Wharton Sports Business Club Blog

2010 San Diego State University MBA Sports Competition

2010-03-01T03:58:00.000-08:00

David Adelman, Kat O’Brien, Scott Roslyn and Jeff Wilen teamed up for the San Diego State University MBA sports case competition in late February. On Thursday morning, the nine teams (among them Columbia, NYU and San Diego State) went to Petco Park, where the San Diego Padres play, and were given the case they would be working on. This year, it turned out to be about the Padres, and each team had 24 hours to prepare its case and presentation. The presenting format was 20 minutes of presentation and 10 minutes for questions and answers, with four judges (three from the Padres and one a professor from SDSU). It was interesting to have to think through so many aspects and come up with solutions in that amount of time, but thankfully one of us (David) had consulting experience, so at least the case format wasn’t new to him. Georgetown wound up winning, but we put in a good showing and were pleased with the efforts.

After the winner was announced on Friday afternoon, there was a reception with time to visit with Padres executives, including owner Jeff Moorad, which was a great opportunity to really chat with top sports figures, and even talk with the Padres about some MBA internships they have planned. Later Friday evening there was another reception across the street at the bar atop the Marriott Hotel. We had the full day free Saturday, and got to experience a little more of sunny San Diego, a great change from February in Philly. We went for some fish tacos along with the SDSU organizer and a team from Hong Kong, and even got to walk on the beach. While it would have been great to bring home the prize, participating in the competition was a great and fun experience.

Article Contributor: Kat O’Brien

Basketball Agent Steven Olenick - April 16th

2009-05-16T09:11:00.000-07:00

Steve Olenick joined the Wharton Sports Business club over lunch to discuss his career path as a sports agent. Steve is a basketball agent with Entersport, LLC, one of the top agencies representing professional basketball players in the United States and abroad. Steve works with Mark Fleisher, whose current client roster includes Mehmet Okur and Andrei Kirilenko. Steve has worked within the sports representation industry for the past 8 years as an advisor and business manager for professional athletes. Prior to joining Entersport, Steve worked as an attorney for Paul, Weiss, Rifkind, Wharton & Garrison LLP in New York City, focusing on sports and media transactions.

Steve talked about the hard work, focus and ability to cultivate relationships that has helped him succeed as a basketball agent. We discussed a number of interesting topics during a wide-ranging hour long conversation:

NBA contracts. Interestingly enough, Steve said that the first contract for a player is typically very basic. Draft pick compensation is “slotted”, so there is not really a lot of room to negotiate an improved deal. Most of the value an agent can deliver during the first contact comes from their ability to land marketing deals, etc. The second contract is typically more complicated, and this is where you can see the deal-structuring ability and creativity of an agent pay off.

LeBron’s next contract. You might have heard, but there’s a rumor that LeBron might sign with the Knicks after becoming a free agent in 2010… One WSBC member said he’d heard that LeBron is looking for an equity stake in his next deal. Steve thinks that Dan Gilbert, the owner of the Cleveland Cavaliers, should strongly consider giving him an equity stake because if LeBron leaves for a larger market in 2010, the franchise value will take a very big hit anyway.

Overseas teams. In light of Josh Childress defecting to Olympiacos Piraeus, someone asked whether or not Steve thought this would become an emerging theme. He made several interesting points. First, the style of play of a typical NBA player does not necessarily translate well to the European game. NBA players are typically great athletes, but in games predicated upon spot-up shooting their ability does not always stand out. Second, Steve thinks the economic downturn will hurt the overseas market. Many of these owners are paying for players out of pocket. Russia in particular sets the market for players. Many of the Russian owners made their fortunes in oil, so the current economic downturn has hit them particularly hard.

Niche vs. mega-agency. Entersport, LLC focuses exclusively on basketball. One member of the audience asked what the pros and cons were of the niche vs. mega-agency approach. Steve thinks that the relationships IMG has are definitely helpful. However, he explained that a large agency like IMG will actually have in-house marketing and PR departments. In his opinion, if you have a great player, you can afford to hire a player-dedicated marketing and PR staff. In the end, the strength of an agent or agency’s relationships – both within the industry and with his players – is what will determine their success.

Overall, it was a very entertaining and enlightening hour. The Wharton Sports Business Club would like the thank Steve his time and condor in describing the life of a sports agent.

Article Contributor: Robert Sebastian

Digital Media Panel - March 23rd

2009-03-27T09:17:00.000-07:00

The Wharton Sports Business Club hosted a digital media panel and reception on Monday, March 23rd. John Ourand, who writes for the Sports Business Journal, served as the moderator for the discussion. The panel consisted of Neal Pilson (Pilson Communications and Former head of CBS Sports), Sara Jeon (VP, Content and Strategy, Sling Media), Kyle Ragsdale (VP, Business Affairs, SB Nation), and Neal Scarborough (VP, Digital Media, Versus Network 2).

Ourand wasted no time in getting started, asking Neal Pilson – the former head of CBS Sports – if the TV networks were a dying breed. Pilson suggested that, while the broadcast networks have recently been referred to as dinosaurs, they are at the very least adaptive dinosaurs. They still have the muscle and reach necessary to be dominant players. He believes networks will continue to be heavily involved in digital rights, because the coordination of broadcast, cable, mobile and internet are all still controlled and orchestrated by the broadcaster.

The follow up question was whether or not broadcast networks can effectively compete with subscriber based channels, specifically ESPN. Ourand framed the question by saying that he couldn’t remember the last time he had seen Rupert Murdoch get outbid, as he had been when ESPN outbid FOX for the rights to the BCS Series starting in 2011. Pilson agreed that ESPN may well dominate, saying he expected ESPN to be very aggressive when the next digital rights come up. It is very difficult for broadcast networks to compete with ESPN, which garners ad revenues like a broadcast network and then augments them with over $4 billion annually in subscription fees (~$3.70 / subscriber / month x 12 months / year x 98 million subscribers). CBS may look to create a competitive counterbalance to ESPN / ABC by looking at Turner, but even Turner only commands around $0.70 per subscriber – a far cry from ESPN’s premium. Pilson contended that political fall out is often the only barrier to ESPN because it can be difficult to justify airing a major sporting event on cable at the expense of the ~15mm US households that don’t get cable. That said, Pilson suggested that the NCAA would almost certainly explore its options for its hugely popular Men’s College BB Tournament contract. It has the right to opt out of this contract with CBS after this year’s tournament, and Pilson sees ESPN to be the likely top suitor.

Neal Scarborough weighed in on his experience at Versus Network. The Versus Network 2 is home to college football, bull riding, cycling, hunting and fishing and other niche sports. Currently he is focused on strengthening the brand and enhancing Verus’ online offering.

Next up was Sarah Jeon from Sling Media, creator of the popular Sling Box. Sling Media was established in 2004 and acquired by DISH Network in 2007 at a valuation of around $380 million. Sarah heads the Sling.com online effort, which is a professional-only video site that partners with content creators. Currently, Sling.com offers over 90,000 videos for free including shows, movies, sporting events and highlights. They are streaming some sporting events live, such as the Masters per an agreement with CBS. ESPN, on the other hand, does not share its content, in part because they have their own broadband sites. Interestingly, Neal Scarbrough said Versus is happy to share content with Sling.com because, at this point, they are more concerned with developing brand recognition than subscription fees per se.

