Sports Revenue TEST 2

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What are the 3 media rights revenue generation models?

1- direct to consumer model 2- partner with broadcasting channel 3- "double set of partnerships"

different stages of sponsorship (Sponsor Map Model) - in the right order?

1. attention 2. understanding 3. engagement 4. appreciation 5. commitment

The first commercial radio broadcast was in the year ____ ?

1920

The first nationwide sport radio broadcast was in the year ____?

1926

what should be the sponsorship activation budget ratio?

1:5 / 1:10

In year 2017, North American sponsorship spending on average is estimated to be _____

23.1 billion

5. What is the standard for proving infringement on the use or sale of a licensed product? A. Likelihood of confusion B. unauthorized use of a similar likeness C. failure of user to pay royalties D. charging a premium well above the price charged by the licensed provider

A. Likelihood of confusion

2. Naming rights deals usually contain all of the following provisions except: A. a renewal clause that annually extends the terms of agreement B. details about the number, size and location of each component of signage C. a clause stating who pays for the costs of changing all branded signage if the sponsor changes names during the deal D. the inclusion of a luxury suite for the naming rights sponsor

A. a renewal clause that annually extends the terms of agreement

3. Major leagues commonly share or distribute revenues generated from the sale of licensed products by which of the following methods: A. equal shares to each team B. proportional to the sales attributable to individual teams C. fixed shares per team D. None of the above (league offices typically claim all licensing revenues)

A. equal shares to each team

7. When making a decision as to how many licenses to award, most major leagues have adopted a licensing philosophy that would best be described as: A. less-is-more B. selective distribution C. single licensee per product category D. one size fits all

A. less-is-more

4. The key revenue source for Regional Sports Networks is: A. monthly subscription fees charged to viewers B. rights agreement fees charged to major carriers (Comcast, Fox) to air RSN programming C. selling commercial advertising in the form of 30-second commercial units D. rights fees charged sports properties to televise their conference or individual school games

A. monthly subscription fees charged to viewers

2. ESPN has a huge advantage over traditional national television networks (e.g., CBS, NBC) in that it generates revenue from selling not only commercial time to advertisers but also by: A. requiring viewers to pay a subscription price to view their programming B. selling multiple services such as satellite radio and TV C. establishing the reputation in the consumers' mind as "the" network for watching sports D. winning the rights to the most popular sports programs (e.g., Monday Night Football)

A. requiring viewers to pay a subscription price to view their programming

3. Which of the following factors has had the most significant impact on the extraordinary increase in the cost of new sports facilities over the past two decades? A. the new luxury features demanded by team owners B. inflation which has meant higher prices for construction materials (steel, concrete) C. the willingness of teams and owners to pay their fair share of the construction costs D. the willingness of cities to provide ever-increasing public subsidies to attract (or keep) a team in their community.

A. the new luxury features demanded by team owners

trademark definition

Any word, name, symbol, device or combination thereof adopted and sued by a manufacturer or merchant to identify his product and distinguish them from those manufactured or sold by others.

What is considered the basic stage of sponsorship objective?

Attention

1. Which of the following factors most accounts for the significant growth of television rights fees for professional and collegiate sport? A. Competition between major networks B. Fans insatiable appetite for watching televised sport C. The proliferation of cable and regional sports networks D. Major sports leagues demanding ever-increasing rights fees

B. Fans insatiable appetite for watching televised sport

6. World Wrestling Entertainment (WWE) is a classic example of a niched sports property successfully using which of the following approaches to televising live shows: A. Pay-Per-View (PPV) B. In-house production C. Revenue-sharing with major network partner D. Barter agreement

B. In-house production

In recent years, a number of "billion-dollar" sports facilities have been built. To date, which of the following venues is the most expensive ever built? A. Wembley Stadium B. MetLife Stadium C. The Barclays Center D. Yankee Stadium

B. MetLife Stadium

4. Which of the following statements regarding the registration of trademarks is NOT true? A. Registrations can be bought, sold and bartered. B. Once a product is registered, the trademark protection extends for as long as the product is in use. C. Holding rights in one trademark classification category does not extend to other classification areas. D. The sound, color, even shape of a product can be registered.

