Financial Flows
The profit formula is...
Profit = Revenue - Expenses
Something that an organization owns is a(n) ________; something that an organization owes is a(n) ________.
Asset; Liability
The formula for ROI is...
Return / Investment
OR
Profit / Expenses
When competitive balance is "equal" there is ________ amongst the teams in the league; when competitive balance is "unequal" there is ________ amongst the teams in the league.
Parity; Disparity
The NFL is not known as a monopoly; instead, it falls under the category of ________.
State Entity
List three different types of revenues in spectator sports.
Ticket Sales; Concessions; Merchandise; Media Contracts; Sponsorships
The accounting equation is...
Assets - Liability = Owners' Equity
The lowest ROI possible is ________.
The highest ROI possible is ________.
-100%; Infinity
What drafting method does the NFL use to rebalance competition each year?
Reverse-Order Drafting
The NBA uses what drafting strategy to maintain competitive balance within the league?
Lottery
The biggest expense for any major sports team is...
Player Salaries
When equipment loses value over time, this is known as...
Depreciation
The initial cost of upgrading luxury suites in the stadium is $500,000. The potential revenues of doing this is $2,300,000. What is the ROI?
360%
The NFL doesn't allow teams to spend higher than the salary cap. What type of salary cap is this?
Hard Salary Cap
Your organization takes out a $110,000 loan at 7% interest. How much do you owe back in total?
$117,700
The three ways to increase profit are...
Increase Revenues; Decrease Expenses; Both
Two things that would be categorized as Owners' Equity are...
Paid-In Capital; Stock; Retained Earnings
The potential resulting profit of signing Mookie Betts is $40,000,000. The potential revenue brought in because of this signing is $90,000,000. What is the ROI?
80%
The MLB doesn't use a hard or soft salary cap; instead they charge a fee to teams who go over the suggested maximum. This is known as ________.
Luxury Tax
An MLB team spends $310,000,000 on their players when the salary cap is $288,000,000. This is their 4th offense. What is their luxury tax?
$11,000,000
Inflows is the same as ________.
Outflows is the same as ________.
Revenues; Expenses
Accounts Receivable = $20,000
Equipment = $80,000
Salaries Payable = $40,000
Long-Term Loan = $50,000
Paid-In Capital = $7,000
Retained Earnings = ????
$3,000
An organization profited $10,000 from upgrading their food choices in the food court. This resulted in 25% ROI. How much did the organization invest in upgrading the food choices?
$40,000
National revenues are shared amongst teams within a league. ________ revenues are NOT shared amongst teams within a league.
Local
Local revenues are totally dependent on...
Market Size