KRLS 105 Final Flashcards
Sport Consumer Behaviour
Consumer needs and motivation
doesn’t stay constant
- identifying and satisfying customers’ unfulfilled needs
- participant motivation
- spectator motivation
- participant and spectator markets
Participant motivation
-over 100 motives for participating in sport
-three key motives (not mutually exclusive)
1) achievement- want to be best/win
2) social- interaction w/ teammates and coaches
3) Mastery- trying to improve self in new skill, intrinsic/ challenge self
-extrinsic and intrinsic rewards
(trophies, medals, etc). (weight loss)
Spectator motivation
- different reasons for watching and participating
- spectator motives vary considerably
1) diversion- distraction, gets you away
2) eustress- healthy stress, game in OT, suspense movie - overlap with spectating and participation
examples: betting, basking in glory, see athleticism and performance
Consumer perceptions (shape level of interest)
- perceiving sport as meeting a particular need or motive
- acting and reacting based on perceptions (factual, based on real world)
- process by which a person selects, organizes, and interprets stimuli to create a meaningful picture of the world
- influence of the media- reinforces personal perception
- everyone experiences the same thing differently, making it difficult to find what they really want
Consumer attitudes
Marking efforts (anticipate motivation)
-directed at shaping people’s perceptions
-attempting to form or change customers’ attitudes (athlete endorsement)
Text: Attitudes are based on a person’s experiences (behavioral component), feelings (affective component), and beliefs (cognitive component) about an object
Consumer Attitudes (cont’d)
Attitudes:
-expressions of inner feelings that reflect likes and dislikes
-based on three components: experience (behavioral component) feelings (affective component) beliefs (cognitive)
Consumer
-loyalty: less affected by price changes- still a fan
-involvement: deeply feel/think about (olympics- think about before/after or not)
-identification- degree sport/ activity part of sense of self (loyalty, money spend)
Group influences on the sport consumer
External factors influencing buying behaviour:
-people closest to us (family/friends)
-groups with whom we choose to associate (community)
-broader society in which we live (regions have different preferences)
Direct (ethnicity/ direct contact), indirect (great someone was an athlete), and aspirational (want to be like) reference groups
Consumer socialization
reference groups, socialization processes
Reference groups: ways/rituals associated (dressing, place you sit is stadium
-chosen based on what consumer has learned (preferences, modelling off others, previous experiences)
-can affect what a consumer learns subsequently
Direct (face-to-face) and indirect (aspirational) reference groups influence on the ways we consume sport
Socialization processes: modelling (off others), prompting (bring glove to catch fly ball), and reinforcement (rewarded/ punished for behaviour/ way of doing things)
Situational influences on the sport consumer
-isolating influences of internal and external forces is difficult (more than one influence)
-different contexts and situations result in different decisions (hungry or sleepy)
A situation is a set of factors that are:
-outside the individual consumer and removed from the product that they buy or its advertisement that they encounter.
-removed from the product or advertisement
Situational influences on the sport consumer (cont’d)
Awareness of how purchase situations influence consumers
Situational influences:
-physical surroundings: smells, weather, crowd, traffic
-social surroundings: friends, who going with
-task requirements: why are you doing it
-time pressures: time of day/season, commute, start to event
-antecedent states: anxiety, excitement, anger
Consumer decision making in sport
Common progression in decision-making process as consumer
-recognizes a need or problem
-seeks information to resolve problem or fulfill need
-determines purchase option
-evaluates alternatives
-makes purchase decision
-engages in post purchase evaluation
(cognitive dissidence- anxiety about a purchase)
Decision process diagram (page 14/15)
Sport consumer behaviour challenges and issues
-meaning and emotion of sport consumption (create attachment, anticipating needs)
-globalization of sport (cultural differences)
-virtual consumption (online communities- betting/ chats)
-compulsive consumption (gambling, compulsion affects daily life/ exercise obsession)
side bar: social media and consumer behaviour:
ex. running races- people engaging more likely to remember sponsor/ adds
Sport Communication
Lecture 14
Sport communication
- a prominent and exciting aspect of sport management: emergence of sport media personalities ex. social media
- includes myriad of actions and activities: conversations, media releases, social media
- a process by which people in sport, in a sport setting, or through a sport endeavour share symbols as they create meaning through interaction ex. communicate clearly, Fleury
Theoretical framework of sport communication
1) genres- different approaches, groupings
2) context- interpersonal, group, organizational (internal: emails, talk. external: ads, media, reports), mass mediated (false more likely to be shared than true)
3) process- context specific (in any given situation)
4) elements- sender; message; channel; receiver (places for misinterpretation)
5) effects
Elements in the communication process
image
Communication models
- Encoding (assigned by sender) and decoding(assigned by recipient) added to the process
- Communication as a 2-way process
- argued that for communication to exist the sender must share something: common language, vocabulary, interest in or understanding of the subject
Effects
- Varied results of communication on audience members ad society in general
- Theories of mall media effects:
- uses and gratification: select info reinforces what they already know
- agenda setting: media influence what is important/ what people think about (Oilers vs bears media)
- innovation (4 elements): innovation itself, communication channels, time, and a social system
- diffusion of information-viral videos, mercy at people using social media
- modelling (role models) and cultivation (languaging)
Strategic Sport Communication model (SSCM)
figure 14.1, page 298
-Provides a framework for interaction between communication dynamics and setting
Elements:
-sport communication process
-personal and organizational communication in sport
-mediated communication
-sport communication services and support
Personal and organizational communication
SSCM component 1:
- personal sport communication: intra and interpersonal and small group
- organizational sport communication: intra and inter organizational
- Communication skills (writing and speaking abilities)
Mediated communication
SSCM component 11
- sport print communication (newspaper)
- sport mass media
- emerging and social media
- change the ways people interact
Sport communication services and support
SSCM component 111
- advertising: remembering ad and products
- PR and crisis communication: ex Tylenol, concussions
- research: examine efficacy
Sport public relations
Models of public relation practice
- One-way models:
- press release (written): hiring, news, weigh in
- press conference (call reporters)
