KRLS 105 Final Flashcards
chapter 18-24
What is the Promotion Mix
Personal selling
advertising
publicity
Incentives (sales promotions)
What is the basis of Howard & Crompton’s Sponsorship Platform
The central theme where the sponsor can develop a consistent promotional message
Sponsorship doesn’t always offer a direct message as to why a brand should be purchased (mcdonalds at the olympics)
Amplify, and invest in fewer sponsorships
Two basic costs of sponsorships
Direct sponsorship investment
Indirect activation of the sponsorship
(3:1 ratio)
How is the media involved in sponsorship
Media involvement is prominent in negotiations
Media coverage is key to brands seeking increased awareness or image enhancement
Three ways to pursue media coverage
Negotiate trade-outs with TV, radio, or newspaper
Media pays to sponsor event in exchange for rights to sell other sponsorships
Secure editorial coverage (sell ad time on NFL, ad time in exchange for title credits and mention in promotion)
How can we view sponsorships (6)
Signage
Awards
Internet
Retail promotions
Personalized service
Licensing
How do we get sponsorships
establish linkages
long term relationships may leave legacies
3 year relationship minimum recommended
Why would sponsors not renew a contract
Sponsor management or market conditions may change
Reduction in the impact of sponsorship
Why are there alcohol sponsorships
Sports fans drink BEER
Both men and women consume alcohol during sports and peak at ages 18-29
Seen as a lesser evil than tobacco
What is the Title Sponsor
Name integrated into event
has input in event organization
can result in increased costs
What is the Presenting Sponsor
Usually pay 1/2 to 1/4 of what the Title sponsor pays
Given rights to associate in a specific product category
Will try to narrow categories to increase number of sponsorships possible
(Fishing competition presented by Diet Mtn Dew)
What is the Official Sponsor
Pay 10% of the title fee
Are part of the product categories that are not reserved by presenting sponsors ( Bass pro shop the official sponsor while Mtn Dew is the presenting sponsor)
What is the Official Supplier
Do not have an obvious link to the event
Offer goods or services to organization staging the event
Coleman fixing peoples ovens at the NASCAR race
How should Sponsorships be priced
Use benefit packages no adding or removing perks from each package
Always present the most expensive option first
Most of the fee should be paid upfront because the sponsor will reap benefits before the event happens
What are the issues in a sponsorship agreement
Offical status (sponsorship categories)
Sponsorship fee (how much, refundable)
Title rights (how does the sponsors name appear)
TV Exposure (Right of first refusal for advertising, NFL sponsored by coke, but Dallas team sponsored by Pepsi)
What are the quantifiable sponsorship impacts
Duration of television coverage
Duration of radio mentions
Press coverage column (in inches)
Calculate and assigns a dollar value based on the rate paid
What are the qualitative sponsorship impacts
attractiveness of the media coverage
quality of media coverage
amount of clutter
Not many companies actually pay full price for an ad
Assumes that time of exposure adds up to equivalent commerical spot
Impact of Sponsorship on Awareness
nobody actually remembers who sponsors an event
Market leaders are often given the credit (thinking NIKE sponsored an event when it was actually UA)
How is a Geographic area established
Province, region, city
Usually reflects the funding source
Displaced spending- spending that would occur in that area anyway (\
How do we analyse economic impacts
Estimate the attendance to an event
Survey attendees to find spending associated with the event
What is the Multiplier
The degree to which spending induces an additional round of spending
(fries equals thirsty, so you buy a drink)
(buying beers with the bros equals you buy more beers with the bros and a taxi home)
What is the Income Approach
Total payments to workers and suppliers in an industry
(apply the multiplier)
Errors at any point in calculation can significantly bias result
What is the substitution effect
If attendees spend more money on an event instead of something else local in the economy
-reallocation of expenditures, does not net increase economic activity
A leisure event may lower local economic impact if there is reallocation of expenditures from other activities that have a higher multiplier
What is time switching
No new economic activity- just changing to when event occurs
Who are casual visitors
Someone in an area for unrelated purposes, but attended event while in town
What are similarities between Time switchers and Casual visitors
can only have $$ over and above what they would have otherwise spent to be counted (more than you planned to spend)
Who are incremental Vistors
Come to the region for the purposes of the event
What is indirect spending
recirculation of $$ in economy after direct spending on the event
What is induced spending
How direct and indirect impacts affect earnings and employment (bonuses etc.)
