CONTENT/TEACHING OUTLINE
COMPETENCY: 2.00 Discuss ethical and legal implications of sports and entertainment marketing.
OBJECTIVE: 2.03 Discuss personnel issues.
A. Recognize employee issues.
1. Organizational charts are designed to illustrate the chain of command and hierarchy within an organization.
2. All employees should be up-to-date on current issues.
a. Decisions and actions should reflect the company’s stand on issues.
b. Employees are the “face” of the organization.
3. In order to be successful, an organization must have:
a. Benefits and compensation.
b. Collaboration.
c. Communication.
d. Internal rewards.
e. Training and professional development opportunities for staff.
B. Discuss and recognize athlete and entertainer issues.
1. Athletes and entertainers seek to make themselves a brand.
a. Michael Jordan created a brand image for himself.
b. Example: Air Jordan shoes, clothing, and accessories are sold in local retail stores.
2. Consumer buying may be influenced by the endorsers of a product.
a. Athletes and entertainers control what products they endorse.
b. Athletes and entertainers have the ability to influence the market.
3. Agents represent athletes and entertainers in negotiations.
a. Agents understand the legal concepts behind contracts.
b. Agents are paid a percentage of client’s earnings.
c. Handlers deal with difficult athletes or entertainers.
4. Contract disputes with management often result in negative connotations from the media.
a. Disputes affect the value and image of the athlete or entertainer.
b. Example: Major League Baseball contract disputes in the mid-90’s resulted in a player strike. It was not until the homerun race between Mark McGwire and Sammy Sosa that baseball reclaimed a substantial fan base.
5. Collective bargaining can be used in most sports with the exception of Major League Baseball.
a. Excludes MLB because of the Sherman Antitrust Act ruling.
b. Gives players the right to organize, use the agent of choice and protect themselves.
c. Collective bargaining agreements are agreements between players’ associations (or unions) and team ownership/management.
d. A collective bargaining agreement includes:
i. A minimum salary.
ii. Player’s rights.
iii. Medical disability insurance.
iv. Labor rules.
v. Length of contract.
vi. Restrictions of certain activities or behaviors.
vii. Rules for agents.
viii. Player and team travel.
6. Free agency allows players to explore options of moving to another team with little or no financial penalty. Higher player/personnel costs can result from bidding wars for certain players.
7. Salary caps limit the amount a team may spend on contracts.
a. Less profitable teams are protected from continual losses.
b. In the NBA, a luxury tax is paid by teams that exceed the salary cap. This tax is split between less profitable teams.
Teacher Resources
Activity 1
Give students the following scenario:
Each day companies battle for your attention. Whether it is on the radio, television, or in a magazine, companies are constantly trying to get the upper hand and convince you to buy their product. Endorsements and testimonials are often used, especially when the endorser is a famous entertainer or sports figure. In Michael Jordan’s last years of playing basketball for the Chicago Bulls, he actually made more money off the court endorsing products, than he did by playing basketball. With the massive amount of money being spent by companies to get the “best” endorsements, it must work. Identify five products that use celebrity endorsers. You need to identify the product, the celebrity and what has made that celebrity famous. Analyze the relationship between the company and what the celebrity endorser has done for the company. Focus on the following questions:
· Did sales increase after the endorser began working with the company?
· Is the relationship between the endorser and the company long-standing?
· Identify the target market of the product. Does the endorser fit the target market trying to be reached by the company?
· When did the entertainer’s contract start?
· What is the celebrity paid?
Activity 2
Give students the following scenario:
Celebrities and sports entertainers are known for their sometime “bad-boy” behavior. Does it really hurt their career? Does the public really care? You are an investigative reporter for a new entertainment channel. Your assignment is to research a celebrity and a negative issue they have dealt with in their career. You need to provide a one-minute script on the issue for the news anchors, including how the celebrity dealt with the issue and how public perception was altered (in both the long and short run if applicable). Some examples could include:
· OJ Simpson’s murder trial.
· Pete Rose’s ban from MLB.
· Oprah Winfrey being sued by Texas cattlemen.
· Tonya Harding’s involvement in the plot to injure her Olympic competitor.
Activity 3
Give students the following scenario:
Using the software program of your choice, construct an organizational chart for a new high school in your area. The organizational chart should only include the athletic department. Make sure you define duties and responsibilities under each position. For effective research, you need to reflect how your high school’s athletic department is structured and you may want to talk with coaches or the athletic director.
Activity 4
Give students the following scenario:
We have established celebrity endorsements mean a great deal to companies and their marketing campaigns. You work for a chain of gym and fitness centers that are ready to expand nationally. Your boss has asked you to identify five athletic or celebrity endorsers you would like to see in the new advertising campaign. Your assignment is to select the five celebrities and then write a memo to your boss ranking them in priority from the most to least appropriate match for the campaign. For each, you need to outline why you selected that celebrity and what you think he/she brings to a national marketing campaign.
Other Resources
2.03 PowerPoint Presentation
Please see the Local Performance Opportunities section on pages 8-9 of this guide. If you are using the CD, this document is located in the folder titled “Local Performance Opportunities.”
Sports and Entertainment Marketing II
Summer 2004
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