Intro to Fitness Management Ch 4

The NFL's current TV contract calls for the league to be paid more than ______ per year. A. $4.95 billion B. $3 million C. $100 million D. $100 billion

A. $4.95 billion

Plunkett Research estimates that total spending across the entire sports industry amounted to approximately ______ in 2012. A. $435 billion B. $214 billion C. $1 billion D. $1 trillion

A. $435 billion

Which statement concerning the tradeoff between financing through debt or equity is true? A. Generally, financing with debt is more expensive than equity. B. Generally, financing with debt carries more risk than equity. C. A and B are correct. D. Neither A nor B are correct.

B. Generally, financing with debt carries more risk than equity

Which financial statement measures the financial performance of an organization over a specified time period, usually a year? A. Statement of cash flows B. Income statement C. Balance sheet D. Financial ledger

B. Income statement

Why do economists suggest that revenue sharing, in and of itself, will do little to improve competitive balance? A. Teams receiving revenue-sharing transfers do not receive enough money for it to make a difference. B. Teams receiving revenue-sharing transfers may have little incentive to use the money to increase payroll, simply choosing to retain the transfer as added profit. C. Teams receiving revenue-sharing transfers are already the highest payroll teams. D. Both B and C are correct.

B. Teams receiving revenue-sharing transfers may have little incentive to use the money to increase payroll, simply choosing to retain the transfer as added profit.

The average player salary in the NBA is now approximately ______. A. $800 thousand B. $1.4 million C. $5.15 million D. $10.3 million

C. $5.15 million

Why have no rival leagues to the major American sport leagues emerged in more than 20 years? A. Players today have much less incentive to jump to a rival league, as the emergence of stronger players associations and free agency means that players are much less often "underpaid." B. There is a lack of viable cities and markets in which to play as the major professional leagues have gone through successive rounds of expansion to the point where all four currently have 30 or more franchises. C. A and B are correct. D. Neither A nor B are correct.

C. A and B are correct

Which of the following most accurately defines the managerial discipline of finance? A. How an organization generates the funds that flow into the organization B. How an organization allocates its funds once they are in the organization C. Any decision relating to money D. A and B are correct.

D. A and B are correct

The increase in ticket prices in all leagues in recent years reflects A. consumers' increased affluence. B. decreased regulation on ticket scalping. C. the growing popularity of sport. D. A and C are correct. E. All of these are correct.

D. A and C are correct

All of the following are examples of "financial" mechanisms for altering competitive balance except A. luxury tax. B. salary cap. C. revenue sharing. D. "reverse-order" draft. E. All of these are financial mechanisms.

D. All of these are financial mechanisms

Where revenue sharing may be effective as a tool to improve competitive balance is when it is used in conjunction with a ______. A. luxury tax B. soft salary cap C. "reverse-order" draft D. hard salary cap

D. Hard salary cap

The concept of ______ is probably the best single measure of an industry's impact. A. total output B. total spending C. aggregate market value of firms in industry D. value added

D. value added

If a borrower is unable to repay the borrowed money, with interest, at a prespecified date—perhaps because revenues are lower than expected—then the borrower is said to be in _______ on the debt.

Default

Increased revenue in spectator sports has come from A. gate receipts. B. broadcast contracts. C. stadium naming rights. D. B and C are correct. E. All of these are correct.

E. All of these are correct

Increased revenue in spectator sports has come from A. gate receipts. B. broadcast contracts. C. sponsorship sales. D. stadium naming rights. E. All of these are correct.

E. All of these are correct

If a golf club manufacturer sells a set of golf clubs to a retailer for $1,000, who in turn sells the clubs to a customer for $1,500, then the total output of the industry is $2,500. True/False

False

Common in the Southeastern Conference and a growing model in collegiate athletics is a structure in which the program is run through an outside entity that is incorporated by the state. True/False

True

The _______ issue is rooted in the notion that consumers of a spectator sport seek to be entertained by the game itself and that this entertainment value is connected to a concept of "uncertainty of outcome"—the greater the uncertainty of outcome, the greater the entertainment value for fans.

competitive balance

A _______ has been used as a mechanism to influence competitive balance. With this, a payroll threshold is set prior to a season and teams that exceed this threshold pay based on the excess amount.

luxury tax