How Athletes and Venues Earn Revenue

When talking about both national and global sports, the players make money first by playing their sport. Whether it’s a team sport or an individual sport, the better the performance, usually, the more money they earn. But on top of playing their game, there’s also money to be made in terms of endorsements, and products, and services, and programs that they represent and that they sell to consumers.

One of the all-time great endorsement deals is for Michael Jordan, “the air man”. He and Nike came out with Air Jordans at a time when the NBA had restricted what colors players could wear on their shoes. But Jordan’s statement with those first Air Jordans was so powerful that it led the NBA to change its policy. And now, of course, we’ve got all sorts of shoe deals with players.

Stadiums, arenas, and any sports venues earn money certainly by people coming through its gates, and the money they spend once they’re inside, but owners also earn money and generate revenue in all sorts of different ways. It used to be mostly from tickets, gate receipts, and concessions that fans had purchased once they were in the stadium, the merchandise they purchased in the stadium or merchandise that they’d purchased in a local store.

However, over time, that certainly grew in a number of different ways. Revenue for owners comes in the form of television deals. It comes in the form of basically any kind of business that the club or the franchise conducts anywhere in the ecosystem. So, we also see owners investing in areas that are sometimes indirectly related to sports, or in other areas in and around the venue.

Local real estate has certainly been one of the new things, over time, that owners have gotten involved in. And really, when you think about and look at it, what are sports venues really but nice-sized real estate deals?

With an online sports management education, you can learn about all of the important concepts involving sports management strategies and trends, and you can do it with nothing more than an internet connection and the time and desire to learn. If you’re looking for an affordable and accessible way to explore sports management education, looking at the online route is a great way to start.

How Social Media Has Changed How Athletes Interact With Fans

In the past, to try to understand what certain athletes were trying to say, individuals had to rely on mass media outlets. One example of this was a tweet that came out, which had to do with a story about LeBron James apparently wanting his teammate Kyrie Irving to be traded away. If this had happened when traditional media was still prominent, consumers would have been relying on the mass media and would have assumed that LeBron really did want Kyrie out of there.

However, in this case, LeBron actually re-tweeted the story and disputed the facts of it. It was fortunate that social media allowed LeBron to have a direct voice with consumers so that he could communicate what the truth of the situation was. This is a great example of how social media’s advent has allowed athletes to communicate directly with certain consumers.

You no longer need a specific medium to get in touch with your audience members when it comes to consumers. But it also works to create this back and forth with professional athletes, as a lot of athletes are very interactive on Twitter and other social media.

Another interesting story occurred involving LeBron James. In this case, going back to the first time that LeBron, as a member of the Miami Heat, came back to visit the Cleveland Cavaliers, there was a fan that went out on the court and completely disrupted the game. The fan was ejected immediately, but from the video of the incident, you could see that he had said something to LeBron, and a lot of people were wondering what had been said.

Afterward, though, the fan actually went online and tweeted at LeBron James, thanking him for showing him some love on the court. And LeBron was actually able to tweet back at him and give him props. So, it’s not only that consumers can now get information unfiltered, but it’s also an interesting way that athletes can now interact directly with fans and consumers, in a way that they had never been able to before. This is a pretty cool thing because it’s an easy way for fans to get in touch with their favorite sports stars, which can really mean a lot to both parties.

Sports management education can help you learn more about how athletes build their brands and interact with consumers, as well as many other interesting concepts and topics relating to global sports and sports management. If you don’t necessarily have the time and/or resources for an in-person education, online sports management education may just be perfect for you.

How Athletes Take Risks to Impact Social Change

One topic within sports management education is how sports affect social change. You’ll see sports used oftentimes in political agendas, and where this is most visible is with the Olympics. Now, the Olympics movement will say that it’s not about politics and that it’s about bringing people together to compete at the highest level and support one another in that endeavor.

However, we have seen that this isn’t the case. We’ve seen political posturing, if you will, throughout the Olympic games in many different ways. For example, in the 1960s, our country was going through quite a change socially, and we had a lot of racial injustice happening. It was much like what’s happening today, but in a different way. And the U.S. team had a lot of African American athletes who were treated poorly at home. But on the stage, they’re treated very differently, and so we had two amazing sprinters stand up against that social injustice.

