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Unformatted text preview: The biggest way it affects the company is franchise borrowing money. Lower risk franchises have lower interest rates Of MLB, the NBA, or the NHL, which league has the most risk and which has the least? Why? The NFL has the lowest risk. They are the highest revenue producing organization in the U.S. and the number keeps growing. The NBA could be the highest risk because the lockout was a big financial hit and the television rights are done independently. What risk factors should a team consider when deciding whether to build and fund a new venue? How are the risk factors different if a municipality is funding the construction? A team must consider their budget, the risk-free rate, the risk premium, the time period as far as borrowing money goes, and returns. If a municipality is funding the construction there is more of a concern on time rather than their budget....
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- Spring '07