Sport finance study guide
The NFLPA has one of the strongest bargaining positions in American sports. They have an unusual arrangement where they can license their brand to make money. True or False a. True b. False
b. false
True or False: the Revenues earned from the NCAA March Madness Basketball Tournament annually exceed the revenues earned by the College Football Playoff a. True b. False
b. false
Commissioner Roger Goodell expects all of the revenue sources for the NFL to total how much by 2027? a. $7 billion b. $17 billion c. $27 billion d. $100 billion
$27 billion
Which company below is considered the industry standard for measuring ad rates and ratings of sports events? a. Nielsen b. Nelson c. Amazon d. Demographics Are Us
A. Nielsen
The new competitors coming into the sports media bidding wars include all but a. Google (Alphabet) b. Apple c. Disney+ d. Netflix e. Microsoft
C. Disney +
Which of the following groups are not a part of the International Olympic Committee's governing structure? a. The Olympic Partners b. National Olympic Committees c. International Federations d. World Anti-Doping Association e. Local Organizing City
Local Organizing city
What American sport drives the media rights for all other sports properties? a. NBA b. Major League Baseball c. NFL d. College football
NFL
The estimated annual profit is for gyms, health clubs and fitness centers (after expenses is): a. 11-13% b. 21-23% c. 31-33% d. Less than 10%
a. 11-13%
The new WNBA CBA offers new benefits to professional athletes previously not seen in American professional sports. Which of the benefits below fall into that category? a. Maternity leave b. Single hotel rooms on the road c. Paid for apartments during the season d. Third party endorsement opportunities
a. Maternity leave
True or False: Mega sport complexes have the opportunity to provide value for a larger number of consumer segments beyond youth sport participants - an untapped market segment is adult participation sport a. True b. False
a. true
True or False: Trends point to a general acceptance of mega sport complexes as the defacto replacement for school-offered or publicly funded sport in the United States a. True b. False
a. true
When schools want to construct a new football stadium, the biggest question remains how will we pay for it. Which of the fundraising strategies listed below was not included in the University of Minnesota's stadium campaign a. Tuition dollars b. Private Contributions c. Legal Claims and Settlements from environment remediation d. Stadium-driven revenues (including a ticket surcharge) e. Student fees
a. tuition dollars
In 2018, FIFA spent $1.97 billion on the men's World Cup. Which number below reflects the amount spent in that same year for Football Schools, women's promotion, referees and medical care? a. $578 million b. $101 million c. $1.2 billion d. $10 million
b. $101 million
The only non-private corporation owning an NFL franchise is which team? a. Dallas Cowboys b. Philadelphia Eagles c. Green Bay Packers d. Chicago Bears
c. green bay suckers
Why were the 1976 Olympic Games in Montreal recognized as one of the great disasters in the modern Olympic era? a. The total debt for the Games ballooned to $2.8 billion b. It took the city 30 years to pay off the debt c. No Canadiens won any medals d. A and B are correct e. B and C are correct
d. A and B are correct
The NBA has levied many taxes on player salaries. Which of the taxes or salary caps below was NOT levied on players at some point in the last few decades? a. Escrow tax b. Luxury tax c. Rookie salary caps d. All were levied e. None of the above
d. All were levied
Where do schools classified as NCAA Division II and III primarily receive their department revenues from (more than 50%): a. March Madness revenues from the NCAA b. Direct support from the institutional budget and student fees c. Ticket Sales d. Donor support and fundraising
d. Donor support and fundraising
Cord-cutting is defined as: a. Dropping your cable or satellite subscription completely and not watching sports b. Dropping only the channels you don't watch on your cable or satellite subscription c. Signing up for streaming and cable services together d. Giving up cable/satellite completely and relying on streaming only
d. Giving up cable/satellite completely and relying on streaming only
There are legitimate tangible financial benefits for a city to want to host the Olympic Games. Which of the reasons listed below is generally NOT cited as one of those reasons? a. Increases in philanthropic donations b. Opportunities for new start-up businesses c. Urban regeneration through infrastructure improvements d. Raising the living standards of the current residents
d. Raising the living standards of teh current residents
In 2015, when the NFL became a privately held, for profit corporation, their change in IRS status made them eligible for: a. No longer subject to public disclosure of their finances b. They could be taxed at the lower corporate rate, saving about $10 million c. They received no extra benefits d. Required the Commissioner's salary to be taxed at a lower rate e. A and B are correct f. A, B and D are correct
e. A and B are correct
