The NCAA (NationalCollegiatee Athletic Association) is very complicated right now. We are only really referring to big-time college football, men’s football, and men’s basketball. Issues are revolving around the black market and the Adidas case where guys were arrested for handing money over. These things wouldn’t exist if there wasn’t pressure around young athletes on national television. Tons of money around them and they aren’t seeing any of it. These are enormous businesses, and these issues defy common sense.

One fundamental question asks if there is something to look at here or not. In 1984, a class-action suit was brought by the major football schools against the NCAA and Walter Byers negotiating to make their own television deals. This case, known as the Oklahoma Board of Regents V NCAA was a supreme court case where Notre Dame at the University of Texas thought that they should be able to make their own deals instead of going through the NCAA.

The NCAA responded to this by explaining that their actions were a restraint of trade and antitrust. They went to the Supreme Court and the court favored the NCAA, confirming that it was a restraint of trade and antitrust. The Athletic Director of the University of Texas, Frank Broyles, says, “These schools can now kill what they eat.” This began the proliferation of conference and school deals for the selling of television rights.

March Madness Keeps Schools Connected to the NCAA

Here’s the curious thing though. Around that same time, another significant college sports phenomenon started becoming extremely popular with the advent of cable television and ESPN. This is known as March Madness with college basketball. Many of the schools with excellent football programs also have excellent basketball programs. However, strangely, the now one billion contract for March Madness is still retained and controlled by the NCAA instead of the schools.

Why would these schools insist on having football rights but not basketball rights? The answer is that if they take basketball rights too, then they wouldn’t need the NCAA anymore. Without the NCAA and the student-athlete, their economic model falls apart. This beautiful thing that rakes in tons of money without paying anyone for it would be gone and there’s no justification for that.

Global Sports: The International Olympic Committee’s Rule 40

People who have no ethical or moral center are aggressively challenging sports business today. They don’t understand, and they don’t care. They don’t care if student-athletes are illegal or if closed professional leagues are illegal. They don’t care that the IOC (International Olympic Committee) has something called Rule 40, which doesn’t allow Olympic athletes to promote their sponsors while competing during the Olympics. The IOC controls all of the sponsorships for the Olympics, so they control the exclusive rights and make all the money.

These strict policies may be completely unfair, but they are what make them so brutally efficient and economically advantageous. They dispassionately, coldly, and clinically understand the models of profit.

Sports Management Education

Until you understand these types of sports business models, then you are just another guy calling up sports talk radio to give your opinion. You need to grow up. Do you want to run this thing? Do you want to own this thing? Do you understand what it means? Do you want to change this thing? If you think it’s a lousy system and want to change it, then maybe you need to join them to beat them because you have to understand it before you begin.

How do teams make money? They make money now in almost any way you could imagine, as long as it touches on something related to sports. What does that mean? It means that in the past, we looked at team revenues in terms of ticket sales, then in terms of merchandise, and some of the other ways that we think about going to the game.

Sports Management Education Examines Added Revenue Streams

But over time, certainly, over the past 50 years, we’ve seen revenue come in major numbers, in billions of dollars through television rights. Now we increasingly see it coming through all the ways we get to watch our games. As if that’s not enough, enter sports betting and all sorts of things online, including E-sports.

Television Revenue in Sports Management

Television revenue for the past 30 or so years has been a major driver of revenue for sports clubs and franchises anywhere in the world. Now what we’re starting to see, of course, is that it’s not just about watching them on television. We also watch on a second screen, which is kind of interesting, because it’s now for many people become the first screen.

Global Sports Access

Anywhere and anyway people are accessing sports, whether it’s a game, a behind the scenes video, or a little piece of the action that you didn’t even know existed, all of that is worth many billions of dollars to teams and the players who play on those teams, plus the players we watch in individual sports, like golf or tennis.

One of the first things that happened in media history was the inclusion of a sports page in the newspaper. This happened in the 1800s when there were penny papers. The newspapers really needed to figure out how they could sell their papers to new audiences and people who weren’t already reading it. Sporting news was a great way to achieve that goal.

