professional sports. big league sports top 10 sports in the world #10 american football – 400...
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PROFESSIONAL SPORTS
Big League Sports
Top 10 Sports in the World
• #10 American Football– 400 Million fans• Half come from the US and Canada
– Evolved from rugby in late 19th century• Mainly a club or collegiate sport
– NFL established in 1920– No teams outside of North America
Source: http://www.top10zen.com/most-popular-sports-1584
Top 10 Sports in the World
• #9 Basketball– 400 Million fans– Developed in America in the late 19th century
• Originally dominated by Americans• Slowly spread throughout the world
– Growth spurred by urbanization– International leagues in Greece, Israel, Japan– Top talents from
• Germany – Dirk Nowitzki• France – Tony Parker• Spain – Pau and Marc Gasol• Canada – Steve Nash
Source: http://www.top10zen.com/most-popular-sports-1584
Top 10 Sports in the World
• #8Golf– 450 Million fans– Dates back to 13th century– Home of origin – Old Course at St. Andrews – has
been used for the last 500 years– Indirect nature of competition creates a lack of
conflict or perceived competitiveness– American players have dominated sport• Asian countries are beginning to catch up
Source: http://www.top10zen.com/most-popular-sports-1584
Top 10 Sports in the World
• #7 Baseball– 500 Million fans– Developed in England from the game of rounders– One of the longest-standing codes of play
• Major rules have not changed since 1901
– National League founded in 1876– Direct competition of single players – the batter & pitcher – within
a team sport– Global appeal
• Leading spectator sport in Japan• National sport in a number of Central and South American countries• Cuba won numerous Olympic golds• Japanese won 2-of-3 World baseball Classics
Source: http://www.top10zen.com/most-popular-sports-1584
Top 10 Sports in the World
• #6 Table Tennis– 850 Million fans– Hugely popular in China and gaining acceptance in
Europe– Been around for less than a century– Attractive because of ease of play and inexpensive
equipment– International play dominated by the Chinese,
particularly the women
Source: http://www.top10zen.com/most-popular-sports-1584
Top 10 Sports in the World
• #5 Volleyball– 900 Million fans– Played around the world– Simplicity of play and flexibility of what kind of playing
surface has made game wildly popular– Introduced into Olympic Games in 1964
• Pretty evenly matched over the years with numerous countries winning medals and no one country dominating
– Beach volleyball introduced as Olympic sport in 1996• Dominated by the American and Brazilians
Source: http://www.top10zen.com/most-popular-sports-1584
Top 10 Sports in the World
• #4 Tennis– 1 Billion fans– Top ranking solo competition– Dates back before the 14th century• Modern rules written mid 19th century
– World appeal as no single player or country has truly dominated sport• Last 10 years, #1 ranking held by
14 different players representing 8 different countries
Source: http://www.top10zen.com/most-popular-sports-1584
Top 10 Sports in the World
• #3 Field Hockey– 2 Billion fans– Developed independently in Europe and Asia in the 3rd
century B.C.– Modern rules developed in the 19th century England– Dominated by India & Pakistan mid 1900s– Now Australia & the Netherlands a major force– Viewed as a female-dominated sport
in US, across the globe it is male-dominated
Source: http://www.top10zen.com/most-popular-sports-1584
Top 10 Sports in the World
• #2 Cricket– 2.5 Billion fans– Thanks to the British Empire, this sport has spread
across the globe– Played as far back as the 16th century, modern rules
developed in the early 1700s– Large teams and long games –
sometimes up to 5 days in length – England, India, Australia, South
America top teamsSource: http://www.top10zen.com/most-popular-sports-1584
Top 10 Sports in the World
• #1 Soccer– 3.5 Billion fans– Simplicity of the sport and the ease of play make it the
most popular sport in the world to play and watch– Versions of a game kicking a ball towards a target have
been around for centuries• Mid-19th century modern rules developed
in England
– No particularly powerful clubs• Dozens in contention for international
and top-league titles every year
Source: http://www.top10zen.com/most-popular-sports-1584
Soccer• 260 million participants worldwide• Truly global appeal
– National, cultural, religious, gender, class• Federation Internationale de Football Association (FIFA)
– $700 million annual income– 2014 World Cup most widely viewed sporting event in the world
• 715.1 Million people watched final match on TV• 3.2 Million attended one of 64 games
• Highest paid soccer players in world3. Zlatan Ibrahimovic, PSG ($40.4 million)2. Lionel Messi, Barcelona ($64.7 million)1. Cristiano Ronaldo, Real Madrid ($80 million)
Top 10 Sports in the USA
10. Martial Arts 9. Wrestling 8. Motor Sports 7. Golf 6. Tennis
