the united states sport industry - quia

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C H A P T E R

KEY TERMSFootball Bowl

Subdivision

FootballChampionshipSubdivision

Independent Teams

Licensed Merchandise

The United States Sport IndustryMark S. Nagel • University of South Carolina

After reading this chapter, you will be able to:

• Explain the breadth of the United States sport industry;• Identify and describe selected organizations working within the

sub-industries of the United States sport marketplace;• Describe potential internship and entry level employment

opportunities in sport management.

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Property of Kendall Hunt Publishing Mark Nagel and Richard Southall's Introduction to Sport Management: Theory and Practice 978-0-7575-7578-5

IntroductionThe vast majority of entry-level sport-management students will answer thequestion “What do you want to do in your sport management career” with oneof the following responses:

1. “Become a general manager of a franchise in the National BasketballAssociation (NBA), National Football League (NFL), National HockeyLeague (NHL), or Major League Baseball (MLB).”

2. “Become an athletic director at a National Collegiate Athletic Association(NCAA) Division-I athletic department, preferably one that is a member ofone of the largest conferences (Big 10, Big 12, ACC, SEC, PAC-10, or BigEast).”

3. “Become a player agent.”

While each of these choices is a potential career option, they are certainlynot indicative of the breadth of the sport-management industry. The above-listedpositions typically generate extensive media attention, so most students, parents,and non-sport management faculty tend to think sport-management graduatesprimarily work in these subsectors of the industry. Though positions in theseareas do exist, there are usually few such entry-level positions available and higher-ranking positions are especially scarce. For instance, there are only 32 NFL teams,meaning there are only 32 NFL general managers. Mathematically, studentshave a higher likelihood of becoming a member of the United States Congressthan of becoming an NFL, NBA, NHL, or MLB general manager.

In addition to there being few opportunities, general managers, athleticdirectors or prominent player agents are often people who were high-level ath-letes. Though certainly not a requirement, being a well-known former athletecan often provide a spring-board to eventual success as a general manager, ath-letic director, or player agent. It is wonderful if a student desires to somedayobtain one of these positions, and, while students should not be discouragedfrom pursuing a career path with these eventual outcomes as the primary goal,they should understand the reality of the situation. Becoming a NCAA Division-Iathletic director, general manager, or prominent sport agent requires intellect,determination, countless hours of learning, and years of preparation. Though itis highly unlikely that obtaining one of those positions will occur, by setting an“ultimate” goal, along with smaller goals that serve as steps along the way, eitherthat final goal will be achieved or other career opportunities will present them-selves. While this advice may seem “cliché-like,” it is actually true.

This chapter discusses various subsectors of the sport industry that mayprovide internship opportunities and eventual employment. It is designed toprovide students with a broader perspective of the industry than a “traditional”view of sport management that consists of only involving college and profes-sional sport employment or becoming an agent. The categories are certainly notexhaustive as the sport industry is constantly evolving, with new subsectorsemerging almost daily. Regardless of your career path (Just a note: By enrolling

38 Chapter 3 The United States Sport Industry

Find a job you love andyou will never workanother day in your life.

—Confucius


in a sport-management class your career has already begun!), be prepared towork long hours in order to achieve your career goals. Remember, your careerwill not develop overnight. The adage, “You learn in your 20s and begin to earnin your 30s” is certainly applicable to the sport-management industry. Maintainyour focus while working diligently and good things will eventually happen.

Professional SportProfessional sport franchises have two distinct sets of employees. The “talent”side of the organization deals with preparing the team to achieve on-field suc-cess. The general manager, player-personnel director, coaches, full-time scouts(and certainly the players) usually receive salaries considerably higher thanthose earned by employees on the organization’s “business” side. Players,coaches, and general managers also typically receive extensive media attentionand are readily identified by fans and many members of the team’s local com-munity. The desire to work on the “talent” side of professional sports is whatinitially attracts many students to sport-management programs. However, inthe vast majority of cases, sport-management students will be hired to work inthe business side of the organization. It is certainly possible, but extremely rare,for a sport-management student who is not a former college or professionalsport player to be hired by a professional sport franchise to work on the “talent”side of the organization. Most sport-management students who work for a pro-fessional sport franchise will be employed in one or more of a variety of sportbusiness areas (e.g., marketing, finance, game operations, sales, etc.).

When most students think of working in professional sports, they focusupon the NBA, NHL, NFL and MLB as likely employers. These leagues tendto attract large fan bases and have games that are often televised. Potential intern-ship or employment openings at these organizations usually attract hundreds ofapplicants and therefore have extremely low salaries. Much of the “compensa-tion” for working for a franchise in one of these leagues is the ability to say thatyou work for the team. Sport franchises realize there are often hundreds ofpotential employees who would “love” to work for their organization, so theyoften keep salaries low and demand long working hours, particularly for thoseemployees who have been with the team for less than five years.

Professional sport franchises from the “Big 4” leagues tend to have distinctcompartmentalized divisions in marketing, sales, game operations, finance,media relations, human resources, and law. Interns or entry-level employeeshired to work for these teams may find they work almost exclusively in one areaand do not get exposed to very many facets of the organization. Working exclu-sively in the marketing department certainly enables an intern or entry-levelemployee to learn detailed aspects of marketing, but it may not be conducive tounderstanding how the other departments interact in order for the franchise tooperate effectively.

Though not nearly as popular as teams in the “Big 4” sports leagues, thereare many other professional-sport franchises. Sports such as soccer, lacrosse, and

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volleyball have financially viable professional leagues, and the NBA, NHL, and MLB also have extensive minor-league systems. In baseball, there are alsoindependent teams that operate without the direct support of a major-leagueaffiliate. Most students do not initially consider a career working with fran-chises other than those in the “Big-Four” leagues, but often there are muchgreater career advancement opportunities in these situations. For instance,though not the norm, it is not uncommon for general managers of minor leaguebaseball teams to be hired prior to reaching their 35th birthday. It is also notuncommon for talented interns to be promoted quickly after an internship witha “minor league” franchise. There are many prominent sport managers whohave achieved great success in (so called) minor-league sport, who refuse “major-league” job offers because their “minor-league” careers are fulfilling.

