Question 1

The MetLife Stadium in New York cost in excess of:&#10;A) 100 million dollars&#10;B) 500 million dollars&#10;C) 1 billion dollars&#10;D) 100 billion dollars

Accepted Answer

The MetLife Stadium is thought to have cost somewhere in the region of $1.6 billion and therefore answer C (in excess of one billion dollars) is the most accurate.

Question 2

Revenue generation and diversification are important for sports stadia because they:&#10;A) Need to make a profit to service loans&#10;B) Need to be able to pay the wages and other costs&#10;C) Need to maintain the facility in a high quality state&#10;D) All of the above

Accepted Answer

Servicing loans, paying operational costs and keeping a facility in good shape are all practical reasons why a sports facility should make a profit.

Question 3

A key reason for the public sector investing in a sports stadium is:&#10;A) We need to reward politicians for their selfless service&#10;B) New facilities can have a positive economic impact for the host community&#10;C) Other cities have got them&#10;D) Local people want to have a professional team sports franchise in the city

Accepted Answer

New facilities can have a positive economic impact on a host community both during the construction phase and in the operating stage. These impacts include jobs and the spending of out of town visitors who are attracted to the area.

Question 4

On approximately what percentage of days in a year would a Premier League football club in England have a home match?&#10;A) 2.5% to 5%&#10;B) 5% to 10%&#10;C) 12.5% to 15%&#10;D) 20% to 25%

Accepted Answer

At between 19 and 35 home games per season, the proportion of days in a year on which an English Premier League team will have a home match is at least 5% (19/365) and even in the most successful season would not exceed 10%.

Question 5

Revenue generated per seat per match is a measure of selling:&#10;A) Time&#10;B) Space&#10;C) Time and space&#10;D) None of the above

Accepted Answer

Revenue per seat per match is a measure of both space (a seat) and time (an event, or match). It is a useful performance measure to see how efficiently the asset of a seat is being used to generate revenue from matches and events.

Question 6

Which customers spend the most at major sports events?&#10;A) Regular season ticket holders&#10;B) Casual visitors&#10;C) Away supporters&#10;D) Corporate hospitality users

Accepted Answer

Different market segments have differing spending patterns. However, by some considerable margin the most valuable customers, in the sense of those who spend the most on their stadium experience, are corporate hospitality users.

Question 7

Having a visitor attraction, such as a museum, at a stadium is a good example of:&#10;A) Diversification&#10;B) Generating income when there is no core product taking place&#10;C) Having a confused business model&#10;D) Both a and b

Accepted Answer

Having a visitor attraction such as a museum at a stadium is an example of diversification (i.e. something different to the core product) and therefore an opportunity to generate revenue when there is no core product on offer.

Question 8

People like to stage celebratory events at iconic sports stadiums because:&#10;A) They are rarely in use and are therefore cheap&#10;B) The strong emotional attachment they feel to a team or stadium&#10;C) They won't disturb the neighbors&#10;D) There is the off chance they might see their sporting heroes

Accepted Answer

Supporters often feel a strong sense of emotional attachment to their team and / or the stadium in which their team plays. This emotional attachment forms the basis for venues diversifying into events such as weddings and parties for which premium prices can be charged.

Question 9

What are the advantages of using digital technology in the management of sports facilities?&#10;A) It can help to drive down costs&#10;B) It can help to improve the customer experience&#10;C) It can help to increase revenue&#10;D) All of the above

Accepted Answer

Digital technology can help to drive down costs such as by using e-tickets rather than paper tickets; it can help to improve the customer experience by enabling greater interaction with customers, for example sharing social media posts; and it can help to drive up revenues by facilitating an at seat service for food and beverages.

Question 10

Which is the most lucrative form of sponsorship for a sports stadium?&#10;A) Facility naming rights&#10;B) Perimeter advertising&#10;C) Advertising on big screens&#10;D) Seat sponsorship

Accepted Answer

The top tier of sponsorship is facility naming rights, such as the £250m dollar investment in calling the home of the Atlanta Braves "SunTrust Park". This is a 25-year deal worth $10m per year. Naming rights are valuable because they are extremely high profile and not subject to the same forms of 'clutter' from which other forms of sponsorship suffer.

Question 11

Explain briefly the importance of space and time in the context of managing a sports stadium.

Accepted Answer

The answer of Explain briefly the importance of space and...

Question 12

Compare in broad terms the difference between high end corporate hospitality and the cheapest season ticket at an English Premier League ground according to the headings in the table below.&#10;

Accepted Answer

The answer of Compare in broad terms the difference between...

Question 13

Compile a list of all the non-core product uses that you know about for a stadium of your choice.

Accepted Answer

The answer of Compile a list of all the non-core...

Question 14

Thinking ahead, what are the innovations you envisage taking place in sports facilities in the future?

Accepted Answer

The answer of Thinking ahead, what are the innovations you...

Deck 10: Revenue Generation and Diversification