5. Soccer 4. Hockey 3. Basketball 2. Baseball 1. Football
Source: http://www.therichest.com/sports/most-popular-sports-in-america/ /
Financial Impact
• Most valuable NFL football teams5. Houston Texans ($1.85 billion)4. New York Giants ($2.1 billion)3. Washington Redskins ($2.4 billion)2. New England Patriots ($2.6 billion)1. Dallas Cowboys ($3.2 billion)
Financial Impact
• New Dallas Cowboy Stadium (2009)– Originally estimated to cost $650 million, actual cost
$1.15 billion• Financed through approved sales tax increases by the city of
Arlington; $325 million from city of Arlington (bonds); $150 million NFL loan; over runs paid by Jerry Jones
• One of the most expensive sports venues ever built– Seats 80,000 (110,000 including standing room)
• 3rd largest NFL stadium– AT&T Naming Rights Deal
• $17-$19 Million/year for 20 years• City gets 5% to help offset cost to build
Cowboy Stadium
• Since opening, has hosted:– Super Bowl XLV (2011)– NBA All-Star Game (2010)
• Highest attended basketball game in history
– Big 12 Championship Game (2009, 2010)– Cotton Bowl (2010-2012, 2015)– Texas UIL State Championship (2010-2012)– NCAA Final Four (2014)– College Football Playoff
Championship (2015)
Financial ImpactSport Yearly Revenue
National Football League (NFL) $9 Billion
Major League Baseball (MLB) $7 Billion
National Basketball League (NBA) $3.8 Billion
National Hockey League (NHL) $2.9 Billion
Major League Soccer (MLS) $280 Million
Source: http://www.statisticbrain.com/professional-sports-average-salary-revenue-salary-cap/
Financial ImpactSport Average Salary
National Basketball League (NBA) $5.2 Million
Major League Baseball (MLB) $2.5 Million
National Football League (NFL) $1.75 Million
National Hockey League (NHL) $1.3 MillionProfessional Golf Association (PGA) $0.973 Million
Women’s Tennis $0.345 Million
Men’s Tennis $0.260 Million
Women’s Golf $0.162 Million
Source: http://www.statisticbrain.com/professional-sports-average-salary-revenue-salary-cap/
Financial ImpactSport Salary Cap
Major League Baseball (MLB) $178 Million
National Football League (NFL) $133Million
National Hockey League (NHL) $64.3 Million
National Basketball Association (NBA) $58.04 Million
Major League Soccer (MLS) $3.1 Million
Source: http://www.statisticbrain.com/professional-sports-average-salary-revenue-salary-cap/
Highest Paid Athletes
Source: http://www.forbes.com/sites/kurtbadenhausen/2014/06/11/cristiano-ronaldo-leads-the-biggest-athletes-on-social-media/
Athletes on Social Media
Source: http://www.forbes.com/sites/kurtbadenhausen/2014/06/11/cristiano-ronaldo-leads-the-biggest-athletes-on-social-media/
Athletes on Social Media
Source: http://www.forbes.com/sites/kurtbadenhausen/2014/06/11/cristiano-ronaldo-leads-the-biggest-athletes-on-social-media/
It’s All About the Money
• Professional sports are big business
• Depend on a large financial commitment and a large financial return
• A city gains a special identity with a professional team, and a winning tradition fuels the financial fire
How Teams Make Money
• Ticket Sales• Merchandise• Sponsorships• Naming Rights• Media Revenues
Ticket Sales
• Fan Cost Experience
League Average
Ticket Price Average
Attendance Average Ticket Sales per Game
# of Games per Season
Average Ticket Earnings per
SeasonMLB 26.98$ 30,884 833,250$ 2,421 2,017,299,025$ NFL 78.38$ 67,358 5,279,520$ 254 1,340,998,090$ NHL 57.39$ 17,455 1,001,742$ 1,230 1,232,143,214$ NBA 48.48$ 17,274 837,444$ 990 829,069,085$
Ticket Sales
Merchandise
• NFL Top Sellers1. Pittsburgh Steelers2. Dallas Cowboys3. New Orleans Saints4. Philadelphia Eagles5. New England Patriots6. Chicago Bears7. New York Giants8. Green Bay Packers9. Indianapolis Colts10. New York Jets
• NBA Top Sellers1. Chicago Bulls2. New York Knicks3. Los Angeles Lakers4. Miami Heat5. Dallas Mavericks6. Boston Celtics7. Oklahoma City Thunder8. Los Angeles Clippers9. Denver Nuggets10. Orlando Magic
Top Selling NFL Jerseys
April 1 – October 31, 2014
Top Selling NBA Jerseys
Sponsors• NFL Top Sponsors– Gatorade– Marriott– Pepsi– Bud Light– Visa– General Motors– Verizon– Fed Ex– Papa Johns Pizza
• MLB Official Sponsors– Anheuser-Busch– Bank of America– Bayer – Captain Morgan– Citi– Firestone– Frito-Lay– Gatorade– General Motors (Chevrolet)– Intel– Holiday Inn– MasterCard International – Nike – Pepsi-Cola – Scotts – Sprint – State Farm Insurance – U.S. Army
Sponsors• NASCAR Official Sponsors
3M Bank of America Camping World Canadian TireChevroletCoca-Cola Coors LightDIRECTV Dodge DRIVE4COPD DuPont Exide Featherlite Coach Featherlite Trailers Ford FreescaleFreightliner TrucksGrowth Energy GilletteGoodyearHead & Shoulders
• NASCAR Official SponsorsMars Mobil 1 McLaren Nabisco (Kraft) National Corn Growers Assoc. Nationwide InsuranceOffice Depot Old Spice Safety- KleenSIRIUS XM Radio Sprint Sunoco Toyota Unilever UPS USG Visa K & N Whelen Engineering Inc.