Since the team’s overall staff is much smaller, minor-league sports franchiseemployees (including interns) typically have multiple areas of responsibilitywithin the organization. For instance, an NBA team will likely have at least fivemarketing department staff members. Each employee will likely have a narrowlydefined job description. However, a NBA D-League franchise will have a muchsmaller marketing staff that will, most likely, have daily interaction with mem-bers of many different departments. By being thoroughly exposed to the smallerorganization’s various facets, skills are developed that can be applied to futurework activities. Even more prominent minor league sports, such as Triple-A teamsin minor-league baseball, will present opportunities for employees to see andunderstand how the various aspects of the organization function. For instance,it is not uncommon for every member of a minor-league franchise, includingthe general manager, to help pull the tarp during rain delays.

In addition, the world of professional sports is not limited to “team” sports.There are numerous organizations that operate tournaments for professionalathletes in sports such as tennis, golf, fishing, boxing, mixed martial arts, andtrack and field. Though events such as the United States Open TennisChampionship or Professional Golf Association (PGA) Championship garnerextensive media attention, there are other internship and employment opportu-nities in these sports, since tournaments are held most weekends during theyear. Sports such as mixed martial arts and lacrosse have only recently launchedviable leagues, but they are growing—in both popularity and employmentopportunities.

The growth of NASCAR over the past 15 years is an excellent example ofan emerging professional sport and the potential for growth. For many years,automobile racing was seen as a niche sport in the United States, with littlenational interest beyond the Indianapolis 500 each spring. Until the 1990s,NASCAR was perceived primarily as a “southern” sport that did not generatemuch national media attention. However, as NASCAR racing became morepopular, various NASCAR employees were recognized for their expertise in avariety of sport business areas, particularly sponsorship sales and fulfillment.While NASCAR has recently faced numerous challenges, with a concurrentslowdown in television ratings and revenue, its rise as a “major-league” sport is


Independent TeamsBaseball teams that operatewithout a direct affiliation withany Major League Baseballfranchise.

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an indication that “niche” professional sport organizations can provide excellentemployment opportunities.

Though working for a team is certainly one of the most popular potentialsport management careers, professional-sport opportunities are not limited toteam-sport franchises. Each professional sport league has a league office. Leagueoffice employees are charged with creating a fair environment for all league par-ticipants, enhancing the league’s brand, and developing league revenue sources.Most leagues have a commissioner or league president who oversees the leagueoffice. For instance, Major League Baseball has a commissioner who hires a staffthat schedules games, hires and supervises umpires, negotiates media contracts,and markets the league. Minor League Baseball (MiLB) has a President respon-sible for all of the affiliated minor-league baseball teams. In addition, each minorleague (e.g., Midwest League, Southern League, etc.) has a President who hiresand manages a full-time staff, as well as league interns.

Working for a professional sport league does not offer the emotional highsand lows associated with an individual franchise, because team employees havea vested interest in each game’s results. The day-to-day excitement of workingfor an individual franchise can be intense, especially at the end of the seasonwhen a team is in the playoffs. Though “business-office” staff do not directlyinfluence the outcome on the field, they certainly contribute to franchise suc-cess by marketing to fans and providing a positive game-day experience. Inrecognition of their contributions, most professional sport organizations rewardall full-time employees, not just the coaches and players, with rings and otherawards if the team wins a championship.

To truly understand the professional sport environment and to determine ifit is a good fit, students should seek out volunteer and internship opportunitieswith individual franchises—as well as league offices. It certainly is appropriateto pursue positions with a “major-league” franchise or league, if that is your pri-mary goal, but do not fail to at least consider a “minor league” position, sincemany wonderful career opportunities are available.

College SportWhen most people think of intercollegiate athletics, they tend to focus uponFootball Bowl Subdivision (FBS) football bowls and the NCAA Division-IMen’s and Women’s Basketball Tournaments. Though these are certainly themost watched college athletic events, they are a small fraction of the total oppor-tunities in college athletics. The NCAA is divided into three divisions (I, II, III).Currently, there are 1089 member schools with 347 in Division I, 295 in Divi-sion II, and 447 in Division III. The NCAA organizes championships in 23 dif-ferent sports with schools offering opportunities for men and women to compete.

To be eligible to be a member of Division I, an institution must offer at leastseven sports for men and seven for women (or six for men and eight for women)with at least two team sports for each gender. Division-I members may offer ath-letic scholarships and most schools recruit potential athletes from various regions


Football Bowl SubdivisionA segment of the NationalCollegiate Athletic Associationthat is comprised of schoolsplaying the highest level offootball (formerly known asDivision IA).


of the country. Though nearly every Division-I athletic department is part of aregional conference, most teams schedule some competition with schools out-side of their immediate geographic area. Division-II institutions must sponsorat least five sports for men and five for women (or four for men and six forwomen) with two team sports for each gender. Though Division-II institutionsmay offer athletic scholarships, their recruitment efforts are usually regionallybased. In addition, athletic-competition travel tends to be local or regional.Division-III institutions must offer at least five sports for men and five forwomen. They are not permitted to offer athletic scholarships (“What’s the dif-ference . . . ,” n.d.).

Division I is further separated into three divisions (formerly known as IA,IAA, IAAA). Division-IA institutions that offer “big time” football compete inthe Football Bowl Subdivision (FBS), while D-IAA schools—now FootballChampionship Subdivision (FCS)—do not provide as high a financial com-mitment to their football programs. Division IAAA members do not field D-Ifootball teams. It is important to remember that all Division-I schools competefor the same championships in all sports besides football. Except for a few rareinstances, schools must compete at the same level for all of their sports. Suchinstances are often in Olympic sports (e.g., skiing, hockey, wrestling, etc.).

The various NCAA divisions roughly approximate varying philosophicalperspectives and financial commitments to intercollegiate athletics. Division-Iprograms tend to provide coaches with greater financial resources for scholar-ships, personnel, and equipment, upgraded facilities, large travel budgets, andextensive opportunities to compete against other schools across the nation. MostDivision-II institutions offer athletic-related scholarships across a variety ofsports, but travel and expenses are typically much lower than in Division I.Division-III members, while still committed to intercollegiate athletic competi-tion, in most instances have deemphasized a highly commercialized approach to


Division-I football teams usually compete in large stadiums while Division-II or Division-III programs typically have much smaller facilities.Co

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Football ChampionshipSubdivisionA segment of the NationalCollegiate Athletic Associationthat is comprised of Division-Ischools that are not playing atthe highest level of footballcompetition (formerly known as Division IAA).


college sport. According to the division’s mission statement, member institu-tions prohibit athletic-related scholarships and “. . . place highest priority onthe overall quality of the educational experience and on the successful comple-tion of all students’ academic programs.” (NCAA, n.d., para. 1).

