PET 5479 – Sport and Leisure Facility Management

1. PET 5479 – Sport and Leisure Facility Management

2. Chapter 1 - Introduction • I. Globalization of Sport • A. Sport is one of the 10 largest industries in the U.S.( Over 190 billion dollars). • B. There is a demand of for expertise in managing international events and facilities. • C. The global impact on professional and collegiate sports.

3. II. Violence at Sport Events • A. The 1972 Olympic Games (Palestinian terrorist attack on Israeli Olympians) • B. The 1996 Olympic Games in Atlanta • C. Several fights at professional, collegiate and high school games. • D. Legal responsibilities of facility managers (Leger vs. Stockton) – Threats of violence should be taken seriously and preventive measures should be in place.

4. E. Sport in today’s society has moved from spectator-based to entertainment (individual seats, club seats, luxury suites, etc.) • F. Technology and Sport – Smart cards for ticketless entry into games; purchasing tickets via internet; ordering merchandise and concessions using wireless technology. • G. Construction of Sport arenas/stadiums has increased by 23% (pre 2008)

5. Chapter 2 – Planning and Producing an Event • A. What is event management • - A social and technical process that utilizes resources and influences human behavior to accomplish an organization’s goals. • - The planning and production of events through organization, communication, and the use of human and technical resources.

6. The Event Triangle (Participants, Sponsors, Spectators ----Event Manager) • B. Steps in Planning and Producing the Event • 1. Event goals and objectives • 2. Identify strengths, weaknesses, opportunities, and threats (SWOT)

7. * Opportunities and threats are usually found outside of the organization’s environment (e.g. media exposure, potential sponsorship, etc….lack of resources to address unexpected problems, low attendance, etc.)

8. 3. Develop and Monitor the Planning Process • a. Scheduling (computer programs) • b. Assigning staff to specific duties and responsibilities • c. Monitoring the process (viewing the big picture) 4. Event Logistics a. Creating a checklist of specific tasks to be completed

9. b. Delegating specific duties • c. Creating a timetable for completion of tasks • d. Methods of effective communication • e. Empowering staff to make decisions and solve problems when appropriate. • f. Create or develop training sessions for specific jobs if needed.

10. 5. Event Volunteers • - Cialdini’s rules of influence: • a. Reciprocation (motivate by giving tangible or intangible benefits –T-shirts, hats, public recognition, chance to meet celebrities, etc.). • b. Commitment and consistency • c. Social proof (model proper and professional behavior) • d. Liking (volunteers cooperate and respect people they like and admire)

11. e. Authority (Managers who display good control, problem solving skills, knowledge, and authority are usually well respected by volunteers and staff members) • f. Scarcity (Volunteers like to feel as though they are a part of a special and elite group of people. Stress upon them that this is an opportunity that can be of great value in the future). • g. Draft and Conduct Pre-Event and Post-Event Briefings (Discuss the positive and negative activities that occurred)

12. h. Event Cleanup and Closeout • i. Accounting and Reconciliation (Proper inventory of equipment and supplies, rentals, payments to vendors, distributors, information to media, publicly thanking sponsors, guests, etc.)

13. Chapter 3 – Financing Sports Facilities I. Financing sports facilities can be a complex and political issue that must be studied extensively before decisions are made. - Advantages and disadvantages of financing facilities for professional teams. - Financing facilities for colleges/ universities and communities.

14. Financing cont. A. Types of facilities and there objectives a. Private (to increase investors or shareholders wealth) b. Public (to minimize cost and expand revenue or cash-flow) • In many cases, financing sports facilities occurs as a combination of both public and private funds.

15. Financing cont. B. What are the methods of acquiring financing for sports facilities? 1. Bonds (revenue and general obligation bonds) – A fixed-income investment for which the issuer (e.g. state or local government) promises to pay a fixed amount of interest to the purchaser (you or me), including the principal at the maturity date. a. revenue bonds – tax revenues from hotels, restaurants, tolls, cigarettes, etc. are used to pay the debt. b. general obligation bonds – revenue secured through property taxes (the higher the value of the property, the higher the taxes).

16. Financing cont. * Why are bonds issued or used? - State and local government (and other agencies) have borrowing needs in many areas (e.g. to build roads, bridges, new schools, stadiums, arenas, auditoriums, etc.)

17. Financing cont. • Principal Issuers of Bonds a. U.S. Treasury b. U.S. Government Agencies c. State and local government (municipalities) d. U.S. Corporations e. Foreign Corporations

18. Other types of funding strategies 2. Certificates of Participation (COPs) • The government or municipality establishes a corporation to raise money to build the facility, then leases back the facility to a group or organization to help pay the debt for construction and maintenance. 3. Tax Increment Financing • Primarily based on the increased value of the land or property located near the new facility. The increase taxes are used to help repay the bond or debt.