Naming RightsFacility Key Tenants
M & T Bank Stadium Baltimore RavensBank of America Stadium Carolina PanthersInvesco Field at Mile High Denver Broncos
Ford Field Detroit LionsOffice Depot Center Florida Panthers
Reliant Stadium Houston TexansRCA Dome Indianapolis Colts
ALLTEL Stadium Jacksonville JaguarsGillette Stadium New England Patriots & Revolution
Network Associates Coliseum Oakland RaidersLincoln Financial Field Philadelphia Eagles
Heinz Field Pittsburgh SteelersQualcomm Stadium San Diego Chargers
Monster Park San Francisco 49ersQwest Field Seattle Seahawks
Edward Jones Dome St. Louis RamsRaymond James Stadium Tampa Bay Buccaneers
FedEx Field Washington Redskins
Winning is Everything
• In order to keep ticket sales strong and charge high prices, owners must provide a winning team
• A team fresh off of a national championship will probably have sold-out games the next season because fans expect continued success
Most Winning Teams
League City Franchise # of WinsMLB New York Yankees 27NFL Green Bay Packers 13NHL Montreal Canadienes 25NBA Boston Celtics 17FIFA Brazil 5
Most Winning Teams
Prestige, Power, Profitability
• Perks and payoffs• Political clout• Professional teams and the community• Sociological ties to a professional team• The bottom line
Prestige, Power, Profitability
• The value of sports franchises has skyrocketed due to prestige, power, and profitability
• Jerry Jones paid $140 million for the Dallas Cowboys in 1989 ($65 million for the franchise and $75 million for the stadium)• The Cowboys franchise is currently valued at
$3,200,000,000
Perks and Payoffs
• Perk—a payoff or profit received in addition to a regular wage or payment
• The position of team owner has many perks, including money and media exposure– Jerry Jones (Cowboys)– Jerry Beuss (Lakers)– George Steinbrenner (Yankees)– Ted Turner (Braves/Hawks)– Mark Cuban (Mavericks)
Political Clout
• Franchise owners who bring millions of dollars in business activity to a city often find themselves with political clout or influence
• Political Clout is frequently associated with wealth
The Bottom Line
• Winning is everything in sports
• Teams often provide players with special contract incentives for winning
Competition or Collusion?
• Teams are paid big money to win
• Sports clubs cannot operate independently – Must cooperate with one another in order to sell
their entertainment services to the public
Role of the League
• Teams that are members of a professional sports league are contractually obligated to one another
• The league determines: • the schedule of games• makes and enforces game rules• sets the guidelines for hiring new players• determines when a new team will be admitted to the
league and allowed to compete with its members
League Rules• Competition on the field would diminish if any club
had the ability to hoard the best athletic talent
• League rules are designed to ensure that each club has the opportunity to employ and retain quality players– Contracts, Drafts, etc.
• Because specific clubs may hold the exclusive right to contract with a player, athletes are not always free to work for the highest bidder
What Happens if No League Rules?
• More successful clubs would sell more tickets and team merchandise
• Earn higher profits• Have the ability to attract the best players with
higher salaries• Over time, these clubs would become so much
stronger than the less successful teams that competition on the playing field would deteriorate and become boring for spectators
• If spectators don’t come, then everyone loses…
How Does it Work?
