Introduction to Sports Management | My Assignment Tutor

Introduction to Sports Management – Week Ten Welcome Assessment Update Discussion Forum Complete Module FiveQueensland Premier Annastacia Palaszczukannounced on Tuesday the Gabba will be“essentially demolished” and upgraded to increasecapacity from 42,000 to 50,000 spectators, makingit the centrepiece of the city’s Olympicinfrastructure.Palaszczuk said planned upgrades would alsofeature a plaza linking the Gabba to the CrossRiver Rail Station, which is still under construction,and could be used as a hub for concerts and medalpresentations.Nearby parkland could also be used as warm-upareas for athletes with added facilities. New suburb at Playford: EyreEyre Sports Park has 3 playing fields: Rugby League/Cricket Soccer/Cricket SoccerThe clubrooms will be managed by theEyre Sports Park Association andfeatures three tenant clubs: Central District Rugby League Northern Wolves Soccer Club and the Eyre Royals Cricket Club.Discussion Forum: Provide a photo or image, and a brief summary, of an innovation thatyou like from a sport facility around the world. Post your response at the Discussion Forum. Laureate International Universities https://www.adelaidenow.com.au/news/south ® -australia/dramatic-video-reveals-full-plans-for-second-riverbank-sport-andentertainment-stadium-with-elevating-soccer-pitch/news-story/ee7cad3c82bc77354f5860538bacb558Student Activity: How much would it cost for the stadium that offers both football and rugby(outdoors) and basketball and netball and tennis (indoors)? https://indaily.com.au/news/2021/03/19/questions-over-marshalls-700m-city-stadium-plan-andfunding/?utm_medium=email&utm_campaign=INDAILY%20March%2019%202021&utm_content=INDAILY%20March%2019%202021+CID_2ff82fa5c79aa93e1f094d372d6ab6b6&utm_source=EDM&utm_term=Questions%20over%20Marshalls%20700m%20city%20stadium%20plan%20and%20fundingAssessment Summary AssessmentAssessment TypeLengthDueWeight1Reflective Journal –My Sport Experience1000 wordsEnd of Week 4 – Sun Mar 1420%2Project Proposal for anew sport (Report)1500 wordsEnd of Week 6 – Sun Mar 2840%3Final Report for a newsport1500 wordsEnd of Week 12 – Sun May 940% Assessment 2 and 3 are linked – you need to choose create a new sport, or modify an existingsport, to attract a new market.Assessment Three BriefDevelop the final form of the sport that you have invented including: Introduction to the sport – name, brief concept, season or time of year The target market – who will play this new sport? Mission and/or Vision Statement – what is the purpose of this new sport? Goals and SMART Objectives – how will you establish this sport in the next 3-5 years? Proposed Governance Structure – how would you structure the Board of Management? SWOT Analysis – table format with a minimum of five factors in each of the four segments Risk Matrix Table – potential risks and strategies to minimise them Final Rules including scoring and how to win Equipment and Uniforms required to play and to minimise risks Proposed Competition for the first year including – how many games (team sports) or events (individual sport) in the first year? Venues/Facilities – where will the sport be played and why? Proposed logo and colours (brand) of the new sport The sports position on ethics and social responsibility Proposed Funding Partners – commercial sponsors and government grants Proposed Launch – what event would you coordinate to launch this new sport? Conclusion – convince the reader that this sport has a futureAssessment Three RubricYour assessment should also address the Rubric outlined in theAssessment Brief: Context, Audience and Purpose 10% Knowledge and Understanding 50% Critical reasoning, presentation and defence of an argument 30% Referencing 10%The slides from Modules 1 – 6 are good references but you should alsoinclude the readings provided and websites that you find relevant fromthe sports industry.Subject Overview Module 1Module 2Module 3Module 4Module 5Module 6The Sports IndustryGovernance and RiskSport Marketing and MediaSport Tourism and EventsSport Facilities and VenuesProfessionalism and Ethics Module Five Readings1. Module Five Lecture Slides2. Westerbeek, H., Smith, A., Turner, P., Emery, P., Green, C. & vanLeeuwen, L. (2005). Key success factors of operating sportsfacilities and running sports events (pp. 22 – 45). In Managingsport facilities and major events. Allen & Unwin, Australia.3. Sawyer, T. H. (1999). Programming and scheduling process (pp.53-60). In The Management of Clubs, Recreation, and Sport:Concepts and Applications, Sagamore Publishing, Champaign, IL.4. ADDITIONAL READING: Rossman, J. and Schlatter, B. (2000).Recreation Programming: Designing Leisure Experiences.Module Five Topics1. Types of Sport Facilities2. Facility Planning3. Facility