Understanding sports business terminology is crucial for career success in the industry. Here's a comprehensive guide to essential terms:

Advertising vs. Public Relations Advertising uses paid channels to promote products/services, while PR utilizes free mechanisms like media coverage to shape public perception.

Antitrust Laws maintaining market competition, with special "labor exemptions" for player unions in sports to allow collective bargaining agreements.

Audience Rating vs. Share

• Rating: Percentage of total TV households watching a program
• Share: Percentage of active TV viewers watching a specific program

Blackout (TV) Restriction preventing local TV broadcast of non-sold-out home games, typically applying 72 hours before game time.

Branding Creating distinct team identity through logos, colors, and catchphrases to differentiate from competitors.

Contract Options

• Club Option: Team decides whether to retain player at preset salary
• Player Option: Player chooses to stay or become free agent

Collective Bargaining Agreement (CBA) Contract between players union and team owners, establishing league rules and conditions.

Endorsement Paid athlete testimonials for products/services, often exceeding playing contract values.

Event Management Comprehensive organization of sporting events, including tickets, vendors, sponsors, and promotions.

Fan Equity Emotional investment and perceived ownership fans feel toward their team.

Financial Valuation Assessment of team worth based on ticket sales, broadcast contracts, and facility assets.

Interactive Fan Experience Enhanced game attendance through digital engagement, mobile apps, and in-stadium activities.

Licensing Legal agreements allowing businesses to use team brands for fees/royalties.

Luxury Tax Penalty for teams exceeding payroll limits.

Personal Seat License (PSL) Fee granting right to purchase season tickets for specific seats.

Revenue Team income from tickets, merchandise, licensing, and concessions.

Salary Cap League-imposed team spending limits on player salaries:

• Soft Cap: Allows exceeding with tax penalties
• Hard Cap: Strict spending limit

Secondary Market Resale platform for previously purchased tickets.

Statistical Modeling Mathematical analysis predicting sports outcomes and informing team decisions.

Sunk Cost Non-recoverable expenses, relevant in guaranteed contract decisions.

Vendor External service providers for stadium operations.

World Anti-Doping Agency (WADA) International organization monitoring and preventing sports doping.

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