Sport Facility Management:
Organizing Events and
Mitigating Risks
Chapter 1
Introduction
Preliminary Thoughts
• Common Denominators in
Sport and Entertainment
 Event
classification
 Type of facility
 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
 Owner
of Fox Sports, LA Dodgers, Sky TV
• NFL
 Kurt
Warner played in NFL Europe
• MLB
 Plays
in Mexico, Japan, Puerto Rico
• World Cup 2002
 Brazil
v. Germany in Japan
Sport Facility Management: Organizing
Events & Mitigating Risks
Violence
• 1972 Olympics
Palestinian attack
on Israelis
• 1996 Olympics
Bombing in Atlanta
• 1999
Metal detectors
installed before
high school
basketball game
• 2002 College Football
 Brawls
 Fans tearing down
goalposts
• Crowd Management
Philosophy
 Foreseeability
Sport Facility Management: Organizing
Events & Mitigating Risks
September 11th, 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
 ATTM
• “Smart” fan cards
• Wireless at seats
Sport Facility Management: Organizing
Events & Mitigating Risks
Conclusion
• 2001-2002
 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
 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
 Double
check
 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
 Keep
public subsidy to minimum to expand
cash flow
• Private
 Emphasis
price
is on stockholder wealth and stock
• Combination
Sport Facility Management: Organizing
Events & Mitigating Risks
Financing Options
• General obligation bonds
 Backed
by government and require taxes
• Revenue bonds
 Tax
from specific sources
• COP (Certificate of Participation)
• TIF (Tax Increment Financing)
• Other
Sport Facility Management: Organizing
Events & Mitigating Risks
Financing Options
(cont.)
• Public and private cooperation
 Revenue
bonds backed by sales tax
 Naming rights and arena revenues
 Land taxes
 Club seating
Sport Facility Management: Organizing
Events & Mitigating Risks
Financial Team
• Examples
 Facility
manager/staff
 Business plan consultant
 Architect
 Construction manager
 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
 New
jobs, attracts new fans, etc.
 “Minor League City”
 Multiplier effect
• Private financing supporters
 New
stadiums do not create, they redistribute
 Other activities lose participants
 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
 Privatization
shift
• 1990s
 Most
facilities funded publicly
 However, managed privately
• Public-private partnership
 Efficiency
and effectiveness
Sport Facility Management: Organizing
Events & Mitigating Risks
Rationale for Utilizing PublicPrivate 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
 Contracting
out or outsourcing
 Franchising
 Commercialization/service
shedding
 Tax
expenditure
 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