How does the multiplier work
Helps estimate indirect and induced spending
How is direct spending recirculated (5)
- Other private businesses in the same economy
- Employees in the same economy
- Local government
- Non-Local governments
- Employees, businesses, outside of the local economy (leakage)
What is leakage
Spending that does not remain in the local economy
What are the issues with overestimation
Crowding out (discourages economic activity in the area, new event spending simply supplanting spending that would have otherwise occurred)
Reverse time switchers (people who leave because of the event)
What are the solutions to overestimation
ignore local residents to impact estimates
exclude time switchers and casual visitors
consider costs and opportunity costs
Sum up model (total economic impact= direct spending + indirect spending + induced spending (household level))
What are Mega events
Huge infrastructure costs
Huge operating costs
many estimates are grossly exaggerated, not considering the lack of spending elsewhere
What are intangible benefits
Psychic impact: emotional impact the community receives by hosting
-may be used to justify subsidy to build infrastructure
What is the contingent valuation method
It is a survey methodology
-respondents are asked their willingness to pay an increase in taxes to see increased public good
Examples of contingent valuation method in work
Pittsburgh Penguins in bankruptcy, residents of Pittsburgh willing to pay to keep team running
What are hard taxes
Burden falls on mot or all taxpayers
Hard to implement because typically requires voter approval
What are Soft taxes
Hotel-motel (bed); rental cars; liquor or cigarette (sin); athlete
Easier to levy because born by visitors or a small group
What are bonds
Long term debt instruments that allow local governments to borrow large sums in advance (are repayed over 15-30 yeard to limit a large tax increase)
How do governments collect hard taxes
-primary source of revenue
-other taxes might reduce tax base (move out and find better tax rate)
-Property is immobile so easier to tax
-ability to pay (fancy property, higher taxes)
-A benefit tax (snow removal, sewage)
-Can appeal assesment
What are general sales tax
GST
The greater the area covered by the tax the more revenues generated, and the greater dispersion of the tax burden
What are soft taxes
places burden on smaller group (targeted at non-residents)
Tourist taxes (hotel and car rental tax)
Toured will benefit from infrastructure development, unpredictable tourism can fluctuate
Jock taxes
visiting players pay a tax for work done, defined in terms of duty days, visiting NHL players in alberta pay based on games played (discontinued)
How do we finance debt
city pledges to repay debt obligation
interest costs are paid over length of the repayment period
payments are spread out to reduce the annual tax burden
equitable to tax payers, some people may never use facility paid for it
How are bonds financed
Promise from borrower to pay lender a certain amount of money overtime with interest
-a face value
-a fixed rate of interest
-a maturity date (when bond must be repaid in full)
What is a serial retirement schedule
bonds are sequenced with different maturity dates, so that several bonds get paid off over time (maturity date should neer be longer than the life of project)
What are general obligation bonds
unconditional promise to repay debt
secured through property taxes
Limit on the amount the government can borrow
Come with a low interest rate
Must get approval from a referendum
What are certificates of obligation
Do not require voter approval
unconditional promise to repay
a public hearing is announced
electorate can request a hearing
done when investment is needed quickly or doubts
What is nonguaranteed debt
used due to resistance towards guaranteed debt
Voter approval is not required
Does not affect govt debt ceiling
those benefitting for the project pay for it
government will make up for any shortfall as it could damage cities reputation in investment markets
What are revenue bonds
revenues from the facility’s user pay, pay off debt
no vote required
does not affect debt ceiling
higher interest rate
can only use facilities that turn a profit
may result in higher user fees (Kidstrong)
What are certificates of participation
Intermediate organizations sell a COP to financial institutions
FI delivers funds to IO
IO pays builders to construct facility using COP funds
IO signs lease with Facility operator
FO pays lease fees so IO can conver debt charges on COP
when debt is paid off, title usually transfers to FO
What is tax increment financing
facilitates urban development
increase taxes in redeveloped area used to service debt on the development
tax increment bonds secured by increase in property tax
TIF exist for a set amount of time
(think of ice district)
Advantages of Tax increment funding
no tax increase required
