Online Sports Management Education: Modern League Monopolies

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?

Online Sports Management Education: Multi-Purpose Venues

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.

Online Sports Management Education: National Identity

This idea of my identity, this idea that I get to walk around with pride, is about all the different ways we get to plug into sports. It’s what Jesse Owens did to Hitler in the Olympics. Here’s a guy saying, “I’m going to take over the world, and my pure race is better than all of the other races.” That included black people, and that included Jesse Owens. In front of the whole world, in Berlin, Jesse Owens dramatically disproved that theory in human, real, on the ground — literally on the ground — terms.

Two Jewish sprinters weren’t allowed to run, so that footnote should be made. But this is the way sports can amplify, magnify, and otherwise powerfully communicate social conditions in a way that very few other things can, differently than movies or books or plays, which are enormously powerful cultural vehicles. But they’re scripted. The author is intentional. The author is in control.

In global sports and sports management, we don’t know what will happen. And that’s the excitement. That is the humanity of it. We don’t know what will happen until it happens.

Sports management education courses tackle the theme of sports and national identity.

Online Sports Management Education: Social Media’s Impact

With the advent of social media in global sports, we can see there are now a number of new things coming into consideration within the sports media landscape. Obviously, we still have those same members in sports management. We have the content providers, which are still the sports organizations, the athletes, and the events. And we still do have the mass media, which is television, radio, newspaper, and magazine.

But now, it’s not just one mass audience. In particular, it’s different niche audiences. So, it’s no longer just the entire United States or the entire world. The media could not only be talking to New York segments, but they could also be speaking to Boston segments or California segments.

We could, in fact, be speaking to California residents, and within California, we could be speaking to any number of different team fan bases and fan groups from any given team. What we’re seeing with social media is that those individual fans now have their own platform for themselves. And, in fact, all of the teams allow for platforms. Certain fan groups have certain platforms. So, content providers are giving their information to the mass media.

The mass media has an option to give it to any given fan group or any given niche audience. Where this is also going to differ is that we’ll see that content providers don’t have to go through mass media channels. They can, in fact, with social media, directly communicate with any given fan group [and] with any given niche audience. So content providers, such as the Dallas Cowboys or the New York Rangers or the San Francisco Giants, can now directly communicate not only with certain fan groups but in some cases with individuals who are fans.

They have a sense of direct communication. And what you’re going to see on the bottom is not only direct communication going from the content providers to the niche audiences, but the niche audiences, very importantly here, can have a direct communication line with the content providers themselves. This goes back to great relationships that we can have with having the audience members and the sports teams organizations.

What we’ll see is that the niche audience will not only have the ability to relate directly with content providers, but they’ll still get information from these mass media sources. So, they can get information directly from the sports organizations or the athletes. They can also still get their information from ESPN.

In this case, they have a number of different options [on where] to get their information. They can watch it on television, as would be the traditional manner. But they can also hear [it] from ESPN on any social media medium. So ESPN, Fox Sports, CBS, NBC — they not only have a television channel now, they have the ability to directly reach individual fans through social media. And just like the niche audience has had the ability to give feedback to the sports organizations, you’ll see there’s a small feedback loop where the niche audiences are able to give feedback back to these mass media entities through social media.

Online Sports Management Education and the Evolution of CRM

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.

Online Sports Management Education: Sports Analytics Careers

“With data analytics, there are a number of different opportunities not only on the field, but off the field,” says Dr. Brandon Brown. “You can be a data analytics tracker in terms of understanding which metrics are going to influence game outcome.”

“One key career that I see moving forward in the sport industry,” adds Dr. Andrea N. Geurin, “especially related to marketing and sports management, is going to be in the marketing analytics space. This is where people have the ability to take a lot of data and look at it and make decisions and understand how that data impacts the organization. Everything that is done in marketing — it does have a very creative twist to it now — is very much tied to data. And data is driving the decisions that we make.”

So in marketing analytics, business analytics is a really important role that organizations need and will be hiring for. I think in terms of marketing and global sports, it’s also a space where people working in sports marketing need to have the ability to use digital media. They need to be able to do video editing. They need to be able to put little promotions together.

They need to have really strong writing skills because when you put something out on social media, again, it needs to have a specific voice, a tone. It needs to just kind of match the brand. So, having the ability to write well and write in different voices is an important skill. Digital media managers and social media managers will be hugely important for sport organizations as we move forward.

Sales is a hugely important piece to every organization. A lot of people, when they start their career in sports, will look to starting in sales. One of the reasons that’s so important is because if you work in sales — and you can show that you have added this much value to the organization this year — that’s a really great personal marketing piece to be able to move up through the organization and to continue a career in that organization or in that field.

Sales gives you some really hard numbers that you can point to in terms of saying, “I created this many new clients this year, or I generated this much in sales this year.” It’s a really important career that sometimes gets overlooked, but it can definitely lead to moving through an organization very quickly.

In the past, I’ve taught sport sales courses. My students have always done hands-on projects where we’ve worked with an organization. The students actually have to get on the phone, cold call people who might want to buy tickets. They have to learn to sell, but they get a lot of guidance from the organization.

It’s been absolutely wonderful for those students because some of them were able to get internships or jobs with the organization that we partnered with in the sports management education course. It introduced them to the idea that, “I could go into sales. This is a really valuable skill.”

I’ve seen so many of my former students who have taken positions in sales. Their careers have skyrocketed within a few years because they did really well at that role, and they were able to move up quickly in organizations and also to get new opportunities with other exciting organizations.

Online Sports Management Education and the Sports Ecosystem

There are so many parts of the sports ecosystem. We tend to think that it starts out with teams or players and fans. But it’s so much more. Sports touches so many different parts of our world. It touches business. It touches government. It touches the nonprofit sector.

Almost everywhere that you turn, there’s probably something that, in some way or another, is connected to sports and sports management. Maybe the drink that you have by your side right now is a company that sponsors something in sports, or sports sponsors something that the company is doing. Or, maybe it’s both.

This really speaks to where global sports is at today in our world. Sports is a reflection of society, and society is a reflection of sports. It’s really something that, in today’s world, in today’s day and age, the relationships of companies, of organizations, and institutions, really connect around sports. Sports, increasingly, is a way to develop all of those.

This is information provided in the sports management education course.

Online Sports Management Education: What Makes a Sport?

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.

Online Sports Management Education for the Barclays Center

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.

Origins of Sports Management in Media History

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.