Financial Statements & Ratios
This financial statement shows revenues and expenses for a period.
What is an income statement?
Money today is worth ___ than money tomorrow.
What is more?
Risk in finance means this.
What is uncertainty of future returns?
Economic Impact = Visitors × Spending × this.
What is the Multiplier?
These are one-time fees fans pay for the right to buy season tickets.
What are Personal Seat Licenses (PSLs)?
Current Ratio is calculated as these two things.
What are Current Assets ÷ Current Liabilities?
A team offers you $1,000 today or $1,000 in two years. If the discount rate is 0%, which should you choose?
What is either?
A guaranteed contract has ___ risk but also usually ___ return.
What is lower risk, lower return?
Only this type of spending counts as “new money.”
What is non-local visitor spending?
This type of bond is backed by the full faith and credit of the city.
What is a General Obligation Bond?
If a team earns $20M profit on $100M revenue, its net profit margin is this.
What is 20%?
If you invest $500 at 5% simple interest for 1 year, the interest earned is this
What is $25?
Bonds backed by this revenue source are riskier than those backed by city taxes — as shown in Allegiant Stadium’s financing.
What are tourism taxes?
The three types of multiplier effects
What are Direct, Indirect, and Induced?
This type of tax is often applied to hotels and rental cars to help fund stadiums.
What is a Tourist Tax?
This ratio measures how efficiently assets generate revenue.
What is Asset Turnover Ratio?
The process of finding today’s value of a future payment is called this
What is present value?
A rookie has a 40% chance to be worth $50M and a 60% chance to be worth $5M. The expected value is this.
What is $23M?
This effect happens when locals shift spending from one activity (movies) to another (games).
What is the Substitution Effect?
Premium seating (suites, clubs) is valuable because of this.
What is high margins and multi-year contracts?
A balance sheet lists these three main items.
What are Assets, Liabilities and Equity?
A player is offered $10M today or $12M in 4 years. If the discount rate is 5%, the present value of $12M in 4 years is approximately this.
What is $9.88M?
The extra return investors demand for taking risk is called this.
What is the Risk Premium?
The hidden cost of choosing one project over another is called this.
What is Opportunity Cost?
A stadium has 100 luxury suites that each sell for $200,000 annually. How much revenue do the suites generate per year?