Intro to sports Harvard and Stanford assignement

Intro to sports Harvard and Stanford assignement - The...

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The Business of Sport: A Perspective from Stanford and Harvard Reading Study Guide 1 Introduction to Sports Studies Donald Zamperetti Written by: Josh Kelly
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Stanford Perspective: 1. When you examine the Sports Value Chain do you see any segment of the industry that is not included in the value chain? I do not think that there is anything missing in the value chain. It seems like it is comprised of the major aspects of a sports business. They start with a governing body then move all the way to the Cable Distribution to the viewers who are at home. They cover a broad range of aspects in this chain and I believe that it is complete. 2. When the author discusses “Leadership and Strategy Matters” – what is the one aspect of leadership that is important in Sports Business? One aspect of leadership that is important is creating effective coalitions among key participants in the sports value chain. This is not always easily achieved. In the MLB and NHL there has been a long history of divergent and entrenched differences between clubs and owners and often between subgroups within the club and owner categories. 3. What does the author report concerning club valuations? Are you surprised by this? data? The author says that club valuations over time are an important indicator in value creation. Values for teams from the year 1994 to 2003 have almost doubled and some have tripled in value. He does say that with this value creating there is much debate over the sharing of that value among key contributors to the creation, for example, owners of clubs, owners of stadiums and players.
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4. What does the author report on “Revenue Growth” in the four major leagues? Have players benefited? Does this seem to justify player’s salaries? What leagues player’s have benefited the most? Revenue growth occurs at multiple levels, including the league, club, player and broadcast network levels. The players have shared in this revenue growth. The NFL, NBA and EPL are the best example of a league that has captured a part of this increase over their counterparts who have not such as the MLB and NHL. 5. Describe “Value Chain Encroachment and Fluidity”. How does the NFL network relate to this concept? Sometimes groups can overlap in their compensation. One aspect of the relentless search for growth opportunities is the encroachment of parties across parts of the value chain. There are many examples where clubs own or operate their own stadiums. Increasing interest is being shown by leagues that own and operate media level parts of the value chain. Examples of this are the YES Network, and NFL Network. This value chain encroachment notion is often called vertical integration. It is often used as a means of increasing and broadening the revenue base.
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