Tommie Smith and John Carlos took the gold and the bronze, and when the American national anthem was played, they raised their fists in the black power salute, and it was extremely powerful at that moment. So, when we talk about sport and the challenges of social change, these two athletes quietly protested on a very big stage to demonstrate what was actually going on at home and the hypocrisy that was happening at that time.

What they did get was a lot of backlash. They were vilified for what they did, and it was seen as a political stunt. The IOC basically shamed them for what they did, and they were even stripped of their medals. This was a very unfortunate outcome for something that was really important to say quietly. Obviously, they hadn’t said anything, but what they did spoke volumes. So, when we talk about social change and how sports can play a role, we see a lot of backlash when athletes quietly do that.

We’re even seeing it right now with athletes who are becoming activists and standing up for what’s happening and what’s going wrong. They’re using their celebrity to have a stronger voice, and there’s a lot of backlash that comes along with that.

That’s where the challenge lies. We’re pushing the borders of what’s uncomfortable, and it’s very difficult to talk about these things. However, we have these athletes who are in the spotlight and who can stand up and say “you know what? Something’s going wrong here, and we need to have a conversation about it.”

But unfortunately, doing so causes backlash, and that’s where the challenge is. Yes, sports can be used as a vehicle for social change, and it can be incredibly powerful, but it can also hit a lot of barriers along the way because people tend to not agree on everything. Because global sports and the sporting world have such extraordinary platforms to communicate messages to the biggest audiences in the world, it becomes an opportunity to get a really important conversation started.

When Colin Kaepernick decided to take a knee during the national anthem in protest of police brutality, he started something that we are still seeing the effects of today—not just for him as a player but also for how our country views and understands things like patriotism.

Questions of things like how our police force should be conducting itself and how people of color are treated by the majority are now being asked. And they’re being asked because this one individual, who had a fair bit of power and popularity, was willing to do something controversial, and I would argue, pretty brave as well.

You might think that the forum he chose wasn’t appropriate or that the way he chose to express himself wasn’t the best way to do it. However, whether you think these things or not, he got the conversation started, and that’s a pretty powerful and important thing.

In addition to learning more about how sports and social change go hand in hand, with online sports management education you can gain a wealth of knowledge about many other concepts and topics related to sports management, and you can do it without leaving the house.

How Social Media Has Changed the Media Landscape

When talking about social media, it’s really important to talk about the things that were going on before its advent. Social media, when it came along, allowed us to do several things. Prior to this, there were many more cases of an athlete or athletic organization or any given event going directly to a media entity, who would then deliver it directly to the consumers.

Before the advent of social media, there wasn’t much direct communication to the consumer from the organization, the athlete or the event. There was always an entity in the middle. This caused a number of different issues. Consumers did not understand what was actually going on from the point of view of the athlete or the sports organization. It also created inauthentic news stories, especially involving athletic teams.

Often, consumers were left wondering what was really going on. Additionally, the content providers were receiving publicity from the mass media entities. So it’s interesting to note that before the advent of social media, the audience members themselves weren’t the ones giving publicity to organizations, or athletes, or events. The publicity was actually coming from places like ESPN, Fox or a newspaper or radio station.

Prior to social media, there were three main entities involved in sports publicity. This includes the content providers, the mass media organizations and a mass audience. The content providers were either the sports organizations, the athletes, or the events. It could be the Dallas Cowboys. It could be Michael Jordan. Or it could be the New York City Marathon.

At the time, content providers couldn’t reach out to the audience directly. Instead, they had to go through some type of mass media entity. Any given sports entity, whether it be Michael Jordan or the Cowboys or the NYC Marathon, had to distribute their message. To do so, they would first go to a television station like a Fox Sports, an ESPN, an NBC or a CBS. They would repeat this message in additional media, including local radio entities, newspapers or magazines. It was then up to that newspaper or magazine or TV channel to pass that information on to the mass audience.

