Vocabulary
What is the definition of "discretionary income"?
Discretionary Income: Money left over after taxes and necessities like rent/food.
Why is it difficult to estimate the value of a sports franchise?
Only a few companies release their financial statements.
What is the purpose of the National Collegiate Athletic Association (NCAA)?
The National Collegiate Athletic Association (NCAA) is a member-led organization dedicated to the well-being and lifelong success of college athletes.
What are the 3 factors that influence how consumers choose between products/services?
Price, Quality, Convenience
What is the definition of "Multiplier Effect"?
Multiplier Effect: The process by which an initial change in spending in an economy leads to a larger overall change in local income.
What is the difference between a Core product and an Ancillary product?
Core: A company's primary, essential, and main revenue-generating offerings
Ancillary: Supporting, optional items or services that enhance the value, convenience, or functionality of the core product while creating additional revenue streams
List the 3 segments of the Entertainment Industry as described in the slides.
Film, Music, Theme Parks
What is the definition of "psychic income"?
Psychic Income: The "pride" and "fame" a town gets for hosting a team.
Media & broadcast rights, Stadium economics/premium seating, Real estate
List the 4 segments of the Sports industry as described in the slides.
Professional, College, Amateur, Niche
What is the definition of "direct competition"?
What is the definition of "indirect competition"?
Direct Competition: Two or more businesses offering the same product/service
Indirect Competition: Businesses offering different products/services that fill the same need
What are the 3 reasons why teams lose money?
Player salaries, Luxury tax, Infrastructure debt
What is the difference between Amateur and Niche sports?
Amateur sports: Sports in which participants engage largely or entirely without financial compensation.
Niche sports: Specialized activities with dedicated, smaller fanbases and lower funding compared to mainstream sports.
Why do marketers care about the Multiplier Effect?
Cities compete for sports teams and events because they want this "new money" to circulate through their town multiple times.
What is the definition of "revenue leakage"?
Revenue Leakage: When money spent at a stadium/event goes to an out-of-state owner rather than staying in the local state economy.
What are the 2 options for purchasing/owning a local sports franchise, other than outright purchasing it on your own?
Consortium ownership: Multiple parties invest under a framework defined by member agreements, charters, and bylaws
Public/Community ownership: Fans & community members purchase shares in the franchise, becoming part owner
Who are the "Big Five" of the film industry? (100 pts each)
Universal, Paramount, Warner Bros., Disney, Sony
What are the 3 main ways to identify your competition?
Using social networks, Conducting online research, Analyzing keywords