Sports Management Final
Only pro sport to ban corporate/public ownership - ANS-NFL
collective bargaining - ANS-Agreement between an employer and a labor union that
regulates wages, hours, terms and conditions of employment. In professional sports,
this agreement is between the players association and the professional sports league,
and it describes the nature of employment and the financial structure of the game.
Players' associations have used collective bargaining to limit the League
Commissioner's powers. When the collective bargaining process reaches an impasse
(or breakdown in negotiations) the players can go on strike or owners can "lock out"
players
John M. Ward's fight was for ___ - ANS-Founded the first baseball Players' union
Wanted Baseball players to get salary caps, baseball revenue system, and baseballs
practice of selling players receiving a shar of profit
Number of Professional athletes in big 4 professional sports - ANS-4,300
Number of agents registered with professional players' associations - ANS-1600-1800
first notable salary holdouts - ANS-Red Grange
Babe Ruth
Sandy Koufax
Don Dreysdale
pioneering sports agent - ANS-Mark McCormack
Founded IMG, First client was Arnold Palmer
first players' association to negotiate the right for players to be represented by agents -
ANS-IMG (International Management Group)
purpose of the reserve system in MLB - ANS-MLB Teams realized that if players were
free to go from team to team then player salaries would escalate dramatically. The
reserve clause was put into place for valuable players so that players salaries would not
be inflated.
, Reserve Clause was a part of a player contract that upon the end of the contract the
rights to the players were to be retained by the team. This meant the player was not free
to enter into a new contract with another team.
The reserve clause was abolished from the MLB in 1975 and replaced by free agency
endorsement king in the pre-Michael Jordan era - ANS-Mark McCormick
various fee structures used by agents - ANS-Flat-Fee
Athlete must pay agent an amount of money agreed upon before the agent acts for the
athlete
Percent of compensation
Often covers negotiation plus all of the work related to the provisions of the contract
over its term; most popular
Players' associations limit amount of agent fees, and set fee "ceilings" between 3% and
6%, competition for clients has driven average fess down closer to 2%-3%
Hourly rates
Hourly rates with compensation cap
how most stadiums are financed - ANS-Tax exempt bonds
Most common way to build facilities
Promise by borrower to pay back lender a specified amount of money, with interest,
within a specified time period
General obligation bonds
Backed by the local government's ability to raise taxes to pay off the debt
Nonguaranteed bonds
Private, taxable bonds
Private-placement bonds
Provide a lien on all future revenues generated by the team
Asset-back bonds
Secured through specific assets
Tax-Increment Financing
Available in a specific square mileage of land around the facility where the tax base is
frozen and any additional taxes added are used to repay the TIF bonds
Hard taxes
Taxes on local income, real estate, personal property, and general sales
Often require voter approval because the burden of payment becomes that of the public
Soft taxes
Include added taxes to car rentals, taxis, hotels/motels, restaurants, "sin" (alcohol,
tobacco, gambling, etc.) and visiting players.
Affects a much smaller portion of taxpayers, which makes it easier to levy.
Only pro sport to ban corporate/public ownership - ANS-NFL
collective bargaining - ANS-Agreement between an employer and a labor union that
regulates wages, hours, terms and conditions of employment. In professional sports,
this agreement is between the players association and the professional sports league,
and it describes the nature of employment and the financial structure of the game.
Players' associations have used collective bargaining to limit the League
Commissioner's powers. When the collective bargaining process reaches an impasse
(or breakdown in negotiations) the players can go on strike or owners can "lock out"
players
John M. Ward's fight was for ___ - ANS-Founded the first baseball Players' union
Wanted Baseball players to get salary caps, baseball revenue system, and baseballs
practice of selling players receiving a shar of profit
Number of Professional athletes in big 4 professional sports - ANS-4,300
Number of agents registered with professional players' associations - ANS-1600-1800
first notable salary holdouts - ANS-Red Grange
Babe Ruth
Sandy Koufax
Don Dreysdale
pioneering sports agent - ANS-Mark McCormack
Founded IMG, First client was Arnold Palmer
first players' association to negotiate the right for players to be represented by agents -
ANS-IMG (International Management Group)
purpose of the reserve system in MLB - ANS-MLB Teams realized that if players were
free to go from team to team then player salaries would escalate dramatically. The
reserve clause was put into place for valuable players so that players salaries would not
be inflated.
, Reserve Clause was a part of a player contract that upon the end of the contract the
rights to the players were to be retained by the team. This meant the player was not free
to enter into a new contract with another team.
The reserve clause was abolished from the MLB in 1975 and replaced by free agency
endorsement king in the pre-Michael Jordan era - ANS-Mark McCormick
various fee structures used by agents - ANS-Flat-Fee
Athlete must pay agent an amount of money agreed upon before the agent acts for the
athlete
Percent of compensation
Often covers negotiation plus all of the work related to the provisions of the contract
over its term; most popular
Players' associations limit amount of agent fees, and set fee "ceilings" between 3% and
6%, competition for clients has driven average fess down closer to 2%-3%
Hourly rates
Hourly rates with compensation cap
how most stadiums are financed - ANS-Tax exempt bonds
Most common way to build facilities
Promise by borrower to pay back lender a specified amount of money, with interest,
within a specified time period
General obligation bonds
Backed by the local government's ability to raise taxes to pay off the debt
Nonguaranteed bonds
Private, taxable bonds
Private-placement bonds
Provide a lien on all future revenues generated by the team
Asset-back bonds
Secured through specific assets
Tax-Increment Financing
Available in a specific square mileage of land around the facility where the tax base is
frozen and any additional taxes added are used to repay the TIF bonds
Hard taxes
Taxes on local income, real estate, personal property, and general sales
Often require voter approval because the burden of payment becomes that of the public
Soft taxes
Include added taxes to car rentals, taxis, hotels/motels, restaurants, "sin" (alcohol,
tobacco, gambling, etc.) and visiting players.
Affects a much smaller portion of taxpayers, which makes it easier to levy.
