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How to finance a football stadium - Exam
Contributed by: Frost
  • 1. What is a common source of public funding for stadiums?
A) Personal savings
B) Sales tax
C) Yard sales
D) Raffle winnings
  • 2. Which of these is a potential private funding source?
A) Public bake sale
B) Naming rights
C) Asking strangers for money
D) Government grants only
  • 3. What does 'PSL' stand for in stadium financing?
A) Professional Soccer Location
B) Public Stadium Loan
C) Private Sports League
D) Personal Seat License
  • 4. Why are revenue bonds often used for stadium projects?
A) Covered by foreign aid
B) Paid with personal income taxes
C) Paid with the team owner's personal money
D) Repaid with stadium revenue
  • 5. What is a potential drawback of public financing?
A) Guaranteed team success
B) Immediate profit for taxpayers
C) Taxpayer burden
D) Lower ticket prices
  • 6. What is meant by 'economic impact' studies in this context?
A) Rainfall probability
B) Projected financial benefits
C) Team's win-loss record
D) Uniform design
  • 7. What is an advantage of private financing?
A) Always guaranteed success
B) Instant public approval
C) Reduces taxpayer risk
D) No interest to pay
  • 8. What type of bond is secured by the stadium itself?
A) Mortgage bond
B) General obligation bond
C) Revenue bond
D) Zero-coupon bond
  • 9. What is a TIF district?
A) Team Improvement Facility
B) Tax Increment Financing district
C) Ticket Increase Fund
D) Television Income Fund
  • 10. Who typically benefits directly from stadium luxury suites?
A) Stadium employees
B) Other football teams
C) Team owners
D) General public
  • 11. Which is a possible impact of a new stadium on surrounding areas?
A) Increased property values
B) Reduced traffic
C) Lower crime rate
D) Decreased rent prices
  • 12. What is one way to mitigate the financial risks of building a stadium?
A) Unlimited budget
B) Building it in secret
C) Phased construction
D) Ignoring cost overruns
  • 13. What is a potential challenge when seeking corporate sponsorships?
A) Unlimited sponsor interest
B) Economic downturns
C) Guaranteed sponsorships
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) Ignoring potential risks
B) Realistic projections
C) Hiding financial information
D) Overly optimistic estimates
  • 16. What is a risk associated with relying on future ticket sales?
A) Predictable game outcomes
B) Constant fan enthusiasm
C) Team performance
D) Guaranteed sell-outs
  • 17. What is a potential benefit of a multi-purpose stadium?
A) Higher maintenance costs
B) Diverse revenue streams
C) Unused facilities most of the year
D) Limited event options
  • 18. What is an example of a sin tax?
A) Tax on vegetables
B) Tax on alcohol
C) Tax on books
D) Tax on education
  • 19. What does the term 'opportunity cost' refer to?
A) Alternative uses of funds
B) The cost of being optimistic
C) Unplanned expenses
D) Free opportunities
  • 20. What is the role of an underwriter in bond financing?
A) Plays on the team
B) Designs the stadium
C) Helps sell the bonds
D) Guarantees ticket sales
  • 21. What is a feasibility study?
A) Assesses project viability
B) Marketing brochure
C) Random guess
D) Legal document
  • 22. What can cost overruns lead to?
A) More ticket revenue
B) Increased debt
C) Guaranteed stadium success
D) Higher profits
  • 23. What does a stadium's location impact?
A) Team's performance
B) Player salaries
C) Concession stand prices
D) Accessibility
  • 24. What is one way to increase stadium revenue?
A) Stop selling food and drinks
B) Ignore customer feedback
C) Reduce ticket prices drastically
D) Offer premium experiences
  • 25. What is the importance of public support?
A) Automatic project approval
B) Irrelevant to funding
C) Easier funding
D) Guarantees team success
  • 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) Not important
B) Slows things down
C) Confuses the project
D) Build support
  • 28. What is one challenge with long-term financial projections?
A) Always accurate
B) Never wrong
C) Easy to predict
D) Economic uncertainty
  • 29. What is a purpose of a reserve fund?
A) To buy more land
B) Increase salaries
C) Cover unexpected expenses
D) Unnecessary expense
  • 30. What is an example of ancillary stadium revenue?
A) Concerts
B) Player salaries
C) Property taxes
D) Building construction
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