sport facility management: organizing events and mitigating risks

Sport Facility Management: Organizing Events and

Mitigating Risks

Chapter 1

Introduction

Sport Facility Management: Organizing Events & Mitigating Risks

Preliminary Thoughts

• Common Denominators in Sport and Entertainment Event classification Type of facility Risk association


Preliminary Thoughts(cont.)

• Sport facilities have a long and storied history

• 1966: First sport management program started at Ohio University

• Understanding large facility events helps transition to smaller venues


Globalization of Sport

• Rupert Murdoch Owner of Fox Sports, LA Dodgers, Sky

TV

• NFL Kurt Warner played in NFL Europe

• MLB Plays in Mexico, Japan, Puerto Rico

• World Cup 2002 Brazil v. Germany in Japan


Violence• 1972 Olympics

Palestinian attack on Israelis

• 1996 OlympicsBombing in

Atlanta• 1999

Metal detectors installed before high school basketball game

• 2002 College Football Brawls Fans tearing

down goalposts• Crowd

Management Philosophy Foreseeability


September 11th, 2001

• Facility managers must reassure guests of their safety

• Budgets may increase by 40%• Insurance companies reluctant to

insure• Event risk profile


Other Concerns

• Attendance downturn• Economy• TV ratings


Industry and Technology Changes

• Spectator-based to entertainment experience

• Quality over quantity• Internet sales

ATTM

• “Smart” fan cards• Wireless at seats


Conclusion

• 2001-2002 23% increase in construction of sport

facilities

• Need for trained personnel who can manage and mitigate risk

• The future of sport management

Chapter 2

Planning and Producing an Event


Defining Event Management

• Getting things done through people• Complex, surprising, ambiguous• Satisfying stakeholders

Participants, sponsors, spectators


What Is Sport Event Planning and Production?

• Elements of management occurring within an organization

• A triangle of stakeholders• Adapt, improvise, overcome


Steps in Planning and Producing the Event

• Agree on event goals• SWOT– Strengths– Weaknesses– Opportunities– Threats

• Event development and monitoring strategies

• Manage event logistics• Motivate and influence event

volunteers


Cialdini’s Rules of Influence

• Reciprocation• Commitment and consistency• Social proof• Liking• Authority• Scarcity


Steps in Planning and Producing the Event

• Pre-event briefing• Track the event in real time• Post-event debriefings• Cleanup and/or closeout• Reconcile the event


Additional Event Planning and Production Suggestions

• Event checklists Double check Be specific

• Recognize Murphy’s Law

Chapter 3

Financing Facilities


Introduction

• Unprecedented renovation and construction of sport facilities

• Escalating costs causing problems• Teams relocating for new facilities• The financing and economic impact

of new facilities central to this chapter


Facility Financing

• Public Keep public subsidy to minimum to

expand cash flow

• Private Emphasis is on stockholder wealth and

stock price

• Combination


Financing Options

• General obligation bonds Backed by government and require

taxes

• Revenue bonds Tax from specific sources

• COP (Certificate of Participation)• TIF (Tax Increment Financing)• Other


Financing Options (cont.)

• Public and private cooperation Revenue bonds backed by sales tax Naming rights and arena revenues Land taxes Club seating


Financial Team

• Examples Facility manager/staff Business plan consultant Architect Construction manager Legal counsel


Cash Flow

• Definition• Examples• Why is cash flow such an important

concept for the facility manager?


Public v. Private Financing

• Public financing supporters New jobs, attracts new fans, etc. “Minor League City” Multiplier effect

• Private financing supporters New stadiums do not create, they

redistribute Other activities lose participants Tax base not expanded significantly


College Facilities

• Student fees• User fees• Corporate funding

Chapter 4

Privatization


Introduction

• Governmental resources are limited Privatization shift

• 1990s Most facilities funded publicly However, managed privately

• Public-private partnership Efficiency and effectiveness


Rationale for Utilizing Public-Private Partnerships

• Governments can and should do more with less

• Increased efficiency and effectiveness

• Competition• Rewarding innovation


Public-Private Partnerships

• Types Contracting out or outsourcing Franchising Commercialization/service shedding Tax expenditure Vouchers


Examples of Public-Private Sport Partnerships

• Event promotion and management• Sport stadium financing and

construction• Private sport facility and event

management


Possible Benefits of Privatization

• Economies of scale• Discipline of market forces• Increase in meaningful private-sector

jobs• Reduced threat and impact of strikes


Possible Drawbacks of Privatization

• Inefficient and costly• Government still responsible for

quality control• Public employees needed to monitor

the private sector


Final Thoughts

• Privatization is part of today’s sport event and facility management landscape

• Facility manager should be cognizant of both to run an effective operation

sport facility management: organizing events and mitigating risks

Documents