Transcript Economics of the Sports Industry

BRO TIME
1. Read the BRO Time Article
about the Billy Ripken Card
2. Answer the questions on the
back
3. When you are done place your
pen or pencil down, so Ms.
Guerrero knows that you are
done with the assignment 
Economics of the
Sports Industry
Sports, Entertainment and Recreation
Marketing
The Ripken Rollercoaster:
Answers
1. Dealers could not afford the high priced
2.
3.
4.
5.
6.
7.
cards (not enough available cash)
Supply was high initially and low as
hysteria hit
Card shops
Price
No, levels out at $30-$75
Buy: Day released
Sell: Next afternoon/third day
What is Economics
O The study of the
choices and
decisions that
affects the way a
company makes,
distributes, and
uses goods and
services
O Free Enterprise
System: a system
that encourages
individuals to start
and operate their
own businesses in a
competitive market,
without government
involvement
O (when a company’s
motivation is profit)
Supply and Demand
O Supply
O The amount of
goods producers
are able to make
and sell
O Demand
O The amount of
goods customers
are willing and
able to buy
Law of Supply
O As price increases the amount
producers are willing and able to
produce increases
Price
P3
P2
P1
Q1
Q2
Q3
Quantity
Produced
Law of Demand
O As price increases the amount the
customer is willing and able to pay
decreases
Price
P3
P2
P1
Q1
Q2
Q3
Quantity
Purchased
Graphing Supply and Demand
Price
Surplus
Supply
Equilibrium
Demand
Shortage
Units
O Equilibrium: when supply and
demand are equal
O Shortage: when demand
exceeds supply
O Surplus: when supply exceeds
demand
Competition
O A rivalry between two or more
businesses to attract scarce customer
dollars
Example:
VS.
3 Types of Competition
O Price – using prices to attract
customers
O Non-price – using anything other than
the sale price of a product
O Ex: higher quality, new features, larger
assortment
O Monopoly – there is only one supplier
of a product (there is no competition)
Economic Impact of an Event
Hotels/
Lodging
Concessions
Local Merchants
Media
Security
Services
Who Does The
Event Benefit
Ticket Sales
Other
Recreation
Product
Sponsors
Airlines/
Transportation
Restaurants
Employees of
Venue
Review Assignment: Due to Mrs. Guerrero at the end of
the block
O In the SERM Textbook, read pages 12-14 and
stop at the heading “Property Ownership”
O Answer “Quick Check” Questions on Page
20 #’s 1-3
O Complete the DECA Connection- Role Play
Activity Assignment
O Page 25