As the wide world of sports continues
to expand, more and more students
are studying for a SportsMBA.
Whether an applicant for a job is a former
professional jock or someone straight out
of college, a master of business degree is
something that is often required.
“SportsMBA students research and study
critical sports industry areas such as sponsorship, Internet marketing and sales,” says
Jim Lackritz, an associate dean for academic affairs in the College of Business Administration at San Diego State University.
Smart Business asked Lackritz about the
importance of a SportsMBA in today’s business world.
Why would someone be interested in a
SportsMBA program?
Individuals interested in a SportsMBA program have a passion for sports and seek a
career in the sports industry. The sports
industry is extremely competitive and there
are often hundreds of applicants for each
open position. People with a SportsMBA
degree have an advantage in landing that
first position and the skill sets and talent to
move into positions of more responsibility.
The SportsMBA program focuses on
issues specific to the sports industry covering a wide variety of applications from professional and amateur sports, equipment
and apparel companies and corporations
that are major players in sponsorship and
advertising. Students not only learn about
industry specifics but also study the roles of
the functional business areas (accounting,
finance, operations and data analysis, information technology, management and marketing) in the day-to-day business operations
of the sports organization. SportsMBA students research critical sports industry areas
such as sponsorship, Internet marketing,
revenue streams, cost analysis, innovation,
stadium site assessment, economic impact,
international issues and player evaluation.
Is a SportsMBA required for any specific
positions?
No position requires a SportsMBA degree.
The sports industry is no different from traditional businesses in that it wants people who understand the industry and have the
needed business skills and knowledge.
Like other businesses, many upper-level
management people have MBA degrees,
however, very few actually start at the upper
levels of management. When people get into
the sports industry, they need to make a
good impression on their employer so that
their job responsibilities are expanded.
How has the sports environment changed in
the last 20 years?
Twenty years ago, we were still transitioning from sports as a low-cost hobby and pastime. The amount of money spent on sports
activities was starting to increase but was
not a major part of the gross national product. ESPN and the Internet were still in
infant stages and were more of a gimmick
than a way of life. Michael Jordan was just
becoming an American icon, and Nike was
at the early stages as a major player in the
sports industry. Player salaries were just
reaching multimillion-dollar levels.
Today, in the Tiger Woods, A-Rod, Peyton Manning and LeBron James era, top athletes
make $20 to $100 million per year in salaries
and endorsements. The New York Yankees
are estimated to be worth $1.3 billion and
employ thousands of people within the
organization, as do other sports franchises.
Nike is among the biggest corporations in
the world, and companies like American
Express, Anheuser-Busch and Sony spend
hundreds of millions of dollars annually on
advertising and sponsorship of major sporting events. Super Bowl advertising costs are
more than $1 million per minute.
A new push in women’s sports follows the
popularity of women’s tennis and golf. While
the women’s NCAA basketball Final Four
does not compare to the men’s, its growth in
popularity and ratings in the past 10 years
matches that of the men’s game from 20 to 30
years ago. More females are reaching upper
management positions in the industry. Our
current class is 40 percent female, and we
have some terrific female alumni who you
will be hearing about in the next few years.
Where do you see the sports industry going
in the future?
Globalization is the future. While the U.S.
used to dominate in baseball, basketball
and golf, the best athletes in these sports
now come from all over the world. One of
the most popular NBA basketball players is
Chinese, and the best women’s golfer is
from Mexico. MLB baseball had exhibition
games in Beijing and opened its regular
season in Japan. The NFL has regular season games in Europe and Mexico.
Go to any gymnasium or baseball or
soccer field on a daily basis and see not
just young children already spending
hours on their dreams, but parents willing
to spend thousands of dollars on their
prodigy or to send them to professional
training programs. This is an international phenomenon, with young children
playing basketball in China, soccer in
Africa, golf in India and tennis in Russia.
This is the future of sports.
JIM LACKRITZ is associate dean for academic affairs in the College of Business Administration at San Diego State University. Reach
him at (619) 594-3026 or [email protected]. SDSU’s College of Business Administration has a strong international focus. This
year’s SportsMBA class has eight international students, representing Canada, Mexico, Brazil, Germany, India and Japan. As sports continue to break through cultural and political barriers, SDSU will be at the forefront of educating the future industry leaders.