SPMA 2P27 FINAL EXAM STUDY GUIDE
Barry Ackerly - Answer -Purchased the Sonics in 1983 for $11 million.
KeyArena Renovation 1995 - Answer -The Sonics paid $25M and the city paid $74M to
raise capacity.
1995-96 Sonics Season - Answer -They won 64 games.
Impact of Sonics Games - Answer -They brought together different races and the
community to enjoy a shared experience.
Economic State of Sonics (February 2006) - Answer -Their economic impact was close
to zero.
Nick Licata Criticism - Answer -People felt he was 'racist' and didn't want the team
around.
Mariners Threat to Move (1995) - Answer -Led to a $410 million proposal for a new
stadium.
Mariners' Stadium Name - Answer -Safeco Field.
Seahawks Stadium Desire - Answer -Because the Mariners got one.
Seahawks Stadium (1997) - Answer -Qwest Field, costing $430 million.
Kingdome (2000) - Answer -It was demolished (blew up).
Sonics Funding Issues (2006) - Answer -They started losing funding, prompting David
Stern's involvement.
David Stern - Answer -A lawyer for the NBA, became commissioner in 1984.
David Stern's Tactic - Answer -He often threatened relocation for financially weak
teams.
KeyArena Issues - Answer -Smallest seating capacity among NBA arenas; even
sellouts wouldn't cover costs.
Sonics Reported Losses - Answer -$60 million.
Team's Loss Offset - Answer -State subsidy.
Howard Schultz - Answer -CEO of Starbucks that owned the Sonics.
, Sonics Sale to Investors - Answer -A group of investors in an LLC from Oklahoma
bought the Sonics and Storm from Howard Schultz.
Howard Schultz's Claim - Answer -Claimed the team sale violated the concept of 'public
trust.'
Schultz's Purchase Price (2001) - Answer -$200 million.
Team Valuation by Forbes (2006) - Answer -$234 million.
Schultz's Sale Price (2006) - Answer -$350 million.
Initiative 91 - Answer -A voter initiative that required a positive return on public arena
investments; passed with nearly 70% approval.
Argument Against Public Funding - Answer -Schools lacked enough money for books,
so funding shouldn't go to a team.
September 21, 2007 - Answer -Talks began about building a new arena or relocating
the team.
Clay Bennett - Answer -The buyer from Oklahoma; his plan was always to move the
team to Oklahoma City.
Aubrey McClendon Financial Loss - Answer -He lost nearly $2 billion.
Sonics Relocation Year - Answer -2008
Howard Schultz's Legal Action - Answer -He filed a lawsuit after the sale.
Funding Authorization - Answer -A special session was called to authorize funding or
Clay Bennett would be released from the final $30 million payment.
Self-Sustained Athletic Department - Answer -While it's ideal for financial
independence, this is not always the mandate.
Accounting in Athletic Departments - Answer -Accounting methods can be misleading,
especially regarding transfer pricing and reported losses.
Transfer Pricing in Sports Finance - Answer -The analysis, documentation, and
adjustment of charges made between related parties for goods, services, or property
use.
Revenue Reporting for Athletic Departments - Answer -Athletic departments are not
supposed to report revenue generated outside of sponsored sports.
Barry Ackerly - Answer -Purchased the Sonics in 1983 for $11 million.
KeyArena Renovation 1995 - Answer -The Sonics paid $25M and the city paid $74M to
raise capacity.
1995-96 Sonics Season - Answer -They won 64 games.
Impact of Sonics Games - Answer -They brought together different races and the
community to enjoy a shared experience.
Economic State of Sonics (February 2006) - Answer -Their economic impact was close
to zero.
Nick Licata Criticism - Answer -People felt he was 'racist' and didn't want the team
around.
Mariners Threat to Move (1995) - Answer -Led to a $410 million proposal for a new
stadium.
Mariners' Stadium Name - Answer -Safeco Field.
Seahawks Stadium Desire - Answer -Because the Mariners got one.
Seahawks Stadium (1997) - Answer -Qwest Field, costing $430 million.
Kingdome (2000) - Answer -It was demolished (blew up).
Sonics Funding Issues (2006) - Answer -They started losing funding, prompting David
Stern's involvement.
David Stern - Answer -A lawyer for the NBA, became commissioner in 1984.
David Stern's Tactic - Answer -He often threatened relocation for financially weak
teams.
KeyArena Issues - Answer -Smallest seating capacity among NBA arenas; even
sellouts wouldn't cover costs.
Sonics Reported Losses - Answer -$60 million.
Team's Loss Offset - Answer -State subsidy.
Howard Schultz - Answer -CEO of Starbucks that owned the Sonics.
, Sonics Sale to Investors - Answer -A group of investors in an LLC from Oklahoma
bought the Sonics and Storm from Howard Schultz.
Howard Schultz's Claim - Answer -Claimed the team sale violated the concept of 'public
trust.'
Schultz's Purchase Price (2001) - Answer -$200 million.
Team Valuation by Forbes (2006) - Answer -$234 million.
Schultz's Sale Price (2006) - Answer -$350 million.
Initiative 91 - Answer -A voter initiative that required a positive return on public arena
investments; passed with nearly 70% approval.
Argument Against Public Funding - Answer -Schools lacked enough money for books,
so funding shouldn't go to a team.
September 21, 2007 - Answer -Talks began about building a new arena or relocating
the team.
Clay Bennett - Answer -The buyer from Oklahoma; his plan was always to move the
team to Oklahoma City.
Aubrey McClendon Financial Loss - Answer -He lost nearly $2 billion.
Sonics Relocation Year - Answer -2008
Howard Schultz's Legal Action - Answer -He filed a lawsuit after the sale.
Funding Authorization - Answer -A special session was called to authorize funding or
Clay Bennett would be released from the final $30 million payment.
Self-Sustained Athletic Department - Answer -While it's ideal for financial
independence, this is not always the mandate.
Accounting in Athletic Departments - Answer -Accounting methods can be misleading,
especially regarding transfer pricing and reported losses.
Transfer Pricing in Sports Finance - Answer -The analysis, documentation, and
adjustment of charges made between related parties for goods, services, or property
use.
Revenue Reporting for Athletic Departments - Answer -Athletic departments are not
supposed to report revenue generated outside of sponsored sports.
