sports and entertainment management. managing local events economic environments utility factors...
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Managing Local EventsEconomic EnvironmentsUtilityFactors of ProductionEconomic SystemsManaging College EventsCollege Bowl ProjectProfessional Events
Financial Plan Marketing Plan Budget Economics Supply Demand Utility Form Utility Possession Utility Time Utility Place Utility
Factors of production
Economic system Scarcity Unity of command Span of control Proforma Brand Marketing upselling
Goals Describe three types of plans necessary
for organizing entertainment events. Explain the importance of budgets as
related to entertainment management. Describe the management necessary for
major events.
By failing to plan, you are planning to fail.▪ Benjamin Franklin
What does this mean in life? What does this mean in business?
“Americans spend more time planning their vacations then they do their careers and retirement”
“Americans spend more time planning their vacations then they do their careers and retirement”
What are the consequences of failing to plan for Your career? Your retirement?
Retirement#1 concern of retired people is ----
Running out of moneyConsequences of little/no retirement
planning? Running out of money Not having enough to do what you want Live with children Poor post retirement care
Much the same as life consequences Limited money Run out of money Can not do what is wanted/needed for
business Unhappy employees (Think Hostess)
The process of Setting goals Developing strategies And outlining tasks and schedules ▪ to accomplish the goals.
Any event needs cash and cash flow during the event.
Run out of cash and event is in trouble
Cash flow
Must plan and manage cash and cash flow
A measure of a company's financial health
Equals cash receipts minus cash payments over a given period of time
Sounds simple, right?
•Over $213 BILLION In Revenue.•This make the Sports Industry 2X the size of the Automotive Industry.•Sources of Revenue: 2. Advertising - $27.43 billion 4. Operating Expenses: 14. Endorsements - $897 million (Not travel) 1. Sporting goods - $35.62 billion $22.98 billion. 12. Facility construction - $2.48 billion 15, Internet - $239.1 million 2002 –Sale of Athletic and 9. Licensed goods - $10.50 billion Sports clothing: 10. Media broadcast rights - $6.99 billion $10 billion 7. Professional services - $15.25 billion 3. Spectator spending - $26.17 billion 11. Sponsorships - $6.4 billion 8. Medical spending - $12.6 billion 6. Travel - $16.06 billion 13. Multimedia - $2.12 billion 5. Gambling - $18.90 billion
Business Plan Document of a set of business goals Reasons they are believed To be attainable Plan for reaching those goals
Financial Plan Projected income, expenses, and profits
from event Marketing Plan
Detailed description of all promotional activities
What exactly does a business plan contain? Research▪ Very good site is the SBA
Briefly (handed in for credit) 1.List the elements or components of a
business plan2.Give a short description of each
Goals of a company and how they will be achieved Attain financing or funding▪ Includes business loans
Strategy on paper▪ Mistakes can be found here in thinking▪ Less costly here
Road map for the business
Executive Summary Summary of your plan as a whole Actually written last ▪ after other components completed
Company Description What does the company do? What is different from other companies?
Market Analysis Research business/industry the company
operates within
Organization and Management How is the business structured?
Service or product offered What do you sell or have to sell? Benefit to customers?
Marketing and Sales How do you plan to market your
business? What is your strategy?
Financing/Funding Where will you get funding for your
business?
Financial Projections Revenue Vs. Expenses What will be your return on investment?
A written plan that Describes the event Events goals and objectives How goals and objectives will be
achieved▪ Includes details for items as▪ Jobs and job descriptions▪ Legal issues▪ Acquiring financing if necessary
Managing Yourself Hard to manage a business if you can
not manage yourself.
What is your business plan for you?▪ Career?▪ Retirement?▪ Think about things you want to do in life and
retirement
See Rubric Contains eight elements covered for a
business plan It is on you as a company and a product Think about managing your future
Where do you see yourself? What is your product? (you) What is or will be your value to someone? Financing for college? How? How much?
Setting a budget Estimates expenses and sales Shows number of people to be hired Consider the following▪ Previous attendance▪ Competition▪ Economic trends▪ Amount of promotion
Remember the Functions of Management
Planning is the process of setting Goals (short and long term) Developing strategies Outlining tasks And schedules ▪ to accomplish goals.
Create a PERSONAL BUSINESS PLANPlan your next five years using below
as your guideThe process of setting
Goals (short and long term) Developing strategies Outlining tasks And schedules ▪ to accomplish goals.
Any event needs cash and cash flow during the event.
