Personal Finance

Checking
Checking accounts:
Store money in bank to use in the near future
Demand deposit, meaning you can withdraw money at any time
Access money with checks, EFT, debit, check, or atm card

Why use it:

Safest and easiest
Easy but can be expensive if mismanaged
You need a credit card
Some bills are only paid by check
Young adults most prone to avoidable bank fees

Opening Account:
Personal ID
Address
Social Security #
Under 18 may require parent
Official Signature
-Authorizes your account
-No Nicknames

You get:
Account #
Some checks
Some deposit tickets
Check register
Debit card
Online banking access

Not all accounts are created equal:

Minimum opening deposit: Minimum amount of money required to open an account with a
financial institution.
Monthly service fees: Charges financial institutions impose on customers for maintaining an
account
and exemptions: Conditions under customers can avoid paying monthly service fees.
Item Charges:
Interest
Debit card
ATM fees
Overdraft protection
Stop Payment Charges

Depositing money:
3 ways to deposit are in person, ATM, internet/mobile app

Fill out deposit slip (ticket) when depositing in person. This summarizes what is to be deposited
into the account

Steps for deposit:

1. Write the date
2. Write amounts to be deposited in each box
a. Cash
b. Checks - list each one
a) Check #
b) Amounts
3. Total deposit amount
4. List any cash you want back
5. Calculate net deposit
6. Endorse checks being deposited
7. If getting cash back, sign at the bank after cash is received

Blank Endorsement:

● Use when: You are planning to deposit or cash the check yourself.
● How to endorse: Simply sign your name on the back of the check.
● Example scenario: You are taking the check to the bank to deposit into your account and
you want to endorse the check at home.
 ● Note: This type of endorsement is not very secure because if the check is lost or stolen,
anyone can cash it.

Restrictive Endorsement:

● Use when: You want to ensure the check is only deposited into your account.
● How to endorse: Write "For deposit only to account #[Your Account Number]" and then
sign your name.
● Example scenario: You are at the bank waiting in line to deposit this check.
● Note: This type of endorsement adds security by restricting the check to deposit only.

Special (Full) Endorsement:

● Use when: You want to transfer the check to someone else.

● How to endorse: Write "Pay to the order of [Friend's Name]" and then sign your name
underneath.
● Example scenario: You received a check for $50 and haven’t had a chance to get to the
bank and deposit it. You owe another friend $50 and they want their money now, but all
you have is this check.
● Note: This type of endorsement transfers the rights of the check to another person.

Writing a check: 4 fundamentals

Use pen
Fill in blank spaces
Sign using official signature
No mistakes
Steps for writing a Check
1) Write Date
2) Write who the check is to
3. Write the amount in #s
4. Write the amount in words (this supercedes #s)
5) Draw a line to fill blank space on Amount line
6) Write what it was for
7) Sign the check

Using a check register:

Fill out before writing check
Can use pencil
Use two lines
-Who it was written to
-Why it was written
Update balance

Steps for recording in the register

1) Write check number
2) Write date
3) Where money was spent, if deposit write deposit on first line
4) Write what it was or where it was from on second line
5) Write the amount as a positive number in the respective column on the first line
6) Update the balance on the first line in the balance column
Bank Reconciliation
1) Check off everything where you and bank agree
2) Add missing items from bank statement
3) Finish reconciliation, bank balance - outstanding checks + outstanding deposits

Saving
Saving can be useful to make big purchases that you currently cannot afford.

Credit
Credit cards can be used to purchase things when you don’t have enough money currently to
handle emergencies, such as refrigerators breaking, or buying a TV to get warranty protection.

Having credit cards and paying it off in time allows us to get credit which allows us to borrow
bigger loans to make big purchases, such as houses, cars, and college loans

Requirements:

You must be 18 years old or older, unless you sign up as an authorized user on an adult’s card.
You must have proof of income, unless an adult cosigns or makes you an authorized user on
their card
You might need an existing credit score. Other options are student card, co-sign, become an
authorized user, or apply for secured credit card.

