Sports Event Management - Example

Running head: Sports events management Sports events management Name Xxxxxxx Course Xxxxxxxx Lecturer Xxxxxxxx Date xxxxxxxxx Sports events of the magnitude of the Olympics, FIFA World Cup, Cricket World Cup, Formula 1 races and the International Association of Athletics Federations championships have been a main pursuit of major cities around the globe. In 2012, London hosts the Olympics which later on go to Chicago. The World Cup goes to Brazil after a successful hosting in South Africa. The Olympics and World Cup competitions are arguably the most sought after international commodities by countries and individual cities across the globe. This is characterised by highly competitive and bidding and competition for recognition in the value of hosting experiences. Literature has cited such events as being vital for economic development stimulation regenerating economies at various levels and enhancing international recognition. Given such, this paper presents a proposal focusing into event management in Australia for a FIFA World Cup 2012. It shall detail on the planning stage for elements of the event such as sponsorship relationships, community involvement, media relations, guests, event presentation and risk management. In addressing these aspects, this proposal will make use of event management theories as the underlying tenets. The Olympics have created a model now being borrowed by most events for aspects such as organization, community and media relations, and culture (Jordan, et al, 2011). Sports events and sponsor relationship Over the recent times, international sporting events have become an expensive undertaking for economies and cities. It is projected that the 2012 London Olympics will cost the U.K over £9.3 billion, a cost lower that the recent predecessor events at Beijing and Athens in 2008 and 2004 respectively (Ellen, 2010). It is clear that cities, organizing bodies and economies are faced with the challenge of finance, prompting the need for sponsorship. Sports events sponsorship is not just a good will act from the sponsor, but presents to both the sponsor and the sponsored a symbiotic relationship in which both there are potential gains. Essentially, the FIFA event entails exchanges image rights, media rights and other benefits accrued to the sponsor for financial support for the event organizers. Although there is an element of philanthropy in the deals and focus on corporate social responsibility, sponsoring companies such as Coca-Cola, Adidas, Puma and others have a focus on business gains hoping to maximize returns on their investment in the event. For success optimization, it is vital that event managers understand events sponsorship as being a mutually beneficial relationship. Arokallio and Tuominen (2006) suggest that sponsors have two main focuses: image and product enhancement in market scenarios and establishing stakeholder relationships. On the other side of the bargain, the sponsored gets supports from the sponsor in various ways such as cash, in kind, paid fees, rights of property. According to Tassiopoulos & Damster (2004), the sponsorship may also come in terms of grants, patronage and subsidized loans as crucial elements. Further, this relationship takes a social nature centered on the event and the emotions of the event. The event provides social energy into the relationship specifically with reference to the target audience. The use of sport sponsorship for marketing has gained in popularity as the event is a socially shared expression mode offering optimum conditions to create an emotional contagion for marketing purposes. The audience’s emotional stimulation and extent of interest are an effective quantitative measure of the projected value. For instance, the Olypmic model has incorporated culture as a fundamental component and for promoting nationalistic emotions. It is thus able to attract a wide audience. As Ferrand et al (2007) indicates, interest in an event is a dimension of commitment. Sponsor benefits have been categorized into 4: exposure, sales opportunities, customer hospitality and associative benefits (Supovitz, 2005). Events of the magnitude of the Olympics and FIFA World Cup have an ability to create a unique image with various target possibilities in the event stakeholders profile: shareholders, opinion shapers, athletes, spectators, media content consumers, the media, the states and local authorities, as well as international sports organizations. The uniqueness of the image and emotional sense shared make it possible for an event to amply avail all the benefits. As such, the success of this relationship is founded on having an understanding of how the event image can be directed. This is enshrined in establishing focused communication system. As Ferrand et al (2007) suggests, communications systems are vital in the sponsors’ and sponsored success in reaching event audiences who are the target. Media relationship As part of the communication system, the media and communication sectors are very vital considerations. Though this is an independent or unit aspect such an event as the FIFA world cup, it is enshrined in sponsorship with media relations being a replica of sponsor relations. With this view, it has been indicated that there are two types of sponsorship: on-site and media sponsorship. With reference to media sponsorship, the intended part of the market comprises distance targeted audiences. This makes a need for systems that regard viewers, readers, viewers and listeners. In this regard, organizing the World Cup requires that media contracts that are specific to the communication and marketing needs of the event, the needs of the sponsors and the targeted audiences be pursued. Media relations are a form of sponsorship and have to do with critical aspects such as sale