NEW YORK UNIVERSITY 2016

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1 NEW YORK UNIVERSITY 2016 NEW YORK UNIVERSITY Stern School of Business Marketing Department DRAFT VERSION 1 Spring B The Business of Sports Marketing Wed 6:00 9:00 pm Six Weeks 44 West 4 th KMEC TBD Credits: 1.5 points Al Lieberman Executive Director Entertainment, Media & Entertainment program alieberm@stern.nyu.edu Telephone: Office: Tisch Bldg Rm 903 Office Hours: Wednesday 3-4 pm Peter Land Partner, Finsbury landpetera@hotmail.com Telephone: Office Hours: By appt. COURSE BACKGROUND This is a specialized course for the MBA student interested in expanding his or her knowledge of the sports industry as a business and as an economic force. It will provide students with a framework for understanding the scope of the sports business across the various leagues, the venues, the sponsors, the media companies, the agencies, the athletes and their relationships to internal and external factors, and the marketing applications that drive this complex and growing multi-billion dollar industry. The business of sports has become a persistent and integral part of our economy, specifically in the multi-media and entertainment arenas. The activities, deals, and general business practices are front-page news stories, as conglomerates like Disney, Comcast, CBS, NewsCorp, Yahoo, YouTube, Twitter, Facebook, and TimeWarner have become heavily invested in the business of sports as team owners and/or media conduits of programming. The business of sports has grown significantly with more professional and collegiate teams and amateur events competing for fans, airtime, media coverage and revenues, licensing revenue and sponsorship dollars. This has made the management of events, venues and athletes, as well as the accountability of sponsorship and celebrity endorsement high priority with bottom line relevance. This course is an elective for the student interested in adding to their understanding of the Entertainment, Media & Technology (EMT) program sectors. Through lectures by leading

2 executives within the sports industry and professionals who provide the support system, along with selected readings, videos and case histories the student will understand how the various parts of this complex process interface and interact. The course covers some of the most significant and critical social, ethical and humanistic issues facing the sports industry. In class lectures and through several cases we will analyze the impact of diversity, gender, contract negotiation, and issues surrounding athletes behavior. We will cover labor issues and the impact of collective bargaining, and the protection of players rights. Our guests and readings from several texts deal with costs of venue ticketing, income from media rights, sponsorship and niche advertising targeting specific groups. We analyze compensation of players, teams, leagues and owners in terms of distribution of income. We also examine the impact of digital rights management by major sports entities. We study the importance of the World Series, Super Bowl, World Cup, and the Olympic Games in explaining public/private partnerships, corporate citizenry, political issue, and the financial impact of these events. We also discuss the importance of multicultural marketing as major U.S. leagues look to expand their businesses outside the U.S. COURSE OBJECTIVES To provide students with an overview of the sports marketplace as a business -- which generates enormous revenues and a growing export income -- through lectures, readings, case studies and videos. To examine the various elements, factors, regulations, parameters, and characteristics that make up the totality of the sports industry and their relationship to the overall marketing and promotion mix. To learn the basic concepts, terms and principles, and vocabulary that are key to understanding the sports business, even for non sports fans. To study the activities of the key components (leagues, teams, athletes) within the sports industry and the sponsoring companies (brands) and media companies working with them. To analyze and learn how to evaluate decisions made by senior league officials, owners, marketing and media executives regarding problems and opportunities as they arise, and how they constitute working agreements, and flexible non-formulas, and their long-term implications. DRAFT VERSION 1 2

3 COURSE REQUIREMENTS Class participation will be extremely important, since much of the study of the sports industry is obtained from articles, on the job observation, guest speakers, and some selected texts. In addition there will be case studies with written reports. The class will be graded on the following basis: Grading Class participation 10% Cases 25/25 % Presentation/Final paper 20/20% INSTRUCTOR POLICIES Attendance/Lateness: Absences/Tardiness will lower your class participation grade significantly. Late assignments are not accepted. If you miss any assignment deadlines, i.e. at the start of a class period on the due date, you forfeit a grade on that assignment. HBS CASES available at the Professional Bookstore, REAL Madrid, Maria Sharapova: A Champion, NFL E- Strategy, LeBron James Required Reading: Sports Business Daily and Sports Business Journal (details to come re online access) Recommended Reading: Business of SPORTS by Foster, Greyser, Walsh, Thomson/Southwestern Publishing Should be available soon at the NYU, Graduate, Professional Bookstore 3

