SPT 620 Module 3 Journal

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Southern New Hampshire University *

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620

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Business

Date

Apr 3, 2024

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docx

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4

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1 Module 3 Journal Tim Nicely Southern New Hampshire University SPT 620: Finance and Economics of Sports March 17 th , 2024 Economic Choices- It appears the most significant choices that have been made relating to revenue come from television deals and conference alignment. Many programs are benefiting from being in conference with large Television deals. The SEC has the largest of those deals and thus is far and away the most financially successful conference while the PAC-12 had underwhelming
2 television performance which resulted in them being the only Power-5 conference to operate at a loss (Berkes, 2016) . Sources of Expenses and Capital Funding- There are many expenses that go into maintaining a football program and trying to run a program as large as most Power-5 schools can become very expensive. In addition to operating expenses, staff salaries, and marketing costs that all sports organizations have, College programs also have additional expenses in the form of scholarships, meal programs, and housing for its student-athletes. Funding these programs can come from lots of areas such as ticket sales and revenue sharing from their conferences, but many of the more successful programs are also able to pull in massive amounts of funds from boosters. In this article we see Texas A&M being far and away the most profitable school, with the largest difference being the influx of donations related to the renovation of their stadium (Berkes, 2016). Average Revenue, Expenses, and Profit Numbers- For fans of college football, it is likely no surprise the SEC came in with the highest profit of all the Power 5 conferences. The SEC had over $122.5 million in average revenue and just over $105.6 in average expenses, leaving them with just under $17 million in average profit. The Big Ten had the next highest average revenue of the Power 5 schools at just under $108.5 million, but also had the highest average expenses at over $106.6 million, leaving them with just under $1.9 million in average profit, putting
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