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Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

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II. Violence at Sport Events A. The 1972 Olympic Games (Palestinian terrorist attack on Israeli Olympians) B. The 1996 Olympic Games in Atlanta C. Several fights at professional, collegiate and high school games. D. Legal responsibilities of facility managers (Leger vs. Stockton) – Threats of violence should be taken seriously and preventive measures should be in place.

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Page 1: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Dr. Brian M. Hickey

An Overview of Sport and Leisure Facility Management

Page 2: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

IntroductionI. Globalization of Sport

A. Sport is one of the 10 largest industries in the U.S

B. There is a demand of for expertise in managing international events and facilities.

C. The global impact on professional and collegiate sports.

Page 3: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

II. Violence at Sport EventsA. The 1972 Olympic Games (Palestinian

terrorist attack on Israeli Olympians)B. The 1996 Olympic Games in AtlantaC. Several fights at professional, collegiate

and high school games.D. Legal responsibilities of facility managers

(Leger vs. Stockton) – Threats of violence should be taken seriously and preventive measures should be in place.

Page 4: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

E. Sport in today’s society has moved from spectator-based to entertainment (individual seats, club seats, luxury suites, etc.)

F. Technology and Sport – Smart cards for ticketless entry into games; purchasing tickets via internet; ordering merchandise and concessions using wireless technology.

G. Construction of Sport arenas/stadiums has increased by 23% (c. 2008)

Page 5: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Planning and Producing an EventA. What is event management

- A social and technical process that utilizes resources and influences human behavior to accomplish an organization’s goals.

- The planning and production of events through organization, communication, and the use of human and technical resources.

Page 6: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

The Event Triangle (Participants, Sponsors, Spectators ----Event Manager)

B. Steps in Planning and Producing the Event1. Event goals and objectives2. Identify strengths, weaknesses,

opportunities, and threats (SWOT)

Page 7: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

* Opportunities and threats are usually found outside of the organization’s environment (e.g. media exposure, potential sponsorship, etc….lack of resources to address unexpected problems, low attendance, etc.)

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3. Develop and Monitor the Planning Processa. Scheduling (computer programs)b. Assigning staff to specific duties and

responsibilitiesc. Monitoring the process (viewing the big

picture)

4. Event Logisticsa. Creating a checklist of specific tasks to be completed

Page 9: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

b. Delegating specific duties c. Creating a timetable for completion of

tasksd. Methods of effective communicatione. Empowering staff to make decisions and

solve problems when appropriate.f. Create or develop training sessions for

specific jobs if needed.

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5. Event Volunteers- Cialdini’s rules of influence:

a. Reciprocation (motivate by giving tangible or intangible benefits –T-shirts, hats, public recognition, chance to meet celebrities, etc.).

b. Commitment and consistencyc. Social proof (model proper and

professional behavior)d. Liking (volunteers cooperate and respect

people they like and admire)

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e. Authority (Managers who display good control, problem solving skills, knowledge, and authority are usually well respected by volunteers and staff members)

f. Scarcity (Volunteers like to feel as though they are a part of a special and elite group of people. Stress upon them that this is an opportunity that can be of great value in the future).

g. Draft and Conduct Pre-Event and Post-Event Briefings (Discuss the positive and negative activities that occurred)

Page 12: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

h. Event Cleanup and Closeouti. Accounting and Reconciliation

(Proper inventory of equipment and supplies, rentals, payments to vendors, distributors, information to media, publicly thanking sponsors, guests, etc.)

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Financing Sports FacilitiesI. Financing sports facilities can be a

complex and political issue that must be studied extensively before decisions are made.- Advantages and disadvantages of financing facilities for professional teams.- Financing facilities for colleges/ universities and communities.

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Financing cont.A. Types of facilities and there objectives

a. Private (to increase investors or shareholders wealth)

b. Public (to minimize cost and expand revenue or cash-flow)

In many cases, financing sports facilities occurs as a combination of both public and private funds.

