SPMA 2P27 FINAL EXAM QUIZ QUESTIONS &
ANSWERS
- low interest bonds
- lease for facility below going value
- foregoing property tax
- Invest in infrastructure around facility
- In kind public services - Answer -What are Common Forms of Public Subsidy
- image ideals
- role in life
- importance to media
- political symbolism
- imagery for economic development - Answer -how do sports affect "Psyche" of
citizens
1. Legal Status of pro sports teams
a. restrict competition for players
- drafts
- tampering restrictions
b. "Control" franchise locations
i. Other owners get an opinion on what happens
ii. League promotes city relocations that result in higher revenues
c. Control broadcast rights
o This allows "cartels" to:
Create an artificial scarcity of teams
Eliminate competitive threat in large markets
Hinder development of competing leagues
o Leverage for teams
Interest from external cities
Sunk-Costs (if money is spent continually on something that keeps breaking
down/needs updates)
Fan identity
2. Power Structure of cities
- franchises are often entusiastically recruited by a city's "Power Brokers" like banks and
real estate - Answer -what are sources of momentum for subsidization?
economic impact is defined as the net economic change in a host economy that results
from spending attributed to a sports event or facility - Answer -What is Economic
Impact?
- pay tax
- to council
ANSWERS
- low interest bonds
- lease for facility below going value
- foregoing property tax
- Invest in infrastructure around facility
- In kind public services - Answer -What are Common Forms of Public Subsidy
- image ideals
- role in life
- importance to media
- political symbolism
- imagery for economic development - Answer -how do sports affect "Psyche" of
citizens
1. Legal Status of pro sports teams
a. restrict competition for players
- drafts
- tampering restrictions
b. "Control" franchise locations
i. Other owners get an opinion on what happens
ii. League promotes city relocations that result in higher revenues
c. Control broadcast rights
o This allows "cartels" to:
Create an artificial scarcity of teams
Eliminate competitive threat in large markets
Hinder development of competing leagues
o Leverage for teams
Interest from external cities
Sunk-Costs (if money is spent continually on something that keeps breaking
down/needs updates)
Fan identity
2. Power Structure of cities
- franchises are often entusiastically recruited by a city's "Power Brokers" like banks and
real estate - Answer -what are sources of momentum for subsidization?
economic impact is defined as the net economic change in a host economy that results
from spending attributed to a sports event or facility - Answer -What is Economic
Impact?
- pay tax
- to council
