Briefly describe the key determinants of demand for professional sport
3. Quality of Viewing (facility)
4. Characteristics of the contest (e.g. history significance)
5. Supply Capacity
Name two reasons to do a feasibility study?
1. Establish Financial Feasibility
2. Formulate the Optimum Concept
3. Develop Management and Marketing Guidelines
4. Obtain Finance
Explain the "concept market appeal"
What are you actually selling? Not just the product the actually experience e.g. not just a sporting match you are actually selling a live entertainment product
Revlon - not perfume you are selling HOPE
How do you control the visitor experience?
Can be controlled by engaging fans e.g. Twitter hastags, Kiss cam and half-time entertainment.
Teams want fans to move from passive watchers to active supporters than more repeat visits a fan has to a team the more engaged they will become.
What is meant by term "design day"? Why is it critical in terms of potential financial feasibility?
Generally a busy day not maximum capacity. Sporting grounds designed to meet this type of day. Feasibility assessment based on what stadiums design days are not maximum capacity as that would be unrealistic.
Name the two broad approaches that can be taken when undertaking an economic impact study - why are their differences important?
1. Conservative Approach - only measure new dollars into economic e.g. non residents only.
2. Liberal Approach - measures all money spent in the economy (residents and non-residents) not a true reflection of impact
Why is the size of the impact study area important?
By defining the area you can indicate what injections and leakages are to the economic area.
The small the study area is easier to track. Gold Coast < Queensland
What are two main data sources used in an economic impact study?
1. Survey Method (Primary Data Collection)
2. Non survey Method (Secondary Data Collection)
Depends on Resource available (time, money and data)
What and how you want to report (& to whom?)
Summarise the first two categories of the "Event Typology"
1. Type A - Irregular, one-off, major international spectator events generating significant economic activity & media interest e.g. Olympics
2. Type B - Major spectator events, spectator events generating significant economic activity & media interest - part of annual domestic cycle e.g. NRL Grand Final and Cricket Test Matches
Summarise the last two categories of the "Event Typology"
3. Type C - Irregular, one-off, major international spectator events generating limited economic activity and media interest - part of annual domestic cycle e.g. IAAF Grand Prix; regional championships
4. Type D - Major competitor events, generating limited economic activity - part of annual cycle of events e.g. national championships
What are the differences between Ex Ante & Ex Post research on event impacts?
Ex Ante (Before)
- Often misleading - Results not reliable - Incentives to win bids (policy makers to overstate benefits) - Based on projections
Ex Post (After)
- Most reliable - Based on facts/figures - Neutral researchers - Based on what actually happened not projections (Ex Ante)
Outline the key roles played by labour in the professional sport context
1) Large cost
2) Creates the sport contest
3) Outcome dependent on labour
4) Inherent component of utility (satisfaction) sought by fans
Outline the two main mechanisms used by owners to protect against 'shirking' behaviour by players
1. Monitoring - nothing is more closely monitored than player effort and outcomes (Doctors/Physios monitoring "injuries" 2. Incentive - Compatible Mechanisms - player economic welfare can be tied to outcomes enjoyed by owners - "contingency payments" that reward players are common - bonuses for state of origin matches and grand final wins
What are the concepts that drive demand?
1. Ability to provide cost effective access to profitable target market
popularity of the sports league
What elements might be part of a collective bargaining agreement?
issues common to all players
channels for addressing grievances
What is the economic welfare approach to study event impact?
Includes externality effects (wider social & environmental costs/benefits)
Has more than one dimension: use value - value placed on actual or intended use of investment
non-use value - value placed on the existence of investment
Want to see the other 34 Flashcards in FINAL EXAM?JOIN TODAY FOR FREE!