Kyle Ragsdale gave us a view into the blogosphere’s role in sports while describing SB Nation. Kyle joined SB Nation after embracing the blogosphere as the associate director of media relations in the Georgetown athletics department. SB Nation was created over four years ago when a displaced Oakland A’s fan realized how hard it was to get quality coverage of his favorite team. It has since evolved into a collection of nearly 200 individual blogging communities, oriented around major professional and college teams. Each team’s blog has an editor under contract with SB Nation, whose role is to moderate content. SB Nation depends upon an ad-driven revenue model.

In response to Ourand’s question, the panelists generally agreed that they were not concerned about potential knock-on implications of newspaper’s demise. As Kyle Ragsdale put it, SB Nation’s content is going to continue whether the Kansas City Star exists or not.

Neal Scarbrough fielded a question regarding Versus’ support of nascent sports such as MMA. The question asked whether or not he was concerned about the prospect of helping grow a sport and then losing the rights to a bigger competitor. Scarbrough that, to the contrary, Versus is fully aligned with the growth of new sports they promote. Though Versus stops short of altering the content and character of a sport, they do provide advice on how to market it. Interestingly, Scarbrough’s primary concern with emerging sports was not that they would outgrow the channel, but rather that the reallocation of airtime would marginalize the sports on which Versus was built (hunting, fishing, hockey, etc.).

After an excellent panel, the panelists and attendees continued the discussion over food and drinks at a reception in MBA Cafe. The WSBC would like to thank the Wharton Sports Business Initiative for their generous support, and each of the panelists for their time and insight into the world of digital media in sports.

- Rob Sebastian WG'10

Parody As We Know It

2009-03-27T09:12:00.001-07:00

As we conclude the first weekend of the NCAA Tournament, one thing has become increasingly clear when looking at the final sixteen teams remaining. The top programs in the country have reestablished their dominance over the 393 school landscape of college basketball. Every one of the top three seeds have advanced, and the lowest remaining seed, Arizona, is one of the preeminent programs in the country. So what happened to the Davidsons and George Masons of the world?

As far as I can remember, the NCAA Tournament has been the residence of Cinderella; the place where any team that makes it can grind out an upset that will have the whole country buzzing, delivering us images of Steph Curry and his textbook stroke gracing newspapers and websites everywhere. This year, there are no such images; instead we are given the powerhouses, five Big East teams demonstrating that they are, in fact, the consensus conference of choice.
Jay Bilas made the argument that this year is a “down” year for the mid-major teams, but that seems to go against the grain of what is happening with basketball in this country. With top college players staying in school for only one season, it would appear that the top programs would have difficulty reloading with talent as they have in the past. This would seemingly level the field and provide increased opportunities for the smaller programs to achieve the much desired upset.

In football, we all believe that the best teams come from the BCS conferences and the traditional powers. There will always be a Boise State, but in general, most agree the only programs that have a real chance at the National Championship come from the big six. In basketball, however, we have been trained to think differently. The fact that there are no mid-majors remaining in the Sweet 16 certainly must make us think twice about the reality of parody in college basketball today. Regardless of who comes out on top, it will be a program that is no true surprise; a team that countless fans, pundits, and “experts” chose before Thanksgiving.

So does this Tournament bring us true excitement? I certainly think so. While it is always nice to see a story such as Davidson, the reality is, we, as Americans, are only interested in sports at their highest level. The remaining programs have the best talent, coaches, staff, facilities, and resources. This year, decades of developing powerhouse programs have certainly paid off, as we are left with the cream of the crop.

- Andrew Chun WG'09

San Diego State Case Competition

2009-03-06T08:52:00.000-08:00

The Wharton team had a great time at the San Diego State Business Case Competition. The task, to find a creative way to use the 2010 World Cup to promote non-profit organizations aimed at eliminating Malaria in Africa, was very timely and relevant. Although our Wharton team did not take home the trophy we really enjoyed the process. Who can complain about preparing a case while sitting in a private box at Petco Park and interacting with executives from the San Diego Padres? The competition was also a great opportunity to meet MBA students from other programs who are interested in sports; the nine teams came from all over, from Oxford to Columbia to nearby UCLA. San Diego State was an amazing host, the whole competition was extremely organized and to conclude our beautiful San Diego weekend we spent an afternoon racing two sailboats that had formerly raced in the America’s Cup! The team would like to thank the Wharton Sports Business Initiative for their generous support that made our participation possible.

Professor Panel Series - Professor Reibstein - Nov. 18th

2008-11-28T08:02:00.000-08:00

As part of the Professor Panel Series, Professor David Reibstein hosted a session entitled “Exploring Ways to Increase Interest in Major League Baseball”. He discussed his time working on a panel with MLB commissioner Bud Selig and fielded questions and comments from the audience on the state of the game.

Professor Reibstein recalled a day several years ago when he fielded a call from a man claiming to be “Bud Selig”. Convinced that it was one of his friends masquerading as the Commissioner of Baseball, it took Professor Reibstein several minutes to finally realize that he was, in fact, talking to the top man in Major League Baseball. Selig asked to join a panel comprised of those with a vested interested in baseball’s welfare. The panel included executive from ESPN, Pepsi, and TBS, pitchers Tom Glavine and Al Leiter, two team owners, MLB union (“MLBPA”) chief Donald Fehr, Bud Selig and Washington Post writer George Will. Bud Selig brought them together at least once a month to consider all aspects of the game that could be addressed to make the game more marketable to a dwindling and aging fan base. Professor Reibstein proceeded to discuss a litany of ideas, some of which were eventually implemented.

Shortened season. The panel considered shortening the season, which currently runs 162 games. One proposal would shorten the regular season to 154 games, and introduce another round of the playoffs and a 2nd Wild Card team for each league, thereby expanding the playoff field from 8 teams to 10. Professor Reibstein ran scenario analyses in order to determine how much longer each team would be “in contention” due to the addition of a 2nd Wild Card slot in each league. Revenues would benefit from the addition of an extra round of playoff revenues. Regular season revenues would also improve as teams remain in contention for a greater percentage of the regular season. However, there are drawbacks to shortening a season given the game’s statistical legacy. Hallowed milestones like 300 strikeouts, 200 hits and 20 wins – all of which are anchored around a 162 game season – would become more scarce. Furthermore, a contemporary performance over 154 games would become more difficult to compare against great historical season in the 162 game era. While the jury is still out, it sounds as though this is a proposal still being considered by Major League Baseball.

Player privacy. Another proposal involved making players more accessible, either by “miking” a player on the field or through more extensive interviews during and after the game. Who wouldn’t want to know what a team’s star pitcher though about being pulled in the middle of the 6th inning with the bases loaded and two outs? Unfortunately, this seems to be at best a remote possibility as the MLBPA is very protective of player privacy. Donald Fehr, who heads the powerful players’ union, was opposed to miking more than one player per game, and both he and player representatives Glavine and Leiter had sincere misgivings about in-game interviews.