- Two-way models
- public opinion data: feedback on something
- symmetrical approach: negotiation, feedback focus groups, interaction
Media relations in sport
What media relations specialists do:
- write news releases (what is news worthy)
- plans news conferences (face-to-face interaction)
- manage game services: give media places to sit and treat them well for good reviews
Community relations in sport
What sport community relations specialists do (engage broader community):
- create, organize, execute charitable initiatives
- donation of resources
- coordinate public appearances
- volunteering
Sponsorship
the promotion mix
sponsorship now a fifth element with:
- personal selling
- advertising
- publicity
- incentives (sales promos)
sponsorship platform
Platform: the central theme around which the sponsor can develop a consistent promotional message
Important because the sponsorship doesn’t offer a direct message as to why a brand should be purchased (persuade worthiness)
• Need to amplify the message to audience; sponsorship alone will not translate into sales
• Trend is to have fewer sponsorships but invest more in leveraging each
P1: Leveraging the sponsorship platform
Two basic costs:
Direct sponsorship investment- naming rights
Indirect Activation of the sponsorship
• Typically $3 in activation spent for every $1 spent on direct sponsorship- spend more money at first to create link
• Ratio may vary over time
P2: leveraging the sponsorship
Media Involvement
-Extent of anticipated media involvement prominent in negotiations
-Media coverage a key to brands seeking increased awareness or image (sponsorship)
enhancement
Three ways to pursue media coverage:
1) negotiate trade-outs with TV, radio, or newspaper (more aware/ being spoken about, contests)
2) media pays to sponsor event in exchange for rights to sell other sponsorships (NBC pays NFL, NBC sells ads and sponsors)
3) secure editorial coverage
-properties buy block of time from the network (ie. A 30-minute block), then sell ad time (Ultimate fighter, UFC produced show and bought tv time, recovered cost by selling ads and sponsors)
-the property purchases advertising time in exchange for title credits and mentions in promotions (Pom in water of American Ninja Warrior)
Platform Elements
Signage- identification
Awards- best employees- clients to suites
Internet- interaction
Retail promotions- snack people at Costco
Personalized service- fix while at event
-coleman and NASCAR
*Licensing- T-shirts, sponsoring acts long after event over
Sponsorship commitment
Need time to establish linkages
Long term relationships may leave legacies
3 year minimum recommended
2 reasons why sponsors do not renew:
• Sponsor management or market conditions may change
• Reduction in impact of sponsorship (ex. pro teams- get to meet all players and best performers)
Alcohol sponsorship and sport and recreation
Sports fans drink beer/beer drinkers like sport (men between 18-24 consume 70%)
• For both men and women, maximum beer consumption and sports participation peak between ages 18 and 29
• Seen as lesser evil than tobacco, as it is any tobacco consumption is unhealthy, while it alcohol abuse that is the problem
Packaging sponsorships
Creating different levels of benefit packages
Four types:
1. Title sponsor
Name integrated into the event Has input into organization of
event (location)
Can result in increased costs (in charge of success/ failure)
Types of benefits packaging
presenting sponsor
- Presenting sponsor
• Usually pay 1⁄2 to 1⁄4 of what Title Sponsor pays
• Given rights to associate within a specific product category (don’t want same rights as the title sponsor)
• Will try to narrow categories to increase the number of possible sponsors
Types of benefit packages
official sponsor, official supplier
- Official sponsor
• Pay 10% of title fee
• Part of product categories not reserved by
presenting sponsors
• Allows smaller companies with fewer $$$ to have sponsorship opportunity - Official supplier
• Do not have obvious link to event
• Offer goods or services to organization staging the event (IT, credit card, transportation, food/ drink)
Pricing sponsorships
Using hierarchy of types of benefit packages allows potential sponsors to choose level of investment
• Potential sponsors usually presented top-level package first
• Acceptability of the price will depend on other sponsorship opportunities available
• Do not price individual elements of a pricing package as will allow sponsor to try to cut out parts
• Most of fee (65%) should be paid up front- immediately start leveraging sponsorship
Issues addressed in a sponsorship agreement
Official Status:
The sponsorship category, rights, etc.
Sponsorship Fee:
How much? When is it paid? Refundable? Secured?
Title Rights:
How does sponsor’s name appear? Awards? Trophy presentations?
TV Exposure:
Who owns rights? Right of first refusal for advertising?
Issues addressed in a sponsorship agreement
Public Relations & Media Exposure:
-Will athletes mention sponsor in media interviews? Will sponsor be named in media releases?
Logo Use:
-Can sponsor make and sell merchandise? How can sponsor use organization’s logo or special logo developed for the event?
Signage:
-Banners, patches, flags. How many? How big?
Advertising Rights:
-How can the sponsor use the event for advertising purposes? Can photos be used?
Athlete Use:
-Will athletes make personal appearances on behalf of sponsor? Attend social gatherings? Wear the sponsor’s name?
Issues addressed in a sponsorship agreement
Hospitality Rights: (tote bags)
Hospitality tent? Tickets for clients, prizes for tie-ins?
Point of Sale Promotion:
Products sold on site? Can sponsor run on – and off-site promotions?
Direct Mail Lists: (on wifis)
Will mailing lists of ticket holders be made available to sponsors? Promotions?
Product Sampling:
Space made available for product display/sampling?
Legal Liability:
Who is responsible for injuries to spectators, athletes, officials?
Future Options:
How long is the sponsorship? Who has the right to renew? Fee increases?
Measuring sponsorship impacts
Media Equivalencies
Quantifying:
• Duration of television coverage, including verbal and visual mentions
• Duration of radio mentions
• Press coverage (measured in
column inches) -logo/ font size
Calculate and assign a dollar value based on the rate paid
measuring sponsorship impacts
Media coverage weighed to reflect:
1) Relative attractiveness of different types of media coverage
2) Quality of media coverage- prominent network
3) Amount of clutter- other ads
Often inflated:
1) Article length equated with advertising space
2) Full rate card value is assumed when few companies actually pay full price
3) Assumes that time of exposure adds up to equivalent commercial spot
Assumes that time of exposure adds up to
Impact of sponsorship on awareness
Issues:
Recall is often faulty
Market leaders given credit for sponsoring- assume dominant company is the official sponsor
ex. 1/5 people assume top brand=sponsor
Sport facility and event management
Chapter 16
Intro
Rise in construction and renovation of sport and entertainment facilities (become more expensive)
•Financing issues- cities waiting, who pays?, rec center= tax payers
•Distinguishing between sport and
entertainment?- bonds?
→ Entertainment and Sport Complexes
-large facility for minor sport= too expensive
-other community usage at arena?
