Sports Industry Practice Test

What does Table 10.2 indicate about attendance and revenue?

Attendance varies by the number of games and popularity; gate receipts matter but not as much as media contracts; major leagues dominate revenue Attendance is determined by stadium capacity Gate receipts are more important than media contracts Small leagues generate more revenue than major leagues

Correct Answer:

Attendance varies by the number of games and popularity; gate receipts matter but not as much as media contracts; major leagues dominate revenue

Explanation:

Attendance varies with how many games are played and how popular the team is. Gate receipts from ticket sales matter, but the bigger driver of overall revenue is media contracts, which bring in far more money, especially for major leagues. That combination explains why attendance responds to schedule and popularity, while revenue is dominated by broadcasting rights. The other statements don’t fit because capacity limits attendance but doesn’t determine it, media rights aren’t shown to be less important than ticket sales, and small leagues don’t typically out-earn major leagues.

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