Matchday Revenue
This is the income from hosting a home game
Gameday Revenue
What do broadcast rights allow companies to do?
Air and distribute sports content.
What are expenses in the context of sports organizations?
Costs incurred to generate revenue.
What is revenue?
Income generated from business operations
What factors contribute to explosive value growth in sports franchises?
Supply and demand.
These are sources of matchday revenue
Ticket sales, luxury seating, food, drinks, hospitality
Why are broadcast rights more lucrative than ticket sales?
They have become the primary revenue source for most teams.
What is typically the biggest expense for professional sports teams?
Player payroll.
What are three ways collegiate athletics generate revenue?
Fundraising, ticket sales, and donations.
How can supply and demand affect sports team values?
Higher demand can increase team value.
These were the #1 source of revenue for a team, before broadcast rights
Ticket sales
What is meant by exclusivity in broadcasting?
Only the contracted channel can air the games.
How do net profits and net losses differ?
Net profit occurs when revenue exceeds expenses; net loss is the opposite.
How does fundraising contribute to collegiate programs?
It helps supplement their revenue.
What is a labor dispute?
A conflict between players or officials and team owners.
How does premium seating affect gameday revenue more than regular tickets?
They provide higher earnings per ticket sold.
What role do Regional Sports Networks play in broadcast rights?
They invest in local teams to broadcast games in specific markets.
What is an income statement?
A document identifying all revenues and expenses.
Why might professional sports teams rely less on donations than collegiate programs?
They have more income from ticket sales and broadcasting
How does a strike differ from a lockout?
A strike is initiated by players; a lockout is by owners.
How can matchday revenue vary between teams?
Factors include team popularity, market size, and stadium capacity.
How do ratings influence advertising sales?
Higher ratings lead to increased advertising revenue.
How can work stoppages impact a sports team’s profitability?
They can disrupt operations and reduce revenue.
How has the value of professional sports teams changed recently?
They have experienced explosive growth.
In what ways can economic conditions impact sports revenues overall?
Economic downturns can reduce discretionary spending on tickets and merchandise