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The Business of Sports/Ticket Sales: Madison Square Garden (Symbol: MSG)

The Business of Sports/Ticket Sales: Madison Square Garden (Symbol: MSG)

We earn revenue in our MSG Sports segment from several primary sources: ticket sales and a portion of our suite license fees at The Garden. Ticket sales constitute the largest single source of revenue for our MSG Sports segment.
-Source, Madison Square Garden, Inc. (Form 10-K, fiscal year ending December 31, 2009).

The TSR staff members had the opportunity to review the financial statements of Madison Square Garden, Inc., owner of the NY Knicks and the NY Rangers. We were surprised to find that the largest source of revenue for this entity was ticket sales. We naturally assumed that the majority of revenue was generated by MSG Network (Carriage Fees) or advertising.

This new revelation (New to TSR staff members) is great news for those seeking entry-level positions within the sports industry. First there is the opportunity to work with two professional sports teams participating in two different leagues. Second, the work will be conducted in the largest sports media market in the U.S (arguably).

Gaining relevant experience and producing exceptional results with this organization can only enhance your future Sports Industry career opportunities (With a Pro-Sports team or sports-related other entity). Remember that Madison Square Garden is a publicly traded company (Symbol: MSG), who must report earnings every three months. Also, a publicly traded company usually incurs more expenses than a private entity.

Ticket Sales:
The most important Benchmark to keep an accurate record of as a Ticket Sales Representative is Sales Numbers. Sales numbers are attractive to Sports Industry hiring managers. Sales numbers are an indicator as to HOW you will contribute to an organization. The display of an increase in sales numbers by the month, quarter or annually is information that should always be documented on a candidate’s resume. Graphs and charts are exceptional formats as well.

MSG Employment Opportunity: Inside Sales Representative

Posted in NUMBERS, Students0 Comments

POLL: Should student-athletes be compensated?

The Ohio State University football program is the latest athletic department who has been found to have broken NCAA rules and regulations. This incident involves current players selling items given to them by the university from participating in a 2009 bowl game. If those items sold were gifts, wouldn’t the players have the freedom to do as they please with these items?

We are not that far removed from the UNC, Alabama, USC and Georgia football program suspensions as a result of inappropriate contact with sports agents by current players (The Georgia incident involved a player selling a bowl game jersey).

Are the current amateur athlete rules and regulations fair to the players? Everyone gets paid on game day but the players (Athletic Departments, Coaches-including assistants, Licensees, etc…). Coaches have bonus clauses written into employment contracts for various achievements (COY awards, # of games won, conference championships, APR Rate, Equipment Contracts, etc..). The universities also receive a portion of television revenues, where these contracts were negotiated by the NCAA. Next, the NCAA receives licensing revenue for player likenesses on video games (Ex. EA Sports) and jerseys.

The counter argument is that the athletes receive a “free education” where the athletic department pays for room/board and tuition. However, these agreements are one-year renewable and not guaranteed for 4 years as most in the general public assumes. The TSR staff members are very serious advocators in regards to student-athlete education. The truth, ”most” but not all of these student-athletes leave these universities with degrees that make them unmarketable and unable to compete in this economy. Deciding on a major is the choice of the athlete, but there are stories stating that coaches push toward certain majors for the sake of eligibility.

Again the question, should student-athletes be compensated? TSR staff members think they should. The amount can be minimal, $300-$500 per month. The money can be used for travel, laundry and leisure. However, will there be a dilemma as to which “sport” athletes should receive a stipend. Athletic department Equipment Contracts with NIKE, ADIDAS and Under Armour makes it clear as to the revenue generating sports (Football, Men’s/Women’s basketball). Most of these contracts contain bonus clauses paid to the department whenever any of these teams reach certain post-season play accomplishments (NCAA tournament, Bowl and Conference Championship Games). Should the Track & Field, Soccer, Baseball, Swimming and other participating athletes be excluded? Probably not.

The debate on student-athlete compensation will continue long past this latest incident. Don’t be surprised if the final decision is decided in a court of law ( EA Sports lawsuit).

Posted in Coaches, NUMBERS0 Comments

NIKE: Career Opportunities

We have recently added a NIKE Employment feed. The feed is updated in real-time, immediately listing new positions as the company makes them publicly available.

The NIKE Employment feed posts opportunities located in the U.S. and abroad. As with other employers in the Sports-Industry with a global brand, potential candidates seeking employment at NIKE will probably face intense competition, 400 applicants/position.

Be prepared. Know the industry and the company, a $20 + billion dollar publicly traded……..& growing.

Posted in INTERVIEW, Industry Leaders, NUMBERS, Résumé-CV-Cover Letter0 Comments

FORBES 400 Richest Americans (Team Owners)

FORBES 400 Richest Americans (Team Owners)

FORBES magazine has just released its latest annual list of the 400 Richest Americans. On this list, 22 are representatives of the Sports Industry. It appears that the addition of a new stadium, ballpark, or arena will increase their net worth by at least $500 million. A Regional Sports Network (RSN) will also bring in additional revenue for the organization (Ex. YES Network-NY Yankees).

The only deceptive part of the net worth calculations for the “Sports Owners” is that many of their organizations are saddled with debt. We also have two of the most popular leagues (NFL, NBA) potentially locking-out its players in 2011. In addition, many teams have cut the prices of their tickets and some were even subjected to blackouts due to not selling out home games.

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Keyword Box

Assistant Director of Athletic Development
- responsible for the development of the majority of the Athletic Foundation chapters.

Fundraising Communication skills event planning Complex organization

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