economic sports

Econ 4830: Economics of Sports

Fantasy Sports Project

Issue #3

League Sponsorship Opportunity

DUE: 10-4-18

In an effort to secure revenue for the league, the commissioner has been active in pursuit of sponsorships. Promising leads have been developed for corporate partners. Our league must decide if we would like to accept the offer of one of the following companies to become our top corporate partner of our league. The primary benefit our top corporate partner would receive is their name and logo on all league materials (schedules, webpage, etc.).

This partnership will provide revenue, but it also ties our organization to the activities of the sponsor. There are other potential sponsorships and other revenue opportunities (that may be more lucrative) that are nearing completion. Any activity we take may impact future operations, especially if it changes fan perceptions of our league. As usual, all offers are open to negotiation.

The following offers have been made:

AEP (Electric Company) : 42 total credits + technology

· Provide each team with 3 credits of revenue for the right to be the top corporate partner

· Install at AEP’s expense energy efficient and environmentally friendly technologies in every franchise’s stadium.

Crazy Horse Gentlemen's Club (a made-up company, but you get the idea): 70 total credits

· Offered to provide 5 credits per team for the right to be the top corporate partner

Budweiser: 52 total credits

· Offering the following for the right to be the top corporate sponsor:

· Offering to provide 3 credits to all teams

· Offering additional 2 credits to the 5 teams that have the highest predicted win totals as of October 4.

Columbus Children’s Hospital: 14 total credits

· Each team earns 1 credit and then 3 credits are donated in their name to the children’s hospital

We can only have one “top” corporate partner. We do not necessarily have to have one.

We must have a majority vote (8/14) in favor of adopting any of the offers or no action will be taken.

Grading

Papers will be awarded points based on the following criteria:

60% Strategic Content Does your paper clearly address the pros and cons of each potential sponsor and the effects on the league? Is this analysis of the issue logical? Does your strategy properly use economic concepts correctly when appropriate?

30% Writing Mechanics and Structure Does your paper include an introduction and a conclusion? Did your paragraphs make a point? Are there any grammatical or spelling errors?

10% Relative Paper Quality Completely based on the subjective opinion of the commissioner the top paper will receive all 10 points. Others will get points based on relative quality.

Fantasy Sports Grading Rubric