MKT 372 - Revenue Generation and Finance in Sport Business (Winter 2015)

College of Business

Time:  Online (including Collaborate)

Instructor:  Tim Morgan M.S.A. (Sports Administration)  

Location:  Online Course                         

Office:  Maryland (Eastern Time Zone)

Phone:  (253) 327-4658 (Available hours are from 3pm to 6pm Pacific Time during week nights and from 9am to 6pm Pacific Time on weekends).  

E-Mail: TMorgan@cwu.edu Note: Please use your CWU e-mail address through the Canvas system on all correspondence whenever possible. I will respond to your e-mails and phone calls within 24 hours from the time that I receive them.                                                       

 

Required Text:

Howard, Dennis R. and John L. Crompton (2013). Financing Sport.  3rd Edition.  Morgantown, WV: Fitness Information Technology.  Textbook available in the CWU Bookstore or the E-book is available for purchase at Catalog Course Description http://fitinfotech.com/FinancingSport3rdEdition.html

 

Catalog Course Description

 

MKT 372. Revenue Generation and Finance in Sport Business (5). Prerequisite, admission to the major & MKT 362. Examination of historical and current practice in revenue generation and financing of sport organizations, including public and private sources of revenue.

Expanded Course Description

This course will examine theories, strategies and techniques used in the securing, producing, maintaining, and growing of revenue for sport organizations and facilities.  Revenue sources include conventional sources of sport facility and program revenues (e.g., tax support, bonds, tickets, media, concessions, licensing) and innovations (e.g., IPOs, seat licenses, naming rights).  Emphasis will be placed on developing balanced, multi-faceted revenue streams that target a variety of sport industry constituencies.

 Course Objectives

 After completing this course, students should have:

•  Historical perspective and understanding of current practice related to revenue generation for sports facilities and organizations.
• An understanding of the use of public subsidies as sources of revenue for sports facilities and organizations.
• An understanding of the private revenue sources available to sports facilities and organizations, including ticket sales, fundraising, concessions, licensing, media rights, sponsorship and naming rights.
• The ability to develop, implement and evaluate revenue streams available to an existing or new sport facility or organization.

Course Organization:

You will be successful in this course with joint effort. My goal is to stimulate your interest in this topic, help you learn the various components of this topic, and share my personal industry experiences with you to demonstrate real life situations. You should be prepared to analyze and share the concepts learned.  You are encouraged to ask questions, actively participate in online discussions, and provide comments on the readings and lectures.  The textbook will be used as resource material and support the lectures, however, it will not be rehashed throughout the term.  The textbook includes a lot of statistical data, however, the goal should be to learn the theories and concepts presented versus memorizing the statistical data.  You will be responsible for knowing material from the required readings and video presentations.  The online class will focus on current events, case analyses, and online discussions.  During the term, I will provide you with access to some sports industry professionals in order for you to ask them questions and gain additional information about this topic.

Course Requirements:

Individual:

Quizzes/Exams.  Weekly quizzes will consist of objective and short answer questions along with multiple choice questions.  Material from the textbook reading, other assigned reading, and assigned videos to watch will be considered relevant for the quizzes and exams. The quizzes and the two exams (mid-term exam and final) will be worth 30% of the course grade.

Case Analyses.  Students (individually) will write an 8 to 10 page analysis for each of the two case studies covered in class.  Both case assignments together will be worth 60% of the course grade.

Participation.  Online class participation is a critical component of this course.  Much of the learning in this class will occur from online discussions amongst each other involving the various theories and applications of the marketing and finance tools.  We can all learn from each other’s experiences and insights. Lack of online participation will limit your learning.  Students must be prepared and willing to discuss what they have learned throughout the duration of the course.  Course Participation is worth 10% of the course grade. 

**Principles of good writing and public speaking should be used when completing all assignments.  Writing errors (bad grammar, misspellings, poor structure, etc.) may result in a reduction in final grade of up to 20% of the available points.

All late assignments will lose 20% per calendar day.

Individual:

2 Case Analyses.  Students (individually) will write an 8 to 10 page (double-spaced) analysis for each of the two cases presented.  Both case study assignments together are worth 60% of the course grade.