Page 15: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Financing cont.B. What are the methods of acquiring financing

for sports facilities?1. Bonds (revenue and general obligation

bonds) – A fixed-income investment for which the issuer (e.g. state or local government) promises to pay a fixed amount of interest to the purchaser (you or me), including the principal at the maturity date.a. revenue bonds – tax revenues from hotels,

restaurants, tolls, cigarettes, etc. are used to pay the debt.

b. general obligation bonds – revenue secured through property taxes (the higher the value of the property, the higher the taxes).

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Financing cont.* Why are bonds issued or used?

- State and local government (and other agencies) have borrowing needs in many areas (e.g. to build roads, bridges, new schools, stadiums, arenas, auditoriums, etc.)

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Financing cont.Principal Issuers of Bonds

a. U.S. Treasuryb. U.S. Government Agenciesc. State and local government (municipalities)d. U.S. Corporationse. Foreign Corporations

Page 18: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Other types of funding strategies

1. Certificates of Participation (COPs) The government or municipality establishes a

corporation to raise money to build the facility, then leases back the facility to a group or organization to help pay the debt for construction and maintenance.

2. Tax Increment Financing Primarily based on the increased value of the land

or property located near the new facility. The increase taxes are used to help repay the bond or debt.

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Financing cont.C. Public and Private Cooperation

- This is usually accomplished when the public sector funds the project/facility and the private sector agrees to commit to specific revenue sources.

Example (revenue from private sector)- Rent/Lease Payment- Premium seating- Naming Rights- Vendor/Contractor fees- Parking fees, etc.

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Financing cont.D. Who should be on your sports facility

financing team?Owner, President, Director of ProgramFacility ManagerConsultantsUnderwriter (investment banker)ContractorArchitectLegal Counsel, etc.

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Financing cont.E. Things to consider when constructing a

sports facility 1. Purpose of facility2. Needs of the community3. Preconstruction or design phase

(start/completion of project, cost, etc.)4. Planning committee5. Use of consultants and individuals with

expertise in building sports facilities6. Legal concerns (risk management plan), etc..

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Financing cont.F. What is the importance of cash flow?

Cash is defined as money in the bank or securities (money market funds) with less than three months maturity.

Cash flow helps to finance postseason play, stadium maintenance, and other unexpected expenses.

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Financing cont.Examples of cash flow (received):

a. ticket salesb. concessionsc. licensed merchandised. litigation settlements, etc.

- Examples of cash flow (payouts)a. Salaries/wagesb. Payment of taxes (private facilities)c. Purchase of goods and servicesd. Refunds to customers (ticket sales, etc.)

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Financing cont.G. Public v. Private Financing (Pros &

Cons)- Proponents (argues that a new stadium will

bring new jobs, attract new fans, increase tax revenues at hotels, restaurants, etc.)

- Opposition (argues that a new stadium does not attract new money/revenue, it only redistributes what is already there; the jobs created and the tax revenue generated are too small to make a difference in the local economy)

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Financing cont.II. Funding College/University Facilities—

Sources Availablea. Institutional funds – Funds appropriated

specifically for facilities.b. Revenue from athletic eventsc. Fund-raising activitiesd. Student feese. User feesf. Corporate funding (part of fundraising)

Page 26: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

PrivatizationA. Privatization Defined

A form of public service delivery that involves the commercial (private) or not-for-profit sectors in delivering the service.

Privatization frequently occurs in the facility construction and event management of sports.

In the 1990s, four out of five dollars spent on stadium construction came from public funds; however, the management was mostly private. (Public-Private Partnerships)

Page 27: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Privatization cont.B. Rationale for Public-Private Partnerships

1. To increase efficiency and effectiveness of service.2. Cost effective (save money)3. Competition (forces the private company to deliver exceptional customer service or face a non-renewal contract).

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Privatization cont.C. Types of Public-Private Partnerships

1. Contracting out (outsourcing) – Example: food service vendor; grounds/maintenance; and franchising (giving the private firm exclusive rights to provide service in a particular area….rights to all concessions in the stadium).2. Commercialization – A company is allowed to completely take over services that was once provided by the government (e.g. youth sports programs; arts/community festivals, etc.)