Municipalities, cities and states are getting into the lending business. Which is the kind of bond they can issue? a. General Obligation Bonds b. Revenue Bonds c. Tax-Exempt Bonds d. Strategic Index Bonds e. A and B are correct f. None are correct
e. A and B are correct
. In the 2016 Men's World Cup in Brazil, Brazil spent $13.5 billion to build new soccer stadiums, transit and other amenities to attract the bid. Countries who bid to hold a World Cup are hoping their financial investment will lead to: a. Millions of tourists coming to watch and spend money from all over the world b. Investment in soccer infrastructure could make the country more competitive in the future c. Raise the country's prestige in the eyes of other nations d. Create a point of pride for its citizens e. All of the above f. None of the above
e. All of the above
Which is NOT a contractually-obligated in stadium revenue? a. Personal Seat Licenses b. Partial Area Naming Rights c. Luxury Boxes d. Club Seats e. Media revenues
e. media revenues
Municipalities look favorably on new stadiums/arenas because: a. More employees b. More opportunities for new revenue streams via tech c. More tax revenues from parking, concessions, player salaries d. Likely keeps franchise in the area for much longer period of time e. None of the above f. All of the above
f. all of the above
From 2009-2018, which grew faster: a. FBS Coaching salaries and benefits b. FBS Athlete scholarships and costs of attendance
a. fbs coaching salaries and benefits
The definition of a Debt Service Coverage Ratio (DSCR) is a. A measurement of a firm's available cash flow to pay current debt obligations b. A measurement of a firm's total cash flow to pay future debt obligations c. A measurement of a firm's available gate revenues to pay current debt obligations d. A measurement of a firm's available debt obligations that could be sold in the debt markets to
a. A measurement of a firm's available cash flow to pay future debt obligations
The definition of "over the air" (OTA) is: a. Any content originally delivered from TV towers by legacy stations like ABC, CBS and NBC b. Any Wi-Fi signal delivered to smartphones c. Local sports content d. Radio signals only
a. Any content originally delivered from TV towers by legacy stations like ABC, CBS, and NBC
Which of the world leagues is considered the richest? a. English Premier b. Major League Soccer c. La Liga d. Real Madrid
a. English Premier League
The NBA owners control four "entry points" for the league. Which one do the owners not control? a. Individual team ticket prices b. Setting the rules of competition in the league's games c. Limiting entry of teams to maintain league monopoly power d. Marketing the league's games and products
a. Individual team ticket prices
The Ambition ranking in the MLS takes into account all of the following except: a. Investment in team marketing in local markets b. Investment in top players c. Investment in soccer-specific facilities d. Investment in youth soccer (grow the game)
a. Investment in team marketing in local markets
The World Anti-Doping Agency's budget is supported by the IOC. What is the primary reason the IOC to supports WADA? a. Make an anti-doping ecosystem where safety and a level playing field are possible b. Be sure to catch the athletes who are using performance enhancing drugs c. Penalizing countries who use doping to gain a competitive edge d. Provide drug education
a. Make an anti-doping ecosystem where safety and a level playing field are possible
The formula for calculating DSCR is: a. Net Operating Income /Total Debt Service Cost b. Total Debt Service/Employee Salaries c. Stadium Total Cost/Net Operating Income d. None of the above
a. Net Operating Income/Total debt service cost
When it comes to public subsidies for arenas and practice facilities, which WNBA teams benefits from public subsidies of their facilities? a. Phoenix Mercury and Washington Mystics b. Seattle Storm and New York Liberty c. Detroit Shock and Orlando Miracle d. Utah Starzz and Indiana Fever
a. Phoenix Mercury and Washington Mystics
Select the correct answer. Indoor facilities differ from gyms, health and fitness. Indoor Facilities cater to: a. Soccer, basketball, ice hockey, tennis, swimming and diving, 'futsal', and volleyball activities. Can accommodate multiple setups simultaneously in order to host concurrent tournaments of various sports b. Cardio machines and free weights c. Classes (yoga, swimming, cycling) d. Indoor facilities offer separate charges for climbing walls, agility courses
a. Soccer, basketball, ice hockey, tennis, swimming and diving, futsal, and volleyball activities
BAM has evolved from one company to five different ones. Which one is not part of that bundle of tech platforms? a. Stubhub b. MLB.TV c. MLB At Bat mobile app d. Pitch f/x e. Statcast technology
a. Stubhub
Sports like surfing and tennis have more quickly approached equal pay. True or False? a. True b. False
a. True
The 2019 FIFA Women's World Cup in France drew 1 billion viewers around the globe who tuned in to watch a collective 2.5 billion hours of coverage. True or False? a. True b. False
a. True
