SPORT BUSINESS FINAL QUESTIONS
AND ANSWERS (GRADED A+)
harness racing - ANSWER-1820s, horse and buggy preferred mode of transportation
Anyone could participate
Track owners rented out tracks to racers
Purse money
"The common person" sport
Trying to attract top competitors through gate profit
Fixed races...important lesson!!!
William Hulbert - ANSWER-He developed the National League of Professional Baseball
Players, believed sport organiztions should be ran like a business, prohibited betting,
playing games on Sundays, and selling beer, raised ticket prices to appeal to higher
classes
National League - ANSWER-The first professional baseball league, begun in 1876 with
eight teams, introduced the "pennant race" (big for sport marketing growth)
Fred Corcoran - ANSWER-The architect of the professional golf tournament.
Players have to pay to tee off.
Celebrities, politicians, manufacturers, charities, towns, or products gain exposure.
1937, consortium of golf manufacturers hired Corcoran as the tournament director of the
PGA.
Lamar Hunt - ANSWER-A Texas entrepreneur who was considered to be one of the
founders of the American Football League.
"Call the Wolfners" - NFL to Orange County, Houston, Atlanta, New Orleans, and
Minneapolis.
The "napkin plan" on the AA flight from Miami to Dallas.
Bert Bell - ANSWER-Summer of 1959; Bert Bell testifies before Congress seeking
similar antitrust exemptions of baseball.
Bell in the Coburn Senate Building (318 to be exact): "the more football there is, and the
more advertisement of pro football, the better off we are."
This quote doomed Bell's defense against expansion and the AFL/NFL merger (he was
trying to have it both ways...).
August 1959; Dallas & Clint Murchison awarded a franchise (this was Lamar Hunt's
territory; Hunt recognized what the NFL was doing...).
Tragic passing of Bert Bell (October 11, 1959).
Bill Veeck - ANSWER-Sport marketing pioneer in professional baseball.
, "It is my contention that the Browns provide half of the cast in every game they play.
Therefore, we are entitled to our cut of the TV fees the home club receives for televising
our games. Morally, I know I am right, and I plan to fight this to the end." -St. Louis
Browns owner Bill Veeck.
Teams negotiated their TV rights at the time (Veeck proposed 50/50 split).
ABC - ANSWER-"Almost broadcasting company".
First started broadcasting the AFL.
Profits were divided equally.
Created TV revenue.
Roon Arledge - ANSWER-Roone Arledge, had a vision that would "take the viewer to
the game".
Arledge was a TV prodigy; at age 29, produced first college football broadcast for ABC
(1960 - Alabama beat Georgia in Birmingham).
Produced/created Monday Night Football, ABC World News Tonight, Nightline, and
20/20.
MNF was a dynamic change in sports marketing
Evolved the game into sport entertainment.
Arledge refused to let team owners have a say in announcers (a first for the industry).
Closed League - ANSWER-Teams comprising the league do not change from season to
season.
Changes to league structure must be approved by league owners.
May have affiliated minor league: i.e. AAA to A; AHL; G-League.
Contractually, rights of minor league players are owned by a major league team.
Open League - ANSWER-League with oscillating membership.
English Football League system, or the football pyramid.
Features multiple leagues from the English Premier League (EPL) at the top to semi-pro
leagues at the bottom.
Lower-division teams are potential competitors of teams in higher divisions because
they regularly switch leagues through promotion and relegation.
Promotion and Relegation - ANSWER-At conclusion of every season, worst teams in
each league change places with best teams in the league below
League Think - ANSWER-"Sports leagues want their competitors to do well financially
off the field, as this is beneficial for the league and the individual teams."
Win maximization versus profit maximization - ANSWER-Win maximization- prioritizing
wins over profit (seen in open leagues)
Profit maximization- prioritizing profits over wins (seen in closed leagues)
Demand for Sport- Price - ANSWER-demand drives up price
AND ANSWERS (GRADED A+)
harness racing - ANSWER-1820s, horse and buggy preferred mode of transportation
Anyone could participate
Track owners rented out tracks to racers
Purse money
"The common person" sport
Trying to attract top competitors through gate profit
Fixed races...important lesson!!!
William Hulbert - ANSWER-He developed the National League of Professional Baseball
Players, believed sport organiztions should be ran like a business, prohibited betting,
playing games on Sundays, and selling beer, raised ticket prices to appeal to higher
classes
National League - ANSWER-The first professional baseball league, begun in 1876 with
eight teams, introduced the "pennant race" (big for sport marketing growth)
Fred Corcoran - ANSWER-The architect of the professional golf tournament.
Players have to pay to tee off.
Celebrities, politicians, manufacturers, charities, towns, or products gain exposure.
1937, consortium of golf manufacturers hired Corcoran as the tournament director of the
PGA.
Lamar Hunt - ANSWER-A Texas entrepreneur who was considered to be one of the
founders of the American Football League.
"Call the Wolfners" - NFL to Orange County, Houston, Atlanta, New Orleans, and
Minneapolis.
The "napkin plan" on the AA flight from Miami to Dallas.
Bert Bell - ANSWER-Summer of 1959; Bert Bell testifies before Congress seeking
similar antitrust exemptions of baseball.
Bell in the Coburn Senate Building (318 to be exact): "the more football there is, and the
more advertisement of pro football, the better off we are."
This quote doomed Bell's defense against expansion and the AFL/NFL merger (he was
trying to have it both ways...).
August 1959; Dallas & Clint Murchison awarded a franchise (this was Lamar Hunt's
territory; Hunt recognized what the NFL was doing...).
Tragic passing of Bert Bell (October 11, 1959).
Bill Veeck - ANSWER-Sport marketing pioneer in professional baseball.
, "It is my contention that the Browns provide half of the cast in every game they play.
Therefore, we are entitled to our cut of the TV fees the home club receives for televising
our games. Morally, I know I am right, and I plan to fight this to the end." -St. Louis
Browns owner Bill Veeck.
Teams negotiated their TV rights at the time (Veeck proposed 50/50 split).
ABC - ANSWER-"Almost broadcasting company".
First started broadcasting the AFL.
Profits were divided equally.
Created TV revenue.
Roon Arledge - ANSWER-Roone Arledge, had a vision that would "take the viewer to
the game".
Arledge was a TV prodigy; at age 29, produced first college football broadcast for ABC
(1960 - Alabama beat Georgia in Birmingham).
Produced/created Monday Night Football, ABC World News Tonight, Nightline, and
20/20.
MNF was a dynamic change in sports marketing
Evolved the game into sport entertainment.
Arledge refused to let team owners have a say in announcers (a first for the industry).
Closed League - ANSWER-Teams comprising the league do not change from season to
season.
Changes to league structure must be approved by league owners.
May have affiliated minor league: i.e. AAA to A; AHL; G-League.
Contractually, rights of minor league players are owned by a major league team.
Open League - ANSWER-League with oscillating membership.
English Football League system, or the football pyramid.
Features multiple leagues from the English Premier League (EPL) at the top to semi-pro
leagues at the bottom.
Lower-division teams are potential competitors of teams in higher divisions because
they regularly switch leagues through promotion and relegation.
Promotion and Relegation - ANSWER-At conclusion of every season, worst teams in
each league change places with best teams in the league below
League Think - ANSWER-"Sports leagues want their competitors to do well financially
off the field, as this is beneficial for the league and the individual teams."
Win maximization versus profit maximization - ANSWER-Win maximization- prioritizing
wins over profit (seen in open leagues)
Profit maximization- prioritizing profits over wins (seen in closed leagues)
Demand for Sport- Price - ANSWER-demand drives up price