of rights, duration, signals, as well as the extent of access exclusiveness. The sponsoring media provider buys provisions for promotion, logo and branding exposure. Given the centrality of this relationship, it is vital that the event managers focus on the relationship by first establishing underlying objective, appropriate and cost effective communication systems and the type of contracts they intend to explore for media communication and marketing. With reference to Television license agreements, Ferrand et al (2007) suggests that there is either maximum term of exclusiveness and/or information access. Exclusivity is one of the most significant aspects of the contract given the extent of competitive advantage created both for the media and the event. As such, it is vital to stipulate on the broadcasting obligations and exploitation packages with respect to rights. This will enable the event manager serve the interests of the media partner which include amongst other the pursuit for revenues, exclusivity, market share increases, signage and access rights. Different media groups have different needs and benefits to offer and thus require distinct consideration as potential partners and stakeholders. In dealing with them as potential partners, literature cites that they have more to offer (Bowdin et al, 2011). Further on, the role of media has been cited as having potential to shift from just a sponsor to a full-time partners. In the same stride, the event is able to accrue revenues from the media sponsorship deal, enjoy discounted publicity and advertising as well as coverage. In addition, media coverage is important for market research and public relations. Community involvement The hosting of any Olympics games and FIFA has far-reaching impacts, socially and economically, on the populations living in the hosting cities and the entire countries, at large. Economically, such events have pre-event and postevent growth implications with improved Gross Domestic Product GDP and infrastructural development. The economic gain is not just related to expenditure directly related with the games; there are even greater gains from the multiplier effect with bettered terms of trade. This has been seen in cities such as Sydney, Athens, Hong Kong, and very recently, South African cities. In South Africa, for instance, the 2010 FIFA World Cup tournament led to the development of new infrastructure and facilities. As such, it is vital that cities are able to leverage long-term benefits from the benefits accrued from the events such as the infrastructure, regeneration of the urban economy and international status. However, this leveraging is dependent on the cities’ ability to use the facilities and new infrastructure for economic gain (Yu, 2004). Socially, there are impacts on communities involved. This is with regard to social interaction with guests, skill and knowledge acquisition, cultural interaction and effects on cohesion as well as a social services. In the bid for 2012 Olympics, London’s success has been attributed to focus on regenerating London economically, socially and physically. As such Communities and Local Government (2010) indicate that the Communities Department need to achieve the objectives for employment growth, housing, social cohesion, and health and wellness in the on coming 2012 Olympics. The benefits accrued by the communities, local authorities of the involved venues and the countries imply that it is important that they get involved in the event management process- from the bidding process, pre-game preparation, hosting and postgames evaluations and interventions. However, it has been indicated that although games management processes have been previously run as representing community interests, there is minimal consultation at the community level. Citing this (Cashman, 2002) indicates that all contemporary games are characterized by some form of community opposition. The Sydney Olympics, for instance, was rocked with opposition as regarding development of facilities such as the Bondi Beach Volleyball Stadium. Further afield, the local government complained that local councils’ views were not taken considered. Such occurences have implications of reducing the community ownership of the event. As such the management may undertake specific measures to promote community and local government involvement in planning, implementation and evaluation. This is by considering specific needs of the needs of various community sectors and seeking representation of such in the management process. In the 2002 Commonwealth games of Sydney and other events, there has been a central way of community involvement, apart from representation: volunteering and students’ participation (Yu, 2004). Staging international sports gives an ample opportunity for local community members from all walks of life to participate as volunteers. This is a cost effective way of staffing the highly expensive events. In addition, it promotes the support for the event in the public thus enhancing delivery success (Yu, 2004). Guest management Visitor management entails event managers’ endeavor to optimize the experience of visitors as well as influence visitors’ number, type, distribution and behavior. In this regard, literature indicates that this management entails regulation of numbers, communication and concern for deterrence and enforcement (Newsome, David, & Moore, 2007). Mega sports events have unique images and are characteristic attractions with varied outcomes. Essentially, these outcomes and the uniqueness are sought after by event managers as they form the core of legacy (Thomson et al, n.d). Events are often motivated by visitor experiences and are consequently associated with richness of the experiences. As such, visitor management is highly essential in ensuring that legacies are