SM Midterm Part 2

Flashcards reviewing travel sports economics, budget strategies, extreme competition event expenses, and government sports funding goals based on lecture notes.

What are travel teams?

Youth teams where athletes often train year-around in one specific sport.

What percentage of U.S. families are estimated to spend over $12,000 a year on youth sports per child?

Nearly $20\%$ of U.S. families.

What percentage of dedicated parents who spend heavily on youth sports hope their investment leads to a college scholarship?

$67\%$ of dedicated parents.

What percentage of dedicated parents think their child athlete will make it to the Olympics or become a pro?

$34\%$ of dedicated parents.

What warning signs often go unnoticed by parents focused on their child becoming a star when fraudsters target travel sports?

Cancelled practices and promises of equipment that they do not get.

What is the youth sports market projected to reach by 2026?

It is projected to reach $77.6\text{ billion}$ by 26.

How can a travel team maximize its revenue?

Start with a financial plan, which is always outlined in a budget.

What is the primary role of a travel team treasurer?

Serving as the accountable person tasked with monitoring money, developing and implementing a budget for the team, managing the team's account and team fees budget, and collecting team funds.

What basic budgeting strategies should a travel team treasurer explore when establishing a budget?

Creating a budget with enough of a buffer so parents do not need to be approached again for money, making sure the first payment is a higher amount for sufficient cash flow, having a contingency fund, keeping records of everything, and making the budget available.

What specific costs are involved in playing travel soccer?

Coaching salaries, field fees, state or league fees, referee expenses, team equipment, tournament fees, uniforms, and travel expenses.

Where is revenue derived from for a travel sports team?

From parents paying membership and team fees.

How did the extreme competition category evolve over time?

It started with triathlons, then ultramarathons, and nowadays includes CrossFit, Tough Mudder, Spartan, and American Ninja Warrior.

In an example event like Tough Mudder with $10,000$ participants paying $50 each, what is the total revenue generated?

$500,000$ in revenue.

What expenses must an extreme competition event like Tough Mudder pay out of its total revenue?

Cost of the race course, advertising, personnel, and legal counsel.

Why is analyzing income without examining expenses dangerous in extreme sports management?

Income can be misleading; analyzing income without examining expenses will lead to failure.

What hidden costs can occur if someone is injured during an extreme competition event?

Legal fees, increased insurance premiums, and money spent on litigation rather than planning for future events.

Who are the largest funders of sport around the world?

Governments around the world.

What conflicting pressures do governments face regarding funding for sport?

More pressure on governments to cut expenditures while simultaneously trying to combat obesity, where sport can be a crucial part of such efforts.

What are the primary goals and plans for government spending on sport?

To help win medals, address health-related concerns, and tourism initiatives.