• Individual teams are separately operated businesses
• Cartel—a combination of independent businesses formed to regulate production, pricing, and marketing of a product
Cartels
• In the case of professional sports, the cartel is a number of independent sports teams grouped together and governed by a league agreement of operations
• The league controls the distribution of the teams, including the locations of the teams and the number of teams allowed to operate within the league
• Typically, Cartels are NOT allowed in business– special legislation exempting the professional sports leagues
from antitrust laws
League Set Up
League Year Established
Commissioner # of Teams
MLB 1869 Rob Manfred 30
NFL 1920 Roger Goddell 32
NHL 1917 Gary Bettman 30
NBA 1946 Adam Silver 30
Expansion Plans
• Team owners must prove financial viability before the team can find a home city
• Owners and managers must convince the city that the costs of a team or new stadium will be repaid through increased spending by fans and by increased tax revenues
An NFL team can be a financial asset to a city if:1. Everyone and everything involved with the team
stays within the home city area
2. The stadium/arena is used for events other than those for which it was built
3. The team attracts other business development like hotels, restaurants, and retail shops
How Easy is it to Add a New Team?
• Bringing a new team to a city takes more than just an owner’s desire for a new team
– League must approve expansion plans
– Potential owners have to have the financing to pay the current NFL owners for an expansion team
– The new team must have a place to play to attract fans
How Easy is it to Add a New Team?
• Since there are more cities that want pro teams than there are teams available, the leagues control the location of the teams based on the business benefits to the leagues and owners.
• The leagues are in business to make a profit
Houston Texans1997 Houston denied NFL expansion team1997 Houston Oilers allowed to move to Tennessee1998 Jacksonville awarded 31st Expansion team learn 32nd Expansion team coming in next 2 years, cities being considered: LA (5.5 million households) Houston (1.8 million households)
Toronto1999 Team awarded to LA contingent on ownership team & stadium plans
LA financers offering $540 million
Houston financers offering $700 million; won bid2000 Begin building Reliant Stadium2001 Hire Head Coach Dom Capers2002 Expansion Draft to get athletes
9/8/2002 Home opener against Dallas Cowboys2004 Hosted Super Bowl XXXVIII
Cashing In• Super Bowl XXXVIII was played in Houston’s Reliant
Stadium in the venues 2nd year of existence
• The Super Bowl deal was a part of the financial contract and agreement between the Texans & McNair & the NFL
• Houston’s city government used the economic impact of the Super Bowl to justify tax support for the stadium– Taxpayers paid 60% of the $310 million stadium
It Pays Off…
• In addition to the 69,500 ticket-holding fans (paying anywhere from $1,950 - $4,800+ per ticket), another 10,000 – 40,000 non-ticket holders visited the city during the weekend activities
• The associated business that benefited from the crowd-lodging, food, beverage, & entertainment-generated about $300 million for the host city
• McNair bought franchise in 1999 for $700 Million, Houston Texans now valued at $1.85 Billion
Super Bowl
• To host the Super Bowl obligates to a city to meet 20 pages of NFL requirements including:
– Having at least 17,500 hotel rooms available– 65 limos exclusively for NFL use– 1,000 buses for transporting fans– And many private and public golf courses for fan use
Super Bowl Rewards• If a city does a good job hosting the Super Bowl; then the host
city can expect to host the Super Bowl about every five years
Stadium Location # hosted Years hosted
Louisiana/Mercedes-Benz Superdome New Orleans, Louisiana7
1978, 1981, 1986, 1990, 1997, 2002, 2013
Miami Orange Bowl Miami, Florida 5 1968, 1969, 1971, 1976, 1979Joe Robbie/Pro Player/Dolphin/Sun Life Stadium Miami Gardens, Florida 5 1989, 1995, 1999, 2007, 2010Rose Bowl Pasadena, California 5 1977, 1980, 1983, 1987, 1993Tulane Stadium New Orleans, Louisiana 3 1970, 1972, 1975Jack Murphy/Qualcomm Stadium San Diego, California 3 1988, 1998, 2003Los Angeles Memorial Coliseum Los Angeles, California 2 1967, 1973Tampa Stadium Tampa, Florida 2 1984, 1991Georgia Dome Atlanta, Georgia 2 1994, 2000Raymond James Stadium Tampa, Florida 2 2001, 2009University of Phoenix Stadium Glendale, Arizona 2 2008, 2015Rice Stadium Houston, Texas 1 1974Pontiac Silverdome Pontiac, Michigan 1 1982Stanford Stadium† Stanford, California 1 1985Hubert H. Humphrey Metrodome Minneapolis, Minnesota 1 1992Sun Devil Stadium Tempe, Arizona 1 1996Reliant Stadium Houston, Texas 1 2004EverBank Field Jacksonville, Florida 1 2005Ford Field Detroit, Michigan 1 2006Cowboys Stadium Arlington, Texas 1 2011Lucas Oil Stadium Indianapolis, Indiana 1 2012
Super Bowl Venues