Types:
Secure card involves a system where you can gain credit without risking you not paying them
back. This involves you giving them money to hold onto and they give you a credit limit up to
that amount.

APR is overall interest rate including all required fees. If you don’t pay bill in full, you will be
charged this rate. Credit card companies offer lower APR rates that expire by a certain date,
which usually become a greater amount.

Credit limit is the most amount of credit that can be borrowed at a given time unless previous
balance is paid off.

Fees can include annual, late payment, over limit, cash advance, and foreign transaction fees.
This is in addition to interest.

Minimum credit score is usually 640

Budgeting:
Don’t spend too much on unnecessary stuff and keep a log of the things you spend and the
amount total you will be able to spend after all expenses are paid off

Marketing
This is anywhere where a seller and a buyer come together

Target market / Customer profiles

First, identify the customer, then figure out what to sell to them, not the other way around

Companies may have multiple target markets, sell different products to each target market, or
have one product with different features that correspond to each target market.

Market segmentation can be broken into geographic, demographic, and psychographic.

Customer profile: A culmination of market segmentation, needs and wants, and how you will
reach them.

Produkt

Product can be a good or service, product features are what traits or attributes that differentiate
a product from its competitors

Price

Must be an amount that buyers are willing to pay but also generates profit.

Place refers to the activities involved in getting goods or services to the end user, including
producers, wholesalers, retailers, and others in the supply chain.

Promotion

How businesses communicate with potential customers in an effort to influence buying behavior.
This can include advertising, sales promotion, public relations, and personal selling.

Swot

Strengths, weaknesses, opportunities, threats

Knowledge matters:

Ticket Pricing
● Main Product: The main product a sports franchise sells is tickets.
● Pricing Complexity: Ticket pricing is complex due to fixed seat numbers and no marginal
cost for additional seats.
● Supply and Demand: Pricing is influenced by various factors like competing events,
team quality, economy, and weather.
● Yield Management Pricing: Different prices are set for different seats to maximize
revenue (e.g., better seats cost more).
● Dynamic Pricing: Ticket prices change based on real-time supply and demand, similar to
airline tickets.
● Challenges:
● Bulk Buying: Ticket brokers buy in bulk, reducing supply and driving up prices.
 ● Unsold Tickets: Half of the event tickets often remain unsold, while some are sold
at much higher prices.
● Internet Impact: The internet has both improved and complicated ticket pricing, making it
easier for consumers to compare prices but also facilitating bulk buying by brokers.
● Profit Maximization: Stadium owners aim to sell out events at the highest possible price
without underpricing or overpricing.

Math Examples

1. Profit Calculation:
● Formula: (Total Revenue - Cost) / Total Revenue
● Example: $110,000 revenue and $85,000 cost result in a 23% profit margin.
2. Average Ticket Price:
● Formula: Total Revenue / Total Tickets Sold
● Example: 500 tickets at $20 and 1,000 tickets at $10 average to $13.33 per
ticket.

Schlüsselbegriffe

● Demand: The amount of tickets customers want to buy.

● Dynamic Pricing: Flexible pricing based on real-time demand and supply.
● Marginal Cost: Cost of providing one additional seat, often negligible.
● Revenue: Total sales money collected.
● Ticket Agencies: Companies managing ticket sales for stadium owners.
● Ticket Brokers: Individuals or companies buying bulk tickets to resell at higher prices.
● Yield Management Pricing: Setting different prices to maximize revenue based on seat
quality and other factors.

