts and bolts of an event• Divided into pre-event, actual event, and

postevent activities• Pre-event: Determine type of event being

planned and the event’s goals• Script: Specific, detailed, minute-by-minute

schedule of activities throughout the day• Postevent: Activities surrounding completion of

event

Event Management Functions: Registration• First time event staff members come into

contact with participants• Registration system: Crucial for making

a good first impression on clientele• Determining information that needs to be

collected and disseminated during the registration process

Event Management Functions: Volunteer Management• Most events cannot be successfully

executed without volunteers

• Determine volunteer needs: Numbers, qualifications, type of work

• Recruitment and training

• Keep volunteers happy

Event Management Functions: Event Marketing• Integrated marketing approach: Corporate

sponsorship, advertising, public relations, hospitality, ticket sales, broadcasting, Web site development, licensing/merchandising, fund-raising

• Long-term strategic planning to manage functions in a consistent manner

Event Management Functions: Event Marketing (cont.)Corporate Sponsorship• Increase in number of events has led to an

increase in competition for sponsors• Events have become increasingly reliant

on sponsorship• Either sold by the event (in-house) or by

an outside sport marketing agency (IOC)

Event Management Functions: Event Marketing (cont.)Advertising• Advertising expenditures are a very minor portion of

an event’s expenses• Advertising sought through one of two means: (1)

media sponsors or (2) attachment to corporate sponsor advertisements

• Nearly all successful events sell sponsorships to media outlets

• In-kind sponsorships: Event provides the typical sponsorship benefits in exchange for a specified amount of free advertising space

Event Management Functions: Event Marketing (cont.)Public Relations• Generating free publicity is important• Must develop a good working relationship

with the members of the media (e.g., through hospitality)

• Event must be creative to attract interest

Event Management Functions: Event Marketing (cont.)Hospitality• Providing a satisfying experience for all

stakeholders of the event• One way of improving event loyalty• Hospitality rewards and builds relationships with

current customers; generates business from new customers; rewards employees for good performance; rewards suppliers for excellent sales

• Hospitality is one of the 10 most common functions of a sport agency

Event Management Functions: Event Marketing (cont.)

Ticket Sales• Sporting events rely on ticket

sales to varying degrees.• For medium-sized and smaller

events, ticket sales are a less effective way to generate revenues.

• Ability to charge admission is dependent on where the event occurs and how easily the event manager can control entry to the event (e.g., golf).

© Corbis/age fotostock

Event Management Functions: Event Marketing (cont.)Broadcasting• Radio/television broadcasts add credibility to an event

and provide increased exposure, benefiting sponsors.• If a broadcast outlet does not feel an event will be

attractive to a large audience, limiting the ability to sell advertising time, then the outlet will not be willing to pay a rights fee to televise or broadcast that event.

• Sport organization have begun to look at online sites (Youtube, etc.)

Event Management Functions: Event Marketing (cont.)Web Site Development• Imperative that any event, no matter the size, has a

Web site to provide important information and promote the event

• Web site’s URL should be the name of the event or something that is very close to the name of the event

• Web site should provide basic event details: When/where the event is occurring, how tickets can be purchased for the event, online ticket purchase option, news releases, and so forth

Event Management Functions: Event Marketing (cont.)Licensing/Merchandising• Sale of items that display an event’s name or

logo: Usually only beneficial for large, televised, multiday events

• To cover the costs of inventory, staffing, and space allocation, significant sales must be achieved for the event to make a profit

Event Management Functions: Event Marketing (cont.)

Fund-raising• Not-for-profit events can

use fund-raising as a means of revenue generation.

• Most often, not-for-profit events center around raising money for some charitable enterprise.

• Cause-related marketing efforts by corporations are another instance in which fund-raising may be appropriate.

© Thomas Weibenfels/ShutterStock, Inc.

Career Opportunities

• The event management field offers one of the most fertile areas for career opportunities.

• To be successful in event management, one must be prepared to work long and typically inconvenient hours.

• Careers in event management involve working with one of three types of organizations: sport management/marketing agencies, events, and charities.

Key Skills

• Education – sport management programs with marketing, event management, business, finance

• Internships – usually need internships for experience and companies hire new workers from intern pool

Current Issues: Niche Sports

• Unique and appealing to a distinct segment of the market

• Can be good for sponsorships to target specific market

• Usually lack exposure and corporate support

Current Issues: Consolidation of Agencies

• Benefits of vertical integration created significant consolidation among sport management/marketing agencies.

• Larger, more diversified sport and entertainment companies purchased sport management/marketing agencies (e.g., SFX Entertainment).

Current Issues: Economic Recession• Changed approach of sponsorships in sports

• Finance and auto industry were major sponsors, but hit hard by recession

• 2009 sponsorship spending fell by $100M