ManagementNext Week:4. Public Funding Sources5. Private Funding Sources6. F&B, Ticketing, ProgrammingDiscussion Forum: What are some of the challenges that managers of sport facilities mustaddress in their daily role?SPO101Module 5Sport Facilities and VenuesThis Module Types of Sport Facilities Facility Planning Facility Management Public Funding Sources Private Funding Sources F&B, Ticketing, ProgrammingThe Sport FacilityWe also see sport facilities in every suburb and country town,serving an important role in society in the provision of sport andrecreation but also a common meeting place to satisfy ourneeds for social interaction and a sense of belonging.The different types of sport facilities include: Multi-purpose Single-purpose Sport Precincts and Institutes High Performance CentresTrends in Facility Design Land is at a premium in capital cities and we are seeing afocus on multipurpose facilities; Multi-configuration is therefore important – retractableroofs, seating, floors to accommodate multiple sports; Facilities for elite sport need to accommodate broadcastingneeds – access, lighting, production space; Indoor arenas and some stadiums are deliberately smallerto create demand for seating (10,000 – 20,000 seats); Spectator comforts – seating, super-screens, wi-fi, foodand beverage options, fan engagement, minimal queues; Open 365 days – function rooms, tours, museums, cafes; At community level – male and female changerooms.Facility PlanningFacility Planning is:“the process by which an organisation envisions its future bylinking its purpose to the strategy of the overall organisation andthen developing goals, objectives and action plans to achievethat future. The result of the facility planning process is thestrategic facility plan”.International Facility Management Association (2009)Facility Planning is similar to the planning processes discussedin this subject but may take longer, and involve different areas ofexpertise, because the end result is a significant asset.Facility PlanningFacility Planning involves a number of steps including: community consultation the feasibility study site selection the design process consulting with architects and engineers seeking funding support and grant applications engaging construction companies building approval.This process is discussed in SPO203 Managing Sport Facilities.Facility ManagementFacility Management is:“maintenance and care of commercial and not-for-profitbuildings including but not limited to sport facilities, includingheating, cooling and ventilation systems (HVAC), electrical,plumbing, sound and lighting systems, cleaning, groundskeeping, security and general operations”.“The goal of facility management is to organise and supervisethe safe and secure maintenance and operation of the facilityin a financially and environmentally sound manner”.Schwarz et al (2015)Facility ManagementThe role of Facility Manager can be a diverse role with avast list of responsibilities depending on the type of facility: Booking, Scheduling and Programming Marketing, public relations and advertising Front of House: Box Office, Ticketing, Customer Service Catering, Food and Beverage, Retail Cleaning, Maintenance and Asset Management Traffic, Parking, Access Human Resources Financial Management Risk Management and Security Safety, first aid and medicalFUNDING AND REVENUEFunding Sources Public Funding (Governments) Debt Financing (loans) Private Funding (Investors/Corporations) Public-Private Partnerships (PPP) Naming Rights, Sponsorship and Advertising Food and Beverage Ticketing ProgrammingPublic FundingFunding for sport facilities is available from the three tiers ofGovernment – Federal, State and Local.It is not unusual to receive funding from two or three tiers whichcan make the funding process complicated and timeconsuming.Funding from Government can be directly allocated to thesport or facility, and Government can also request sportingbodies to submit grant applications. There are manyexamples where the grant process is successful but additionalfunds are required from other sources.Federal Govt. FundingThe Federal Government will fund sport facilities in anumber of ways: Funding for facilities of national significance – MCG. Funding for facilities that will host global events – 2023FIFA Women’s World Cup or 2018 Commonwealth Games. Funding as part of their annual budget cycle, often beforean election. Funding as part of an economic stimulus package, forexample the funding announcements that were madefollowing the 2008 and 2020 recessions.Federal Govt. FundingFootball Federation Australia have requested funding for the 2023 FIFA Women’s World Cupfrom the Federal Government for re-developed facilities. FFA are not expecting new stadiumsor major stadium upgrades but they do need to provide