SportsSportsDistributionDistribution

Event & Media Event & Media DistributionDistribution

Standard 2.2Standard 2.2

Stadium as “Place”Stadium as “Place” Sports – produced & consumed at Sports – produced & consumed at

same time.same time. Sports – produced & consumed @ Sports – produced & consumed @

same place.same place. Stadium – represents the distribution Stadium – represents the distribution

(place).(place). Stadium – adds to the “effect” of the Stadium – adds to the “effect” of the

eventevent

Place =Place =DistributionDistribution

Sports are produced and consumed Sports are produced and consumed simultaneouslysimultaneously

The Stadium, Arena, or Venue serves as both The Stadium, Arena, or Venue serves as both the location and the method of distribution for the location and the method of distribution for the eventthe event

The media also provides for distribution of The media also provides for distribution of sports eventssports events News, TB, PPV, Radio, Internet,…News, TB, PPV, Radio, Internet,…

Distribution of EventsDistribution of Events

AttendanceAttendance Gate or Gate Gate or Gate

ReceiptReceipt Fan Fun EventsFan Fun Events Ancillary EventsAncillary Events

Fan Involvement in Fan Involvement in EventsEvents

Many ways that fans shape and effect Many ways that fans shape and effect gamesgames ““Home Court Advantage”Home Court Advantage” Noise metersNoise meters Attendance recordsAttendance records Ticket Prices & “Scalping”Ticket Prices & “Scalping” Media Input & PurchasingMedia Input & Purchasing

• DirecTV, Satellite, Pay-Per-ViewDirecTV, Satellite, Pay-Per-View

New StadiaNew Stadia

4 Years: 33 new venues = 24 4 Years: 33 new venues = 24 plannedplanned

New Venues incorporate Luxury New Venues incorporate Luxury BoxesBoxes Increase Revenue for Team Increase Revenue for Team

Incorporate New Technology withIncorporate New Technology with

““Old Style” AtmosphereOld Style” Atmosphere

Stadia FundingStadia Funding80% of funding is TAX DOLLARS80% of funding is TAX DOLLARSLuxery BoxesLuxery Boxes

Add $10 – 40 Million Annually to TeamAdd $10 – 40 Million Annually to Team Increases Salary & PayrollIncreases Salary & Payroll Signing Better PlayersSigning Better Players Increase CompetitionIncrease Competition Increase Ticket & Lux.Box Sales…Increase Ticket & Lux.Box Sales…

Ticket DistributionTicket Distribution

Team & Venue SalesTeam & Venue Sales Sales: Face Value of TicketSales: Face Value of Ticket ““GATE”GATE” Total Ticket Sales for Total Ticket Sales for

EventEvent Ticket BrokersTicket Brokers

Sales Price + Service ChargeSales Price + Service Charge• Game Marketing, Advertising, Tech Game Marketing, Advertising, Tech

SupportSupport• Customer Service, Sales Force, …Customer Service, Sales Force, …

Complaint: Service Fees Too HighComplaint: Service Fees Too High

Goal of StadiumGoal of Stadium Create Create ValueValue in Time Spent @ Park in Time Spent @ Park AttractAttract More Spectators More Spectators Make Make “Experience”“Experience” Bigger & Better Bigger & Better

INSTADIUMINSTADIUM®® TECHNOLOGY TECHNOLOGY Seat side concession ordering, replay, Seat side concession ordering, replay,

player statistics, . . . player statistics, . . . Define: REVENUE STREAMDefine: REVENUE STREAM

Media DistributionMedia Distribution

                                                                                                                    

Delivering Sports Events with Delivering Sports Events with MEDIAMEDIA Television Television -- Radio-- Radio InternetInternet -- Satellite -- Satellite Other?Other?

Rights to DistributionRights to Distribution

Networks Buy “Rights” to BroadcastNetworks Buy “Rights” to Broadcast Advertisers Buy Advertising Time During Advertisers Buy Advertising Time During

BroadcastBroadcast Sponsors pay for Exposure from BroadcastSponsors pay for Exposure from Broadcast

Media Revenue goes to Team or LeagueMedia Revenue goes to Team or League ““REVENUE SHARING”REVENUE SHARING” ““MEDIA RECEIPT”MEDIA RECEIPT”

                                    

Reliance on Media MoneyReliance on Media Money

Average Gate & Media Revenues in Average Gate & Media Revenues in 19991999

SportSport Avg GateAvg Gate Avg MediaAvg Media

MLBMLB ------ $30.6 Mil$30.6 Mil

NFLNFL $26.7 $26.7 $65.4 Mil$65.4 Mil

NHLNHL $24.2 $24.2 $ 6.3 Mil$ 6.3 Mil

NBANBA $24.1 $24.1 $21.2 Mil$21.2 Mil

Benefits of Media RightsBenefits of Media Rights

Guaranteed Mass AudiencesGuaranteed Mass Audiences Specifically Young Male Target MarketSpecifically Young Male Target Market

Rating are Declining in All ProgrammingRating are Declining in All Programming Slower in Sports ProgrammingSlower in Sports Programming

NFL Football remains the most watched NFL Football remains the most watched programmingprogramming

Companies can use sports to Create & Maintain Companies can use sports to Create & Maintain their their IMAGEIMAGE

Cable & Satellite Cable & Satellite

““Direct Broadcast” Cable & Satellite Direct Broadcast” Cable & Satellite ServicesServices DirecTV, PrimeStar, Dish Network, Digital CableDirecTV, PrimeStar, Dish Network, Digital Cable

Offer Specialty BroadcastingOffer Specialty Broadcasting Provide Specialty Target Markets for AdvertisingProvide Specialty Target Markets for Advertising Provide Advertisements & Pay Per View StatisticsProvide Advertisements & Pay Per View Statistics

                                                           

                                   

            

Summary of DistributionSummary of Distribution

Moving Product from Producer to ConsumersMoving Product from Producer to Consumers Move through Distribution ChannelsMove through Distribution Channels Overseen by Channel MembersOverseen by Channel Members ““Middle-Man” – Wholesaler,Distributor,Retailer…Middle-Man” – Wholesaler,Distributor,Retailer… Retailer Image – Important Development & UseRetailer Image – Important Development & Use Stadium as Place For Distribution & Spt ConsumptionStadium as Place For Distribution & Spt Consumption Media Distribution / Broadcast of Events = DistributionMedia Distribution / Broadcast of Events = Distribution New Stadia & Media Rights = Big Money for TeamsNew Stadia & Media Rights = Big Money for Teams