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