made out of the events. To ensure this, it is vital that there is ample planning. This begins with visitor research which enhances marketing strategies to grow the number of audiences. Research is also vital to enhance visitor management and their experience. Marketing strategies need to be based on the knowledge about the expected visitors. Additionally, it is vital that they are categorized or segmented in order to enable the event managers to deliver each categories needs. Essentially, an international sporting has various visitors: athletes or players, officials, VIPs, visiting and hosting audiences. Each of these categories has varying characteristics. In any event, the major components of logistics include movement and supply. With reference to visitors, mega sporting events are characterized by massive movements. This has often been denoted in previous international events characterized by improvement of and development of new transport infrastructure and accomodation facilities. Accommodation requirements of various segments of the visitors must be take into consideration. This has been characterized by the development of athletic villages and new hotels of various classes. Ticketing is another key area of focus. Whereas printing and pricing is not a logistical aspect of the event, their distribution and collection is (Bowdin et al, 2011). It is vital that management has adequate ticketing plans as regarding the number, the method and outlets of distribution, as well as the types. There have been trends of using retail outlets and the internet for ticketing. As such, ticketing and marketing may be merged. Event presentation Staging an event is the critical point in management of events that implement the plan. According to Bowdin et al (2011), staging or presenting an event requires organization that is similar to theatrical production. Further, it is indicated in (Tassiopoulos & Damster, 2004), these events have a social nature and that emotions are inherent. As such, it is vital that its presentation is done in a theatrical way to heighten visitor experience. Staging of international events such as the Olympics is characterized with choreographed ceremonies, entertainment and performances. There are various reasons for this. Essentially, such choreography is used for experiential marketing. Using this concept, event hosts ensure that there is a legacy. The concept is based on a simple tenet: active consumer engagement through the stimulation of senses and emotions to entrench a positive memorable event (Davis, 2012). As such, these events will be opened with parades of nations, cultural performance and other activities. In addition to experiential marketing, these events have been platforms for cultural expression as well as nationalistic identity and pride. In this choreography, Bowdin et al (2011) suggests that there are several areas of concern: theme, programming, design, sound, lights,power, performers, and the stage. All these requires a decision that is artistic and creative. Corroborating this, Davis (2012) indicates that it is vital to creatively and artistically orchestrate timing which includes a calculated interludes between various activities, announcements, speeches, performances and statistics updates. Risk management Risk management is yet another aspect that is fundamental in the success of events. This refers to the management function that identifies potential risks and develop an adequate plan to eliminate or minimize the risk (Tassiopoulos & Damster, 2004). In spite of the magnitude of a sports event, the concern on risk, prevention of loss and enhancement of safety is crucial to all stakeholders. In addition, there has been an increase in the number of events, leading to a commensurate knowledge and awareness increase amongst stakeholders and increases in the potential for more risks. Events of the international magnitude such as the Olympics are particularly highly susceptible to risk due to the large number of people involved, extent of movements, and the emotional energy. As such, risk management should be included as an integral part of the event strategic planning. In undertaking the risk management process, there are several key areas suggested in the literature. Tassiopoulos & Damster (2004) suggest the need to do risk analysis, risk reduction initiatives, establishment of risk protection systems for unavoidable risks and implementing risk management plan. Bowdin et al (2011) suggests that management must understand the context before any step into the process. Contextualizing risk involves the consideration of aspects such as event type, stakeholder analysis, management structure and general risk environment analysis. Contextualizing is followed by risk evaluation and analysis, establishment of mitigation actions and finally evaluation of the process. At the core of this process, communication plays a very central role. This heightens the need for appropriately planned public relations. In conclusion, this paper has explored factors that are pertinent in delivering a legacy and consumer experience in sporting events. In spite of event size, there are several components that are core to any event management process. These include sponsorship, media and marketing, community involvement, visitor experience management, event implementation and risk management. It is vital to note that this list is not exhaustive. Essentially, it is vital to note that international event has a variety of stakeholders. As such, it is vital that management does segmentation so that it deals with each category with specificity as partners. This is also required to tap maximum potential from the social, cultural and economic benefits accrued by host destinations. Arokallio, M., & Tuominen, P. (2006). 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