NCAA test 2023 with complete solution questions and answers

National Collegiate Athletic Association The collegiate model of athletics in which students participate as an avocation, balancing their academic, social, and athletics experiences - Highest levels of integrity and sportsmanship - Excellence in both academics and athletics Administers 23 sports and championships for those sports Provides vehicle to enforce: player eligibility, recruiting, financial aid/scholarships, playing/practice schedules, championship events Eligibility 3 requirements: - Graduated high school - Qualifying GPA (2.3) and ACT/SAT score (sliding scale, more strict for lower GPAs and less strict for higher GPAs) - Must be completing min number of required courses Four years excluding redshirts Academic redshirt Year used to get in compliance with standards at the college level Medical redshirts Hardship waivers; granted in special circumstances to injured/ill athletes who appear in fewer than 30% of team competitions (none beyond midpoint ) Recruiting Any solicitation of prospective student-athletes or their parents by an institutional staff member or by a representative of the institution's athletics interests for the purpose of securing a prospective student-athlete's enrollment and ultimate participation in the institution's intercollegiate athletics program Contact period A period where coach may have face-to-face, written and verbal contact with college-bound student-athletes and their parents, visit their high schools, and watch them compete Evaluation period No face-to-face contact in off-campus settings, but they can attend and watch high school games Contact Occurs anytime a coach says more than "hello" during face-to-face interactions with an incoming student-athlete or his or her parents in an off-campus setting Quiet period Allows for on-campus, face-to-face contact; letters and phone calls are allowed, but coaches cannot visit high schools or attend games in person Dead period No face-to-face contact is permitted in any form or setting; phone calls and letters are still allowed Official visit Any visit to a college campus by a college-bound student athlete and his or her parents in which the college pays for transportation to and from the campus, lodging, three meals per day, and reasonable entertainment expenses (i.e., three tickets to a home sporting event); only five official visits and one to each school can be taken by prospective student-athletes. Unofficial visit Visit that only includes reasonable entertainment expenses National Letter of Intent Signed by a college-bound student-athlete when the student-athlete agrees to attend a Division I or II college or university for one academic year. Participating institutions agree to provide financial aid for one academic year to the student-athlete as long as the student-athlete is admitted to the school and is eligible for financial aid under NCAA rules. - Ends the recruiting process Athletic Scholarships Awards of financial aid given to a student-athlete to attend a college or university based predominately on his or her ability to play a specific sport. Division 1 Highest level of intercollegiate athletics sanctioned by the NCAA; typically these schools have larger budgets, more elaborate facilities, and more athletic scholarships than other divisions Must have at least 7 men's and 7 women's or 6 men's and 8 women's; avg enrollment 12,900; nearly 60% of NCAA revenues given to these programs Football Bowl Subdivision FBS; allows maximum of 85 scholarships per year; championed determined by College Football Playoff No fewer than 90% of FBS scholarships can be awarded; full scholarships Football Championship Subdivision FCS; limited to 63 scholarships per year; can offer partial scholarships by dividing 63 scholarships; no fewer than 76.5 players must receive some form of support Division 3 The largest of the NCAA divisions (by number of schools) and consists of those colleges and universities that choose NOT to offer athletic scholarships to their student-athletes Aid must proportionally mirror amount given to rest of the school's general student body Avg enrollment 2,717; 81% are private; may NOT use endowments; only 3% of NCAA's total revenues are given to these programs D1 D3 comparison In D1, athletes are expected to focus on prime athletic preparedness In D3, athletes are expected to pursue their degrees under same general conditions as other students; university administrators often reject special treatment Division 2 NCAA intermediate level of competition; average enrollment is 3,848; member schools in Alaska, Canada, Puerto Rico Must sponsor 5 sports for men/women or 4 for men and 6 for women Scholarships offered by not same level/frequency as D1 schools; allowed to divided 36 full scholarships `Allocated Revenues Student "athletic" fees Direct institutional support Indirect institutional support (free rent/salary subsidies) Direct governmental support (receipt of funds from state and local govt agencies) Generated revenues Ticket sales Sponsorship/royalties Alumni contributions (booster club, scholarship endowments) Guarantees NCAA or conference distributions Football accounts for 50%, men's basketball 13%, women's basketball 0.5% Big revenue sources These 3 generated revenue sources account for 61% of total revenues at FBS level - Alumni/donor contributions (21%) - Ticket sales (20%) - NCAA/conference distributions TV rights (20%) Financial reality As of 2014, only 24 athletics programs in FBS generated a profit Average profit was 6 million, average deficit for remaining was 17 million Big expense sources These 3 items make up close to 2/3rds of total expenses at the FBS level - Salaries and benefits (34%) - Athletic scholarships (15%) - Facilities maintenance and rental fees (14%) Salaries/benefits given to coaches and senior-level administrators (market-driven) Cost of giving out scholarships, rises with cost of tuition Expense Report FBS/FCS sports with highest paid coaches: - Football, men's basketball, and women's basketball Roughly 60% of FBS men's basketball and football teams turn a profit; however, only 2 sports that consistently report revenues expenses Head football coaches highest paid employees; students direct "athletic fees" and indirectly "higher tuition rates" Athletics expenses are rising 2.3% higher than academic spending University Funding Trends appear troubling: 1. Institutional revenues are not being reinvested in academic areas 2. Higher education has faced financial difficulties in recent years as states cut budgets and funding 3. Students already paying high tuition and fees are being forced to pay even more in order to help subsidize athletics departments Title IX A comprehensive federal law that prohibits discrimination on the basis of sex in any federally funded education program or activity. Applies to athletics programs because considered (educational programs and activities); also private universities as well because students receive funding through federal financial aid programs Must meet one of three criteria Programs respond by: cutting budgets/teams, redistributing revenues from men's to women's sports, securing more money to add women's sports, capping scholarships offered to men's programs Substantial Proportionality Test Part of three prong Title IX Test Requires that women receive participation opportunities equal to the number of women in the student body at large (allowable difference no greater than 5%) Continued Improvement Test Part of three prong Title IX Test Requires that a university demonstrate a consistent history of expanding and improving its women's sports programs Accommodation of Interest Test Part of three prong Title IX Test Requires the university's athletics department to fully and effectively accommodate the interests and abilities of female student athletes Gender and sport More scholarship available to women then men (due to football having 4x) Basketball 15:13, T/F 18:13, Soccer 12:10, S/D 14:10 In 2010, avg D1 had 10 women, 9 men sports D2: 6.5 men, 7.5 women D3: 8 men, 9 women Broader range for women, however overall participation men exceed women (avg 232 males 174 females) Finding new revenues and implementing cost-containment strategies while still maintaining standards of gender equity are major fiscal challenges facing college sport administrators Ticket Sales Remain a prominent source of revenue in collegiate sport; account for ~25% of generated revenues (gap between top and bottom in conferences) In-house marketing, promotions, outsource, demand-oriented pricing Often prices reflect drawing premium opponents (FSU, OSU, TCU, Oregon, Bama, ND) Annual donations (largest sums over longest periods; donation-tiers, point systems) Concessions Success of this is driven by ticket sales; some schools grant pouring rights to procure more revenues; additional 3% of revenues, additional 1.5% for alcohol (30 stadiums) Alcohol sales limited to premium seating, limit sales; few major problems; reduce binge drinking prior to games NCAA Distributions Between 80-80% of NCAA's annual revenues come from the March Madness deal (8 year $8.8 billion runs until 2032) 43% of annual revenues are earmarked specifically for academic programs and financial assistance for student athletes 28% is placed in basketball fund handed to conferences with teams who have appeared at various stages of the tournament over past 6 years 34% administrator/coaching salaries 15% toward athletic scholarships 14% maintaining facilities 7% travel expenses 3% uniforms and supplies Conference distributions Sale of conference media rights; conference specific cable networks Push conference expansion because they want to extend viewing audiences of these networks College Football Playoff 12 year $7.3 billion deal with ESPN in 2012; each conference receive 300K for football member team that meets NCAA APR Conferences with bowl contracts receive $51 million, those without receive 79 million Conference receive $6 million for each team selected to semifinal game Teams playing in eligible non-playoff bowls generate $4 million for their conferences Expense report Salaries and benefits up to 34% Athletic scholarships and aid up to 15% Scholarship expenses cover all sports Additional expenses go toward improving the facilities and providing departments with funds necessary to travel and buy equipment Trust fund A fund comprised of a variety of assets intended to provide benefits to an individual when they reach a certain age or certain life event occurs College athlete paying proposals - Trust funds - Pay-for-play system - athletes paid per game for how long they play each game - Require coaches to share up to 50% of their bonuses with players - Turning Power 5 into minor league allowing athletes to participate if under age 23 Current Standing College Athletes Universities can cover full "cost of attendance" (in addition to tuition, fees, room and board, and books now cover commuting costs, cell phone fees, and other personal expenses) Vary by university (Cincinnati highest, FAU, FSU) Arguments for: only $11 of $105 million revenues is reinvested to scholarships and grants-in-aid; TV rights broadcasting; treated more like athletes then students; improve balance by offering value based on worth to the team Arguments against: students not employees, and paying them would cause larger performance gaps between teams and non-revenue sports would likely suffer or be non existent; small percentage make it professional so free education is great benefit and investment; outside of full scholarship, free housing/meals/medical/clothing/facilities; needs to remain competitive Why venues are important - Provide geographic base for operations - Home field advantage - Provide owners with revenues - Host mega events Structures are monuments to centrality of sport in American culture and to how wealth is expressed through sports 160 built during 1990s Cost tripled from 1990s to 2005-10 (luxury features, more expensive