Sport Finance Fina;
vertical equity
Concerned with the taxpayer's ability to pay, typically calling for a tax that does not cause poorer persons to bear a disproportionate share.
T or False: Compound interest is calculates only on principal
False
T or F Forecasting is the process of defining a vision for your organization and creating goals and objectives to help achieve this vision.
False, it is predicting what is going to happen
Historically, which bond was the most common method used for facility financing?
General obligation bonds, these are backed by the government
For all sport and entertainment organizations, __________ financing may include land use, tax abatements (you don't have to pay taxes, or a reduction), direct facility financing, and infrastructure improvements (building roads).
Government
Explain the difference between nominal value and real value
Nominal is the face value of money. Real is the purchase power of the dollar, changes due to inflation
Which of the following is a single cash flow per year forever into the future?
Perpetuity
Explain the difference between each of the following wealth maximization/profit principles.
•Accounting profit: revenue exceeds the cost •Economic profit: profit remaining after opportunity costs (best measure of economic balance) Opportunitycosts: Cost of what you didn't choose
This type of financing includes charitable donations, either cash or in-kind, made to an organization and is the primary source or operating and investing income for major collegiate sports programs.
A gift
For Division I-FBS Group of 5 conferences, increased revenue depends on what?
Preforming in the NCAA mens basketball tourney, conference football championship, 12 football teams playing in the conference
Which of the following is today's value of a future cash flow?
Present Value
Which type of bond is a form of public finance paid off solely from specific, well-defined sources such as hotel taxes, ticket taxes, or other sources of public funding?
Revenue Bonds
Benefit principle
User pays principle, states that those who benefit from a particular project ought to be the ones taxed. For funding a stadium, a ticket tax on sporting events would satisfy the benefit principle much more than a cigarette tax.
Which of the following is a picture or snapshot of the financial condition of an organization at a specific point in time? a.Balance sheet
A balance sheet
As a part of a feasibility study, ____________ directly investigates actual facilities that might compete with a subject facility in order to host events
A competitive analysis
What factors are driving up the operating costs of an university athletic department
Arms race, moving up a division, free market for college coaches, increasing tuition on college campuses
Which of the following budgets allows the management to forecast future requirements related to property, facilities and major equipment?
Capital expenditure budget
When an organization borrows money that must be paid back over time, usually with interest, what kind of financing is being used?
Debt
The choices that individuals and organizations make regarding financial management are influenced by what?
Demand, scarcity and price
Which is a measure of risk or uncertainty of time?
Discount Rate
T or F The revenues that member schools receive from conference distributions are the largest percentage of overall departmental revenues
False
T or F The sale of naming rights has little to do with getting a new stadium financed and completed
False
The __________ shows the organization's income over a specified period of time.
Income Statement
Last year's budget is increased or decreased by a percentage using this method of budgeting
Incremental bugeting
What are the main parts of a feasibility study?
Market demand, economic and fiscal impact, financing, location, construction costs and engineering
Which section of the feasibility study drives much of the rest of the study
Market demand, if there is no demand, there is nothing else
When sport leagues do not expand into a market that can support a franchise, or when they create rules to limit the movement of existing franchises, which of the following economic concepts is being applied?
Scarcity
Which financial statement tracks cash in and cash out of an organization over a specified period of time?
Statement of cash flows
Horizontal equity
Suggests that individuals with similar incomes should pay similar amounts of a tax.
T or F Each of the professional sport leagues has established rules regarding who may become an owner and join their "club."
T
What are the primary sources of NCAA revenues
Television and marketing rights fees
T or F Psychic impact is the emotional impact of having a local sports team
True
T or F Sports facilities compete against one another for corporate dollars
True
T or F The NBA and NHL do not share revenues generated from gate receipts
True
T or F The age of the population is another factor when analyzing ticket demand in comparable
True
T or F When using the ledger of T-accounts, credits are entered on the right-hand side and debits are entered on the left-hand side.
True
T or F revenues from league sponsorship deals are shared equally
True
T or F: The sports industry relies on the discretionary income of spectators and participants
True
When a team has signed multiyear contracts to receive money, these revenue sources can be used as a collateral to get loans. This is referred to as ________________.
contractually obligated income