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KIN 580 Part II


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Big 5 Sporting Manufacturers 1920-1970
1999 Growth rates of sporting goods and GNP
1.9%, 4%
2 Symptoms of struggling sporting goods market in late 1990's
Closing of retail stores, overall sales flat compared to growth
7 major causes of struggling sporting goods market in late 1990's
Athletic footwear out of fashion
Irrational growth
Lower participation
Expensive Licenses
Increased focus on entertainment
More purchased electronics
Less phys-ed in schools
2005 growth rate of sporting goods sales
National Sporting Goods Association
6 Segments in Sporting Goods Retail
Specialty Stores
Full Line
Manufatcturer Outlets
General (Wal-Mart)
Direct (Online)
Sporting Goods Manufacturer's Association
Stock-Keeping Unit
Point of Sale
2 Key ratios in sporting goods retail
Sales/Sq Foot
Sales/Other Stores?
% of sales Nike and Easton put into R&D
1% and 3.4%
Bill Thurston
Amherst College Baseball coach against metal bats
SBRNet and it's 4 components
Market Data
Full Text Articles
Web Links
Richard Lipsey
Made SBRNet
IAAM and 6 Professional Services
Int'l Association for Arena Managers
Training, publications, forums, internships, scholarships, ?
4 Concepts in Stadium Design
Special Events, Outside the Venue, No Commoners, Interactive Concourses
Mean % if stadium costs paid by taxpayers in 88-99, 00-02, 03-06
7 funding sources for new stadiums
Public bonds, ticket surcharge, naming rights, luxury bixes, owner investment, league loan, PSL's
Personal Seat License
3 Stages of PSL Development
Priority Seat Points
Seat Option Bonds
3 Standard Issues of PSLs
Duration, transferability and tax write-off
Paul Brown Stadium, 5 revenues and 3 expense streams
Revenue: Ticket sales, luxury boxes, concessions, parking, naming rights
Expense: capital bond, gameday operations, rental fees
Bundled Benefits
Additional projects included in stadium deal (i.e. housing, community/youth center)
Paralized Veterans of America
5 Provisions of ADA concerning stadiums
1% of seating is handicapped, integrated not isolated, companion seats, aisle seats, comparable lines of sight
3 Historical reasons for growth of sponsorships
Increased media coverage, bans on tobacco and alcohol, excessive advertising noise
5 main objectives of corporate sponsors
awareness, lifestyle, image, merchandise and entertainmetn
6 rights that sponsors buy
exclusiveness, use of logo, use of image, official designation, right to service, promos
3 key issues/trends in sponsor business
non sponsors ambush marketing, focus on grassroots and womens sports, savvy sponsors
Cokes 5 steps in developing a sports sponsorship
assessment, alignment, stratagize, activation, evaluate
4 standard sponsor methods for evaluating success
exposures of name, client feedback, sales, image
Joyce Julius Associates
# of Sponsor images
Industry Trends Newsletter
potential of perspective deals
SSSBJ's Sponsor cost per event visitor
Varies $4-$30, depends on demographics and quality of experience
6 basic outlets of sports media
TV, Radio, Newspaper, Magazines, Internet, Books
Formula and purpose of sports media
advertisers -> events/athletes -> demographics
5 Segments of sports TV structure
Over the air, cable TV, Pay Cable, DirecTV, Pay Per View
Regional Sports Network
Estimated start up cost for RSN
$10 Mil
Master Control
Nerve Center
affiliates to distribute the network
3 Top sports radio networks
ESPN, Sporting News, FOX Sports
Sports Broadcasting Act of 1961
exempted big 4 from antitrust laws allowing them to sell broadcast rights as a package
Pooled Rights
selling broadcast rights as a package
Rights Fees
Paying for the right to broadcast
Time Buy
producer buys time from media to broadcast network
Make Good
A promised rating
designated market area - Nielson 210 units
1pt = 1% of households with a TV
1pt = 1% of sets turned on
Top Rated Sports show of all time
1982 SB 49ers vs Bengals 49.1
4 Key categories of sports radio structure
Major Broadcast, satellite, ad-hoc, all sports
4 categories of of sports web sites
Network related, host sites, portals, stand alone
6 major functions of sport websites
basic content, ecommerce, web casting, promotions, games, communications
Premium Content
except for fantasy sports - bust
Nielson Netratings, comScore MediaMetrix, Harris Interactive
Net usage trackers
Single Files
viewings of page
Unique Users
to view page
reach (active and universe)
% of unique users
time spent on site
6 segments of sports magazines
Lifestyle, Sports, Sport Specific, Guides, Industry, Outdoor
4 yardsticks of magazine success
circulation, ad rates, ad pages, splits
the Big 5 sport marketing agencies
IMG, ISL, SFX, Octagon, Host
3 basic functions of sport marketing firms
-create/develop events/atheletes
-manage/promote " "
-match sponsors with events
6 sports elements for marketing agencies to control via integration
merchandise, events, players, media, venues, training
Mark McCormack
IMG founder
IMGs Vertical Integration Strategy
Top Players in the country
Run the events
Run TV Distribution
create TV events
Tennis camp
2 conflicts of interest resulting from integration
owner Button - objective analysis?
PS Star games running AVP Tour
IMG's sports academies
The memories flow chart
Players/Events -> commodified (apparel)
-> enshrined (HOF)
Licensesed/Protected (League, Union)
College Licensing Company
International Association for Sports Museums and Halls of Fame
North America Sports Library Network
7 ways in which HOF creates memories
Induction process, inductee shrine, general exhibits, merchandise, camps, education, library
Top Card manufacturers
Upper Deck, Fleer, Topps
Card Sales slump from 1991-95 and rebound
$1.1 bil to $300 mil
quality sells
Non apparel licensed merchandies
bobbleheads, beanie babies
David Warsaw
sports specialties
non licensed
FBI Fraud Estimation

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