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Privatization cont.3. Tax Expenditure Privatization – When the government offers tax incentives to organizations to produce a public service.

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Privatization cont.D. Event Promotion and Management

1. Since the 1984 Olympic Games in Los Angeles, several traditionally publicly operated events have been secured by private funds.

a. The Southern California Olympic Organization and the Los Angeles Olympic Organizing Committee (both private groups) were successful at promoting the games as a private event (surplus of $230 million)

Page 31: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Privatization cont.b. What were the “key factors of success” used by the private Olympic groups?1. Superior infrastructure (participation of local and state government; community groups; politicians, etc.)2. Creative event management (good promotion and marketing strategies…e.g. sponsorship for the Olympic torch relay)3. Television revenue4. Corporate sponsorship

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Privatization cont.E. Stadium Financing and Construction

- Many sports stadiums-especially professional sports- are financed through public funds; however, there are a few excepts:1. Pacific Bell Park (Giants stadium) – Financed through naming rights, concession rights, and sponsorships (Pacific Bell paid $50 mil for naming rights)2. Pepsi Center (Home of the Denver Nuggets & NHL Avalanche) – Financed through game ticket sales; concerts and rodeos; luxury boxes; parking, etc.

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Privatization cont.F. Private Sport Facility/Event

Management* The increase of public facilities outsourcing the management functions to private organizations.1. SMG is the single largest facility management company in the U.S.(As of 2003, SMG manages 156 facilities – 63 arenas, 7 stadiums, 31 performing arts centers, 44 convention centers, and 11 recreation facilities)2. Global Spectrum is the second largest company (manages 31 facilities)

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Privatization cont.G. Benefits and Drawbacks of

Privatization:a. Benefits (proponents views)

1. Quality service2. Efficiency3. Increase in number of jobs4. Lower labor cost5. Competition for contracts (leads

to improved service)6. No Unions

Page 35: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Privatization cont.b. Drawbacks (opponents views)

1. Leads to lower paying jobs with no benefits.

2. Economically inefficient3. Government is still responsible

for quality control.4. What happens if the company

goes out of business? .. Government has to take over.

5. Naming Rights...The company’s name could become a liability (e.g. Enron)

Page 36: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

ADA RequirementsA. The Americans With Disabilities Act (Public

Law 101-336) – The most significant piece of legislation created to protect the rights of those with disabilities.

1. A disabled person is defined as:A person with a physical or mental impairment

that substantially limits one or more life activities .

Having a record (medical) of such impairment. Is regarded as having such an impairment.

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ADA cont. B. History of ADA

1. Signed by President George H. W. Bush in 1990.2. The ADA began with the Occupational Safety and Health Administration (OSHA) in 1970… OSHA created specifications for equipment, maintenance, and safety in construction.3. The first set of laws was the Rehabilitation Act of 1973.4. Later, Public Law 94-142 was established(Education for children in a “least restrictive” environment)

Page 38: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

ADA cont.C. Components of ADA

1. Discrimination in employment2. State and local government concerns 3. Public accommodations4. Telecommunications5. Miscellaneous category

Page 39: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

ADA cont.D. Sports Facilities and the ADA

(Management issues and concerns)* The ADA regulations insure that:1. Reasonable accommodations should be made for those with disabilities.2. People in wheelchairs have options for seating prices (They should not be isolated and their line of sight is comparable to others in the arena).3. Newly constructed stadiums with over a 300-person capacity (a minimum of six seats be available in more than one location.4. Building codes - state and local laws determine guidelines for new construction.

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ADA cont.E. Public Accommodations Defined:

1. Places of Lodging (Ski Resorts, vacation hotels, etc.)2. Places of recreation (Parks, zoos, etc.)3. Places of public gathering (Auditoriums, conventions centers, etc.)4. Places of education (elementary and secondary schools; universities)

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ADA cont.F. What is Readily Achievable?

