Financing Sport

by Howard, Dennis Ramsay

• ISBN13: 9781885693389
• ISBN10: 1885693389
• Edition: 2nd
• Format: Hardcover
• Copyright: 2003-10-01
• Publisher: FITNESS INFORMATION TECHNOLOGY

Summary

The contemporary sport manager must be an entrepreneur who uses marketing and financing skills to yield optimum social and economic benefits. Financing Sport Second Edition provides the most in-depth exploration of traditional and innovative revenue acquisition methods for sport organisations. The first edition of this groundbreaking text published in 1995 has been adopted in universities throughout the world and has been translated into Chinese and Japanese. Rather than simply updating sections of various chapters -- common to most new editions -- the authors approached each chapter as though writing the book for the first time. The business of sport is fast paced and ever changing. The content of the Second Edition captures the many new and creative ideas managers in sport organisations have implemented in response to their dynamic work environment. The second edition also maintains its original focus on conventional income sources available to sport organisations including ticket sales premium seating options concessions and the sale and execution of corporate sponsorships. The book maintains a strong practical orientation. Numerous vignettes or mini-cases drawn from actual practice are interspersed throughout the book. Students enjoy knowing how capital financing and revenue acquisition practices are actually being used by sport organisations; therefore the authors include numerous real-world examples to illustrate many of the best practices employed by sport managers. This 'nuts and bolts' treatment allows readers to confidently transfer the methods to effective practice.