areas) Current trends of sport facilities - Seating capacities are shrinking, but overall footprints are growing larger as more "premium zones" are added - Retractable roofs Costs: materials, labor, land, technological enhancements, zoning fees/permit applications, business relocation and city infrastructure, finishing touches/aesthetics (huge gape existing between initial and final cost estimates) Private funding If a sport project exhibits the characteristics of a private good or service, its benefits accrue exclusively to the franchise and spectators at the games. If there are not benefits received by the general community, then it is reasonable to expect the franchise and fans to pay all of the costs and there should be no public subsidy. Public funding A public good or service is perceived by a community as contributing health, knowledge, safety, or welfare benefits to all residents in the community. Because all residents benefit, it is equitable that they should all pay through the tax system so public subsidy would be appropriate WW2 and Great Depression started this as resources became drained in leagues Sources: bonds, general taxes, selective taxes Civic Development Era Period after WWII 1950-70 - major league stadiums increased from 32 to 52, 60% publicly owned - gov't finance and construct facilities Characteristics during this era: local gov'ts are landlords and franchises were tenants; teams pay annual rent and shared revenues from parking and concessions; basic facilities; Public Subsidy Era Period after CDE from - 20 of 22 facilities constructed during this time were 90-100% funded by local gov'ts - Growth occurring in overall number of professional sports franchises, attendance, and tv viewership Sport franchises increasing in value; precedent funding was responsibility of the public; cities build new publicly financed venues to attract teams migrating to untapped markets Transitional Era Period after PSE - Governments progressively diminishing role in financing - First public-private partnerships (joint ventures) emerged during this era Two attempts in courts to curb local governments' abilities to construct venues - Deficit Reduction Act 1984 - Tax Reform Act of 1986 Deficit reduction act of 1984 Act that prohibited the use of tax-exempt bonds to finance luxury box construction Tax reform act of 1986 Prohibited the use of tax-exempt bonds to finance sports facilities if more than 10% of the principal and interest payments came from the sport franchise's revenues Full Loaded Era Period after TE 1995-current - Team owners have been forced to finance growing proportions of the venues on their own - 38 of 43 stadiums were finance by team resource; 33 of 39 arenas were financed by franchises occupying these facilities Public subsidies have shifted from general to selective taxes (from local community taxes to tourist taxes [hotel, rental car, restaurant]) Public subsidies still remain the dominant source of new facility development capital - proportion has gone down, the cost invested by public has increased Both governments and team owners have been forced to find creative ways to raise capital Four Factors Factors shifting franchise owners paying a greater proportion of facility construction costs 1. Enhanced revenue streams 2. Economic trends 3. Assistance given to individual owners 4. The desire to avoid controversy Economic impact Refers to the net economic change in the income of host residents that results from spending by visitors from outside the community Perceived benefits of construct new facility or hosting event: new jobs, more money to local economy, personal incomes will rise Economic Impact of Visitor Spending Economic impact of visitor spending = number of visitors x average spending per visitor x multiplier 1. defines who is a visitor 2. Estimates number of visitors attracted to community by sport event or facility 3. estimates average level of spending by visitors in local area 4. determines ripple effects of new money by applying appropriate multipliers Substitution effect Refers to the new economic phenomenon whereby new or additional spending leads to reduced spending within other sectors of that economy, immediately or over time Difficult to quantify this effect but assumption that large portion of economic activity would not be new Deflected impact Evidence suggests that a sport event keeps some residents at home who would otherwise have travelled for a trip Time Switcher Someone who was planning to attend the area anyway, but switched the timing of their arrival to coincide with a sporting event Casuals Visitors who are already in the community, attracted by other features, and who elect to go to the vent of doing something else Multiplier This concept recognizes that when visitors to a facility or event spend money in a community, their initial direct expenditures stimulates economic activity and creates additional business turnover, personal income, employment, and government revenue in the host community. Based on the recognition that the industries in an economy are interdependent (visitors pay to business who pays to local suppliers, etc) Direct effects The first round effects of visitor spending that incorporates visitor spending MINUS the cost of goods sold Indirect effects The ripple effects of additional rounds of recirculating the direct effects dollars by local businesses and governments Induced effects The result of employees at impacted businesses spending some of their salaries and wages at local businesses Multipliers Three areas in which these ____ effects are applied - Sales (visitor spending as it relates to local business turnover) - Personal income (how visitor spending affects the level of personal income in the host community) - Job creation (measures the effect of visitor spending on employment in the host community) (Direct sales + Indirect Sales + Induced Sales) / (Direct Sales) Job creation - Part time and only last while facility is being built or while games are