Competitive imbalance. No discussion of America’s Pastime would be complete without addressing the league’s perceived competitive imbalance. No doubt the shoestring budget AL Champion Tampa Bay Rays would beg to differ, but most fans believe that MLB competitive balance is hopelessly skewed towards the big market, big money teams in major cities like New York and Boston. Professor Reibstein went into the panel with this as his number one issue, but learned that this is a conversation that has been rehashed “a million times” with very little to show for it. The case against revenue redistribution is that TV ratings are highest when two big-market teams square off in the playoffs. However, there are several reasons to consider revenue redistribution – one need only look at the NFL to recognize the value of the resultant competitive balance. First, it would introduce an element of fairness that appeals to every true sports fan. Second, it could result in a positive revenue impact to help offset (and potentially outweigh, as evidenced by the NFL’s success) the “big city” benefits under the current system. Many NFL fans will watch games that don’t even involve their home team because they are fans of the competitive product the NFL puts on the field. At the start of any given season, virtually every team thinks they have a chance to win a title and that boosts interest in the league as a whole. So while it’s true that the NFL would rather have two big market teams square off in the Super Bowl, they seem content to risk having two small market teams play because of the attendant benefits of competitive balance. While many in baseball recognize the potential benefits of revenue redistribution, the gating factor has been existing big-market owners. Owners of big market teams feel justifiably threatened, since they paid far more for their asset than they would have for, say, the Florida Marlins. Revenue sharing would reduce big market team valuations and be a boon for small market team owners. With these very real financial considerations in mind, it will take creative solutions to pave the path to more comprehensive revenue sharing in Major League Baseball.

Earlier start times. Baseball’s fan base between the ages of 12 and 30 is dwindling, and one of several culprits often cited is late start times. October baseball, laden with the sort of every-play-matters drama that can hook a new fan for the sport, often drags into the early hours of the morning on the East Coast. Most of the World Series games had scheduled first pitches after 8:30 PM EST, meaning that even an average game wouldn’t end until after 11:00PM EST. Young fans especially have a difficult time staying awake to catch the end of playoff games. However, TV executives argue that if MLB were to move the games earlier, MLB would lose “a billion dollars” in TV revenues. They pointedly ask if baseball is willing to make that kind of an investment in hopes of recapturing younger fans, and the question remains one open to debate.

Shortening games. Back in the era of Sandy Koufax, baseball games took on average 2 hours. By the time the panel met to discuss, that average had crept to over 3 hours. Part of this was driven by increased offensive production, which is generally seen as beneficial for attendance. However, another culprit was the increasing number of pitching changes in an era where terms like “pitch count” and “lefty specialist” were now part of baseball lexicon. Longer games during an age of compressing attention spans were viewed as a significant problem. A number of ideas were set forth to address the problem: managers could just announce an intentional walk rather than throwing four ceremonial pitches outside of the strike zone; MLB could limit the number of pitching changes per game; MLB could reduce the number of warm up pitches allowed each inning and for each relief pitcher; MLB could limit the number of times a pitcher throws over to 1st base to check a runner. Rather than tinker with the rules of the game, however, the committee decided to encourage the umpires responsible for managing game times to speed the game along. Professor Reibstein drew an analogy to the airline industry. Once airlines started publically reporting on time arrival rates among airlines, every airline realized this was a metric upon which they were judged and almost instantaneously improved. The committee took a similar approach by internally circulating the average game length for each umpire, and then proceeded to encourage those presiding over longer games to pick up the pace of their games. This simple measure, which didn’t entail any fundamental changes to the game, reduced average MLB-wide game times by 14 minutes.

Interactive in-game entertainment. Professor Reibstein suggested that if MLB can’t easily pull levers to shorten the game itself, they could at least shorten the perceived length of games with in game entertainment. For example, MLB could wire stadiums for hand held devices on which fans could “bet” on the outcome. Between pitches, fans could guess the outcome of the ensuing play. The stadium would post the highest scores after each inning and offer prizes for the best totals at the end of each inning or game. For a generation of children growing up playing video games, it is a way to make baseball more interactive. Fans of any age would be more engaged during “down time” between pitches rather than counting the minutes towards three hours in a ballpark.

Worldwide Rule 4 Draft. Professor Reibstein said in response to an audience question that the concept of a worldwide Rule 4 Draft was “never discussed”. Professor Scott Rosner, who is currently writing on the topic, was also in attendance and lent his expertise on the matter. The MLB and MLBPA reached an agreement in principal during the 2002 Collective Bargaining Agreement (“CBA”), but could never reduce it to writing. There are several implications of a Worldwide Draft to consider. Teams (particularly the smaller ones) that have invested in “baseball academies” would lose the benefit of their investment, because players who could have been developed and then signed through the academy would now be scouted and signed through a league-wide draft system. Second, baseball participation in the countries to be added to the draft could actually be adversely impacted. Puerto Rico was added to the Rule 4 Draft in 1989, and this winter the Puerto Rican Winter League was folded after 69 seasons because of financial problems. Professor Rosner postulated that the MLB Draft offered fewer opportunities for the large signing bonuses that used to offer young Puerto Rican players a shot a financial freedom. Finally, the MLB would like to incorporate the Japanese Major Leagues into a Worldwide Draft but is confounded by a player posting system. By the time the next CBA came up for negotiation in 2006, there were so many other issues swirling that the concept of a Worldwide Rule 4 Draft was pushed to the background.

Baseball’s global footprint. MLB is very focused on trying to grow the game globally. Baseball was dropped as Olympic sport for the London 2012 Summer Olympics. MLB is very concerned about the international implications of losing baseball in the Olympics, and are working to get back into the games in 2016. Baseball’s status as an Olympic sport and the attendant funding is important for the development of baseball in small countries.

Thanks again to Professor Reibstein for an enjoyable and informative hour.

Article Contributor: Robert Sebastian

Sports Business Career Trek - Nov. 14

2008-11-16T16:04:00.000-08:00

On November 14, the Wharton Sports Business Club organized their first career trek of the semester to New York City. First up were the offices of the NFL, where we were greeted in the reception by a 150 inch plasma screen TV beaming the latest news from the world of American Football. After a brief presentation from five members of the NFL, we were given the opportunity to ask questions about the NFL’s functions, strategies and possible career opportunities.

Many questions centered on the international strategy of the NFL. While internationalization is something that the NFL has been working on for some time now, it is only recently that they have realized that the key is to offer their best product. This means that instead of hosting less-intense preseason games overseas or supporting a developmental league such as the now disbanded NFL Europa, they must offer competitive regular season games. While concerns were voiced about whether this was fair to fans of the teams that had to travel to Wembley Stadium in London to play a regular season game, it was pointed out that the NFL offered travel packages and first option on the tickets to home fans should they wish to travel overseas for the game. Further, under the current arrangements each NFL team will only have to play one game abroad every sixteen seasons.

