Chapter 1

Classroom Activity
Lecture Outline
Learning Activities

Classroom Activity

This classroom activity is intended to occur before beginning the lecture for chapter 1. The instructor divides the class into four, six, or eight groups (depending on the size of the class) and has each group do the following:

Create definitions for sport and sport management.
List career opportunities they believe the sport management field has to offer.
Place the items on the list into the three product segments of the sport industry: production, performance, and promotion.
Indicate what they believe might be unique about sport management versus other fields of study.
Identify specific tasks sport managers will engage in during their careers.
Discuss challenges and opportunities regarding technology, ethics, and social responsibility.

The intent of this exercise is to address key points before the lecture begins. Key points of the chapter are the following:

Defining sport and sport management
Nature and scope of the sport industry
- Sport industry settings
- Types of sports
  - Traditional
  - New activities
- Sport industry segments
  - Product type model
  - Economic impact model
  - Sport activity model
- Unique aspects of sport management
- Sport marketing
- Financial structures
- Career paths
- Social institution
- Sport management competencies
  - General
  - Organization
  - Information
- Challenges and opportunities
  - Technology
  - Ethics
  - Globalization
  - Social responsibility

Lecture Outline

Summary

In this chapter, sport is broadly defined as (1) “all forms of physical activity which, through casual (informal) or organised participation, aim at expressing or improving physical fitness and mental well-being, forming social relationships or obtaining results in competition at all levels” and (2) “any activity, experience, or business enterprise focused on fitness, recreation, athletics, or leisure.” The sport industry can be conceptualized based on (1) the various settings in which it occurs, (2) the many types of sporting activities that exist, and (3) the various industry segments into which different sport businesses and organizations can be categorized. Three models of segmentation describe the sport industry: the product type model, the economic impact model, and the sport activity model. Four unique aspects of sport management are sport marketing, the sport enterprise financial structure, career paths, and the power of sport as a social institution. Sport managers should possess general, transferable competencies as well as competencies specific to organization management and information management. People who work in the health care industry should also possess these competencies. The next generation of sport managers will face challenges associated with technology, ethics, globalization, and social responsibility. Enlightened sport managers of the future will be competent in the technical aspects of their jobs and will also be agents of change, both in the management of sport and in the larger society.

Learning Objectives

After studying this chapter, you will be able to do the following:

Compare and contrast different definitions of sport and identify a variety of activities that fall within these definitions.
Differentiate between sport and sports.
Identify several different settings in which sporting activities occur.
Discuss examples of traditional and nontraditional sporting activities.
Explain three different ways of organizing (segmenting) the sport industry.
Identify and explain four unique aspects of sport management.
Contrast the bureaucratized and competency-based models of organizational design.
Discuss sport management as a career field and as an academic major and identify a variety of positions available in sport management.
Identify and explain competencies required for success in a variety of sport management jobs.
Identify and discuss personal and professional qualities shared by outstanding sport management students and professionals.
Identify and discuss opportunities and challenges facing sport managers of the future, including some of the questions that sport managers will be required to answer and decision-making strategies they can use.
Discuss the International Year of Sport and Physical Education.