Most NCAA members have maintained their current affiliation for manyyears. However, each year a handful of members attempt to move divisions. Inmost cases, the movement is prompted by a desire to enhance athletic commit-ment and “upgrade” to a higher division. Most schools rationalize such a move(from Division III to Division II or from Division II to Division I) as a meansto enhance the institution’s “marketability.” Competing at a high level of inter-collegiate athletics is perceived by many to be critical to attracting and retainingstudents, since competing at the Division I-level offers a greater opportunity tobe mentioned on ESPN’s SportsCenter and in other media outlets. Though exam-ining the specifics regarding the costs and benefits of moving up a division isbeyond the scope of this chapter and book, a focus on athletic-departmentexpansion and increased use of college sport as a marketing platform has resultedin concern among many faculty, students, alumni and administrators regardinginstitutional priorities. These concerns have resulted in a small number of schools“downgrading” their NCAA status. Recently, Birmingham Southern Collegerealized an increase in overall athletic participation and an increase in campusminority enrollment, university giving, and applicant quality after it movedfrom Division I to Division III.

Though the importance placed upon winning and academic achievementmay differ by sport and NCAA Division, regardless of division, athletic direc-tors’ and athletic department staff roles are similar. Athletic directors are expectedto hire coaches and other staff members, manage an athletic department’sbudget, generate revenues to insure the department’s financial viability, andinteract with various on- and off-campus constituencies. Reflecting the enhancedcommitment to the business of intercollegiate athletics, the vast majority ofcoaches and athletic department personnel who work at Division I-institutionstend to not maintain formal roles in other areas of the university. However, atmany Division-II and (especially) D-III institutions, coaches and athletic depart-ment staff members often teach classes and assume other campus roles.

Students wishing to eventually work in college athletics should develop andfully understand their personal philosophy of the relationship between athleticsand academics before pursuing potential college sport internships. At Division-Iinstitutions, a primary focus (and some would argue the only focus) is winning.Athletes’ education and character development, while still ostensibly important,are often secondary, particularly in revenue-generating sports. At the Division-IIand Division-III levels facilities typically are not as lavish, and media attentionis often non-existent. As a result, there is often less commercial intrusion, whichmay allow athletes to maintain more focus on their academic and social devel-opment. At most Division-III institutions, coaches and administrators are eval-uated primarily on how well their program contributes to students’ education.

The Division-I focus on winning, particularly in revenue sports, is not nec-essarily a “bad” thing, but sport-management students must attempt to insure



that philosophy and expectations match a university’s mission and goals. If astudent’s personal values are incongruent with those of the athletic departmentin which they work, frustration often occurs. Having a general idea of expecta-tions and the work environment prior to taking a job in college athletics canalleviate potential philosophical disagreements.

Though most students seeking employment in college athletics will gravi-tate toward a job at an individual school, there are additional administrativepositions available at the NCAA as well as other college sport-governing bodies.Each Division-I conference maintains a league office and employs a full-timestaff. Certainly, conferences such as the Southeastern Conference (SEC) and theBig Ten Conference have many more staff members than the West CoastConference (WCC) or the Western Athletic Conference (WAC), but all confer-ence employees attempt to market the conferences’ brand and enhance athletic-related revenue streams. Much like working for a professional sport league,NCAA and conference administrators will not have the emotional highs andlows of individual school employees.

There are also opportunities outside of the NCAA umbrella. The NationalAssociation of Intercollegiate Athletics (NAIA) governs sport activities for mem-ber NAIA schools. Though not as large as the NCAA, the NAIA currently hasover 300 member institutions, and organizes championships in 13 sports. TheNAIA maintains a full-time staff that works to organize championships andmarket NAIA members. In addition, though their athletic departments willlikely be small compared to NCAA Division-I institutions, every NAIA schoolwill have athletic employment opportunities.

Intercollegiate athletics opportunities are also offered at many junior col-leges. Junior college athletic department administrators are also often membersof the physical education faculty. Since junior colleges typically attract stu-dents from the local area, rather than from throughout the country, such ath-letic department budgets are often much more limited. However, many statesorganize championships for a variety of sports at the junior college level. Thesechampionships can attract local media attention and fans. The National JuniorCollege Athletic Association (NJCAA) works to promote the efforts of juniorcollege athletics.

College Sport License Holders The development and expansion of the business of intercollegiate athleticshas resulted in the proliferation of numerous college sport marketing compa-nies. Since many athletic departments do not have adequate personnel withthe expertise to evaluate and sell sponsorship inventory, negotiate media rightsto athletic department content, and seek advertisers, they often partner withthird-party license holders. As these license holders have proliferated, theyhave provided excellent internship and employment opportunities for sportmanagement students.



There are a variety of college-sport licensees. One of the most importantpeople in the development of this sub-industry is Jim Host. In the 1970s, Hostestablished Jim Host & Associates, which provided assistance to college athleticdepartments looking to outsource some or all of their marketing activities. Afterinitially working with the University of Kentucky, Host’s company became moreand more successful. As Host expanded his influence throughout the industry,other competitors entered the marketplace. Currently, prominent college sportmarketing companies include ISP Sports, Learfield Sports Properties, andNelligan Sports Marketing, Inc.

In 2007, International Management Group (IMG) purchased HostCommunications and combined it with recently acquired Collegiate LicensingCompany (CLC), an entity that had initially been established to assist collegesand universities to create and expand their licensed merchandise sales, to formIMG College. The merger established IMG College as the nation’s largestprovider of marketing services to the college sport industry.

Though the aforementioned companies provide a variety of marketing serv-ices to college athletic departments, there continues to be new opportunities forcollege sport consulting. In 2009, Georgia Tech hired the Aspire Group to organ-ize its ticket sales for football and men’s basketball games. It was believed to bethe first time an athletic department outsourced its ticketing operations to athird party (Lombardo & Smith, 2009). It is likely many future employmentopportunities in college athletics will involve working for an outside entity,rather than directly for the athletic department.

