Lesson Plan
Course Title: Sports and Entertainment Marketing
Session Title: Sports and Entertainment Risk Management
Performance Objective:
After completing this lesson, the student will define risk, describe the categories and
classifications of risk, and describe four strategies for risk management.
Specific Objectives:
•
•
•
•
•
The student will define risk.
The student will define categories of risk.
The student will explain three classifications of risk.
The student will define four strategies for managing risk.
The student will describe risks associated with sports and entertainment events.
TERMS
•
•
•
•
•
•
•
Risk-the possibility of financial gain or loss or personal injury
Risk management-involves preventing, reducing, or lessening the negative impacts of
risk by using the strategies of risk avoidance, risk insurance, risk transfer, and/or risk
retention
Liable-the business is legally responsible for damages and might have to pay for the
medical costs and other losses suffered by an injured person
Risk avoidance-not taking part in risky activities
Risk insurance-purchasing a policy to cover possible losses and liability
Risk transfer-sending the risk to another company or even to the consumer
Risk retention-when businesses that face uninsurable risks must assume the cost of the
risk
Copyright © Texas Education Agency 2011. All rights reserved.
1
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the
activities may result in the elimination of any or all of the TEKS listed.
130.346 (c)(12)(A)
…categorize business risks…
130.346 (c)(12)(B)
…explain methods a business uses to control risks such as surveillance and safety training…
130.346 (c)(1)(B)
…analyze the interdependence each business activity has with marketing…
130.346 (c)(1)(C)
…explain the implications of business conduct using sports and entertainment examples…
130.346 (c)(14)(B)
…distinguish among sports and entertainment marketing terms…
Interdisciplinary Correlations:
English:
110.31 (b)(21)(B)
… organize information gathered from multiple sources to create a variety of graphics and forms
(e.g., notes, learning logs)…
110.31 (b)(22)(B)
…evaluate the relevance of information to the topic and determine the reliability, validity, and
accuracy of sources (including Internet sources) by examining their authority and objectivity…
110.31 (b)(23)(C)
… uses graphics and illustrations to help explain concepts where appropriate
110.31 (b)(23)(D)
… uses a variety of evaluative tools (e.g., self-made rubrics, peer reviews, teacher and expert
evaluations) to examine the quality of the research…
Teacher Preparation:
Teacher will review the terms in the outline, power point and handouts to become familiar with
lesson.
Teacher should locate and evaluate various resources and websites before the lesson.
Copyright © Texas Education Agency 2011. All rights reserved.
2
Teacher will have assignments and website information ready to distribute to students.
References:
Sports Business Journal
Advertising Age
Sports Illustrated
Instructional Aids:
1. Display for PowerPoint, websites for assignments and class discussion
2. Sports and Entertainment Marketing, 3rd edition, Kaser & Oelkers, South-Western
Cengage Learning: Sports and Entertainment Management, Kaser & Brooks, SouthWestern Cengage Learning.
3. Sports Illustrated
4. USA Today
5. Advertising Age
Materials Needed:
1. Printer paper
2. Assignments and website information ready to distribute to students.
(Insuring the Event) Direction Sheet
2. Sports Business Journal and Entertainment Industry Economics: A Guide for Financial
Success
3. Internet access to Hulu videos
Student projects will be displayed to increase interest in Sports and Entertainment
Marketing.
Equipment Needed:
1. Computer with PowerPoint and Internet Access
2. Projector to Show Internet Sites Undercover Boss Episodes
3. Computers for Students to Conduct Research and Collect Data for Projects
Learner Preparation:
Call out the following outings and ask students to define what happens at each.
Concert
Public Swimming Pool
Basketball Game
Then tell students that there are RISKS associated with each event that may affect the cost
of attending each of these events.
Introduction
Copyright © Texas Education Agency 2011. All rights reserved.
3
Introduction (LSI Quadrant I):
SHOW: Pictures of different sports and entertainment venues (football game, movie, concert,
carnival, etc.)
ASK: Ask students what types of risks are associated with each event.
SAY: Sports and entertainment event planners must be concerned with what could go wrong at
the event, Wherever there are people, there is the possibility of loss due to risks from mother
and human nature.
ASK: Ask students what risks exist at an amusement park or carnival.