when TIF is dissolved city receives additional tax revenues
Disadvantages of Tax Increment funding
Incremental increases in tax to service debt
risk that development will not occur at an anticipated rate
Community Revitalization Levy
proposed to fund a part of new arena development in edmonton
What are private placement bonds
Private entity that pladges the revenues from the lease/income wll pay off the debt
Dairy queen in a rec center basically
(nothing says healthy living like [dan flipping a blizzard])
Asset backed securitization
Naming rights, concession contracts, corporate sponsorship deals
Future cash flows from these sources essentially ‘sold’ to investors
What is Tort
a private or civil wrong against a person , to property, or to one’s reputation
What is risk
The chance of injury to members or participants, property that you may be responsible for (Loss/damage)
What is Risk management
reducing the chances of injury, damage or loss, by taking steps to identify, measure, or control risks
What is negligence
“behaviour or action which falls below a reasonable standard of care”
What is Liability
when a person or organization is responsible for negligent conduct, which results in compensation (an unreasonable risk)
The four elements of Negligence
1 Duty: responsibility to protect from risk
2 The act: whether or not there is a breach of duty
3 Cause: was the breach the cause of harm
4 Damage: has damage occurred
Doctrine of Respondent Superior
Where an employer is liable for the negligence of an employee
-not liable where employee acts outside the scope of his or her authority responsibility
-gross negligence
Good Smaritan laws
Where a citizen assists an injured party “out of the goodness if their heart” and not due to any duty of care owed
Protected from negligence but not gross negligence
What is governmental immunity
Some public institutions are protected from certain negligent acts
What is standard of care
an exception that an individual will act according to the standards of.a profession
Primary assumption of risk (3)
1 participation is free and voluntary
2 individual consents to risks inherent in the activity, and integral to activity
3 Knowledge of the activity (risk can be implied or expressed in waiver or informed consent)
Reasonable vs Unreasonable risk
Injury due to activity in the event vs Injury due to fan attacking player at event
Secondary Assumption of risk (2)
The persons behaviour contributes to injury
failure to heed warnings
What are warnings and participation forms
- obvious and direct
- specific to the risk
- Understandable by party being warned
- Located at point of hazard, or appropriate time
How is risk managed in sports
PA includes elements of risks
not about eliminating risk but reducing risk
management should not change the nature of activity
risk management is a responsibility of everyone
What are intentional Torts
Disturbance of intangible interests: invasion of privacy and defamation
Interference with person:
Partcipant vs Participant
Criminal assault and Battery
Hazing
What are emploment torts
Negligent hiring: need criminal background check
Negligent supervisor: cant ignore employees
Negligent detention: must discharge unfit employee
First phase of risk management
- Analysis and control
-avoidance
-transference (shift liability)
-retention (accept risks and costs)
-Reduction (reduce exposure to risk )
Second Phase of Risk management
Statements of policy (types of insurance; travel restrictions)
Third Phase of Risk management
Operational practices and procedures
Fourth Phase of Risk management
Implementation of a plan
-risk manager
-employee involvement
-Manual
-information system
-public relations
-monitoring
What is nexus
The core centre of a connection between two or more things (sport and media are not two industries that come together)
What is programming input
Sports viewed as programming that can break through advertisement (will go out of way to watch game)
Who pays who in sports programming
advertizers pay slot fees to media providers, and media providers pay rights fees to sports teams events and leagues
What are the four elements of mass media
Commerical: profit driven
Audience: large heterogenous, anonymous
Content: words sounds images
Organization: the source of content
What are the three research perspectives on mass media
Practice: decision making and production
Text: the form of the product (stream/newspaper)
Audience: who consumes the product
What is media Convergence
a buzzword (clickbait)
Transportation of sports media no longer remains specific to TV or to internet (checking stats during a game)
How does sports benefit the newspaper
Safe ideological content
promotes civic boosterism
Allows newspaper to contribute to civic identity
What are the four types of sports news
Hard news: records, events, points
Soft news: scoops and exclusive (interviews)
Orthodox rhetoric: journal opinion becomes news
Reflexive analysis: critical