* The law states that … All places of public accommodation must move all barriers to access as long as such access is “readily achievable.”… If services cannot be provided, new services need to be created.

- Guidelines are clear for new construction, old facilities are more complicated.

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ADA cont.G. Facility Alterations and Cost

* The law stipulates that accommodations do not need to exceed 20% of the cost of renovation.1. Removing seats or leveling floors for wheelchair entrance.2. Installing communication aids (telephones) for the deaf.3. Accessible drinking fountains; etc..4. Cost (Regulations are not intended to impose undue hardship on sports owners.

- Tax breaks (Internal Revenue Codes #190 & 44) Code #190 - allows up to $15,000 expenditures deducted; Code 44 - If they qualify, small business can receive a credit of 50% of the accommodation’s cost.

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ADA cont.H. Exemptions (Private and/or religious

organizations)1. Private organizations are exempt from ADA requirement.2. However, if the establishment is open to the public or advertised in a public medium, it no longer holds private status.

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ADA cont.I. Planning for ADA Compliance

1. Managers should review ADA requirement carefully.2. Facility inspections for ADA compliance should occur regularly.3. Train staff members to identify compliance issues.4. Hire a consultant to assist with training and development.

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ADA cont.J. Specific ADA Compliance Areas

1. Parking areas (parking spaces)2. Entranceways (a minimum of 60” X 60” of level space for maneuvering)3. Public restrooms (specific heights are required for mirrors and towel dispensers)4. Water fountains (specific heights and easy control buttons are required)5. Etc..

Page 46: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Hiring Personnel

A.Introduction1. Numerous lawsuits involve

employment practices that facility managers should be aware of.

2. Inadequate hiring decisions and loss of productivity are common issues related to employment practices.

Page 47: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Hiring cont.B. Human Resources

1. The goal of Human Resource Management is to help the organization/company meet its short and long-term objectives.2. The objectives generally include staffing, promotion, evaluation, retention, benefits, and personnel policies and procedures.3. The human resource manager is the most important person to give advise dealing with personnel concerns related to state and federal laws/statutes.

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Hiring cont.C. Preparing for the Job Announcement

1. Structure the job analysis (determine the need for the position and the role of the individual)2. Identify the job responsibilities3. The position should be identified on the organizational chart (line of authority)4. Conference with the office of EEOC

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Hiring cont.D. Writing the Job Description

1. Job Title2. Duties and Responsibilities (specific)3. Job Qualifications (training, experience, degree requirements)4. Starting and Closing Dates5. Contact Person Information

* Job descriptions should be based on bona fide occupational qualifications (BFOQ)…. discrimination is acceptable if the job requires specific skills (e.g. bilingual, heavy lifting, etc.)

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Hiring cont.E. Recruitment (Internal & External)

1. Internal Recruitment (hiring or promoting personnel within the organization)Advantagesa. The person is familiar with the company (little training is needed)b. Helps build morale and loyaltyc. Cost effectiveDisadvantages a. Sometimes creates tension within companyb. No outside views or experiences

Page 51: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Hiring cont.2. External Recruitment (hiring personnel outside of the organization) Advantagesa. Use of employment agencies, college placement centers, internships, etc.b. Outside views and experiencesDisadvantagesa. Can be expensive (recruitment cost, training, etc.)b. Legal issues occur if strict hiring practices are not used.

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Hiring cont.3. Steps in the recruitment and hiring processa. Position requestb. Request approval then post positionc. Receive applications for positiond. Screening process & reference checke. On-site or telephone interviewf. Recommendation for hiringg. Offer contract (negotiations)h. Hire employee

Page 53: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Hiring cont.F. Data Collection (gathering specific

information)1. Resumes2. Cover letters3. Letters of recommendations4. Official Transcripts (degree)5. Application forms (general categories…pg 78)

* The EEOC requires that all accepted resumes be kept on file for two years.

Page 54: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Hiring cont.Data collection cont.

- Questions that may not be used on a job interview or application (pg. 79)- An “Affirmative Action/Equal Opportunity Employer” statement should be used at the end of the application.- Candidates that are not accepted should be sent a letter of rejection in a timely fashion.