Grading:

All courses within the College of Business are structured on the 100 grade point scale. Consequently all material including papers, quizzes, exams, online participation, etc. sum to a total of 100 pts.  Consistent with being an upper level business course, average work will be scored as a C.  Average work includes submitting assignments that meet stated assignment criteria, but lack greater than average insight or analysis.  Grades of A and B are reserved for above average and outstanding work.  Grades will be assigned on the following scale: 

                         98-100%= A+                         80-83% =B-

                        93--98% = A                           77-80% =C+  

                        90-93% = A-                           73-77% =C

                        87-90% = B+                          70-73% =C-   

                        83-87% = B                             60-70% =D

                                                                        <60%   =F

 Course Policy on Exams and Assignments:

All students are required to take each quiz and exam during the week specified on the syllabus.  If, for some compelling and unforeseen reason, a student is unable to take an exam during the specified time, he/she must notify me prior to the exam at (253) 327-4658 or at TMorgan@cwu.edu

Plagiarism and Cheating:

All work in this course must be completed in a manner consistent with the CWU Code of Conduct on plagiarism, cheating, sexual harassment and diversity (See CWU Catalog Appendix A & B).  The course will be taught in a manner consistent with the CB Honor Code, “As College of Business students we pledge to uphold these standards of professionalism and conduct ourselves in accordance with them. We will not lie, cheat, or steal, and will not tolerate those who do. Our behavior defines who we are and what we will become.”  Any instance of plagiarism or cheating will result in the student(s) flunking the course.

Disability Accommodations

Any students with disabilities who need accommodation in this course are encouraged to speak with the instructor as soon as possible to make appropriate arrangements for these accommodations.

 Reading Discussion/Class Participation 

Class Participation and Discussion will be graded on the following rubric,

A=student is well prepared, is able to accurately identify and apply information from the readings in relevant course discussion, actively participates in online discussions.

B=student is prepared, demonstrates above-average proficiency in being able to identify and apply information from the readings in relevant online course discussion, actively participates in online discussions, makes modest contributions.

C=student has read required material before class and is able to accurately identify information from course readings; participates in online discussions in a limited fashion; student is “on-task” in all in-class activities/exercises.

D=student is not well prepared for class, has trouble accurately identifying relevant information from online course discussions, little or no valuable online contribution to the group, evidence of being “off-task”.

F=student is unprepared for class, no evidence that readings have been completed; little to no online discussion contribution, student “off-task”.

Please note: If you will be late in submitting work for a project or will miss taking a quiz or exam for an unexpected reason, please notify me so that alternate arrangements can be made for you. 

MKT 372:  Case Analysis

Each student (individually) must complete two written assignments in this class.  The first assignment is a case available through the Harvard Business School titled, CEOs with Headsets. The second study is also a case available through Harvard titled, San Diego Padres: PETCO Park as a Catalyst for Urban RedevelopmentNote: Both of these case studies will need to be purchased through the Harvard site at http://hbsp.harvard.edu for a minimal cost of $6.93 each.

  1)    CEOs with Headsets by Andrew Zimbalist

Description: Economist Andrew Zimbalist explores the disconnect between colleges in fiscal crisis and the ballooning salaries of those college's football coaches. Many argue that market forces dictate the steep salaries in college athletics, but Zimbalist's research finds that the high pay does not correlate to performance and in fact it makes no economic sense. Colleges should rethink how much they're willing to give these CEOs with headsets.

Subject Covered: Executive compensation

For the CEOs with Headsets Case (Due Friday, February 13) students should use case data and relevant course material to develop and support a view on this topic. Students should propose a specific, detailed hiring plan as if they were an Athletic Director at a major university in which the President of the university asked them to keep department expenses down.

