Financial Impact  Big league pricing and planning  Total Organizational Value  NFL Teams Mid 1980’s - $70 million  Today – $1 billion  Who’s the most valuable  Financial planning for a sports team  Sport Stadium Leases  Dallas Cowboys - $1 Million per year  Bringing all the resources together Big League Pricing and Planning  Professional athletes contracts  Corporate sponsorships  Stadium names  Television revenue  Commercials Prestige, Power, Profitability  Perks and payoffs  Political clout  Professional teams and the community  Sociological ties to a professional team  The bottom line Professional Teams and the Community  Teams bring new jobs to a city  Boost for surrounding businesses  Community service  New revenue (newspaper, taxes, etc.) Sociological Ties to a Professional Team  City’s “image enhancement”  Residents feel pride  Wholesome family entertainment  Common Interest- Fans have something to talk about The Bottom Line  Winning = Revenue  Winning is everything in sports  Special contract incentives for winning  List three benefits a professional team brings to a community? Attracting a Professional Team Distributing the Game  Individual teams are separately operated businesses  Cartel—a combination of independent businesses formed to regulate production, pricing, and marketing of a product

 The league controls the distribution of the teams How Distribution Is Decided  Region with a large potential customer base  Owner must have financing  Stadium to attract fans  amenities Attracting a Sports Team  It takes money  And more money  Cashing on high revenues  Another option  Owned by community (Green Bay Packers) Agents, Managers, and Ethics Show Me the Money  Agent—the legal representative of a celebrity  Athletes won the right to become free agents Polishing the Marketing Value  Professional athletes ultimately responsible for their own behavior

 National Association – Rookie Training Program

 Illegal behavior may hurt ability to attract Sponsors & Endorsements Handlers  Handlers—sponsor-paid individuals who work closely with athletes who are unable or unwilling to police themselves  For athletes to remain valuable to sponsors, they must behave

 Neither can afford negative publicity Advisors  Financial and business counselors  Advisors keep the athlete and sponsor together for the benefit of both

 30 for 30 – Broke

• Average career of pro athlete = 3 Years • 60% of NBA players and 78% percent of NFL players go broke within five years of retirement

Read more: http://smokingsection.uproxx.com/TSS/2012/10/espn-30-for-30-broke#ixzz2Mmwm9H8o Athletes Declare Bankruptcy Kenny Anderson, Wally Backman, Charlie Batch, Bruse Berenyi, Riddick Bowe, Randy Brown, Mark Brunell, Bill Bucker, , Dale Carter, Jack Clark, Raymond Clayborn, Derrick Coleman, Dermontti Dawson, Jim Dooley, Lenny Dykstra, Luther Elliss, Eddie Edwards, Chris Eubank, Rollie Fingers, Archie Griffin, Ray Guy, Tony Gwynn, Dorothy Hamill, Scott Harrison, Steve Howe, Harmon Killebrew, Bernie Kosar, Terry Long, Rick Mahorn, Harvey Martin, Deuce McAllister, Darren McCarthy, Denny McLain, Craig Morton, Greg Nettles, Jonny Neumann, Gaylord Perry, John Arne Riise, Andre Rison, Rumeal Robinson, Manny Sanguillen, Warren Sapp, Billy Sims, Leon Spinks, Sheryl Swoopes, Roscoe Tanner, Lawrence Taylor, Duane Thomas, Bryan Trottier, Mike Tyson, Johnny Unitas, Michael Vick, Antoine Walker, Danny White, Ray Williams, and Rick Wise. http://www.businessinsider.com/a-shocking-list-of-athletes-who-have-declared-bankruptcy-2012-10 Do Ethics Count?  Ethics—a system of deciding what is right or wrong in a reasoned and impartial manner

 Agents contacting college athletes Ethics and Character Matter  Lack of mature adult role models  Media Influence - Frequent news accounts of unethical behavior by politicians, sports and entertainment figures, and religious leaders

 Can result in publicity that interferes with a marketing plan