Following a tour of the memorabilia laden offices of the NFL, it was then time to visit the NBA. Although the NBA has 1,187 employees and offices all around the world, it soon became clear from the presentation that the real focus for growth and hiring over the next few years would be NBA China. With 100 employees already working in China, the NBA seeks to double this number in the next 2 years. So if you’re a MBA with a passion for sports and are lucky enough to speak fluent Mandarin, then the NBA could be the perfect opportunity. If on the other hand you’re like me and can barely speak English never mind Mandarin, then there are in the range of five paid internship positions available this summer in functional areas ranging from marketing, team partnerships and business development to mention a few.

The fact that the NBA seeks to hire those with functional rather than sports backgrounds was emphasized by Nina Tamenbaum, who herself joined the NBA from Blackstone 2 years ago. In her role as a Senior Director for Strategic Development she also emphasized the importance of China and India, where her department were focusing on grassroots events to grow the market. In addition to the international growth another topic that came up throughout the day was the impact of the current economic climate. The NBA is not immune to this downturn, and a large amount of time and energy is currently being spent on developing new strategies to ensure that people renew their season tickets, given that ticket sales are still the largest source of revenue for the NBA.

Next stop was the Jockey Club, where the smell of rich mahogany represented a striking contrast to the more contemporary offices of the NBA and NFL. For those of you unfamiliar with the work of the Jockey Club, its mission is to improve thoroughbred breeding and racing in North America and you must be registered with the Club in order to breed or race a thoroughbred. A thoroughbred is a breed of horse whose ancestry traces back to three foundation sires – the Darley Arabian, the Godolphin Arabian and the Byerly Turk. This selective breeding process in the horseracing industry has been going on for more than 300 years.

There was a period in the US when horseracing filled grandstands to capacity but in recent times it has dropped down the list, being eclipsed by the likes of Nascar in terms of popularity. With regards to how to respond to this, James Gagliano, Executive VP and Chief Administrative Officer of the Club explained that unlike the NFL and NBA which operate revenue sharing schemes, one of the problems with racing is that each racetrack is by and large out for itself as a result of the organizational structure. Further, there is no central marketing authority to promote the sport and there is no central regulatory body in the United States with each State having its own racing commissioner. A very informative Q&A session ended with a discussion about the interrelation between horseracing and gambling, and with an estimated $15 billion bet (legally) on the sport of horseracing last year, it’s safe to say that the sport still has a great deal going for it even in these difficult economic times.

Thanks again to Wharton Sports Business Club Trek Directors Jeff Wilen and Amrita Bagaria for organizing the event and to the NBA, NFL and Jockey Club for their time and hospitality.

Article Contributor: Donal Mcelwee

Professor Panel Series - Professor Shropshire - Nov. 10th

2008-11-16T13:14:00.000-08:00

Monday’s Brown Bag Lunch with Professor Shropshire was as informative as it was informal. Professor Shropshire exuded a laid back and relaxed attitude that permeated the room and the audience. The 80 minute dialogue where he explained his background, discussed his books, and answered questions, however, was full of information, perspective, and evidence of Professor Shropshire’s love for the sports industry.

Professor Shropshire began the talk with a discussion of his background. As he puts it, he “lucked into” going to Stanford. Growing up playing football in south-central Los Angeles, he had scholarships to several major football programs, but was focused on Stanford’s victories in recent Rose Bowl appearances against Michigan (1972) and Ohio State (1971). Although in his words, he “practiced hard for four years, and never played a down” at Stanford, Professor Shropshire’s adoration for sports never dwindled. Professor Shropshire discussed his life after graduating from Stanford - which included law school and working at a law firm in Los Angeles, working as a part-time professor, and serving on the 1984 Olympic Organizing Committee for the Los Angeles Olympic Games. Eventually, jobless and looking for something more fulfilling, he described his first encounter with Wharton professors in Chicago on a recruiting trip. One thing led to another and he arrived at Wharton in 1986.

As he describes it, he did not know what he was in for. Professors around him explained the importance of publishing articles and books, and as the only person at Wharton focused specifically in the sports industry, he had a wide range of opportunities. He discussed the books that he has written since joining the faculty at Wharton and how these interests have changed and what opportunities they have afforded him. For example, his first book, Agents of Opportunity, which was published in 1990 was about the regulation of the sports agency business and its unique structure. He then shifted focus and wrote a book about sports franchise relocation as one of major issues at the time was the relocation of the LA Raiders to the Bay Area in northern California. His expertise in that particular area eventually led him to chair the Philadelphia Mayor’s Committee for Citizen’s Bank Park and Lincoln Financial Field.

Professor Shropshire then discussed the shift in the focus of his books. In the mid-1990’s, he transitioned to researching and writing about the social aspects of sports. He wrote books about the impact of race and celebrity status in sports as well as spent time analyzing basketball’s rise to become the new American pastime. Most recently, his book Negotiate like the Pros, discusses techniques in sports negotiations and applies them for use in business – from simple negotiating to building relationships to closing the deal.

Finally, before taking questions, Professor Shropshire discussed a recent trip to South Africa. He met with organizers of the Bafokeng stadium in rural South Africa and talked about many different things, including the fact that they will be one of the venues to host the 2010 World Cup. This stadium, he explained had been built because the leaders of the community understood the strong impact sports have on society. They believed that kids who played soccer would stay out of trouble and that having a local team would give members of the community a sense of pride. Furthermore, he explained, these leaders hoped that this sense of pride would keep locals from leaving for the “big city” and living in poverty there. The rural community needed its population to remain there in order to sustain itself. Professor Shropshire explained his awe when he visited the stadium.

The discussion then turned to an open forum where audience members were welcome to ask questions, and questions covered a wide range of topics. First Professor Shropshire was asked to compare sports’ impact in rural South Africa to their impact in rural South America. Then the discussion moved to the addition of social impact selection criteria in sports organizing committees. Committees are now focuses on only on hosting an important event, but also on creating a lasting legacy into the event. Logically, we then discussed the social impact of having a local championship team (go Phillies!). Ultimately, according to Professor Shropshire, winning a championship does not significantly increase overall social welfare. He commented that bars and restaurants may have increased revenues over the course of the series, however most people who watch the games are local and, thus, the hotels and rental car agencies are not recognizing many increases in profits. Also, he explained, these increases, though small, are not sustainable.

Questions were also asked about the impact that Obama’s election might have on the sports world (probably not very much) and how can sports capitalize on the increase in minorities and other racial issues. Professor Shropshire emphasized that baseball is trying harder to capture a larger black audience, but the sport still does not hold much appeal to this racial segment. He also discussed boxing in the United States, saying that he does not think that it will ever make a comeback. His opinion was that the “dilemma of cable” was driving boxing away from the mainstream – since it isn’t easily available to watch, people are choosing to watch other programs. In addition to his discussion on boxing, he answered a question relating to whether basketball can truly surpass football and baseball as America’s pastimes. Professor Shropshire answered that the NBA has fallen since the “Jordan era”, however it is the first American sport to capture the world stage. The league is still attempting to balance the priorities of the individual versus the team but has come a long way. His 1999 book, Basketball Jones, discusses many of these issues.

