SPMA 1P91 Lecture Notes - Lecture 18: Financial Institution, Naming Rights, Profit Maximization

• School: Brock University
• Department: Sport Management
• Course: SPMA 1P91
• Professor: Nicholas Burton

Document Summary

Fi(cid:374)a(cid:374)(cid:272)ial ma(cid:374)age(cid:373)e(cid:374)t falls i(cid:374)to t(cid:449)o broad areas : determining what to do with your current money: ex. A health club produces a bigger- than-expected profit. Ideas: deter(cid:373)i(cid:374)i(cid:374)g ho(cid:449) to get (cid:373)ore (cid:373)o(cid:374)e(cid:455). Co(cid:373)(cid:373)o(cid:374)l(cid:455) : get customers to spend more (ex. Tickets, parking, concessions, souvenirs: borrow from a financial institution (ex. Banks lend money, but you must pay back with interest: ask the government for some (ex. Tax dollars can buy you a new stadium: seek new investors to provide it (ex. Leagues expand in part to receive expansion fees from new owners: form strategic alliances (ex. Corporate sponsors pay to associate with you; media pay to broadcast your games) Economic impact analyses can be very, very political. People wanting an event to happen may overestimate the economic impact; people against it might underestimate it. In big-ti(cid:373)e spe(cid:272)tator sports, t(cid:449)o (cid:271)ig (cid:272)osts are e(cid:373)plo(cid:455)ee salaries (cid:894)pla(cid:455)ers, (cid:272)oa(cid:272)hes, et(cid:272) (cid:895) a(cid:374)d facility costs/maintenance.