EXam 2
Integrative Studies In Social Sciences 328 with Martin at Michigan State University
About this deck
By: Drew Stokas
Created: 2011-11-08
Size: 55 flashcards
Views: 109
Created: 2011-11-08
Size: 55 flashcards
Views: 109
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The highest federal personal income tax rate bracket currently is
35%
That highest tax rate bracket applies to taxable income over
200,000
Who was Bill Veeck?
•Bill Veeck – owner of Cleveland Indians and Chicago White Sox
•Saw unique loophole in tax laws –Argued that team can depreciate players
The Veeck Loophole
•In 1964 group bought Braves for $6.2M –Claimed team was worth $500k –Players worth remaining $6.1M •Declared players as depreciable assets –Straight-line depreciation over 10 years –Deduct $610k per year over ten years •At tax rate 50% - cut taxes by ~$300k/yr •Over 10 yrs had taxpayers pay half of purchase price of the team
The percentage of a premium seat cost at a college athletics event that is tax deductible as a charitable contribution is
80 %
Which statement reflects the construction of recent stadiums/arenas?
Most have shared financing, with the public subsidy at least 50%
Comerica Park, where the Detroit Tigers play, is
Owned by the City of Detroit and Wayne County
Statistical studies relating economic growth (income, jobs) in a region to the presence of a pro sports team finds
No relation
Four Facility Deals
public facility- Leased to teams.
publicly built- given to teams
joint public/private
private facility- public finance of associated infrastructure.
Which of the following four business groups has the largest economic impact in Michigan?
U of M
State & local government subsidies for sports teams was greater in the 1990s than the 1960s? True False
False
Net benefit from having a sports team in a city
· NFL-40 million (the most)
· NHL 26 million (The least)
Which of the following is most likely a true local economic benefit from a sports team or event?
Ticket purchases by residents of a nearby state
“Quality of life” benefits from a local sports team include
pride and reputation that may attract interest in the region.
BRITISH IDEAL?
Importance of Character- Elitist
Honor, honesty, fair-play, cordial hospitality
Emphasis not on winning, but how you played the game
American Football
Footbal originally resembled soccer, but then rules changed to make it more like rugby
The NCAA was originally formed to:
-the president wanted a set rules of play for college football to curb violence. The president banned certain plays
Flying wedge
Changed the rule of the forward pass
Athletes must go to school and no more paying players.
KNUTE ROCKNE
Notre Dame Coach with his famous quotes.
“We coaches believe the finest work of man is building the character of man”
“Win one of the Gipper” Key influence on American culture and how collegiate athletics was viewed
The final result of the 1940 football game between Cornell and Dartmouth best reflects the theme of which movie ?
Knute Rockne All-American
The Severn Sinners who paid their players
The Severn Sinners were: Boston College, Maryland, Villanova, U of Virginia, VMI, Virginia Tech, and the Citadel
The Sanity Code (1946)
Sought to ban financial “aid” to athletes. With all these rules they had no one to enforce them, so the NCAA was thought as week.
BATTLE OF TWO OPPOSING GROUPS IN NCAA 1952
One group wanted no scholarships, no spring practice, no advantages for the athletes.
and the others was the moderate reformers who wanted bowls games, spring practice and scholarships.
