THE BUSINESS OF SPORT MANAGEMENT John Beech and Simon Chadwick (eds.)

GLOSSARY

Advertising channels:  TV channels that receive the main part of their revenues from selling advertising. 

Ambush marketing:  A tactic whereby a company attempts to ambush or undermine the sponsorship activities of a rival that owns the legal rights to sponsor an event; often involves creating the sense that they, and not the actual sponsor, are associated with the owners of the event or activity.

Amenity services:  Provided largely to locally-determined standards to meet the needs of a local community. 

Anthropomaximology:  Abbreviated as AML in Russian and derived from the Greek word, anthropos, which means human being, the Latin, maximum, and the Greek, logos, which was interpreted to mean study.  AML is the science investigating the reserve potential of the healthy employee and the way to realise such potential fully under maximum effort.

Arbitration:  Settling of a dispute by an outside person or persons, chosen by both sides.

Behavioural factors:  Those relating to the individual, to how that individual lives or has lived and to how that individual actually behaves.

Benchmarks:  Targets for performance.

Benefits:  What the sport product or service offers the person.

Betting exchange:  An online exchange where people deposit funds in order to make a bet.  The exchange then matches people betting for and against, for example, a horse and they are paired off.  Exchanges allow betting to take place up until the end of a sporting contest, providing people betting for and against an outcome can be found.

Bookmaking:  In bookmaking the punter bets against the bookmaker.  Bookmakers operate from shops, via telephone, from ‘pitches’ or shops at sporting venues and, increasingly, via the Internet.  The bookmaker displays a list of prices (known as ‘odds’) at which he is willing to take bets.

Brainstorming:  A technique for generating, refining and developing ideas that can be undertaken by individuals, but is more effective when undertaken by a group of people.

Broadband:  Technology that allows a high rate of data transmission. 

Bureaucracy:  An organisation typified by formal processes, standardisation, hierarchic procedures, and written communication.

Business:  An organisation that operates in order to make a profit; also the collective word for the activities in which they engage.

Business Continuity Planning:  Identifies an organisation’s exposure to internal and external threats and synthesises hard and soft assets to provide effective prevention and recovery for the organisation, whilst maintaining competitive advantage and value system integrity.

Capital asset price model (CAPM):  The rate of return on any asset consists of two components - the pure time value of money and the risk premium reflecting the sensitivity of the asset to changes in market returns.  The beta value of an asset measures its sensitivity to general market movements. 

Causal forecast:  Forecasting technique used to identify the relationship between two or more variables whereby a change in one variable causes a change in one or more of the other variables.

Central Council for Recreation and Training:  Formed in 1935 to improve physical and mental health.

Collective sale of sports rights:  When a league sells the broadcasting rights for the entire (or a large number of) matches in the league. 

Commercialisation:  The process increasingly found in sport where a business or businesses from outside the sport have become significant stakeholders in the sport in order to make a direct or indirect profit.

Complex bet:  Punters bet on a series of outcomes all of which have to occur in order for the bet to be won.

Control:  Monitoring and if necessary adjusting the performance of the organisation and its members.

Crisis:  An incident or event with consequences, which pose a significant threat to the strategic objectives of an organization.

Crisis Management:  A term that refers to a three-stage process from the incubation of crisis potential, through incident management to post incident media management and brand repositioning. 

Cultural discount:  The reduction in value of a TV-programme when it is being sold on an external market.

Culture:  A shared psychological framework for ordering and interpreting experiences, and for determining responses to them.

Customer management:  Technique based on direct marketing that attempts to manage customers (supporters) over time.

Customer satisfaction:  Comparison of expectations versus perception of experience.

Debt irrelevance proposition:  Under ideal conditions of perfect capital markets, no taxes and no bankruptcy or financial distress costs, the market value of a company is unaffected by its capital gearing (i.e. the proportion of debt in the capital structure).  At a practical level, the debt irrelevance proposition implies that the value of a company depends primarily on its business model not its financial structure.

Defendant:  Person who starts an action against someone in the civil courts.  (Since the introduction of the new Civil Procedure Rules in April 1999, ‘claimant’ has replaced this term.)

Delphi technique:  Technique for generating information about the future involving a number of iterative stages through which managers a consensual view of what might happen to a business.

Demographic factors:  Those relating to personal characteristics such as age, gender, social class, level of education, occupation and family status.

