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Sports marketing ethical issues
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Due to the nature and complexity of contracts, agents are expected to have a background in contract law and be knowledgeable in finance, business management, financial and risk analysis, and of course, sports. In order to be a successful sports agent one must not only be a great negotiator, but also be highly motivated, have exceptional communication skills, be prepared to work long hours and handle multiple tasks at the same time.
An agent must be able to apply effective marketing principles. The “Four P’s” of marketing are:
1. Product (or Service) - What does the athlete want from the agent? What needs does the agent satisfy?
2. Promotion- How is the agent successfully promoting the athlete?
3. Price- What value does the athlete give the team? What are other players of the same caliber being paid?
4. Place- Where do fans look for the athlete? What are fan’s perceptions of the athlete? What are competitors doing?
The service that the athlete requires of the agent is that the agent be loyal, trustworthy, and always looking out for the best interests of the athlete. Agents that can effectively communicate the athlete’s worth and successfully negotiate the best possible deal for the athlete, whether it is an employment or endorsement contract are ideal for an athlete. Successful promotion of the athlete’s career, assets both physical and intangible, and other opportunities the athlete can bring to the team/product is an essential part of whether an agent is successful or not. The price is the price negotiated in the contract. An athlete is looking for the best deal possible in order to provide for himself and his family. In order to retain clients an agent must always be able to get his client the best deal possible and create ot...
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... allow athletes to get loans from agents makes sense. (2012, March 20). Josh Luchs' proposal to regulate agent loans good for college sports. Retrieved April 7, 2014, from
13. Roberts, D., & Torre, P. (2012, April 16). Jerry Maguire Aspires to be you. Sports Illustrated, Vol. 116 Issue 16, p 50.
14. Shank, M. D. (2009). Sports marketing: a strategic perspective (4th Ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.
15. Shropshire, K. L., & Davis, T. (2008). The Business of Sports Agents (2nd Ed.). Philadelphia: University of Pennsylvania Press.
16. Upton, S., & Sports, E. (2013, July 1). Most NCAA Division I athletic departments take subsidies. USA Today. Retrieved March 10, 2014, from
The proposal of payment toNCAA student-athletes has begun major conversations and arguments nationwide with people expressing their take on it. “This tension has been going on for years. It has gotten greater now because the magnitude of dollars has gotten really large” (NCAA). I am a student athlete at Nicholls State University and at first thought, I thought it would be a good idea to be able to be paid as a student-athlete.After much research however; I have come to many conclusions why the payment of athletes should not take place at the collegiate level.The payment of athletes is only for athletes at the professional level. They are experts at what they do whether it is Major League Baseball, Pro Basketball, Professional Football, or any other professional sport and they work for that franchise or company as an employee. The payment of NCAA college athletes will deteriorate the value of school to athletes, create contract disputes at both the college and professional level, kill recruiting of athletes, cause chaos over the payment of one sport versus another, and it will alter the principles set by the NCAA’s founder Theodore Roosevelt in 1906. Under Roosevelt and NCAA, athletes were put under the term of a “student-athlete” as an amateur. All student athletes who sign the NCAA papers to play college athletics agree to compete as an amateur athlete. The definition of an amateur is a person who “engages in a sport, study, or other activity for pleasure rather than for financial benefit or professional reasons” (Dictonary.com).
Sports Agents have not been around for a long time. “Until the 1970’s, very few players had agents because teams would not deal with agents (Masteralexis, 244).” Many times players found that having an agent was a disadvantage to them. For example, “In 1964 Jim Ringo brought his financial advisor (agent) to help negotiate a contract with Vince Lombardi of the Green Bay Packers. Lombardi excused himself for a minute, when he returned he told the agent that he was negotiating with the wrong team (Masteralexis, 244).” Agents had been around since prior to the 70’s, but were few and far between. C. C. “cash $ carry” Pyle is though to be the first Sports Agent. The first account of negotiations came when Pyle “Negotiated a deal with the Chicago Bears for Red Grange to earn $3,000 per game and $300,000 in endorsement and movie rights (Masteralexis, 244).” A few years later Babe Ruth allegedly consulted sports cartoonist Christy Walsh to serve as his financial consultant through the depression. These early accounts are the beginning of the Sports Agent. It took years for the agent to develop however.
6) Clark, Liz. “Athletes Say They Deserve to Be Paid.” Charlotte Observer. (Charlotte, N.C.). April 3, 1994: pg. 4G. Sports. Eleanor Goldstein. Vol. 4. Boca Raton: SIRS, 1994. Art. 65.
