sports and entertainment marketing ethics. profit difference between the revenues earned by a...
TRANSCRIPT
Sports and Entertainment Marketing
Ethics
Profit
Difference between the revenues earned by a business and the costs of operating the business
Opportunity to earn a profit is at the heart of the free-enterprise system The World’s 50 Most Valuable Sports Tea
ms
Profit By 2015, global revenues in Sports
industry set to rise to $145B 3.7% annual growth rate
What’s driving growth? Gate Revenues – still the biggest local source
of revenues in most markets Merchandising – online, global fan base Sponsorship – sponsors are no longer just
interested in raising profile, but about deeper engagement with the fans
Media Rights – are huge! $42B rights deals with CBS, Fox, and ESPN through
2022
It’s All About the Money
NFL earned $9.5B in revenues in 2012 Where does it come from?
Ticket Sales Licensing and merchandise Sponsorship * Stadiums Venture Fund * Media *
It’s All About the Money
How does money play out in college sports? College Football’s Most Valuable Teams
Who benefits from team’s success? Should collegiate athletes get paid?
Why is this Important?
Sports teams and entertainers in it to make money!
2014 Highest Paid Actors #1 Robert Downey Jr. ($75M) #2 Dwayne Johnson ($52M) #3 Bradley Cooper ($46M) #4 Leonardo DiCaprio ($39M) #5 Chris Hemsworth ($37M)
Why is this Important?
Sports teams and entertainers in it to make money!
2014 Highest Paid Athletes #1 Floyd Mayweather ($105M) #2 Cristiano Ronaldo ($80M) #3 LeBron James ($72.3M) #4 Lionel Messi ($64.7M) #5 Kobe Bryant ($61.5M)
Why is this Important?
Sports teams and entertainers in it to make money!
2014 Highest Paid Musicians #1 U2 ($195M) #2 Bon Jovi ($125M) #3 Elton John ($100M) #4 Lady Gaga ($90M)
Why is this Important?
Businesses engaged in the Sports & Entertainment industry are also in it to make money
Goal to increase shareholder value Example: Nike outsourcing production to Less-
Developed Countries More profitable Illegal vs. Unethical
Ethics Defined
Ethics Moral principles that govern a person’s or group’s
behavior
Ethics in Business The study of proper business policies and practices
regarding potentially controversial issues Implemented in order to ensure that a certain required
level of trust exists between consumers and businesses
Ethics in Sports Sportsmanship – matter of being of good character and
doing right action in sports
What Does Sportsmanship Look Like?
Playing fair Following the letter and spirit of the rules Respecting the judgments of officials Treating opponents with respect Shaking hands at the end of the game Never running up the score Never cheating Never taunting
Unethical Behavior in Sports?
Does it exist? Recruiting violations Performance enhancing drugs Illegal benefits Violence Hazing Behavior of coaches, athletic administrators,
parents, and fans Out-of-control boosters
At what levels? Professional, Collegiate, Interscholastic, &
Youth
Ethical Issues In Youth Sports?
Cutting a child trying out for a sports team Playing the best players (some do not play) Keeping the best players in the “key”
positions Competing for championships and trophies Requiring a child to play a sport Specializing in one sport Offering teams for one gender only
Ethical Issues In Interscholastic Sports?
Requiring athletes to pass all subjects Specializing in one sport Treating male athletes preferentially Playing while injured Using drugs to enhance performance Teaching athletes (by coaches) how to break
sport rules to gain an advantage Giving athletes money or other benefits Taunting and gamesmanship
Why Unethical Behavior? Pressure to win Money on the line Job security Future employment Pride Living through the athletic
accomplishments of their children
Rationalization for Behavior
There is no rule against it Everyone else does it This action is not unethical because
no one will ever know about it Circumstances require acting in this
way
Moral Justification Muddy the waters
Claim it really was ethical Make the wrong look right
No foul, no harm Make it a non-issue Didn’t harm anyone Unseen by the official
End justifies the means Admit guilt, but focus on the greater good A rule was violated but the amount of good accomplished
overshadowed the small amount of harm that occurred Everybody’s doing it
Downplay it’s significance Feel can’t compete without it
Problems With Moral Reasoning
The longer athletes participate in sport, the lower their moral reasoning
Males have lower levels of moral reasoning than do females
Team sport athletes show lower levels of moral reasoning than do individual sport athletes
The moral reasoning of interscholastic athletes is less consistent, impartial, and reflective than is that of non-athletes
Agree Slightly Agree Slightly Disagree Disagree
1 2 3 41. Teamwork is important for winning.
2. I would taunt my opponent.
3. A team must have a good coach to win.
4. I would spit on my opponent.
5. Luck is a part of winning.
6. It is important to shake hands with my opponent after a game.
7. I have never been in a game where any rules were violated.
8. Referees’ decisions will affect a game’s result.
9. Intramurals are a waste of time.
10.I would deliberately injure my opponent to help me win.
11.A team must have a “star player” to be a winning team.
12.Respecting my opponent gives me a better chance of winning.
13.The team that prepares the best should win the game.
14.“Winning isn’t everything, it is the only thing.”
15.I have never seen or heard someone taunt or trash-talk an opponent.
16.Respect is an important attribute for a winning team.
17.Football is a more violent sport than ice hockey.
