9.6 WS7 Revenues and Costs Worksheet

9/6 Revenues and Costs Worksheet Instructions Answer the questions in this worksheet as you watch the videos or attend the lectures. Upload the worksheet when you have completed the questions. You can keep this worksheet for yourself and use it to study or when completing the homework assignments. Grading You will receive full grades so long as you make a genuine attempt to answer the questions. Even if you get an answer wrong, you will get full marks, so long as you made a genuine attempt. Think of this as a chance to practice your new knowledge... and have fun! TEXAS RANGERS Questions 1. Download the financial statements of one of the sports teams listed on Canvas. a. List the revenue sources that make up the total revenues for the team i. Net Ticket Sales ii. Television and Radio iii. Concessions iv. Stadium Suite Rentals v. Parking vi. Advertising vii. Merchandise Sales viii. Other, net b. List the costs or expenses that make up the costs for the team i. Player Salaries ii. Trade Settlement Costs iii. Other direct team costs iv. Player development v. Scouting vi. Ball Park Operations vii. Ticket Office viii. General and Administrative ix. Marketing x. Merchandise cost of sales xi. Parking xii. Revenue sharing, net xiii. Amortization of players contracts xiv. Loss from player transactions, net xv. Loss on impairment of intangible assets xvi. Depreciation and amortization nonplayer
xvii. Total operating expenses xviii. Operating income (loss) c. What is the highest revenue source? i. Television and Radio d. What is the highest cost? i. Player salaries e. Calculate the net profit margin ratio for as many years as you have data. i. 2009 1. -7.15 ii. 2008 1. -6.544 f. Does the team have a healthy profit margin ratio? i. No g. Are there any changes in the profit margin ratio over the years you have analyzed? Why might that be? Hint: is the change in profit margin due to a change in revenues or costs or both. i. The profit margin decreased from 2008 to 2009. This is due to the fact that the expenses were greater in 2009. 2. Based on what you know about the sources of revenues for different professional sports teams, in what league is a team most likely to move from a larger market to a smaller market? Are there any leagues where teams are unlikely to move to smaller markets? a. A team that needs a better deal would likely move to a smaller market because they have a higher chance of receiving better revenue and profits.
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