training facilities for 32 teams. A newfacility in Perth will be built for $32.5 million, jointly funded by Federal and WA Governments.State Govt. FundingState Governments will consider funding: Facilities of state significance in the heart of the city. Facilities that may be part of a bidding process tosecure major events. Facilities that are identified for upgrade or developmentin Facility Strategic Plans. Facilities in metropolitan and regional areas that aresuccessful in their grant applications. Facilities that are located in marginal seats prior to astate election.State Govt. FundingIn November 2020, following 112 days of COVID-19 lockdown,the Victorian Government announced funding for newprojects to get Victoria moving again. Marvel Stadium received funding of $225 million for asignificant upgrade to welcome Melbournians to the stadiumon a daily basis. A total of $81 million was shared amongst 5 AFL clubs fortheir high performance centres – Essendon ($6.3m), NorthMelbourne ($7m), Richmond ($15.5m), St Kilda ($16m) andWestern Bulldogs ($36.6m). State Govt. FundingAll State Governments have a grants scheme for state sportassociations and local clubs to consider. The Office forRecreation and Sport offer the following grant programs forfacility development in South Australia: Community Recreation and Sport Facilities Program – Total pool is$4.5 million p.a. Grass Roots Facilities Program – Total pool is $15 million p.a. Regional and Districts Facilities Program – Total pool is $5 million p.a.The funding from grant programs is limited and additionalfunding sources will be required. The other option is to lobbygovernment and highlight the significance of the project.State Govt. FundingFootball Federation SA were able to demonstrate that they needed more football pitches formale and female competitions in South Australia. They requested artificial grass with lightingso that more games could be played. The State Government allocated $19 million in2018/2019 for a new State Centre of Football and an additional $5 million in 2020/21.Local Govt. FundingLocal Governments fund the majority of community sportfacilities and usually own the land associated with the facility.Local Government see the provision of sport and recreationas an important community service, and it is in their bestinterests to maintain these facilities at a high level to satisfycommunity needs.Local Governments may decide to manage these facilitiesthemselves, outsource the management to a privateoperator, or enter into lease agreements with local sportingclubs. Most of our leisure centres, swimming pools andsport clubs have been funded by local government.Local Govt. FundingLocal Governments have less revenue to spend oncommunity infrastructure, and therefore will request additionalfunds from State or Federal Government for sport facilities.It is quite common to see contributions from all levels ofgovernment for the same facility, and those contributions mustbe received before construction can commence.The Campbelltown Leisure Centre in Adelaide, know referredto as ARC – Aquatic and Recreation Centre – was upgradedin 2016. It took 11 years of planning and lobbying to raise the$26 million required.The Local Government (City of Campbelltown) missed out on Federal grants in 2010, 2011 and2012. The State Government committed $3 million in 2013 and the Federal Government finallyconfirmed $7.5 million in 2014, with the City of Campbelltown funding the rest. The ARC has fiveindoor courts, five squash courts, 25m pool, café, crèche, gym, fitness studio and function room.Local Govt. FundingDebt FinancingMany sport organisations, in particular local sporting clubs,find it difficult to attract 100% of funding from government,and therefore need to explore other options.Some government grants expect a contribution from the clubto demonstrate their commitment to the new facility. If clubsdo not have their own savings or a private investor then abank loan is the only option.A bank loan for a re-developed facility is not a negativeoutcome, particularly if the feasibility study demonstratesincreased participation and revenue to pay off the debt.Debt FinancingMany sport organisations, in particular local sporting clubs,find it difficult to attract 100% of funding from government,and therefore need to explore other options.Some government grants expect a contribution from the clubto demonstrate their commitment to the new facility. If clubsdo not have their own savings or a private investor then abank loan is the only option.A bank loan for a re-developed facility is not a negativeoutcome, particularly if the feasibility study demonstratesincreased participation and revenue to pay off the debt.Debt FinancingTea Tree Gully District Football Club were in need of new clubrooms for 5 