Revenue Cumulative Final

4. 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. Debt b. Equity c. Retained earnings d. Government e. Gift

E

8. According to which gift table rule does the top 10 gifts to a capital campaign account for 33% of the campaign's total goal and the next 100 gifts account for an additional 33%? a. Rule of thirds b. 80/20 rule c. 90/10 rule d. Traditional rule e. None of the above

A

9. Which iconic franchise nearly experienced financial disaster in 2011? a. Los Angeles Dodgers b. Chicago Cubs c. Dallas Cowboys d. Washington Redskins e. None of the above

A

According to Chapter 5 and our class discussion, which of the following "multipliers" provides the most accurate measurement of indirect economic impact and, therefore, should be used by consultants conducting economic impact studies? A. personal income B. employment or jobs C. ratio D. sales multiplier

A

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

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

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

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

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

What was the first sport to introduce Premium Seating? a. Hockey b. Horse Racing c. Baseball d. Soccer

C

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

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

1. Of the following statements regarding economic impact, which is true? a. All spending of casual visitors and time-switchers should be counted in an economic impact analysis. b. All spending of casual visitors and the incremental spending of time-switchers should be counted in an economic impact analysis. c. Incremental spending of casual visitors and all spending of time-switchers should be counted in an economic impact analysis. d. Incremental spending of casual visitors and time-switchers should be counted in an economic impact analysis. e. None of the above

D

1. Overestimations of economic impact occur because most analyses do not account for __________, those local residents who leave town during the event period because of the event. a. Incremental visitors b. Casual visitors c. Time-switchers d. Reverse time-switchers e. Relevant visitors

D

1. Which of the following occur in the area of impact representing the circulation of initial visitor expenditures? a. Direct economic impacts b. Direct input c. Direct output d. Indirect economic impacts e. Induced economic impacts

D

4. Leagues have created rules and policies to improve competitive balance. What do these rules and policies typically relate to? a. Player drafts b. Free agency c. Player salary d. All of the above e. None of the above

D

6. Typically, owners in a specific industry compete for wealth maximization. Owners in sport might not be interested in this goal. Rather, they may be interested in __________. a. Winning championships b. Seeking celebrity status c. Protecting a community asset d. All of the above e. None of the above

D

7. For all sport and entertainment organizations, __________ financing may include land use, tax abatements, direct facility financing, and infrastructure improvements. a. Debt b. Equity c. Retained earnings d. Government e. Gift

D

How much of Tiger Woods' total earnings in 2019 were from endorsements? A. 45% B. 60% C. 70% D. 85%

D

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

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

Which of these brands does NOT have an endorsement deal with Lebron James? A. Beats by Dre B. Domino's Pizza C. Coca-Cola D. KIA Motors E. All have an endorsement deal with James

B

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

A person already visiting the Phoenix area during the winter and early spring who decides to attend a Chicago Cubs spring training game should be classified as a____________________. A. casual visitor B. time-switcher C. snow bird D. disgruntled Giant's fan

B***

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

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 "sweetheart" lease agreements. D. All of the above

D

What NFL team recently added a swimming pool to their stadium? a. New York Giants b. New England Patriots c. Dallas Cowboys d. Jacksonville Jaguars

D

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

Which of these brands stayed with Tiger Woods during his scandal in 2009? A. Nike B. EA Sports C. Golf Digest D. Both A and B E. Both A and C

D

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

Why is stadium attendance decreasing? a. Poor Internet Connection b. Easier to stream games from home. c. Expensive tickets and concessions d. All the above

D

**7. This league began in a single-entity structure and switched to a franchisee/franchisor model? a. WNBA b. MLS c. MLB d. NFL e. Both a and b

E

1. Financial returns measured by an economic impact study include which of the following? a. New jobs b. New earnings or income c. New tax revenues d. Positive externalities e. All of the above

E

1. Impacts on earnings and employment are which of the following? a. Direct economic impacts b. Direct input c. Direct output d. Indirect economic impacts e. Induced economic impacts

E

1. In which league was Pete Rozelle commissioner and developer of the idea of "league think"? a. MLB b. NBA c. MLS d. NHL e. NFL

E

1. What does the multiplier effect measure? a. Direct economic impacts b. Indirect economic impacts c. Induced economic impacts d. Both A and B e. Both B and C

E

1. Which of the following major sports leagues is most dependent on ticket sales? A. NBA B. NFL C. MLB D. NASCAR E. NHL

E

10. Which factor is driving up the operating costs of a college or university athletic department? a. Arms race b. Moving up a division c. Free market for college coaches d. Increasing tuition on college campuses e. All of the above

