STHM 1211 Lecture Notes - Lecture 11: Revenue Sharing, Steve Ballmer, Tax Shelter
• How does spectator sport make money?
o Investment/Appreciation
▪
o Lots of people u lots of ues. I feel like I paid a pie I’ eited aout. It
oiousl as a pie that as egotiated ad I feel e good aout it. It’s ot a
heap pie, ut he ou’e used to lookig at teh opaies ith huge isk,
o eaigs ad huge ultiples, this does’t look like the aziest thig I’e ee
auied…. And compared to some of the public traded companies, there are
great companies out there like Amazon with absolutely no earnings and a huge
market caps and lots of risk. There’s uh less risk. There’s real earigs i this
usiess. There’s real upside opportuity.
o --- Steve Ballmer on purchasing the Clippers
o Tax shelter
o Depreciation
o Revenue sharing
o Ticket sales
o Venue revenues
o Media revenues
o Licensing fees for team merchandise
o Making to playoffs
o Naming rights
o Only 24 FBS schools generated more revenue than they spent in 2014, according
to the NCAA Revenues and Expenses of Division I Intercollegiate Athletics
Programs Report.
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