Sport facilities have a long list of different revenue sources and they can vary in many different ways like quantity, price, and where the money comes from. Ticket sales is one largest revenues for sport facilities and the most common to think of. But there are others for example, concessions, parking, and naming rights. All of these are ways a sport facilities to make money of spectators and companies that want some exposure. Tickets is the most common thought of revenue for sport facilities because if there are no spectators buying tickets then there are no fans buying parking passes and concessions and no company would want to advertise where no spectators are going to be. For professional sport leagues average tickets can vary a lot …show more content…
The main idea of a naming rights deal is that a company will pay the sport facility to name the facility after the company and have some additional advertising around the stadium. This is a win for both the facility and the company because the facility can get additional revenue and the company receives exposure from fans attending the stadium as well as fans watching from home. This deals can be cost up to hundreds of millions of dollars which is a very easy way for a facility to make a large piece of revenue. But unfortunately there is a downside to the naming rights deal which is that if the host team is losing fans or relocates than the company may not want to continue the deal and the facility would have to find a new company to propose a deal with. There are plenty of ways a facility can make revenue some from fans watching the sporting event and some from companies wanting to add some additional exposure. Almost all of the sport facility revenue greatly depend on what league the facility is used for, the location of the facility, and how popular the host team is. These differences can vary a lot but for sport facilities there are plenty of different ways to make plenty of
Sporting is one of the universal activities that brings people from different backgrounds together and is viewed as an income generating activity that creates revenue for the participants as well as the location where the activities are held. The NCAA Final Four Basketball Tournament is one of the most anticipated sporting events in the US that attracts a high number of fans in the cities where it is held. Before the Final Four is held in given location, it is imperative for the organizers to have a detailed understanding of the venue so that they can introduce marketing strategies that are in line with the demands of the fans (Snipes & Ingram, 2007). The host committee is charged with the responsibility to come introduce an exhilarating experience for the locals and visitors. Owing to the interest generated
Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
The precursor to this cost was a decade of skyrocketing salaries and the trend to build huge public ally financed megaplexis to house these professional athletes. The current response to this ostentatious decade is to put forth bills to prevent and/or set limits on public financed projects (Shafroth, 1996). The history of stadiums shows that it was always the norm of publicly building stadiums, however, with the cost of these projects astronomical the public is more skeptical (Rosentraub, 1991). The reason why state and local governments continue to want to finance these stadiums has been much debated. The main debate is one of economic impact. The following two excerpts illustrate this debate:
There is a nationwide trend in which taxpayers are asked to pay for new stadiums these stadiums benefit a single corporation. A sport construction boom has started, these new stadiums cost a minimum of $200 million to build, but usually cost much more. New stadiums have been built, or are underway, in New York, Pittsburgh, Dallas, Baltimore, Cincinnati, Seattle, Tampa, Washington DC, St. Louis, Jacksonville, and Oakland. This competitive trend replaces old stadiums with high tech flashy stadiums used exclusively for one sport. These stadiums are unnecessary, and not cost efficient. Most of the time new stadiums are not used for multi-purposes, they bring in money exclusively for the professional league and not ...
These small, mostly private schools are spending millions on Football fields, Gyms, indoor and outdoor tracks and student recreation centers. This battle seems almost unnecessary considering almost zero of these athletes will become professionals and in most cases athletics takes away around 20-25 hours of school work time to there student athletes. Looking at the research there seems to be three reasons why schools sell the idea of how a new facility can bring more then a large bill to the school. These points are first recruiting success that leads to athletic success and the enrollment bump in not only the student athletes but also the student population as a whole. Finally how the sch...
The targeted customer for sports bar franchises are individuals who dine out, but also take pleasure in viewing a variety of spectator sports at the same time. There are many different sports that are able to be observed when an individual is dining at one of these types of businesses.
This topic mind boggles me because of all of the variables involved as well as what can be learned from the research. One thing that I would like to learn is how much money is profited for some of the major universities by some of their big time athletes. This interests me because being an Auburn fan, Cam Newton and Bo Jackson are two of the most prolific athletes ever to touch the football field and both played at Auburn. Every game that I attend thousands of fans wear those gracious number 2 and 34 jerseys without a name on the back. I would like to know how much money was profited from just those two players alone for Auburn University without ever having to pay them for their efforts on the field. This happens all over the country each year, yet only the school...
Solomon, Jon. "Alabama Reports $143.4 Million in Athletic Revenue, up 16% from a Year Earlier." Alabama. 22 Oct. 2013. Web. 2 May 2014.
Most of the money comes from scholarships and financial aid. President Obama considered paying college athletes. He believes that it would benefit them while in college. Over the years, it’s been a trending topic about athletes getting paid. Most athletes uses scholarships. Majority of colleges are debating whether paying college athletes would benefit them in any way. The most common two sports are football and basketball. These are the main two sports that athletes should be getting paid to do.
From 2001 2002 there was a 23% increase in the construction of sports stadiums and arenas with costs of those facilities upwards of $7.8 billion. The growing global sport industry requires that sport facility and event management keep current of new and proven management techniques. Sport Facility Management: Organizing Events and Mitigating Risks by Ammon, Jr., Southall, and Blair, provides readers with a basic introduction to elements of facility management for the full range of sporting and entertainment events. There is a high demand for individuals who are educated and trained in facility management, event organization, and risk management and since the September 11 attacks there has been a great emphasis placed on facility and risk management. Each chapter provides theoretical foundations and practical applications for each critical phase of facility management. The authors provided photographs, case studies, and industry examples to assist the reader in gaining an overall basic, picture of the sporting event and entertainment industry today. The book provides in-depth discussions about positive advances that have made the entire experience easier and more comfortable for fans; and about the negative economic and cultural consequences for sport events after September 11 2001.
One may disagree that hosting Olympics is not worthwhile as it requires a city or a country to bring out an enormous sum of money for the preparation and planning of hosting the Olympics. Zimbalist (2012, pp. 116) says that the summer Games roughly generates a total of $5-$6 billion and almost half of it belongs to the International Olympic Committee. On the other hand, the cost of the games has increased roughly
A recent article in Readers Digest estimates that most Americans spend at least 13% of their income on sporting events and sport related products. Sports has entertained American people and drained money out of their pockets making sporting events an arena of pure economic activity. It has been proven that Americans will purchase tickets to attend sporting events, but this alone does not create enough revenue to keep sports teams profitable.
In every major sports event, like the FIFA World Cup or the Olympics, there’s always a huge celebration and a positive vibes surrounding such events. Hosting these events are usually a great honor to the selected countries and bring a lot of favorable consequences with it. However, no one realized that whenever these big sporting events occur and are hosted, brings as much negative consequences which counterbalances all the good things that comes with it. So, the question remains, is the Olympics a Cash Cow or a Money Pit to the hosting countries? In my opinion, the Olympics could actually bring more benefit that loss to the selected countries to host it, which are to bring positive economic and cultural benefits, either a Legacy or a Money pit for the hosting countries, hosting this event could promote development for the educational legacy and finally eradicating poverty throughout the citizens.
Sports are one of the most profitable industries in the world. Everyone wants to get their hands on a piece of the action. Those individuals and industries that spend hundreds of millions of dollars on these sports teams are hoping to make a profit, but it may be an indirect profit. It could be a profit for the sports club, or it could be a promotion for another organization (i.e. Rupert Murdoch, FOX). The economics involved with sports have drastically changed over the last ten years.
The sports industry is a business enterprise focused on sports. This market includes organisations, activities, and people who are involved in organising, promoting, producing and facilitating the progression of sports and the entertainment of all stakeholders (Pederson 2011).