So, they began including a page on sports. A new kind of customer base came in and wanted to read about that. It really helped to legitimize sports as a force in society. That’s one of the only things that you can pick up the paper and really know it has its own section.

Radio’s Role in Global Sports Media History and the Need for Sports Management Education

That’s one piece of sports media history. Obviously, following newspapers, we had radio, where people could sit at home and listen to broadcasts of games. Even if they weren’t in that city, they could still feel like they knew what was happening in the game, and they didn’t have to wait until the next day’s newspaper came out to read about it.

Television Contributes to Media and Online Sports Management Education

From there, the evolution goes into television. One of the unique aspects of sports is that nobody really wants to watch a game that has already happened because it’s too easy to find out what the outcome was, especially today with the internet. There was one monumental game that in 1997 was actually voted the most popular network broadcast of a sporting event ever.

We became the first North American team to acquire an esports franchise in September of 2016. The numbers behind esports are staggering. More people watch the League of Legends World Championships than the BCS National Championship, the NBA Finals, the World Series, the Stanley Cup Finals, et cetera.

The numbers are staggering. The demographics are staggering. And enough fans have yet to be monetized in any way and have yet to really receive some of the professional treatment that sports entities, whether it’s teams or leagues or broadcasters, have currently reserved for traditional sports teams, as it were.

For us, in sports management, this was an incredible opportunity to meet this entirely new demographic, to understand the trends behind the success of esports over the last many years, and what we believe to be the continued explosive growth in the industry. Then, we were able to utilize the fact that we are part of an ownership group that is willing to invest behind somewhat risky, but at the same time, innovative, unique, and new ideas.

We spent a lot of time thinking about, one, do we want to invest in esports? The answer was, “Absolutely yes,” because of some of the demographics that I’ve talked about in the numbers. Number two, which was probably the hardest question to answer was, once we know we want to invest in esports, what is the vehicle that we’re going to choose?

For us, it just made logical sense, given that we are a sales and marketing organization, given that we understand how to run a team, and given that we are blessed to have some of the best sponsorship sales, ticket sales, marketing, fan engagement folks in the entire industry, if not the world.

We figured we could utilize those resources to help really grow Team Dignitas, which is the esports franchise that we acquired, and really help professionalize what is an incredibly exciting but an incredibly nascent industry.

The next six months, year, or three years will really show how successful we, as well as other franchises that follow our path, will be in professionalizing esports and really creating the next sporting behemoth in global sports.

But for us, it is very much about getting a seat at the table to an exciting industry with young fans, passionate fans, and really turning Team Dignitas, which is our investment in this space, into the marquee franchise in all of esports.

These are the kinds of subjects our sports management education course tackles.

What you’re seeing a lot of nowadays is that events are not only hosting sport-organization events, but obviously, they’re going to start hosting concerts. There are a number of concert series that will happen at Citi Field. So, they’ll clear out the entire field and make it an applicable space for any given concert or band.

There have been a number of different concerts that happened at the Mets stadium. One notable one is Billy Joel because he’s from Long Island, and he often represents Long Islanders, and therefore, New Yorkers. Again, it’s this whole idea that New Yorkers can go to Citi Field to feel as if this place is re-emphasizing their identity as a New Yorker, not only in terms of Ebbets Field, but also, in terms of the Jackie Robinson rotunda, which signifies this whole idea of the Brooklyn Dodgers’ history. It’s part of Brooklyn history.

Then they can go into this venue and see someone who represents New York, such as Billy Joel. We can usually take these venues and often translate them to outside events, such as concerts with Billy Joel.

What you’re starting to see is an evolution of sports organizations and sports management and how they’re constructing their venues. Previously, it was just however much capacity it could hold. Certain baseball stadiums would hold 50,000, maybe 60,000 seats, without mini suites or party events. And as you saw, perhaps in the early 2000s to 2010, new stadiums were limiting the capacity in terms of the amount of people the stadium could hold and opening up more suites areas, VIP areas.

The idea was while they might not be getting the extra 10,000 seats by going from 50,000 to 40,000 seats, they would actually be getting more bang for their buck in charging more for the suite tickets. They’re earning more revenue, getting more of a bang for your buck, given these suite tickets.

