Midterm Study Guide

Midterm Study Guide - KINS 3560 Midterm Study Guide MIDTERM...

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KINS 3560 – Midterm Study Guide MIDTERM – Tuesday, March 4th, 2008 @ 3:30 pm CONTENTS - Book Chapters 1, 2, 3, 5 plus ‘Intro to Professional Sports (ppt)’ After studying, you should be able to know/ understand/ define/ recognize: UNIQUENESS of SPORTS 1. 10 differences between (a) typical goods/services marketing/business and (b) sport marketing/business PROFESSIONAL SPORTS – INTRO 1. Main/major team revenue sources (revenue items) a. Advertising and the national and local sales of broadcast, cable, satellite, radio, internet rights; tv being the most. 2. Team expense items a. Facilities b. free agents c. player salaries d. player/coach compensation e. operating facility 3. Privileges of having franchise rights a. territorial rights – one team per market b. revenue sharing – very good in NFL (74-80%) 4. Common legal issues a. Contract b. Antitrust c. Labor 5. Common revenue sources for individual sports a. Gate receipts b. Sponsorships c. Media rights CH 1 – OWNERSHIP 1. Trend in team ownerships (Key distinctions b/w then and now) a. Playing/coaching experience no longer prerequisite to owning b. 20% of teams in the big 4 owned by corps c. Horizontal integration – gaining control of competitors, until control most of market d. Vertical integration – taking control of suppliers and distributors; taking away customer’s choice 2. Whether sports franchise ownership is profitable a. Generally not profitable as bottom line entity
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b. Have vs. Have nots c. Often profitable as an asset to be held and sold 3. Motivations/ reasons to own a sport franchise (by individuals vs. by corporations) a. Ownership by individuals – feeling of success and identity with a team
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Midterm Study Guide - KINS 3560 Midterm Study Guide MIDTERM...

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