SM 370 Sport Finance Exam 1 Questions With 100% Correct Answers

SM 370 Sport Finance Exam 1 Questions With 100% Correct Answers New trend in global sports - answer-Sports Market in North America will grow. (71.1 B in 2018 to 83.1 B in 2023) -Revenue Sources -Gambling -New stadiums Four Major Revenue Sources - answer1.) Media rights 2.) Gate Revenue 3.) Sponsorship 4.) Merchandising Sports gambling industry - answer-The sport gambling industry has been transformed and is the most significant catalyst shaping today's sports market Facility Capital Funding/Financing - answer-The industry is reaching the end of a 20-year building boom involving more than $55 billion in facility construction across professional sports and intercollegiate athletics. ◦83 venues since 1996 ◦Driven by shortened lives of the prior facilities ◦More than 40% coming from public sources Ticket Subscription Products - answer-The industry continues to expand/refine ticket product offerings with further focus on seat rights flexibility, including expansion of ticket flex plan offerings and ticket exchange rights. ◦Subscription-based ticket products are emerging ◦More than 72% of MLB clubs have launched Short-term subscription products in 2017 Impact of Great Recession - answer-December 2007 through June 2009 ◦Worst economic decline in previous 80 years ◦Previous recessions had not affected sport participation or attendance ◦The Great Recession eroded this conviction Rising costs priced the middle income fans out of the market ◦Decline in attendance across sports landscape, including: ◦NASCAR -10% / Sporting goods sales -5.2% ◦HDTV exacerbated declines in attendance ◦Corporate sponsorships declined Financial Challenges - answer-Thinning sport fan base -Increased ticket price -Doing more with less Serious Challenges Facing Sport Managers - answer-•How to bring the cost structure under control (professional, intercollegiate and interscholastic sport) •Effectively competing in a market where only 15-20% of the population can afford to attend/participate. •How to approach new generation •Balancing the needs of different stakeholders •Increasing pressure for governing bodies to grow their sports internationally while maintaining local support What are the two factors that drive intercollegiate costs up? - answer-Title IX -Tuition Costs College athletics - answer•NCAA nearly topped $1 bill in revenue in 2016 •CBS/Turner signed $8.8B extension with NCAA to televise "March Madness" through 2032 (2016) •Yearly TV value at over $1B •Many schools making massive capital investment in sports programs: •The value of football teams (as of 2017) NCAA finances - answerNCAA (2014 fiscal year)