Bell Ringer

• What are the two main forms of distribution for Sports and Entertainment?

Bell Ringer Answer

• Live Events• Media

Agenda

• Bell Ringer / Attendance – 5 minutes• Chapter 8.2 Lecture and Notes – 30 minutes• Chapter 8.2 Activity – 35 minutes

Table of ContentsTopic Page #Digital Media Trends 4Chapter 8.1 Vocabulary and Notes 5Recreational Sports 6Chapter 8.2 Vocabulary and Notes 7

4 5

Chapter 8.2 Vocabulary and Notes

1. Note2. Note3. Note4. Note5. Note6. Note7. Note8. Note9. Note10. Note

Recreational Sports

Geographic Considerations

Learning Targets

• I can discuss distribution and sponsorship of amateur sports and recreation.

• I can discuss the distribution of college sports.• I can discuss the distribution of professional

sports.

Vocabulary

• Title IX• Cartel• League Agreement

Amateur Sports and Recreation

• Amateur Athlete Someone who is not paid, but plays for the enjoyment and challenge.– Any age– Any physical challenge

Fitness and Fun

• Health, leisure time, and money all drive the recreation industry.

Challenges of Recreation

• Motivate people to actively participate in the sports and activities that interest them.

• High costs may reduce people’s interest in professional sports.

• Making facilities available where they are needed.

Facilities vs. Wilderness

• Community leaders must recognize the need for recreational space for local residents.– i.e. Louisville Skate Park– Skate Park Moving

• Must consider the environmental impact of recreation.– Backpacking, off-road driving, and rock climbing.

Getting Access

• Participation in recreational sports is directly related to income.– Affluent areas have golf courses, tennis courts,

etc. for citizens.– People living in less affluent areas must depend of

public facilities.• Public parks

Title IX

• TITLE IX – An amendment in 1972 to federal education law that prohibits discrimination against females in school sports.– Schools must provide females with access to

facilities, equipment, and training that is equal to that provided to males.

Collegiate Sports

• A winning college team has economic impacts not only for its school but also for the community, region, and state.

College Football Rules

• The NCAA is the governing body of college and university athletic programs.– NCAA Postseason Football Licensing

Subcommittee• Determines how postseason bowl games are licensed

and made available to fans.– There are currently 35 NCAA bowl games.– Sponsorship for a bowl games includes paying for both

participating teams travel and participation expenses at a minimum.

– 2013 BCS PAYOUTS

Team Rankings

• Rankings influence the game schedules of the major television networks.– Televised games mean more revenue for the team

and its university.

Professional Sports

• In countries where the economy is market driven (US), professional sports are distributed based on their popularity among consumers.

• In countries where economies are controlled by the government (Afghanistan), professional sports are not always readily available, and the distribution channels are tightly controlled.

Distributing the Game

• The US government encourages the growth and consumption of professional sports.– There are more US cities that want professional

sports teams than there are teams available.– The leagues controls the location of the teams

based on the business benefits to the leagues’ owners.

Distributing the Game

• Individual teams within a league are separately operated businesses, but they are not in competition with each other.– Each team is a member of a cartel.

• CARTEL a combination of independent businesses formed to regulate production, pricing, and marketing a product.– IE: TBS, TruTV

, and TNT only broadcast NCAA tournament games.

Distributing the Game

• The cartel is a number of independent sports teams grouped together and governed by a league agreement.

• LEAGUE AGREEMENT control the marketing mix and governs the distribution of the games, including the locations of the teams and the number of teams allowed to operate within the league.

How Distribution is Decided

• Regions with a large potential customer base are considered favorable for the location of a team.

• Owners request public funds to subsidize (financially back) the new teams.– Subsidies are often obtained through taxes, local

government agencies must have the support of voters.

– NBA team to Louisville (Forbes)– NBA team to Louisville (Biz Journal)

It Takes Money

• The existing leagues’ owners set the price the new owner will have to pay for the franchise.– The price is an expansion fee that is divided

among the owners.– Bob McNair’s record-breaking $700 million bid

made him the newest NFL league owner of the Houston Texans.• Reliant Energy paid $300 million to place it’s name on

Houston’s stadium.

It Takes Money

• In 2004 Super Bowl XXXVIII was played in Reliant Stadium.

• 71,500 people attended the event.• An additional 40,000 people visited Houston for the

festivities.• $129 million was spent on lodging, food, beverage, and

entertainment during the week.• Sales tax generated $3.2 million.• However, the city only made $913,397 after all bills

were pai.

It Takes Money

• To host the Super Bowl, the city must be 20 pages worth of requirements which includes having:– 20,000 hotel rooms– 65 limousines available for NFL use only.– 1,000 buses for transporting fans– A variety of private and public golf courses nearby.

Left-Hand Activity

• Compile a list of recreational sports. Use a map of the United States (provided) to locate popular areas for these sports.

• Explain some of the geographic considerations for the popularity of these sports.