SPORT BUSINESS PRACTICES FINAL
EXAM
Why does a sponsor spend so much money to name a stadium? - Correct Answers -
exposure
return of investment
official (something) of the team
idea of winners rub off
rights to use team logo in conjunction with your logo
name.
identification and logos on stadiums
How are new pro sport stadiums typically funded - Correct Answers -Private
(ownership) funding- PSLs, Naming rights
Public funding- tax dollars (subsidies, governmental dollars)
Municipal Bonds - Correct Answers -require public vote
backed by government
spread across all taxpayers (property tax)
investors buy bonds as relatively risk free
Restricted Free Agency - Correct Answers -you can negotiate with a team you arent
playing for, but the current team can match the offer
Unrestricted Free Agency - Correct Answers -no restrictions and you can negotiate what
ever you want
NCAA purpose - Correct Answers -Maintain intercollegiate athletics as an integral part
of the educational program and the athlete as an integral part of student body and, by
doing so, retain a clear line of demarcation between intercollegiate athletics and pro
sports
Collective Bargaining Agreement (CBA) - Correct Answers -contract between
employees and management that lay out rules regarding how the two sides will conduct
business with each other during the contract and how they will resolve disputes
Labor Union - Correct Answers -organization of workers formed for purpose of
advancing its member' interest in respect to wages, benefits, and working conditions
,What were the terms of pro sport employment like before the players began to negotiate
collectively with owners - Correct Answers -freedom to move
growth in salaries
health benefits and pensions
no minimum salaries
What 3 reasons is a CBA is important to a pro sports leagues - Correct Answers -key
decisions about the division of league revenues between owners and players
majority of pro athletes having playing careers of 3-6 years, impacting max earnings
strike and lockouts lead to industry shutdown
what is the ncaa - Correct Answers -voluntary association of member institutions and
conferences
members are required to follow the rules
will serve specific needs
Who makes the rules in the NCAA manual - Correct Answers --member institutions
through voting and representative bodies
*Board of Directors and Executive Committee*
Division One NCAA Philosophy - Correct Answers -reference to entertainment value
and goal of competition on a regional and national scale
(athletic scholarships)
Division Two NCAA Philosophy - Correct Answers -provide high level regional athletics
competition but in an environment that is committed to a different educational
experience that D1 can typically offer
(smaller class, coaches as teachers, community service, athletic scholarships)
Divison Three NCAA Philosophy - Correct Answers -reference to participant's
experience more than spectator
no athletic based scholarships
NCAA functions - Correct Answers -enforce and interpret the rules the member ship
adopts
central operation
championships
formulate and publish rule
maintain records
encourage and support member schools and conferences in adoption of rules,
governing academics, sportsmanship and amateurism
, NCAA Academic Progess Rate - Correct Answers -Measurement of academic progress
by teams at each NCAA member school
Failure to comply with minimum APR levels can lead to significant penalties (loss of
scholarships, practice time, post season play)
900 cut off
How does the NCAA generate revenue - Correct Answers -mainly through broadcasting
rights
85-90% from March Madness
NCAA Media Deals - Correct Answers -March Madness
Womens Final 4
Mens CWS
Womens CWS
Wrestling chamionship
NCAA Revenue Spending - Correct Answers -distribution to schools and conferences
programs to benefit the student athletes
conduct Championships
Sport Sponsorship and Scholarship funds - Correct Answers -provides money to d1
members based on number of full scholarship equivalencies
provides money to D1 member for each sport sponsored starting with the 14th
Division One Basketball performance Fund - Correct Answers -Provides money to D1
conferences based on performance in march Madness
6 year rolling period- each game a team plays in earned its respective conference one
"unit
Conferences are encouraged but not required to distribute funds equally
Division One championships fund - Correct Answers -provides money to support the
opportunity to compete for a national championship
support for (travel,food,lodging)
Student Assistance Fund - Correct Answers -Distributed to d1 athletes for essential
needs that arise during their time in college
(educational, health and safety, personal expenses)
EXAM
Why does a sponsor spend so much money to name a stadium? - Correct Answers -
exposure
return of investment
official (something) of the team
idea of winners rub off
rights to use team logo in conjunction with your logo
name.