Page 55: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Hiring cont.G. The Interview Process

- Types of interviews1. Preliminary Interview (screening applicants for qualifications)2. Decentralized Interview (the interview between the candidate and the person he/she will be working for directly)3. Team Interview (several persons interview a candidate simultaneously)4. Group Interview (when a single interviewer interviews several candidates at once).5. Structured Interview (a standard list of questions used in the interview)

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Hiring cont.Interview process cont.

Special circumstances (interviewing candidates that will be working with children)

Testinga. Psychological tests (personality tests)b. Drug testing (if job is linked to safety)c. Physical/performance tests (should be

directly related to the job)d. Polygraph test (lie detector)…not legal to

use

Page 57: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Hiring cont.H. Discrimination and Negligence

1. Title VII of the Civil Rights Act of 1964 (Prohibits wage discrimination in employment…. Hiring, discharge, recruitment, compensation, etc… on the basis of race, color, religion, sex, or national origin.* Covers employers with 15 or more employees.

Page 58: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Hiring cont.2. Types of Discriminationa. Disparate treatment (discrimination based on race, gender, color, religion, or national origin)b. Disparate impact (addresses consequences of employment practices… e.g. a job advertisement that does not justify why a person has to be a certain height or weight)

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Hiring cont.3. Negligence in the hiring processa. Failure to exercise a standard of care (discrimination practices).b. Hiring a person that is known to be dangerous or violent.c. Harming a person’s reputation (defamation) during the interview process…. Publicly sharing your perception of a person’s weaknesses

Page 60: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Hiring cont.I. Final Negotiations

1. Salary negotiations2. Working conditions, promotions, etc.3. Employee manual/handbook4. Signed contract* Note: If you discover that the employee

falsified information on the application, termination should be seriously considered.

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Contracts Contract – An agreement between parties

which is enforceable by law.A. Introduction

1. The use of contracts in sportsa. Television and sponsorship coverageb. Contest schedulingc. Player and coaches assignmentsd. Game officialse. Licensing agreements, etc..

The contract should represent the worst-case scenario to prevent mishaps.

Page 62: Dr. Brian M. Hickey An Overview of Sport and Leisure Facility Management

Contracts cont.2. The Uniform Commercial Code

(UCC): This code addresses commercial transactions in all states except Louisiana.

- Article 2 of the UCC addresses the sale of items such as game tickets, leasing of goods, etc.

- Coaching contracts, facility lease agreements, scheduling contracts, etc. should be in writing.

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Contracts cont.B. Types of Contracts

1. Bilateral Contracts – Each party has agreed to perform a specific act on the condition that the other party will perform an act.

2. Unilateral Contract – Only one party is commissioned to perform the act and the other party is not bound to accept the offer. (e.g. making a verbal contract offer to a coach without a signature [with witnesses]--- if the coach agrees, you are obligated to pay him the amount discussed)

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Contracts cont.C. Elements of a Contract

1. Offer – A conditional promise made by one party to another.- A specified time (for acceptance) should be placed on the contract.- Option Contract – If the buyer wants to keep the contract open for a certain period of time (buyer may have to pay the seller…deposit)- If the buyer decides to decline the offer, the buyer loses the deposit (e.g. real estate sale)

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Contracts cont.2. Acceptance – The buyer accepts the offer by the seller (must be under the same terms as the original offer).3. Consideration – Is the exchange of value between parties…. The inducement to a contract (e.g. the cause, motive, price, rights, benefits, etc.)4. Legality – The contract must be performed under legal rules (e.g. loan sharks, unlicensed professionals, etc. are not acceptable in a court of law)

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Contracts cont.* Elements of a contract cont…

5. Capacity – The ability of the parties to understand the nature of the contract and the responsibilities (e.g. a mentally competent person; a person over the age of 18, etc.)6. Intent and specificity – Serious intent must be made by both parties before the contract can be enforceable (a legally binding document must be drawn)

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Contracts cont.D. Errors in Contracts

1. Misrepresentation - The facts must not be intentionally or unintentionally construed)2. Undo influence/duress – A person cannot be unfairly persuaded or forced to enter a contract.3. Mistake – Written mistakes in the contract can be corrected. However, if the mistake is mutual, it may not be a reason to void the contract.4. Integration and parole evidence – If the contract states that it will be upheld “as is” and no other previous agreement will be allowed, the Parole Evidence Rule comes into place…. the contract will be upheld as written.