Youth SportsProfessional and intercollegiate athletics typically generate significantly higherattendance and greater media attention than organized youth sports; however,over the past 10 years high school athletics has become dramatically more com-mercialized. At many high schools, since the athletic director is no longerexpected to teach classes, his/her energy can be fully devoted to selling tickets,executing fund raising initiatives, seeking sponsorship agreements, and raisingawareness of the high school’s athletic exploits in the media. High school foot-ball and basketball games are increasingly being broadcast on local or regionaltelevision and radio stations, or sport networks. In addition, ESPN has recentlydramatically increased its coverage of selected games. It is not uncommon forprominent high school athletic teams to travel via airplane to participate in prestigious tournaments. As many high school athletic departments have begunto model their structure and activities after prominent colleges, athletic direc-tors with advanced sport business skills are needed.

Other youth sport activities have also recently seen dramatic changes. LittleLeague Baseball and the Amateur Athletic Union (AAU) have long attractedthousands of participants, but the scheduling and marketing of their athleticcontests now mimics commercialized sport properties. Not only are Little League


Licensed MerchandiseGranting another entity theright to produce products thatbear a trademarked logo.


World Series games televised live on ESPN, but most regional championshipsare also covered extensively by the media. AAU tournaments in a variety ofsports no longer merely attract parents and close friends of the participants.With much of the college recruiting for some sports (such as basketball and vol-leyball) occurring during summer AAU tournaments, fans have begun to attend,and media outlets have begun to cover, some of these events in the hopes of see-ing the “next” great college players before they have graduated from high school.

With the growing emphasis on commercialized youth sports, parents nowoften insist that their children’s sporting activities be organized and operatedlike “professional” sport entities. Some affluent parents have also retained “per-formance” coaches to work with their child—in some cases before their son ordaughter has enrolled in junior high school. The increased emphasis that par-ents have placed upon organized, elite youth sport activities is of grave concernto many people. During much of the 20th century young kids participated inathletics without direct parental organization or supervision (Coakley, 2009).Sport was as much about “play” as it was about winning. Participants (chil-dren) often amended rules to allow for a more competitive and “fun” environ-ment. While some sociologists lament the current state of youth sports, withtoday’s emphasis on adult-organized and directed youth sports, there are oppor-tunities for sport-management graduates to establish, organize, and promoteyouth sport events.

Olympic Sports In 1896 the first “modern” Olympic Games took place in Athens, Greece.Though the “first” Olympics attracted “only” 14 nations and 241 athletes, thegames slowly expanded during the first half of the 20th century. Since it wasimpractical to hold competitions for many popular sports, such as skiing andice-skating, during the summer, in 1924 the first Winter Olympic Games wereheld in Chamonix, France. As the Olympics continued to attract larger contin-gents of athletes and greater media attention, they became an outlet for coun-tries’ nationalism. During the 1936 Summer Olympics in Berlin, the Nazi Partyutilized the Games as the focal point to demonstrate the “rebirth” of Germanyafter World War I. Despite Adolf Hitler’s propaganda campaign about the Aryan“master race,” United States’ track star Jesse Owens won four gold medals tobecome the hero of the 1936 Olympics.

Though the popularity of the Olympics grew following World War II, manyOlympic Games have been marred by tragedy, financial problems, and politicalturmoil. During the 1972 Munich Games, members of the Israeli Olympic teamwere taken hostage and eventually murdered by Black September, a militant groupwith ties to the Palestinian Fatah organization. By the end of the ordeal, thedeath toll stood at 17. The terrorists eventually killed eleven Israeli athletes andcoaches and one West German police officer. Five of the eight Black Septembermembers were killed during a failed rescue attempt. Though certainly not astragic as the loss of life in Munich, the 1976 Montreal Games were a financial



disaster as millions of dollars of facility investmentsrequired decades for the citizens of Montreal and the restof Canada to repay. At the height of the “Cold War,” theUnited States and many of its allies boycotted the 1980Moscow Games in protest of the Soviet Union’s invasionof Afghanistan. By 1984, there was considerable concernabout the financial viability of the Los Angeles Games,especially after the Soviet Union and other “Eastern Bloc”countries boycotted the Games in retaliation for the 1980boycott. Despite concerns, the financial and marketingsuccess of the 1984 Summer Olympics changed theOlympic movement.

Peter Ueberroth served as the Executive Director ofthe 1984 Summer Olympics. Where all of the proceedingOlympic Games were primarily financed and operated bygovernment entities, Ueberroth organized the Los AngelesGames as a private entity. Ueberroth managed the Olympics as a separate, stand-alone business and he solicited extensive sponsorship and licensed merchandisesales to generate revenue. The Los Angeles Olympics were such a financial suc-cess that Ueberroth was named Time Magazine’s Man of the Year. Cities andcountries that had viewed hosting the Olympics as a financial risk, changedtheir opinion of hosting future games. The Los Angeles Olympics caused manyworldwide sporting events to become “mega-events” requiring extensive andhighly-trained staffs in order to solicit bids, develop financial plans, schedulefacilities, organize event employees, and maximize revenue opportunities. Today,sport-management students have the opportunity to pursue an Olympics-basedcareer, whether working for the International Olympic Committee (IOC),United States Olympic Committee (USOC), one of the USOC’s national sportgoverning bodies (NGO), or for a potential host city.

The Olympic Games are not the only mega-event to attract competitorsand spectators from throughout the world. In 1948 Sir Ludwig Guttman organ-ized the first sport competition for injured soldiers from World War II.Guttman’s event would grow and eventually be called the Paralympics. Startingin 1988 with the Seoul Olympics, the Paralympics have been held in theOlympic host city shortly after the Olympic Games have concluded. TheParalympics, as well as other sporting events for the disabled, have grown inpopularity. Much like the Olympics, the Paralympics must be organized andmanaged. With thousands of athletes and spectators attending, there are numer-ous career opportunities in this area.

Sport FacilitiesRegardless of the size or scope of a sporting event, facilities will be needed toinsure the event is successful. Even outdoor events, such as cross-country races,require facilities for spectators, members of the media, and race officials.


The 1984 Summer Olympics generated a profit and changedthe way future Olympic Games would be organized.