senior teams and 20 junior teams.They secured funding from Federal Government ($350k) and local government ($350k) but were $300k short.The club secured a bank loan with Bendigo Bank. The larger clubrooms were built, allowing the club to hostmore people and events, and generate more revenue from food and drinks. The loan was paid off in 15years. The successful project has seen the club secure another $900k from government for unisex changerooms and LED lights, and the club will take out a smaller loan of $96,000 to fund the gap.Private Funding SourcesSport is increasingly looking to the private sector for funding ofsport facilities. In the United States and Europe the majority ofsport teams are privately owned, and these wealthy ownersalso invest in stadiums, signing long-term deals with host cities.In Australia private investment in sport is limited, and thosewho do own professional teams are not investing in facilities.Many of our larger stadiums and arenas are state assets.We do see some private investment in sport facilities that arebuilt for commercial reasons – golf courses and resorts,exclusive gyms and health centres, learn-to-swim schools, andindoor sport centres like Bounce, AFL Max and Action.Action Indoor Sports StadiumsAction Indoor Sport Centres own and operate 15 facilities across ACT, QLD, SA, TAS and VICand offer the indoor versions of cricket, dodgeball, netball, soccer and volleyball. Theircompetitions cater for mens, womens, juniors, masters, corporate and mixed teams.Public-Private PartnershipsWe also have examples where the private sector andgovernment will both contribute funds to a specific project.A public-private partnership (PPP) or joint venture (JV) isa business tool for building and managing public infrastructureand is governed by an agreement between the levels ofgovernment and the private sector, to finance and deliverprojects that have a public benefit, such as sport or recreationinfrastructure.This arrangement allows both parties to benefit – thegovernment is seen as delivering vital services and the privatesector can profit from their investment.Public-Private PartnershipsExamples of PPP include new land releases, where thegovernment will release land to a developer for housing, and thedeveloper is expected to fund community infrastructure includingopen space, trails and sport facilities.In regional communities or mining towns like the Pilbara (WA,left) and Roxby Downs (SA, right), the mining company (Rio Tintoor BHP) will contribute to government funding for sport facilities tosatisfy the needs of their workforce and their families.Private Funding SourcesOnce the sport facility is open for business Facility Managersneed to be creative in their attempts to attract private investment.Investment from private sources may help to off-set futuremaintenance and operational costs, or allow the facility to redevelop its infrastructure or offer a new program.Some of these private funding options include: Naming Rights sponsorship Other sponsorship, advertising and signage rights Food and beverage rights Exclusive seating – Corporate suites, VIP seatingNaming Rights SponsorshipLarger stadiums and arenas that host major events and attractmillions of people to the facility are attractive marketing toolsfor large corporations.Many of these facilities now have a ‘naming rights’ partnerwhere the name of the corporation becomes the name of thestadium or arena.Optus signed a $50 million, ten year deal with the new PerthStadium to become Optus Stadium, home to AFL and cricket.Naming Rights SponsorshipAdopting a new name for the facility can create ‘identity’ issuesfor the facility, particularly if the corporate partner oftenchanges. Docklands Stadium in Melbourne has been namedColonial Stadium, Telstra Dome, Etihad Stadium, and iscurrently Marvel Stadium.Some stadiums, like Adelaide Oval, have legislation in placeto prevent naming rights, with the state government deciding toprovide the City of Adelaide with the marketing benefits.One way to overcome this is to accept sponsorship for variouszones or features within the stadium, for example the TelstraPlaza at the southern end of Adelaide Oval.Naming Rights SponsorshipSecuring the naming rights partner early in the design or construction phase allows the branding ofthe corporate partner to be integrated into the stadium. The new multi-purpose stadium in Atlanta,Georgia secured Mercedes Benz who signed a long-term, 27 year, US$324 million contract.Sponsorship, Advertising, SignageSport facilities have multiple spaces to accommodatecorporate partners and commercial advertising, all of whichgenerate revenue for the facility.Plazas, precincts, zones, function rooms, restaurants and barscan all be re-named to satisfy a willing corporate partner.Each space needs to