Sport Management

Chapter 14 Summary This chapter is actually really interesting because of its connection with finance and economics in the sport industry. Is important because economics are a key in a successful life. This chapters involves information about current financial situation of professional and college athletics, the economics of sport and the overview of financial management. Sources of revenues and expenses for sport organization also what this chapter focuses on. Sport is one of the most diverse industries in the business world that we live in. It is composed of a variety of subdivisions such as professional sports, collegiate athletics, facility management, health and fitness, and sporting goods. With that in mind, is harder to measure the overall economic size of the industry. One part of the sport industry that has seen a huge development over the past ten years is professional sport, for example NFL and NBA. Sport industry is unique in a lot variety of areas. Professional sport teams are all members in some league and share certain revenue sources and expenses but each team is generally operated as a separate entity. Some other sport leagues that, have chosen a single-entity structure. Single-entity structure give league members the opportunity to work together and make decisions focusing on what is good for the league instead of the team. The conclusion is that we do not know the long term success of single entity structure but is becoming really popular for sport leagues. College financial situation in college athletics has been highly developed but they also face a serious issue of rising costs, even in Division I level. Statistics and studies show that most college athletics departments produced revenues that exceeded costs. They face a difficult financial future because the costs increase in areas such as team travel, equipment, coaching salaries, and grants in aid. Emphasis based on the increase of revenues have also