sports and entertainment marketing risk management copyright © texas education agency, 2011. all...

Sports and Entertainment Marketing

Risk Management

Copyright © Texas Education Agency, 2011. All rights reserved.

Copyright and Terms of Service

Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1) Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the

Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency;

2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency;

3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way;

4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged.Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee.

2 Copyright © Texas Education Agency, 2011. All rights reserved.

Risk Management

Risk-possibility of financial gain or loss or personal injury

Financial Loss business does not make a profit and has to

close loss of all of the money from owners and

investors personal injuries can occur if businesses do

not take the appropriate safety precautions


Categories of Risk

Natural Risk-storms, hurricanes, floods, droughts, ice storms Hurricane Katrina

• Greatly decreased the population of New Orleans• Hotels, restaurants, and other tourist attractions

lost months of business Ice Storms, Blizzards, Tornadoes

• People stay home• Outdoor events are cancelled


http://www.clipart.com/en/close-up?o=3170463&a=p&q=hurricane&k_mode=all&s=1&e=12&show=&c=&cid=&findincat=&g=&cc=37:24:12:3:2:35:0&page=&k_exc=&pubid=&color=&b=k&date=

Human Risk

Customer dishonesty Employee theft Employee incompetence Shoplifting, credit card fraud, bad checks Sports and entertainment events have

special security personnel to monitor events.


http://www.clipart.com/en/close-up?o=3936492&a=p&q=theft&k_mode=all&s=1&e=18&show=&c=&cid=&findincat=&g=&cc=134:0:41:0:3:4:22&page=&k_exc=&pubid=&color=&b=k&date=

Economic Risks

Changes in the Economy• Unemployment rate• Inflation• Discretionary income


http://www.clipart.com/en/close-up?o=3152490&a=p&q=inflation&k_mode=all&s=1&e=7&show=&c=&cid=&findincat=&g=&cc=11:0:7:0:0:15:2&page=&k_exc=&pubid=&color=&b=k&date=

Three Classifications of Risk

Gain or Loss Risk speculative risk-could result in a gain or a loss pure risk-chance of an event occurring that

could result only in a loss (flood-golf resort) Controllable Risk

loss can be prevented likelihood of the risk occurrence is reduced tornado-uncontrollable risk


Insurable Risk

Pure risk Chances of loss are predictable Amount of loss can be estimated Look at statistics for similar losses


http://www.clipart.com/en/close-up?o=3661593&a=p&q=risk&k_mode=all&s=55&e=72&show=&c=&cid=&findincat=&g=&cc=376:71:905:0:1:2:164&page=4&k_exc=&pubid=&color=&b=k&date=

Managing Risk

Preventing, reducing, or lessening the negative impacts of risk by using risk avoidance, risk insurance, risk transfer, and/or risk retention


Risk Avoidance

Avoiding risky situations takes planning on the part of sports and entertainment marketers.


Risk Insurance

Sports and entertainment businesses contract with insurance companies and other financial institutions to cover their risk of financial loss.


http://www.clipart.com/en/close-up?o=3662148&a=p&q=insurance&k_mode=all&s=1&e=18&show=&c=&cid=&findincat=&g=&cc=88:0:105:0:4:28:29&page=&k_exc=&pubid=&color=&b=k&date=

Risk Transfer

Contracting another company Statement on ticket saying the promoter is

not responsible for any harm to the ticket holder

Attendee agrees to be responsible for the risks


Risk Retention

Unpredicted low attendance at an event=loss

Unplanned bad weather


sports and entertainment marketing risk management copyright © texas education agency, 2011. all...

Documents