Devoted fan:  Has a strong association with either a team, personality or possibly sport.

Digital convergence:  The technological trend whereby a variety of different digital devices such as televisions, mobile telephones, and now refrigerators are merging into a multi-use communications appliance employing common software to communicate through the Internet.

Discounted cash flow (DCF) analysis:  The present value of any individual asset or portfolio of assets equals the discounted value of expected net future cash flows.  The discount factor should reflect the cost of waiting (i.e.  the pure time value of money), the risk of the asset and expected future inflation.  DCF analysis is applied to investment project appraisal and corporate valuation.

Disintermediation:  The process of doing away with middlemen from business transactions. 

Dividend discount model:  The market value of a company’s equity equals the present value of expected future dividend payments.  The DDM assumes that either dividend payments are fixed or grow at a constant rate so that the company’s equity can be treated as a perpetuity.

Dysfunctional fan:  Exhibits extreme loyalty and often obsessive behaviour.

Efficient market hypothesis:  An asset market is information-efficient if asset prices fully reflect all currently available information on future asset returns.  New information is incorporated quickly and correctly into asset prices through market trading.

Equality and Equity:  Whereas equality may mean equality of opportunity, of resource allocation, of objective outcome, of subjective outcome (that is taking into account different needs or just desserts), equity is taken to mean equality relative to individual contributions. 

Equivalence proposition:  The market value of a company can be measured by three theoretically-equivalent methods - the present value of expected future free cash flows (i.e.  cash flows generated by operating activities net of taxes and asset purchases/sales), the current market value of debt and equity, and the current going-concern value of the company’s assets.

Ethics:  the principles or assumptions underpinning the way individuals or organisations ought to conduct themselves. 

European Broadcasting Union (EBU):  An organisation of 69 TV channels in 50 countries, mainly European, which is driven on a non-profit basis.  Its members are mainly public service broadcasters.

Facility services:  Services for people to draw upon if they wish.

Financial ratio analysis:  The analysis of a company’s financial performance using selected summary ratios calculated using the accounting information provided in financial statements.  Financial ratios are categorised typically into five groups covering profitability, asset efficiency (or activity), liquidity, financing and market value (or shareholder returns).

Financial statement:  The report provided by a company on its financial performance using accounting standards.  A company’s financial statement consists of a profit and loss account, a balance sheet (i.e.  assets and liabilities) and a cash flow statement.

GANTT chart:  A bar chart used to illustrate both the sequence and expected duration of activities within an event.

Geographic factors:  Those relating to the place or environment where that individual spends, or has spent, a proportion of their time.

Governance:  The management of a system, usually political or organisational, involving mutual adjustment, negotiation and accommodation between the parties involved rather than direct control.

Group norms:  Informal standards of behaviour and performance that develop from the interaction of the group.

Hazard:  A physical entity, condition, activity, substance or behaviour that is capable of doing harm.

HTML:  Hyper text markup language, is a page description computer language that forms the basis and composition of most web pages on the Internet.

Image rights:  The legal rights associated with using the image of a sports person in marketing and promotional activities.

Impact of expectancy:  From a Western perspective, the ‘impact of expectancy’ can be explained from the angle of seeing another individual’s behaviour being affected by (a) what a person wants to happen; (b) his/her estimate of the probability that an event will become manifest; (c) his/her belief that the event will satisfy a particular need.

Incident management:  The process of managing a crisis event.

Individual sale of broadcasting rights:  When the home club sells the broadcasting rights for all their matches - or separately. 

Interlocutory injunction:  Which is granted for the period until a case comes to court.

Internet:  A global system of interconnected networks providing links to millions of computers that allow access to billions of web pages on a huge number of topics.  It relies on a system of computer protocols to allow information to be exchanged between networks.

Judgemental forecast:  Forecasting technique involving the use of opinion, experience and judgement; often used when there is little information about a specific set of circumstances.

Judicial precedent:  Precedent set by a court decision, which can be reversed only by a higher court.

Jurisprudence:  Study of the law and the legal system.

Leadership:  Influencing and directing the performance of group members towards the achievement of organisational goals.

Leverage:  The methods and techniques used to ensure a sponsorship is managed in such a way that it generates the maximum possible value for the sponsor.

Libel:  Written and published or broadcast statement, which damages someone’s character (in a permanent form).