The advent of names, images and likeness legislation at the college level could dramatically change the endorsement landscape for women players. True or False? a. True b. False
a. True
There is generally a positive correlation between new/improved stadium development and an increase in franchise revenue/franchise value a. True b. False
a. True
Major League Baseball defines "central" revenues as a group of different revenue streams that the league office controls. Which answer below is NOT a part of the "central" revenue? a. Local radio and television agreements b. National and international broadcast agreements c. Major League Baseball Properties Inc. d. Major League Baseball Advanced Media e. MLB Network
a. local radio and television agreements
Some of the highest prices are paid for amenities to differentiate one complex from another. Which recreational offering listed below is considered a highly expensive amenity with risky return value? a. Swimming pool b. Multi purpose fields c. Basketball and volleyball courts d. Cardio equipment and free weights
a. swimming pool
The entry fee to buy an MLS team has risen exponentially from $10 million in 2007 to: a. $200 million b. $325 million c. $450 million d. $529 million
b. $325 million
For Gyms, Health Clubs and Fitness centers, one of the biggest concerns is "churn rate". What is the typical annual turnover rate for these types of membership companies? a. 40% b. 30% c. 20% d. 15%
b. 30%
What is a "jock tax"? a. A local tax on anyone who plays sports b. A local, county or state tax on visiting teams c. A federal tax on all NFL players d. A tax on all players on the NFL's taxi squad
b. A local, county, or state tax on visiting teams
Some of the licensing deals the NFL has include the various partners. Which one below is NOT a current partner in an NFL licensing deal? a. DraftKings b. BetMGM c. Fanatics d. Nike
b. BetMGM
enerally, U. S. women's soccer players get the highest salaries as a member of a: a. NWSL team b. FIFA World Cup team c. Neither—they have to go to abroad to earn the highest pay
b. FIFA World Cup team
Through 2016, which Olympic Games drove the highest percentage of ticket sales? a. Atlanta b. London c. Rio d. Bejing
b. London
Which league is on the firmest financial footing? a. National Women's Hockey League b. National Women's Soccer League c. National Pro Fastpitch League d. None of the above
b. NWSL
The trend of building multi-purpose city owned stadiums and arenas was rampant in the 1960s through 1980s. Which multi use stadium is still being used today by one of the four major professional leagues? a. Philadelphia Spectrum b. Oakland Arena c. The Los Angeles Forum d. Robert F. Kennedy Memorial Stadium (DC)
b. Oakland Arena
In the 2020 NBA "Bubble" season played during the pandemic, the NBA negotiated a shortened regular season, but lengthened the playoffs. What financial impact did that have on player salaries? a. Owners had to pay the players more to play in the playoffs b. Owners paid players out of a playoff pool of monies that was significantly smaller than their regular season salaries c. Owners shared the post season media revenues with the players to thank them for living in a bubble for three months and playing all of their games in one facility d. None of the above
b. Owners paid players out of a playoff pool of money that was significantly smaller than their regular season salaries
What is the "Oscar Robertson" rule? a. Players had to sign with the same team when their contract expired b. Players could openly solicit offers when their contract was up c. Enacted the extension of the reserve clause d. All of the above
b. Players could openly solicit offers when their contract was up
The Post-Season Revenue Pool for players advancing to the post-season is collectively bargained with the players association. Where do these shared revenues come from? a. Post-season media revenues b. Post-season gate receipts c. Regular season gate receipts d. A pot of money housed in the league office
b. Post-season gate receipts
A player transfer fee is paid to: a. The team acquiring the player b. The team selling the player c. The owner of the team selling the player d. The league office
b. The team selling the player
The two largest sources of sponsorship revenues in the NFL are: a. UPS and Coca-Cola b. Verizon and AB InBev c. Microsoft and DraftKings d. EA Video games from 2018 and 2019
b. Verizon and AB InBev
The National Pro Fastpitch league allows potential team owners to: a. Franchise the team b. Buy the team c. Pay a share of the league expenses d. None of the above
b. buy the team
Which of the answers listed below is NOT considered a type of "club debt"? a. Basic business activities b. Concessions cost c. Ballpark construction and improvements d. Advances on future revenue e. General obligations on ball players' contracts
b. concessions cost
Conservative estimates say the WNBA brings in about $60 million each year with broadcast revenues and ticket sales included. If the WNBA players made the same percentage as the NBA players, how much money would be in the salary pool for all WNBA players? a. $20 million b. $25 million c. $30 million d. $40 million
c. $30 million
