An Introduction to Sports Business
Angel Guo, the author of this resource, is our Founder and Editor-in-Chief.
The magic of sports is not fully explainable. In a single second, millions of people around the world are captivated by the image of the same ball, the same athlete, the same play. I truly can say no more than that there is simply something natural and something human about moving our bodies and exerting our effort to the fullest limit of our abilities. In any time and place, people would agree on this much. But, the implements, stars, and rules within the games themselves vary widely throughout history and across the world. The power of a sport is to draw the eye, but there is much more than what the eye sees.
My favorite sport is basketball, and my favorite team is the Golden State Warriors, as I’ve lived in the Bay Area my entire life. The Warriors’ offense has challenged the dynamics of basketball culture today. Basketball legends like Michael Jordan and Kobe Bryant dominated the 2000’s era with their signature one-on-one battles. However, when the league allowed for zone defense, a defensive type where players guard areas of the court instead of sticking to individual opponent players, this paved the way for three-point specialist teams, notably the Golden State Warriors. Not only did coach Steve Kerr flip the pace of the game and find success with his signature “small ball” style offense, sacrificing height for speed and emphasizing three-point scoring, his offense also encouraged a unique business model for the Warriors.
In the sports world, NIL, or Name, Image, and Likeness, increasingly became profitable. The Warriors team didn’t get their start trading superstars–most of their star players were drafted. Kerr pushed a team-based offense which allowed multiple players to rise to stardom. The team’s core, Steph Curry, Klay Thompson, and Draymond Green, were all drafted and became household names. This team-based culture was also reflected in the fan base with fans holding signs reading “Strength in Numbers.” From a business perspective, the inclusion of fans empowers fans to stay loyal to the franchise, pulling fans to the stadium and increasing ticket and merchandise sales. More marketable and memorable phrases came to the forefront as the dynasty progressed, including the signature label “Splash Brothers”, describing the raw talents of Curry and Thompson at the three-point line. This label would ring across the league, bolstering their NIL, flooding the team with endorsement bids.
Combined with the unique shifts in offensive strategies, the undeniable team chemistry, and the likeness of the players, Steve Kerr inadvertently created a recognizable and memorable brand for the Golden State Warriors, resulting in multiple marketing opportunities and a unique pull to fans, walking away with 4 championship titles as the Warriors head coach. According to Forbes, the Golden State Warriors stands at number 2 on the list of the Most Valuable Franchises in the NBA, valued at a whopping $5.6 billion, $200 million short of the significantly-less successful New York Knicks.
I have always been captivated by the innovative Warriors brand, and it fostered my interest in Sports Business. This past summer, I had the opportunity to attend Wharton Sports Business Academy, a 3-week program for high school students held at UPenn. The academy was led by seasoned leaders in the sports industry (notably former Washington Nationals Assistant GM Sam Mondry-Cohen) who taught us the basics and nuances of sports business, as well as the different career avenues that we could pursue within the business. We began each morning by discussing current events in the sports world, followed by a lecture and discussion of readings, including topics about the history of sports business, professional and amateur athlete pay, and the impact of social issues on the industry. Later in the day, we would meet with guest speakers, such as student athletes, broadcasters, and business leaders, to talk about their experiences and highlight the different moving parts of the sports world. We finished off the day splitting off into small groups to collaborate on a final project where we had to create a proposal for a money-making NIL partnership between an athlete and a company.
I really enjoyed working with my classmates on our group project, especially because we chose Francesca Belibi, a Stanford Women’s Basketball player–not only is she a first-generation woman of color, but she represents Stanford, which is close to my hometown. Our proposal between Belibi and Dunkin Donuts felt compatible because Belibi is known for her game above the rim (allowing for easy wordplay, “FranBDunkin”) and the Dunkin Donuts franchise is looking to expand to the west coast. I enjoyed connecting with my groupmates, and because I feel confident with public speaking, our presentation felt natural and engaging.
I loved my experience at Wharton Sports Business Academy, and I could see myself working in the field of sports business or even business management in general. Throughout my camp, I was most drawn to the discussion surrounding the front-office aspect of the industry because it aligns with my strengths in creativity, negotiation, and interaction with others. Our reading, “The Business of Sports” by Scott Rosner and Kenneth Shropshire, discussed how the source of profits shifted from selling tickets to NIL of franchise and player brands. The book talked further about how players become “idolized,” and with the rise of social media within the last decade, I was able to see the connection to NIL as a major profit-maker. I also enjoyed the discussion about women’s equality in the sports industry. As a woman myself potentially pursuing a male-dominated field, I know that I’ll face my own obstacles, but the women guest speakers emphasized representation and how important it was for women to create their own space. I felt inspired by their drive, and I want to be able to inspire other women to succeed in this business, too.
I would highly recommend Wharton Sports Business Academy to any high school student interested in pursuing a business career that is dynamic and lucrative. I left this program feeling confident in my intended career path and knowing where to begin.
Sources for Sports Business and Analytics
Front Office Sports https://frontofficesports.com
Sports Business Journal https://www.sportsbusinessjournal.com/Daily.aspx
Five Thirty Eight https://fivethirtyeight.com
Wharton Sports Analytics and Business Initiative https://wsb.wharton.upenn.edu/?_gl=1%2A14dlo4l%2A_ga%2AMTM1Njk5MzMyLjE2Njc2MTM1Mjc.%2A_ga_2QNGY0KQFG%2AMTY2NzYxMzUyNy4xLjEuMTY2NzYxMzUzMS41Ni4wLjA.%2A_ga_B5B4E387GY%2AMTY2NzYxMzUyNy4xLjEuMTY2NzYxMzUzMS41Ni4wLjA.