Unfortunately, this created a thirdhand message. The issue was that these athletes and organizations and events weren’t actually giving their information directly to the consumers. Instead, they were getting it to them through a medium. So once social media started to be implemented, there was this whole new understanding and wealth of information that came from direct-to-consumer communication. There was no longer any sort of middleman that the consumers had to rely on and trust to know what they wanted to know.

You can find out more about how the media landscape is changing and evolving, and also concepts concerning sports management, global sports marketing, and many other topics. One way to do this is with online sports management education. You won’t find any more convenient way to receive the sports management education that you’re looking for.

Diversity and Inclusion is Needed Everywhere, Even in Sports

The incredible visibility of global sports creates an unprecedented platform to start really important conversations about things like racism and homophobia. To win gold medals for one’s country and still feel like a second-class citizen is the bitter paradox facing many colored Americans. “Because we were black athletes, what we were supposed to do is run real fast and go home, smile, get pats on the back, and still be relegated to second-class living,” says Tommie Smith.

Tommie Smith sets a new world record in the 200 meters with John Carlos taking the bronze. “And I’m supposed to stand up there and look at the flag,” Smith continues, “put my hand over my heart, saying how proud I am because the flags are representing me. I don’t think so, because it did not. So when the national anthem started playing, I was not looking at the ground. I was saying the Lord’s prayer, my head bowed, and my fist went up in the air.” He went on to say, “I wore black gloves to represent social power or black power. I wore socks. No shoes represented poverty. I wore a black scarf around my neck to symbolize the lynching, the hangings that black folks went through while building this country.”

In 1968, when John Carlos and Tommie Smith took the platform at the Olympic games and chose to raise a gloved fist in protest, they were taking a chance that they might never be able to compete at the highest level again. That sacrifice made a conversation happen across the world, which still echoes today. When Colin Kaepernick took a knee during the star-spangled banner, he was putting his career on the line to get a conversation started about police brutality.

Kaepernick says, “A lot of things that are unjust, people aren’t being held accountable for. And that’s something that needs to change. One specifically is police brutality. There are people being murdered unjustly and not being held accountable. Cops are getting paid leave for killing people. That’s not right.”

People are questioning whether this was the right venue for it, whether it’s possible to still appreciate America and be a patriot, and kneel for the national anthem. I don’t think Colin has anything against America, per se. He has an issue with what’s happening in America. This is the kind of conversation that’s getting started, and sports are an extraordinary venue to make this happen.

In the Sochi winter games, there was this question that a lot of athletes had to ask themselves; whether they would go to compete in a country that has laws that are explicitly homophobic and discriminatory against people who identify as gay. There were some athletes who chose not to participate, which is one form of protest. There were some who chose to go but chose to be very openly supportive, either as allies or as people who were gay themselves, in a forum that would be hostile to them – which is another way to take a stand.

There’s no better location to get these conversations started because so many people are watching. Many middle schoolers in the US, Tanzania, or India, who had no idea about the kinds of policies that exist in Russia, were then exposed to it and having conversations about their own policies at home that may or may not be explicitly discriminatory. Sports management education, as well as online sports management education, have the task of including these difficult and controversial conversations to push sports management and sports (as a whole) in the right direction.

Effective Marketing To Target and Keep Sports Fans

The sports ecosystem is not at all what it used to be. It’s not just about owners, players, teams, clubs, and franchises and how they fit into a community. It’s much more about how the community and everything that it’s involved in fits with the sports franchise and its players and owners.

We live in a time where the power of global sports makes them matter so much to people that companies, organizations, and institutions — entities that we would never have considered connected in the past — are now connected. All of a sudden, architectural firms are being called on to build new and different stadiums. Engineering firms certainly have their hands in sports management. They’re partnering with ownerships, and the teams add player representation, along with convention and visitors’ bureaus, mayors’ offices, the municipalities, and local nonprofit organizations that serve the community to change people’s lives in different ways. The power of sports and sports-led development create this ecosystem that is really about what we all know and are all searching for: community.