Stadium Staffing

● Diverse Roles: Stadium operations require various staff members, each with specific
responsibilities, to enhance the customer experience.
● Gate Greeters: Ensure only paying customers enter, check tickets, and direct fans to
facilities.
● Information Specialists: Walk around to assist with directions and medical emergencies.
● Concession Staff: Prepare and serve food and drinks, ensure minors aren’t served
alcohol, and limit alcohol sales to prevent issues.
● Grounds Crew: Maintain the playing field to ensure safety and proper atmosphere,
crucial during inclement weather.
● Stage and Sound Crew: Set up and manage band equipment and audio for concerts.
● Cleaning Crew: Ensure stadium cleanliness before, during, and after events, sometimes
involving volunteers for extreme conditions.
● Ushers: Help attendees find seats and prevent seat switching to maintain ticket value.
 ● Security Personnel: Prevent fights, manage crowd control, and ensure overall safety,
often involving private security and local law enforcement.
● Parking Staff:
● Parking Cashiers: Collect parking fees.
● Parking Attendants: Help fans find parking spots.
● Parking Security: Ensure the safety of vehicles and belongings.
● Preventing Spectator Violence: Proper training and presence of stadium staff can reduce
spectator violence, which includes various disruptive behaviors like public intoxication
and riots.

Schlüsselbegriffe

● Cleaning Crew: Responsible for stadium cleanliness.

● Concession Staff: Prepare and serve food and drinks.
● Crowd Control: Techniques to ensure a peaceful event.
● Gate Greeter: Checks tickets upon entry.
● Grounds Crew: Maintains athletic fields.
● Information Specialist: Provides directions and emergency support.
● Parking Attendants: Help with parking.
● Parking Cashiers: Collect parking fees.
● Parking Security: Ensure vehicle safety.
● Security: Ensure safety of fans and property.
● Sound Crew: Manage audio equipment.
● Spectator Violence: Violence by spectators against other fans or players.
● Stage Crew: Set up and manage staging equipment.
● Ticket Sellers: Sell tickets at the stadium.
● Ticket Takers: Check tickets at entrances.
● Usher: Ensure fans stay in assigned seats.

Math Examples

1. Monthly Labor Cost Calculation:

● Example: 20 parking attendants working 40 hours/month at $10/hour equals
$8,000/month.
2. Yearly Labor Cost Percentage:
● Example: $57,000 for parking attendants out of $735,000 total labor cost is 8%.
3. Percentage Labor Cost Increase:
● Example: Increase from $42,000/month to $57,000/month is a 36% increase.
4. Percentage Labor Cost Decrease:
● Example: Decrease from $1,300,000 to $1,000,000 is a 23% decrease.

Ingress and Egress

● Definitions:
● Ingress: Flow of fans into a stadium.
● Egress: Flow of fans out of a stadium.
 ● Challenges:
● Bottlenecks: Points where traffic slows due to congestion, both for vehicles and
foot traffic.
● Throughput: Rate at which fans or vehicles can move through a given point,
calculated as rate × time.
● Ingress Considerations:
● Roads leading to the stadium.
● Alternative routes to ease congestion.
● Traffic patterns on surrounding roads.
● Ease of finding parking and walking to the stadium.
● Quick and easy ticket buying and security checks.
● Efficient movement to seats and facilities within the stadium.
● Egress Considerations:
● Ease of finding and exiting parking.
● Traffic flow out of the stadium.
● Alternative routes to reduce congestion.
● Streamlining traffic flow.
● Parking Solutions:
● Adequate on-site parking or satellite parking with shuttle services.
● Staffed with gate personnel, attendants, and security.
● Encouragement of public transportation to reduce parking demand.
● ADA Compliance:
● Americans with Disabilities Act (ADA): Requires new stadiums to be accessible
for people with disabilities, including seating, concessions, parking, entrances,
water fountains, and restrooms.

Schlüsselbegriffe

● Americans with Disabilities Act (ADA): Federal law requiring stadium accessibility for
those with disabilities.
● Bottlenecks: Points where traffic flow is restricted.
● Egress: Flow of fans out of a venue.
● Ingress: Flow of fans into a venue.
● Public Transportation: Methods like subway or commuter rail.
● Satellite Parking: Offsite parking lots requiring shuttle transport.
● Ticket Sellers: Sell tickets to the public.
● Ticket Takers: Check tickets at entrances.

