Deck 6: Finances and Operational Planning

Question 1

Which of the following is the NCAA's most significant revenue source?

A) Championships and tournaments
B) Investment income
C) Membership dues
D) Television and marketing rights fees

Answer 1

D

Question 2

Which of the following components of the NCAA's Division I Revenue Distribution Plan returns the most money to member schools?

A) Academic Enhancement Fund
B) Basketball Performance Fund
C) Conference Grants
D) Grants-in-aid Fund

Answer 2

B

Question 3

Which of the following lists, in order of significance, the top four revenue sources for NCAA Division I schools with Bowl Subdivision football programs?

A) Guarantees and options, ticket sales, student fees, institutional support.
B) NCAA and conference distributions, donor contributions and endowments, ticket sales, royalties/advertising/sponsorship.
C) Ticket sales, NCAA and conference distributions, institutional support, student fees.
D) Ticket sales, student fees, institutional support, donor contributions and endowments.

Answer 3

B

Question 4

Which of the following lists, in order of significance, the top four operating expense items for NCAA Division I schools with Bowl Subdivision football programs?

A) Coaches' compensation, game and travel, medical, recruiting.
B) Game and travel, grants-in-aid, medical, student athletics aid.
C) Coaches' compensation, student athletics aid, guarantees, medical.
D) Coaches' compensation, facilities, administrative compensation, student athletics aid.

Question 5

Which of the following lists the most significant revenue source and expense for Eastern Washington athletics?

A) Direct institutional support, athletics student aid
B) Direct institutional support, coaching salaries and benefits
C) Media rights, coaching salaries and benefits
D) Ticket sales, athletics student aid

Question 6

Information is quality if it is ____________________.

A) Timely, succinct, accurate and complete
B) Time-framed, specific, reliable and accurate
C) Timely, reliable, appropriate and consistent
D) Timely, reliable, accurate and complete

Question 7

Fundraising from alumni, boosters, and others accounts for what percentage of the annual aggregate median Division I Bowl Subdivision athletic budget?

A) 6
B) 12
C) 23
D) 31

Question 8

The following lists the top two operating expenses for University of Florida athletics:

A) Expenses from salaries, wages and benefits; Direct sport team expenses
B) Expenses from salaries, wages and benefits; Scholarship expenses
C) Scholarship expenses; Facility, maintenance and overhead expenses
D) Direct sport team expenses; Facility, maintenance and overhead expenses

Question 9

The average annual expense of coach compensation for NCAA Division I FCS schools is ______ percent of annual budgets.

A) 9
B) 19
C) 29
D) 39

Question 10

As of 2020, ______________________ is the highest-paid head football coach in the country.

A) Chip Kelly
B) Ed Orgeron
C) Nick Saban
D) Dabo Swinney

Question 11

Because of its classification as a not-for-profit entity, and to maintain its tax-exempt status, the NCAA's annual budget must reflect the fact that revenues must equal expenses.

Question 12

As dictated by Article 4 of the NCAA Constitution (Bylaw 4.01.2.1), the expenses and allocations to Division II and III schools are locked in at a set percentage of the annual expenses, 4.37 percent and 3.18 percent, respectively.

Question 13

Licensing enables schools and teams to generate brand recognition and interest and to increase revenues with little financial risk. For licensees, use of the established images and popularity of sport teams can boost sales. Licensees assume the financial risk by manufacturing the product and then paying a fee to the licensor for the use of specific trademarks on specific products.

Question 14

Operational plans for intercollegiate athletics organizations are developed based on factors such as projected societal trends, national and regional economic forecasts, and technological influences. Strategic plans are internally based and involve keeping departments and organizations running efficiently.

Question 15

Because the focus is on internal operations, planning techniques such as forecasting, budgeting, and management by objectives ensure that all actions of an intercollegiate athletic department or organization align with larger strategies.

Question 16

Identify and explain the importance of fundraising for Division I athletic programs, the key elements that impact how and why departments generate revenues through fundraising, and some of the managerial challenges related to fundraising efforts.

Question 17

Identify and explain how licensing contributes to athletic department revenues and bolsters institutional brand identity, as seen in the case of Louisiana-Lafayette.

Question 18

Explain how Sacred Hear University used both qualitative and quantitative forecasting techniques in its decision to build an on-campus ice hockey arena.

Question 19

Explain how the NCAA determines distribution allocations for the Grants-in-aid Fund.