If you’re from a sponsorship organization and you’re willing to spend a lot of money, you have to take into consideration where the eyes of the consumers will be watching. However, it’s not just about the eyes. It could also be about the ears. For example, baseball games will often refer to the seventh-inning stretch. There’s an opportunity here for global sports organizations and sponsorship organizations to put in their sponsorship. They could arrange it so that the seventh-inning stretch is brought to the fans by a particular organization.

If you’re a sports manager who’s in charge of operating sponsors and thinking in terms of placement, you need to consider where the organization will perceive that the consumers are concentrated the most. And perhaps you’ll want to associate your sponsor with something that is heard often. So, sponsors really have to get unique and creative in terms of how they can offer their sponsorship opportunity. A unique example is the New York Yankees.

The New York Yankees in Sports Management Sponsorship

The New York Yankees, when one of their pitchers records a strikeout, has a sponsorship in place with P.C. Richard & Son and their famous whistle. With each strikeout by a Yankees pitcher, the P.C. Richard whistle is played. This offers two incentives for the company. One, a formerly dead space is now a space for the P.C. Richard whistle. Two, it offers a unique instance where you can transfer over a positive feeling, associating the feeling of a Yankee pitcher striking somebody out with this P.C. Richard & Son whistle.

Lessons To Learn for Online Sports Management Education Scholars

With sports sponsors, you have to be careful of what we call clutter, when a sports organization has a vast number of sponsorship organizations all in one place. This eventually leads to the consumer being overloaded with message capacity. If they are overloaded with messages, even though there may be 20 sponsors available for viewership, none are actually being taken in because the consumer is perceiving that there’s an overload.

Once overload hits, the consumers are not likely to retain any more information. As a sponsor, you have to be really careful where you place your sponsorship sign, for example, because you don’t want it to be part of the clutter created by other signs. You want to make sure that it sticks out. You want to make sure that it’s unique. And you want to make sure that it’s remembered by the consumers.

I want to tie this idea of fandom and identity into one extremely popular, well-known, and foundational marketing theory in sports, which is called “basking in reflected glory.”

Robert Cialdini coined that phrase. He did two experiments. He went to eight Division I college football schools, and he observed students on the Monday and Sunday after a Saturday football game.

When the team won, around 70% of the students on Sunday or Monday wore school paraphernalia. If the team lost, the inverse happened; very few people wore the school paraphernalia.

He did a second experiment where he called Arizona State students on the Sunday or Monday after an Arizona State football game, and he pretended that he was giving them a quiz to see if they remembered the facts.

But what happened was that every time a student talked about the team after the team had won on Saturday, they used the pronoun “we.”

“We had a great game. We really are going to go win the division. We’re going to the Rose Bowl.” We, we, we.

They didn’t play. They didn’t make a tackle. They didn’t score a touchdown. But they said “we” as if they were part of the team.

When the team lost, they used the pronoun “they.”

“They really need to get it together. They’re not doing what they ought to do.”

From these experiments, he concluded that people who have not participated in a winning activity desperately want to associate themselves with the winning team and with the winning activity. He called this “basking in reflected glory,” and he said, conversely, that they want to distance themselves and cut off reflected failure when the team loses. This goes to the heart of sports management education.

He also concluded that it wasn’t really about the fan supporting the team. It wasn’t about the fans saying, “I’m behind these guys.” It’s about the fans saying, “Look at me, like me. Like me because I associate with the winner!”

Basking in reflected glory is one of the most powerful aspects in global sports and almost as close to a sure thing in sports marketing as there is. If you’ve ever watched the Super Bowl or the World Series or the NBA Championship, what’s the first commercial they run right after the champion is crowned?

It’s a low-production value commercial. They’ve cut two of them, one for each team. They’re imploring you to dial this 1-800 number and buy all this crappy gear for the official winner like a championship hat, T-shirt, CD, and whatever other merchandise they have.

Why did they run that commercial? They run it because it works, because everybody can’t wait to buy that stuff to wear tomorrow and be like, “See who I’m with? I’m with the winner.”

There are sporting goods stores that open at midnight to sell the World Series-winning jersey, the Super Bowl-winning jersey. And people will line up around the block at midnight to buy it.

Some sporting goods stores, like for the Super Bowl, don’t know who’s going to win. So you know what they do? They make T-shirts for both teams. Well, only one team wins. What do they do with the other T-shirts? They throw them out.

It’s called the burn rate. They throw them out because they know they’ll make so much money just on the winners that they can afford to print two runs.