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Certainly, major professional sports facilities and Division I athletic departmentfacilities receive considerable media attention, but there are also many potentialcareer opportunities associated with smaller venues. As discussed in chapter 11,sport facilities may include stadiums (both indoor, outdoor, and retractableroofed) for events such as football and soccer games, arenas for events such asbasketball and volleyball games and facilities designed specifically for sportssuch as tennis, swimming, auto racing, horse racing, and dog racing.

Though high profile “competitive” sport facilities tend to initially attractsport management students, there are also numerous opportunities to work inrecreation and fitness facilities. Most communities have private and publicly-owned recreation centers that offer general recreation opportunities as well asscheduled events such as tournaments. Over the past 10 years, colleges and uni-versities have come to realize on-campus recreation centers can be utilized torecruit and retain students (as well as faculty and staff ). Most campuses have atleast one recreation center, and offer extensive intramural programs. Militarybases, both in the United States and throughout the world, also offer recreationopportunities. These facilities require professional, part-time, and volunteerstaff members to insure operational efficiency. Though NFL stadiums and NBAarenas receive extensive television exposure, community recreation centers oron-campus recreation facilities all need trained staff to operate and maintain.Such employees establish budgets, organize programs, insure the safety of equip-ment, and attract and retain customers.

Over the last 15 years, as the importance and complexity of managing sportfacilities has increased, numerous private management companies have offeredsport facility-management services. Though there are numerous private man-agement companies that offer such full-scale management, three organizationscurrently dominate the marketplace. SMG World is the leading provider ofmanagement for arenas, convention centers, stadiums, and theatres throughoutthe world. It currently manages nine stadiums, 40+ theatres, 50+ conventioncenters, and 50+ arenas, with more than 1.5 million seats. IMG continues toexpand its operations and influence in the sport facility marketplace (“SMG ata glance,” n.d.).

Global Spectrum, a division of the Philadelphia-based sports and entertain-ment company Comcast-Spectacor, calls itself the “fastest growing firm in thepublic-assembly facility management field (“Company background,” n.d.).Founded in 1974, Global Spectrum presently manages five ice facilities, sevenperforming-arts centers, 32 arenas, 25 convention centers, and eight stadiums(“Venue list,” n.d.). Global Spectrum is expanding its global presence, withoffices in the United States, Canada, the United Kingdom, and Singapore.

AEG Live has only recently begun soliciting facility-management contracts,but its recent successes have been impressive. AEG Live has signed contractswith some of the top-grossing facilities in the world. It currently oversees thedevelopment of L.A. Live, a 4-million square foot, $2.5 billion sport, residen-tial, and entertainment district (“About us,” n.d.). AEG has committed toexpanding its presence in the sport facility-management field.



Each of these companies offers extensive internship and entry-level employ-ment opportunities. Since SMG, Global Spectrum, and AEG manage multiplefacilities around the world, there are tremendous opportunities to advance yourcareer, if you are able and willing to relocate. It is not uncommon for these com-panies to “fast-track” exceptional students from internships to full-time employ-ment and from entry-level employment to middle-management.

In addition to full-service facility-management companies, there are alsopotential sport management employment opportunities in firms that offer spe-cific services in subsectors of facility management. Since selling food and bev-erages is a critical revenue stream for most sporting events, many facilities haveoutsourced concession-sales responsibilities to private companies. Thoughthere are many food-service companies, a few dominate the marketplace.Aramark is the largest sport concessionaire and it continues to expand its pres-ence in the United States and in international markets. Other prominent con-cessionaires include Centerplate, Delaware North Sportservice, Levy, andOvations Food Services (owned and operated by Comcast Spectacor). Muchlike the large full-scale facility management companies, these concessionaireshave multiple accounts across the country, providing employees many opportu-nities for career advancement.

Though crowd safety has always been an important issue, after the terror-ist attacks on 9/11 most facilities and events realized they needed to reassesstheir crowd-management practices. There are many companies that workdirectly or indirectly with sporting events to create a safe environment.Contemporary Services Corporation (CSC) is the best known. With multipleoffices throughout the United States and accounts with many of the top col-lege and professional sport teams, CSC is a leader in providing staffing forsport-event crowd management.

Most live sport events require patrons to purchase tickets to gain entry tothe facility. For many years, tickets were sold primarily at a facility’s box office.By the 1970s, tickets could be purchased over the phone with a credit card, butthe sales process was still inefficient. In 1976, two Arizona State students foundedTicketmaster—a company that designed software that allowed for “remote”ticket sales. In the 1980s, as Ticketmaster developed and enhanced its technol-ogy, it quickly became the industry leader. With the proliferation of the Internetin the 1990s, Ticketmaster captured nearly the entire sport and entertainmentticketing industry. In 2010, it merged with Live Nation. Though many stu-dents may not have an interest in working for Ticketmaster, it is important tounderstand how its operations impact nearly every aspect of live sport and enter-tainment events.

There are a variety of other employment opportunities in sport facility andevent management. Sport events cannot function without sports and officeequipment, landscaping, trash removal, and a myriad of other services. Thereare many lesser-known companies that work intimately within the sport indus-try. In addition, there are companies that have not even been established thatwill provide future employment opportunities. For instance, in 1981 Sports



Team Analysis and Tracking Systems (STATS, Inc.) was established by JohnDewan. In the early 1980s, statistical analysis (particularly in sports) was oftenseen as a “fringe” activity reserved solely for “nerds.” Since 1981 the importanceof sport statistical analysis (as well as statistical analysis in all aspects of business)has grown tremendously and companies such as STATS, Inc. (now STATS LLC)play an important role in the industry. Many students reading this book willlikely have ideas for aspects of the sport industry that have not yet been con-templated. Do not discount emerging ideas or companies as they may become acritical component of the sport industry in the future!

Licensed MerchandiseIn the 1950s, New York Yankee’s General Manager George Weiss was askedabout having a Yankee Cap Day. He supposedly replied, “Do you think I wantkids in New York wearing Yankee hats?” Certainly, the use of team or leaguelogos on hats, shirts, jackets, sweaters, and various other articles of clothingand other products has greatly expanded since the 1950s. Today, any sportexecutive would welcome the opportunity for logoed merchandise to be wornby fans, especially when the fans pay for the “privilege” of being associatedwith the sport organization.