19. Financing cont. C. Public and Private Cooperation - This is usually accomplished when the public sector funds the project/facility and the private sector agrees to commit to specific revenue sources. • Example (revenue from private sector) - Rent/Lease Payment - Premium seating - Naming Rights - Vendor/Contractor fees - Parking fees, etc.

20. Financing cont. D. Who should be on your sports facility financing team? • Owner, President, Director of Program • Facility Manager • Consultants • Underwriter (investment banker) • Contractor • Architect • Legal Counsel, etc.

21. Financing cont. E. Things to consider when constructing a sports facility (pg. 34-35) 1, Purpose of facility 2. Needs of the community 3. Preconstruction or design phase (start/completion of project, cost, etc.) 4. Planning committee 5. Use of consultants and individuals with expertise in building sports facilities 6. Legal concerns (risk management plan), etc..

22. Financing cont. • F. What is the importance of cash flow? • Cash is defined as money in the bank or securities (money market funds) with less than three months maturity. • Cash flow helps to finance postseason play, stadium maintenance, and other unexpected expenses.

23. Financing cont. • Examples of cash flow (received): a. ticket sales b. concessions c. licensed merchandise d. litigation settlements, etc. • Examples of cash flow (payouts) a. Salaries/wages b. Payment of taxes (private facilities) c. Purchase of goods and services d. Refunds to customers (ticket sales, etc.)

24. Financing cont. G. Public v. Private Financing (Pros & Cons) - Proponents (argues that a new stadium will bring new jobs, attract new fans, increase tax revenues at hotels, restaurants, etc.) - Opposition (argues that a new stadium does not attract new money/revenue, it only redistributes what is already there; the jobs created and the tax revenue generated are too small to make a difference in the local economy)

25. Financing cont. II. Funding College/University Facilities—Sources Available a. Institutional funds – Funds appropriated specifically for facilities. b. Revenue from athletic events c. Fund-raising activities d. Student fees e. User fees f. Corporate funding (part of fundraising)

26. Chapter 4 - Privatization A. Privatization Defined – A form of public service delivery that involves the commercial (private) or not-for-profit sectors in delivering the service. - Privatization frequently occurs in the facility construction and event management of sports. - In the 1990s, four out of five dollars spent on stadium construction came from public funds; however, the management was mostly private. (Public-Private Partnerships)

27. Privatization cont. B. Rationale for Public-Private Partnerships 1. To increase efficiency and effectiveness of service. 2. Cost effective (save money) 3. Competition (forces the private company to deliver exceptional customer service or face a non-renewal contract).

28. Privatization cont. C. Types of Public-Private Partnerships 1. Contracting out (outsourcing) – Example: food service vendor; grounds/maintenance; and franchising (giving the private firm exclusive rights to provide service in a particular area….rights to all concessions in the stadium). 2. Commercialization – A company is allowed to completely take over services that was once provided by the government (e.g. youth sports programs; arts/community festivals, etc.)

29. Privatization cont. 3. Tax Expenditure Privatization – When the government offers tax incentives to organizations to produce a public service.

30. Privatization cont. D. Event Promotion and Management 1. Since the 1984 Olympic Games in Los Angeles, several traditionally publicly operated events have been secured by private funds. a. The Southern California Olympic Organization and the Los Angeles Olympic Organizing Committee (both private groups) were successful at promoting the games as a private event (surplus of $230 million)

31. Privatization cont. b. What were the “key factors of success” used by the private Olympic groups? 1. Superior infrastructure (participation of local and state government; community groups; politicians, etc.) 2. Creative event management (good promotion and marketing strategies…e.g. sponsorship for the Olympic torch relay) 3. Television revenue 4. Corporate sponsorship

32. Privatization cont. E. Stadium Financing and Construction - Many sports stadiums-especially professional sports- are financed through public funds; however, there are a few excepts: 1. Pacific Bell Park (Giants stadium) – Financed through naming rights, concession rights, and sponsorships (Pacific Bell paid $50 mil for naming rights) 2. Pepsi Center (Home of the Denver Nuggets & NHL Avalanche) – Financed through game ticket sales; concerts and rodeos; luxury boxes; parking, etc. (See Figure 4.1)

33. Privatization cont. F. Private Sport Facility/Event Management * The increase of public facilities outsourcing the management functions to private organizations. 1. SMG is the single largest facility management company in the U.S. (As of 2003, SMG manages 156 facilities – 63 arenas, 7 stadiums, 31 performing arts centers, 44 convention centers, and 11 recreation facilities) 2. Global Spectrum is the second largest company (manages 31 facilities)

34. Privatization cont. G. Benefits and Drawbacks of Privatization: a. Benefits (proponents views) 1. Quality service 2. Efficiency 3. Increase in number of jobs 4. Lower labor cost 5. Competition for contracts (leads to improved service) 6. No Unions

35. Privatization cont. b. Drawbacks (opponents views) 1. Leads to lower paying jobs with no benefits. 2. Economically inefficient 3. Government is still responsible for quality control. 4. What happens if the company goes out of business? .. Govern- ment has to take over. 5. Naming Rights...The company’s name could become a liability (e.g. Enron)

36. Chapter 5 – ADA Requirements A. The Americans With Disabilities Act (Public Law 101-336) – The most significant piece of legislation created to protect the rights of those with disabilities. 1. A disabled person is defined as: a. A person with a physical or mental impairment that substantially limits one or more life activities (cancer, mental retardation, AIDS, etc.). b. Having a record (medical) of such impairment. c. Is regarded as having such an impairment.

