Sports Management 2
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IOC ready to raise price of joining its TOP program

IOC ready to raise price of joining its TOP program | Sports Management 2 | Scoop.it
The International Olympic Committee plans to increase the price of sponsoring The Olympic Partner program, ending a decade-long period where official Olympic sponsorships averaged $25 million a year.
Jay Nunes's insight:

Sport Organizations

 

The thing that I learned was that the International Olympic Committee’s “TOP sponsors” list was designed to give brands an opportunity to affiliate with the Olympics and promote their association with the property worldwide. The program has become one of the pre-eminent global sponsorship packages in sports, raising more than $3 billion since its creation and increasing in value by nearly 50 percent in the last decade, from $663 million to $1 billion. I also learned that the last time the IOC (International Olympic Committee) tried to increase sponsorship prices significantly in the early 1990s, it lost three or four sponsors. But it managed to find new partners and set a market rate that was consistent across most of the 10 to 12 TOP sponsors.

Since, I wanted to know the economic situation with the Olympic Committee I found the fact that they cap the maximum number of TOP sponsors between 10 and 12 very interesting at first. After I realized that a business runs off of supply and demand just like our economy it hit me that the reason why they cap the sponsor number at 10 to 12 is to keep companies wanting to pay the necessary amount to get their name recognized at the Olympics. It was educational to read about a business strategy for a world class organization and how they keep their supply and demand so high despite high prices.

I selected this article because I recently read another article talking about how prices for television rights to air games on networks has steadily increased over the last ten years and this one talked about how the International Olympic Committee has kept theirs the same. However, now they plan on increasing Olympic sponsorships so I wanted to read into why there is a change. I wanted to see if the sudden change was because of a different reason then the increasing price of television rights.

This information will help me in the sport management industry because it helped me realize how supply and demand can make or break a business regardless what the size of the business is. Whether it is a local business or a world renowned sport business you must understand how to control supply and demand or else you could put your business in harm’s way. Once you get to a level where you want to be a person can then set a standard or raise a standard knowing that there will always be a demand.

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Seattle Sounders have discovered the fan formula

Seattle Sounders have discovered the fan formula | Sports Management 2 | Scoop.it
The most news and entertainment portal from a Canadian perspective. Television, major newspapers across Canada, health, sport, entertainment, lifestyle, free email and more.
Jay Nunes's insight:

Sports Franchises

 

The Seattle Sounders have found out how to create a “fan formula” for drawing back spectators to watch their games. Tod Leiweke says it started with understanding the sports ever changing landscape; that the millennials (otherwise known as Generation Y) needed to be the target market. Team ownership looked back into the past to find out a strategy to get fans back that used to go to the game. These fans are the fans who grew up in rich sports’ culture and watched international games. A key to a successful business isn’t quite finding the right consumer age but the right consumer demographic.

I found the fact that the management and marketing team went back in the records to see what it might take to get fans back to the stadium very interesting. I knew that you could help predict the future with the help of the past but it was very educational to learn that instead of predicting what could happen, a business man could target a group that used to be a huge consuming demographic and target them again when they were older. I believe they might be able to do this because as people age they have more disposable income and time, which does not apply to everyone but generally people have less to pay on mortgages, bills and things which gives them more disposable income.

The Seahawks and Sounders are world renowned for having such a strong home field advantage due to noise and support. I selected this article because Seattle is well known for its fan base no matter what sport is being talked about. The Seattle citizens and franchise fans attend the games so heavily that the noise can actually impair a person’s ear drums. I wanted to read about how the Sounders had found their “fan formula” because in order to make your team happy and money coming in you need to have attendance at games and support off the field.

The information provided in the article will help me in the sport management industry because it gave me the understanding that a business can successfully target consumers at different times in their life and be successful multiple times. Usually people try and target the “consumer ages” between 18-26 but there is a business in targeting the older generations also. It could be sentimental value or some other factor, but older people will spend money on something that they consumed before in their younger ages. Also, the information helped me realize that the sport industry is more of a science—you must understand the process in order to be successful.

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CBS Trying to Achieve "Smart Deals" Through Patience In Sport Media Conent

CBS Trying to Achieve "Smart Deals" Through Patience In Sport Media Conent | Sports Management 2 | Scoop.it
W e’re in the middle of the most expensive period in the history of televised sports, with more channels spending more money to pick up more rights.
Jay Nunes's insight:

Sport Media

 

 

I learned that we’re in the middle of the most expensive period in the history of televised sports. At this point in time there are more companies in the sports media market trying to pick up rights. CBS, a famous name in the sports media market, has cut back on their spending on the mega million dollar deals that the rights are going for today and in return are only doing “smaller, smarter deals”. Their strategy is to cut back spending for a longer period of time, and eventually they hope the patience will pay off.

Traditionally since CBS has been a big name in sport media I wanted to see why they suddenly had a plan to cut back on spending. I found that the high prices might level off as networks mature but they are not likely to come down. I find the idea of a “sports bubble” which suggests that the whole price situation and popularity of television rights might “pop” very interesting. I also believe that is why CBS’s strategy is to save as much money as possible now and make small deals. The company is looking at the bubble and cuts in spending as an investment.

I selected the article because I thought that reading into sports media would be interesting. Usually people hear about what station the game is on or certain games are on but they don’t realize that the whole broadcast is a process. The article was very beneficial in recognizing what actually goes into the bidding for the rights to sports games.

This information will help me in the sport management industry because it will help me view sports media as a thing kind of like the stock market. I learned that you should treat everything as an investment or have some type of business plan if the business is looking into spending a large amount of cash. I also learned that the prices of media rights have been continually rising and don’t seem to stop; which makes me think that eventually in order to make some type of profit the cost of the rights will hit a plateau. Due to the competition between networks sometimes it is better to commit to smaller deals amongst two or more channels almost like a partnership. I am not sure when this plateau or “bubble” will pop or hit but it will help me learn how to better predict the media market and what is best for my business’ financial situation.

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