13. What is a virtuous cycle? [Seriously, based on the articles, what is it?] 14. What are four industries that benefit from the growth in the sports industry? Why? Clubs get their revenues from ticketing, merchandising, sponsorships, and media rights. Teams can protect and increase revenues by carefully watching three key indicators, all "synergistic" and in some ways overlapping: performance, as winning generates interest, which generates media revenue; the presence of star players, who drive ticketing, merchandising, and sponsor- ships; and loyalty, which drives, in particular, ticketing revenues (see figure 8). So how do you allocate money to improve these three indicators? Figure 8 Winning is a virtuous cycle Resource allocation Assets Revenue Team salaries Team performance Media revenues Academles Talent sale Talent acquisition Stars Commercial revenues Stadium facilities and promotion Fan loyalty Ticketing revenues Club management Source: A.T. Kearney analysis Various studies have shown that winning performances are the best guarantee for protecting revenues. While winning is a function of many factors-coaching, team chemistry, infrastructure, and luck-in general the teams that perform best are those that invest the most to acquire the best players. For some teams, that can come from spending on
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