4 SIX WEEKS EVERY WEDNESDAY FOR THREE HOURS Wednesday Wednesday Wednesday February 10 February 17 February 24 Class 1: 6-7:30pm Introduction, syllabus Assignments/overview Lieberman/Land Class 3: 6-7:30 pm The impact of Fantasy Sports Sabrina Macias, DraftKings Class 5: 6-7:30 pm The Sports Agent and Agency Business Jeff Filiberto, CAA Break 7:30 7:45 Break 7:30 7:45 Break 7:30 7:45 Class 2: 7:45 8:55pm The Power of Broadcast/Video/Digital Len DeLuca, SVP, WME/IMG Class 4: 7:45 8:55 pm HBS Case: Sharapova Sponsorship 101 Land Class 6: 7:45 8:55 pm Case: Real Madrid Licensing 101 Land March 02 March 09 March 23 Class 7: 6-7:30 pm Case: NFL E-Strategy Global Events/Women s Sports Land Class 9: 6-7:30pm Labor issue and Collective Bargaining Jordan Schlachter, NBPA Class 11: 6-7:30pm Presentations Power Point Term Paper Due Break 7:30 7:45 Break 7:30 7:45 Break 7:30 7:45 Class 8: 7:45-8:55pm Term Paper Outlines Due League and Team Structures Nan Moses, MLS Class 10: 7:45 8:55pm Overall class recap Land Class 12: 7:45 8:55pm Presentations Power Point DRAFT VERSION 1 4

5 Spring Break March 16, 2016 NO CLASS Class 1, February 10 Lieberman/Land: Introduction Class 2, February 10 Len DeLuca, SVP, WME/IMG: The Power of Broadcast/Video/DigitalClass 3, February 17 Sabrina Macias, VP, DraftKings: The impact of Fantasy Sports Class 4, February 17 Land: recap and Sponsorship 101 Class 5, February 24 Jeff Filiberto, CAA: The Agent/Agency Business Real Madrid Case: Lieberman Class 6, February 24 Land: Licensing 101 Class 7, March 02 Land: Global events/women s sports Class 8, March 02 Nan Moses, MLS: How leagues and teams are structured Term Paper Outlines Due Class 9, March 9 Jordan Schlachter, CMO, NBPA: Collective Bargaining Class 10, March 9 Land class recap; Lieberman, Sharapova case due SPRING BREAK NO CLASS Class 11, March 23, Team Presentations, Term paper due Class 12, March 23, Team Presentations 5

6 SESSION DATE SUBJECT 1-2) February 10 Topic: Course Introduction: Professors Lieberman/Land What is Sports Marketing: Definitions, industries involved, historical perspective, and growth in recent years of major sectors. Teams assembled, topics selected, syllabus & assignment review. 1-2) February 10 Len DeLuca, SVP, WME/IMG Topic: Media Right Fees/Negotiations and the critical role television and digital plays in the sports marketplace. Questions to be answered Have negotiations become more difficult? Why? How will the cable/network mix shaking out in the next decade? What role with satellite/demand/web/tv/other technologies play in the future? Are rights fees for the major events/properties going to keep rising and if so, what does that mean for the smaller sports? What is ESPN s role is in terms of presenting positive sports messages to young viewers? What s the future for women s sports on ESPN? Extreme sports? 3-4) February 17 Sabrina Macias, VP, DraftKings 3-4) February 17 Land Topic: The Impact of Fantasy Sports Questions to be answered How did fantasy sports evolve? What s the difference between DFS and season-long fantasy? How does DraftKings work with league and network partners? What s the future globally? Topic: Sponsorship 101 Questions to be Answered How are deals constructed? Where are the key issues? What is an activation strategy? How is sponsorship measured? What are the differences between team and league sponsorships vs. those of individual athletes? CASE DUE : Maria Sharapova, HBS Case 5-6) February 24 Jeff Filiberto, CAA 6