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Contracts cont.Errors of contracts cont.

5.Breach of Contract - When one or both parties fail to perform a duty imposed under the contract.

E. Damages – A breach of contract may lead to compensatory packages or liquidated damages.- Compensatory – To compensate the injured party for the injury sustained, nothing more.- Liquidated – When parties agree in advance (written in contract) the amount of damages for a breach. (e.g. A game contract may state that if the team does not show up to play, $50,000 in damages must be paid).

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Contracts cont.F. Delegation of Duties & Defense to a

Breach1. Delegation: If a party is unable to

fulfill the duties of the contact, he/she may delegate it to another person or contractor.…..However, if the new contractor does not fulfill the contract, the original party may be held liable.

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Contracts cont.2. Defense to a breach:

a. Impossibility of performance (when one of the parties suffer a serious illness, death, etc.)

b. Frustration of purpose (when the value of the contracted item becomes worthless due to unforeseen circumstances…. hurricane destruction, earth quake, etc.).

c. Impracticability (the cost of fulfilling the contract has dramatically increased… due to a 10-day rain storm, snow storm, etc.)

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Contracts cont.G. Elements of a Facility Contract

1. Rent/lease amount2. Method of payment3. Personnel4. Radio and TV arrangements5. Setup, etc.

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Contracts cont.H. Elements of Game and Event Contracts

1. Location2. Date/Time3. Guarantees4. Broadcast rights5. Complimentary tickets6. Nonperformance clause, etc…

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Contracts cont.I. Issues to Consider in Game and Event

Contracts1. Licensed Merchandise2. Lease agreements3. Security4. Parking5. Emergency care6. Concessionaires, etc..

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Contracts cont.J. Implied Warranty of Merchantability and

Implied Warranty of Fitness1. Implied Warranty of Merchantability (The warranty is not in writing; however, you have purchased items from a particular seller on several occasions and certain expectations are evident)2. Implied Warranty of Fitness (The product purchased from the seller is suppose to do what the seller says it will do)

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Contracts cont.K. Product and Strict Liability

1. Product liability – When liability is imposed on the manufacturer or seller of a defective product.2. Strict liability – When the buyer proves that the product or goods were unreasonably dangerous, defective, and caused injury.

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Risk ManagementA. Risk Management (def) – The control

of financial and personal injury loss from sudden, unforeseen, or unusual accidents and intentional torts. (financial losses: stolen equipment, vandalism, poorly written contracts, etc.)-(def. 2) Reducing exposure to danger, harm, or hazards leading to lawsuits.- Research indicates that from 1977-1987 lawsuits involving sport and recreation events increased 150%. (An increase in the number of facilities and sporting events will cause the number of lawsuits to steadily rise)

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Risk Management cont.B. Risk Management Plan (Elements

involved):1. Date and type of event2. Insurance (type of insurance required)3. Staffing (type and number of personnel needed)4. Facility consideration (facility needs and issues)5. Maintenance (type of maintenance needed and who will perform the task)6. Business operations (how will the money and cash deposits be handled?)7. Evaluation Plan (who will evaluate)

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Risk Management cont.C. Using the DIM process in risk

management:D – developing the planI - implement the planM – manage the plan

D. Developing the plan consists of three steps: (1) identifying the risks; (2) classifying the risks; and (3) treating the risks

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Risk Management cont.Developing the plan cont.1. Identifying the risksa. What are the potential risks?b. What are the primary and secondary risks involved?- primary risks (personal injury, financial loss, employees, etc.)- secondary risks (weather, facility location, attendance, etc.)