Professor Shropshire’s discussion was extremely informative. He was very open and honest with the audience about his background, noting that he never dreamed he would be a professor in a business school, let alone the author of so many books. He made it very clear that sports and the sports industry are his true passion and he continues to research sports history and impact on society. He was very open in answering questions and sustaining dialogue with the students present. Overall it was a great lunch hour.

Article Contributor: Amanda Noteware

Wharton Marketing Conference 2008 – Sports Marketing Panel - Nov. 7

2008-11-10T20:39:00.000-08:00

The Wharton Sports Business Club, in conjunction with the Wharton Marketing Club, held a panel entitled “Leveraging and Maximizing Sports Marketing Partnerships in Today’s Economy” at the 2008 Wharton Marketing Conference. The high profile panel, chaired by Wharton’s Professor Scott Rosner, included representatives from three of Philadelphia’s major sports franchises, as well as executives from two major corporations involved with sports sponsorship. The panel consisted of Mark Donovan (Senior VP/Business Operations, Philadelphia Eagles), Lara Price (President of Business Operations, Philadelphia 76ers), Shawn Tilger (SVP, Business Operations, Philadelphia Flyers), Amanda Trautmann (Product Director, J&J Personal Care) and Paul Bamundo (Senior Brand Manager, Sports and Entertainment, Subway).

The discussion centered around reflections on the effect of the current challenging economic environment on sports marketing. The representatives from the professional team organizations agreed that there are significant challenges, particularly with corporate and premium sales. Clients may be trading down, and sponsors are taking longer to respond. Shawn Tilger commented that in circumstances such as these, the aim is to prevent sales and sponsors from sliding too much, while positioning the organization to be able to capitalize on the good times when they return.

The panel, however, also reflected that these conditions present opportunities for building stronger relationships with fans and sponsors. Mark Donovan commented that “now is the time to be really good partners”. One of the success factors of the Eagles organization has been to lock in longer term relationships before tougher times hit. But in the current conditions they are trying to offer even greater value to sponsors and corporate clients. For example, they have a program of premium sponsors eating with players and riding on team buses, which has not previously been offered, but has generated significant goodwill.

Amanda Trautmann provided some interesting insight into J&J’s sponsorship efforts with the Beijing Olympic games. This represented a unique opportunity for J&J to think ahead about large future markets, and to associate the corporation with some of the key values of the Olympic games. However, it was still a difficult challenge for the 10 members of the internal J&J team to convince decision-makers in the company as a whole that this made sense. At the games themselves, J&J operated a pavilion with both a public side and a private media side. Through the sponsorship efforts, J&J saw significant benefits through equity tracker metrics to become known as a leading healthcare brand in China.

The panel was asked for thoughts on the effect of two recent Philadelphia events – first the recent announcements that the city is cutting back its budget, particularly on recreation spending, and second, the Phillies world series victory. The panel discussed the opportunities for local teams to build brand equity, and make a real difference, within the city. The 76ers, for example, have refurbished local basketball courts together with major sponsors such as Toyota. In terms of riding the Phillies victory tide, the team representatives agreed on a number of comments. First, while they each obviously wanted to be the first to bring home a national title since the early 1980s, they acknowledge the need to do the right thing – congratulate the Phillies and work with them. The victory brings a positive vibe to the city and is good for all sports (just as the NHL lockout was a negative for all sports). Second, it represents an opportunity to get many of the more casual fans involved. On the sponsor side, Subway tried to line the right things up so that if the Phillies won they would be ready to capitalize (for example with the “From one big Philly to another” advertisements).

Finally, Paul Bamundo was asked about the “Subway effect” – the apparent positive effect that sponsorship by Subway seems to have on athletes. Examples include Ryan Howard (World Series), Michael Strahan (Superbowl) and Tony Parker (NBA Championship). While Paul Bamundo played down the significance of this effect, many audience members were later seen trying to negotiate Subway business school sponsorship in the hope that it would help them secure future jobs!

The panel provided interesting insight into sports marketing in the current economic circumstances, and thanks goes to the SBC and the Marketing Club for putting together an impressive event.

Article Contributor: Ben Knepler

2008 Sports Business Career Panel

2008-11-02T15:51:00.000-08:00

On October 30, following the Wharton Leadership Lecture by David Checketts, Chairman of SCP Worldwide, the Wharton Sports Business Initiative and Wharton Sports Business Club held their first Career Panel of the fall semester. Students from both the Wharton undergraduate and MBA programs came to learn about strategies for finding a job in the sports industry from an accomplished Career Panel.

A very interesting conversation about the sports industry was moderated by Jed Hughes, a sports industry consultant at Spencer Stuart. The Panel included: Brian Bolten, Group Director for Octagon; Andrew Brandt, CEO of the National Football Post and Lecturer at the Wharton School; Rob Digisi, VP of Strategic Development for Dale an Thomas Popcorn; Pam Harris, CEO of Real Madrid North America at SCP Worldwide; Nick Sakiewicz, CEO and Operating Partner for MLS Philadelphia 2010 at Keystone Sports and Entertainment.

At the outset each of the Panelists took time to share their passion for sports, how they originally got involved in the industry and their thoughts on where the industry is headed. Themes that emerged were that over the last ten years sports and entertainment have come together. This has come about largely as a result of the amount of money being invested in sports. For example, Nick Sakiewicz, who is involved in the construction of a 20,000-seat stadium in Chester for Philadelphia’s new MLS soccer club, pointed out that in addition to constructing the stadium they are also investing $800 million in real estate development. It was agreed that this is a trend that is taking place across the industry.

The importance of networking was also highlighted. Jed Hughes made the point that each of his eight jobs within the industry came about as a result of a relationship. Nick Sakiewicz emphasized that networking was valuable not only for finding jobs but also for being presented with opportunities for business acquisitions. Pam Harris stressed that even while working long hours it remains extremely important to find the time to develop closer relationships with clients. Andrew Brandt spoke about how it is often the little things that get noticed by people which can lead to future relationships. For example, his conduct while working as an agent led to him being offered the chance to work as chief salary negotiator for the Green Bay Packers.

Brian Bolten observed that networking efforts should be driven by a natural curiosity. In this way it is more likely that the job you are offered will turn out to be the right fit. Rob Digisi added that students should focus on the function (e.g. finance, marketing, strategy…etc) they want to serve within the sports industry, and concentrate on developing their skills in this area. Significantly he emphasized that this function can be developed outside of the sports industry, and those interested in sports shouldn’t feel pressured to find a job in the sports industry immediately after business school. However, what they should do is continue networking even after they finish business school. For example, Rob Digisi got a position teaching a sports class at Wharton many years after graduation as a result of staying in touch with Professor Shropshire.

After the Panelists had shared their thoughts, Jed Hughes presented data from a Spencer Stuart Study showing what sports firms are looking for when hiring from outside the sports industry. The three key requirements are: (1) active listener – curious about the industry; (2) adaptable – willing to be an agent for change when appropriate; and (3) consensus builder. In addition it also helps to have international experience, multiple industry experience and small and large company experience.

