Executive Summary
The evolving sports industry is facing increasing demand for information as well increased pressure to implement technology by consumers (fans) and shareholders. Information technology in particular is finding its way into the sports industry via video, online-streaming, and RFID systems. These systems are being used to track athlete performance, aid in advertising and merchandising, expand event broadcasting accessibility, and ultimately increase franchise profits. Data-mining software in particular has found many applications in the sports industry such as scouting, team strategy, and statistical analysis. Observed drawbacks of the increased implementation of information technology are the legal implications that must be addressed and the constant battle over royalties and copyrights.
Background
All industries are driven towards the same goal, to become successful and make money, and the sports industry is no different. When looking at how money is made in or through sports there are many different areas to consider, such as ticket sales, merchandise sold and advertising space to name a few. However one can’t also forget the importance of “on field” performance, which is also a major factor in most markets when evaluating success of a team/player/franchise and ultimately making a high profit. It is no coincidence that the teams/players performing at the highest level will, on average, consistently sell more tickets (usually for a higher value) then teams struggling to win.
Although the business of sports relies on many different factors to be successful, some of which were noted previously, make no mistake that all of them are connected to one another. If a team is not successful, who will w ...