Math Examples

1. Parking Area Entry Time:

● Example: 12,000 vehicles with a capacity of 15,000 vehicles/hour takes 48
minutes to enter.
2. Road Closure Timing:
 ● Example: For 7,500 vehicles at 2,500 vehicles/hour, close roads at 5 p.m. for an
8 p.m. event.
3. Maximum Ingress Throughput:
● Example: 3 gates with 4 booths/gate processing 400 fans/hour each results in
4,800 fans/hour.
4. Egress Rate Calculation:
● Example: If ingress is 6,000 fans/hour, egress is 9,000 fans/hour based on a
one-third time reduction for exit.

Parking

● Parking Options for Fans:

● On-site stadium parking: Convenient but expensive.
● Satellite lots: Cheaper but require shuttle bus or walking.
● Metered on-street parking: Close to the stadium but uncertain availability.
● Public transportation: Avoids parking but may be crowded.
● Revenue Source:
● Parking can generate substantial revenue, especially for large venues.
● Example: A stadium with 21,000 parking spaces at $40 each can make $840,000
per event, totaling $16.8 million annually for 20 events.
● Third-Party Management:
● Many stadiums contract out parking management and take a percentage of the
revenue.
● Satellite Parking Lots:
● Increase available parking and reduce traffic congestion.
● Leasing lots can reduce variable costs like maintenance, but comes with risks of
losing contracts or facing cost increases.
● Pricing Strategies:
● Dynamic pricing adjusts parking fees based on demand and supply.
● Balancing parking prices with convenience and amenities is crucial to attract
fans.
● Challenges:
● Declining attendance in some sports, like the NFL, affects parking revenue.
● New stadiums sometimes overestimate parking demand, leading to underutilized
parking facilities.
● Tailgating:
● Popular among fans, involving pre-game socializing in parking lots.
● Some stadiums embrace and monetize tailgating by selling season passes, while
others discourage it.

Schlüsselbegriffe

● Dynamic Pricing: Flexible pricing that changes with supply and demand.
● Egress: Flow of fans out of the stadium.
● Fixed Costs: Regular expenses regardless of the number of events or attendance.
 ● Ingress: Flow of fans into the stadium.
● On-Street Parking: Parking along the streets near the stadium.
● Public Transportation: Transport options like subway or commuter rail.
● Satellite Lot: Off-site parking requiring shuttles to the stadium.
● Tailgating: Pre-game socializing and grilling in parking lots.
● Variable Costs: Expenses that vary, such as food or maintenance costs.

Math Examples

1. Calculating Vehicles to Park:

● Example: 60,000 fans (60% of 100,000) driving in 30,000 cars (2 fans per car).
2. Labor Cost for Parking Attendants:
● Example: 25 attendants (10 at stadium, 15 at satellite lots) working 7 hours each
at $12/hour results in $2,100 total labor cost.
3. Busing Cost from Satellite Lots:
● Example: 12 buses (3 per lot for 4 lots) for 6 hours at $150/hour leasing and
$18/hour driver pay equals $12,096.
4. Profit Percentage Calculation:
● Example: Revenue of $460,000 with costs of $100,000 results in $360,000 profit,
which is

Concessions

● Definition:
● Concessions: Areas in stadiums where food and drinks are sold to fans during
events.
● Concessionaire: The operator of a concession stand.
● Significance:
● Concessions are a major source of revenue for stadiums, potentially generating
millions of dollars annually.
● They provide a necessary service as fans typically cannot bring outside food or
drinks into the venue.
● Popular Items:
● Traditional items include french fries, hamburgers, hot dogs, pizza, popcorn,
candy, beer, soda, and coffee.
● Healthier options are becoming more common, such as fruit salads.
● Pricing Strategy:
● Concession pricing is similar to ticket pricing; too high and sales drop, too low
and profits suffer.
● Profit margin is calculated as price minus cost (cost includes the item cost and
worker wages).
● Prices can increase with higher attendance and increased demand.
● Concession Strategies:
● All-you-can-eat seats: Premium tickets that allow unlimited food.
● Two-for-one tickets: Admission price includes a food or drink item.
● Value meals: Discounted combinations of food items.
 ● Family fun days: Discounts on concessions to boost attendance.
● Season pass discounts: Discounts for season ticket holders.
● Inventory Management:
● Ensuring adequate supplies without excess inventory is crucial.
● Regular deliveries from wholesalers are necessary for smooth operation.
● Convenience:
● Easier and faster purchases increase sales.
● Options include vendors walking the aisles and pre-ordering food via apps.
● Health Codes:
● Strict regulations ensure food safety.
● Violations can result in lower sales, customer illness, and lawsuits.