The Panelists represented a diverse group from within the sports industry, each with very different roles and functions. Accordingly the biggest take away from the Panel is that when conducting a job search you should define the sports industry broadly and remember that it is not limited to working for a league or a team. To summarize the career advice of the Panel, keep your search broadly defined, don’t be afraid to gain functional experience elsewhere before entering the sports industry, and work hard to develop your network through natural curiosity for the industry.

Article Contributor: Donal Mcelwee

U.S. Sports Film Festival in Phildelphia - We Are Young: A Baseball Family

2008-10-29T06:59:00.000-07:00

This past Friday, three of us ventured over to the US Sports Film Festival to catch the first ever showing of We Are Young: A Baseball Family. Upon walking into the theater, we were surprised to find that we were only a handful of people at the festival. By the time the movie started, approximately 50-60 people were at the screening, leaving the the large theater only about a fifth full. However, those of us who did attend were treated to a great film.

We Are Young follows two baseball brothers, Dmitri and Delmon Young, through their respective MLB baseball careers from 2001 to 2008. In 2001, Dmitri Young is 27, already in the big leagues and enjoying a successful career. His younger brother, Delmon, is 15 and the top-rated baseball prospect in the country. At the head of the family is the father, Larry, who for reasons not entirely explained is called Young Larry, even by his sons, most of the time. Larry comes from a military background. As the beginning of the documentrary points out, Larry did not know anything about baseball, but teaches his sons the game after educating himself about it, in the process taking a military-like approach to his teachings and trainings.

The first few years highlight successes by both Youngs. Dmitri continues to enjoy a solid career, even making his first All-Star game. Meanwhile, Delmon is drafted first overall coming out of high school. This surpasses Dmitri's claim of being drafted 4th overall out of high school. Larry takes great pride in the fact that his sons were both drafted in the top 4. As the film points out, it is the first time a father has had two sons drafted in the top 4 of any professional sports draft.

Delmon gets off to a great start in his minor league career, including being named the top-rated minor leage prospect in all of baseball. However, his call-up to the big league squad does not come as quickly as he had hoped for as he starts out the 2006 season back in the minors. The 2006 season ends up being a disastrous one for Delmon, as well as Dmitri.

For Delmon, he becomes the center of a negative media storm after he flips his bat, which then strikes an umpire. He is ultimately suspended for 50 games, with several members of the media calling the punishment too light. Dmitri's season may have been even worse. He is accused of assaulting his girlfriend, which garners negative media attention. During the season, he has a stint at an alcohol rehab facility. He then makes his way back to Detriot and resumes playing, but just as he has appeared to turn the corner and play well, he is let go by the team for lack of performance, which nobody seems to buy. The underlying thought is that he was released because the team did want his upcoming assault case to be a negative distraction to the Tigers' season. The release is devastating to Dmitri who then watches as the Tigers go all the way to the World Series. The 2006 year ends with Dmitri finding out he has diabetes after an episode in which he almost died.

A good portion of the documentary focuses on the 2006 season. It ends on a promising note as Delmon finally does make it to big leagues and enjoys immediate success. Dmitri also makes it back to the majors with the Nationals, and finds himself back in the All-Star game.

More than the on-the-field story of both Youngs, the documentary really focuses on the interactions and relationships between Larry, Dmitri and Delmon. As the director pointed out before the screening, We Are Young is really about family.

After the movie, there was a Q&A, featuring Dmitri and Larry. It was interesting to hear their takes on the movie and how they felt they were portrayed, particularly Larry as he is not sure if he would have raised his sons differently given a second chance. They both joked actually that the movie kept out some of the worst stuff. My own personal take is that it was rather sad that so few people attended what was essentially the premiere of the movie. After watching Dmitri and Larry for 90 minutes on the big screen, I felt they deserved a full house.

It is unknown where We Are Young goes from here. All three of us enjoyed it, as did seemingly everyone else in attendance. It is MLB's first move in to the motion picture business so one would assume that it has a future place on the soon-to-be MLB channel. Beyond that, who knows. However, if you do have a chance to ever see We Are Young, I would strongly recommend it.

Article contributor: Andrew Evans

U.S. Sports Film Festival in Phildelphia - Running the Sahara

2008-10-29T06:51:00.000-07:00

While the Philadelphia Phillies were making baseball history playing in their first world series since 1980, Philadelphia was also welcoming the first U.S Sports Film Festival. The four day event began October 23, with several movie screenings, panel discussion, and opening night party. Participating in the kick-off, I watched the screening of Running the Sahara a true documentary recording the adventures of 3 runners attempting to run across the Sahara desert. The movie was directed and narrated by actor Matt Damon. This film is touching and endearing as we go along the physical, psychological, and emotional journey these runners endure. Supported by a first-class team of doctors, physical therapists, nutritionists, and country guides the runners and entire crew push themselves past their limits to successfully cross 6 countries and 4300 miles in 111 days. What makes the film so powerful is that it’s more than simply a video of 3 men running. It displays lessons on teamwork, leadership, courage, strength, and compassion that not many cannot conquer. Additionally, the film brings awareness to both the beauty and challenges facing Africa. One of the film’s major initiatives is to support H20 Africa, which is a clean water project to bring awareness of the water crisis in Africa. During the film the gravity of this issue hit home when the runners and crew came across a 7 year old boy who was left alone in the desert for days while his parents went to get water.

At the end of the movie audiences feel as though they have made the journey with these runners and have gained an appreciation for the unique beauty of Africa. Every time I feel winded running for the bus or walking up a flight of stairs, I’ll always think back to this film and remember that I can do more…

Article contributor: Stephanie McDuffie

Fall 2007 Wharton Sports Business Club Media Panel

2008-01-22T17:14:00.000-08:00

The Wharton Sports Business Club, along with the Media and Entertainment Club, held its second industry panel of the semester on November 27th. The club assembled another all-star lineup of industry executives, this time to discuss new media and its role in the consumption of sports. The conversation was moderated by Legal Studies Professor Scott Rosner, Assistant Director of Wharton Sports Business Initiative. The panelists included: Michael Allen, Senior Director Digital Products for the NBA; Ryan Donovan, VP Marketing for Versus; Justin Shaffer SVP New Media for MLB Advanced Media; Chris Vollmer, VP Consumer and Media Practice for Booz Allen and a Wharton Alum.

The shared sentiment among the panelists was that the recent advances in media have greatly changed the way people consume sports content – they are less inclined to watch live sporting events than ever before. Aside from when their teams are doing well, or the occurrence of big events such as historical feats and momentous rivalries, fans would rather get their sports in short-clip form such as that shown on ESPN or what is available on the internet. This phenomena, coupled with the increasing availability of DVR capabilities has also impacted the way sponsorship is gained, valued, and designed.

Justin Shaffer explained that MLB Advanced Media is attempting to revive fan interest in live games by combining the ability to watch games online with the popularity of online networking. They plan to provide a platform where online consumers can watch the games and interact with each other at the same time, thus enhancing the viewing experience. This led to a discussion about the different strategies the NBA and MLB are following with regard to digital media. While MLB chooses to keep tight control on the distribution of their content in order to monetize their rights, Mike Allen the NBA is taking the opposite approach and encouraging the use of NBA content in platforms such as YouTube and Second Life as a way to increase the league’s popularity.