have a value attached to it.Corporate partners will have different budgets and priorities– some will consider naming rights or advertising throughoutthe facility, others may be seeking signage in a prominentlocation that encourages a purchase or change in behaviour.Advertising of road safety campaigns near bars and bathroomsis common in sport stadiums.Sponsorship, Advertising, SignageAdvertising and signage is possible throughout the facility, from the fencing,scoreboards and goal-posts to the bathrooms, food stalls and playing surface.Any piece of infrastructure that is visible to the public eye is an attractiveasset for the Facility Manager – if it can be seen then it will attract sponsorshipor advertising.The introduction of LED signage to sport facilities, in place of the traditionalfixed signage, allows multiple sponsors and advertisers to be recycledthroughout the game.Sponsorship, Advertising, SignageWhat are the positives and negatives of replacing traditionalfixed signage with new LED signage?Sponsorship, Advertising, SignageClean StadiumsLarger stadiums and arenas that are hosting major eventsneed to be prepared to be ‘clean’.A clean stadium means that all existing sponsorship,advertising and signage can be removed for the next event,which may have its own corporate partnerships in place.The MCG considers Coca-Cola to be one of three iconicpartners, but if the MCG is chosen as a venue for the nextFIFA World Cup, sponsored by Pepsi, then it is highly likelyall Coca-Cola branding will need to be removed. The contractbetween the MCG and Coca-Cola would need to consider this.Clean StadiumsWhen Australia hosted the Asian Cup in 2015 it needed to deliver clean stadiums around Australia.GIO Stadium in Canberra became Canberra Stadium, Suncorp Stadium in Brisbane becameBrisbane Stadium, and AAMI Park in Melbourne became the Melbourne Rectangular Stadium.Food and Beverage RightsIn addition to naming rights and signage rights, the Food andBeverage (F&B) rights at large stadiums and arenas are oneof the more valuable assets available for sale.Most people see a sporting event as a unique experienceand will seek food and beverage as part of the experience.From the stadium’s perspective, they have a capturedaudience, and they know that the general public will purchasefood and beverage if it is accessible and affordable.Premium packages are also available for those who prefercorporate boxes, VIP functions and exclusive seating.Food and Beverage RightsThe Food and Beverage (F&B) rights can be divided intoproduct categories and sold to the highest bidder: Pastries (pies, sausage rolls) Hot Dogs Tomato sauce, mustard Cakes or Donuts Potato Chips Chocolate Confectionary Ice Cream Sugar, salt Beer and Cider Wine (red, white) Champagne Spirits Juice Flavoured Milk Soft Drink Bottled Water CoffeeFood and Beverage RightsStadium and arenas will often prepare and serve theseoptions on behalf of the supplier.The other option is to bring in vendors for each event andoffer more variety or even a gourmet selection – Italian pizza,Indian curry, Greek yiros, American burgers (and fries).Either way, the facility needs to be designed to accommodatethese options, and the facility will generate revenue fromselling the rights and selling the products.Food and Beverage RightsOver time the food and beverage experience becomes part ofthe fabric of the facility and the sport.Wimbledon is known for its strawberries and cream,Baseball fans prefer a hot dog with mustard and in Australiait’s the meat pie with sauce at the footy.These preferences and traditions allow Facility Managers toseek a premium when selling the F&B rights. Companies thatproduce meat pies – Balfours, Four‘n Twenty, Mrs Macs –will pay significant money for the exclusive rights. Profits fromthe sales are then shared between the facility and producer.F&B OutletsGeneral principles for F&B outlets at sport stadiums: conveniently located – patrons should be able to reach anoutlet in 40 to 60 seconds; large open spaces for access and consumption; allow the aroma of food and drink to be dispersed; bright, colourful, well-lit, and advertise the F&B on offer; well-organised with clear indications of where the patronsshould line up for service; designed so that items can be quickly served by a singleperson in each outlet.Seating CapacityThe seating capacity is critical to any sports facility – itdictates the size of the crowd, the price of the ticket, thepotential F&B sales, and ultimately the revenue for the facility.There is an increasing expectation that stadiums and arenasare fully-seated – every fan is allocated a seat for the game.This has a number of benefits: Reduction of risk – no standing room or congestion Better crowd control and security monitoring Creates demand for every seat – every