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chapter 1: The History of Sport Management SS 150

Club system
-England – birthplace of modern sport and sport management
– 18th century – sport clubs were formed with limited membership
-Politically and economically powerful
– Primarily social clubs that organized an annual competition
– 19th century – evolution continued with club standardizing of rules, settling disputes, and organizing schedules
England
– birthplace of modern sport and sport management
Thoroughbred Racing
– races drew broad and diverse audience – no admission charged; obligation to entertain the masses
– local club system initially – racing existed for entertainment ony (& pride), not financial gain
– this began to change in the 1830’s
-rail system allowed horses to compete nationally
– two factors would lead to the need for a more systematic management system
1. desire of owners to breed and train fast horses
2. increasing complexity of gambling
1. desire of owners to breed and train fast horses
2. increasing complexity of gambling
Two factors would lead to the need for a more systematic management system
Jockey Club (Newmarket)
– Took responsibility for settling disputes, establishing rules, determining eligibility, designating officials, regulating breeding, and punishing unscrupulous participants
– Organized, sponsored, and promoted local events, members put up purse money for the events; limited participation to members
– Due to the fact that they organized themselves so well, they met the need for a strong national governing body to establish rules, standards, and a mechanism for resolving disputes
– Served as model for wider sport management practices in England, other sports used the clubs market as a model to their own
The Modern Olympic Games
– International club event, with little resemblance to ancient Olympic Games which were part of a larger religious festivals and participants were all male
– Founder of these games was Pierre de Coubertin- character building and peace movements through sport
– was first held in (year/location)? – 1896/athens, but the revival can be traced back to at least 1850 with club-based olympic festivals in England
– 9 day event with 311 athletes from 13 nations competing in 9 different sports
1896, Athens
First Modern Olympics were held in (year/location)?
Pierre de Coubertin
Founder of the modern games was?
Present-Day Club Structure
– Commitment to serve broad membership and manage elite sport enterprise
– Not just about elite sport though – clubs organize youth teams and academics, adult recreational leagues, and social events for members – Large built-in memberships and loyal fan bases
– Change has occurred, no longer local, but international. Examples? -Diamond League, Red Bull Brand, PGA Tours – Emphasis is on entertainment and profit
– Change from European club system to U.S. league system
American Structures
– European club system did not suit the United States – Lack of aristocratic tradition and prohibition against gambling
– Evolution of harness racing, sport of the common person – Horse and buggy was the most common form of transportation
– Better spectator sport – Sprint vs. 4-mile racee; horses could compete daily, large fied of competitors
– Managed by track owners and race promoters – relied on gate receipts to pay purse & make profit, therefore, willing yo create spectator interest for sport
– How is this different than the European Club model? What is the bigger picture? —> Entertainment and profit
Entertainment and profit
How is the American Structure different than the European Club model? What is the bigger picture?
Leagues
– Baseball started with club structure, but would become the 1st to adopt the league system
– The 1st pro team was the Red Stockings
– During the 1860s and 1870s, there was a constant battle – some teams in the league paid and some did not
– National Association of Professional Baseball Players was formed in 1871- represented a break from the amateur clubs – still relied heavily on wealthy members
– Importance of “breakeven” financial interests of individual clubs – allegiance to personal finances was more important than the league
Cincinnati Red Stockings
The 1st pro team was?
William Hulbert
“Czar of baseball”
– In 1876 he took over management of National League of Professional Baseball Players
– He believed stability would only be achieved if teams were run like businesses, teams competed against each other and did not collude (secretly work together), strict rules were enforced that created honest competition
– The leagues initial members were from:
~Boston, Chicago, Cincinanati, Hartford, Louiville
– He also restructured the league rules to place an emphasis on allegiance to the league
– He believed that the owners must take some financial risk, Abandoning seasons early to prevent losses in short term eroded long-term faith of public
– Owners must field competitive teams to be profitable – no one wants to go see a team this is a non-competitive & teams were required to play the entire season
-Integrity of baseball was suspect as long as the players’ honesty was questionable – Gambling prohibited
– Wanted to make games more appealing to “better” classes – raised ticket prices
Five keys to success
(1) Excitement of pennant race
– Only 8 teams, only played each other, no one ever that far out

(2) Favorable media attention
– Sport helped sell newspapers

(3) Appealed to fans’ loyalty and pride in their cities

(4) Early form of revenue sharing
– Home team shared gate with visitors

(5) Rules that distributed talent
– Respected contracts for one year

Professional Golf
~From the start it was an exclusive game for upper-class white males

– Early professionals were…
~ instructors and caddies

– Several early attempts to organize failed
~ Failed to capture public interest or attract professionals
~ Attempts to generate gate revenues at tournaments failed

– Stability of tournaments was achieved when…
~ prize money was put up by companies and corporate sponsors

Corcoran’s Tournaments
– Fred Corcoran is known as the architect of the golf tournament

– He saw (sold) the golf tournament as a marketing opportunity
~ A medium through which celebrity, politician, manufacturer, charity, town, or product gained exposure

– Prior to this, the PGA provided the purse for all of their events to entice clubs to host tournaments
~It sold revenue generation from 70 golfers> $3000

– Bing Crosby and Bob Hope created the pro-am format
~ Amateurs (any one that could afford it) paid to play with celebrities
~ Money was used for WWII fund raising

Other outcomes of Golf
– Connection between charity and the golf event was good business
~Money went to charity = 100% tax deductible

– Many charities had a large volunteer base
~Volunteers helped run the events
~ Built in target audience

– 1950s press changes policy
~ Began naming tournament sponsor not location = free publicity

Tournaments Today
– Golf tournaments have evolved into corporate celebrations of golf and products
– PGA Tour viewed as private group
~ Set rules of eligibility (just like NFL, NBA, NHL etc…)
~However, associations not as exclusive as private clubs (Casey Martin; Augusta National)

– Trend moving away from nonprofit private associations and toward marketing agencies and/or broadcast media
~ Events are being created by media or marketing groups

Heraea Games
~ Held about the same time period as Ancient Olympics
~ Footraces for women
~Organized by a group a respected elders known as The Sixteen Women
~Ended when Romans conquered Greece

– It has been a long road back for women
– Sport management industry:
~Effa Manley of Newark Eagles(Negro League), Billie Jean King (WWT,WSF), Busty Wiffel
– Some as athletes and others through administrative roles

Walter O’Malley & James Mason
– Continuing growth of sport industry and its importance to numerous sponsors and institutions created demand for the systematic study of sport management practices.
– The founders are credited as:
~1957: discuss the idea

~1966: James Mason starts 1st master’s program at Ohio University

~Late 1960’s: St John’s University and St. Thomas University (FL) formed UG programs

~1971: University of Massachusetts starts the 2nd master’s program

Fred Corcoran
– He is known as the architect of the golf tournament
– He saw (sold) the golf tournament as a marketing opportunity

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