The New York Yankees leveraged a $675,000 land acquisition and $2.5 million stadium construction cost into a long-term relationship with the City of New York. Today, if the old Yankee Stadium still existed, it would cost how much to build? a. $100 million b. $175 million c. $350 million d. $500 million
c. $350 million
In advertising, if your goal is to reach 20,000 people, and your CPM is $200 per thousand, what will it cost you to buy an ad for that game? a. $10,000 b. $5,000 c. $4,000 d. $2,000
c. $4,000
Nike offered a first ever maternity clause in its contract in 2020 with: a. Sedona Prince b. Megan Rapinoe c. Alex Morgan d. Julie Ertz
c. Alex Morgan
Which Power 5 Conference was the first to launch their "conference-owned" network? a. Big 12 b. Pac-12 c. Big Ten d. ACC e. SEC
c. Big Ten
There are 13 ball clubs who are disqualified from revenue sharing because their "market share" score is above 100. Which ball club does not fall into that category? a. Oakland Athletics b. Philadelphia Phillies c. Kansas City Royals d. New York Yankees
c. Kansas City Royals
NFL Draft Picks salaries come from which entity? a. Is divided equally amongst all teams b. Teams contribute money into a pool for draft pick compensation and then that money is distributed back to the clubs based on how many picks they control and where those picks fall among the seven rounds c. Teams pay for every draft pick in their own salary pool d. All of the above
c. Teams pay for every draft pick in their own salary pool
Why did NBA star John Havlicek's salary explode after the 1969 season, setting the stage for the meteoric rise in player salaries? a. He bargained effectively for it b. Another team offered him more c. The NBA had a competitor league-the ABA d. He signed more team endorsement deals
c. The NBA had a competitor league - the ABA
Which would best describe the club ownership model in Major League Baseball? a. Wealthy individuals, families, and companies b. Investment funds have permission to purchase minority stakes in multiple ball clubs c. All clubs are owned by Major League Baseball d. A and B are true e. None are true
d. A and B are correct
Two of the biggest expenses the MLS faces in trying to expand their league footprint in the U.S. include: a. Stadiums and land acquisition b. Player salaries and coaches salaries c. Broadcasting games on television and stadiums d. Stadiums and player salaries
d. Stadiums and player salaries
MLB teams are multi-faceted revenue generating machines. Which of the entities listed below is a recognized part of that revenue stream? a. Real Estate b. Entertainment c. Hospitality and Concessions d. All are part of the revenue stream e. A and B only
d. all are part of the revenue stream
In the last decade, teams and franchises have been able to leverage aging facilities for new ones. In the example of Met Life Stadium, why did the New York Football Giants decide to stay in New Jersey? a. Tax incentives from the State of New Jersey b. More modern amenities and revenue streams c. Only 12 miles from Manhattan d. All of the above
d. all of the above
What are the major differences between college and professional sports? a. College athletics are part of a non-profit, tax exempt entity (higher education) b. Colleges have historically shown an unwillingness to pay their labor force (the athletes) c. Professional sports allow for collective bargaining, colleges do not d. All of the above e. None of the above
d. all of the above
. In the Group of Five Conferences, the single largest source of revenue is: a. Institutional support b. Donor Contributions c. Ticket Sales d. Bowl Game Revenues
d. bowl game revenues
The most valuable NFL franchise is: a. New York Giants b. Tampa Bay Buccaneers c. Los Angeles Rams d. Dallas Cowboys
d. dallas cowboys
Which of the revenue streams below has the NBA not yet taken advantage of? a. Local broadcasting deals b. Merchandise sales c. Sports betting d. Full uniform sponsorships e. Corporate sponsorships
d. full uniform sponsorship
The 1996 Telecommunications Act upended the finances of sports media. Which answer was not an outgrowth of the Act? a. It drove the widespread adoption of the internet b. Licensed more than 500 channels, many of which were sports channels like regional sports networks c. Both d. Neither
d. neither
Much of financial forecasting in the NFL is fairly predictable. Which event turns the financial model upside down? a. Fixed costs b. Long term contracts c. Stable rents d. Pandemics
d. pandemics
Which of the following are NOT a part of building an expense budget for media production? a. S, G and A: Selling, General and Administrative Expenses b. The amount paid to the league for the exclusive rights to their media content c. Production costs d. Salaries for the executives of the company
d. salaries for the executives of the company
Colleges are generally designated as "public" or "private". Which of the following best defines what a private institution is? a. A school that receives little to no support from state governments b. Founded to promote religious or other important belief systems c. Not subject to state laws that require athletic budgets and decisions to be transparent to the general public d. Part of a government entity to improve the public welfare of agriculture, research, etc e. A, B, C and D are correct f. None are correct