What are the city needs?
What jobs are available?
Types of facilities
Single purpose -bowling alley, MLB park with real grass
•Single purpose - specialized- community arena- other activities are not excluded
• Multipurpose
–Designed to host a variety of events- butter dome, cost efficient as you can change configuration
• Nontraditional- single purpose, skate park, indoor mountain bike course
•May or may not have roof, walls, spectator
seating areas- want more in community facilities, easier to build twin pad rink
Considerations
Funding model - private or public (or combo)
•Public Private Partnerships- revenues, concessions
•Anchor tenant (pays rent) - primary user- someone use a lot to make financially viable (oilers, minor hockey association)
•Debt and debt repayment- how money is being used
•Control of revenues- Oilers control
•Responsibility for maintenance/upkeep- repairs/ upgrades to dressing room- Oilers
X2 Considerations
Operator? - city owned but not in entertainment business, does the operator know what they are doing?
–Spectacor => Spectra (venue, food, ticketing/fan) •Favoured nations clauses?
–More than one anchor tenant- NBA and NHL sharing rink, 1 has favoured nations cause in contract for sponsorship
•Stadium Authority? -quasi-government entity that oversees, organizes payments for debts
•Naming rights?
– Farmers Insurance Stadium- significant revenues allowing you to decrease debt and reduce user fees
Facility Management
Managerial numbers, titles, and duties vary ( facility size)
•Management positions and responsibilities
–Facility director- CEO: operating, financials, vision
–Operations manager- report to higher ups, training, activities host
–Event coordinator- equipment needs, security
-1 particular type or series of events
Event Management 1
Events come in many shapes and sizes, and can present unique challenges.
•Planning, coordinating, staging, and evaluating.
- maximize use of facility by targeting different events
Event management and Personnel
Executive director (larger scale)- event manual (everything you need to know about hosting)
–Overall administration
•Operations division manager- registration, merch, awards
•Security coordinator- risk assessment, law enforcement, emergency response
•Public relations, marketing, and hospitality
division manager- ceremonies, protocol, media, report to executive director
Event management flow chart
https://bookshelf.vitalsource.com/reader/books/9781492567127/pageid/363
Seven basic steps of events management plans
- Scheduling-pre
- Negotiating-pre
- Coordinating-pre
- Staging
- Settling with the promoter- post
- Cleaning up- post
- Evaluating- post
Pre events management tasks
Scheduling the event
–Booking- where held? -what does the community want?
•Negotiating the event
–Boilerplate contract- fill in the blanks (how entertainer paid, revenue split)
–Split- how dividing (parking, merch, concession), more prominent entertainer demands more
•Coordinating the event
–Plans, work orders- security
–Cost analysis- staff and pay act
–Work breakdown structure, Gantt chart (chronological bar chart that illustrates a project schedule)
Staging the event
Staging the Event
•Run sheets; floor plans; floor diagrams
•Security – vulnerability; exercises
•Customer service- people come back or not
•Alcohol policies – policy and training; sales
and marketing; tailgating; detection & enforcement-profitable but sometimes serious issues
ex. tailgates, sloppy drunk
Crowd management plan
Crowd Management Plan
•Staff training- 1 for every 250 people
•Emergency planning- muster points, evacuation plan
•Ensuring accessibility for disabled (part of plan above)
•Procedures for ejecting disruptive people- liability for people who work there and event itself
•Efficient communication system- cameras, ear pieces, spotters
•Effective signage- bathrooms, concessions, first aid (liability)
Post-event tasks
- Event cleanup- efficiency, getting stuff in and out
- Settlement- fees/ revenues
- Evaluating the event- process, things to change, ways to reduce liability
Economic and intangible benefits of sport
Establishing the geographic area of impact
- Province (bring new economic impact to province), region (spending in another city does not mean gain for the home city), city (Edmonton Oilers people coming in to spend)
- Usually reflects funding source (city use of YEG facility- only care about bringing money to YEG)
- Displaced spending-spending that would occur in the area anyways (lockout- people spending money elsewhere= money displaced)
Economic impact analysis
-Expenditure approach- estimate money being spend based on the event itself ex. dragon boat festivals
• Estimate attendance at an event- how many?
• Survey attendees to find spending associated
with the event- % which not from
• Apply multiplier to account for recirculation if
money in local economy- watcher-bar-subway
• Multiplier: The degree to which spending
induces additional rounds of spending
Economic impact analysis
• Income approach (because of world juniors bar has to double staff to support incoming economic activity)
–Total payments to workers and suppliers in
related industry
–Apply multiplier (more workers spend more money in the city)
• Errors at any point in calculation can significantly bias results
Substitution effect
• If attendees spend money on an event
instead of something else in the local
economy
–reallocation of expenditures, no net increase in
economic activity (no hockey games=spend on something else)
• A sport and leisure event may lower local
economic income if spending is switched from other activities that have a higher multiplier (Winnipeg economy grew without team- players don’t spend money there)
Time switching
•Visit to city already planned •Schedule simply rearranged to accommodate event •No new economic activity – just changes when it occurs
Causal visitors
•Someone in an area for unrelated purpose but attends event while they are in town
•Spending of Time Switchers and Casual can only have $$ over and above what they would have otherwise spent be counted
-only counts if more money taken for the game/ event and can be attributed to the team
Incremental visitors
• Those who come to a region for the purposes of the event – direct spending fully attributable to the event
-wouldn’t be going without event
Indirect and Induced spending
• Indirect: recirculation of $$ in economy after direct spending on the event (multiplier)
• Induced: how direct and indirect impacts affect earnings and employment (restaurants bring in more stock and staff for increase in demand)
-direct: tickets and hotel room
Multiplier
• Helps to estimate indirect and induced impacts
• Direct spending usually recirculated in 5 ways:
1. Other private businesses in same economy (hotels, rentals)
2. Employees in same economy (restaurants)
3. Local government (sales tax)
4. Non-local government (federal taxes on business)
5. Employees, businesses, etc., outside the local economy (out of town to work)
Leakages
• Spending that does not remain in the local
economy
–4 and 5 in previous slide represent leakages
-ex. Oilers players living elsewhere
Issues with overestimation
• Crowding out
– May discourage economic activity in areas
that are already popular as tourist
destinations
ex. Athens hosting the olympics- too crowded
– Where activity occurs during peak visiting
times
ex. Kelowna trying to get winter tourism
– New event spending simply supplementing
spending that would otherwise occur
• Reverse Time Switchers
– People who leave because of the event
ex. Vancouver car races- noise creation
Solutions
•Ignore local residents in impact estimates
•Exclude Time Switchers and Casual
•Consider costs and opportunity costs- true economic impact is smaller
• Sum up model….