B. Once a product is registered, the trademark protection extends for as long as the product is in use.

1. According to Chapter 4, often a huge gap exists between the initial estimate and actual cost of a new sports venue. In fact, the actual final "built out" costs commonly exceed initial pre-construction estimates by: A. close to 100% B. more than 30% C. almost 50% D. around 15%

B. more than 30%

6. The average royalty rate charged by major sports leagues generally fall into a range of _______% of the wholesale price of the goods sold. A. 6.5-8% B. 8-12% C. 11-14% D. 17-20%

C. 11-14%

2. Identify the only major league sports team in North America that maintains its own apparel licensing agreement. A. New York Yankees B. Brooklyn Nets C. Dallas Cowboys D. Oakland Raiders

C. Dallas Cowboys

3. Which of the following is an accurate description of television viewing?: A. Saturday evening remains the most-watched television viewing nights of the week B. In most households, men, particularly fathers, decide which programs will be watched during the evening hours C. Sports TV offers advertisers a predominately male audience D. TV ratings for sports programs are declining due to the proliferation of new sports channels (too much content)

C. Sports TV offers advertisers a predominately male audience

The two primary reasons for why major league sports teams continue to obtain substantial public subsidies for the construction of new sports venues are: A. Owners political support and influence over local media. B. Exemption from the constraints of the Sherman Antitrust Act and their ability to use selective taxes. C. The threat of team owners to relocate their teams and the support of the local community power structure. D. Overwhelming economic impact evidence and owners threat to relocate the team.

C. The threat of team owners to relocate their teams and the support of the local community power structure.

5. Several reasons were provided for why many professional sports teams are struggling to sell the naming rights to their venues. What is the central reason that teams like the Washington Nationals have not yet been able to find a naming rights partner? A. since the Great Depression the naming rights market has completely dried up B. teams are demanding unrealistically high rights fees C. many of the most prominent brands have already entered into naming rights deals and are no longer available as potential prospects D. Companies have discovered that they do not receive an adequate return on investment from naming rights deals

C. many of the most prominent brands have already entered into naming rights deals and are no longer available as potential prospects

5. The emerging truth regarding sports media in the digital era is "more is more," refers to the following trend in consumer behavior: A. more and more content will migrate from television to social networks B. digital platforms will soon overwhelm traditional forms of media C. more and more fans will view games simultaneously across multiple screens D. All of the above

C. more and more fans will view games simultaneously across multiple screens

Since the mid-'90s, the primary public source used to finance new stadiums has been: A. general sales or excise taxes B. property taxes C. selective taxes such in the form of hotel or car rental taxes D. ticket surcharges

C. selective taxes such in the form of hotel or car rental taxes

The reason that the publicly-reported cost for building a new sports arena or stadium often underestimates the true or actual cost is due to: A. the failure to include the cost of the land upon which the facility is built. B. an omission of infrastructure costs such as enhanced road and utilities C. the failure to include ongoing public subsidies such as abated property taxes, free utilities, and "sweet heart" lease agreements. D. All of the above

D. All of the above

1. In 2012, according to industry data, consumers spent more on licensed good and products for which of the following major sports properties? A. NASCAR B. Major League Baseball C. National Football League D. Collegiate Sports E. Ultimate Fighting Championship

D. Collegiate Sports

The primary model of sports facility development continues to be the: A. Public Subsidy Era B. Civic Development Era C. Corporate Welfare Era D. Fully Loaded Era

D. Fully Loaded Era

Of the "Big 3" revenue sources, which of the following generally produces the greatest amount of annual income? A. sponsorship sales B. naming rights C. concessions D. premium seating (suites/clubs) E. parking

D. premium seating (suites/clubs)

4. Which of the following is NOT typically a benefit feature of a seat license program: A. a "lifetime" guarantee to the best seats in the house B. the right to transfer /sell the PSL to another party C. the chance to invest in the team's future D. the typically deeply discounted price associated with PSL purchase

D. the typically deeply discounted price associated with PSL purchase

main differences between advertising + sponsorship?