Most teams, leagues, and athletic department sell licenses that permit thirdparties to produce various products that display a sport organization’s name andlogo. The profit margin on sales of licensed merchandise can be quite high. Oneonly has to look at the price of a plain sweatshirt sold at a department store, andcompare it to the price of a sweatshirt bearing a college or university logo, to seethe profits generated through licensed merchandise sales. The cost of ink islikely pennies, but the addition of a school logo on a plain piece of clothing candouble, triple, or even quadruple the product’s price!

Licensed merchandise sales are a critical component of most sport organiza-tions’ revenue plans. The tremendous profit margins available through the saleof licensed merchandise have led most sport organizations to devote at least oneemployee to this area. For extremely popular sport teams, an entire franchisedivision or functional area may work to investigate potential licensing opportu-nities, negotiate licensing contracts, and insure that counterfeit merchandise isnot sold. In order to maximize profits, sport leagues typically create league-widelicensing agreements. These league agreements typically disburse revenues toeach team, which enables every team (though their individual sales may fluctu-ate each year due to team performance and other factors) to receive a more con-sistent revenue stream.

Companies that design and sell apparel have been interested in utilizingsport logos for many years. Recently, various non-traditional products andservices have sought associations with sport organizations. Some college ath-letic departments offer their fans the opportunity to purchase licensed prod-ucts as varied as seat cushions, plates, silverware, glasses, futons, toilet seat



covers, DVDs, photographs, and other new-media products. Some schoolsand professional sport franchises have even begun offering officially licensedurns and coffins for fans who wish to be buried in “their” school or team colors(Jones, 2008).

Sport Media Sport events typically attract the attention of fans, and therefore are often cov-ered by various media outlets. Certainly, sport organizations seek to maximizemedia exposure. Most hire employees to work with the media to generate posi-tive publicity. In addition, media-relations departments must also prepare andhandle potential crises that develop. An organization that is not prepared for acrisis will likely experience significant negative feedback from fans and otherconstituents who view the sport entity as unprepared, uncaring, or unprofes-sional in their dealings with the media.

The media industry has changed dramatically over the past 100 years. Theprimary mode of information gathering for most sport consumers has pro-gressed from newspapers to radio to television to the Internet. Changes in mediaplatforms have resulted in employment opportunities and in alterations to someestablished sport norms. In addition to a proliferation of satellite and cable TVnetworks and delivery options, many professional and college leagues and con-ferences now have their own cable sports networks. The NFL, NBA, and MLBall have their own networks. The Mountain West Conference (Mtn) and BigTen Conference (Big Ten Network) have led the way in college sport. Individualfranchises (such as the New York Yankees with the YES Network) as well asindividual schools (such as the University of Texas) have developed their owncable networks.

The Internet’s “viral” nature (through the sharing of files, video sharing-websites, blogs, digital networks, and “old-fashioned” email) has enabled blog-gers to wield significant influence in the sport industry. For many years, manysport franchises did not view Internet writers as “real” journalists. Today, mostteams have begun to recognize prominent bloggers are an important part oftheir media constituencies. As technology continues to evolve, the need forsport organizations to tell their “story” through the media will not change, butthe platforms by which that story is conveyed will undoubtedly be much dif-ferent. Students seeking employment in sport media should understand theunique nature of sport media relations, and prepare for continued rapid changesin the future.

Sports AgentsThough being a “player agent” is probably the number one career non sport-management people think of when sport management is mentioned, an infini-tesimal fraction of sport-management students will ever work as a player agent.



Though multimillion-dollar athlete contracts and movies like Jerry Maguiremake the layperson think there are numerous player agents and many of themare financially successful, in reality only a few player agents make substantialsalaries. For every Scott Boras, Leigh Steinberg or David Falk, there are thousandsof other agents who have considerably more dreams than clients. In many years,the reported number of agents exceeds the number of players in several sports.

Though the player-agent industry now involves millions of dollars, the firstathlete-agent agreement began with little more than a handshake. In 1960,Attorney Mark McCormack noticed that golfer Arnold Palmer had establishedhis career as a successful performer. With television rapidly increasing its cover-age of golf tournaments, McCormack approached Palmer about managing hisendorsement opportunities. McCormack’s success with Palmer’s career attractedother golfers such as Jack Nicklaus and Gary Player. McCormack’s agency, IMG,would eventually sign numerous other golfers and tennis players. Later, IMGexpanded its agency to represent athletes from other sports, as well as entertain-ers, politicians, and models. IMG also began to manage sport and entertain-ment events.

The success of McCormack and IMG led other individuals to work in theplayer agent business. During the 1970s, numerous attorneys expanded theirbusiness to include athlete representation. As the value of player contracts esca-lated in the 1980s, many individuals became full-time agents rather than attor-neys who “also” represented athletes. In the 1990s many prominent agents beganto expand their client services. Instead of merely negotiating player contracts,most large agencies began to design marketing and sponsorship campaigns,offer financial advice, retain nutritionists, personal trainers, and sport psycholo-gists, and perform statistical analysis of their clients’ athletic performance.Currently, most “successful” agents represent many clients and allow their pastsuccesses to supplement their recruiting efforts.

Becoming a prominent player agent is one of the most difficult sport-careerpaths. Competition within the industry is fierce, with some agents notoriouslycircumventing established rules, laws, and ethical guidelines (See Chapter 5—Ethics and Ethical Decision Making) to attract clients. The actions of players,coaches, parents, and “advisors” can make the life of an agent difficult—partic-ularly since most agents rely on their commission as a primary source of incomeand are therefore usually not in a position to say “No” to most requests. Fewsport-management students realize an agent’s long hours, tough working condi-tions, and stressful lifestyle. Students wishing to become an agent should seekopportunities to work for an established agency. Though most agents are reluc-tant to share their secrets regarding recruitment and retention of clients—forfear of training someone to eventually become their competition—there aretypically opportunities to work for agents doing a variety of tasks such as coor-dinating athlete appearances and researching marketing opportunities. Studentswho desire to become an agent should not abandon that dream, but should real-ize the incredibly tough environment in which player agents operate.