However, what we’re seeing today is that even these suite parts, or these web arenas or areas, in where individuals can come and pay a hefty amount for a ticket — those are actually starting to be on the decline because people are starting to prefer in-house watching. They’d rather actually sit in their house rather than come to a stadium. What stadiums have been doing nowadays is transforming some of these suite areas into priority areas, into communal areas, kind of representing certain living-room-style events.

It’s an interesting thing that sports organizations are now doing in global sports. They’re actually offering certain types of living-room-style events at the stadiums so family members can come together. Groups, communities can come together in this open space so it’s not just so much for watching the sporting event, but it’s more so a medium to come together where you can enjoy time together within the venue.

This information is part of our sports management education course.

The Atlanta Braves’ facility is a good example of a ballpark that is very interactive with the fans. They offer their fans sports perks like renting a baseball glove or ziplining at the stadium. In addition, there are a number of other exciting things that fans can do when they aren’t watching the game.

Sports Management Education for Marketing Global Sports

The interesting thing about this interactive model is that it also benefits sponsorships. Sponsors want people to come to the game. Often, they have signs at any given arena or stadium. For example, Pepsi places advertisements all over the stadium, and they want as many eyes on those signs as possible in order to see a return on their investment.

Great Sports Management Leads to Great Sponsorships

These interactive experiences are a great way to draw people to the ballpark. Sponsors greatly appreciate this because more eyes in the ballpark mean more eyes are their sponsorship signs.

Michael Shear informs us that there are a lot of data points fans hit when they attend a game. They are hitting data points when they use their mobile devices to buy tickets, enter the building or come in through a particular gate. Data points also track where the crowd goes once the game starts, whether they stay in their seats during halftime or leave, if they visit the concession stand and what their food and beverage choices are. This information is all pertinent.

He tells us that one of the first questions he was asked when he started was how many people turned left when they came into the main entrance of the building. This seemed like an off-the-wall question until he realized that Budweiser asked it. They were asking because they had signage to the left of the main bar and wanted to know how many impressions they were getting right out of the gate.

The way that he figured out the answer to that question was by looking at the ticket scans. Out of all the people who had their tickets scanned at the main entrance, he could deduce how many of them went to the concession stands on the left-hand side. From there, he figured out the percentage.

Sports Management Improves With Technology

Years later, after gaining more advanced Wi-Fi systems and mobile ticketing devices, he and his colleagues were able to verify that the initial hypotheses and percentages they came up with were correct. This showed that things were only becoming more impactful. As we enter more of the mobile space, teams are now relying on these things. They include mobile ticketing, mobile transactions, cashless arenas and other items of that nature.

We’re talking about broader data sets and how to manage them. How are teams going to capitalize on that, whether it’s to drive ticket sales or sponsorship sales? These data sets are only getting more extensive and more complicated to manage. They continue to be a challenge because teams need to focus on the fan experience. In some instances, a data warehouse would be beneficial.

What separates going to a live event or game from watching it in the comfort of your own home? This is the challenge that teams have to figure out. The data helps to leverage the personalization aspect and help put fans in seats.

Michael Shear says that when he first started this job, he thinks it was right at the beginning of the trend of leveraging data and analytics in sports. For example, there weren’t many teams that even had an analytic team or an analysis department. He and his associates more or less acted as the CRM (Customer Relationship Management) for the team.

Some teams were just using their ticketing system as a CRM platform, so they didn’t really know that much about their buyers. They weren’t aware of who the ticket holder’s favorite players were or what size shirt they wore. These details can come into play as marketing tactics. Before mobile ticketing, it wasn’t possible to accurately know the fans. You could know who purchased the hard ticket, but you couldn’t know who they were bringing with them.

The Future of Global Sports Relies on CRM

Now, things are definitely more about the big data aspects. The advent of mobile technology has made a major difference. Teams now have entire departments devoted to analytics and business strategy. For example, the CRM of a sports team usually has to keep track of their fans. So, a fan buys a mobile ticket, and that sale goes into the CRM platform, which allows you to track that ticket’s behavior. For instance, you can follow what the fans are buying and what they like to buy, where they live, their geography, their demographics, if they’re married, if they have kids and things of that nature. This is a way for the service team to keep that line of communication open and try to either upscale the fan or personalize their experience.

