How to finance a football stadium - Exam
  • 1. What is a common source of public funding for stadiums?
A) Sales tax
B) Raffle winnings
C) Yard sales
D) Personal savings
  • 2. Which of these is a potential private funding source?
A) Asking strangers for money
B) Naming rights
C) Public bake sale
D) Government grants only
  • 3. What does 'PSL' stand for in stadium financing?
A) Professional Soccer Location
B) Personal Seat License
C) Public Stadium Loan
D) Private Sports League
  • 4. Why are revenue bonds often used for stadium projects?
A) Repaid with stadium revenue
B) Paid with the team owner's personal money
C) Paid with personal income taxes
D) Covered by foreign aid
  • 5. What is a potential drawback of public financing?
A) Immediate profit for taxpayers
B) Guaranteed team success
C) Taxpayer burden
D) Lower ticket prices
  • 6. What is meant by 'economic impact' studies in this context?
A) Team's win-loss record
B) Rainfall probability
C) Projected financial benefits
D) Uniform design
  • 7. What is an advantage of private financing?
A) Always guaranteed success
B) Reduces taxpayer risk
C) Instant public approval
D) No interest to pay
  • 8. What type of bond is secured by the stadium itself?
A) Revenue bond
B) Zero-coupon bond
C) General obligation bond
D) Mortgage bond
  • 9. What is a TIF district?
A) Television Income Fund
B) Ticket Increase Fund
C) Team Improvement Facility
D) Tax Increment Financing district
  • 10. Who typically benefits directly from stadium luxury suites?
A) General public
B) Other football teams
C) Stadium employees
D) Team owners
  • 11. Which is a possible impact of a new stadium on surrounding areas?
A) Increased property values
B) Reduced traffic
C) Decreased rent prices
D) Lower crime rate
  • 12. What is one way to mitigate the financial risks of building a stadium?
A) Ignoring cost overruns
B) Unlimited budget
C) Phased construction
D) Building it in secret
  • 13. What is a potential challenge when seeking corporate sponsorships?
A) Economic downturns
B) Guaranteed sponsorships
C) Unlimited sponsor interest
D) No need for marketing
  • 14. What is a potential use of stadium revenue beyond debt repayment?
A) Team operations
B) Personal yachts for owners
C) Feeding stray cats
D) Unrelated government projects
  • 15. What is a characteristic of a well-structured financial plan?
A) Hiding financial information
B) Overly optimistic estimates
C) Ignoring potential risks
D) Realistic projections
  • 16. What is a risk associated with relying on future ticket sales?
A) Predictable game outcomes
B) Guaranteed sell-outs
C) Team performance
D) Constant fan enthusiasm
  • 17. What is a potential benefit of a multi-purpose stadium?
A) Higher maintenance costs
B) Unused facilities most of the year
C) Diverse revenue streams
D) Limited event options
  • 18. What is an example of a sin tax?
A) Tax on books
B) Tax on education
C) Tax on alcohol
D) Tax on vegetables
  • 19. What does the term 'opportunity cost' refer to?
A) Alternative uses of funds
B) Free opportunities
C) Unplanned expenses
D) The cost of being optimistic
  • 20. What is the role of an underwriter in bond financing?
A) Guarantees ticket sales
B) Helps sell the bonds
C) Designs the stadium
D) Plays on the team
  • 21. What is a feasibility study?
A) Assesses project viability
B) Random guess
C) Marketing brochure
D) Legal document
  • 22. What can cost overruns lead to?
A) Guaranteed stadium success
B) Higher profits
C) More ticket revenue
D) Increased debt
  • 23. What does a stadium's location impact?
A) Accessibility
B) Player salaries
C) Team's performance
D) Concession stand prices
  • 24. What is one way to increase stadium revenue?
A) Stop selling food and drinks
B) Offer premium experiences
C) Ignore customer feedback
D) Reduce ticket prices drastically
  • 25. What is the importance of public support?
A) Easier funding
B) Guarantees team success
C) Irrelevant to funding
D) Automatic project approval
  • 26. What happens if revenue projections are inaccurate?
A) Financial difficulties
B) Nothing
C) Increased profits
D) Automatic bailout
  • 27. Why is community engagement important?
A) Build support
B) Not important
C) Slows things down
D) Confuses the project
  • 28. What is one challenge with long-term financial projections?
A) Never wrong
B) Easy to predict
C) Economic uncertainty
D) Always accurate
  • 29. What is a purpose of a reserve fund?
A) Cover unexpected expenses
B) Unnecessary expense
C) Increase salaries
D) To buy more land
  • 30. What is an example of ancillary stadium revenue?
A) Building construction
B) Property taxes
C) Player salaries
D) Concerts
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