SPORT BUSINESS PRACTICES FINAL
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS LATEST VERSION
2025/2026.
What does the business of sport have in common with traditional businesses and what is
different? - ANS -both are competitors that want to sell a product
-both have rules and regulations
-social issues similar
-in sports, the competitors must cooperate in order to be profitable and successful
-sports industry has found a way to avoud oayinf for labor
-in sport, businesses go beyond the competition
4 categories of major changes in the business of sport - ANS 1. Ownership Structure -
entertainment complexes, "disneyfication"
2. A new media world
3. Real Estate Management issues with stadium changes ex: Braves new park leading to new
community
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,4. League Policies- the way revenue is distributed between players & teams has changed
drastically
Disneyfication - what is the goal? - ANS -Sports team owners expanding their facilities to
capture pre and post game spending by fans, as well as sports teams serving as anchors for
larger real estate developments
-more amenities/entertainment (monopolize revenue streams around the stadium)
Media changes - ANS expanded broadcasting of sport and sharp revenue increases
*sports have become more than just selling tickets
ex: the increasing NFL broadcasting revenue
what does it mean that sports are "appointment-viewing" product? - ANS nobody is watching
the Super Bowl on Monday, they watch in the moment
Stadium changes - ANS -focus on single-purpose stadiums
-rise in luxury seating (rise in this has led to reduction in suites to create more options at various
prices)
-entertainment emphasis
How do changes in sports league policies & player rights impact competition and distribution of
revenue? - ANS -drafts, salary caps, luxury taxes
-revenue sharing between owners and with players
Giants & A's Case Study - Territorial Rights - ANS -A's want to move to a stadium to be built in
San Jose which is part of GIANTS territory
-Giants paid for the stadium without public funding so they feel they established themselves
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What functions do sport leagues serve for their clubs? - ANS 1. Structure/Ownership
2. Rules & regulations
3. Revenue sharing & Competitive balance
4. Draft order
5. Territorial Rights/Boundaries
Territorial Rights - ANS where a team is established
-leagues control location of teams to maximize the product
-helps teams avoid competition for local fans, media broadcasting, advertising revenue
-gives teams greater leverage when negotiating
Single-Entity Ownership Model , how does it work? - ANS -the league and all the teams in the
league are owned by a single ownership group
-the league employee paid by the league
*revenue is distributed EQUALLY
Distributed club ownership model - ANS -opposite of single entity
-each team has individual ownership
-individual club owners each possess independent property rights in their team
BUT agree to contractually share some rights
*most common structure in American Pro sports
How do league maintain competitive balance? - ANS -revenue sharing
-payroll caps (salary caps and luxury taxes)
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS LATEST VERSION
2025/2026.
What does the business of sport have in common with traditional businesses and what is
different? - ANS -both are competitors that want to sell a product
-both have rules and regulations
-social issues similar
-in sports, the competitors must cooperate in order to be profitable and successful
-sports industry has found a way to avoud oayinf for labor
-in sport, businesses go beyond the competition
4 categories of major changes in the business of sport - ANS 1. Ownership Structure -
entertainment complexes, "disneyfication"
2. A new media world
3. Real Estate Management issues with stadium changes ex: Braves new park leading to new
community
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,4. League Policies- the way revenue is distributed between players & teams has changed
drastically
Disneyfication - what is the goal? - ANS -Sports team owners expanding their facilities to
capture pre and post game spending by fans, as well as sports teams serving as anchors for
larger real estate developments
-more amenities/entertainment (monopolize revenue streams around the stadium)
Media changes - ANS expanded broadcasting of sport and sharp revenue increases
*sports have become more than just selling tickets
ex: the increasing NFL broadcasting revenue
what does it mean that sports are "appointment-viewing" product? - ANS nobody is watching
the Super Bowl on Monday, they watch in the moment
Stadium changes - ANS -focus on single-purpose stadiums
-rise in luxury seating (rise in this has led to reduction in suites to create more options at various
prices)
-entertainment emphasis
How do changes in sports league policies & player rights impact competition and distribution of
revenue? - ANS -drafts, salary caps, luxury taxes
-revenue sharing between owners and with players
Giants & A's Case Study - Territorial Rights - ANS -A's want to move to a stadium to be built in
San Jose which is part of GIANTS territory
-Giants paid for the stadium without public funding so they feel they established themselves
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What functions do sport leagues serve for their clubs? - ANS 1. Structure/Ownership
2. Rules & regulations
3. Revenue sharing & Competitive balance
4. Draft order
5. Territorial Rights/Boundaries
Territorial Rights - ANS where a team is established
-leagues control location of teams to maximize the product
-helps teams avoid competition for local fans, media broadcasting, advertising revenue
-gives teams greater leverage when negotiating
Single-Entity Ownership Model , how does it work? - ANS -the league and all the teams in the
league are owned by a single ownership group
-the league employee paid by the league
*revenue is distributed EQUALLY
Distributed club ownership model - ANS -opposite of single entity
-each team has individual ownership
-individual club owners each possess independent property rights in their team
BUT agree to contractually share some rights
*most common structure in American Pro sports
How do league maintain competitive balance? - ANS -revenue sharing
-payroll caps (salary caps and luxury taxes)
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