Athlete Foundations With the large salaries that some professional athletes earn, there is often a pres-sure to “give back” to the community. Most prominent athletes have eitherestablished charitable foundations or work closely with organizations thatattempt to enhance the livelihood of various constituents. Athletes can generatepositive publicity through their charitable work with schools, hospitals, andother entities that serve the community. There are potential internship andemployment opportunities working for athlete foundations. This has becomeespecially important over the past five years as many athletes have been publiclychastised and, in some cases prosecuted, for allowing family members and closefriends to improperly operate their charitable foundation. With an increasedemphasis on operating athlete foundations as a legitimate non-profit organiza-tion, many of these organizations have sought sport management students forinternships and entry-level employment.

Sport Tourism Though tourism is one of the world’s oldest industries, many components oforganized sport tourism in the United States have only been developed in thepast 30 years. In the United States, the 1904 St. Louis (Missouri) World’s Fairwas organized in concert with the 1904 Olympic Games. Hosting both eventswas designed to maximize the number of tourists who would visit St. Louis.Despite the success of the 1904 Olympics, most sport events in the first third ofthe 20th century were primarily viewed as “local” events. However, during theheight of the Great Depression, the 1932 Los Angeles Olympics attracted manyspectators who spent money in the Los Angeles area. In 1939, the NationalBaseball Hall of Fame and Museum was opened in Cooperstown, New York.Despite the ongoing economic depression, the induction of the first class ofbaseball hall of famers generated substantial onsite attendance and nationalmedia attention. Other sports and leagues would later establish their own Hallof Fames to attract tourists.

In the United States, the link between sports and tourism has continued togrow. Various companies, particularly those in the restaurant, hotel, and car-rental industries, reap economic benefits when sport events attract tourists fromoutside the community. Tourists who spend money generate “economic impact,”which can spur employment opportunities and enhance tax receipts. Certainly,most cities’ convention and visitors bureaus attempt to attract as many sportevents, and sport tourists, as possible.

Attracting sport events to a local community is perceived to be importantenough for many municipalities that agencies specifically tasked with attractingsuch events have been established. The San Jose Sports Authority (SJSA) is anexcellent example of an agency established to attract sport events to a community,in order to attract tourists and generate economic activity. Long overshadowed by



San Francisco and Oakland to the north, the City of SanJose established the SJSA in 1991. Since its creation, theSJSA has worked to bring sport events such as the NCAADivision-I Women’s Final Four, NCAA Division-I Men’sBasketball Western Regional Finals, Major LeagueSoccer All-Star Game, Siebel Classic (Senior PGA event),and numerous U.S. Olympic trials to San Jose.

There are numerous opportunities to work in sporttourism and new opportunities are continually beingdeveloped. Recently, travel companies have developedsport tourism packages that offer organized tours of sta-diums and other sport facilities in a variety of cities. It is likely that sport tourism opportunities will con-tinue to expand in the future, making this an impor-tant potential outlet for internships and employmentopportunities.

Employment PlacementThe growth of the sport industry and the proliferation of sport organizationshave resulted in the creation of companies that specialize in helping sport man-agement students find internships and entry-level employment. In addition,many such organizations link established sport management professionals tosport organizations that need specific skills. For instance, TeamWork Online(through its web-based services) assists sport organizations in finding employeesand employees finding open sport-management positions. Six Figure Sports isanother company that specializes in helping sport organizations seeking employ-ees, but their focus is typically upon executive-level searches. It is likely that asthe sport industry continues to develop, additional organizations that provideemployment consulting will be established, creating additional sport-manage-ment employment opportunities.

Sport SponsorsThe importance of sport sponsorship has grown over the past 20 years—bothfor sport entities and for local, regional, national and international companies.With sports becoming a larger component of many individuals’ everyday lives,many organizations have realized that they must actively attempt to under-stand sport sponsorship and its potential costs and benefits. Many Fortune500 companies have staff members specifically tasked with evaluating sport-sponsorship opportunities. Sport-management graduates often have a uniqueunderstanding of what makes a sport athlete, team, league, or event worth-while for potential sponsorship. Though working in the corporate world maynot seem as “exciting” as working for a team or league, there are some potentialbenefits. Most Fortune 500 companies offer much higher salaries than those in


The San Jose Sports Authority works to bring events such asthe Rock ‘n’ Roll San Jose Half Marathon, with an estimatedeconomic impact of over $16 million annually, to San Jose.

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other sport-industry sectors. In addition, though employees are expected towork diligently, especially during sponsored events, there tends to be a more“reasonable” expectation of working hours and better fringe benefits (excludingthe opportunity to be a part of a potential championship team). Even if a com-pany does not have a division devoted specifically to sport-sponsorship, mostorganizations task their marketing staffs with exploring all possible outlets toenhance their brand. There are many sport-management graduates working in“marketing” for non-sport organizations who maintain a close contact to theindustry through marketing and sponsorship opportunities.

ConclusionOpportunities for internships and entry-level employment in the United States’sport management industry are extremely diverse. There are myriad avenues forstudents to pursue. Certainly, developing a knowledge base by studying theindustry is important for future success, but understanding the nuances of vari-ous subsectors can only be accomplished by working in that industry area.Students should begin to explore potential opportunities immediately, as noemployer will ever tell an applicant that they have “too much experience” for asport-management position.



3

57

C H A P T E R

Interview

INTERVIEW 3.1

Tom ReganAssociate Professor of Sport and Entertainment Management

University of South Carolina

In the nine years that Dr. Regan served as chair of theUniversity of South Carolina Department of Sport andEntertainment Management, the undergraduate pro-gram expanded to over 500 students, new faculty werehired, a master’s program was created, and plans to starta doctoral program were implemented. Throughout Dr. Regan’s tenure as chair, the academic requirementsconsistently increased and USC’s graduates positivelyimpacted numerous areas of sport and entertainmentmanagement. Through Dr. Regan leadership, USC’s sportand entertainment management undergraduate pro-gram has become one of the best in the country and itsgraduate program is in position to begin to attract qual-ity students from throughout the world.

Q: Can you briefly describe your background and careerpath?

A: I was born and raised in Miles City, Montana, one ofsix children of blue-collar working parents. I attendedthe University of Wyoming on a baseball scholarship andgraduated with undergraduate (1979) and master’s(1981) degrees in Accounting. My first job after gradua-

tion was as a staff accountant for Fox and Co. CPA’s (laterFox/Grant Thorton after a merger). After two years I tooka job as the senior accountant at Natural Gas ProcessingCompany. Within six months I became the controller andworked for the next eight years with NGP, Wyoming GasCo. and other entities we purchased.

