Sources of Revenues and Expenses for Sport Organizations - Essay Example

SOURCES OF REVENUES AND EXPENSES FOR SPORT ORGANIZATIONS The National Collegiate Athletic Association Revenue categories: Sales of ticketsStudent feesSchool funds- support from universityContributions from individuals, associations, corporations, foundations, or clubs Game guarantees and game programsRights/licensingParking revenuesTV incomeCamp incomeExpenses:ScholarshipsCoaching staff salaries, benefits and bonusesBuilding/grounds maintenance, rental and utilities feesGuarantees paid to other schoolsTeam travel expensesRecruiting and scoutingGame day and camp expensesFundraising and marketing costsMedical expense/insuranceEquipment and uniform purchasesSeverance payments to past staff and coaches National Collegiate Table Tennis AssociationSources of revenueContributions, grants, and giftsInvestment incomeProgram servicesSchool funds- support from universityNet fundraisingTicket salesRoyaltiesInventory salesSales of assetsRental property incomeParking revenuesTV incomeCamp incomeExpensesSalariesTeam expensesMarketing expensesOperations and maintenanceInterest expenseGeneral and administrative expensesMedical expense/insuranceEquipment and uniform purchasesSeverance payments to past staff and coaches Guarantees paid to other schoolsUSA Triathlon Collegiate National AssociationSources of revenuesMembership contributionTicket salesLocal mediaMarketing and sponsorshipsInvestment incomeFundraisingGovernment grantsExpensesSalariesTeam expensesScholarshipsMedical expense/insuranceEquipment and uniform purchasesIncentive awardsEssay contest awardsFacility assistance grantWord responseJust like any other business organizations, sport organizations raise revenues and incur expenses.

Being sport organizations, the three bodies have almost the same sources of revenues and expenses; however, there are some sources that are different. The three organizations have ticket sales as a common source of revenue. These include sales to tickets to faculty, public as well as students and money that are received for shipping and handling of the tickets. However, such source of revenue fails to include amounts in excess of the ticket’s face value (Baker & Esherick, 2013). Other source of revenue that they have in common includes contributions from individuals, associations, corporations, foundations, or clubs.

Being national organizations, the National Collegiate Athletic Association and the National Collegiate Table Tennis Association have grants from schools in the form of support from the university. Such school funds include both indirect and direct support from the university, for instance state funds and federal Work Study amounts for the athletes. In addition, it includes university-provided support, for instance, facility and grounds maintenance, administrative costs, security, utilities and risk management.

However, the USA Triathlon Collegiate National Association receives grant from the government. All the three organizations have investment income in common (Pedersen et al, 2011).The National Collegiate Athletic Association raises revenue from Game guarantees and game programs, National Collegiate Table Tennis Association from royalties while USA Triathlon Collegiate National Association from local media. Not-for-profit organizations like the National Collegiate Athletic Association and the National Collegiate Table Tennis Association also sells items for profit and ploughs it back into the organization.

They also generated revenue in the form of sales of assets and inventory.In terms of expenses, all the three organizations pay salaries to their coaches and staffs, they have sponsorship programs, team expenses, purchase equipment and uniforms and general and administrative expenses. Sponsorship programs are sport-related aids. All of them contribute towards maintaining buildings, grounds and facilities (Masteralexis, 2014). In addition, they have medical expense/insurance in common for all of their stakeholders, coaching, staff and players.

both the National Collegiate Athletic Association and the National Collegiate Table Tennis Association pays guarantees to other schools, pays game day and camp expenses and renders severance payments to their past staff and coaches. However, USA Triathlon Collegiate National Association has expenses such as incentive awards, essay contest awards and facility assistance grants. All of the organizations also have interest expense which they render to lending institutions for the loans they often borrows.

ReferencesBaker, R. E., & Esherick, C. (2013). Fundamentals of sport management. Champaign, IL: Human Kinetics.Pedersen, P. M., Parks, J. B., Quarterman, J., & Thibault, L. (2011). Contemporary sport management (4th ed.). Champaign, IL: Human KineticPrinciples and practice of sport management: Masteralexis. (2014). Burlington: Jones & Bartlett Learning.