Question

1. How does a professional sports team generate revenue? [Sports economists typically put these into the following categories: Gate Revenue (ticket sales), Broadcasting Revenue (T.V. and radio), Licensing Revenue (clothing sales, signage, etc.), and Stadium Revenue (parking, concessions, luxury suites, etc. The largest costs for all sports teams are player salaries and typically represent about 50% of the team’s costs; the remaining costs include travel, marketing, administration (league and team) and venue expenses; in some sports, like baseball, player development is also a large cost.]

3-5sentences using simple day to day words

Answer 1

A professional sports team makes money in several ways. They earn gate revenue from ticket sales when fans attend games. Broadcasting revenue comes from TV and radio deals that show their games. They also make money through licensing revenue by selling merchandise like clothing and team gear. Finally, stadium revenue includes income from things like parking fees, food and drinks sold at the games, and luxury suites for special guests. Their biggest expense is player salaries, which usually take up about half of their costs.