The problem is that, well, not every team wins. There’s only going to be one Super Bowl champion. There’s only going to be one conference champion or division champion. You can take advantage of the winning wherever you can get it. Remember that as you continue your online sports management education.

But really, there’s only a small percentage of those. How do you take advantage of this principle when your team isn’t the winner?

Have you ever suffered from Linsanity? What I’m talking about is a phenomenon surrounding a basketball player named Jeremy Lin. Jeremy Lin was at the end of the bench. Jeremy Lin hadn’t gotten in for three different teams.

But the Knicks had gotten players injured, and they had to put somebody in. They put in Jeremy Lin, and he went on this unbelievable heroic tear. What a performance: 16 games, he dominated; he was wonderful. He showed that not only did he belong in the league, but that he was an excellent player.

Now, I know for a fact that in that first week of Linsanity, Modell’s Sporting Goods, which is the New York-based leading sporting goods store merchandiser in New York, sold a crazy amount of Jeremy Lin merchandise items in the first week. It was equivalent to the Yankees winning the World Series and selling that kind of merchandise, or the Giants winning the Super Bowl. In the next two weeks, they sold more Jeremy Lin items than the Super Bowl-winning team and World Series-winning team two years combined.

Now who was buying the Jeremy Lin merchandise? Jeremy Lin is from Northern California. He’s 6 foot 2, played for Harvard.

What this meant to that community is that they went out in droves and started buying those jerseys, and it wasn’t just the Asian-Americans like Lin, but it was Asians, it was people in China, it was pretty much everyone. That’s how people bask in reflected glory.

The relationship between athletes and the media has changed significantly. Nowadays, athletes don’t necessarily need to rely on the news media to share their stories, successes, or activities. In addition to social media, sports organizations and sports management have the ability to share their own news now. In the past, they were reliant on traditional media, television stations, and newspapers for these things.

Social Media Is the Future of Global Sports

In some ways, social media has given athletes more power of their own. This freedom has empowered them to tell their stories. But, in another sense, this has made things more difficult for them because they have to stay on top of social media all the time. They have to constantly check on what people are saying and posting. As a result, we almost see the media reporting on what happens on social media now, rather than, just covering breaking news stories the way they used to.

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.

One example of the sports ecosystem is the Little Caesars Arena in Downtown Detroit. The community around this arena has always been vibrant. Even though it has seen its share of ups and downs, including more challenging times recently than in the past, it remains spirited.

We are looking at how sports can be used to grow a city through economic and social development. We are looking to take some of the things that aren’t working so well and use these events and venues to spur something new.

Sports Management Investments to Improve Development

Sports facilities have a unique way of helping communities come together. Part of this is due to the development of property that, otherwise, might not have a significant impact on the community for decades to come. It may be in a Brownfields area or an opportunity zone that would never see the level of investment if not for these facilities. So what we see in this type of ecosystem is the community coming to the downtown corridor to watch live sports.

Around 20-30 years ago, sports facilities were developed in the suburbs. People would trek out there or to areas on the fringe of the urban population to watch the games. Now we are seeing sports being developed more in the urban core. Along with that, we see transit and modalities that would never have happened if it weren’t for these investments.

This is not to say that sports are solely responsible for this kind of rebuild. It’s just saying that they helped accelerate the local government’s investments in the community. Sports helped bring more people to the local downtown market. It gets people to walk or take public transportation to the games, letting people spend more time in the urban core.

The Future of Global Sports Ecosystems

Whether these people live there or just visit, they are shopping there now. They are spending time and money there. They eat at the restaurants and see the events there. These people are crowding out money that’s usually being spent somewhere else. In addition, they are generating incremental income for the local community.

Let’s refer back to the example of Little Caesars Arena in the Detroit area. This building opened a year ago as the successor facility for the Joe Louis Arena. There has been a resurgence of putting sports in downtown areas. In Detroit, the Lions played out in Pontiac and the Pistons that played in Auburn Hills.

Even though the Joe Louis Arena was downtown, the Red Wings moved about a half a mile north to the Detroit District because there was a more modern facility there. It’s in downtown Detroit in a place called the District Detroit. It’s close to Comerica Park, where the Tigers play, and the Ford Field, where the Detroit Lions play.

Even in an area that has become a local sports hangout, you wouldn’t even know that the Little Arena was an arena if you walked up to it. Its facade appears to be offices, restaurants, and open spaces. It doesn’t look like the traditional arena of the past. However, when you walk in, you are greeted with videos and the history of the Red Wings and Pistons, who play there.