Total Economic Impact = Direct Spending + Indirect Spending + Induced Spending (household level)
Buffalo sabres data
- how many people expressly coming to the game?
- how many from out of town?
- not accurate multipier
Mega-events
• Huge infrastructure costs
• Huge operating costs (security alone billions)
– Many estimates grossly exaggerated – Why exaggerated?
• Measuring gross, not net spending
• Not considering the lack of spending
elsewhere
examples: World Cup, olympics
Intangible benefits (non-economic)
- Psychic impact - the emotional impact that a community receives by virtue of hosting an event
- Impacts received by those not directly involved in the event
- May be used to justify (part of) subsidy to build infrastructure or host an event
Contingent valuation method
measure intangible benefit
•Survey methodology- some things don’t have market value, but that doesn’t mean people won’t benefit
•Respondents asked their willingness to pay an
increase in taxes to see an increase in a public good (or avoid losing a public good)
ex, building Oiler arena downtown vs elsewhere- measure the value of vibrancy downtown
Economic Theory
- Suppose Jane spends a certain amount of her income to reach a specified level of satisfaction (or utility) from the consumption of goods and services, including attending the Edmonton Folk Festival every year.
- Suppose the organizers of the event enter into negotiations to move it to Winnipeg. Losing the event will reduce Jane’s levels of utility. To return to her original level of utility from the consumption of goods, she might need to consume an additional $25 worth of different goods or services.
- Thus $25/year would be Jane’s willingness to pay for the City of Edmonton to keep CFR in town
CVM Pittsburgh
• 1999 NHL Penguins in bankruptcy • CVM study too see if WTP high enough to buy team • 51.5% willing to pay to keep team • Residents who lived in Pittsburgh during 1991 & 1992 Cup years WTP higher • Aggregate WTP was $48.3 million
CVM studies – Alberta Amateur Sport & Recreation
• WTP to expand sports and rec programs
• WTP higher than for any pro sports team in US- value of rec sport
• Suggests public goods value of amateur sport and rec higher than spectator sport- willing to pay billions for olympic gold medals
-olympics increase role medals/ health
Economics and Financing – Sources of Funding
Public sector funding
Bonds
“long-term debt instruments that allow local governments to borrow in advance (typically from a bank) the money needed to underwrite construction costs” (Howard & Crompton, 2004, p. 202).
• Taxes are then collected and the proceeds are used to repay the bonds over a specified time period (usually 15-30 years)
• Allows the government issuing the bonds to pay off the debt in installments over time instead of creating a large tax increase
Hard taxes
General property tax
- Primary source of revenue for local governments- city growth ideal and density (already transportation, reducing highway burden)
• Used because other taxes (business, sales, income) might actually reduce tax base people leaving- property tax= 70%
• Property is immobile so easier to tax- raise considerable amount to consider leaving
• Principle of ability-to-pay- more valuable properties= more taxes
• A benefit tax- revenues go into improving quality of property (snow removal, trees planted, etc. - property more valuable in the long run)
Hard taxes
General property tax
- Tax base- total value of all assessed property in the city
• Tax rate- amount of taxes you pay
-smaller property=less taxes
• Must pay – can have tax lien placed on property
• Can appeal assessment
• When property values go up, city can reduce tax rate
-don’t raise taxes to match increase
• When used to fund capital projects (bonds), a referendum is almost always required
-rec centres or road construction
Hard taxes
General sales tax
• Largest single source of revenue for many US states
• Typically at rate between 3% and 10%
• In US, can be used by cities, and counties
as well
• The greater the area covered by the tax, the more revenues generated and the greater the dispersion of the tax burden
Soft taxes
• Places burden on smaller group
• Many targeted at non residents – Why? Tourist Taxes (not residents carrying the burden)
• Occurs two ways
Hotel or occupancy tax
Car rental tax
• Justified on grounds that tourist will be beneficiaries of infrastructure development
• Can be unpredictable source of revenue due to fluctuations in tourism market
Issue: more local people may be paying up to 1/2
soft taxes- tourist taxes
Hotel Taxes
• Also called Bed taxes
• Usually levied at rate of 2%-5%
• Used frequently in US to fund major league sports facilities
Car Rental Taxes
• Average 8% in US
• Problem – half of car rentals may be from local residents
soft taxes- sin taxes
Alcohol and Cigarettes
Problem – very regressive; costs borne by those who can’t afford it
-disproportional to those of lower economic status
Player taxes: “jock” taxes
Player Taxes (“Jock” taxes)
• Visiting players pay a tax for work done while in the designated area
• Nonresident players pay tax- not living here but working here
• Usually defined in terms of duty days, at a rate of 1%-4%
• Some US states raise up to $10M a year this way
• Province of Alberta – visiting NHL players pay based on games played in Alberta, as well as home-based players in Calgary and Edmonton. Discontinued
• City of Pittsburgh – 1% tax on players used to service debt on sports stadiums
• Reasonable?