Is golf a sport? The Supreme Court said in the case of Casey vs. The PGA that basic ambulatory skill walking is not required in golf. Casey was disabled. He said, “I don’t need to walk in between holes.”

PGA said, “Yes, you do.”

“Well, that’s not what golf is,” said Casey. “It’s just hitting a ball. I don’t have to walk.”

How can you call something a sport? Walking isn’t needed, but it’s a sport. Is it a sport just because it’s on ESPN? Poker is on ESPN. Is that a sport? Is hot dog eating contest a sport? What tells me it’s a sport? Is it training? Is it practice? Is it competition?

Competition. That’s what it is. Well, brain surgeons are competitive. Are they athletes? Artists are competitive. Are they athletes?

You get to this question very quickly in sports management when you start to talk about esports. Are these people athletes? Well, if you think about the classic athletic traits of speed, strength, endurance, I don’t know. It’s hard to say.

Who wins a running race? A fast baseball player, a fast golfer, or a typical esports athlete? Are they athletes or is just this something that we put the word sports on, put the structure of professional sports around it to make money off of it, and then we say to ourselves, “Yeah, that’s a sport.”

It’s a sport because they have reflexes like a race car driver. It’s a sport because they have to sit for a long time. It’s a sport because of concentration. I suppose you could make up all kinds of arguments for and against. There’s a definition of what is sports business that the North American Sports Management Association provides, and roughly, it says, pretty much anything: anything that’s sports related in global sports or any activity involved in or related to sports.

So, you see, lots of things begin to become sports business. The answer really is, when we’re talking about sports business, we’re not always talking about sports. That’s important because you may run into an existential problem with the business you’re running when people no longer are turned on by the activity or turned on by the human quality that makes a human or one human exceptional vis-a-vis another human. All that you’re really interested in is the pop cultural or commercial elements of the enterprise.

I don’t know if esports is a sport. I don’t watch it.

These are existential problems to consider for students in sports management education.

There was a time in American history when the country had no income tax and great monopolists ruled the corporate sphere. Monopoly was the defining characteristic of the American economy.

Sports was no exception. Major League Baseball began to demonstrate that it was an unfair monopoly violating antitrust laws, specifically the Sherman Antitrust Act. The case went all the way to the Supreme Court, where the justices essentially ruled “Baseball was a monopoly, but that’s okay.” Their underlying legal argument that baseball was not interstate business and that all business in baseball is local.

This was a fiction. The real argument was “Well, it’s sports. Everybody likes it, and so we should give it an exception from antitrust laws.” The court’s action formed the first closed league in world history, a legal monopoly. No one else has the ability to form Major League Baseball in any city, territory, or other part of the United States. The only Major League Baseball is Major League Baseball – an excellent economic model for them.

After baseball in the 1920s, professional football leagues and other nascent leagues began to form in a large-scale professionalization of sport. Athletes were paid and coached. Being trained began to take hold. Sports management grew as a viable academic field and profession.

After World War II, the country settled into a different mindset where television began to dominate the cultural space of American homes. In 1958, right before New Year’s Eve, the National Football League became lucky. Their NFL championship game, between the New York Giants and Baltimore Colts, was on black-and-white TVs all over the country. It was an exciting game in a snowstorm, with sudden-death overtime and great heroes such as Johnny Unitas and Frank Gifford.

Both America and football fell in love. America, football, television, and the whole world saw that money could be made for people who understood the power of television as it related to the broadcast of live sports.

The International Olympic Committee also took notice. Already, major sneaker companies and Olympic athletes had formed relationships. The acceleration of those relationships, combined with the acceleration of non-sports brands with live sports, became as big as almost any business in the world. For the next forty years, live sports dominated television, through the creation of cable in the late 1970s all the way to the beginning of the 21st century.

Today, the major questions remain: will the value of live sport continue to anchor the value of the $600 billion global sports business? Will different kinds of consumption, from different kings of consumers, through different kinds of technology diminish or increase the value of sport in the marketplace, particularly due to the increased ways of consuming it? How must sports management education adapt?

