Sport Facility Management Organizing Events and Mitigating Risks

Sport Facility Management: Organizing Events and Mitigating Risks

Chapter 1 Introduction

Preliminary Thoughts • Common Denominators in Sport and Entertainment à Event classification à Type of facility à Risk association Sport Facility Management: Organizing Events & Mitigating Risks

Preliminary Thoughts (cont. ) • Sport facilities have a long and storied history • 1966: First sport management program started at Ohio University • Understanding large facility events helps transition to smaller venues Sport Facility Management: Organizing Events & Mitigating Risks

Globalization of Sport • Rupert Murdoch à Owner of Fox Sports, LA Dodgers, Sky TV • NFL à Kurt Warner played in NFL Europe • MLB à Plays in Mexico, Japan, Puerto Rico • World Cup 2002 à Brazil v. Germany in Japan Sport Facility Management: Organizing Events & Mitigating Risks

Violence • 1972 Olympics àPalestinian attack on Israelis • 1996 Olympics àBombing in Atlanta • 1999 àMetal detectors installed before high school basketball game • 2002 College Football à Brawls à Fans tearing down goalposts • Crowd Management Philosophy à Foreseeability Sport Facility Management: Organizing Events & Mitigating Risks

September 11 th, 2001 • Facility managers must reassure guests of their safety • Budgets may increase by 40% • Insurance companies reluctant to insure • Event risk profile Sport Facility Management: Organizing Events & Mitigating Risks

Other Concerns • Attendance downturn • Economy • TV ratings Sport Facility Management: Organizing Events & Mitigating Risks

Industry and Technology Changes • Spectator-based to entertainment experience • Quality over quantity • Internet sales à ATTM • “Smart” fan cards • Wireless at seats Sport Facility Management: Organizing Events & Mitigating Risks

Conclusion • 2001 -2002 à 23% increase in construction of sport facilities • Need for trained personnel who can manage and mitigate risk • The future of sport management Sport Facility Management: Organizing Events & Mitigating Risks

Chapter 2 Planning and Producing an Event

Defining Event Management • Getting things done through people • Complex, surprising, ambiguous • Satisfying stakeholders à Participants, sponsors, spectators Sport Facility Management: Organizing Events & Mitigating Risks

What Is Sport Event Planning and Production? • Elements of management occurring within an organization • A triangle of stakeholders • Adapt, improvise, overcome Sport Facility Management: Organizing Events & Mitigating Risks

Steps in Planning and Producing the Event • Agree on event goals • SWOT – Strengths – Weaknesses – Opportunities – Threats • Event development and monitoring strategies • Manage event logistics • Motivate and influence event volunteers Sport Facility Management: Organizing Events & Mitigating Risks

Cialdini’s Rules of Influence • • • Reciprocation Commitment and consistency Social proof Liking Authority Scarcity Sport Facility Management: Organizing Events & Mitigating Risks

Steps in Planning and Producing the Event • • • Pre-event briefing Track the event in real time Post-event debriefings Cleanup and/or closeout Reconcile the event Sport Facility Management: Organizing Events & Mitigating Risks

Additional Event Planning and Production Suggestions • Event checklists à Double check à Be specific • Recognize Murphy’s Law Sport Facility Management: Organizing Events & Mitigating Risks

Chapter 3 Financing Facilities

Introduction • Unprecedented renovation and construction of sport facilities • Escalating costs causing problems • Teams relocating for new facilities • The financing and economic impact of new facilities central to this chapter Sport Facility Management: Organizing Events & Mitigating Risks

Facility Financing • Public à Keep public subsidy to minimum to expand cash flow • Private à Emphasis is on stockholder wealth and stock price • Combination Sport Facility Management: Organizing Events & Mitigating Risks

Financing Options • General obligation bonds à Backed by government and require taxes • Revenue bonds à Tax from specific sources • COP (Certificate of Participation) • TIF (Tax Increment Financing) • Other Sport Facility Management: Organizing Events & Mitigating Risks

Financing Options • Public and private cooperation à Revenue bonds backed by sales tax à Naming rights and arena revenues à Land taxes à Club seating Sport Facility Management: Organizing Events & Mitigating Risks (cont. )

Financial Team • Examples à Facility manager/staff à Business plan consultant à Architect à Construction manager à Legal counsel Sport Facility Management: Organizing Events & Mitigating Risks

Cash Flow • Definition • Examples • Why is cash flow such an important concept for the facility manager? Sport Facility Management: Organizing Events & Mitigating Risks

Public v. Private Financing • Public financing supporters à New jobs, attracts new fans, etc. à “Minor League City” à Multiplier effect • Private financing supporters à New stadiums do not create, they redistribute à Other activities lose participants à Tax base not expanded significantly Sport Facility Management: Organizing Events & Mitigating Risks

College Facilities • Student fees • User fees • Corporate funding Sport Facility Management: Organizing Events & Mitigating Risks

Chapter 4 Privatization

Introduction • Governmental resources are limited à Privatization shift • 1990 s à Most facilities funded publicly à However, managed privately • Public-private partnership à Efficiency and effectiveness Sport Facility Management: Organizing Events & Mitigating Risks

Rationale for Utilizing Public. Private Partnerships • • Governments can and should do more with less Increased efficiency and effectiveness Competition Rewarding innovation Sport Facility Management: Organizing Events & Mitigating Risks

Public-Private Partnerships • Types à Contracting out or outsourcing à Franchising à Commercialization/service shedding à Tax expenditure à Vouchers Sport Facility Management: Organizing Events & Mitigating Risks

Examples of Public-Private Sport Partnerships • Event promotion and management • Sport stadium financing and construction • Private sport facility and event management Sport Facility Management: Organizing Events & Mitigating Risks

Possible Benefits of Privatization • • Economies of scale Discipline of market forces Increase in meaningful private-sector jobs Reduced threat and impact of strikes Sport Facility Management: Organizing Events & Mitigating Risks

Possible Drawbacks of Privatization • Inefficient and costly • Government still responsible for quality control • Public employees needed to monitor the private sector Sport Facility Management: Organizing Events & Mitigating Risks

Final Thoughts • Privatization is part of today’s sport event and facility management landscape • Facility manager should be cognizant of both to run an effective operation Sport Facility Management: Organizing Events & Mitigating Risks