-picking on players
-not same for actors
Debt financing
• Similar to the way individuals purchase cars or homes (depends on money coming in)
• Money borrowed from a lending institution, then
debt serviced through installments over a set period
• Revenues from hard or soft taxes pledged to repay debt obligation
• Downside is interest costs paid over length of the repayment period
• Upside is payments spread out over time to reduce annual tax burden (people who use it pay for it)
• Preferred method from a political perspective
• More equitable to taxpayers – if paid upfront would burden taxpayer of today who might never use the facility in the future
Bonds
A promise by the borrower (the public entity) to pay a lender (the financial institution) a certain amount of money over a certain amount of time (with interest)
A certificate with three elements:
a) A face value (such as $5000)
b) A fixed rate of interest (such as 6%)
c) A maturity date – the point at which the bond must be repaid in full
Serial retirement schedule – bonds sequenced with different maturity dates so that a number of bonds get paid off over time
Graduated serial retirement schedule – annual principal payment increases over duration of borrowing period
Never set a maturity date that is longer than the life of the project – try to align with lease length. Why? -not paying for something not using
General obligation bonds
-city credit score is bond rating- how safe to lend money to city
• An unconditional promise to repay debt
• Usually secured through property taxes
• Statutory debt ceiling -Limit on amount that governments can borrow
• Because they are guaranteed, come with lower interest rate
• Because all taxpayers bear the burden, must get approval – referendum
ex. city owning Rogers rather than group as lower interest rates (did not use these bonds)
Certificates of Obligation
• Do not require voter approval
• Still unconditional promise to repay
• A public hearing is announced
• Electorate can request a referendum
• Also retired over designated period
• Usually done when investment is needed quickly and/or doubts
-borrow money quickly, might not pass referendum
Non guaranteed debt
-Used due to resistance towards guaranteed debt
-Debt repaid by revenue streams, but government not obligated to make up shortfalls
Three advantages:
-Voter approval not required
-Does not count against government’s debt ceiling
-If revenues to repay debt drawn directly from the project, then those benefitting from project pay for it- user fees, parking
Cities will generally agree to make up any shortfall with general revenues for two reasons:
• To reduce investor risk and lower borrowing rate
• Defaulting would damage city’s reputation in investment markets
- referendum would not pass
- pay with revenue streams from facility
- does not count for debt ceiling
Nonguaranteed Debt Revenue Bonds
- Where revenues from facility used to repay debt – “user pay” -oilers ticket tax
- No vote required
- Does not count against debt ceiling
- Higher interest rates as not guaranteed
- Can only use in facilities that turn a profit
- May result in higher user fees
-ends up being guaranteed behind the scenes
Certificates of Participation
- Intermediary organization (such as a nonprofit recreation organization)(IO) sells COPs to financial institution (FI)
- FI delivers funds to IO
- IO pays builder to construct facility using COP funds
- Builder deliver facility to IO who holds title
- IO signs lease with Facility Operator (FO)
- FO pays lease fee to IO that is enough to cover annual debt charges on COPs
- IO pays FI debt charges on FI
• When COPs are paid off, title usually transfers to FO
• Bank may also sell COPs, called “participation shares” in the project
Tax Increment Financing (TIF)
• Tool for facilitating urban development
• Cities or other entities allowed to create district around facility to
subsidize development costs
• Incremental increase in taxes in (re)developed area used to service debt on the development
• Tax-increment bonds secured by increase in property taxes in area
Need to establish property values at time of development
Compare with value of property AFTER development
• TIF districts exist for a set amount of time, such as 15-25 years
• When used for sports facilities, facility viewed as centerpiece or catalyst for broader development
Tax Increment Financing (TIF)
Advantages:
No tax increases required
When TIF dissolved city receives additional tax revenues
Disadvantages:
Incremental increases in tax base used to service debt, not address increased infrastructure demands within the district (police, fire, roads, etc.)
Risk that development will not occur at anticipated rate, or appraised development not high enough
Community Revitalization Levy (CRL):
Same logic as TIF
Proposed to fund part of new arena development in Edmonton- Rogers- why no increase in taxes
Private-Placement Bonds
- Organization developing the facility issues long-term, fixed rate certificates to private lenders -people invest in it
- May include private pension funds, insurance companies
- Secured by facility revenues (similar to revenue bonds) - game revenues guaranteed
- Sometimes guaranteed by a private party (such as a team owner) -have other money because wealthy
Asset-back securitization
• A variation on private-placement bonds
• Most credit-worthy streams are
bundled and sold to private investors
• Does not require all revenue from a facility to be pledged to debt service
• Examples of sources: Naming rights, concession contracts, corporate sponsorship deals
• Selling* Future cash flow from these sources essentially “sold” to investors
-hand picking revenue streams
-lend money back on basis of names
-revenue streams placed in trust/ separate entity
-if you go bankrupt the assets are still protected
Conclusion
- Many ways to finance sport and recreation infrastructure
- Can find a model that fits best for a given project
- If one is entrepreneurial, a creative way of developing a business opportunity may be available through these models
Sports Law:
Torts, Liabilities, and Risk
Tort
“…a private or civil wrong against a person, to property, or to one’s reputation”
• Can be intentional or unintentional
• Most common in sport and recreation:
assault and battery, defamation, invasion of privacy, negligence
Risk
Risk is “the chance of injury to your members or participants, damage to your property or property of others which you may be responsible for, or other loss to your organization, directors, volunteers,
members, or to someone else”
-can anticipate risk
Defining risk management
Risk Management is defined as “reducing the chances of injury, damage or loss by taking steps to identify, measure, and control risks”
- MMA rules- cannot get rid of risk due to sport itself
- anticipate and minimize risk
Negligence and liabilities
•These are two legal terms that can be associated with Risk Management.
•Negligence (provider) is “behaviour or action which falls below a reasonable standard of care” (Corbett and Findlay, 1998, p.9).
-railings/ safety elements
•Liability is when a person or organization is
responsible for the negligent conduct, which
often results in compensation.
–Liability would most likely be a problem in
situations involving unreasonable risk
Negligence and liabilities
•These are two legal terms that can be associated with Risk Management.
•Negligence (provider) is “behaviour or action which falls below a reasonable standard of care” (Corbett and Findlay, 1998, p.9).
-railings/ safety elements
•Liability is when a person or organization is
responsible for the negligent conduct, which
often results in compensation.
–Liability would most likely be a problem in
situations involving unreasonable risk
Negligence: four elements must be proven
- Duty: a relationship must exist between parties where there is a duty owed to protect or not expose a person to unreasonable risk of injury
- maintain equipment
- snow removal - The Act: whether or not there is a breach of duty
- Cause: the breach is the actual cause of the harm
- injured directly because of the act - Damage: the actual damage that has occurred.