The flow through the building makes it a wonderful place to watch a sporting event. They offer many different ways to consume the game through great restaurants, shops, and video monitors. In addition, the inside of the building is full of digital media to help viewers enjoy the games. The Little Caesars Arena is a wonderful facility that will probably be the hallmark for how arenas will be built for the next several years.

Now there is this area in the urban core that is sports-related. But if you walk around, there are also restaurants, shops, and parking in the same urban core. More people are moving into the downtown corridor, which may not have happened without sports being built up there. It could have taken many more years to succeed without this kind of influence.

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.

In the early 1990s in Baltimore, it was time to build a new ballpark for the Major League Baseball Orioles. Part of the ownership group had the idea that there was a good place to do it in the inner harbor, an area with rich history that had seen better times and seen better days. This idea to put a new ballpark with an old style feel in the inner harbor around all of this history was a real innovation.

The ownership group also started to rebuild the area around it, not only for sports, but for all sorts of business, for all sorts of retail, for things that the local government was doing, and certainly for things in the social sector and the nonprofit space. But it really was a sports-led development that built the community. When some of the leadership from the Baltimore Orioles then moved over to San Diego with the Padres, also in Major League Baseball, it was time to build a new ballpark there.

Taking concepts for a new ballpark, giving them some historical touches with modern amenities, and doing it in a location that would really speak to things that are important to the community seemed to be a theme that was working and that was something to go on. It’s a fine example of a terrific venue that stands today and that’s in great use today.

The next project for this team was then to go to Boston and take on what became a renovation of Fenway Park, one of the oldest, most storied sports venues on the planet, at least in modern times. The renovation involved everything from rebuilding some of the seating — not all of it, because we wanted to keep some tradition and some history — but it included updating the luxury suites, putting some seats on top of the famous green monster out in left field, and putting a newer kind of seating in the right field stands.

For decades, beer was hand delivered off of a truck each and every day. It’s quite a cost in a number of ways. One of the things that they resolved to do with the new ownership was to take some property that sat across the street, a warehouse in particular, and to convert it into a beer storage facility. What they were able to do was then pump the beer through lines into Fenway Park, cutting down costs for sure but also making things much more efficient and effective.

An International Sports Management Education Example

What’s interesting about this group is that along the way, the Boston Red Sox ownership, led by John Henry, purchased an English Premier League football club, Liverpool, one of the most storied organizations in all of global sports. And along with that comes Anfield, the venue that Liverpool has played at for ages. That ‘s more than 150 years old. You can begin to imagine maybe what it is that might be done in terms of renovating that if we look at the timeline between what happened in Baltimore, what happened in San Diego, what happened in Boston. This is quite a sports management project.

In the traditional sense, any given time where a content provider, which is a sports organization — say, the Houston Texans — wanted to give information about one of their players to the fans, they would give it to the mass media first. And the mass media would then distribute it to the given audience and probably a mass audience. If a player was hurt, for example, the Houston Texans would utilize that information and give it to ESPN.

Not only would they be able to give it to ESPN how they wanted, but then ESPN would choose how they would want to distribute that piece of information to the fans. So the fans are actually getting watered-down information not only from ESPN, because ESPN chooses to craft the message how they choose, but the information which comes from ESPN is actually coming from the Texans first.

There’s been an interesting example when social media started to hit its stride in global sports. Arian Foster was hurt in a game. He tweeted out an MRI picture. Now, this is a great example of how a piece of sports information changed drastically in terms of how it’s reached in new ways to sports fans members.

Arian Foster tweeted out a picture of his MRI. No longer did that information have to be understood by the Texans. The Texans didn’t have to give it to ESPN. And no longer was it up to ESPN in terms of how they would report this message.

ESPN, in the past, could have had the option to report on Arian Foster from week to week. Or, perhaps, to say whether he’s going to miss several weeks. It was up to the fans to understand the information from ESPN. Now, with this new tweet, Arian Foster gives his MRI directly to the fans.

Of course there are doctors on Twitter. So, they can completely understand for themselves what is going on with Arian Foster. They can actually diagnose how long he would be out, if at all. So, it was a really interesting example in sports management of how these two graphs represent a shift: not only in terms of sports information that certain teams get and certain organizations receive but also in terms of how sports teams and athletes themselves can have a better way of communicating with their fans and their audience members.

The emergence of athlete-driven media is an important part of sports management education courses.

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.

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?