e. A,B,C,D
The National Governing Bodies are responsible for organizing and selecting a team to send to the Olympics. In the United States, which of the groups below is not an NGB? a. USA Field Hockey b. US Figure Skating c. USA Track and Field d. USA Baseball e. All are NGBs
e. All are NGBs
Which of the following is not a member of FIFA? a. Asian Football Confederation in Asia (AFC) b. Confederation of African Football (CAF) c. Football Confederation in North and Central America and the Caribbean (CONCACAF) d. South American Football Confederation (CONMEBOL) e. All are members
e. All are members
Within the Power 5 Conferences, which conference consistently earns the most total revenue according to the Knight Commission's Athletic Finances Database? a. Atlantic Coast Conference b. South Eastern Conference c. Big 12 Conference d. Pac-12 Conference e. Big Ten Conference
e. Big ten
The impact of Covid-19 on facilities has been dramatic. Which is NOT a concern for facility operators going forward? a. Decline in revenues from participants and spectators b. Health and facility ventilation concerns c. Food and beverage distribution d. Additional cleaning costs and staffing e. All are a concern f. A, B and C
e. all are a concern
If a city's leadership decides they would like to bid on hosting an Olympic Games, which potentially poor outcomes should they take into consideration when asking their residents to support this effort? a. Increase in taxes b. Lower funding for schools c. Reduction in salaries and resources for first responders d. Decreased funding for social services e. All of the above
e. all of the above
Some of the financial liabilities athletics departments have to consider in their budgets: a. Athletic departments are required to pay 20% of the athlete's medical insurance claims if/when they get injured b. Cancellation insurance c. Certain medical professionals are required to have malpractice and other kinds of legal protections in case they are sued d. Event cancellation insurance e. All of the above f. None of the above
e. all of the above
When trying to do financial forecasting, which of the following are unforeseen circumstances that financial managers should be prepared to address? a. Star player gets hurt b. Bad weather over a home stand c. Falling out of post season race d. Work stoppages e. All of the above
e. all of the above
In today's marketplace, there is less enthusiasm for cities and regions to ask taxpayers to pay for mega complexes. A municipality hoping to lure a mega recreational complex into its jurisdiction can (select the best answer): a. Sell the land to the mega recreational complex at a discount b. Provide tax credits and easements to the developer, owner, and/or operator c. Commit public funding to the construction of the mega complex d. Commit public resources to the operation and/or maintenance of the mega complex e. All of the above f. None of the above
e. all off the above
Comparing the amenities offered both at Disney's Wide World of Sports and IMG Academy in Florida, which of the following items is not shared by each business? a. Football and soccer fields b. Accredited academic program and boarding school c. Dining and shopping areas d. All are offered by both sites e. B and C are not shared
e. b and c are not shared
Athletic field construction specialists are an important partner in the success of a mega recreational complex. They can do many things well, but there is one part of facility construction they do not do. Select the correct answer: a. Artificial and natural grass fields b. Professional stadiums and design c. Track and field complexes d. Bleachers e. Lighting systems
e. lighting systems
MLB's initial investment of $1 million per ball club in BAM tech has evolved into a $900 million revenue stream shared by three companies a. New York Yankees b. Disney c. MLB d. NHL e. A, B and C are correct f. B, C and D are correct
f. B, C, D are correct
Which are the two highest revenue streams at each Olympic Games? a. Tickets b. Licensing c. Broadcast revenues d. TOP sponsors e. A and B f. C and D
f. C and D
Which of the following is NOT considered a capital asset in stadium construction? a. The purchase or acquisition of land b. The improvement of public infrastructure leading to and from and adjacent to the facility c. The construction of a complicated and technologically-advanced building d. The payment of the costs of construction and the debt service on all debts e. Operation and maintenance as building requires f. All are considered a capital asset
f. all are considered a capital asset
In addition to the media rights revenues, where else can finance officers look to monetize their content? a. Customers and fans data collected from second screens and apps b. Building dedicated apps that capture and engage fans while they are watching the games (aka second screens) c. Replaying the games multiple times on you channel, driving additional ad revenues without the production costs d. Licensing their content to other platforms e. None of the above f. All of the above
f. all of the above