- separated shoulder- missed three weeks of work
Doctrine of respondent superior
-steps to ensure reducing likelihood of risk
•Where an employer is liable for the negligence of an employee
•Not liable where employee acts outside the scope of his/her authority or responsibility
•Gross Negligence
-considerable lack of care
Good Samaritan laws
•Where a citizen assists an injured party “out of the goodness of their heart” and not due to any duty of care owed-
car accident
•GS Laws protect Samaritan from negligence but not gross negligence
-encourage to do good things without ramifications
Governmental immunity/ standard of care
Governmental Immunity:
Where some public institutions (schools, municipalities, etc.) are given immunity from certain negligent acts
-run across highway to school
Standard of Care:
-relates to profession not individual
An expectation that an individual will act according to the standards of a profession
-if providing service they act with expectations
Determined by foreseeability: could a reasonable and prudent professional have foreseen the potential exposure to risk
-thunderstorm at pool
Primary assumption of risk
Consent of the Injured Party:
1.Participation was free and voluntary
-no coercion
2.Individual consents to risks inherent in the
activity, and integral to activity
-things happen by virtue of playing sport (concussions)
3.Knowledge of the activity
a.Risk can be implied or express; express in form of
waiver or informed consent
-make you aware of risk
reasonable vs unreasonable risk
•A reasonable type of risk, consists of an activity that is a norm or an inherent part of the event or game
– One could expect (injury damage or loss) in this way as part of the event
– Example: Physical contact in basketball; Falling in skiing
•An unreasonable risk is any type of activity that is not part of the event or game
– One would not expect this type of (injury damage or loss) in the event
– Example: Fan attacking a player or vice versa
Secondary assumption of risk
- The person’s own behavior contributes to injury
- Failure to heed warnings/rules/instruction/waiver forms
-pure fault or % fault
warnings and participation forms
provider protection
1.Obvious and Direct
2.Specific to the Risk
3.Understandable by the party being warned 4.Located at point of hazard, or at appropriate
time
risk management in sport and recreation management
-reducing and managing risks
•Physical activity and sport events include
elements of risk
•Risk management is not about eliminating
risk, but reducing and managing (risk=exciting)
•Risk management should not change the
inherent nature of the activity (fighting in hockey)
•Risk management is a responsibility of
everyone in an organization – everyone must be concerned about risk management
Intentional torts
Disturbance of Intangible Interests:
Invasion of Privacy -cameras
Defamation -undermining
Truth is a defence, as is “fair comment” -critical commentary journalist, satire (SNL)
Interference (physical) with person: (tangible)
Participant vs. Participant
Negligence – occurs during course of play? -after play
Civil Assault and Battery – intentional tort -hard in sport
Reckless Disregard – in acting recklessly, player “intends”, by inference, to cause injury
Criminal Assault and Battery – must be malicious intent and charges brought by public prosecutor
Hazing- intangible, tangible- traumatic
employment torts
- Negligent Hiring – need criminal background checks -minor hockey coaches
- Negligent Supervisor – can’t ignore employee conduct -liable by not doing anything
- Negligent Retention – must discharge unfit employee
Risk management - avoiding tort liabilities
Phase 1: Analysis and Control 1. Identify risks 2. Estimate frequency and severity 3. Determine approaches to control risks (Alternative Control Approaches)
Alternate control approaches
strategies to avoid issues
• Avoidance – discontinue practice
• Transference – shift liability to another
• party (insurance, contract)
• Retention – accept risk and costs
• Reduction – reduce exposure to risk in
• operations
-new equipment
-safety training
-netting and higher glassRisk management: phase 2 and 3
Phase 2: Statements of Policy (Types of insurance to cover; travel restrictions)
-injury at team party
Phase 3: Operational Practices and Procedures
-maintenance and cleaning
Risk management
Phase 4: Implementation of Plan
- Risk Manager – designate individual(s) -CPR
- Employee Involvement – safety committee,
etc. - make suggestions - Manual – procedural guidelines -written
- Information/documentation system – forms,
etc. -when they are being done - Public Relations -letting people know things done to reduce likelihood of risk
- more attractive for people to use - Monitoring -whats going on? -stop from occurring
Take aways
•Legal issues are case specific •Must plan to protect from personal and organizational liability •Impacts everyone in industry, as either participant or service provider -sports increase cost because of insurance cost
Media and the sports business
Media
Media: the means of mass communication: TV, radio, newspapers, Internet
Media: people whose job it is to disseminate information, such as editors and journalists
Nexus: the core or centre of a connection between two or more things
Sport and the Media are NOT two industries that come together
-sport media is its own thin g
Introduction
• How does sport as a media product differ from other forms of consumption?
-uncertain outcome
-produced/ consumed at the same time
-degree to which sport is part of sense of self
• How does sport lend itself to providing ways for media companies to generate revenues?
• The mediated sport product is now its own product within the entertainment industry -pre game show
• No longer seen as a just an additional means/way of consuming
-trade deadline
-draft lottery
-free agency
-fantasy
Programming input
• Sport viewed as programming that can ‘break through the clutter’
-get noticed
• Value of sports programming tied to Leagues’, teams’ and athletes’ market reputation and legitimacy
-Fox vs other providers
Media flow chart
Sport teams, events and leagues programming -want enough people to watch media providers (networks, cable, satellite) -rights fees to profit from ad slots ad slots -more expensive Advertisers (consumer product producers) slot fees media providers (networks, cable, satellite) rights fees Sport teams, events and leagues
Mass communication
The process through which the media deliver visual, audio, and/or written messages to a large audience -not physically where message originates -don’t know audience
- audience is diverse, possibly unknown
- feedback slow, often difficult to know how messages interpreted -can measure if tv is on, not if people are paying attention
- information disseminated by mass media shapes how we make sense of the world
- info we get/message shape how we see things
- media tells us importance: Oilers before news on media
Elements of mass media
1) Commercial – most media organizations profit-driven
- put out most popular content
- tell you about something to draw attention
2) Audience – large, heterogeneous, anonymous
- tell audience by advertising
3) Content – words, sounds, images
4) Organization – the source of content
- who is creating
Research perspectives on mass media
1) Practices – decision making and production work by specific media members
2) Text – the form of the product (newspaper article, TV program) -media framing- catch phrases to get attention- rink made world class city
3) Audience – those who consume and interpret the product -opinion’s impacted?
Media convergence
a ‘buzzword’
• the increasing integration of mass communication, telecommunication and data communication in the delivery of media content
-live in world
• transportation of sports media no longer remain specified to TV or the internet - simultaneously available
Historical relationships
• First US sports magazine: 1820 • 1830s to 1840s emergence of NP industry -mass produce inexpensively • Games ‘recreated’ for radio -telegraph • TV emerges in 1950s – Leagues wary -affect attendace -hockey night in Canada start post second period • AFL survives due to TV contract -super-bowl (AFL vs NFL) • Telstar satellite launched 1962 – Tokyo Olympics (1964) -do things live throughout the world
Media growth
25% of all US TV programming sport related
ESPN receives $8 per subscriber, per month (average cable is $0.26 per channel)
-cable providers want to be a part of basic cable
Most popular network sport: football
Most popular cable sport: auto racing
Broadcasters:
compete to get TV rights
compete for content, analysis, etc.