Agree Slightly Agree Slightly Disagree Disagree
1 2 3 4
28. Integrity is an important attribute for a winning team.
29. Intercollegiate athletics are bad for a university.
30. I would retaliate if I was given a “cheap shot” by my opponent.
31. Skill in a sport is more important than hard work.
32. I play fair.
33. Being a good sport (showing sportsmanship) is important to winning.
34. “Every student an athlete, every student challenged.”
18.I must respect my opponent to play my best.
19.Basketball is a non-contact sport.
20.I would trash-talk my opponent.
21.Soccer is a non-contact sport.
22.I compliment an opponent for a good play.
23.It is “OK” to run up the score against aninferior opponent.
24.Basketball players are better “athletes” than baseball players.
25.I would "bend the rules" to win.
26.It is not whether you win or lose, but how you play the game.
27.It is not up to players to enforce rules (it’s the referee’s job).
Ethical Questions…
Should a professional sports team go on strike when athletes are earning multi-million-dollar contracts?
Pro Sports Lockouts and Strikes
Major League Baseball 1972 First strike in the history of the league Lasted 2 weeks Players won salary arbitration and an
increased pension Sport lost
86 missed games $1M lost pay for athletes $5M lost in ticket sales and broadcast fees
Pro Sports Lockouts and Strikes
National Football League 1982 Lasted 57 days Players demanded free agency after 3
years and 55% share of broadcast revenue
Owners agreed to $2B increase in salaries and additional veterans and severance pay
7 games of regular season cancelled in process
Pro Sports Lockouts and Strikes
National Basketball Association 1998 Lasted 204 days Loss of 32 games Reinforced a widespread impression of
athletes and owners as greedy and overpaid
Dubbed the dispute "between tall millionaires and short millionaires.”
Attendance at the games and television ratings dropped, and the salary issues that had inspired the dispute were barely resolved
Athletes with Unethical Behavior
Black Sox Scandal 1919 World Series – White Sox vs. Cincinnati
Reds 8 players banned from MLB for life for
purposely losing Shoeless Joe Jackson
Athletes with Unethical Behavior Little League World Series
2001 Danny Almonte Pitcher for Baby Boomers Dominated Series
Threw perfect games and 70 mph fast balls ~ pretty impressive for a 12 year old!
Found out after the fact, Danny was actually 15!
2 ½ years older than maximum age to compete in Little League World Series
Danny retroactively declared ineligible Baby Boomers had to forfeit all their wins All of their records were removed from
the books
Athletes with Unethical Behavior
US Figure Skating Championship 1994 Tonya Harding and Nancy Kerrigan rivals on ice Right before competition, Kerrigan is hit in the
knee with a metal pipe by an unknown man Amid suspicion, Harding admits she,
her now ex-husband, and body guard hired the man to break Kerrigan’s leg
Harding banned from skating Threatens to sue and is re-instated At the following Winter Olympics,
Harding places 8th while Kerrigan wins Silver
Athletes with Unethical Behavior
Pete Rose 1980s One of best baseball players of all time Gambled on games
Even bet on the Cincinnati Reds – when he was their manager
Originally denied allegations Agreed to voluntary ban from
MLB in exchange for stop in investigation
Athletes with Unethical Behavior
Bill Belichick 2007 New England Patriots coach Filmed competitor Defensive Coordinator’s
signals during a game “Misinterpretation
of the rules” Fined $500,000
Athletes with Unethical Behavior
MLB and Steroids Records breaking Biceps bulging Mitchell Report
89 former and current and MLB players named
Biggest names Roger Clemens Barry Bonds Jose Conseco Mark McGwire Sammy Sosa
Athletes with Unethical Behavior
Michael Vick 2007 Dog fighting scandal Sentenced to 21 months in federal prison Upon release, former team, Falcons, didn’t want
a former convict Now playing for the Eagles Forgive and forget or shouldn’t
even be playing in the NFL?
Athletes with Unethical Behavior
Lance Armstrong 2012 U.S. Anti-Doping Agency (USADA) Amidst alleged increasing evidence and
frustration with fighting allegations, Armstrong stops arbitration
Banned for life from cycling Stripped of 7 Tour de France victories Livestrong Foundation?
$500 million raised in 15 years to fight cancer
Athletes with Unethical Behavior
Penn State 2011 Jerry Sandusky – child sex abuse
At least 8 underage boys on or near university property June 2012, Sandusky found guilty of 45 counts of sexual
abuse Faces up to 60 years in prison
University officials (including President, Graham Spanier and head football coach, Joe Paterno) fired for allegedly covering up the incidents and enabling more
NCAA imposed penalties of Fine of $60 million 4-year post season ban Vacating all victories from 1998 – 2011
Big 10 also imposed a $13M fine
Athletes with Unethical Behavior
SMU mid 70s - mid 80s From 1985 55-14-1 record Won 3 Southwest Conference titles Nearly won it’s 2nd National Title (lost it when decided to
take a tie against Arkansas instead of go for the win) To stay competitive with other teams in league (8 schools
in Texas, plus Arkansas), began using questionable recruiting tactics
Received 2 warnings from NCAA to stop 3rd time, received “Death Penalty” ~ highest punishment
for repeat offenders Terminated the football program for two years Players allowed to leave/go to another school 1 winning season in next 20 years!