The Business of Sports Marketing

Transcription

1 2016 NYU Stern School of Business Marketing Department, EMT Program The Business of Sports Marketing MKTG-GB (1.5 credits) 44 West 4 th St. KMEC W 6:00 9:00 pm (six weeks) Al Lieberman Peter Land Executive Director, Entertainment, Partner, Finsbury Media & Technology Program E: landpetera@hotmail.com E: alieberm@stern.nyu.edu T: T: Office Hours: By appt. Office: Tisch Hall Rm 903 TF: Jonathan Scott Office Hours: Wednesday 3-4:00 pm Jas1443@stern.nyu.edu COURSE BACKGROUND This is a specialized course for the MBA student interested in expanding his or her knowledge of the sports industry as a business and as an economic force. It will provide students with a framework for understanding the scope of the sports business across the various leagues, the venues, the sponsors, the media companies, the agencies, the athletes and their relationships to internal and external factors, and the marketing applications that drive this complex and growing multi-billion dollar industry. The business of sports has become a persistent and integral part of our economy, specifically in the multi-media and entertainment arenas. The activities, deals, and general business practices are front-page news stories, as conglomerates like Disney, Comcast, CBS, NewsCorp, Yahoo, YouTube, Twitter, Facebook, and TimeWarner have become heavily invested in the business of sports as team owners and/or media conduits of programming. The business of sports has grown significantly with more professional and collegiate teams and amateur events competing for fans, airtime, media coverage and revenues, licensing revenue and sponsorship dollars. This has made the management of events, venues and athletes, as well as the accountability of sponsorship and celebrity endorsement high priority with bottom line relevance. This course is an elective for the student interested in adding to their understanding of the Entertainment, Media & Technology (EMT) program sectors. Through lectures by

2 leading executives within the sports industry and professionals who provide the support system, along with selected readings, videos and case histories the student will understand how the various parts of this complex process interface and interact. The course covers some of the most significant and critical social, ethical and humanistic issues facing the sports industry. In class lectures and through several cases we will analyze the impact of diversity, gender, contract negotiation, and issues surrounding athletes behavior. We will cover labor issues and the impact of collective bargaining, and the protection of players rights. Our guests and readings from several texts deal with costs of venue ticketing, income from media rights, sponsorship and niche advertising targeting specific groups. We analyze compensation of players, teams, leagues and owners in terms of distribution of income. We also examine the impact of digital rights management by major sports entities. We study the importance of the World Series, Super Bowl, World Cup, and the Olympic Games in explaining public/private partnerships, corporate citizenry, political issue, and the financial impact of these events. We also discuss the importance of multicultural marketing as major U.S. leagues look to expand their businesses outside the U.S. COURSE OBJECTIVES 1. To provide students with an overview of the sports marketplace as a business -- which generates enormous revenues and a growing export income -- through lectures, readings, case studies and videos. 2. To examine the various elements, factors, regulations, parameters, and characteristics that make up the totality of the sports industry and their relationship to the overall marketing and promotion mix. 3. To learn the basic concepts, terms and principles, and vocabulary that are key to understanding the sports business, even for non sports fans. 4. To study the activities of the key components (leagues, teams, athletes) within the sports industry and the sponsoring companies (brands) and media companies working with them. 5. To analyze and learn how to evaluate decisions made by senior league officials, owners, marketing and media executives regarding problems and opportunities as they arise, and how they constitute working agreements, and flexible nonformulas, and their long-term implications. 2

3 COURSE REQUIREMENTS Class participation will be extremely important, since much of the study of the sports industry is obtained from articles, on the job observation, guest speakers, and some selected texts. In addition there will be case studies with written reports. The class will be graded on the following basis: Grading Class participation 10% Cases 25/25 % Presentation/Final paper 20/20% INSTRUCTOR POLICIES Attendance and Lateness will lower your class participation grade significantly. Late assignments are not accepted. If you miss any assignment deadlines, i.e. at the start of a class period on the due date, you forfeit a grade on that assignment. HBS CASES available at the Professional Bookstore, REAL Madrid, Maria Sharapova: A Champion, NFL E- Strategy, LeBron James Required Reading: Sports Business Daily and Sports Business Journal (details to come re online access) Recommended Reading: Business of SPORTS by Foster, Greyser, Walsh, Thomson/Southwestern Publishing Should be available soon at the NYU Bookstore 3

