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  • 1. How does a professional sports team generate revenue?
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  • 2. Explain why the owners of the teams or their franchises do not get to take all the generated revenue.
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  • 3. Explain why incentives matter to professional teams, their leagues and the profits they earn.
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  • 4. Why are profits important to sports teams and everyone connected to them?
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  • 5. What makes the Dallas Cowboys the most valuable team in the NFL?
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  • 6. The Kansas City Royals are a \"small market\" team while the Kansas City Chiefs are not for which of the following reasons: (a) they draw fewer fans. (b) they rely more on local—not national—broadcasts for their media revenue. (c) they have a much older stadium than the Chiefs do. (d) they have to share more of their revenue with other teams.
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