Introduction
1. Walter O’Malley
  1. In 1957, president and chief stockholder of the Brooklyn (now Los Angeles) Dodgers Baseball Club, anticipated the future growth of organized sport and predicted the need for professionally prepared sport administrators.
  2. O’Malley wrote a letter to Dr. James Mason, a faculty member at Ohio University, stating the following:
2. Letter to Dr. James Mason
  1. Where would one go to find a person who by virtue of education had been trained to administer a marina, race track, ski resort, auditorium, stadium, theater, convention or exhibition hall, a public camp complex, or a person to fill an executive position at a team or league level in junior athletics such as Little League baseball, football, scouting, CYO [Catholic Youth Organization], and youth activities, etc. . . .
  2. A course that would enable a graduate to read architectural and engineering plans; or having to do with specifications and contract letting, the functions of a purchasing agent in plant operations. There would be the problems of ticket selling and accounting, concessions, sale of advertising in programs, and publications, outdoor and indoor displays, and related items. . . . (Mason, Higgins, & Wilkinson, 1981, p. 44)
3. Creation of the First Sport Administration Program
  1. As a result of that inquiry, Mason and several of his colleagues created a master’s-level sport administration program at Ohio University (OU).
  2. Inaugurated in 1966, the OU program was the first recorded, university-sponsored attempt to provide a graduate-level curriculum specifically designed to prepare students for jobs in a variety of sport-related industries.
4. Growth of Programs Globally
  1. The idea caught on, and at last count, there were 158 undergraduate sport management programs and 103 graduate programs in Australia, Canada, Great Britain, New Zealand, and the United States (Comfort, 2005a, 2005b).
  2. In addition, hundreds of college students in other countries, such as Switzerland, Spain, Ireland, Netherlands, Italy, Belgium, and Austria, are also studying sport management.
Defining Sport
1. The Council of Europe
2. Pitts, Fielding, and Miller
  1. Similarly, Pitts, Fielding, and Miller (1994) stated that sport is “any activity, experience, or business enterprise for which the primary focus is fitness, recreation, athletics, and leisure related” (p. 18).
  2. According to these definitions, sport does not have to be competitive, nor does it always require specialized equipment or rules; in fact, sport includes activities such as working out, swimming, running, boating, and dancing.
Defining Sport Management
1. Pitts and Stotlar
2. University Academic Programs
3. Some Confusion
4. Quality Versus Title
Nature and Scope of the Sport Industry
1. VanderZwaag
  1. School and college sports programs
  2. Professional sport
  3. Amateur sport organizations (e.g., US Olympic Committee, US Ski and Snowboard Association, USA Swimming)
  4. Private club sport
  5. Other commercialized sport establishments (e.g., bowling alleys, ski resorts, and public golf courses)
  6. Arenas, coliseums, civic centers, and stadia
  7. Community recreation sport programs
  8. Industrial sport programs
  9. Sport programs in social agencies (Young Women’s Christian Association, Young Men’s Christian Association, Jewish Community Center)
  10. Military sport programs
  11. Sport marketing and consulting firms
  12. Developmental programs for sport (e.g., Women’s Sport Foundation, National Golf Foundation, Special Olympics)
  13. Corporate sponsors (e.g., LPGA Jamie Farr Kroger Classic, Volvo International Tennis Tournament)
  14. The sporting goods industry
  15. The sport news media (e.g., print and broadcast)
  16. Academic programs in sport management
Types of Sports
1. Traditional Sports
  1. Another way to look at the sport industry is to examine the many types of sports that exist.
  2. You are already familiar with traditional sports such as basketball, tennis, golf, American football, swimming, and soccer.
2. New Activities
  1. Pitts and Stotlar (2002) identified the following new activities and sports that have appeared on the scene lately:
    1. several varieties of aerobics,
    2. in-line skating (Rollerblading),
    3. boogie boarding,
    4. snow kayaking,
    5. parasailing,
    6. ice surfing,
    7. beach volleyball,
    8. skydive dancing,
    9. ice climbing,
    10. X Games, and
    11. indoor soccer.
  2. Several of these new sports are known as extreme (action) sports, and they are becoming more popular.
Sport Industry Segments
A third approach to defining the nature and scope of the sport industry is to create industry models that show the interrelationships among various segments of the sport industries.

All three models are useful in showing you interesting and different ways to consider the world of sport.
1. Product Type Model
  1. Pitts et al. (1994) proposed three product segments of the sport industry: sport performance, sport production, and sport promotion (as shown in figure 1.1).
    1. The sport performance segment includes such varied products as school-sponsored athletics, fitness clubs, sport camps, professional sport, and municipal parks sport programs.
    2. Examples of products in the sport production segment are basketballs, fencing foils, jogging shoes, sports medicine clinics, swimming pools, and college athletics conferences.
    3. The sport promotion segment includes products such as T-shirts, giveaways, print and broadcast media, and celebrity endorsements.
2. Economic Impact Model
  1. Meek (1997) proposed that the industry could be defined by describing three primary sectors:
    1. Sport entertainment and recreation such as events, teams, and individual participants; sports and related recreational activities; and [associated] spending.
    2. Sport products and services such as design, testing, manufacturing, and distribution of equipment, clothing, and instruments.
    3. Sport support organizations such as leagues, law firms, and marketing organizations (p. 16).
3. Sport Activity Model
  1. Li, Hofacre, and Mahony (2001) proposed a model of the sport industry based on the single characteristic that differentiates sport industries from all other industries: sport activities (i.e., games and events).
  2. These authors defined the sport industry as
    1. the firms and organizations that produce sport activities,
    2. the firms and organizations that provide products and services to support the production of sport activities, and
    3. the firms and organizations that sell and trade products related to sport activities (p. 6).
  3. Figure 1.3
    1. As shown in figure 1.3, the sport-producing sector is the core of the industry.
    2. Six supporting subsectors surround, and overlap with, the activity-producing core.
    3. Organizations in these subsectors either (1) provide products and services to the core organizations or (2) sell or trade products related to sport.
    4. This model differs conceptually from the other two models in that it places sport at the center and illustrates the dependence of the subsectors on the production of sporting activities.
Unique Aspects of Sport Management
Mullin (1980) provided insight into three unique aspects of sport management: sport marketing, sport enterprise financial structures, and sport industry career paths.

