Prepared by:
Ma. Theresa L. Puno
Sports Business
Invention of the electronic media of mass communication
led to unpararelled growth in sport of all kinds, along with an
equally huge boom in advertising in those media.
Modern professional sport is now a “big business”
Six Primary Focuses Within The
Sports Marketing Business
1. Properties
2. Corporate Participants
3. Venues
4. Media
5. Merchandising
6. Agencies
PROPERTIES
(teams, leagues, events, athletes, Universities)
These are represented by any entity that can sell their rights,
names or likeness for commercial purposes. Primary examples are
teams (team owners) and leagues but athletes and personalities are also
included in this category.
CORPORATE PARTICIPANTS
(Advertisers/Sponsors)
Corporatios are the sponsors that use sports as a
marketing tool to reach targeted demographic and
psychographic groups. corporations will sponsor properties,
venues and media while using agencies to help them in these
areas.
VENUES
(Arenas/Stadiums)
Venues are the arenas or playing fields for games. Sports venues also
generate revenue from:
gate receipts
concessions
luxury box sales
naming rights
other various arena sponsorsip and advertising deals
MEDIA
(radio, print, tv)
TV and radio show (or commentate on) matches and competitions. There are also
highlights; documentaries and quiz show about sports.
Cable and satellite TV show eventa on a pay-per-view basis.
Internet wherein all teams and major athletes have their own websites where you can find
all kinds of infos about the team, athlete and matches.
Newspapers and magazines are print predictions and results, as well as articles about
the athletes and clubs.
Books and films where biographies are big business
MERCHANDISING
(sporting goods, logoed apparel, merchandise, memorabilia)
It is the fastest growing component of this equation. A
company that produces a $1.50 t-shirt in Vietnam receives a
licensing agreement from a property (UNC, NFL, etc) and now
their $1.50 t-shirt sells for $18.00 because it has logo in it.
AGENCIES
They make a living off charging a high commission
without caring about the players career or goals. Their advice,
expertise and relationships allow them important seats at the
negotiating tables as they advice their clients on how to generate
and or save money in the business sports.
Sponsorship
• Companies sponsor big teams or athletes to get
recognition
• They gain recognition through the teams or athlete's
fanbase
• To sponsor something means you support a team financially
or through products you give them in exchange for the
opportubity to exploit their product in association with
the team
“ Cash and or in-kind free paid to a property in return for access
to the exploitable commercial potential associated with that
property.”
-Forbes