identification and logos on stadiums
How are new pro sport stadiums typically funded - Correct Answers -Private
(ownership) funding- PSLs, Naming rights
Public funding- tax dollars (subsidies, governmental dollars)
Municipal Bonds - Correct Answers -require public vote
backed by government
spread across all taxpayers (property tax)
investors buy bonds as relatively risk free
Restricted Free Agency - Correct Answers -you can negotiate with a team you arent
playing for, but the current team can match the offer
Unrestricted Free Agency - Correct Answers -no restrictions and you can negotiate what
ever you want
NCAA purpose - Correct Answers -Maintain intercollegiate athletics as an integral part
of the educational program and the athlete as an integral part of student body and, by
doing so, retain a clear line of demarcation between intercollegiate athletics and pro
sports
Collective Bargaining Agreement (CBA) - Correct Answers -contract between
employees and management that lay out rules regarding how the two sides will conduct
business with each other during the contract and how they will resolve disputes
Labor Union - Correct Answers -organization of workers formed for purpose of
advancing its member' interest in respect to wages, benefits, and working conditions
,What were the terms of pro sport employment like before the players began to negotiate
collectively with owners - Correct Answers -freedom to move
growth in salaries
health benefits and pensions
no minimum salaries
What 3 reasons is a CBA is important to a pro sports leagues - Correct Answers -key
decisions about the division of league revenues between owners and players
majority of pro athletes having playing careers of 3-6 years, impacting max earnings
strike and lockouts lead to industry shutdown
what is the ncaa - Correct Answers -voluntary association of member institutions and
conferences
members are required to follow the rules
will serve specific needs
Who makes the rules in the NCAA manual - Correct Answers --member institutions
through voting and representative bodies
*Board of Directors and Executive Committee*
Division One NCAA Philosophy - Correct Answers -reference to entertainment value
and goal of competition on a regional and national scale
(athletic scholarships)
Division Two NCAA Philosophy - Correct Answers -provide high level regional athletics
competition but in an environment that is committed to a different educational
experience that D1 can typically offer
(smaller class, coaches as teachers, community service, athletic scholarships)
Divison Three NCAA Philosophy - Correct Answers -reference to participant's
experience more than spectator
no athletic based scholarships
NCAA functions - Correct Answers -enforce and interpret the rules the member ship
adopts
central operation
championships
formulate and publish rule
maintain records
encourage and support member schools and conferences in adoption of rules,
governing academics, sportsmanship and amateurism
, NCAA Academic Progess Rate - Correct Answers -Measurement of academic progress
by teams at each NCAA member school
Failure to comply with minimum APR levels can lead to significant penalties (loss of
scholarships, practice time, post season play)
900 cut off
How does the NCAA generate revenue - Correct Answers -mainly through broadcasting
rights
85-90% from March Madness
NCAA Media Deals - Correct Answers -March Madness
Womens Final 4
Mens CWS
Womens CWS
Wrestling chamionship
NCAA Revenue Spending - Correct Answers -distribution to schools and conferences
programs to benefit the student athletes
conduct Championships
Sport Sponsorship and Scholarship funds - Correct Answers -provides money to d1
members based on number of full scholarship equivalencies
provides money to D1 member for each sport sponsored starting with the 14th
Division One Basketball performance Fund - Correct Answers -Provides money to D1
conferences based on performance in march Madness
6 year rolling period- each game a team plays in earned its respective conference one
"unit
Conferences are encouraged but not required to distribute funds equally
Division One championships fund - Correct Answers -provides money to support the
opportunity to compete for a national championship
support for (travel,food,lodging)
Student Assistance Fund - Correct Answers -Distributed to d1 athletes for essential
needs that arise during their time in college
(educational, health and safety, personal expenses)