2)    San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment

Description:

In 1994, John Moores purchased the San Diego Padres baseball team. The team shared Qualcomm Stadium with the San Diego Chargers football team, which was the senior tenant and received a far higher share of stadium revenue than the Padres. As a result, the Padres' ability to support the payroll needed to field a competitive team was severely limited. The solution was to build a new ballpark for the Padres in a blighted area of downtown San Diego. Redevelopment of the blighted area was integrated into the ballpark construction project, with the Padres owner having the responsibility of being the master developer, and for guaranteeing increased tax revenues from the redevelopment. Typically, sports team owners had sought public funding of their new stadiums, promoting this with the expectation that the new stadium would catalyze other development-an expectation that was often not met. There were many obstacles that had to be overcome, including a 16 month halt in construction. The case describes the project, the role of the Padres, the City of San Diego, and other players.

Subject Covered: Facilities

For the San Diego Padres: PETCO Park as a Catalyst for Urban Redevelopment students should use data and relevant course material to develop and support a view on this topic.  Should cities invest in these expensive venues and will the stadiums provide long-term economic benefits for the city and region?  Should taxpayers help pay for these venues or should the teams and players pay to build them?

All responses should be strongly supported with relevant course theory and or concepts.  Failure to support your responses theoretically will result in no more than 50% of possible points being awarded.

 Your written analysis is limited to no more than 10 double-spaced (five single-spaced) pages.  Principles of good writing should be used when completing these assignments.  Writing errors (bad grammar, misspellings, poor structure, etc.) may result in a reduction in final grade of up to 20% of the available points.

Tentative Course Schedule (Subject to Change): Additional reading material and videos will be introduced to you throughout the term on the Canvas site that are not listed here.

 

Week	Dates	Topics	Assignment
1	Week Jan 5	Operating in the New Economic Reality	-Read syllabus and send email confirmation -Purchase the textbook or e-book -Read Chapter 1 -Watch PowerPoint on Chapter 1
2	Week Jan 12	Challenges Facing College Sports   Challenges Facing Professional Sports	-Quiz on Chapter 1 -Read Chapters 2 & 3 -Watch PowerPoint on Chapters 2 & 3 -Conference Call #1
3	Week Jan 19	Trends in Sport Facility Financing   Principles of Economic Impact Analysis	-Quiz on Chapters 2 & 3 -Read Chapters 4 & 5 -Watch PowerPoint on Chapters 4 & 5
4	Week Jan 26	Costs: The Rest of The Economic Impact   Alternate Justifications for Public Subsidy: Structural Capital	-Quiz on Chapters 4 & 5 -Read Chapters 6 & 7 -Watch PowerPoint on Chapters 6 & 7 -Conference Call #2 (Economic Impact Studies)
5	Week Feb 2	The Alternate Justifications for Public Subsidy: Social Capital   Sources of Public Sector Funding   Case: CEOS with Headsets	-Mid-Term Exam on Chapters 1 thru 7 -Read Chapters 8 & 9 -Watch PowerPoint on Chapters 8 & 9       1st Case Due Friday, Feb. 13 by 5:00pm
6	Week Feb 9	Implementation of Public-Private Partnerships   *Revenue Sources From Sports Venues	-Quiz on Chapters 8 & 9 -Read Chapters 10 & 11 -Watch PowerPoint on Chapters 10 & 11 -Conference Call #3 – A conversation with a special guest to be announced at a later date
7	Week Feb 16	*Ticket Sales and Operation   Commercializing Media Rights	-Quiz on Chapters 10 & 11 -Read Chapters 12 &  13 -Watch PowerPoint on Chapters 12 & 13 -Conference Call #4 - A conversation with a special guest to be announced at a later date
8	Week Feb 23	The Sale of Licensed Merchandise	Quiz on Chapter 12 & 13 -Read Chapter 14 -Watch PowerPoint on Chapter 14
9	Week March 2	Open (TBA)	-Quiz on Chapter 14 -Work on Case Study #2
10	Week March 9	Case: PETCO Park as a Catalyst for Urban Redevelopment	2nd Case Due Friday, March 13 by 5:00pm -Study for Final Exam Conference Call #5 (Review for Final Exam)
11	Week March 16	Final Exam Week	-Take Final Exam by Friday, March 20

The above schedule and procedures in this course are subject to change in the event of circumstances beyond the instructor's control.