being played - Minimum wage - Jobs also filled by commuters or temp workers Stadiums can host concerts, additional sporting vents, conventions/conferences (greater community impact) Economic impact analysis Tend to understate obvious costs associated with construction and hosting - Direct monetary costs after initial estimates - Leavers and avoiders - Replacement costs - Tax-exempt bonds benefit those issuing them - Roster depreciation - Luxury and club seats are entertainment expenses Hidden: infrastructure improvement, leases, funding to team owners These analyses are full of biases and seldom subjected to scholarly review. (disclaimers, assumptions, positive outlook) Opportunity costs The loss of potential gain from other alternative when one alternative is chosen Economic impact overview Obvious that construction of a facility or hosing of an event has a financial impact of some sort on surrounding community However the actual economic impacts reported grossly exaggerate the benefits that will truly be returned to the communities whose tax payments fund these ventures. Also tend to understate the costs The pride, atmosphere and sense of unity it brings to a community. Even if the monetary benefits are unclear or nonexistent, locals can still derive joy from hosting the team or event. Legacy The sustainable gains that accrue to the people living within a jurisdiction who paid for facilities Structural capital The physical infrastructure improvements stimulated by built sport facilities and their complementary developments - Sport facilities viewed as anchors - Catalysts to retail, commercial, residential growth Cumulative attraction Principle that attractions will do more business and create more proximate development if they are located close to each other Clustering A form of cumulative attractive that occurs at a regional level - Tendency for businesses in any industry to cluster in a particular region because of the symbiotic and complementary Urban rejuvenation Rejuvenation legacy includes: - rehabilitation of land, industrial sites, contaminated areas - new/upgraded facilities - infrastructure improvements Social Capital Relationships, norms and connections that bind people together and contribute to the accomplishment of collective goals - Enhance brand equity (awareness, image) - Raise awareness of identity and promotes desired image - Attracts businesses and tourist - Builds pride/self-esteem - Strengthens social cohesion External: sport facilities are intended to positively influence the impressions and actions of those who reside outside the community Internal: community pride and social cohesion lead to positive emotional and psychological outcomes that directly impact local residents Awareness 1. Repeated exposure to a city's name may lead to an increased affinity for it 2. Awareness is required before an image of the city can be shaped Image The mental reconstruction of a place composed of beliefs, ideas and impressions residing in an individual's memory. Sport can be useful vehicle through which city image can be enhanced Attracting Business 4 conduits through which sport facilities may induce positive business outcomes 1. Attraction from increased awareness 2. Attracting talent 3. Facilitated networking at sport facilities 4. Facilitated networking at mega sporting events Social cohesion A corollary of community pride, refers to the tangible focus that sport teams can provide for building community consciousness, identity, and social bonding Bridge economic, racial, and ethnic gaps Debt financing Most common way local gov'ts raise money to pay for major capital developments Borrowing money without giving up ownership Bonds Promises by an entity borrowing money to pay back the principal and interest amounts within a specified period of time Principal amount The face/par value amount for which the bond is issued Rate of interest Fixed at a specified percentage over the life the bond (coupon rate) Date of maturity Specifies the date on which the face value of the bond must be repaid in full General obligation Bonds that are full-faithed and credit obligations backed by local gov'ts authority to levy taxes Pro: secure, lower interest rates Cons: must obtain voter approval Revenue Rely on revenues produced by a facility to redeem them Pros: shifts to taxpayers to receive benefits; approval is easier Cons: interest rate is higher General taxes The burden of payment falls on all, or a significant proportion, of taxpayers within a specific jurisdiction (property/sales) Selective taxes Payment is borne by a relatively small proportion of taxpayers (tourist/sin, player income) Little political resistance to raising Tourist taxes (hotel-motel, car rentals) Sin taxes Property taxes A form of general tax levied against owners of real property in a specific jurisdiction (assessed value) Churches, educational institutions, charitable organizations, cemeteries, hospitals, historic sites, state/federal institutions Sales Taxes Largest tax revenue for states (n/a Alaska, Delaware, Montana, New Hampshire, Oregon) Help finance sport facilities Player income taxes Taxes that take a percentage of a visiting professional athlete's game check after he conducts business (plays or practices) within a state (games played or duty days) Summary of taxes Local governments raise money to finance a facility by borrowing money from lending institutions (banks) and private investors through the sale of bonds The funds used to repay these bonds (principal and interest) come from general or selective tax source, or venues produced by the venue itself. Partnership A collaboration amongst business, non-profit and government organizations in which risks, resources, and skills are shared in projects that benefit each partner as well as the community Tax abatement An agreement between a public jurisdiction and a commercial operator that the jurisdiction will waive at least some of the property taxes on a proposed new development for a given period of time