37. ADA cont. B. History of ADA 1. Signed by President George H. W. Bush in 1990. 2. The ADA began with the Occupational Safety and Health Administration (OSHA) in 1970… OSHA created specifications for equipment, maintenance, and safety in construction. 3. The first set of laws was the Rehabilitation Act of 1973. 4. Later, Public Law 94-142 was established (Education for children in a “least restrictive” environment)

38. ADA cont. C. Components of ADA 1. Discrimination in employment 2. State and local government concerns 3. Public accommodations 4. Telecommunications 5. Miscellaneous category

39. ADA cont. D. Sports Facilities and the ADA (Management issues and concerns) * The ADA regulations insure that: 1. Reasonable accommodations should be made for those with disabilities. 2. People in wheelchairs have options for seating prices (They should not be isolated and their line of sight is comparable to others in the arena). 3. Newly constructed stadiums with over a 300-person capacity (a minimum of six seats be available in more than one location. 4. Building codes - -state and local laws determine guidelines for new construction.

40. ADA cont. E. Public Accommodations Defined: (pg 60) 1. Places of Lodging (Ski Resorts, vacation hotels, etc.) 2. Places of recreation (Parks, zoos, etc.) 3. Places of public gathering (Auditoriums, conventions centers, etc.) 4. Places of education (elementary and secondary schools; universities) 5. Etc.

41. ADA cont. F. What is Readily Achievable? * The law states that … All places of public accommodation must move all barriers to access as long as such access is “readily achievable.” … If services cannot be provided, new services need to be created. - Guidelines are clear for new construction; however, old facilities are more complicated. - Table 5.1 (pg 62) A Test for determining “Readily Achievable.” - Table 5.2 (pg 62). Remedies for barriers

42. ADA cont. G. Facility Alterations and Cost * The law stipulates that accommodations do not need to exceed 20% of the cost of renovation. 1. Removing seats or leveling floors for wheelchair entrance. 2. Installing communication aids (telephones) for the deaf. 3. Accessible drinking fountains; etc.. 4. Cost (Regulations are not intended to impose undue hardship on sports owners. - Tax breaks (Internal Revenue Codes #190 & 44) Code #190 - allows up to $15,000 expenditures deducted; Code 44 - If they qualify, small business can receive a credit of 50% of the accommodation’s cost.

43. ADA cont. H. Exemptions (Private and/or religious organizations) 1. Private organizations are exempt from ADA requirement. 2. However, if the establishment is open to the public or advertised in a public medium, it no longer holds private status.

44. ADA cont. • Planning for ADA Compliance 1. Managers should review ADA requirement carefully. 2. Facility inspections for ADA compliance should occur regularly. 3. Train staff members to identify compliance issues. 4. Hire a consultant to assist with training and development.

45. ADA cont. J. Specific ADA Compliance Areas 1. Parking areas (parking spaces) 2. Entranceways (a minimum of 60” X 60” of level space for maneuvering) 3. Public restrooms (specific heights are required for mirrors and towel dispensers) 4. Water fountains (specific heights and easy control buttons are required) 5. Etc..

46. ADA cont. K. Case Law (pg. 65) 1. Anderson v. Little League Baseball 2. Montalvo v. Radcliffe

47. Chapter 6 – Hiring Personnel • Application Exercise (Pg. 73) • Introduction 1. Numerous lawsuits involve employment practices that facility managers should be aware of. 2. Inadequate hiring decisions and loss of productivity are common issues related to employment practices.

48. Hiring cont. B. Human Resources 1. The goal of Human Resource Management is to help the organization/company meet its short and long-term objectives. 2. The objectives generally include staffing, promotion, evaluation, retention, benefits, and personnel policies and procedures. 3. The human resource manager is the most important person to give advise dealing with personnel concerns related to state and federal laws/statutes.

49. Hiring cont. C. Preparing for the Job Announcement 1. Structure the job analysis (determine the need for the position and the role of the individual) 2. Identify the job responsibilities 3. The position should be identified on the organizational chart (line of authority) 4. Conference with the office of EEOC

50. Hiring cont. D. Writing the Job Description 1. Job Title 2. Duties and Responsibilities (specific) 3. Job Qualifications (training, experience, degree requirements) 4. Starting and Closing Dates 5. Contact Person Information * Job descriptions should be based on bona fide occupational qualifications (BFOQ)…. discrimination is acceptable if the job requires specific skills (e.g. bilingual, heavy lifting, etc.)