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Risk Management cont.Developing the plan cont.

2. Classifying the risks a. Risks should be evaluated

as frequency and severity.- frequency (how often it

occurs…. often, average, or seldom)- severity (the intensity of the

loss … high, moderate, or low)

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Risk Management cont.Developing the plan cont.

3. Treating the risksa. Avoidance (avoiding all high

risk events or activities)b. Transfer (transfer risks to

insurance companies)- Personal injury liability

insurance (used when patrons or participants are injured)

- Property insurance (used for damages to property; e.g. light fixtures, walls, restroom stalls, etc.)

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Risk Management cont.Developing the plan cont.Transfer….- Workers compensation (used for employee injuries on the job) c. Retention of risks (allocating funds in the budget to cover damages that may occur)d. Reduction of risks (better training of workers and good standard operating procedures (SOPs)

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Risk Management cont.E. Implementing the Plan

- The plan is part of your SOP (standard operating procedures)- All employees are aware of the plan

F. Managing the Plan- Hire a person to specialize in risk management (Office of Risk Management)- Divide duties among employees

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Facility NegligenceA. Negligence (def): Failure to exercise the

standard of care that a reasonably prudent professional (RPP) would have exercised in a similar situation.- Avoidable accidents that should have been anticipated and prevented.- Something a person did or did not do resulting in harm to another person.

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Facility Negligence cont.B. Elements of Negligence

1. Duty (To act with reasonable care so that harm will not come to others… duty could be general or specific…. specific is a legal relationship between the service provider and another)2. Breach of Duty (failure to meet the duties or obligations)3. Causation or Proximate Cause (there must be a connection between the negligent act and the injury)4. Damages (compensation for mental or physical harm)

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Facility Negligence cont.C. Responsibility/Liability (individuals that

can be held liable)1. Employees2. Administrative/supervisory personnel3. Corporate entity/company (vicarious liability)

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Facility Negligence cont.D. Premise-Related Issues

1. Facility Liability a. If the cause of injury is directly related to the facility, the owner/manager is liable.b. If the injury is directly related to the activity/sport, the owner or manager may not be liable. (waivers/releases)c. Facility upkeep is extremely important (maintenance, inspections, etc..)

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Facility Negligence cont.2. Types of Patrons

a. Invitee (paid ticket holder, club member, etc.)

b. Licensee (someone who is allowed to use facility for no fee… people in a public park, church participants, etc.)

c. Trespasser (unauthorized user)d. Recreational user (can be treated

as a trespasser if no fee is paid)

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Facility Negligence cont.3. Activity related issues (proper safety conditions and emergency care plans are expected for specific activities)4. Emergency Care (plan for all facilities) 5. Supervision (80% of all suits come from lack of supervision)6. Conduct of the Activity (standard of care, rules enforcement, proper safety equipment, etc.)

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Facility Negligence cont.7. Defense Against Liability

a. Negligence elements not metb. Primary assumption of riskc. Contributory negligenced. Ultra Vires act (the act was

beyond the normal duties of the employee)

e. Facility lease agreementsf. Indemnification agreement

(reimbursement for injury)

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Facility Negligence cont.g. Independent contractorh. Pure comparative fault (award

amount is reduced by the amount of fault by the plaintiff)

i. Modified comparative fault (plaintiff can recover up to that which he/she is 50% at fault)

j. Statute of Limitation (the time allotted for a claim… differs in many states)

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Facility Negligence cont.E. Immunity

a. Recreational immunity (protects landowners who let people use their sites for no fee)b. Volunteer immunity (protects volunteers who act within the scope of their duties)c. Good Samaritand. Human Resources Law (issues addressing harassment and a hostile work environment)

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Facility Negligence cont.F. Waivers and Releases (waivers and

releases are usually used interchangeably)1. A person who signs a waiver or release is basically giving up their right to sue for negligence.2. In facility management, a waiver is any document that seeks to transfer liability from the facility manager to a participant or spectator.