The term“student-athlete” was developed to:
keep athletes from filing for workman’s compensation
To keep athletes who were injured “on the job” from filing for “worker’s compensation. There students not employees
Cartel Power Restricted
Supreme Court (1984)
Supreme Court (1984)
granted INDIVIDUAL COLLEGES the property rights to their football telecasts - “one of the most important cases in sports history”
As a result of the 1984 Supreme Court case of the NCAA vs Board of Regents of Oklahoma and University of Georgia Athletic Association:
-the price paid by media providers (TV) for individual college games declined
TOTAL REVENUE per sports team
NFL(2010) $ 7.8 MLB(2010) $ 6.8 NCAA-Div. 1A(2009 -10) $ 5.4 NBA(2009-10) $ 4.0 NHL(2009-10) $ 3.0
Average Per School
Went up dramatically
1985 $13.8 1995 $22.1 2005 $36.8 2009 $45.7
Grew about TWICE as fast as economy
Men’s revenue is over 10 times Women’s revenue
MSU Revenue by sport
FOOTBALL $43,506,000 61 %
BASKETBALL M $15,592,000 21%
HOCKEY $ 2,276,000 3%
BASKETBALL W $ 778,000 1%
BASEBALL $ 161,000 .2%
The Revenues of Division I-A Schools :
increased at a faster rate in women’s sports than in men’s sports since 1985
School with the most TOTAL REVENUE 2009-10($Million)
1.TEXAS $143.6
2.ALABAMA $ 130.5
3.OHIO STATE UNIVERSITY $ 123.1
GENERATED REVENUE
- money that is directly the result of the athletic endeavor
- such as ticket sales, TV revenue
80% of avg total revenue
ALLOCATED REVENUE (Institutional Support)
- internal transfers of money to athletics from other parts of the university
- such as student activity fees
20% of avg total revenue
COLLEGIATE VS PROFESSIONAL TV
Collegiate sports have a more regional appeal.
Collegiate TV revenues more unevenly distributed
BOWL CHAMPIONSHIP SERIES (BCS)
Beyond control of NCAA
Over 80% of revenues to the 6 BCS conferences
NCAA BASKETBALL TOURNAMENT
MICHGIAN STATE VS INDIANA STATE 1979- The 24.1 rating and the 38 percent share for that game remain the highest for a college basketball telecast.
NCAA VS OTHER TV DEALS
NFL (FOX/CBS/ABC/ESPN) $2.2 Billion/yr
NBA (ESPN/ABC/TNT) $765 Million/yr
MLB (FOX/ESPN) $559 Million/yr
NCAA TOURNEY(CBS) $545 Million/yr
NASCAR (NBC/FOX) $433 Million/yr
NHL (OLN) 65 million
Collegiate Broadcast rights are negotiated by the NCAA for:
the Final Four basketball tournament
Labor Costs
Labor costs are the largest component of an athletic department’s budget
Coaches salaries dominate, particularly in basketball and football
Division 1 A Head coaches(2010) Football $1,360,000/year
Men’s Basketball - $1,300,000/year
Highest paid football coaches
ALABAMA $ 5,997,349
TEXAS $ 5,161,500
OKLAHOMA $ 4,375,000
Highest paid baskteball coaches
Duke 1
MSU 5th
Athletic EXPENSE GROWTH
Athletic Revenue real growth 5.6 %
Athletic Expense real growth 7.1 %
Schools profit
18% D1-A make a profit but the average is 9.4million deficit
|MSU make 3.4 million profit.
According to the institutionally supplied accounting data, NCAA institutions:
in the majority of Big 10 schools generate positive net revenues
NCAA Academic Standards
Sliding Scale.
Stiffens Penalties not just on individual player, but also on teams and entire programs – temporary loss of scholarships
APR
Consider MSU’s basketball team
52 possible points (13 players *2 points*2 semesters)
If one player is ineligible in spring – lose 1 point
APR=100*(51/52)=981
New APR Rules NCAA 10/2012
Minimum APR increased from 900 to 930
reduce hours of practice from 20 to 16 hours/week
NO POST SEASON ACTIVITIES coaching suspensions, financial aid reductions and restricted NCAA membership
The most recent reforms of academic standards by the NCAA:
make it easier to play as a freshman but harder to play in later years
Do athletes get an education?
On average athletes graduate at the same rate as non-athletes
The probability of a Division 1-A football or basketball player having a professional career is:
between 1 and 5 percent
The movie Hoop Dreams follows two basketball players in what city:
Chicago
Arthur Agee:
Went to a junior college and graduated H.S. and is not a motivational speaker.
William Gates:
played college basketball at marquette then quite for two seasons and came back his senior year. Graduated from college and HS.
About this deck
By: Drew Stokas
Created: 2011-11-08
Size: 55 flashcards
Views: 109
Created: 2011-11-08
Size: 55 flashcards
Views: 109
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis
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