We just talked about the ecosystem in sports. It’s complex. There’s no doubt about that. It’s a fun business to be in, but it’s an expensive business to be in. Many professionals are associated with it, and the ownership of sports franchises, the leagues, and the people that serve within sports management are changing all the time. What I have seen over my career — and something you need to keep in mind in your sports management education — is that evolution in sports is something that we can expect. You can’t always expect to make a profit. You can’t always expect to win. But you can expect that sports is going to evolve, and it’ll evolve quickly.

Fans are obviously hugely important to a sport organization, and it is so much easier to keep a current fan than it is to develop a new one. So, organizations need to be able to use the data they have about their current customers, not only to keep them but also to move them up the ladder so that they go from being what we would call a light user to a medium user to a heavy user. The goal is always to get that fan more engaged with the team. That’s going to help the team in the long run.

The fact that the teams have so much data that they can use to specifically target fans for specific tickets or packages means that the fans are going to get more out of this experience as well, because they’re not just the targets of mass marketing. It helps them to feel a deeper connection to the organization when there is that level of personalization. As online sports management education emphasizes, it’s really important for teams to be able to segment their consumers. In doing so, they can take this segment and market specific products or packages to people who fall into this category, versus something different for this other group of fans.

All the data that organizations now have about their fans is great for being able to develop those segments and also understanding that sometimes a consumer might not stay in the same segment. If we have them here, but we’re moving them up the ladder of going from a light user to a medium user to a heavy user, then they’re going to also maybe fall into a different category or a different segment as their consumption patterns change.

Ethical Challenges in Sports Management

How do we decide what’s doping and what’s not? What constitutes a fair preparation or a fair piece of new technology versus something that is unfair or is considered cheating? There are a number of people who are naturally more talented at sport.

Why should it be any more fair or reasonable for me to play in the same league as someone like LeBron James when his natural talent is so much greater than for me to decide to take some substance that might improve my performance? Why is that any less fair or more of a form of cheating?

Ethics in Global Sports

All sports have to make decisions about the kinds of technology and the kinds of preparation that align with the essence of that sport. They consider what preserves and promotes the kind of displays and exhibitions of talent and skills that are essential to that sport itself. So beyond biology, we have these questions about what constitutes fairness or the kinds of technology that can be used in sports?

Online sports management education programs examine these vital questions in an ever-evolving global sports platform. Sports management education analyzes these ethics questions and works to level the playing field for athletes to train with acceptable enhancement and technology at all stages.

Assistive Technology

For example, when someone is going to run a race, should they be able to compete against somebody who doesn’t have complete legs and is using carbon fiber blades to actually run? This is a question that came up as a result of Oscar Pistorius, who was a dominant champion in the Paralympics.

He didn’t win all the time, but he won enough to make him question whether he should be able to compete against typical able-bodied people. This sparked debate among sports fans in deciding whether this would be a valid form of preparation, a valid kind of technology to use-in lieu of shoes. Questions came down to things like how quickly could he turn his legs over as opposed to a regular runner, and is this fair or unfair in terms of the advantage he would get?

What about the kinds of cramps that other runners have to suffer in their lower legs, which he wouldn’t get? Does he generate more power with each placement of his blades than a person in regular shoes? It’s not an easy question to answer, but it comes down to the qualities of the sport that we’re trying to protect or preserve. Does this technology support those qualities?

Specialized Sporting Equipment

People thought that it would be impossible to break the two-hour marathon for years and years. Nike took this as a challenge and designed the Vaporfly Elite shoe. They believed that if these shoes were worn by one of their elite runners they would enable them to break the two-hour mark.

The specialized shoes generated tons of media attention and interest. Some of the greatest runners of all time, including Kipchoge, put on the shoes and set out to break the record. Using this technology, with specifically placed bubbles, extra spring, and even a carbon fiber spoon in the bottom of those shoes to create more energy, they achieved greater results than previously possible.

