sport facility management: organizing events and mitigating risks
TRANSCRIPT
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Sport Facility Management: Organizing Events and
Mitigating Risks
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Chapter 1
Introduction
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Sport Facility Management: Organizing Events & Mitigating Risks
Preliminary Thoughts
• Common Denominators in Sport and Entertainment Event classification Type of facility Risk association
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Sport Facility Management: Organizing Events & Mitigating Risks
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
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Sport Facility Management: Organizing Events & Mitigating Risks
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
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Sport Facility Management: Organizing Events & Mitigating Risks
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
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Sport Facility Management: Organizing Events & Mitigating Risks
September 11th, 2001
• Facility managers must reassure guests of their safety
• Budgets may increase by 40%• Insurance companies reluctant to
insure• Event risk profile
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Sport Facility Management: Organizing Events & Mitigating Risks
Other Concerns
• Attendance downturn• Economy• TV ratings
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Sport Facility Management: Organizing Events & Mitigating Risks
Industry and Technology Changes
• Spectator-based to entertainment experience
• Quality over quantity• Internet sales
ATTM
• “Smart” fan cards• Wireless at seats
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Sport Facility Management: Organizing Events & Mitigating Risks
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
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Chapter 2
Planning and Producing an Event
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Sport Facility Management: Organizing Events & Mitigating Risks
Defining Event Management
• Getting things done through people• Complex, surprising, ambiguous• Satisfying stakeholders
Participants, sponsors, spectators
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Sport Facility Management: Organizing Events & Mitigating Risks
What Is Sport Event Planning and Production?
• Elements of management occurring within an organization
• A triangle of stakeholders• Adapt, improvise, overcome
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Sport Facility Management: Organizing Events & Mitigating Risks
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
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Sport Facility Management: Organizing Events & Mitigating Risks
Cialdini’s Rules of Influence
• Reciprocation• Commitment and consistency• Social proof• Liking• Authority• Scarcity
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Sport Facility Management: Organizing Events & Mitigating Risks
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
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Sport Facility Management: Organizing Events & Mitigating Risks
Additional Event Planning and Production Suggestions
• Event checklists Double check Be specific
• Recognize Murphy’s Law
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Chapter 3
Financing Facilities
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Sport Facility Management: Organizing Events & Mitigating Risks
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
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Sport Facility Management: Organizing Events & Mitigating Risks
Facility Financing
• Public Keep public subsidy to minimum to
expand cash flow
• Private Emphasis is on stockholder wealth and
stock price
• Combination
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Sport Facility Management: Organizing Events & Mitigating Risks
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
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Sport Facility Management: Organizing Events & Mitigating Risks
Financing Options (cont.)
• Public and private cooperation Revenue bonds backed by sales tax Naming rights and arena revenues Land taxes Club seating
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Sport Facility Management: Organizing Events & Mitigating Risks
Financial Team
• Examples Facility manager/staff Business plan consultant Architect Construction manager Legal counsel
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Sport Facility Management: Organizing Events & Mitigating Risks
Cash Flow
• Definition• Examples• Why is cash flow such an important
concept for the facility manager?
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Sport Facility Management: Organizing Events & Mitigating Risks
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
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Sport Facility Management: Organizing Events & Mitigating Risks
College Facilities
• Student fees• User fees• Corporate funding
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Chapter 4
Privatization
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Sport Facility Management: Organizing Events & Mitigating Risks
Introduction
• Governmental resources are limited Privatization shift
• 1990s Most facilities funded publicly However, managed privately
• Public-private partnership Efficiency and effectiveness
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Sport Facility Management: Organizing Events & Mitigating Risks
Rationale for Utilizing Public-Private Partnerships
• Governments can and should do more with less
• Increased efficiency and effectiveness
• Competition• Rewarding innovation
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Sport Facility Management: Organizing Events & Mitigating Risks
Public-Private Partnerships
• Types Contracting out or outsourcing Franchising Commercialization/service shedding Tax expenditure Vouchers
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Sport Facility Management: Organizing Events & Mitigating Risks
Examples of Public-Private Sport Partnerships
• Event promotion and management• Sport stadium financing and
construction• Private sport facility and event
management
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Sport Facility Management: Organizing Events & Mitigating Risks
Possible Benefits of Privatization
• Economies of scale• Discipline of market forces• Increase in meaningful private-sector
jobs• Reduced threat and impact of strikes
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Sport Facility Management: Organizing Events & Mitigating Risks
Possible Drawbacks of Privatization
• Inefficient and costly• Government still responsible for
quality control• Public employees needed to monitor
the private sector
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Sport Facility Management: Organizing Events & Mitigating Risks
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