On the TV side of the media world, Ryan Donovan of Versus spoke about the vast number of short clips of niche sports that are now available on the Internet. He feels that this may serve to generate interest in sports beyond what is traditionally seen on TV and help the viability of the cable channels that use niche sports content to fill up their programming schedule. This may also help to increase interest in sports whose popularity has been suffering, such as the NHL and the MLS.

The panel ended with a brief conversation about the opportunities for MBAs in the sports industry. As Chris Vollmer from Booz Allen said, “Opportunities for people like you guys in sports are far far greater than ever before. Traditionally it was all about the dealmakers…there is now far more and growing demand for business leaders…and so many more opportunities for MBAs than a decade ago.” When asked for advice about pursuing such a career, the panelists emphasized the importance of networking and possessing a true knowledge about the business of sports in addition to having a passion for the industry. It also helps to have a certain skill set or expertise that sets you a part from your peers.

The evening concluded with a reception in the MBA Café where club members had an opportunity to talk one-on-one with the panelists about current topics in the world of sports. WSBC plans on presenting another panel this spring, so be on the look-out for further information. It is sure to be another impressive must-attend event.

Article contributor: Dana Komar

Fall 2007 Wharton Sports Business Club NYC Trek

2007-11-28T21:23:00.000-08:00

On November 16, seventeen MBA students traveled to New York to attend the Wharton Fall Sports Business Trek. The group, comprised primarily of first years, was given comprehensive insights into the growing demand for an MBA skill set in sports and sports related media companies. The agenda included visits to 3 leading companies: The National Basketball Association (NBA), Major League Baseball Advanced Media (MLBAM) and TAKKLE.

Under the explicit orders of Commissioner David Stern, the NBA is making a targeted effort to hire more MBA’s into its organization. One of their first initiatives under this mandate was to form a partnership with the WSBC, Wharton’s Sports Business Club. During the breakfast meeting, trek participants heard speakers from Team Marketing and Business Operations, the International Group, and the Marketing and Media Group. Rebecca Chiu (WG04), Director of the International Group, and Paul Bamundo (WG99), Director of Marketing Partnerships, are both Wharton MBA Alumni. They spoke about the NBA’s expansion plans overseas, particularly in the Asia Pacific, and how the league works with corporate sponsors to promote the game of basketball.

The next stop was a visit to what many consider the crown jewel of Major League Baseball, their interactive arm - Major League Baseball Advanced Media. The company operates the official web site for the league and 30 Major League Baseball club web sites via MLB.com, which draws over four million visitors per day. The group met with Justin Schaffer, SVP of New Media, who discussed the company's history and a number of new strategic initiatives. MLBAM was founded in 2000, and already has an estimated $450MM in revenues with double digit revenue growth and EBITDA margins that are 30% of MLB’s entire operations. Each team shares MLBAM's profits equally, which augments the current revenue sharing agreement to ensure more competitive balance for smaller market franchises. MLBAM just recently was able to pay back the roughly $80 million investment used to fund its start—nearly $3 million per team. While CEO and Wharton MBA Alum Bob Bowman was unable to attend, Justin held a highly interactive conversation covering topics such as MLB’s pending fantasy sports litigation, the launch of the MLB TV Channel, and the convergence between sports and social networking.

The trek ended with a visit to TAKKLE, an online social network focused on high school sports. TAKKLE, which recently completed a $7 million financing, is led by Wharton grads David Birnbaum (CEO, WG05) and Mike Mortellaro (COO, WG05). The Company has grown rapidly to 40 employees and is backed by Sports Illustrated. The executive management team spent well over the allotted hour and a half to discuss their personal stories and passions that helped them get to where they are today.

All in all, the Wharton Fall Sports Business Trek was deemed a success by the participants, and planning will soon be on the way for a spring visit to ESPN, NFL and MLS, and other potential future Wharton MBA employers. Reach out to the club to get involved!

Article contributors: Samir Mayur, Peter Spartin, and Tim Lacey

Professor Justin Wolfers discusses his research on racial discrimination by NBA referees

2007-11-08T21:29:00.000-08:00

(November 8, 2007)

Last week, members of the Sports Business club were treated to a lecture by Professor Justin Wolfers, the co-author of a study that sparked national debate and significant media coverage earlier this spring. While Professor Wolfers has performed research on such significant subjects as the death penalty, none of his previous research created the stir that his paper on racial bias amongst NBA referees had caused.

First, it is important to consider the motivation behind his research. The main question is whether a referee of a given race shows any bias towards his own or another race. This is not an attempt to discover if these officials are themselves racist, rather it is to find if they harbor a bias, possibly unknown even to themselves.

He chose the NBA for two major reasons. First, while the teams of referees are not randomly assembled, their assignment to a given game is; and given the significant repetition, the result was a quality data set. Second, the group as a whole was a good target, as this type of bias would seem to be rare in a setting with such high visibility, transparency, and strict monitoring. As mentioned by Professor Wolfers, David Stern, the commissioner of the NBA, the referees are closely monitored by the league at all times.

His research eventually concluded that there was some level of bias, but only by a slim statistically significant amount. The bias appeared to suggest that the non-black players in the NBA were called for more fouls based on the makeup of the officiating team. Results aside, more importantly was the subsequent backlash from the national media. Ranging from the cover of the New York Times to significant coverage on ESPN shows such as PTI, the study was scrutinized for days.

In the end, Professor Wolfers’ study is statistically sound, and possibly reveals some underlying biases that exist in our society today. Ironically, while many of his studies have a greater perceived social impact, none have garnered the attention of a study on the NBA. As he noted from a conversation with sports writer Bob Ryan, sports is something people truly feel is “important”.

Professor Justin Wolfers is an assistant professor of business and Public Policy.
See the original article: http://bpp.wharton.upenn.edu/jwolfers/Papers/NBARace.pdf

And the New York Times article about the reaction from the sports media to the controversial research: http://www.nytimes.com/2007/05/02/sports/basketball/02refs.html?n=Top/Reference/Times%20Topics/People/S/Stern,%20David.

Article contributor: Andrew Chun

Wharton alumna scores big at ESPN

2007-10-29T22:08:00.000-07:00

The Wharton Sports Business Club has leveraged a growing core group of students with sports business experience and aspirations and has gained huge momentum over the past year at a time where the sports industry continues to offer an increasing number of viable career option for MBAs. The growing profile of the club is perhaps best reflected in its new partnership with the NBA, marking the first collaboration between a U.S. major league and a business school.

The club’s initiatives for this year include a number of independent study projects in the industry (two groups are currently working with the Philadelphia Eagles), a series of industry panels, a professor brown bag lunch series, two treks, several networking events, additional individual guest speakers and the launch of a sports business blog on the club’s website.

Recently, the club kicked off its set of industry panels, which was generously produced and sponsored by Wharton’s Sports Business Initiative. The event drew an impressive line-up of executives from ESPN, 76ers, Under Armour, MZ Sports Investment Banking and Spencer Stuart. The interactive discussion and “networking and drinks” reception that followed were extremely well received by a full house of club members and alumni.