Schlüsselbegriffe

● Concessionaire: Operator of a concession stand.

● Concession Pricing: Methods used to price food and drink items at stadiums.
● Cost: Total expense for the concessionaire to prepare and serve items.
● Game-Day Experience: Overall quality of the fan experience during events.
● Inventory: Supplies of food and drink on hand.
● Price: Amount charged for food and drink items.
● Profit Margin: Price minus cost.

Math Examples

1. Vendor Requirement Calculation:

● Example: 70,000 fans, each vendor serves 10,000 fans in 4 hours, requires 7
vendors (70,000 / 10,000).
2. Average Customers Per Vendor:
● Example: 34,000 attendees, 75% purchasing, 5 vendors. Each vendor serves
5,100 customers (34,000 * 0.75 / 5).
3. Cookie Sales Calculation:
● Example: Bob needs to sell 2,000 packages of cookies at $5 each to cover costs
and pay himself $4,000/month.
4. Profit Calculation for Vendor:
● Example: Vendor captures 20% of $25,000 sales. Revenue = $5,000, expenses
= $2,090. Profit = $2,910 (5,000 - 2,090).
● 78% of revenue.

Sponsorships

● Definition and Importance:

● Sponsorships are a major funding source for sports teams and venues.
● Sponsorships include branding on ticket stubs, billboards, signs, and concession
items.
● Revenue Generation:
 ● In 2019, the top 20 stadium sponsorship deals were worth over $5 billion.
● Scotiabank Arena in Toronto has a deal worth over $600 million through 2038.
● Why Sponsorships Work:
● Association Principle: Consumers use mental shortcuts to associate brands with
positive traits like popularity or convenience.
● Passion Transference: Fan passion for a team can be transferred to the
sponsoring brand, leading to increased sales and brand loyalty.
● Types of Sponsorship Opportunities:
● Naming Rights: Naming the stadium or events held at the stadium.
● Signage: Printed and electronic advertisements around the venue.
● Team Uniforms: Sponsorship logos on team uniforms.
● Hospitality: Sponsorship of luxury boxes or premium seats.
● Advertising and Announcements: Including sponsor logos in promotions across
various media.
● Product Promotions and Endorsements: Ad campaigns featuring team players
endorsing sponsor products.
● Negotiating Sponsorships:
● Stadium owners negotiate sponsorship deals to find a balance between
acceptable prices and advertising opportunities.
● Perceived Value: Sponsors consider the value they receive from the
sponsorship.
● Economic Factors: Macroeconomic trends affect sponsorship negotiations and
willingness to pay.
● Pricing Sponsorships:
● Stadium owners must justify their asking prices and maintain profit margins by
calculating administrative and marketing costs.
● Supply and demand dynamics influence sponsorship pricing, potentially leading
to bidding wars.
● TV Broadcast Rights:
● TV rights, though not sponsorships, are a significant revenue source, with
networks paying billions for broadcasting rights.

Schlüsselbegriffe

● Association Principle: Simplifying decisions by associating brands with positive

attributes.
● Bidding War: Companies competing to outbid each other for sponsorship opportunities.
● Brand: An image, logo, or name associated with a company.
● Naming Rights: Exclusive rights to have a sponsor's name and logo on a stadium.
● Negotiation: Process of reaching an agreement between parties with competing
interests.
● Passion Transference: Fans' allegiance to a team strengthens their loyalty to associated
brands.
● Perceived Value: Value attached to something by the person seeking to acquire it.
● Product Promotions and Endorsements: Celebrities or players recommending sponsor
products.
 ● Profit Margin: Income after paying operating and administrative expenses.
● Signage: Use of signs and symbols for advertising in stadiums.
● Sponsors: Organizations or individuals providing money in exchange for advertising
rights.
● TV Broadcast Rights: Rights to broadcast a team's games on TV.