The whole Breaking2 campaign was pretty awesome. But was that the marathon in a traditional sense? When we think about it, Kipchoge was running a completely flat course during that trial. He was wearing these hyperspecialized shoes, and the conditions–the location and weather–were perfect for breathing, and he ran 25 seconds over two hours. Even with specialized equipment, he still didn’t even achieve the goal.

This failure doesn’t mean it’s not possible, but it means that in even these optimal conditions it’s still pretty hard. We have to question, do those conditions align with the spirit of a marathon? No way. If he had run that, there would have been controversy if he had run the marathon in under two hours. Many would have said he ran a hyperspecialized fantasy version of the marathon. Many would have argued that it was more of an exhibition than a sport.

Consider athletes who are training to qualify for Boston: If they are running a race that has too much net downhill, they’re not going to be able to qualify because that’s not a certified course for Boston. Meanwhile, other courses must have a certain amount of hills because that’s a requirement of courses designed to meet the standards of a marathon. Thus, while breaking two hours using the Vaporfly Elite is pretty cool, it’s an exhibition. It’s not a true marathon.

Evolution of Athletics From Fun to Business

In the late 1800s, around the beginning of organized sports management, but before it became a business, it didn’t matter if you won or lost, it was all about how you played the game. When someone said, you were a good sport, they were talking more about your sportsmanship than abilities. This spoke to the way you conducted yourself as a gentleman or lady, to your ability to be a good citizen rather than a good third baseman. Then, athletics was associated with class and behavior. Not with winning or losing or athletic excellence but how you understood and demonstrated fairness and decorum.

In the mid-1800s, the idea of Manifest Destiny became wildly popular. This phrase was a philosophical belief that the United States should continue to move westward and establish and conquer over all the land and all the indigenous peoples of those lands. And because of those actions, there were wars, civil wars, wars with other countries: Mexico, Spain, even the Native Americans. The West was proclaimed “won,” and then there was nothing left to take, no more wars to wage, nothing more to conquer.

The 1890s were known as the Gay Nineties. Not gay as in sexual orientation, but gay meaning grand, jolly, and wonderful. The economy was good, there was gold and cattle, and everyone had lots of money, and there was plenty of land for all the colonizers. And during this time, the president of the United States, Teddy Roosevelt felt like the nation had gone soft. He believed the United States had forgotten what it meant to be a leading nation. He decided then that athleticism would be viewed as preparation for war.

This is when athletics started to become serious. And the military academies and best colleges in the US wanted to produce the best athletes. So academies like West Point began to focus on creating better athletes to prove they have the best teams because winning became everything. Because if you won, you proved you were prepared for war. But with the focus being on winning at all costs, it wasn’t too long until cheating started to pervade organized collegiate athletics.

As teams became desperate to win, cheating and fixing games became more commonplace. The more gambling and game-fixing that happened the more people realized they could monetize and turn leagues and sports management education into a professional enterprise.

In an effort to police the monetization of the up-and-coming enterprises of professional teams Teddy Roosevelt created the National Collegiate Athletic Association. Although this ended up being just a body with very little ability to enforce anything. As things started to professionalize the public became enthralled with organized sports that the corruption was abundant. The commercial zeitgeist was portraying an overlord economically, monopolies and great wealth ran everything. There was no income tax and no reward for those who were actually doing all the work, the athletes. So they brought a case all the way to the US Supreme Court.

This case regarding the earliest of leagues, Major League Baseball, faced overwhelming societal pressure to stop the illegal monopolies. The Sherman Antitrust Act was the prevailing law and ruled that baseball was indeed a monopoly but not the kind that the Sherman Antitrust Act was meant to protect against. Although the monopoly was interstate in nature for obvious reasons being teams had formed in nearly every city and every state, the language used stated the monopoly was local in nature and exempt from antitrust laws.

This ruling gave birth to the mindset in America that sports somehow differ, that they were sacrosanct and are able to abide by different rules based solely on their cultural significance. Global sports management clung to romantic notions of sportsmanship while exploiting the commercial realities of that romantic notion. And this conflict still continues today, all four major professional leagues enjoy antitrust protections, whether completely, in the case of baseball, Supreme Court-sanctioned or statutory and in part for the other leagues.

