Pro Sports Team Revenue Analysis

Pro Sports Team Revenue Analysis

Gate Receipts – Simply put, how much money does my franchise make through the
sale of tickets to team-related events, including preseason, regular season, and
postseason contests.
Local & National Television Revenue – An increasingly large part of revenue for
franchises now comes from national television rights money which is split evenly among
teams in a league. Additionally, all leagues except the NFL allow their members to
negotiate individual local television deals that have also resulted in a major boost in
income for organizations.
Licensing Income – As we’ve seen in class, pro sports teams are willing to put their
brand on almost anything, with the majority of licensing revenue being sent to the
league’s licensing arm before all money is redistributed evenly to the teams. Also note
that some franchises have taken creative measures to bolster their licensing income
outside of the general even distribution.
Venue Related Revenue – As discussed at great length in class, franchises have taken
drastic measures to increase revenue beyond just ticket sales at their venues. This may
take hold in basic goods and services such as higher concessions and parking or more
complex actions such as selling personal seat licenses or building additional luxury
boxes.
For this QA, I’m looking for you to consider the four above sources of revenue for an indepth
analysis. You should also be able to at least note the following:
Overall Team Value – How much is this franchise worth at last calculation?
Total Revenue – How much did this franchise bring in in revenue during the last season
Operating Income – How much in profit or loss did this franchise make/lose during the
last season?
In terms of raw numbers, much of the above can be found on Forbes’ site which details
the income and expenses of each professional franchise in North America. You will
likely have to dig a little bit deeper though for things like local and national television
rights deals for your chosen franchise.
With this assignment though, I am NOT just looking for a rote list of numbers. Context is
everything, and while knowing the numbers is a start, the real meat of this assignment
will be your explanations as to why the numbers are the way they are. Understanding
economics within sport is more than just knowing numbers, it’s about recognizing and
explaining the reasons behind those numbers.
For instance, the Dallas Cowboys’ Venue Related Revenue is likely to be much higher
than other NFL teams’ due to the advantage of AT&T Stadium. By contrast, some
franchises will be weaker than others in certain areas. The Charlotte Hornets definitely
lag behind other NBA teams in local television revenue, partly due to market size and
partly due to the lack of success of the franchise.
Naturally, this assignment is going to take both a fair amount of outside research
through citable sources as well as a degree of critical thinking on your end for
explanations of the numbers. Remember to be detailed and accurate with your citations
in APA style. Please ask me if you have any questions in regards to how to cite
something.
Ideal minimum length for this assignment is around 1,000 words

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