Math Examples

1. Cost Percentage Calculation:

● Example: Naming rights deal at $850,000 with $85,000 administrative costs
results in costs being 10% of revenue ($85,000 / $850,000 = 0.10 = 10%).
2. Average Profit Calculation:
● Example: Deal A: $200,000 revenue and $40,000 expenses; Deal B: $70,000
revenue and $25,000 expenses. Average profit as a percentage of revenue is
76% ((($200,000 + $70,000) - ($40,000 + $25,000)) / ($200,000 + $70,000) = 0.759 =
76%).

Promotion with Traditional Media

● Traditional Media:
● Traditional media includes broadcast TV, cable TV, radio, and newspapers.
● Used for promoting events and reaching potential customers.
● Market Research:
● Essential for understanding the event and target audience demographics (e.g.,
gender, age, income).
● Helps identify the most effective ways to promote the event to specific groups.
● Media Planning:
● Media planners aim to reach the largest possible target audience within a budget.
● Focus on targeting specific demographic segments rather than the entire
population to maximize impact and minimize costs.
● Five-Step Plan:
● Define and Analyze Target Audience: Identify who will be interested in the event.
● Articulate Desired End Result: Set goals for the marketing campaign, such as
filling seats and estimating conversion rates.
● Develop Your Message: Craft a compelling and creative message tailored to the
target audience.
● Select the Best Media Channels: Choose the most effective media to reach the
target audience, considering strengths and weaknesses of each medium.
● Monitor and Measure Progress: Track and measure the effectiveness of the
campaign to adjust strategies accordingly.
● Media Strengths and Weaknesses:
● Newspapers/Magazines: Cheaper, loyal following, but limited reach and
flexibility.
● TV/Cable: Large audience, adds sound and video, but expensive and short ad
length.
● Radio: Cheaper and easier to produce, but less permanent and shorter ads.
 ● Billboards: High visibility, but requires brief messages and long-term
commitment.
● Monitoring Success:
● Use specific web addresses, phone numbers, and surveys to track the
effectiveness of different ads.
● Social media and new media provide granular tools for measuring success.

Schlüsselbegriffe

● Awareness: Percentage of potential customers aware of a product.

● Cost per Reach: Total cost of an ad campaign divided by the number of people reached.
● Demographics: Basic characteristics of a population segment.
● Market Research: Process linking consumers to marketers to identify opportunities and
evaluate actions.
● Media: Channels for communicating messages (e.g., TV, radio, internet).
● Media Planner: Person who plots marketing strategies.
● New Media: Mass communication using the internet.
● Social Media: Subset of new media facilitating two-way interactions (e.g., Twitter,
Facebook).
● Traditional Media: Non-internet media channels (e.g., TV, radio, newspapers).

Math Examples

1. Percentage of Advertising Expenditures:

● Example: $33,000 on cable TV out of $73,000 total expenditure results in 45%
spent on cable TV ($33,000 / $73,000 = 0.452 = 45%).
2. Cost Effectiveness of Ads:
● Example: TV ad costs $25 per attendee, newspaper ad costs $23.08 per
attendee. Newspaper ad is more cost-effective.
3. Ratio of Patrons to Advertising Dollars:
● Example: 28 million patrons over $3.5 million in advertising gives a ratio of 8:1
(28 million / 3.5 million = 8).
4. Future Advertising Budget:
● Example: Tess plans to spend $21,750 next week after spending $14,500 last
week and twice as much this week (($14,500 + 2 x $14,500) / 2 = $21,750).

