Intro to Finance
Finance in Sport
Financial Systems & Markets
Ownership Structures
Sources of Revenue
100
The definition of finance
What is the management of money / examination of future decisions and outcomes regarding money?
100
Values to ownership that may not be accounted for in Forbes’ valuations
What are free marketing for ancillary companies, tax breaks, and cross‐ownership?
100
Mechanisms that allow anything of value to be exchanged between different parties
What are financial systems?
100
Disadvantages of a sole proprietorship
What are  Limited ability to raise capital  Owner takes on all losses  Unlimited personal liability against owner  Owner must be multi-talented  Limited long-term stability for employees
100
Facility-related Revenue Sources
What are • Ticket/admissions surcharge • Concession sales / food and beverage • Luxury suites / club seats • Parking • Naming rights • Permanent seat licenses • Broadcast rights • Venue advertising
200
The Fed
What is the central bank in the U.S. that regulates the nation’s financial institutions (including mortgage policies and personal lending policies)?
200
Sources of revenue
What are  Real Estate  Online Media  Fantasy Sports  Luxury Seating  Naming Rights  New Stadium Entertainment  Regional Network Ownership  “Alternative” Uniforms/Retro Uniforms
200
Forums in which suppliers of funds and demanders of funds can transact business directly
What are financial markets?
200
Opposite of sole proprietorship?
What is a corporation?
200
Second most significant source of revenue for FBS programs
What is fund raising?
300
Definition of Managerial Finance
What is the the area of finance that manages the financial affairs of businesses, including sports related firms?
300
Expenses/costs incurred during the operation of a sports business
What are  Team payroll  Administration & staff payroll  Transportation, lodging, food  Equipment  Overhead (electric, water, facility maintenance, etc.)  Mortgage & debt payments  Capital purchases  Advertising & marketing
300
This market is for long-term funds.
What are capital markets?
300
Owning every possible aspect of the business process from start to finish
What is vertical integration?
300
Originally called skyboxes, these are a universal and dominant feature of every new stadium or arena
What is luxury seating/suites?
400
Some internal constraints sport managers face.
What are past credit history, ticket sales, merchandise production, account receivables, account payables, and inventory?
400
Decision making based on incremental changes
What is marginal analysis?
400
Allows the debtor to repay the bond before maturity
What is a callable bond?
400
Local/County/State/National governments typically fund and manage these
What are  Parks and Recreation Departments  High School Athletic Departments  Community Centers  Public College Athletic Programs (NOT ALL)  Olympic Programs (also seen in non-profit structure)
400
Why companies buy naming rights?
What is differentiated exposure, opportunity to sell product, and corporate hospitality?
500
Examples of finance applying to sport
What are obtaining loans to build a new stadium, charging a pay to play fee in high school sports, determining membership fees for a health club, negotiating the cost of equipment for an intercollegiate sports team, estimating the value of a naming rights sponsorship?
500
Ways winning and playoff appearances enhance franchises?
What are  Winning means making the playoffs  Making the playoffs means more games  More games means more gate revenue
500
Three things that make an asset liquid?
What is short maturity period, ability to be sold on a daily basis, and low relative risk?
500
Details of a General Partnership
What is  Classified by an equal division of ownership  Owners share in business operation and management  Shared profits and liabilities (losses/debts)
500
Require an individual to purchase in advance the right to secure a particular seat in the venue
What are PSLs (Personal Seat Licenses)?
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