E

3. In the late 1950s, which league failed to recognize that it should expand to emerging markets, which allowed an upstart league to establish a presence in those markets? a. NFL b. NBA c. MLB d. NHL e. WHA

E

3. The NCAA distributes revenue to member institutions based on a specific formula. Of the following, which is a criteria for establishing the amount of revenue a member receives? a. Historical performance in NCAA Division I Men's Basketball Championship b. The number of sports sponsored c. The number of scholarships offered d. All of the above e. None of the above

E

What was the inspiration behind the Premium Seating in Dodgers Stadium in the 1960s? a. California Culture b. Japanese Baseball c. Giving Fans the Best View d. Providing a Similar Experience to a Basketball Game

B

(T/F) 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

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

True

T or F The output multiplier measures the indirect and induced effects of an extra unit of direct impact spending on economic activity within the local economy.

True

What college football team had the highest attendance in 2018? a. Michigan b. Penn State c. Alabama d. Georgia

A

*5. Selling FSE ticket packages are considered to be the most challenging of all the ticket options offered sports fans. Which of the following factors is often the most difficult to overcome in selling FSEs? A. FSEs are the most expensive tickets offered B. The considerable non-monetary "costs" (time and travel obligations) C. They offer fewer preferred seating locations. D. If the team performs poorly, FSE purchasers are stuck

A

. Which of the following values would come closest to representing the percentage of a Division I-A level athletic department's total annual revenues generated from ticket sales? A. 22% B. 15% C. 42% D. 5%

A

1. This type of individual comes to a community for one event while also attending a basketball game. If a university is performing an economic impact study of its basketball team, this individual would be classified as what kind of visitor? a. Casual visitor b. Time-switcher c. Reverse time-switcher d. Incremental visitor e. None of the above

A

1. What are the primary sources of NCAA revenues? a. Television and marketing rights fees b. Championship tournaments c. Investment income d. Sales and services e. Contributions

A

1. When selecting the geographic area of impact for a concert at the Colonial Life Arena in Columbia, South Carolina, which area should the researcher choose to get the largest economic impact? a. The City of Columbia only b. Richland County, which contains the City of Columbia c. Richland and neighboring Lexington County d. The Columbia, South Carolina, metropolitan statistical area e. The State of South Carolina

A

2. When an organization borrows money that must be paid back over time, usually with interest, what kind of financing is being used? a. Debt b. Equity c. Retained earnings d. Government e. Gift

A

4. According the Team Marketing Report, the complete cost for a family of four to attend a single major league game on average was around: A. $200 B. $500 C. $300 D. $400

A

5. Three interrelated sectors exist within finance. Which of the following includes securities markets, investment banking, insurance, and mutual fund management? a. Money and capital markets b. Investments c. Financial management d. Derivative trading e. None of the above

A

6. One of the most serious concerns about the use of dynamic pricing is: A. Season-ticket holders might revolt if they find they are paying much more for their tickets than those purchasing similar tickets on game day. B. Fans simply won't understand the complexities of this new approach to pricing C. It will drive more fans to buy tickets in the secondary market D. Team revenues will drop.

A

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

What is SMU Footballs' community relations initiative called? a. Born and Raised b. Heading Home c. Going Home d. Born to Play

A

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

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

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

Which of the following is NOT a common pitfall associated with premium seating? a. Worse Food b. Lack of Atmosphere c. Far From the Action d. Poor View

A

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

Who was the first athlete to receive payment for a brand endorsement? A. Honus Wagner B. Michael Jordan C. Nolan Ryan D. Wayne Gretzky

A

. The key to any possible economic benefit resulting from building a new sports venue is: A. achieving an economic multiplier of at least 2. B. its ability to simulate new, "export" dollars. C. a successful tenant—team which wins on regular basis. D. All of the above.

B

1. This type of individual changes the time he or she is coming to a community to coincide with an event being held in that community (i.e., University of South Carolina basketball game). If the university is performing an economic impact study of its basketball team, this individual would be classified as which of the following types of visitors? a. Casual visitor b. Time-switcher c. Reverse time-switcher d. Incremental visitor e. None of the above

B

1. Three interrelated sectors exist within finance. Which of the following sectors focuses on security choices made by individual and institutional investors as portfolios are being built? a. Money and capital markets b. Investments c. Financial management d. Derivative trading e. None of the above

B

2. What is the NCAA's main expense? a. Salaries b. Distribution to Division I members c. Distribution to Division II and III members d. General and administrative e. None of the above

B

3. Why does Major League Baseball sell the lowest percentage of its available seating inventory than any other major professional sports league? A. Prices are too high compared to other leagues B. Has 3 to 5 times more seats to sell than any other league C. Long seasons mean more teams are out of contention for an extended period D. Baseball is no longer "America's Pastime"