A fourth unique aspect of sport added to Mullin’s list is the enormous power and influence of sport as a social institution.
1. Sport Marketing
  1. Sport marketing is unique because the sport product is unlike other products that consumers buy.
  2. It is a perishable product that is not accompanied by any guarantees of customer satisfaction.
  3. People who provide the sport experience cannot predict the outcome because of the spontaneous nature of the activity, the inconsistency of events, and the uncertainty surrounding the results.
  4. Sport marketers, therefore, face unique challenges.
2. Sport Enterprise Financial Structures
  1. Sport enterprises earn a significant portion of revenue not from the sale of a service such as a game, workout, or 10K run, but from extraneous sources such as television rights, concessions, road game guarantees, parking, and merchandise.
  2. Intercollegiate athletics and municipal recreation sport programs might generate revenue from student or user fees, private donations, taxes, rentals, or licensing fees.
  3. One unique aspect of sport is that it invariably attracts consumers who spend more money outside the sporting arena than they spend on the sport itself (e.g., travel, entertainment, souvenirs, and equipment).
  4. This unique financial base requires different practices within the sport setting.
3. Sport Industry Career Paths
  1. Career paths in sport management are not as well defined as those in other vocational areas.
  2. Traditionally, many sport management practitioners have been hired from visible groups, such as intercollegiate athletics or professional sport.
  3. We can find similar career advancement patterns within municipal recreation programs, sport clubs, and professional sports teams.
  4. Growing evidence suggests that success in today’s sport enterprise depends on a good understanding of finance, marketing, and management.
  5. Jay Abraham, president of Sports Careers, states, “Companies are saying, ‘What can you do for me? Can you sell? Can you do accounting?’ They don’t want people coming in saying, ‘I want to work here because I’ve always liked football’” (Clay, 1995, p.160).
  6. Opportunities for people of color and women continue to lag behind opportunities for white males, both in the core sport industry (e.g., professional sport senior executives, athletics directors, general managers) and in the support industries (e.g., broadcast media, sport agents, concessions).
4. Sport As a Social Institution
  1. Sport is a distinctive social activity that is frequently the basis of a person’s social identity (Coakley, 2004). As such, it is a social institution of almost unbelievable magnitude and influence.
  2. The sheer power of sport mandates that people who wish to manage it acquire a sound understanding of its historical, psychological, sociological, cultural, and philosophical dimensions.
  3. Understanding sport marketing and management is essential for prospective managers; equally important is understanding and appreciating the social and cultural implications of sporting activities.
  4. The General Assembly of the United Nations publicly recognized the power of sport “to promote education, health, development and peace,” when it declared 2005 the International Year of Sport and Physical Education (United Nations, 2000-2005, p. 1).
  5. The executive director of the United Nations Environment Programme (UNEP) stated, “The way sports events are run, the way sporting goods companies do business, and the way sports stars conduct themselves on and off the field can have profound effects far beyond the financial bottom line” (Toepfer, 2003, p. 2).
Sport Management Competencies
Research suggests that sport management competencies are universal and have remained relatively stable over time (Cuskelly & Auld, 1991; Danylchuk & Boucher, 2003; Horch & Schütte, 2003; Lambrecht, 1991; Quain & Parks, 1986).
1. Today’s Business World
  1. Besides emphasizing competencies such as personnel management and planning, today’s business world is placing increased importance on communication skills, communication technology, and the ability to interact in a global and multicultural society (Ammon, 2000; Danylchuk & Boucher, 2003; DeSensi, 1994; Li, Kanters, & Ammon, 2002; Masteralexis & McDonald, 1997).
  2. In fact, with respect to competencies expected of sport managers, Horch and Schütte noted, “Interpersonal communication, information tasks and external representation as well as social tasks are central components of their activity. This is why they should be given equal consideration in basic and advanced training frameworks” (p. 73).
2. Figure 1.4
  Most of these competencies are transferable, which means that you should be able to use them in a variety of vocational settings that include, but are not limited to, sport organizations:
  1. General Sport Management
  2. Organization Management Responsibilities
  3. Information Management
3. Personal and Professional Qualities
  1. Employers are also looking for specific personal and professional qualities in graduates of sport management programs.
  2. In addressing the characteristics shared by outstanding sport management students and professionals, Cuneen and Sidwell (1998) noted that, in general, such students:
    1. possess a good work ethic,
    2. are flexible in both their personal and professional schedules,
    3. are people oriented,
    4. are able to perform in committee-type work or other group projects,
    5. are goal-oriented self-starters who have the ability to close out tasks absent of supervision,
    6. are creative, and
    7. are intellectually curious (p. 12).
Future Challenges and Opportunities for Sport Managers
The future will present sport managers with many challenges and opportunities in all segments of the industry—challenges associated with technology, ethics, globalization, and social responsibility.
1. Technology
  1. Danylchuk and Boucher (2003) noted, “The sport industry is already information driven. This will continue to increase and the demand for technically competent employees will continue to accelerate” (p. 293).
  2. Technology is not an end unto itself; it is a means to an end—an innovation that facilitates progress and helps us realize other accomplishments.
  3. In the future, scientific advances in computers and communication technology will play an increasingly significant role in our society and in sport management. This progress will likely be accompanied by acknowledgment of the human need for “high-touch” activities, many of which the sport experience can provide.
  4. The challenge, therefore, is to become proficient in using technology while remaining aware of the need for human interaction in people’s lives and understanding how sport can facilitate such interaction.
2. Ethics
  1. Sport managers must deal with a multitude of questions that require an understanding of ethical principles and moral psychology, such as the following:
    1. How can we best achieve gender, race, and class equity in sport?
    2. Do professional team owners owe primary allegiance to themselves or to the communities that support the team?
    3. Should sport teams appropriate the sacred rituals and symbols of American Indians?
    4. How can we balance academic integrity with the demands of intercollegiate competition?
    5. Should gymnasts and wrestlers sacrifice their youth and health for victory?
    6. Is winning really the bottom line of sport?
    7. Is intercollegiate sport an entertainment business for public consumption or an extracurricular opportunity for student development, or both, or something else?
    8. Should sport programs for men be negatively affected in the name of providing equal opportunity for women?
  2. Ethical Maxims
    The following ethical maxims represent simple and quick considerations a sport manager can use when making decisions (Laczniak, 1983, p. 7; 1985, p. 10):
    1. The Golden Rule
    2. The Utilitarian Principle
    3. Kant’s Categorical Imperative
    4. The Professional Ethic
    5. The Television Test
    6. Globalization of Sport
      1. The need to understand and appreciate other countries and cultures cannot be overstated.
      2. Regardless of the requirements of your curriculum, you can take several actions to prepare yourself to interact effectively in the global community:
        