In sponsorship, an activation is what really brings that sponsorship to life. The sponsoring company and sports organization have come to an agreement. They’ve signed a contract, but then beyond that contract, there are these activities that we call activations. And that’s where the sports property and the sponsor will work together. They say, ‘OK, what can we do creatively to make our consumers aware that this sponsorship exists but also potentially to give our fans and our consumers a sample of the sponsor’s product or the sponsor’s service?

Some examples of that would be signage featuring a Coca-Cola logo that goes all around the entire stadium. Other examples might include names that come up on a board or ‘this is the Halftime show brought to you by AT&T.’ Some of the more intricate activations include Taco Bell’s “Steal a Base, Steal a Taco” promotion or when Lucas Oil Stadium had an in-arena store. Those are all examples of activations, and now that you understand that, take a look around the Barclays center and ask, ‘where are there opportunities to activate sponsorships?’ So if you had a sponsor, what would you do in this particular arena to activate it?

New Sports Management Promotional Opportunities

What makes Barclays Center a little bit more unique than any other arena here in the tri-state area is being in literally the center of Brooklyn. Brooklyn did not have a world-class global sports venue of that spectrum or of that size until five years ago when Barclays Center moved. We pick up markets similar to Madison Square Garden as well as a very new kind of Brooklyn market. So besides the shape, which is obviously a unique factor of Barclays Center, I think the location is important from a marketing perspective. From my understanding, the Oculus is supposed to be immediately eye-captivating. So you walk in, and you kind of feel like you’re in a big space even though you’re outdoors. And the Oculus within the circle is just a large LCD television displaying different videos and marketing pieces 24 hours a day, whether it’s the Nets or upcoming concerts. So, even if people are in the nearby mall, they still can glance over and see what’s coming up at Barclays Center.

Sports Management Education and Next Generation Mobile Marketing

An activation is basically interactive marketing. A customer feels like they’re putting their hands on the brand a little bit. And so we have a number of partners, especially here in spirit partners, where a brand will put their name on the label of a bar. Most of our partnerships are on contract years, and as a contract year ends, we might rotate a new partner in. Most of our in-arena activation is constantly full because of a very high demand for the Brooklyn market. A lot of brands love associating themselves with Barclays Center so they can get their name out there. The LED lighting that we have at the arena-not just the Jumbotron, but all the LED lighting around the arena-is just additional marketing collateral. And for our brands, it’s another way for them to associate themselves with Barclays Center. I know a lot of our health partners put their ads on those LCD screens. It’s just a way to highlight a deal they have going on or get their name out there.

Measuring impressions is probably one of the most exciting new data studies I think arenas are doing. There’s so much constantly growing and changing with that. The most obvious is scan, so we know exactly how many people come into the arena. So if it’s something big like the center Jumbotron, we’ll do count scans. Chances are everyone that entered the arena saw the Jumbotron, but if we’re looking at an LED light on the suite level, then we’re only looking at specific suite buyers or specific suite scans. We also have different activations that are just temporary. American Express has their own little box on our concourse, and we’ll have video games and interactive material in that box, and we can actually measure how many people walk in and out. I know a number of arenas are doing other very interesting things with impressions. A lot of people have sensors on the ground so they can feel how hard people step if they’re getting really excited and measure impressions that way. It’s getting very interesting.

Everyone’s phone has a Mac address that’s unique to that cell phone. So, when someone uses their app, it allows us to provide them with a better experience. We can see the concession stands they visit more frequently. We can gauge sentiment off social media pages, and we can also remarket to them very specifically based on what they like. Because BSE is a brick franchise, we have a number of arenas and venues. If they’re simply just a Nets fan, we’ll only market Nets. If they’re just an Islanders fan that only goes to games in Nassau Coliseum, we’ll only market that material. Having Mac IDs and cell phone data makes that a lot easier than just through email. So what we’re doing with the Mac ID is really an immediate remarketing campaign. If you like something on Facebook that’s Nets Team specific, we will then promote a Nets package to you. So it’s a very, very targeted program that uses that cell phone data.