Sponsorship wants to create an emotional tie with team/athlete and consumer

Which of the following is sold by either a government agency or a non-profit corporation set up to build a facility? a. Certificate of participation b. Tax increment financing c. Contractually obligated income d. Asset backed securities e. None of the above

a. Certificate of participation

Historically, which bond was the most common method used for facility financing? a. General obligation bonds b. Auction-rate bonds c. Lease revenue bonds d. Revenue bonds e. All of the above

a. General obligation bonds

During which phase of facility construction were most sport facilities built with private dollars? a. Phase 1 b. Phase 2 c. Phase 3 d. Phase 4 e. None of the above

a. Phase 1

During which phase of facility construction were sport facilities primarily financed using general obligation bonds? a. Phase 1 b. Phase 2 c. Phase 3 d. Phase 4 e. None of the above

b. Phase 2

4 sales strategies?

benefit selling after marketing Up-selling Eduselling

When a team has signed multiyear contracts to receive money, these revenue sources can be used as collateral to get loans. This is referred to as __________. a. Certificate of participation b. Tax increment financing c. Contractually obligated income d. Asset backed securities e. None of the above

c. Contractually obligated income

Which of the following is a bond issued by a municipality in which the revenue stream backing the payment of the bond is an actual lease, not just revenues from a source? a. General obligation bonds b. Auction-rate bonds c. Lease revenue bonds d. Revenue bonds e. All of the above

c. Lease revenue bonds

During which phase of construction were stadiums built with a mix of public and private dollars? The stadiums usually only housed one major tenant, not two. a. Phase 1 b. Phase 2 c. Phase 3 d. Phase 4 e. None of the above

c. Phase 3

Here, a sport team may package together guaranteed or expected revenue streams and sell bonds based on the assets. a. Certificate of participation b. Tax increment financing c. Contractually obligated income d. Asset backed securities e. None of the above

d. Asset backed securities

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? a. General obligation bonds b. Auction-rate bonds c. Lease revenue bonds d. Revenue bonds e. All of the above

d. Revenue bonds

Of the following bond types, which is issued by a public entity? a. General obligation bonds b. Auction-rate bonds c. Lease revenue bonds d. Revenue bonds e. All of the above

e. All of the above

activation definition

efforts to support one's sponsorship with additional strategic initiatives

T or F = During Phase 2 of the construction of sport facilities, there was a significant decrease in the amount the public was willing to pay for construction costs.

false

The proportional share of public support for the cost of developing new stadiums has increased dramatically over the past decades (T/F)

false

sponsorship definition

investment, in cash or in kind, in an activity, in return for acmes to the exploitable commercial potential associated with that activity

Athlete sponsorship ?

involves some type of endorsement of the sponsor's product/service (ex = Usain Bolt w/ Puma)

difference between: - licensing - licensee - licensor

licensing: contractual agreement whereby a company may use another company's trademark in exchange for a royalty or fee Licensee: PRODUCER/MANUFACTURER OF of licensed products Licensor: OWNER OF THE TRADEMARK -- teams/leagues paid by licensees for the right to manufacture products bearing team names, nicknames, colors, logos

In early days (pre-1980s), sponsorship was viewed as _____?

philanthropy

What sponsorship category takes 70% share of the global sponsorship spending?

sports takes 70% of global sponsorship spending

sponsorship triangle?

sports, media, and corporations or (sponsor, sponsee,media) or sponsor, property, consumer

3. Regardless of whether the "P" in PSL stands for permanent or personal, these seating programs are generally alike in that they are used to collect money upfront from their fans, often to help underwrite the construction costs for a new venue (True or False)

true

Both the proportional and actual amount of public sector subsidies for the construction of new arenas have increased substantially over the last decade (T/F)

true

T or F = Psychic impact is the emotional impact of having a local sports team.

true

T or F = Sin taxes are taxes on alcohol and cigarettes.

true


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