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Chapter 2
Slide 1
Sports and Entertainment Marketing
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Chapter 2
Sports and Entertainment
Means Business
2.3 Business Ethics
2.4 Financial Analysis
Sports and Entertainment Marketing
© Thomson/South-Western
Lesson 2.3
Business Ethics
Goals
 Define ethics.
 Discuss the impacts of unethical
behavior.
Chapter 2
Slide 3
Sports and Entertainment Marketing
© Thomson/South-Western
DO ETHICS COUNT?
 ethics
 a system of deciding what is right or wrong
in a reasoned and impartial manner
 Business should be conducted with
integrity, trust, and fairness.
Chapter 2
Slide 4
Sports and Entertainment Marketing
© Thomson/South-Western
Ethics and Character Matter
 principles
 high standards of rules and guidelines
 character development
 a progression in behavior where people
advance from childish behavior to mature
behavior based on principles
 Young people need good role models.
Chapter 2
Slide 5
Sports and Entertainment Marketing
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 Prepare a 3 minute skit to show what
ethics is.
 be sure you can explain the relevance
 make sure it is appropriate
Chapter 2
Slide 6
Sports and Entertainment Marketing
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BUSINESS BEHAVIOR
 People and businesses should act
ethically while pursuing a profit.
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Slide 7
Sports and Entertainment Marketing
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Seeking an Advantage
 Sometimes it is hard to continue to act
ethically when you observe people
who receive a benefit from acting
unethically.
Chapter 2
Slide 8
Sports and Entertainment Marketing
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When Being Bad Profits
 Only fans can really influence the
behavior of ethically challenged
athletes and celebrities.
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Slide 9
Sports and Entertainment Marketing
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Effective and Ethical
 Good decisions are both ethical and
effective.
 Good decisions are the right choices for
the long term.
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Slide 10
Sports and Entertainment Marketing
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 How can the bad behavior of celebrities
be controlled?
Chapter 2
Slide 11
Sports and Entertainment Marketing
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Lesson 2.4
Financial Analysis
Goals
 Discuss sources of funding and
revenue for sports and entertainment
businesses.
 Describe four tools for financial
analysis.
Chapter 2
Slide 12
Sports and Entertainment Marketing
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IT TAKES MONEY
 Profit is the primary purpose of sports
and entertainment marketing.
Chapter 2
Slide 13
Sports and Entertainment Marketing
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Finding Funding
 Investors generally provide the funding
for an event to cover all the costs that
must be incurred before tickets are ever
sold.
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Slide 14
Sports and Entertainment Marketing
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 return on investment
 the income from a venture that is
distributed to investors
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Slide 15
Sports and Entertainment Marketing
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Money Sources
 Funds to repay investors are raised
through
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
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ticket sales
broadcast rights
licensing
facilities
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Slide 16
Sports and Entertainment Marketing
© Thomson/South-Western
 Name three sources of revenue from
sports and entertainment.
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Slide 17
Sports and Entertainment Marketing
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WHERE IS THE MONEY?
 forecast
 a plan that predicts the expenses to be
incurred and the revenues to be received
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Slide 18
Sports and Entertainment Marketing
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BUDGETS
 budget
 a plan for how available funds will be spent
 The purpose of a budget is to control
costs so they do not exceed the funds
available.
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Slide 19
Sports and Entertainment Marketing
© Thomson/South-Western
Financial Statements
 balance sheet
 net worth = assets – liabilities
 shows net worth at a specific point in time
 income statement
 shows revenues and expenses for a
specific period of time
 reveals company’s profit or loss
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Slide 20
Sports and Entertainment Marketing
© Thomson/South-Western
 What is the purpose of a forecast?
Chapter 2
Slide 21
Sports and Entertainment Marketing
© Thomson/South-Western