-rights and show replays/ talk about draft
Television
• 99% of US Households own TV; 78% worldwide
• Average time of use 4.9 hours/day in US; 4 in Canada
• 26.5 million Canadians watched some part of the 2010 OG gold medal game
• Superbowl game represents 21 most-watched TV programs
-top 10-21 shows rated are football games
How sports benefit newspaper
• ‘safe’ ideological content
-not political or religious
• Promotes civic boosterism
-beat teams vs politics
• Allows newspaper to contribute to civic identity
-local player doing well
-promote community- makes them more money in the long run
Sport as news
4 types of sports news (Rowe, 1992): • Hard news: records, events -medals • Soft news: scoops and exclusives -how train, where they live. HBO 24/7 • Orthodox rhetoric: authorial subjectivity/journalist as celebrity -their opinion valued more than others (Don Cherry) -views greater than game • Reflexive analysis: critical -subjective highly critical work -ostracized by industry- drug abuse/ use
Televised sports product
-live vs streamed
Codes:
• technical and narrative conventions
-camera angle, phrases/way of saying
• eg. CBC HNIC traditionally used 6 cameras
• becomes the way of watching
-what to look for
• new viewers, employees become socialized into these practices
• what is shown (and not shown) is a selected representation of the event
-NFL can’t see at game- why TV so massive
ESPN
• created by Bill [and son, Bill] Rasmussen
• launched September 7, 1979
• First sporting event shown on ESPN: live slow- pitch softball game - Milwaukee Schlitzes and Kentucky Bourbons
• 24 hour broadcasts on September 1, 1980
• 1979 - 2 million Americans had ESPN; 1981 10 M; 1989 50M
-now 100 million
-sportscentre
ESPN
• ESPN now its own form of entertainment
• Sportscenter – news anchors as cultural icons (Dan Patrick, Keith Olbermann)
• Cultural expressions
– ESPN tries to license phrases
Increasing rights fees - who knew?
• The Silna Brothers ABA
• NBA merged with ABA – took on four teams – Spirits of St. Louis, Kentucky Colonels, not
offered entry to NBA
– Colonels’ owner accepted $3M to fold team
– Silna brothers (owners of St. Louis), negotiated to receive 1/7 of “visual media rights” of four ABA teams entering NBA in perpetuity
- NBA desperate to renegotiate
-people did not understand value of media then
-500 million settlement (10s millions every year)
-Nets, Spurs, Pacers, Nuggets
Why are sports important to broadcasters?
Ratings: % of TV households tuned into a program (45 mil = 45 rating)
Share: % of TV households w/sets in use at time (usage vs other programs
1) advertising and program sponsorship revenue
-increase share and rating
2) driving subscription penetration
-affiliates in cities
-ESPN 2 (different sport)
3) public-service obligations
-everyone have right to some content for free
-super bowl free tv
General media trends
Declining ratings (50s gauged toward men) Erosion of 18-34 male demographic -more consumers involved -still MMA New technologies, platforms -new consumption Decline of newspapers -all info on phones
Conclusions
- Longstanding relationship between sport and the media
- Both have increased the economic value of the other
- Media revenues becoming increasingly greater portion of sport and recreation organizations’ revenues
- The product produced itself has become “mediated” and a product in itself
Technology and motor behaviour
What is technology
Technology is the product of applying (scientific) knowledge for practical purposes.
-anything for any purpose in life
Technology tends to fall into one of 2 categories:
A novel invention
e.g. Apple watch
An existing product that is used in a novel way
e.g. Apple watch used for ECG monitoring (AFib)
General idea
Modern day technological advances can address specific shortcomings in motor learning and performance either through a novel invention or a novel application of a previously developed product.
Vast majority of technologies were designed initially without motor applications in mind.
Skills are essentially infinite, so possibility is essentially infinite for development and application of technology for motor skills.
-performance/ learning boosted or faster
Feedback
Technology can streamline data collection efforts but the volume of information collected is problematic.
It’s a matter of determining what’s important to the user, and what’s not.
Whole premise of user interface (UI) design.
3-4 unique bits of info is generally the upper limit for what someone can absorb before being overwhelmed by the data. Slightly higher for experts who can interpret technical data.
Feedback: Looking under the hood
Most products & companies specialize in one or two steps.
Very few are able to master most/all.
If done right, it becomes a self-fueling process
Companies like Apple, Google, Strava, Peloton, etc. acquire over 1 billion unique data points regarding movement
per day.
collecting data, storing, loading, manipulating, analyzing, relaying, user input (auto, manual, or mix)
- how to relay in a meaningful way
- assume users are not experts
- rely on imagery and infographics- associations change behaviour
Examples
Examples:
The next 3 sections all follow a standard format:
Presentation of an issue
Solution (via technology)
Considerations
Physical/Psychological fidelity?
Content of feedback? (ie. KR, KP, descriptive, prescriptive)
Timing of feedback? (ie. concurrent/terminal/relative/absolute)
Frequency? (ie. bandwidth, self-selected, summary, 100%)
Applications beyond that discussed in the notes?
Other considerations for performance/acquisition?
The considerations we will cover in the lecture are by no means exhaustive. Think critically beyond the notes.
Robotics overview
No universal definition for what is/isn’t a robot.
(IEEE Definition) A robot requires 3 characteristics:
1) *Autonomous machine capable of sensing its environment
2) Carrying out computations to make decisions
3) Performing actions in the real world
-info processing model
Example 1: Volleyball
Issue: Volleyball players struggle to replicate tactics/anthropometrics of opponents in practice.
Solution: Robotic rigs used to simulate blocking/defensive tactics of opponents.
Considerations:
Physical fidelity is good; just arms
psychological is moderate/poor. Why?
-replicating performance
-too challenging
-tech under net
Feedback is essentially redundant (KR is obvious).
Example 2: Football
Issue: Anytime a play is run in football, there is an inherent risk of injury due to player-on-player contact
Particular concern during practice when risk of injury should be minimized and learning benefits maximized
Solution: Motorized devices that replicate defensive routes
Considerations:
Physical fidelity is moderate - why isn’t is better?