Table of Contents

CHAPTER 1 Sport in the New Millenium	1	(16)
The Economic Magnitude of Sport
The Alternative Sports Boom
The 90's Boom
The Challenges Ahead
Saturated Marketplace
Taking Advantage of Emerging Technology
Doing More With Less
Organization of the Book
CHAPTER 2 The Challenges Facing College and Professional Sports	17	(34)
The Financial Status of Intercollegiate Athletics
Cost Control Struggle
The Impact of Title IX
The Financial Status of Professional Sports
Growth of Professional Sports
Emergence of Womens' Professional Sports Leagues
Other Successful Sports Properties
The Economic Reality of Professional Sports
Revenues Can't Keep Pace With Expenses
Creative Accounting
Capital Appreciation
The Leagues' Declining Health
Falling Attendance
Declining Ratings
Economic Disconnect
Controlling Player Costs
National Football League
National Basketball Association
Major League Baseball
National Hockey League
Summary
CHAPTER 3 Trends in Sport Facility Investment	51	(52)
Trends in the Cost and Number of Major League Facilities
Description of the Trend Tables
The Evolution of Facility Funding
How Much and Who Pays?
Trends in the Minor Leagues and Colleges
Factors Contributing to Enhanced Private Sector Investment in Major League Facilities
Opportunity Costs
The Equity Issue
Sources of Momentum Undergirding Investment in Major League
Facilities
Owner Leverage
The Community Power Structure
The Increasing Costs Stimulus
The New Facility Honeymoon Effect
The Competitive Balance Rationale
The Rationale for Public Subsidy
Summary
CHAPTER 4 The Principles of Economic Impact Analysis	103	(58)
The Rationale for Economic Impact Analysis
The Mischievous Application of Economic Impact Analysis
The Inviolable Principles
Inviolable Principle #1: Exclusion of Local Residents
Inviolable Principle #2: Exclusion of "Time-Switchers" and "Casuals"
Inviolable Principle #3: Use of Income Rather than Sales Output
Measures
The multiplier concept
Defining geographic boundaries of an impacted area
Interpreting alternative measures of economic impact
Inviolable Principle #4: Use of Multiplier Coefficients Rather than Multipliers
Inviolable Principle #5: Careful Interpretation of Employment Measures
The Magnitude of Economic Impact from Professional Sports Franchises: Some Conclusions
Illustrations of the Implications of Abusing the Inviolable Principles
Consideration of Costs
Impact Costs
Displacement Costs
Opportunity Costs
Doing Economic Impact Analyses
Collecting Expenditure Data
Analyzing the Data
Results of 20 Economic Impact Studies
Summary
CHAPTER 5 Alternate Justifications for Public Subsidy	161	(40)
Increased Community Visibility
Enhanced Community Image
Stimulation of Other Development
Proximate Development
Complementary Development
General Development
Psychic Income
Measuring Psychic Income
Some Conclusions
Summary
CHAPTER 6 Sources of Public Sector Funding	201	(62)
Hard Taxes
General Property Tax
General Sales Tax
Soft Taxes
Tourist Development Taxes
Hotel-Motel Tax
Car Rental Tax
Sin Taxes
Player Tax
Trends in the Use of Public Sector Taxes
Debt Financing
The Use of Tax Exempt Bonds
Full-Faith and Credit Obligations
General Obligation Bonds
Conducting a Bond Campaign
Certificates of Obligation
Public Trust Model
Public-Private Partnership Model
Non-Guaranteed Debt
Revenue Bonds
Certificates of Participation
Tax Increment Bonds
Taxable Bonds
Private Placement Bonds
Asset-Backed Securitizations
Mechanics of Selling Bonds
Bond Ratings
Financial and Legal Advisors
Summary
CHAPTER 7 Sport Enterprises' Sources of Revenue	263	(34)
Luxury Seating
The Revenue Impetus
Marketing Premium Seating
Challenges
Responding to the Challenges
Naming Rights
Professional Sport Venues
College Sport Venues
Why Companies Buy Naming Rights
Key Elements of Naming Rights Agreements
Method of Payment
Length of Agreement
The Impact of Naming Rights' Partner Failings
Shirt and Team Naming Rights
Personal Seat Licenses (PSLs)
The Growth and Magnitude of PSL Programs
How PSLs Work
Summary
CHAPTER 8 Implementation of Public-Private Partnerships	297	(54)
Challenges in Facilitating Public-Private Partnerships
Reconciling Value Systems
The Unfair Competition Issue
Unfair Competition From Non-Profits
The Complementary Assets of Public Agencies and Private Sports
Enterprises
Public Sector Assets
Land Bank
Low-Cost Capital
Tax Waivers
Control Over Permit and Zoning Processes
Private Sector Assets
Management Expertise
Reduced Labor Costs
Adaptability to Scale of Service
Reduced Liability Risks
Public-Private Partnership Models
Public Sector Leasing
Leaseback Arrangements
Public Sector Takeovers
Private Sector Takeovers
Private Sector Pump-Priming
Expansion of Existing Public Facilities
Multiparty Arrangements
CHAPTER 9 Ticket Sales and Operations	351	(36)
Admission Pricing
Professional Sports
Collegiate Sports
Pricing Tickets for Sporting Events
Psychology of Pricing
Expected Price Threshold
Increasing the Sport Consumer's Willingness to Pay
Tolerance Zone
Tactics for Improving Ticket
Differential Pricing
Flexible Ticket Packaging
Money Back Guarantees
Web-Based Ticketing Sales
Organizing Ticket Sales
Types of Tickets
Preseason Sales
Methods of Selling
During Season Sales
Group Sales
Consignment
Discounts
Accounting System
Computerized Ticketing
Printing
Accounting Procedures for Ticket Revenues
Ticket Records
Game Day
Pre-Game Preparations
During Game
Post-Game
Conclusion
CHAPTER 10 Sale of Broadcast Rights	387	(28)
The Business of Broadcasting
Television Ratings and Shares
Total Returns
Sports Media Outlets
National Broadcasters
Regional Cable Networks
Syndicators
Local TV and Radio
Marketing and Managing Broadcast Rights
Direct Sale of Rights
In-House Productions
Revenue Sharing
The Oregon Sports Network
Sports Broadcasting Contracts
National Football League
Major League Baseball
National Basketball Association
National Hockey League
NASCAR
NCAA
The Olympic Games
Golf and Tennis
Boxing
New Technology
Summary
CHAPTER 11 Sales of Foodservice and Souvenir Concessions	415	(18)
Introduction
Historical Perspective
Economic Contribution of Concessions
The Sale of Alcohol at Amateur Sporting Events
Concession Industry Standards
Operating Costs
Concession Revenues
Design Programming
Contracting Versus Self-Orientation
Financial and Operational Quality Assurance
Summary
CHAPTER 12 Nature of Sponsorship Exchange	433	(46)
Differentiating Sponsorship and Donations
Evaluation of Sport Sponsorship
Factors Stimulating Sponsorship Growth
Benefits Sought from Sponsorship by Sport Organizations
Associated Costs
Benefits Sought From Sponsorship by Business Organizations and the Consumer's Purchase Decision Proccess
Increased Awareness
Image Enhancement
Demonstration Platform
Hospitality Opportunities
Product Trial and Sales Opportunities
Risks Associated With Business Sponsorship
Summary
CHAPTER 13 Corporate Concerns in Sponsorship Partnerships	479	(38)
Sponsorship Objectives
The Fit Between Sports Property and a Sponsor's Brand
Congruency of Image
Congruency of Target Markets
Leveraging the Sponsorship Platform
Media Involvement
Other Potential Platform Elements
Ambush Marketing
Ambush Strategies
Does Ambushing Work?
Strategies to Counter Ambushing
Is Ambushing Ethical?
Length of Commitment
CHAPTER 14 Soliciting Sponsorships From Business Organizations	517	(38)
Developing a Set of Potential Company Investors
Sponsorship by Tobacco and Alcohol Companies
Tobacco Sponsorship
Alcohol Sponsorship
Packaging Sponsorships
Pricing Sponsorships
Preparation of Proposals
Communicating the Proposal
Preparation
Presentation
Handling Negative Reactions
Closing
Criteria Used by Companies to Screen Proposals
Handling Rejections
The Contract
Working Together to Make It Happen
Post-Event Followup
Summary
CHAPTER 15 Measuring the Impact of Sponsorship	555	(18)
Linking Sponsorship to the Communications Process
Measuring Media Equivalencies
Measuring Impact on Awareness
Measuring Impact on Image
Measuring Impact on Intent to Purchase
Measuring Impact on Sales
Summary
CHAPTER 16 Fundraising	573	(32)
Fundraising and Intercollegiate Athletics
Annual Donor Programs
Athletic Support Groups
Bringing ASGs Under Institutional Control
Approaches to the Organization and Operation of ASGs
The Point System
Major Gifts
Outright Gifts
Gifts-in-Kind
Matching Gift Programs
Endowments
Planned Gifts
Gifts of Life Insurance
Bequests
Charitable Remainder Trusts
Systematic Approach to Soliciting Major Gifts
Prospecting and Targeting
Preparation
Presentation
Closing
Follow-up
Anatomy of a Major Gift Campaign: UNLV's Vision Project
Campaign Organization
Campaign Purpose and Appeal
Campaign Structure
Conducting the Campaign
Cause-Related Marketing
Summary
About the Authors	605	(4)
Index	609