Fall 2007 Wharton Sports Business Club NYC Trek

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

(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

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

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

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/