-large pylon instead of human beings, avoiding contact
Feedback is essentially redundant (KR is obvious).
Example 3: Boxing
Issue: Boxing is heavily reliant on processing/responding to movements of opponent.
Much of the learning process is at the mercy of training partner availability.
Solution: Robotic sparring partner that replicates major movements during boxing.
Considerations:
Physical/Psychological fidelity are moderate - why isn’t is better?
Feedback is essentially redundant (KR is obvious).
Wearables: tradeoff
Objective of wearables is not to make the most robust device, but to make it good enough.
- lower validity and removes expertise
- metabolic device (30K American)
General trends
- wrist-based sensors make up 50% of all wearable tech
- wearable tech market to triple between 2018 and 2028
General trends of wearable tech cont’d
Consumer wearable tech almost 50%
Healthcare about 25%
Consumer Electronics: Smart Watches
For many, smart watches have become almost ubiquitous with physical activity Standard sensors: optical sensor- HR barometric altimeter- elevation accelerometer- movement and pace GPS- distance and location
Processing of inputs in isolation and interactions
*Can result in over millions of different interactions & interpretations of said interactions
output: watch
Consumer Electronics: Smart Watches
What about the feedback delivery:
At rest?
During activity?
If you’ve been sedentary for too long?
When else does your watch provide movement related feedback?
What’s the intent behind it? -change behaviour
Does it actually work?
-descriptive then prescriptive
Consumer Electronics: Vi headphones
Auditory feedback; AI based coaching Heart rate monitor in earbuds Common practice with tech to use feedback delivery to determine price: Basic subscription: KR/descriptive Premium subscription: prescriptive
Compared to a smart watch, the only difference in delivery is the output of feedback. Which is more intuitive?
Healthcare: ReGrasp
Issue: Individuals with neural impairments (ie. stroke/SCI) often lose motor function of hand/upper limb (often affects one side more than the other).
Solution: Wearable sends electrical stimulation to anterior forearm (wrist/hand flexors) and posterior forearm (wrist/hand extensors).
-stimulus response compatibility issue
REGRASP cont’d
Controlled via head movement
1st head nod = Wrist/hand flexion
2nd head nod = Wrist/hand extension
3rd head nod = turn off all stimulation (relax)
The more compatible a stimulus and response are, the quicker the acquisition process for a novel task
Stimulus-response compatibility (Lecture 1.5, Slide 20)
Average acquisition time ~10-15 minutes. Most get frustrated by 5 min.
REGRASP cont’d
Mirror therapy involves the use of a mirror to create a reflective illusion to trick the brain into thinking the affected limb has completed the movement unimpaired.
Standard rehab practice for individuals with unilateral impairments (ie. stroke, SCI, etc.)
-helps with stimulus response compatibility
REGRASP cont’d
Improvement: Increase S-R compatibility by changing control mechanism from head movement to hand movement in the contralateral (unimpaired) limb.
Sport & Rehab: Halo Neuroscience
Issue: Nervous system is never truly prepared for performance so we are never performing to our true potential.
Solution: Headphones that send electrical impulses to motor cortex, priming nervous system, thus *improving performance
What does the research say?
8/12 studies showed improvements
4/12 showed no change
Promising pilot studies with US Ski team
1 RCT showed ↑ mean power output during sprint cycling compared to no stimulation.
*Companies will often release a product before doing peer-reviewed research to back up their claims. Once the first version of the product is released, they either run studies to prove its effectiveness (e.g. Halo) or at the very least, can maximize their profits before research demonstrates the claims are bogus (e.g. Goop)
Sport & Rehab: Anti-Ankle Sprain Shoe
Issue: Inversion ankle sprains are the most common injury in court-based sports
Solution: Automatically stimulate peroneal muscles (ankle evertors) when ankle inversion threshold hit
Considerations:
Dependence?
Simulators and extended reality
Glenrose Hospital: Driving Simulator
Issue: First skill many patients want to perform after traumatic injury is driving. Driving is an open skill, and it’s impractical to have patients practice on the open road.
Solution: Driving simulator to allow for practice of driving skills but keep the environment closed/controlled
Considerations:
Physical fidelity is mostly good unless you hit an obstacle
Psychological fidelity is ok/poor
Alternatives?
Glenrose Hospital: the CAREN
Issue: Similar to driving, during rehab you want to practice skills in open environments while still maintaining control
Solution: Computer Assisted Rehab Environment (CAREN) basically driving simulator but on steroids
Considerations:
Physical fidelity is great
Psychological fidelity is good
Alternatives?
Extended Reality
Screens have an inherent limitation for their potential physical/psychological fidelity.
We’ll come back to this point later
Extended reality is an umbrella term that refers to all experiences combining reality and augmented or virtual contents. Encompasses Virtual reality (VR), Augmented reality (AR) and Mixed reality (XR).
Virtual Reality (VR)
Virtual reality (VR) → entirely replacing the reality you see around you with computer-generated 3D content. e.g. Oculus rift; HTC Vive Issue: We exist in 3D… Medical images are printed and read in 2D. Health care workers have to interpolate from 2D to 3D when interpreting images. Solution: Composite 2D images in 3D space, and use VR to interact with images in 3D space.
Augmented Reality (AR)
Augmented reality (AR) → user experiencing real reality while certain virtual elements are projected on top of it.
Field of view tends to be limited by the screen
e.g. Pokemon Go
Issue: Skin is opaque. Takes years of practice to master interpretation of medical images in isolation.
Solution: AR overlays of X-rays over patients
Mixed Reality (XR)
Mixed reality (XR) → Virtual objects appear as a natural part of the real world, occluding behind real objects.
No limit of field of view (virtual objects continuous with physical environment)
e.g. Microsoft Hololens
Considerations:
Controlled via hand gestures, not always intuitive (recall SR compatibility)
Objects are still projections (not solid matter)
Gamification: Rehab
Enhance standard practice or processes by making it into a game.
Improves motivation, acquisition, and retention
ReJoyce- multiple ways of moving ADLs
Gamification: Sport
Significant interest by fitness tech companies in removing screens from products.
Expectation is that screens will be obsolete in the industry within 3-10 years.
Feedback & information relayed to user via goggles/glasses that contain a heads up display (HUD).
Data/analytics/feedback augmented in users ambient vision so minimal obscuring of physical environment