Lifecycle:  A method of analysing industries and/or specific organisations based on the premise that all business has a lifespan, moving from birth to eventual demise. 

Local fan:  Identifies with particular geographic area.

Management:  The process of planning, leading, organising and controlling people within a group in order to achieve goals; also used to mean the group of people who do this.

McKinsey’s 7S Framework:  A framework for analysing the seven interrelating framework elements of an organisational system.

Mediation:  Attempt by a third party to make the two sides in an argument agree.

MIS:  Management information system.

Mission statement:  A statement that makes clear the sport organisation’s purpose, principle business aims, identity, policies and values.

Modelling:  Forecasting technique normally involving the use of computer software; software is used to identify the nature and strength of relationships between variables contained in sets of data.

Motivation:  A psychological concept with no single universally accepted definition, but which organisational sociologists aver concerns the determinants of intent, effort and tenacity, factors that push or pull us as individuals to behave in a particular manner.

Multiple intelligences:  Howard Gardner argues that his intelligence does not stop at his skin and moves both intrinsically to his bio-psychological make-up and extrinsically to his social and natural environment.  Thus, the term encompasses seven intelligences that encompass the biological, psychological, social, naturalist and spiritual dimensions of our life.

National Recreation Centres:  Elite residential centres created after World War II.

Need services:  Services provided for all, regardless of means.

Needs:  The reasons why people buy/consume sport products.

Not-for-profit organisation:  An organisation whose primary purpose is other than making a profit.  To survive, a not-for-profit organisation must at least break even financially.  Hence: Not-for-Profit Sport Organisation (NPSO).

Obiter dicta (singular is obiter dictum):  Latin phrase meaning ‘things which are said in passing’:  part of a judgment, which is not essential to the decision of the judge and does not create a precedent.

Objectives:  The organisational goals that must be achieved if the strategic intent is to be implemented.

Operational sport marketing:  The execution of sport marketing involving research, analysis, planning, implementation and control.

Operations:  A transformation process; a function of an organisation and a management activity.

Organisation:  Used collectively to describe a group of people acting to achieve a common goal.

Pay-TV channels:  TV channels which receive their revenues mainly from charging the viewers subscription fees and/or pay-per-views.  Non-commercial PSB channels receive their entire incomes from public funding and/or licence fees.  Commercial PSB channels receive their main revenues from selling advertising.

Performance Measurement System:  Financial and non-financial comprehensive manner to monitor organisational progress.

PESTEL:  A framework for social/global analysis enabling a strategist to identify the key influences on his/her industry.

Plaintiff:  Person who is sued in a civil case.

Pool betting:  Betters buy stakes on certain events.  All the stakes are pooled.  At the close of betting the number of stakes is added up, a deduction made to cover operating expenses, profits, taxes and any other costs, and the total remaining divided up amongst the winning tickets and the pool distributed to the winning ticket holders as a dividend.

Porter’s forces:  The five forces which, according to Michael Porter shape competition within an industry.

Primary data:  Data collected specifically for a purpose; sources may include questionnaires, interviews and focus groups.

Professional:  Being paid to do an activity as the significant portion of one’s income.

Project brief:  The project brief is an instruction to the design team of what the project planning team expects from the facility.

Protective services:  Provided for the security of the population; run according to national guidelines.

Public service broadcasting (PSB) channels:  TV channels which have objectives other than the entertainment of viewers and the profitability of private broadcasting firms. 

Qualified privilege:  Protection from being sued for defamation given to someone only if it can be proved that the statements were made without malice. 

Quality:  The customer’s perception of the degree to which a product or service is fit for purpose.

Quality Standards:  Benchmarks of levels of service or design specification.

Return on capital employed (ROCE):  A key financial ratio that measures profit before interest and tax as a return on capital employed (i.e.  debt and equity).  ROCE can be decomposed into two constituent ratios - asset turnover (measuring the marketing efficiency with which sales revenue is generated from the asset base) and the net profit margin (measuring the operating cost efficiency with which profits are earned from sales revenue).

Rights fee:  The payment made in cash or in kind by the sponsor to the sponsee in order to secure the legal rights of association with an activity or an event.

Risk:  The probability that a specified hazard will result in an undesired event.

Risk management:  The overall process of ensuring that risks are managed in the most cost-efficient and cost-effective way.