SAY: Explain how the amusement parks and carnivals must carry large amounts of insurance.
Just one accident can result in large lawsuits costing millions of dollars.
ASK: Ask students to give examples of human risks associated with sports and entertainment
events.
SAY: Explain how unskilled labor can result in injuries, customers may write checks with
insufficient funds, and employee dishonesty can result in loss for the sports and entertainment
event.
ASK: Ask students what warning signs are posted at rides in amusement parks.
SAY: Explain how the warnings are posted to limit the possibility of loss.
Outline
Outline (LSI Quadrant II):
Instructors can use the PowerPoint presentation, slides, handouts, and note pages in
conjunction with the following outline.
MI
Outline
I. Risk Management
A. Risk-possibility of financial gain or loss or
personal injury
B. Financial Loss
1. business does not make a profit and has to
close
2. loss of all of the money from owners and
investors
3. personal injuries can occur if businesses do
not take the appropriate safety precautions
Notes to Instructor
Use PowerPoint and
current events as aids.
Sports and
entertainment events
face the risk of not
making a profit.
Whenever people
meet for an event,
there is the possibility
Copyright © Texas Education Agency 2011. All rights reserved.
4
of injury and the
entertainment venue
may be liable for
damages.
II. Categories of Risk
A. Natural Risk
1. unavoidable weather conditions-tornadoes,
blizzards, hurricanes, floods, droughts, ice
storms
2. Hurricane Katrina
a. greatly decreased the population of New
Orleans
b. hotels, restaurants, and other tourist
attractions lost months of business
3. ice storms, blizzards, tornadoes
a. people stay home
b. outdoor events are cancelled
B. Human Risk
1. customer dishonesty
2. employee theft
3. employee incompetence
4. shoplifting, credit card fraud, bad checks
5. sports and entertainment events have special
security personnel to monitor events
Use PowerPoint as
aid.
No one can control
Mother Nature. Bad
weather can have a
disastrous effect on
sports and
entertainment events.
Lightning, snow,
thunderstorms, and
tornadoes can put a
real damper on
entertainment events.
Businesses hope to
hire honest
employees; however,
the biggest percentage
of shoplifting is
associated with
employees.
III. Economic Risks
A. Changes in the Economy
1. unemployment rate
2. inflation
3. discretionary income
Use PowerPoint as
aid.
IV. Three Classifications of Risk
A. Gain or Loss Risk
1. speculative risk-could result in a gain or a
loss
2. pure risk-chance of an event occurring that
could result only in a loss (flood-golf resort)
B. Controllable Risk
1. loss can be prevented
Use PowerPoint as
aid.
When the economy is
bad, individuals have
less money to spend
on entertainment
events.
The most ideal
situation for
businesses associated
with sports and
entertainment is a
Copyright © Texas Education Agency 2011. All rights reserved.
5
2. likelihood of the risk occurrence is reduced
3. tornado-uncontrollable risk
C. Insurable Risk
1. pure risk
2. chances of loss are predictable
3. amount of loss can be estimated
4. look at statistics for similar losses
V. Managing Risk
A. preventing, reducing, or lessening the negative
impacts of risk by using risk avoidance, risk
insurance, risk transfer, and/or risk retention
B. Managing Risk Strategies
1. risk avoidance-avoiding risky situations takes
planning on the part of sports and
entertainment marketers
2. risk insurance-sports and entertainment
businesses contract with insurance
companies and other financial institutions to
cover their risk of financial loss
a. property insurance
b. liability insurance
c. theft insurance
3. risk transfer
a. contracting another company
b. statement on ticket saying the promoter is
not responsible for any harm to the ticket
holder
c. attendee agrees to be responsible for the
risks
4. risk retention
a. unpredicted low attendance=loss
b. unplanned bad weather
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
controllable risk.
Insurance must be
purchased to protect
property and cover for
possible liability.
Use PowerPoint as
aid.
Sports and
entertainment event
planners must decide
which risks they will
cover with insurance.
Attendance and
weather conditions
cannot be controlled.
The business practices
risk retention for these
cases.
When a city hires
another company to
shoot fireworks for the
Fourth of July, risk
transfer has occurred.