4 SCHEDULE SIX WEEKS EVERY WEDNESDAY FOR THREE HOURS Wednesday February 10 Wednesday February 17 Wednesday February 24 Class 1: 6-7:25 pm Introduction, syllabus, assignments/overview Al Lieberman/Peter Land Class 3: 6-6:55 pm The Impact of Fantasy Sports Case Due: Maria Sharapova Sabrina Macias, DraftKings Class 5: 6-6:55 pm The Agent and Agency Business Jeff Filiberto, CAA Break 7:30 7:45 pm Break 7 7:15 pm Break 7 7:15 pm Class 2: 7:45 8:55 pm The Power of Media Len DeLuca, WME/IMG Class 4A: 7:15 8 pm Sponsorship 101 Peter Land Class 4B: 8 8:55 pm Sports Meets Social Robert Shaw, Facebook Class 6A: 7:15 8 pm Licensing 101 Peter Land Class 6B: 8 8:55 pm Analytics Driving Strategy Barry Blyne, ESPN Spring Break March 16, 2016 NO CLASS Wednesday March 02 Wednesday March 09 Wednesday March 23 Class 7: 6-7:30 pm Case Due: NFL E-Strategy Global Events/Women s Sports Peter Land Class 9: 6-7:30pm Labor Unions and Collective Bargaining Jordan Schlachter, NBPA Class 11: 6-7:30pm Presentations Power Point Term Paper Due Break 7:30 7:45 Break 7:30 7:45 Break 7:30 7:45 Class 8: 7:45-8:55pm League and Team Structures Case Due: REAL Madrid Term Paper Outlines Due Nan Moses, MLS Class 10: 7:45 8:55pm Overall class recap Peter Land Class 12: 7:45 8:55pm Presentations Power Point 4

5 SCHEDULE PER SESSION 1-2) February 10 Topic: Course Introduction: Professors Lieberman/Land _ What is Sports Marketing? Definitions, industries involved, historical perspective, and growth in recent years of major sectors. Teams assembled, topics selected, syllabus & assignment review. 1-2) February 10 Len DeLuca, SVP, WME/IMG _ Media Right Fees/Negotiations and the critical role television and digital plays in the sports marketplace. 1. Have negotiations become more difficult? Why? 2. How will the cable/network mix shaking out in the next decade? 3. What role with satellite/demand/web/tv/other technologies play in the future? 4. Are rights fees for the major events/properties going to keep rising and if so, what does that mean for the smaller sports? 5. What is ESPN s role is in terms of presenting positive sports messages to young viewers? 6. What s the future for women s sports on ESPN? Extreme sports? 3-4) February 17 Sabrina Macias, Head of Communications, DraftKings _ Topic: The Impact of Fantasy Sports 1. How did fantasy sports evolve? 2. What s the difference between DFS & season-long fantasy? 3. How does DraftKings work with league and network partners? What s the future globally? 5

6 3-4) February 17 Land _ Topic: Sponsorship How are deals constructed? 2. Where are the key issues? 3. What is an activation strategy? 4. How is sponsorship measured? 5. What are the differences between team and league sponsorships vs. those of individual athletes? 3-4 February 17 Robert Shaw, Strategic Content Partnerships, Facebook _ Topic: Sports Meets Social Questions to be Answered: 1. How does Facebook work with leagues, teams & athletes? 2. How do sports drive traffic and engagement? 3. What s optimal role of media partners with Facebook? 4. Does Facebook impact sponsors ROI? CASE WRITE-UP DUE: Maria Sharapova 5-6) February 24 Jeff Filiberto, VP, CAA _ Topic: The business of sports agents and agencies 1. How do agents earn income? 2. What do they see as their primary role? 3. How has the role of the agent evolved over the years? 4. How are contracts negotiated? 5. Beyond athlete representation, what other services do agencies provide? 6

7 5-6) February 24 Land _ Topic: Licensing How does sports licensing work? 2. How is revenue divided? 3. What are the legal implications? 4. How big is the overall business? 5. What are the global implications? 5-6) February 24 Barry Blyne, VP, Consumer Insights, ESPN _ Topic: Analytics Driving Strategy 1. How does research play a role in ESPN s world? 2. What are the most recent analytics that are used to make broadcast decisions? 3. Are there any upcoming issues/decisions that we can expect from ESPN and how will research have an impact? 7-8) March 02 Nan Moses, Sponsorships Manager, MLS _ Topic: The Structure of Leagues and Teams 1. What is the business relationship between leagues, teams and athletes? 2. How do they share revenue? 3. What are the rights that leagues have vs teams and athletes? 4. What are the media obligations? 5. How do sponsors and networks work with each entity? NFL- E Strategy Case Due (Read and prepare for discussion) 7

