Sports Regulation, Contracts, and Strategic Finance Lecture Review

Vocabulary flashcards covering sports industry regulation, contract law, facility financing, brand strategy, and innovation categories.

Sanctioning bodies

Organizations such as the NHL, NFL, NBA, or NCAA that oversee rules and policies within a particular sport to manage image and create brand awareness.

Sherman Trust Act- 1890

A law that allowed professional leagues to maintain control over their franchises and dictate the locations where they do business.

Unengaged fans

The lowest tier on the audience engagement ladder representing individuals who are unaware and uninterested, often reached through mainstream news or family.

Casuals

Fans who randomly watch games, catch updates, and are generally aware of playoff contenders but do not seek team performance frequently.

Watchers

Socially driven fans who watch games on TV and rarely attend in person, relying on media for performance updates.

Interactives

Performance-driven fans who watch all scheduled games, frequently attend home games, and are active in media like radio call-ins or fantasy sports.

Avid fans

Fans who attend every home game, are opinionated on management, and maintain year-long engagement including spending on memorabilia.

Super fans

Priority targets who identify strongly with the brand image and can afford all game types, often selecting work situations in their favor.

Mutual assent

A valid contract element demonstrated by offer and acceptance where all parties agree on all material facts of the contract.

Consideration

The value given in exchange for a promise, such as performance on the field or a promise to refrain from doing business with a competitor.

Proper subject matter (Legality)

A contract element requiring that the agreement does not violate the statute of a public policy.

Competence of the parties (Capacity)

The requirement that parties involved in a contract are valid in age and mental state, not intoxicated or under 18 years old.

Rollover provision

A coach contract clause where their status and essence are renewed for an extension based on fulfilling criteria in the initial contract.

Base Salary

The bulk of money earned by being on a team roster, usually disbursed in weekly installments as long as the player is not cut.

Skilled guarantees

Contractual protection that prevents a player from being released specifically due to not having the requisite skill the team expected.

Cap guarantee

A clause that protects a player from being released solely so a team can get under the salary cap to sign other players.

Signing Bonus

An up-front guarantee a player receives upon signing, which can be paid in a lump sum or spread out (prorated) over up to five years.

Prorated bonus

A signing bonus spread over the contract; if a player is cut, the team must pay the remaining amount instantaneously.

Roster bonus

Money paid for being on the roster or active roster at a specific date specified in the contract.

Option bonus

A bonus payment triggered at a future point in time or at a later date defined in the contract.

Workout bonus

A flat amount agreed upon for fulfilling off-season workouts, usually allowing for 5 guaranteed absences.

Likely to be earned (LTBE)

Incentives based on what a player achieved in the previous season; these are charged against the following year's salary cap.

Not likely to be earned (NLTBE)

Incentives set at benchmarks a player did not reach previously; these are charged against the current year salary cap.

Dead Cap

The money a team must pay out to a cut player for all owed guarantees, which acts as the best way for players to protect themselves from being released.

Capital Projects

Long-term investments requiring large cash outlays to increase and improve a team's valuation, such as building a new venue.

Retained Earnings

Net profits that are reinvested into the organization by board vote rather than being distributed to shareholders as dividends.

Restricted Gift

A donation where the donor designates exactly where the money must be allocated within a university or college.

Unrestricted Gift

A donation that provides flexibility for the university to choose the allocation based on immediate needs.

Matching Gifts

Corporate social responsibility programs where a company provides additional funds on top of what an employee originally donated.

Endowed Gifts

An investment fund where the principal remains untouched and only the interest earnings are spent.

Maturity

The fixed date on which a borrower must fulfill the obligation of paying back both the principle and the interest on a loan or bond.

Municipal Bonds

Bonds issued by state or local governments that offer federal income tax exemptions and lower interest rates to benefit the public.

General Obligation Bonds

Debt secured by various channels of taxation such as property taxes or sales taxes on residents living within certain county lines.

Revenue Bonds

Money borrowed that is repaid through specific operating revenue frameworks and does not require voter approval.

Hotel occupancy tax

A specialized tax designed to collect revenue from out-of-town residents utilizing local facilities.

Excise tax

A general tax on goods that typically excludes food for home and prescription drugs.

Possessory tax

A tax applied when a non-taxable entity's space is leased, rented, or used by multiple tenants.

Sin tax

A special tax applied to items like alcohol and cigarettes.

Securitization

The use of contractually obligated income, such as naming rights deals, as collateral for debt service to fund construction.

Integrated Marketing Communications (IMC)

The coordination of tools like advertising, PR, and digital media to ensure seamless, synergistic messaging across multiple platforms.

Communication Fog

A situation where the authenticity of a message is lost or tarnished between the brand's image and its promise.

Hope Marketing

Investing in platforms or trends without knowing the conversion rate or how successful the investment will be in convincing an audience.

Pull Strategy

The initial educational phase of marketing that uses vehicles like QR codes on cups to appeal to end users and gain leads.

Push Strategy

The persuasion phase aimed at obtaining action or closing a sale through wholesalers, retailers, and salespeople.

Brand marks

The visual elements and symbols that serve as visual identification for a company or product.

Brand Characters

Elements that add dimension to brand identity and shape personality to influence attitudes and heighten the brand profile.

Creativity

The initial conceptual phase of the innovative process focused on generating ideas.

Innovation

The second phase of the process focused on implementing and executing an actual idea.

Disruptive Innovation

Small-scale experiments from market entrants that drive low-cost business models or new segment offerings.

Survival

An economic objective used to avoid market decline by focusing on debt ratios, equity, and net debt coverage.