I then wanted to do something that involved mypassions of sport and business. The University of North-ern Colorado had a new sport management doctoral pro-gram. Though I was initially concerned about someaspects of the new program, I enrolled and enjoyed tak-ing courses that conformed to my business background.I finished my degree by writing my dissertation on theEconomic Impact of the Denver Broncos. After gradua-tion in May 1991, I took an academic position at theUniversity of South Carolina in the Department of SportAdministration (since renamed) under the tutelage of Dr.Guy Lewis, who started the University of Massachusettssport management program many years before. USC’sprogram was attractive because it was business orientedrather than physical education or recreation focused.



I have stayed at the University of South Carolina inthe Department of Sport and Entertainment Manage-ment since my initial appointment. After being tenuredand promoted in 1997, I was named the DepartmentChair, a position I held for over nine years. During thattime the department grew from 151 students and threefull-time tenure tract faculty members to over 500 stu-dents and 10 full time faculty members.

Q: What have been the biggest challenges your haveencountered during your career?

A: Balancing work and family is always a challenge. Ihave tried to never let work get in the way of being at mychildren’s games or significant events. I can work later inthe day, at home or on weekends to make sure I keep mypriorities in order. Everyone needs to maintain balancein their mental, social, spiritual and physical lives. Prop-erly juggling home and work lives often takes planningand commitment.

The academic world often reacts slowly to changeand accomplishing goals quickly can sometimes be achallenge. Working within a bureaucracy is often diffi-cult and a university has multiple layers of approval formost activities.

Q: What are the most important skills for sport manage-ment students to develop?

A: • Interpersonal communication (writing, especiallyactivities outside of Twitter/Texting)

• Entrepreneurship (ability to problem solve andincorporate ideas from various aspects of business

• Public speaking

• Sales—the ability to sell is critical

• Accounting

• Strategic Management—this is often the differencebetween the manager and the subordinate.

Q: What classes do you recommend students take whilean undergraduate (especially electives)?

A: • Public speaking

• Accounting

• Finance

• Marketing

• Sales

• Graphic design (helps with sporting events—cre-ating brochures, etc.)

• Foreign language—It is a global economy and for-eign language skills are invaluable.

• Computer skills—this is essential. At a minimum acomprehensive understanding of MS Office isneeded but additional skills are helpful.

Q: How do you teach students to understand that sportmanagement extends beyond becoming an agent or ageneral manager of a professional sport franchise?

A: • There are more neo-natal surgeons than GeneralManagers of a professional sport franchise. Consid-ering how difficult it is to become a surgeon, stu-dents should consider the likelihood of becominga GM.

• I tell the students who are interested in being anagent to go to law school and build the agencyafter they have established a solid practice as anattorney. You have to make a living, and agencywork is a dog-eat-dog world where lots of financialresources and contacts are needed. If you do nothave a client, you are not an agent!

• I tell them to read biographies of successful sportmanagers from a variety of fields.

Q: Where are the best places to find jobs in sport man-agement presently? Where do you see the largest areasof growth for sport management jobs in the future?

A: • Jobs that are related to facilities (professional, col-lege, and interscholastic sport and entertainmentvenues of all sizes) are available. The challenge formany facilities is how they will pay for the debt thatwas accumulated to build the venue. Increasing thenumber of events is the likely answer and there willbe jobs in that area of the business.

• Largest area of growth will be international eventsin Asia. Many Asian countries have a growing mid-dle class with disposable income and free time,which means they will be looking for opportunitiesto spend some of that money.



Q: Do you typically advise undergraduate students topursue graduate school?

A: For students who want to pursue a career in collegeathletics a master’s degree is required. For other fields it

is not required, but the skills that can be learned in grad-uate schools can certainly help. Specific careers (agent—law) do require a specified graduate degree, but thereare many successful sport managers who do not have agraduate degree.

Study Questions1. Describe the main areas of potential sport management employment?2. Why are entry-level salaries in major professional sport and Division I athletics low compared to other industries?3. What specific companies contract with college athletic departments to handle various marketing opportunities?4. What specific companies provide facility management services for sport and entertainment events?5. How can a sport management graduate work actively in sport without actually working for a company that prima-

rily offers sport-related products or services?6. Conduct research regarding the various sub-industries described in this chapter. What other companies exist that

could provide internship and employment opportunities?

ReferencesAbout us. (n.d.). Retrieved March 10, 2010 from http://www.aegworldwide.com/08_corporate/about_us.htmlCoakley, J. (2009). Sports in society (9th ed.). New York: McGraw-Hill.Company background. (n.d.). Retrieved March 10, 2010 from http://www.global-spectrum.com/default.asp?lnopt=

1&sn1opt=1&sn2opt=1&month=4&year=2010&newsID=0Jones, A. (2008, February 13). Regents board approves logos on coffins. The Atlanta Journal-Constitution. Retrieved

March 14, 2010 from http://www.ajc.com/metro/content/metro/stories/2008/02/13/coffin_0214.htmlLombardo, J. & Smith, M. (2009, May 25). Ga. Tech hands ticket sales to Aspire Group SportsBusiness Journal. Retrieved

March 27, 2010 from http://www.sportsbusinessjournal.com/article/62558NCAA. (n.d.). Division III philosophy statement. Retrieved April 12, 2010 from http://www.ncaa.org/wps/portal/ncaa

home?WCM_GLOBAL_CONTEXT=/ncaa/NCAA/Legislation%20and%20Governance/Committees/Division%20III/General%20Information/d3_philosophy_stmt

SMG at a glance. (n.d.). Retrieved March 14, 2010, from http://wwwsmgworld.com/worldwide_venues.aspxVenue list. (n.d.). Retrieved March 13, 2010, from http://media.eventbooking.com/57957_st.pdfWhat’s the difference between Division I, II and III? (n.d.). Retrieved March 14, 2010 from http://www.ncaa.org/wps/

portal/ncaahome?WCM_GLOBAL_CONTEXT=/ncaa/ncaa/about+the+ncaa/membership/div_criteria.html


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