The commonly themed, but unique stories of the panelists ranged from how they broke into the industry, to how “no-day-is-the-same” day at the office. They all admitted it was difficult to get their foot into the door to the sports industry, but that the key was a combination of networking, a specialty or solid experience in another discipline, a lot of resilience, a little luck, and then some more networking.

The reception afterwards allowed for a further in-depth interview with Wharton alum (WG ’01) Leah LaPlaca. Mrs. LaPlaca is currently the VP of Programming & Acquisitions for ESPN where she handles the day-to-day management of NFL programming, in addition to that of golf, figure skating, skiing and sailing.

Interview with Leah LaPlaca, ESPN, VP Programming & Acquisitions, WG '01

How did you get started at ESPN?
Through networking. A Wharton classmate used to work at CBS Sports and introduced me to a colleague who was currently with ESPN. We hit it off and I badgered him (nicely, of course!) until he finally hired me…18 months after I graduated from Wharton.

What's a typical day on the job like?
That’s one of the things I like about my job and ESPN…There’s no such thing as a typical day. It’s 24/7 - always changing. I could plan my day out and come into the office in the morning and get an email or phone call that changes everything. I love the dynamic nature of a 24/7 global multimedia company.

What was it about your Wharton Experience that most prepared you for your current position at ESPN?
The overall business acumen I learned with marketing, finance, strategic management, and leadership courses. I’m not running models, but it was more getting the mindset and framework to apply to problems. And Negotiations!

What class did you not take at the time but now you wish you took while at Wharton?
I was a strategic management major, but I wish I took a few more courses in marketing. The courses didn’t have to be sports-related, but I did try to apply a sports angle whenever possible, like choosing projects involving sports or media.

Are there any obscure sports that you would like to see more of on ESPN?
There isn’t one that I can say, but we have a big opportunity to give niche sports exposure by leveraging ESPN 360.com, like we are doing with rugby and some other more international sports.

While working for ESPN, what has been the coolest event you have attended?

The first Monday Night Football on ESPN! Redskins-Vikings at FedEx Field.

What advice do you give MBA’s that want to enter into the sports field?
First, networking. Let people know you are interested. Second, develop transferable skills and bring that nugget of experience to sports and show how it can relate. And again, let people know. You never know which one of your colleagues might have a connection to sports that can give you a foot in the door.

Would you have any specific advice for women thinking about entering the sports industry?
It’s a tough business and challenging, and there’ll definitely be sacrifices, but the “all boys club” has changed. ESPN has a really good representation of minorities and women, and they’ve been flexible for families. I have a 11 month old (Gracie) and ESPN recently decided to build a daycare facility in our Connecticut campus, which will be tremendous. The bottom line in terms of advice for women entering the industry is to work hard, be passionate, and know your stuff…if you do that, it won’t matter to your bosses if you are a male or a female.

Other than the Duke Blue Devil or the Penn Quaker, if you were to appear in an ESPN commercial with a sports mascot, which one would you choose and why?
Western Kentucky’s Big Red comes to mind since we feature him in lots of our “THIS IS SPORTS CENTER” promos, but I’d probably have to go with Phillie Phanatic, hands down, since I’m a Philly girl. …though those mascot costumes can smell real funny!

Upcoming panels currently in the pipeline will bring to Wharton executives from the worlds of sports media, sports financing and sports entrepreneurs. For more information or to join the Sports Business Club and keep informed of future events, please email co-president Tim Lacey at laceyed@wharton.upenn.edu

Article contributors:
David N. Adams, Dana Komar, Tim Lacey, Ben Meyer, Peter Spartin

Wharton Sports Business Club

Professor Kenneth Shropshire discusses the business of sports

2007-10-25T21:42:00.000-07:00

An interview with Professor Kenneth Shropshire (October 25, 2007)

Professor Ken Shropshire is a Wharton professor in the Legal Studies Department and the faculty director of the Wharton Sports Business Initiative. His publishing has focused on sports, including Being Sugar Ray: The Life of Sugar Ray Robinson, America’s Greatest Boxer and the First Celebrity Athlete (2007) and The Business of Sports Agents (2002).

Professor Shropshire held a brown bag lunch session with members of the Sports Business Club and also answered follow-up questions for this article.

What path led you to Wharton?

I played football as an undergraduate at Stanford, and went directly into law school at Columbia (JD, ’80). After graduating from Columbia, I became involved in sports law, doing some work for the 1984 Olympics around sponsorships.

In 1986 I joined the faculty at Wharton. At the time there was no sports specific class, but I taught at class at the law school on sports and entertainment law.

What is your current area of research?

I work on a combination of things. The main focus is on the business of sports. I also teach negotiations so stay on top of the latest research in that area. Finally, I stay on top of the latest legal issues related to race, specifically as they apply to sports but to broader diversity related issues as well.

When I first started doing research around race and sports in the 1980s, there were not any black quarterbacks in the NFL. The racial divide at that time reached from players in the “thinking positions” (quarterbacks, centers, point guards) and extended to managers and coaches.

Today, race is still a complex issue in sports. The number of minority players and coaches at the pro level has improved, but if you look at the number of minorities coaching Division-I football, it is still very low.

What is the best application of your research to the real world?

I don't know about best, but just yesterday I was speaking with a GM of a team on the best strategy to use against a "tough to deal with" sports agent. Over the years, I have been involved in many facets of the changing racial face of coaching and management level personnel gaining positions in Major League Baseball and the NFL, by virtue of my work with the Fritz Pollard Alliance and the one time Baseball Network.

What is the most interesting thing happening in your field?

To me it is the recognition by a growing group of athletes of the impact they can have to change social ills at the micro level and the dreams they have about changing even bigger problems. A number of athletes are starting investment funds (Ronny Lott) or charitable foundations (David Robinson). Think about what they could do if they were working together.

What do you hope students get out of your class?

In negotiations it is that they gain the confidence to go out and get the best deals possible against anyone

What uniqueness/similarities do you see between sports and business negotations?

Sports negotiations are much more public; there is always a sports journalist who is interested in the details, whether it’s a negotiation for a player or for a new stadium. Business negotiators face much less scrutiny.

What do you think is the best thing about Wharton?

From a faculty aspect, it is the entrepreneurial opportunities you have to focus on the areas that are most important to you.

What are your hobbies / how do you spend your free time?

Most of my free time is captured by my children. I like golf, tennis and fishing, but never have enough time to really get out there.

What's on your ipod?

Soul, reggae and jazz, with Gil Scott-Heron popping up with extraordinary frequency, capturing all of those genres. Gil is back out and performing, as of September.

Article contributor: Pia Chock

Welcome to Wharton Sports Business Club's Blog

2007-09-29T12:43:00.000-07:00

Welcome to Wharton Sports Business Club's Blog. This blog is intended to provide information for current and prospective Wharton Business School students regarding career opportunities in Sports Business. This blog provides a great opportunity for students to share their internship and past career experiences with the rest of the community. Please also visit our website: http://wsbc.wharton.upenn.edu/