Brendan Parent reinforces the power sports have in the industry with his statement that, “It has become one of the most dominant industry forces in the world because of its universal appeal. It is woven into the fabric of every community across the globe.” Making it a driving force for economies everywhere, he goes on to explain, “…When a sports organization pops up in a particular region, it draws attention from people who live in that region, and the government from other industries to create partnerships, collaborations.”

So the teams bring an influx of attention and interest to a certain area and then are expected to give back to these new partners in meaningful ways. This reinforces the power these organizations hold. The universal appeal draws companies in with opportunities for sponsorships and affiliations to draw more interest in the product they’re trying to sell. Using a town’s favorite players or teams and being able to capitalize on viewership and Global Sports fandom equals profit for these companies and local economies. There’s also the ability to profit from televising and hosting sporting events that adds fuel to the universal sports power draw.

All of this leads back to the universal appreciation for what athletics are. There are examples of organized games being played all the way back in Aztec and Mayan communities; organized gaming has always been a way to perhaps escape from the trials and tribulations of life, enhance community, and build teamwork. There is not a single corner of this globe that hasn’t been touched by it in some way. And that fact is what makes it so marketable, but only recently has professional athleticism become a mega multibillion-dollar global industry.

From online sports management education to million-dollar franchise deals, competing athletically has evolved over the years from a simple pastime every human can enjoy to a multimillion dollar global mega industry, held sacred by the masses.

Exploring Analytics in Online Sports Management Education

One of the important areas of sports and sports management analytics for off the field that’s really interesting is this whole area of return on investment for a sponsorship or partnership with a consumer product brand. Teams now are being pressed pretty hard in leagues to justify why they want x-million dollars or x-hundred-thousand dollars in sponsorship fees for a consumer brand to be affiliated with them. Oftentimes they’re giving them signage at the arena live or stadium. They’re giving them broadcast advertising in their telecast of their games. They’re perhaps including them on their website for the team or the league. You’re constantly hearing these brands asking, “Why am I paying $700,000? Why am I paying $4.5 million?” It’s really incumbent upon global sports organizations to use this data that’s at their disposal. They have access to such data as demographic data and behavioral data, including the frequency of returning to a website or how long you are staying on each page of the website.

In sports management education we talked about eye tracking. There’s also eye tracking for stadium signage and all sorts of data capture devices that are monitoring the interaction or the behavior of the fan with the sponsor’s brand. One of the things that sports organizations are doing, particularly with new sponsors that they’re acquiring, is they’re trying to measure, pre and post, the affinity toward the brand by their fans. To put it in perspective, let’s say a certain football team wants to bring in a sponsor. They might do a survey and ask their fan base all across the market how they feel about the sponsor’s brand. Are they buyers of that sponsor’s brand, users of it, et cetera? Then, when they bring the sponsor in one year later, they can do the same survey again and hopefully show them that the purchase intent of the consumer, the fan, has gone up because of their affiliation with the sports team.

Finding Sports Management Jobs That Can Shape Social Change

There are a lot of entities out there that offer programs and jobs that shape social change. One program is street soccer. There is an organization in Europe that is called the Power of Play. It was a joint program at one time run through the UN.

Online Sports Management Education Opportunities

There are a lot of opportunities worldwide where people are going into Africa, South America, Central America, and Europe, where we see a lot of the refugee movements happening. There are a lot of non-profit organizations specifically focusing on helping others through the vehicle of sport.

It’s just a matter of finding those entities and non-profits that are out there. Many of them are operating in New York. You can also get into the industry across the world, depending on your interest and the sport you’re interested in.

Soccer’s Importance to Global Sports

Soccer’s often the main sport because the world plays soccer. But there are opportunities in an array and a range of sports where people are trying to change.

Sports Management Education Provides Value in Social Change

There is value in sports and the potential challenges that come with developing strong athletes. Sports can impact youth and influence them in the future and future participation.

Sports is important in the lives of adults and can influence their health, well-being, and emotional state. When talking about social injustice, sports can be used as a vehicle for change.