Promotion with Social Media

● Definition and Characteristics:

● Social media platforms include Facebook, Twitter, YouTube, and Instagram.
● Common characteristics of social media: participation, collectivity, transparency,
independence, persistence, and emergence.
● Popularity and Demographics:
● Social media is used across all age groups.
● In 2019, 73% of Americans used YouTube, 69% used Facebook.
 ● Different platforms appeal to different age groups (e.g., Instagram is popular
among 18-24 year-olds).
● Marketing Potential:
● Social media allows marketers to target individuals based on specific interests.
● Effective for expanding the audience of ticket buyers for sports and entertainment
events.
● Benefits and Challenges:
● Benefits: Direct targeting, increased brand recognition and reputation.
● Challenges: Overabundance of marketing can lead to user disengagement
(similar to email spam).
● Effective Strategies:
● Use social media as part of a larger marketing campaign including TV, radio,
billboards, and email.
● Focus on developing conversations and providing value rather than just pitching
products.
● Successful campaigns can result in viral marketing through shares in social
networks.
● Platforms and Tools:
● Google: Contextual advertising based on search terms and location.
● Facebook: Event pages, targeted ads, tools like apps, games, polls, and quizzes.
● Success Tips:
● Tailor marketing campaigns to the strengths of each platform (e.g., Instagram for
photos, YouTube for videos).
● Authenticity and organic connection with fans are crucial.
● Engage with fans by listening and responding, rather than just selling.
● Examples of Successful Use:
● San Francisco Giants using Twitter hashtags for fan engagement.
● Professional soccer teams using Instagram for behind-the-scenes content.

Schlüsselbegriffe

● Authenticity: Connecting with fans genuinely without hard selling.

● Brand Recognition: Awareness of a brand among the general population.
● Brand Reputation: Perception of a brand in the marketplace.
● Contextual Advertising: Targeting ads based on user preferences.
● Social Media: Platforms for user interaction through photos, videos, and text.
● Social Media Marketer: Uses social media to converse with and engage customers.
● Spam: Unwanted marketing messages.
● Marketing Campaign: Methods and strategies to promote a product or event.
● Viral Marketing: Using consumers to share messages through their networks.

Math Examples

1. Potential Reach Calculation:

 ● Example: Jen's band has 26,000 likes. If each fan has friends equal to 10% of
Jen's likes, the potential reach if all fans share her page is 67,600,000 (26,000 x
26,000 x 0.1).
2. Sales Calculation:
● Example: Chris posts two $5 products. If 2,000 friends buy both products and
1,500 buy one, total sales are $27,500 (5,500 products x $5).
3. Percentage of Friends Purchasing:
● Example: Lynn has 150,000 friends. If 10,000 buy one product and 3,000 buy
another, 9% of her friends purchased products ((10,000 + 3,000) / 150,000 =
0.086).
4. Audience Reduction:
● Example: A Facebook ad targets 500,000 people. Reducing the audience by
40% for women results in a 300,000 audience (500,000 x (1 - 0.40)).

Picking and Promoting a Band

● Venue Size:
● Stadiums in the U.S. can seat between 20,000 and 80,000 people and host
various events, including concerts, sports, and conventions.
● Iconic Venues:
● Madison Square Garden hosts about 320 events annually and is renowned for its
acoustics and history.
● Booking Large Acts:
● Involves coordination between the act (or management), the promoter, and the
stadium manager.
● Promoters rent stadium space, handle logistics, and ensure profitability and
safety.
● Contractual Agreements:
● Contracts between promoters and stadium owners detail venue usage fees, legal
liabilities, and revenue sharing from ticket sales, parking, and merchandise.
● Insurance policies often cover cancellations due to unforeseen circumstances.
● Financial Viability:
● Booking large acts can be expensive, with some demanding $200,000 per
appearance plus a share of ticket and concession sales.
● Supporting acts can increase event appeal and provide additional value without
significant cost.
● Challenges in Stadium Shows:
● Stadium shows are costly and face competition from arenas, which are more
economically viable and easier to sell out.
● Major acts may prefer multiple sold-out arena shows over a single stadium show.
● Economic Strategies:
● Developing a multi-ticket offer and pricing strategy that matches market demand.
● Using customer data and market research to optimize ticket sales and enhance
fan experiences.
● Key Factors for Success:
● Ensuring events are profitable for acts, promoters, and stadium owners.
 ● Creating a symbiotic relationship where all parties benefit while delivering value
to fans.

