SPMA 1P91 Lecture Notes - Lecture 14: Financial Institution, Naming Rights, Economic Impact Analysis
16 May 2016
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Document Summary
Finance and economics in the sport industry- lesson 14. Financial management falls into two broad areas: determining what to do with your current money. A health club produces bigger then expected profit. Expand the business (relocate to a bigger facility) t make even more money. Renovate existing space (to make it more attractive to woo new customers, to make even more money) Give raises to employees (who are happier, then work harder, making you more money) Do something else: determining how to get more money. Banks lend money, but you must pay it back with interest. 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) Crop sponsors pay $ to associate with you; media pay $ to broadcast your games) Our society doesn"t have the resources to satisfy everyone"s wants and needs. Economics is the study of how people deal with scarce resources.