seat has a value Sets a maximum limit which helps with F&B provision.Types of TicketingThe seating capacity is critical to any new stadium design orre-configuration, and ticketing of all types must be considered: General Admission (seated or standing) Reserved (for one game) Season Ticket (reserved for the season) 3-game or 5-game packages Complimentary tickets (promotion) Concession (student, pension) Disability Access Areas Club officials, past players and families Media VIPsTicketing ConsiderationsOther considerations include: Members v Non-members Home Team v Away Team Exposed v Undercover Prime view v Obstructed view Comfort levels (plastic v padded seating) Other luxuries (cup holder, USB port, interactive screen)Sport facilities need to be seen as affordable, offering thecheapest GA ticket possible, but also luxurious to attractcorporate partners and VIPs in corporates boxes.Class ExerciseCheck out the configuration of your favorite stadium to see howthey have allocated the seating capacity.Seating Plan and TicketingThe seating plan will change for every sport event – watchingcricket at the MCG is different to watching AFL.The home club takes priority and will have their own demands,based on the needs of their membership and corporate partners.Professional sport teams will usually take responsibility for sellingmemberships and corporate packages.GA tickets and other packages are usually outsourced toTicketek or Ticketmaster who have the software and capabilityto be selling tickets to multiple events at the same time.Programs and VisitorsConsumers will only purchase tickets, memberships, food andbeverage if the facility has what they need – sport experiences.Sport facilities need programs that are consistent withcommunity needs. Many sport facilities have a 365 philosophy– they need to be open for business all year – and capturethe different markets that exist.Facilities that are dormant, with no programs or visitors, areconsidered white elephants – a possession that cannot bedisposed of and whose cost, particularly that of maintenance,is out of proportion to its usefulness.Programs and VisitorsThe weekly schedule or calendar of events is critical to anysport facility – it generates the traffic and revenue needed tosustain the sport facility, and allows the facility to invest instaff to manage and operate the facility and provide theexperiences people are looking for.The schedule or calendar also provides a plan for theoperations and maintenance teams – they need to knowwho will be using the facility and when.The most sustainable facilities are providing a combinationof sport programs and competitions, major events, functions,tours, education programs and tourist experiences.365 PhilosophyAdelaide Oval is known for AFL and Cricket but its otherprograms and attractions engage visitors 365 days of the year: Stadium Tours Bradman Museum Education Centre Roof Top Climb Stadium Golf Five Regions Restaurant Café and Microbrewery Function Rooms and Bars New hotel with 138 rooms365 PhilosophyAdelaide Oval has employed a Tourism Manager to develop programs like the Commonwealth BankRoofClimb and stadium tours for tourists. Adelaide Oval was the first facility in the southern hemisphereto create the roof climb, and people pay $109 each for the 360 degree views, or $119 at sunset.Program Development CycleRossman and Schlatter’s (2000) program developmentcycle, on the next slide and discussed in Module 4, outlinesa process for developing new programs.Learn to Swim programs, netball competitions, daily tours,school visits and corporate functions all need to be createdand are the lifeblood of sport facilities.Any space that is empty, under-developed or under-utilisedshould be considered as the home of your next program!The challenge is to integrate new programs with the existingsport that is played at the facility. Other Scheduling IssuesFinalising the program or schedule for the facility can taketime and other issues need to be considered: The seasonality of sport Sharing of facilities (multi-use facilities) Home and Away balance Marquee games Training demands v actual competition Rest and recovery time Maintenance schedules Legal Contracts (eg broadcasters, player contracts) Avoidance of global events (eg Olympics) School and public holidays, community ritualsReferencesInternational Facility Management Association (2009) Strategic FacilityPlanning. Available at: https://www.ifma.org/publicationsRossman, J. and Schlatter, B. (2000) Recreation Programming: DesigningLeisure Experiences, Sagamore Publishing: USA.Schwarz, E. Hall, S. & Shibli, S. (2015). Sport Facility OperationsManagement – A Global Perspective. Routledge: New York.Available at:https://ebookcentral-proquest com.ezproxy.laureate.net.au/lib/think/detail.action?docID=2057963