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chapter
6
Sport Management
and Marketing Agencies
Mark A. McDonald, William A. Sutton
Introduction
• A sport management and marketing agency is a
business that acts on behalf of a sport property
• Sport property can be
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A person
A corporation
An event
A team
A place
A concept
(continued)
Introduction (continued)
• Actions undertaken may include
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Representation
Negotiation
Sales
Licensing
Marketing
Management
Functions
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Client management and representation
Client marketing and product endorsement
Event creation and development
Event management and marketing
Property representation and licensing
Television development and production
(continued)
Functions (continued)
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Sponsorship solicitation and consulting
Hospitality management services
Grassroots and participatory programs
Research evaluation
Financial planning and management
Client Management
and Representation
• Represents a client in contract negotiations
and marketing decisions
• Negotiations may be between
– player and team
– license and licensor
– product and endorser
(continued)
Client Management
and Representation (continued)
• Functions involve
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Financial planning
Investment and management
Marketing
Personal appearances
Other forms of revenue production and management
Client Marketing
and Product Endorsement
• Involves the agency in the promotion and
total marketing of the client
• For athletes
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Endorsement opportunities
Product endorsement
Personal appearances
Book contracts
Interview and feature stories
Event Management and Marketing
• Involved in activities such as
– Golf and tennis tournaments
– Festivals
– Bowl games
• Functions include
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Tournament operations
Hospitality and entertainment
Sponsorship and ticket sales
Licensing and merchandising
Television production, public relations, promotion
Property Representation
and Licensing
• Property can be a facility, event, team,
athletic program, band or concert tour, and
so on
• Functions include
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Sales of rights fees
Promotional licensing opportunities
Sponsorship sales
Signage and advertising agreements
Endorsements
Television Development
and Production
• Agencies have recognized the opportunities
that television presents
– Cable
– Satellite
– Pay-per-view
• Example
The emergence of 12-team conferences has resulted
in lucrative markets for televised conference
championships
Sponsorship Solicitation
and Consulting
• The most common functions are the
solicitation and securing of corporate
sponsorships
• Particular properties may assist in
achieving corporate goals and objectives
Hospitality Management Services
Functions include
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Transportation and other logistical issues
Menu and food service planning and management
Corporate sponsor entertainment
Special auxiliary event creation and management
Housing
Awards, gifts, and recognition programs
Grassroots
and Participatory Programs
• Designed to build a following
• Essential to long-term growth
• Mostly aimed at children and adolescents
who are potential consumers in the future
• Often targeted to certain demographic
groups and ethnic markets
Research and Evaluation
• Research is critical to success and aids
decision making
• Forms of research
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Mail surveys
On-site surveys
Personal interviews
Pre- and posttest event impact analysis
Focus groups
Financial Planning and Management
• Highly specialized service involving
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Accountants
Financial planners and advisors
Investment specialists
Portfolio managers
• Few agencies specialize in this type of
service
Types of Agencies
• Full service
• General
• Specialty
• In-house
Full-Service Agencies
In-house personnel perform a full range of
services
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Client management
Event creation
Television development
Sponsorship solicitation
Hospitality services
Research and evaluation
Financial planning
General Agencies
Uses an integrated approach in the
development of client programs
• Marketing and representation of athlete, coach, or
broadcaster
• Team and venue services
• Corporate consulting and property marketing
• Hospitality and event management
Specialty Agencies
Specializes in the types of services it provides
or in the scope of its clientele
• Sponsorship and event marketing
• Event management and hospitality
In-House Agencies
Departments of companies that perform many
sport marketing functions on behalf of the
products and divisions of the parent
company
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Brand or product managers
Advertising departments
Public relations departments
Community affairs departments
Careers Within an Agency
• Typically hire experienced people
• Degree
– Business degree with a marketing background is
preferred
– Sport management degree with several electives in
business is desirable
– Advanced degrees in business, law, or sport
management are an advantage
• Skills
Figure 6.2—organizational, technical, people
Challenges Facing Agencies
• In-house versus outsourcing
Control in generating more income and cutting expenses
• Conflicts of interest
Agency under contract of an athlete and several teams
• Mergers and acquisitions
Trend toward aggressive mergers and acquisitions
• Labor unrest
Downfall of a strike
• Legislative and judicial review
Elimination of tobacco and alcohol signage