Sponsorship: the two-way exchange between business and sport organization from which
the company expects tangible commercial benefits
Fundraising: the solicitation of money for a sport organization
Sponsorship involves a contract in terms of how much and
Test 3 Notes
Public subsidy justifications
o Financial challenges
Poor economic conditions
Declining ratings due to saturations
Very expensive to go to these games
Very expensive to build
4 reasons for support of EI
o New spending in the community generated by workers and attendees
o The team attracts tourists and companies which further increases local
o The multiplier effect:
Advocates of the EI says that stadiums bring in so m
EA supports the Entertainment Software Ratings Board (ESRB) and game
ratings. As a founding member of the ESRB, we believe in an industrysupported, voluntary rating system. Ratings are designed to provide accurate
and objective information about the conte
Sport Finance SPM 4515
Exam # 3 Potential Questions
Note. Any information discussed in class, the readings, seen in videos, or posted to the website could be a
potential test question.
Public Subsidy Justifications
1. Define subsidy.
a. A grant or monetar
Electronic Arts Incorporated
History of Electronic Arts
When choosing a company to adopt, a great deal of research must go into the decision.
After doing such research, Electronic Arts Incorporated (ticker symbol is ERTS) was chosen.
EA is publicly traded