MS. HELTON 02/13/12 GLOBAL ISSUES The Economic of Pro Sports

What is a profit? Profit = Total Revenue-Total Costs How do pro sports teams earn revenue? Name as many ways as you can think What are the costs of pro sports teams? Name as many ways as you can think

Group Activity In your groups, work together to find the answers to the worksheet You will either have teams from the NBA, MLB, or NFL Find the 5 teams with the highest revenue, operating income, and current value You have 2o minutes to complete this assignment-be prepared to share you findings with the class

What Factors Affect Profitability? Size of city team is located Rules of the game  Tickets in NFL are shared 60/40-home teams gets 60% of revenue and the other 40% goes to the rest of the league  Luxury boxes revenue is NOT shared-how would this affect the value of the teams?  MLB- Teams have to share national broadcast revenues, but not local broadcast revenues

Comparisons Most valuable franchises are in the NFL-why? Small market vs. big market  Minnesota Twins are considered a small market team, but not the Minnesota Vikings-how is this possible?