SPMA 2P27 MIDTERM #2 QUESTIONS & ANSWERS
What are the three forms of broadcast - Answer -Direct Sales Right, In-House
Production, and Revenue Sharing
What is Direct Sales - Answer -ensures a guaranteed rights fee for sports property.
National broadcast Contracts take over reginal contacts
What is most common fan behavior while watching sports - Answer -Using social media
platforms 43% of people who are are Gen z and 32% is the regular population
What is the best way to attract fans within media - Answer -Short videos like Tiktok gain
attention of 66% of viewers short video 2.5 more engaging than long videos
Financial impacts within concessions sales (what is considered concession products) -
Answer -sales often include "ALL" food, beverage, and merchandise
Can concessions motivate fan attendance? - Answer -No. Regardless of age Gender
and level of fandom
What are the drives of concessions - Answer -Impulsiveness - making quick decisions
Connotations that its a part of the experience
What Is In-House Production - Answer -Sports Organizations create there own Media
stream sites like MLB tv and NHL Game-Center and make a monthly or yearly
subscription
What is Revenue Sharing - Answer -Sports properties collect half the revenue
generated from broadcast and this is most common with niche leagues and also radio
broadcast
What is the % of Canadians who are sports fans - Answer -7 in 10 Canadians follow at
least 1 sports league 50% follow multiple
How many people can you afford (HABPP) - Answer -(H)ourly Wage
(A)vrage shift Length
(B)udget payroll %
(P)roject per cap
(P)rojected attendance
What is Margin - Answer -The difference between a product or service's selling price
and its cost of production
How do you calculate Margin - Answer -Margin = selling price - purchase price
, Example: A sports Organization is selling beers at a game for $18 and they purchase
the beers for $3 each calculate the margin
Margin = 18-3
Margin = $15
How do you calculate Margin Ratio - Answer -Margin Ratio = Margin / selling price
= $15/18
Margin Ratio = 83%
How do you calculate Desired Margin
Example: It costs a concession stand $3 to produce a a beer. The concession manager
needs all beers to have a margin of over 90%. their for what must the price of the beer
be? - Answer -Price = Cost of item / (1-targeted margin ratio)
Example: It costs
Price = 3/(1-0.9)
Price = $30
The Exchange feedback loop - Answer -Team/League
Sells rights Media Companies Money
Advertisers
Advantages of In-house Management - Answer -* Control all points of contacts
* Decide pricing level
* No negotiations
Disadvantage of In-house management - Answer -* Lack of experience
* More managerial requirements
* Taking on more financial risk
Fluid fan - Answer -They change alliances follow players over teams extremely active
on social media
Total Return - Answer -Looking beyond the bottom line intangible more important than
profits
What is financial considerations - Answer -Royalties vs minimum guaranties
Specific conditions which need to be meet
What are the 2 types of contracts - Answer -1. Commission agreement
2. Management fee
What is Per capita sales - Answer -measures sales from person to person
How do you measure Per Caps DALLTTT - Answer -(D)isposable income
(A)llowed Alcohol sales
(L)ength of event
What are the three forms of broadcast - Answer -Direct Sales Right, In-House
Production, and Revenue Sharing
What is Direct Sales - Answer -ensures a guaranteed rights fee for sports property.
National broadcast Contracts take over reginal contacts
What is most common fan behavior while watching sports - Answer -Using social media
platforms 43% of people who are are Gen z and 32% is the regular population
What is the best way to attract fans within media - Answer -Short videos like Tiktok gain
attention of 66% of viewers short video 2.5 more engaging than long videos
Financial impacts within concessions sales (what is considered concession products) -
Answer -sales often include "ALL" food, beverage, and merchandise
Can concessions motivate fan attendance? - Answer -No. Regardless of age Gender
and level of fandom
What are the drives of concessions - Answer -Impulsiveness - making quick decisions
Connotations that its a part of the experience
What Is In-House Production - Answer -Sports Organizations create there own Media
stream sites like MLB tv and NHL Game-Center and make a monthly or yearly
subscription
What is Revenue Sharing - Answer -Sports properties collect half the revenue
generated from broadcast and this is most common with niche leagues and also radio
broadcast
What is the % of Canadians who are sports fans - Answer -7 in 10 Canadians follow at
least 1 sports league 50% follow multiple
How many people can you afford (HABPP) - Answer -(H)ourly Wage
(A)vrage shift Length
(B)udget payroll %
(P)roject per cap
(P)rojected attendance
What is Margin - Answer -The difference between a product or service's selling price
and its cost of production
How do you calculate Margin - Answer -Margin = selling price - purchase price
, Example: A sports Organization is selling beers at a game for $18 and they purchase
the beers for $3 each calculate the margin
Margin = 18-3
Margin = $15
How do you calculate Margin Ratio - Answer -Margin Ratio = Margin / selling price
= $15/18
Margin Ratio = 83%
How do you calculate Desired Margin
Example: It costs a concession stand $3 to produce a a beer. The concession manager
needs all beers to have a margin of over 90%. their for what must the price of the beer
be? - Answer -Price = Cost of item / (1-targeted margin ratio)
Example: It costs
Price = 3/(1-0.9)
Price = $30
The Exchange feedback loop - Answer -Team/League
Sells rights Media Companies Money
Advertisers
Advantages of In-house Management - Answer -* Control all points of contacts
* Decide pricing level
* No negotiations
Disadvantage of In-house management - Answer -* Lack of experience
* More managerial requirements
* Taking on more financial risk
Fluid fan - Answer -They change alliances follow players over teams extremely active
on social media
Total Return - Answer -Looking beyond the bottom line intangible more important than
profits
What is financial considerations - Answer -Royalties vs minimum guaranties
Specific conditions which need to be meet
What are the 2 types of contracts - Answer -1. Commission agreement
2. Management fee
What is Per capita sales - Answer -measures sales from person to person
How do you measure Per Caps DALLTTT - Answer -(D)isposable income
(A)llowed Alcohol sales
(L)ength of event
