Deck 9: Facility Financing

Question 1

Of the following bond types, which is issued by a public entity?

A) General obligation bonds
B) Auction-rate bonds
C) Lease revenue bonds
D) Revenue bonds
E) All of the above

Answer 1

E

Question 2

Which of the following is a bond issued by a municipality in which the revenue stream backing the payment of the bond is an actual lease, not just revenues from a source?

A) General obligation bonds
B) Auction-rate bonds
C) Lease revenue bonds
D) Revenue bonds
E) All of the above

Answer 2

C

Question 3

Which type of bond is a form of public finance paid off solely from specific, well-defined sources such as hotel taxes, ticket taxes, or other sources of public funding?

A) General obligation bonds
B) Auction-rate bonds
C) Lease revenue bonds
D) Revenue bonds
E) All of the above

Answer 3

D

Question 4

Historically, which bond was the most common method used for facility financing?

A) General obligation bonds
B) Auction-rate bonds
C) Lease revenue bonds
D) Revenue bonds
E) All of the above

Question 5

During which phase of facility construction were most sport facilities built with private dollars?

A) Phase 1
B) Phase 2
C) Phase 3
D) Phase 4
E) None of the above

Question 6

Which of the following is sold by either a government agency or a non-profit corporation set up to build a facility?

A) Certificate of participation
B) Tax increment financing
C) Contractually obligated income
D) Asset backed securities
E) None of the above

Question 7

During which phase of construction were stadiums built with a mix of public and private dollars? The stadiums usually only housed one major tenant, not two.

A) Phase 1
B) Phase 2
C) Phase 3
D) Phase 4
E) None of the above

Question 8

Here, a sport team may package together guaranteed or expected revenue streams and sell bonds based on the assets.

A) Certificate of participation
B) Tax increment financing
C) Contractually obligated income
D) Asset backed securities
E) None of the above

Question 9

During which phase of facility construction were sport facilities primarily financed using general obligation bonds?

A) Phase 1
B) Phase 2
C) Phase 3
D) Phase 4
E) None of the above

Question 10

When a team has signed multiyear contracts to receive money, these revenue sources can be used as collateral to get loans. This is referred to as __________.

A) Certificate of participation
B) Tax increment financing
C) Contractually obligated income
D) Asset backed securities
E) None of the above

Question 11

Which of the following is a source of governmental financing that, according to its proponents, is not paid for by the public?

A) Certificate of participation
B) Tax increment financing
C) Contractually obligated income
D) Asset backed securities
E) None of the above

Question 12

The sale of naming rights has little to do with getting a new stadium financed and completed.

Question 13

A recent trend has seen cities opt to leave the stadium management business and either allow the team or a third party (e.g., AEG or SMG) to manage the facility in exchange for a fee.

Question 14

When cities and other political entities invest in a new stadium, the team using that stadium will receive most, if not all, of the additional revenue generated within the stadium while paying for only part of its cost.

Question 15

Psychic impact is the emotional impact of having a local sports team.

Question 16

During Phase 2 of the construction of sport facilities, there was a significant decrease in the amount the public was willing to pay for construction costs.

Question 17

The geographic moniker chosen by a team (e.g., Chicago Cubs, Colorado Rockies) affects the amount cities are willing to pay to publicly finance their stadiums.

Question 18

Sin taxes are taxes on alcohol and cigarettes.

Question 19

Tourism tax revenues are the most common source of public financing for sport facilities.

Question 20

An indirect source of public financing is infrastructure improvements.

Question 21

Asset-backed securities are a public source of stadium financing.