8 7-8) March 02 Land _ Topic: Globalization of Sports Business; women s sports 1. How has the sports business become more global? 2. What does that mean for the U.S. sports business? 3. Has it been dilutive in any way? Where is it headed? 4. What are leagues and athletes doing about it? 5. How do sponsors and networks view globalization? 6. How has women s sports evolved in the marketplace and what does the future look like? CASE WRITE-UP DUE: REAL MADRID TERM PAPER: OUTLINE DUE table of contents, team topic, team focus, confirm team members 9-10) March 09 Jordan Schlachter, CMO, NBA Players Association _ Topic: Collective Bargaining, Labor Issues Questions to be Answered: 1. What is the collective bargaining agreement? 2. Why is it critical? Is it fair to both sides? 3. Key issues surrounding complex sports negotiations? 9-10) March 09 Land Topic: Recap semester _ Lieberman: Sharapova Case SPRING BREAK March 15-19, 2016 March 23 TERM PAPERS DUE 11) March 23 Team Presentations minutes Power Point 12) March 23 Team Presentations minutes Power Point 8

9 SPORTS TERM PAPER Assignments Generic information applies to all term papers: 1. All papers should have a bibliography, some appendices, and more than web mentions to support your research including some articles, books, etc. 2. The last and most important section of the paper should provide the focus and should describe the problem or topic or main issue under consideration. 3. It should demonstrate a grasp of the problem, current status and team recommendation. It should run about 5 pages for the short papers and 6+ pages for the longer papers. Team 4-5 persons 20 page papers, with 15 pages on background, industry landscape, marketing developments 5 pages on the problem. Issues (see above) Team 6 persons 25 page papers, with 18 pages on background, industry landscape, marketing developments 7 pages on the problem. Issues (see above) Please don t use material from the HBS cases since we will all have read them and we are looking for fresh material. Any questions please soon, so that you have the maximum time for developing the paper. Good luck. Al Lieberman Please respect Academic Integrity 9

10 The Business of Sports Marketing Topics 1) Major League Baseball There is an increasing number of Hispanic players in MLB. How can MLB better capitalize on this growing and increasingly important market segment? 2) National Basketball Association Is the influx into the NBA of high school players and players who play for one year in college good or bad for business and why? Should the NBA raise (or lower) its age limit and what are the implications for doing so? 3) National Football League The NFL is the dominant sports league in America but has faced criticism for player behavior issues, player safety and for being too violent. What could the NFL do to protect and enhance its reputation going forward? 8) Tennis Does the U.S. market need home-grown female and male superstars for tennis to thrive? Why or why not? 9) NASCAR Is the New York City area viable for a NASCAR race? Why? Why not? 10) College Sports With the football playoffs, some schools dropping football, challenges to Title IX and unionization all impacting the business of college sports, what strategies should school presidents consider when looking at athletics? Should college athletes get paid? Why or why not? 11) Choose a topic for approval 4) National Hockey League Hockey remains under the radar in many parts of the U.S.? Why? How would you market the league to a teen audience? 5) Soccer The MLS has made progress and the men s and women s World Cup are very high profile in the U.S.; but why is this sport so popular in other parts of the world but not in the in the US? Any recommendations as to how to generate more excitement for the sport in the US? 6) X Games Extreme Sports has developed as its own industry in the past several years. What is the future for this category? 7) Golf The popularity of Jordan Spieth this year has helped generate more excitement for the PGA TOUR, but its popularity has ebbed and flowed in the last several years. Overall what has that impact and Tiger s diminished presence been on the business of golf? 10

11 The Business of Sports Case Questions Please answer these questions on two pages, your choice double or single spaced. Do not have to repeat the questions but be sure you use the correct Q number. Maria Sharapova Case Questions (HBS CASE (A)) 1. What were the key steps in the early stages of Maria s career development? 2. From the case and class discussion, how does the Business of Sports impact players careers (outside their sports activities)? 3. The case spends several pages on the Tennis sector of Sports. Summarize in bullet format the key elements of Tennis industry (highlights). 4. What part did Max Eisenbud play in the development of Maria s career? 5. How did IMG evolve its importance to the sports and talent business, specifically in tennis? 6. Maria s Future Use the exhibits and case discussion to analyze the tennis star s next major steps. Is this a good direction, are there precedents for this process, or are we breaking new ground? 7. Is there an alternative scenario that you would recommend if you were her agent, her manager or her parent? Real Madrid Club de Futbol Case Questions (HBS CASE ) 1. What differentiates Real Madrid from other Soccer clubs? 2. What provides the revenue stream from which the club benefits? 3. Explain the governing body of Soccer, different from the US sports leagues? 4. What constitutes expenses for a Soccer club and what are the problems for most countries related to these expenses? 5. Explain transfer fees and its impact on the public share offers of clubs, and the reverse. 6. Describe the phenomenon called Galacticos 7. Branding, content and market positioning are not often associated with soccer clubs, particularly International clubs. What is the importance of these terms to the Real Madrid franchise 8. Why is International expansion important to Real Madrid? What are their plans to implement these goals? 9. What does the future look like?? NFL s Digital Strategy & Lebron James Cases For discussion only 11