Run out of cash and event is in trouble
Cash flow
Must plan and manage cash and cash flow
•Over $213 BILLION In Revenue.•This make the Sports Industry 2X the size of the Automotive Industry.•Sources of Revenue: 2. Advertising - $27.43 billion 4. Operating Expenses: 14. Endorsements - $897 million (Not travel) 1. Sporting goods - $35.62 billion $22.98 billion. 12. Facility construction - $2.48 billion 15, Internet - $239.1 million 2002 –Sale of Athletic and 9. Licensed goods - $10.50 billion Sports clothing: 10. Media broadcast rights - $6.99 billion $10 billion 7. Professional services - $15.25 billion 3. Spectator spending - $26.17 billion 11. Sponsorships - $6.4 billion 8. Medical spending - $12.6 billion 6. Travel - $16.06 billion 13. Multimedia - $2.12 billion 5. Gambling - $18.90 billion
No single, universally agreed upon definition
Generally refers to two primary activities of an organization: How an organization generates the
funds that flow into that organization How these funds are allocated and
spent once they are in the organization
Profits/Income Difference between financial inflows
(Revenues) and outflows (Expenses) Assets: Anything an organization owns that
can be used to generate future revenues Teams can fund or “finance” assets in many
ways: Owners’ Equity: The amount of their own
money owners have invested in the firm Debt: Amount of money an organization
borrows College sports are nonprofit. Use budgetary
transfers from the university and other innovative methods
Many financial decisions ultimately revolve around management of assets
Return on Investment (ROI): Expected dollar-value return on each alternative investment
Risk Future benefits of investment cannot be
known at time of investment Owners must decide how much they will
finance with their own money and how much with borrowed money▪ Debt carries more risk than equity
does
Long-term preparation where strengths and weaknesses are evaluated.
Strengths Experience Past success New features
Weaknesses Budget Target market Lack of experience
Opportunities Size of community Expansion
Threats Weather conditions Economic conditions Competitors
Spectator sport industry is organized much differently from nonspectator industry and from rest of American business. The existence of one franchise benefits the
others.
© David Lee/ShutterStock, Inc.
Sport leagues considered monopolies▪ They face no direct competition▪ Gives them greater bargaining power when
dealing with stakeholders (e.g., players, broadcasters, corporate sponsors, and local governments) and allows them to potentially charge higher prices▪ Allows them to earn much higher profits than
would otherwise be the case, as well as enact financial policies (e.g., salary caps, revenue sharing) that would not be possible with direct competition▪ Only legal monopolies in United States
GOALSGOALSDescribe the job positions and
responsibilities involved in sports management.
Explain the importance of community involvement for professional sports teams.
Jobs in the field Marketing and Promotions Director Corporate Sales Director Director of Ticketing and Finance Sporting Goods Sales Manager Facilities Coordinator Athletic Business Manager Fitness Manager
Many colleges offer degrees in sports management. (Majors , Minors, and Masters)
Competition comes from everywhereA degree in the field offers network
opportunities and a solid understanding of the product
Jobs can be a cross of business and exercise science.
Requirements Knowledge of business Long workweeks including night and
weekend hoursEmployment outlook Competitive Growing
Jobs in sports have increased significantly over the past decade due to an increased interest.
Internships in sports are important to help with networking. In college some unpaid internships can cover college credits
No matter what type of sport organization involved, the finance function is crucial
Those interested in a career in sports should have solid grounding in: Corporate finance Managerial and financial accounting Advanced use of spreadsheet software
For those interested in working in spectator sports, familiarity with sport economics is beneficial
All teams have an extensive involvement with the local community
Teams support and help create/fund local organizations. Players do the same
All sports teams demonstrate a commitment to the community. Many organizations have paid positions for a community relations coordinator.
Use a kids club for community involvement
Teams organize charity events around larger events.
The organizational structure highlights different business departments and the personnel in which they exist.
This relationship influences the lines of communication
Trace all authorities and responsibility in a direct line from top executives down to the lowest employee level.
A president or CEO has direct authority over all work in a line organization
In a line organization, top management has complete control, and the chain of command is clear and simple. Examples of line organizations are small businesses in which the top manager, often the owner, is positioned at the top of the organizational structure and has clear "lines" of distinction between him and his subordinates.
Unity of command- employees report to only one supervisor at a time.
Span of Control- is the number of employees that a manager supervises directly.
The line-and-staff organization combines the line organization with staff departments that support and advise line departments
As competition increases customers expect increased quality and service. The organization becomes even more important
Centralized Versus Decentralized:The terms "centralized" and
"decentralized" are important management concepts. Often, they are used to refer to the distribution of authority and decision making with in an organization.
Have a few top managers who plan and make decisions. Sometimes larger organizations have communication problems. There can be an overabundance of rules.
Brand Marketing is the process of creating a perception that separates an organization from its competitors. A name and a brand is an important part of increasing sales
Selling additional products to customers beyond the initial purchase is known as upselling.
Up selling is a result of you purchasing products beyond your original intentions.
The key is the additional revenue stream.