Scenario:  Pictures of the future developed by those with an understanding of a business or an industry, and are often used to predict the longer term.  That is, a time in the future when past or current data may not be applicable.

Secondary data:  Data collected for a purpose other than the one a forecaster may use it for; sources may include newspapers, press releases, market research reports.

Service:  Unique characteristics of heterogeneity, simultaneous, intangible and perishable offering.

Shareholder value:  The present value of the future dividend stream expected to be generated by a company.

Slander:  Untrue spoken statement which damages someone’s character. 

Small- to medium-size business (SME):  A variety of definitions exist, the most widely accepted one being ‘a business employing fewer than 250 people’.

SMART objectives:  SMART acronym (Specific, Measurable, Achievable, Relevant and Time Bound) - if objectives are not SMART it is hard to ascertain if they have been achieved or not.

Special events:  The specific rituals, presentations, performances or celebrations that are planned and created to mark special occasions or to achieve particular social, cultural or corporate goals and objectives.

Sponsorship property:  The component, feature or name of an event or an activity which attracts the sponsor to make a payment in cash or in kind, and which the sponsor will subsequently acquire and be associated with following payment.

Sport marketing plan:  Formal written statement of marketing intent that summarises the key points of the operational sport marketing process.

Sport sponsorship:  An exchange between two parties whereby the sponsee receives cash and/or benefits in kind while the sponsor secures a right of association with an activity or event.

Sports brand:  The complete set of images about the sports organisation held in the mind of the supporter.

Sports promotions:  Short-term devices that convert the hesitant buyer into action.

Sports rights (also called broadcasting rights):  The rights to broadcast from a sporting event on TV or another media within a specific region, most commonly a nation. 

Spread betting:  The most sophisticated type of sports betting that enables more interesting bets to be placed on many events and contests such as a bet on the margin of victory.

Stakeholder:  Individual, or group which holds an interest in, has made a contribution to, or is significantly affected by, an entity such as a business, community or political organisation.  The contribution to, or impact of, the organisation may be financial, a contribution in kind such as voluntary effort, or may be intangible such as an emotional commitment/impact.  Stakeholder analysis has come to mean that the interests of all affected by a company or political decision should be considered not simply by those with a direct financial interest.

Staple bet:  The punter will bet on who they think will be the winner of an event, match or a race.

Stare decisis:  Latin phrase, (similar to Judicial Precedent), meaning ‘stand by preceding decisions’. 

Strategic collaboration:  Strategy through which one organisation works or combines with another organisation in order to achieve goals that would otherwise be unattainable; includes joint ventures, strategic alliances and partnerships.

Strategy:  A long-term plan that influences and directs all business functions.

SWOT Analysis:  Refers to an analysis of the strengths, weaknesses, opportunities and threats of an organisation or an event.

Tactics:  The behaviours through which objectives and, ultimately, the strategic intent is achieved.

Temporary fan:  Shows only a limited engagement that will not lead to high levels of loyalty or particularly fan-like behaviour.

The Sports Council:  Created in 1971 to help develop elite performers and increase overall participation.

Time series forecast:  Forecasting technique which utilises past and current data as a basis for extrapolating about the future.

Virtual communities:  Groups of people with similar interests who communicate and interact in an online environment.

Vision:  A clear, detailed picture of what should be achieved.

VMOST:  A framework for internal analysis. 

Wagering:  An agreement to pay out an amount of money based on the outcome of an unsettled matter.

Weighted average cost of capital (WACC):  The overall cost of a company’s financing calculated as the average of the after-tax interest rate on the company’s debt and required rate of return on the company’s equity weighted by the respective proportion of debt and equity in the company’s capital structure.  The WACC represents the capital market’s overall assessment of the rate of return that should be earned by the company to cover the pure time value of money, the risk premium and expected future inflation.  The WACC provides the company with the benchmark discount rate for evaluating average-risk projects.

Wolfenden Committee:  Established in 1957 to suggest how statutory bodies could assist in promoting the general welfare of the community in sport and leisure.

WWW:  World wide web is the graphical user interface supported by HTML that displays web pages on the Internet and is accessed using computer software called a browser.

Yenza:  A Zulu word which means taking small steps, exploring the risks as a dynamic collective or team and starting ‘to do’ the job so as to accumulate a holistic understanding of the human capital development process.  This results-centred bottom-up approach translates strategic HR planning and design efforts into ‘action’ that can be measured in human terms.