Schlüsselbegriffe

● Arena: An indoor entertainment complex with 10,000 to 20,000 seats.

● Headliner: The main act performing at a venue.
● Promoter: An individual or company that organizes and brings acts to venues.
● Stadium Manager: Manages the stadium and coordinates with promoters for events.
● Stadium: A large entertainment complex with more than 20,000 seats, often unroofed.
● Support Act: A lesser-known band performing before the headliner.

Math Examples

1. Percentage Increase in Profit Margin:

● Example: Increase from $200,000 to $500,000 results in a 150% increase in
profit margin (($500,000 - $200,000) / $200,000 = 1.50 = 150%).
2. Percentage Decrease in Profit:
● Example: Decrease from $2,000,000 to $1,750,000 results in a 13% decrease in
profit (($2,000,000 - $1,750,000) / $2,000,000 = .125 = 13%).

Player Management

● Importance of Winning:
● Winning teams draw more fans, secure higher sponsorship fees, and sell more
merchandise.
● Team Chemistry:
● Team chemistry, or the ability of players to make each other better, is crucial for
success.
● Example: The 2011 Boston Red Sox had talented players but suffered from poor
team chemistry.
● Components of Player Management:
● Player Selection:
● Involves scouting, drafting, trading, and free agency.
● Small-market teams often face challenges in retaining top talent due to
financial constraints.
● Player Development:
● Developing players' skills and integrating them into the team.
● This can occur in the minor leagues or directly on the professional roster.
● Team Building:
● Fostering good relationships and teamwork among players.
● Coaches and management intervene to maintain team spirit and address
issues.
● Coping with Age and Injuries:
● Injuries and aging are inevitable in professional sports.
 ● Teams have backup players ready to step in when needed.
● Managing the transition of aging players and preparing for their retirement.

Schlüsselbegriffe

● Backup: A player who substitutes for a starter in case of injury.

● Big-Market Teams: Teams with higher annual revenue.
● Contract: Legal agreement between a team and a player for playing services.
● Draft: Process where professional teams select amateur players.
● Free Agency: Period when players can sign with any team after their contract ends.
● Hometown Discount: When a player signs for less money with their current team.
● Luxury Tax: Penalty for teams exceeding a certain payroll limit.
● Retirement: When a player ends their professional career.
● Roster: List of players on a team.
● Salary Cap: Maximum amount a team can spend on salaries.
● Scouts: Talent evaluators who identify potential players.
● Small-Market Teams: Teams with lower annual revenue.
● Trade: Exchange of players between teams.

Math Examples

1. Calculating New Salary:

● Example: Devon, currently making $250,000 as a backup, will make $357,143 as
a starter.
● Solution:
● $250,000÷0.7=$357,143
● $250,000÷0.7=$357,143
2. Percentage Increase in Pay:
● Example: Ken makes $400,000 and earns $80,000 in bonuses for 8
interceptions.
● Solution:
● ($10,000×8)÷$400,000=0.20=20%
● ($10,000×8)÷$400,000=0.20=20%
3. Future Salary Calculation:
● Example: Nigel's salary will be $1,968,300 after a 35% raise each year for three
years.
● Solution:
● $800,000×1.353=$1,968,300
● $800,000×1.35
● 3
● =$1,968,300
4. Percentage of Total Salary Paid to Quarterbacks:
● Example: Total quarterback salaries are $2,200,000 out of a $23 million team
salary.
● Solution:
● ($950,000+$850,000+$400,000)÷$23,000,000=0.0956=10%
● ($950,000+$850,000+$400,000)÷$23,000,000=0.0956=10%