Sports and
entertainment venues
purchase insurance to
cover liability claims
and personal property
losses.
Interpersonal
Naturalist
Existentialist
Application
Copyright © Texas Education Agency 2011. All rights reserved.
6
Guided Practice (LSI Quadrant III):
Ask students to use the internet to find examples of disasters that have occurred at sports and
entertainment events. Then ask students to share the examples with the rest of the class and
explain the need for insurance.
Independent Practice (LSI Quadrant III):
Insuring the Event Project: Split the class into teams consisting of four students for a
brainstorming session. Students must select an entertainment venue and list all of the possible
risks associated with the entertainment venue. Then students prepare a PowerPoint
presentation that thoroughly describes the entertainment event and associated risks. The
PowerPoint presentation must also describe the insurance needed to cover risks associated
with the event.
The teacher will navigate the classroom to make sure that no two groups have the same
entertainment venue. The teacher should make sure that all team members are participating
and to plant ideas to generate stronger participation by team members.
Summary
Review (LSI Quadrants I and IV):
Question: What is insurance?
Question: What does liable mean?
Question: What are four strategies for managing risk?
Question: What is meant by controllable risk?
Question: What is risk avoidance?
Question: What is risk retention?
Evaluation
Informal Assessment (LSI Quadrant III):
Copyright © Texas Education Agency 2011. All rights reserved.
7
Instructor should observe the work ethic of individuals involved in the brainstorming event.
Instructor should move around the classroom to make sure that students are participating in the
independent group project. All students are required to contribute to the independent practice
PowerPoint activity.
Formal Assessment (LSI Quadrant III, IV):
Students will be evaluated on their “Insuring the Event” PowerPoint by using the assigned
rubric.
Extension
Extension/Enrichment (LSI Quadrant IV):
Liability and Insurance for Entertainment Event Project
1. Students conduct research to learn about liability insurance and the need for insurance
at major sports and entertainment events.
2. Students write case studies that highlight the need for liability insurance.
3. Invite an insurance agent as a guest speaker to explain liability insurance the cost of
insurance for a major entertainment event.
Copyright © Texas Education Agency 2011. All rights reserved.
8
Sports and Entertainment Marketing
Student Directions
Planning an Entertainment Event
Independent Practice (LSI Quadrant III)
Your team has been asked to research an entertainment event to prepare a PowerPoint
presentation. Your presentation must include the risks associated with the entertainment event
and what strategies the event planners can use to protect against the risks.
Copyright © Texas Education Agency 2011. All rights reserved.
9
Independent Practice (LSI Quadrant III)
Insuring the Event Rubric
20
15
10
Presentation
Well-rehearsed with
smooth delivery that
holds audience
attention.
Rehearsed with fairly
smooth delivery that
holds audience
attention most of the
time.
Delivery not smooth, Delivery not smooth
but able to maintain and audience
interest of the
attention often lost.
audience most of the
time.
Attractiveness
Makes excellent use
of font, color,
graphics, effects,
etc. to enhance the
presentation.
Makes good use of
font, color, graphics,
effects, etc. to
enhance to
presentation.
Makes use of font,
color, graphics,
effects, etc. but
occasionally these
detract from the
presentation
content.
Use of font, color,
graphics, effects etc.
but these often
distract from the
presentation content.
Content
Covers topic indepth with details
and examples.
Subject knowledge
is excellent.
Includes essential
knowledge about the
topic. Subject
knowledge appears
to be good.
Includes essential
information about
the topic but there
are 1-2 factual
errors.
Content is minimal
OR there are several
factual errors.
Organization
Content is well
organized using
headings or bulleted
lists to group related
material.
Uses headings or
bulleted lists to
organize, but the
overall organization
of topics appears
flawed.
Content is logically
organized for the
most part.
There was no clear
or logical
organizational
structure, just lots of
facts.
Sources
Source information
collected for all
graphics, facts and
quotes. All
documented in
desired format.
Source information
collected for all
graphics, facts and
quotes. Most
documented in
desired format.
Source information
collected for
graphics, facts and
quotes, but not
documented in
desired format.
Very little or no
source information
was collected
CATEGORY
5
Total Points Earned ________
Copyright © Texas Education Agency 2011. All rights reserved.
10