Pro Sports Financial Issues
This accounts for lost revenue when new teams join a professional league.
What are expansion fees?
The two most lucrative forms of sponsorship revenue.
What are stadium naming rights and jersey sponsorships?
The competition between universities to have the highest coaching salaries and nicest facilities.
What is the arms race?
The universities that earn the most revenue in college sports belong to this group.
What are the Power 4 (2) conferences?
This demographic is responsible for the massive increase in sport gambling.
Who are fans under 40?
This occurred to minor league baseball in 2021 and to the Sacramento Monarchs in 2009.
What is contraction?
This structure enables small market teams to not only survive but compete.
What is the cartel structure?
When athletic directors make bad coaching hires, athletic departments sometimes end up spending millions on these.
What are buyouts?
Revenue that comes from one athletic program (often a wealthy) paying another program (often poor) to visit and play a football or basketball game.
What is a guarantee game?
This group of athletes is most susceptible to corruption by gamblers.
Who are college athletes?
The reason owners are willing to operate their teams at a loss.
What is appreciation in team value?
The aspect of a new stadium that provides teams with the most revenue.
What is premium/luxury seating?
This is often the first and most common way for athletic departmetnts to reduce expenses.
What is cut sports?
When boosters give money that goes unused but allows the school to use the interest from investing that donation.
What is an endowment?
The two ways leagues and teams benefit from increased sports gambling.
What are gambling related revenue and increased engagement?
When a team generates significant amounts of revenue after it relocates, but revenue drops significantly after a few seasons.
What is the honeymoon period?
When a city pays for a stadium and allows the team to use it for free or even claim revenue from its events.
What is public subsidy?
This occurs when the high salaries for football and basketball coaches leads to salary increases for softball and soccer coaches.
What is the trickle down effect?
Outside of the top 25-30 richest programs, colleges and universities fund athletic department primarily with this major revenue stream.
What are student fees/tuition (institutional support)?
The US Supreme Court made this ruling in 2018 that affected the availability of sports gambling.
What is allowing each state to determine laws about sport gambling?
To increase the opportunities for ownership, leagues are allowing these two types of owners.
What are institutional investors and private equity firms?
The two groups that have a significant influence on professional athlete salaries.
Who are agents and unions?
College athletic departments spend what they make because they need to maintain this.
What is non-profit status?
Major sponsors in college sports want these two attributes in an athletic department.
What are big TV ratings and large crowds?
The NFL and MLB have more potential for gambling revenue because they have opportunities for these kinds of bets.
What are microbets (prop bets)?