7 5-6) February 24 Land Topic: The business of sports agents and agencies Questions to be answered: How do agents earn income? What do they see as their primary role? How has the role of the agent evolved over the years? How are contracts negotiated? Beyond athlete representation, what other services do agencies provide? Topic: Licensing 101 Questions to be answered How does sports licensing work? How is revenue divided? What are the legal implications. How big is the overall business. What are the global implications? 7-8) March 02 Nan Moses, MLS 7-8) March 02 Land Topic: The Business Relationship between Leagues, Teams and Athletes Questions to be answered What is the business relationship between leagues, teams and athletes? How do they share revenue? What are the rights that leagues have vs teams and athletes? What are the media obligations? How do sponsors and networks work with each entity? NFL- E Strategy Case Due Topic: Globalization of Sports Business; women s sports Questions to be answered How has the sports business become more global? What does that mean for the U.S. sports business? Has it been dilutive in any way? Where is it headed? What are leagues and athletes doing about it? How do sponsors and networks view globalization? How has women s sports evolved in the marketplace and what does the future look like? REAL MADRID Case due TERM PAPER OUTLINE DUE table of contents, team topic, team focus, confirm team members 7

8 9-10) March 09 Jordan Schlachter, CMO, NBA Players Association Topic: Collective Bargaining, Labor Issues Questions to be Answered What is the collective bargaining agreement? Why is it critical? Is it fair to both sides? Key issues surrounding complex sports negotiations? 9-10) March 09 Land Topic: Recap semester Lieberman: Sharapova Case SPRING BREAK March 15-19, 2016 March 23 TERM PAPERS DUE 11) March 23 Team Presentations: minutes Power Point 12) March 23 Team Presentations: minutes Power Point 8

9 Assignments for the Business of Sports Marketing SPORTS TERM PAPER Generic information applies to all term papers 1. All papers should have a bibliography, some appendices, and more than web mentions to support your research including some articles, books, etc. 2. The last and most important section of the paper should provide the focus and should describe the problem or topic or main issue under consideration. 3. It should demonstrate a grasp of the problem, current status and team recommendation. It should run about 5 pages for the short papers and 6+ pages for the longer papers. Team 4-5 persons 20 page papers, with 15 pages on background, industry landscape, marketing developments 5 pages on the problem. Issues (see above) Team 6 persons 25 page papers, with 18 pages on background, industry landscape, marketing developments 7 pages on the problem. Issues (see above) Please don t use material from the HBS cases since we will all have read them and we are looking for fresh material. Any questions please soon, so that you have the maximum time for developing the paper. Good luck. Al Lieberman Please respect Academic Integrity 9

10 Topic Directions The Business of Sports Marketing Topics 1) Major League Baseball There is an increasing number of Hispanic players in MLB. How can MLB better capitalize on this growing and increasingly important market segment? 2) National Basketball Association Is the influx into the NBA of high school players and players who play for one year in college good or bad for business and why? Should the NBA raise (or lower) its age limit and what are the implications for doing so? 3) National Football League The NFL is the dominant sports league in America but has faced criticism for player behavior issues, player safety and for being too violent. What could the NFL do to protect and enhance its reputation going forward? 4) National Hockey League Hockey remains under the radar in many parts of the U.S.? Why? How would you market the league to a teen audience? 8) Tennis Does the U.S. market need home-grown female and male superstars for tennis to thrive? Why or why not? 9) NASCAR Is the New York City area viable for a NASCAR race? Why? Why not? 10) College Sports With the football playoffs, some schools dropping football, challenges to Title IX and unionization all impacting the business of college sports, what strategies should school presidents consider when looking at athletics? Should college athletes get paid? Why or why not? 11) Choose a topic for approval 5) Soccer The MLS has made progress and the men s and women s World Cup are very high profile in the U.S.; but why is this sport so popular in other parts of the world but not in the in the US? Any recommendations as to how to generate more excitement for the sport in the US? 6) X Games Extreme Sports has developed as its own industry in the past several years. What is the future for this category? 7) Golf The popularity of Jordan Spieth this year has helped generate more excitement for the PGA TOUR, but its popularity has ebbed and flowed in the last several years. Overall what has that impact and Tiger s diminished presence been on the business of golf? 10