B

6. For schools in Division I-FBS conferences, where does the largest portion of the athletic program's revenues come from? a. NCAA revenue distributions b. Football c. Men's basketball d. Baseball e. None of the above

B

8. In which league have franchises typically been owned by corporations? a. Japanese Professional Baseball League b. Nippon Professional Baseball c. Major League Baseball d. Minor League Baseball e. None of the above

B

9. Under this sport franchise ownership model, __________ is the most common model of team ownership. a. Single Owner/Private Investor Model b. Multiple Owners/Private Investment Syndicate Model c. Multiple Owners/Publicly Traded Corporation Model d. Single Entity Model e. Distributed Club Ownership Model

B

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

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

On average, how many more fans went to SMU football games this season than years past? a. 1500 fans b. 5000 fans c. 3000 fans d. 4500 fans

B

What Act worked to end organized crime in sports betting in the 60s? A. Professional and Amateur Sports Act B. Federal Wire Act C. Travel Act D. Sports Bribery Act

B

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

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

1. When constructing a survey to measure direct spending at an event, the following question is designed to determine the type of visitor. Survey Question: "Does this visit to Houston replace any other past/future visit to this area?" a. Incremental visitor b. Casual visitor c. Time-switcher d. Reverse time-switcher e. Relevant visitor

C

10. Other than __________, sport leagues in the United States are subject to the Sherman Act. a. The National Football League b. The National Basketball League c. Major League Baseball d. The National Hockey League e. Major League Soccer

C

2. Which league once operated under a single-entity model? a. MLB b. NBA c. MLS d. NHL e. NFL

C

What did the Miami Dolphins do to try and help their stadium attendance issues? a. Add 10,000 more seats b. Lower food and drink prices c. Renovations to downsize Hard Rock stadium by about 10,000 seats d. Discount ticket prices

C

3. Three interrelated sectors exist within finance. The goal or outcome of those working in which of the following sectors is to acquire and secure funds to maximize shareholder wealth? a. Money and capital markets b. Investments c. Financial management d. Derivative trading e. None of the above

C

4. NCAA v. Board of Regents affected television revenue generated from which sport? a. Men's basketball b. Women's basketball c. Football d. All of the above e. None of the above

C

5. For Division I-FBS Group of 5 conferences, increased revenue depends on which of the following? a. Performance in the NCAA men's basketball tournament b. A conference football championship c. Having 12 football playing teams in a conference d. All of the above e. None of the above

C

5. Which league's salary slotting system encouraged the Houston team to make their on-field product particularly terrible from 2009-2013? a. NFL b. NBA c. MLB d. NHL e. All of the above

C

About how much does Shaq make a year from endorsements? A. 20 Million B. 40 Million C. 60 Million D. 100 Million

C

According to Rosentraub (from your readings and class lecture), as much as _______ of the money spent by consumers attending professional sporting events would occur in the absence of the team? A. "one-half" B. "10%" C. "four-fifths" D. "one quarter"

C

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

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

Since the mid-'90s, the primary publicsource 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

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

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

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

6. Which of the following is the responsibility of the commissioner's office under the franchisee/franchisor league structure? a. Negotiate national television contracts b. Establish relationships with vendors for league-wide licensed merchandise sales c. Hire and supervise game officials d. Negotiate a collective bargaining agreement with the players' union e. All of the above

E

8. Of the following statements regarding the Arts, Entertainment, and Recreation segment (NAICS 71) of our economy, which of the following is true? a. The industry employs a large number of full-time workers and relatively few seasonal and part-time workers. b. Those working in the industry tend to be older than those working in other industries. c. Wages for those working in the industry tend to be higher than wages paid to those working in other industries. d. Almost all leisure time activities, including watching movies, are a part of this sector. e. Rising incomes and increasing leisure time over the next 10 years should lead to an increase in demand in this sector.

E

9. Of the following, which is a trait of a major donor? a. They often desire to provide opportunities that they did not have while growing up, to help the less fortunate, to improve quality of life, and to help solve problems in society. b. They tend to be very religious, have a strong belief in free enterprise, and are basically conservative. c. They know someone in the athletic department or know something about the department, and they believe in someone working for the department or believe in something that the academic institution or athletic department represents. d. They have the resources to make a major gift. e. All of the above

E

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

What are potential future possibilities that may improve premium seating? a. Increased Wi-Fi b. All-Inclusive Concessions c. Improved Clubs d. Blending of Real and Virtual Environments e. All of the Above

E

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

False

T or F Time-switchers leave a community when it hosts an event.

False

T or F Typically, the most complicated tax to analyze when calculating fiscal impact is the sales tax.

False