Different types of televison codes
Camera angles or phrases
phrases create a narrative connection
A way of watching becomes THE WAY of watching
Why are sports important to broadcasters(good final question)
Ratings: percent of households tuned into a program
Share: percent of TV households w/sets in use at time
- advertising and program sponsorship revenue
- driving subscription penetration (add-ons)
- public-service obligation (free nil)
What are the 3 different values systems
Public looking for what makes something a great place to live
Private looking for financial returns
Potential for friction and frustration
What are the different constraints of the value system
Public: slower process, all must be considered
Private: entrepreneurial, and fast acting
Public investment in private economy
Government give land to promote private development
Priming the pump (give jobs, spring villages around railways)
What the incentives for the Private sector to work with the public sector
Access to land
Low-cost development capital (govt can borrow money at a lower cost)
Zoning and permits
Tax incentives
What are the incentives for the public to work with the private sector
Management expertise
reduced labor costs
adaptability to scale of service
reduced liability risks(responsible of private sector insurance)
What is public sector leasing
Public entity owns facility and leases to a private party
-buyout clauses
-conditions
Leaseback arrangements
Public leases back from commercial sector
-can access equipment without up-front $$$
-construction borne by private sector
What are public sector takeovers
Public takes over private facility
no opportunities for private development
allow public purchase of asset at a greatly reduced prices
What are private sector takeovers
Allows public to pass on burden of operations Think of skydome
What is private sector pump-priming
Developer encourages public expenditure so facility drives up demand and property values (golfcourse by houses)
What is expansion of existing public facilities
Private business invests $$ for renovations, improvements, or expansion
ensure construction is up to agency standards
What are multiparty arrangements
Quasi-government agency created to govern partnership
(special authority or commission)
What are spectators
Attend events
What are viewers
watch through other forms of media
What are competitors
engage in the competitive sport
what are Fitness Participants
engage in activities for fitness reasons
What are nature participants
enjoy being outside, nature & wellness
What is social identity
a persons concept of self (want to maintain a good social image) seek approval, in-group members are similar and out-group as different
What are the determinants of demand
consumer preferences
income
price of the good
“income effect”: substitute purchases
price of other goods
What is the consumer theory model of attendance
Consumer preferences
Economic determinants
quality of viewing
contest characteristics
supply capacity
Motives for watching sports on TV
Fanship (competition)
Learning (learn the sport)
Release (let off steam)
Companionship (with friends)
Filler (fill spare time)
What are the types of loyalty
Player
Team
League
Sport
Temporary fan motivation
bandwaggon jumpers
time constrained
Basking in reflected glory
Cutting off reflected failure
Local fan motivation
Identifies with geographic area
devotion leaves with displacement
Devoted fan motivation
increased degree of attachment
a closer part of sense of self
not entire personality
Fanatical fan motivation
man cave
fan is an important part of self-identification
beyond normal devoted fan
behaviour is accepted by significant others
Dysfunctional fan motivation
primary method of self-identification
may engage in violent or destructive behaviour
interferes with normal life
What is sensation seeking (Zuckerman)
thrill seeking
experience seeking
disinhibition
bored easily
Marginal revenue product theory
how your performance increases profit
Issues with fan support and ticket prices
increased prices due to increased salaries
1. MP increases (they become more productive)
2. Fans increases willingness to pay
FANS DRIVE PLAYERS SALARIES
Issues with allegiance
social identities and group norms
purchase intentions
brand loyalty
brand communities
(coke vs pepsi)
What are the canada and us differences in hockey
US has a positive impact of fighting in hockey
Canadian fans value a quality opponent
US fans turn out to see best players, Canada turns out to see best team
Issues with gender differences in sports
men prefer combative sports
women like to identify as sports fans, but it is not a part of self-identity
men spend more time yapping about sports
Issues with displacement
fans feeling left out of the process
marginalization of traditional fans
seeking new fans at expense of established fans
corporatization of the entertainment product conspicuous consumptions
(diehard fans are being priced out)