        Learning a language other than their native tongue
        
        Studying in another country for an extended period
        
        Completing courses that focus on other cultures
      3. These additional steps can broaden your horizons and enhance the quality of your life as you increase your value in the marketplace.
    7. Social Responsibility
      1. In the future, enlightened sport managers will be more aware of their social responsibilities and will deliver their services in ways that reflect this understanding.
      2. Sport managers worldwide will be conscious of environmental concerns and will incorporate this understanding into their business practices.
      3. Environmental concerns that are important to sport managers include air and water quality, land and water use, waste management, energy management, transportation design and services, accommodation design and services, and facilities construction.
      4. Additional evidence of sport managers' sense of social responsibility will include the routine provision of professional childcare services in sport facilities and the targeting of previously untapped and undertapped target markets, such as women and people of differing ages, abilities, and sexual orientations.
      5. Sport managers of the future will also recognize the importance of keeping the sport experience accessible to all socioeconomic groups.
  3. Future of the Sport Industry
    1. In 1989 an entire issue of a now-defunct sport magazine titled Sports inc, The Sports Business Weekly was devoted to predictions about the nature and scope of sport in the 1990s. In a special issue of the Journal of Sport Management, several authors reflected on those 1989 predictions and provided new predictions for the ensuing millennium (Cuneen & Schneider, 2001a).
    2. As shown in table 1.2, these authors’ predictions encompassed sport economics, professional sport, women’s sport, sport gambling, and Canadian intercollegiate sport.
    3. Questions include whether sport will continue to grow; how North American social, political, cultural, and economic trends will affect sport; how global developments will affect sport; and whether the global influence of North American sport will continue unabated (Cuneen & Schneider, 2001b).
    4. Of course, a major question for you is how the answers to these questions will affect your future as a sport manager.
  4. You Can Make a Difference!
    1. The future will most assuredly bring change, something that can be frightening and is frequently resisted.
    2. Progressive sport managers who can anticipate and embrace change will have opportunities to be agents of change who will transform the way sport is managed.
    3. The authors hope you will be one of those managers!

