The Maryland Office of Sports Marketing is about to change into anonprofit with the goal of bringing in more money from businesspartnerships to attract large national and international sportingevents.
The idea of a public-private sports marketing entity had been inthe works for years, and officials hope the independent office willbe open by the spring. The new agency, called the Maryland SportsCouncil, will be the first such entity in the state, and among onlya few statewide commissions in the country.
Sports marketing industry members say that such an agency willmake it easier for Maryland to lure big events and big dollars.
'We're going to change the culture of sports in Maryland to beglobal,' said Terry Hasseltine, director of the Maryland Office ofSports Marketing. 'Why can't we host an international volleyballmatch between Team USA and Team Russia? If we can't, then why can'twe? Maybe we should figure out how to change that.'
The partnership's inception came when Maryland Office of SportsMarketing was formed in 2008 as a two-man agency. The MarylandDepartment of Business and Economic Development and the MarylandStadium Authority hired Hasseltine to head the office and work onthe idea of creating the new council after the first few years ofworking in Maryland.
Hasseltine said he looked at successful parts of different sportscommissions across the country, particularly the nonprofitcommissions in Louisville, Ky.; Utah and Indianapolis, as models forthe Maryland Sports Council.
'Public-private is the best way to run a sports commission,' saidDon Schumacher, executive director of National Association of SportsCommissions in Cincinnati.
About 25 states have government involvement in sportscommissions, Schumacher said. But 10 years ago, only two or threestates had government involvement, he said. The balance of public-private commissions is becoming more popular and more successfulbecause the financial load is shared, and because local governmentsare catching onto the economic importance of the sports travelindustry, Schumacher said.
Maryland's commission will be one of the few that will market theentire state as a venue for different sporting events, he said.
'My suspicion what has happened is that Maryland said, 'We'rekind of a compact state,' and there are going to be things theentire state can do to throw out the welcome mat,' Schumacher said.
Hasseltine said he also waited until Maryland and the nation'seconomic environment improved before filing with Internal RevenueService to create a 501(c) 3 nonprofit organization. Thatapplication was approved at the end of 2010, and Hasseltine is nowasking for business members from across the state to create acommittee for the Maryland Sports Council. Hasseltine said he hopesto have eight members appointed by spring 2012. The number ofmembers could grow as large as 50, Hasseltine said, to represent allthe state's regions.
Those members will be able to create subcommittees andpotentially levy membership fees to boost the group's budget.
The Office of Sports Marketing's operating budget is $250,000,with $200,000 coming from the Maryland Stadium Authority and $50,000from DBED. Hasseltine said he wants to increase the operating budgetto about $550,000 to $750,000 by 2014, with most of the money comingfrom business partnerships.
MSA and DBED will continue to fund the agency as it transitionsinto the nonprofit, said Maryland Stadium Authority ExecutiveDirector Michael J. Frenz.
'If the 501(c) 3 garners corporate support, it really facilitatescorporate resources,' Frenz said.
The structure of the agency would also give it more flexibilitywith revenue, such as being able to sell advertising for events, MSAofficials said.