Johnson, Dennis A., and John Acquaviva. "Point/counterpoint: Paying College Athletes." The Sport Journal 15.1 (2012). Questia School. Web. 3 Dec. 2013.
Zimbalist, Andrew S. Unpaid Professionals: Commercialism And Conflict In Big-Time College Sports. Princeton, N.J.: Princeton University Press, 1999. eBook Collection (EBSCOhost). Web. 27 Mar. 2014.
The role of the sports agent is said to have emerged almost a century ago in the mid 1920s when football player Red Grange hired a “personal representative” to negotiate a contract based upon performance. Grange was the first professional athlete whose contract was based upon his performance along with the fans that his celebrity attracted to the games he played in. Since then most professional athletes hire personal representatives known now as sports agents to work out the details of their playing contracts along with securing other forms of income with the agreement that the sports agent will be paid a percentage of the contract that is completed. Though a sports agents primary role is to maximize the value of what
The role of the sports agent is said to have emerged almost a century ago in the mid 1920s when football player Red Grange hired a “personal representative” to negotiate a contract based upon performance. Grange was the first professional athlete whose contract was based upon his performance along with the fans that his celebrity attracted to the games he played in. Since then most professional athletes hire personal representatives known now as sports agents to work out the details of their playing contracts along with securing other forms of income with the agreement that the sports agent will be paid a percentage of the contract that is completed. Though a sports agents primary role is to maximize the value of what
Athlete Endorsements – What’s in a Name." The Business of Sports. Wordpress. Web. 12 Sept. 2011.
College athletes do a lot for their universities, but they do not seem to get much in return. They make millions for the NCAA and the university itself, but they do not get to keep any of the money they make. The best thing a student athlete can get is a full scholarship, which is great, but might not be enough. For many athletes, the ideal situation is to make it big and go professional after college, but that does not happen very often. Even the lucky few who make it, may end up getting screwed since they go from having no money to being rich. That sounds great, but how likely is it that they know how to manage their money so they can stay wealthy? Having an agent or financial advisor in their college days could help, but the NCAA forbids it. The NCAA is a growing program but is has to make some changes if it wants to be fair to the student athletes associated with them. These changes should include granting student athletes stipends, better rules for agents, and clearer scholarships.
family. In the sports industry, your whole life has to be dedicated to the game and keeping the
Some universities actually profit off of their sports teams (i.e. Ohio State football, Kentucky basketball), meaning that the athletes of these teams are indirectly providing means of revenue to their schools. Some believe that the least the schools can do in return for the athlete’s hard work is to provided them with a monthly stipend with a set amount of money—especially when the athletes are allowing a flow of profit to come into the
Introduction Intercollegiate athletics has evolved overtime, there has been tremendous change in college athletics and so has the organization—National Collegiate Athletic Association (NCAA), that was established to protect football players from the flying edge formation (Johnson, 2003). One such change that has taken place is the commercialization of college sports. Intercollegiate athletics has been commercialized in a variety of ways, including sponsorships, donations and endowments, to mention a few. About sixty to eighty percent of generated revenue from big-time college sports programs comes from commercial sources (Wolverton, 2009). Very recently, the University of California—Berkeley and apparel manufacturer Under Armour signed a 10-year contract that is worth nearly $86 million.
“Labour Markets in Professional Sports” was written by Sherwin Rosen and Allen Sanderson from The Economic Journal, Vol. 111. No. 469 (Feb., 2001), pp. F47-F68. Sherwin Rosen (September 29, 1938 – March 17, 2001) was an American labor economist. He had ties with many American universities and academic institutions including the University of Chicago, the University of Rochester, Stanford University and its Hoover Institute. Rosen was chair of the Economics department at the University of Chicago. Rosen was a pioneer in the study of wages and why they vary. Allen Sanderson is a Senior Lecturer in the Department of Economics at the University of Chicago. A graduate of Brigham Young University and the University
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...
Recruitment can be the biggest day of any high school athlete’s career is the day they’ve been working so hard for which is the day that they sign with the college team that can possibly take them all the way to the professional league. This day is also something that parents wait for because of the hard work and time they’ve invested to make sure that their child becomes one of the best athletes to ever play professionally. There are many hours and money spent to make sure that their athletic star is set up the way they need to be in order to be scouted by the top Ivy League school or even a professional team such as the NBA/WNBA, NFL or