Chapter 1

Classroom Activity
Lecture Outline
Learning Activities

Learning Activities

The Sports Market Place Directory (2005) lists over 13,000 sports organizations, teams, corporate sponsors, sports agents, marketing and event management agencies, and media companies around the world. Your library might have a copy of the directory or it might subscribe to www.sportsmarketplace.com. Using either source, make a list of 10 to 12 sport settings in which you think you might like to pursue a career. Look up examples of each of those settings on the Internet and summarize the information you find there.

If your university subscribes to the Sports Business Research Network (www.sbrnet.com), a market research and publications database, you can also visit that site to investigate hundreds of sport-related organizations.

Go to one or more of the Web sites listed in “For More Information” on page 3. Make a list of 10 jobs that you find at that site and classify them within the three models of sport industry segmentation. Which jobs are most appealing to you? Why are particular jobs more appealing than others?

The book Profiles of Sport Industry Professionals (Robinson, Hums, Crow, & Phillips, 2001) contains the stories of people who work in various facets of the sport industry. Read the stories of people in careers that appeal to you. Write a paper on the steps that they took in their career paths and how they developed the competencies that helped them succeed. What advice do they offer to aspiring sport management professionals?

On pages 2-3 you will find a list of books that address sport as a social and cultural phenomenon. Read one or more of those books, either individually or as a group project. Keep a journal of your impressions of each chapter. Particularly note instances in which you changed your viewpoint on a particular issue or problem and instances in which your viewpoint was affirmed. Explain why you did or did not change your mind.

Table 1.1 presents examples of a variety of sport industry positions categorized within the segments of the Pitts et al. (1994) model. Identify the competencies that you believe are required to be successful in the positions that are of interest to you.

Go to www.career.fsu.edu/ccis/guides/infoint.html for suggestions about how to conduct informational interviews. Then conduct an informational interview with someone who has worked in either a sport or a commercial health-related setting for five years or longer. Ask your interviewee about the use of management skills in the position and how she or he acquired those skills. Write a paper about this person’s position and skills. Focus particularly on her or his experiences in managerial situations, both as a manager and as a lower-level employee. What elements of this person’s experience can help you become a better employee and a better manager?

Analyze your traits in light of Cuneen and Sidwell’s advice. List the desirable traits that you currently possess. List the ones that you need to develop further. How will you go about improving the traits that you already possess and developing those that you do not currently possess?

Read an article about job satisfaction of sport managers. List the facets with which the participants in the study tended to be satisfied. List the facets with which they were less satisfied. Based on what you know about sport management jobs, why do you think that the participants answered as they did? What insights does this study provide you with respect to your future career in sport management?

Robin Gunston (2005) identified five key drivers of change in contemporary sport: the lack of a clear difference between work and leisure, the need for instant entertainment, the increasing control of commercial enterprises over sport, the politicization of sport governing bodies, and the decline of core social values. He predicted that the influence of these drivers could result in the development of four possible types of sport: religiosport, machosport, technosport, and valuesport. Read Gunston’s article and write a paper in which you (1) explain each of the drivers of change, (2) describe each of the possible outcomes, and (3) discuss which outcomes you believe are most probable, giving reasons for your choices.

Excerpts from the code of ethics established by the North American Society for Sport Management are presented on p. 24. This code is designed to serve as a guide to principled decision making. Choose five of these principles and explain how each could influence a specific decision in one, or more, of the sport management positions listed in table 1.1.

Read the article “‘Small’ lies, big trouble: The unfortunate consequences of résumé padding, from Janet Cooke to George O’Leary” (Kidwell, 2004). How were Cooke’s and O’Leary’s transgressions similar? How were they different? How were their separate stages of moral development revealed? What lessons can you learn from these examples?

Study the European model of sport delivery in the sidebar on page 20. List the differences and similarities between that model and the way sport is delivered in your country. What are advantages and disadvantages of each delivery system?

Investigate sport management jobs in countries other than your own. Information in chapters 7 and 8 will be helpful to you. You can also visit some of the numerous Web sites identified throughout the book. Make a list of at least 10 jobs that appeal to you. What qualifications are required for those jobs? How would you go about acquiring each of those qualifications?

Select five of the positions presented in table 1.1. Make a list of at least one specific action that sport managers in each of those positions can take to address each of the environmental concerns listed at www.greengold.on.ca/index.html (Chernushenko, 2001).

Read one of the articles published in the special issue of the Journal of Sport Management (October 2001). Write a synopsis of the reflections and predictions it contains. How will each of these predictions affect the sport job market? Describe your role in the sport environment of the future as described in the article. How will you cope with the predicted challenges and opportunities?

Join the sport management student organization at your university. Run for an office or volunteer to work on a project. The experience that you gain through these sorts of activities will be valuable when you take a position in the sport industry.