1 Running Head: 3-2 Journal: Economic Choices and Viability

3-2 Journal: Economic Choices and Viability

Dujon McDonald

SPT 620: Finance and Economics of Sport

Southern New Hampshire University

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2 Running Head: 3-2 Journal: Economic Choices and Viability

The term economic choices are defined as having multiple options of the same products

or services with different price points. For example, if someone wants to buy a new cell phone

for $799, $899 or $999, the differences will depend on Brans and carrier of the phone. Sports

organizations in the U.S practice different types of economic choices. One example is social-

economic choices; this involves people in society and their behavior. In Peter Berkes's article, he

mentioned the SEC having the most revenue and profits in the entire country. Although The Big

Ten came in second in terms of revenue, they only manage to come in at number 4 in terms of

profits due to having the highest average expenses in the country (Berkes, 2016). Let talk a look

at why the SCE is leading the way.

Compared to The Pac-12 Network, which has about 11 million subscribers going into

year four, the SEC has 66 million subscribers in their first year even though they charge and

higher fee. The SEC uses social and scientific economic choices (Berkes, 2016). The SEC has a

profit of $16,907,834, which is $15,013,660 more than the Big Ten and $12,063,081 more than

the Big 12, respectively. The social economical choice seems to have a positive impact on the

SEC as the conference makes an average of around $14 million more in revenue per-team than

their closest peer and around $12 million more in average profit after expenses; when compared

to that of the Pac-12 who finished in the negative losing about $1.5million. For each conference,

the sources of expenses came from media rights, Broadcasting deals, networking fees, etc.

Moreover, SEC schools like Texas A&M utilized the influx of donations related to the facility

renovations as a source of revenue and profits (Berkes, 2016). I believe social and scientific

economic choices would work most effectively for economic viability. The more a sports

organization study its peers and the more informant they gather on society and their behavior, the

more they can reach them with its service or product.

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3 Running Head: 3-2 Journal: Economic Choices and Viability

Reference:

Berkes, P. (2016, April 26). The SEC makes more money than every other conference, and it's

not close. Retrieved from https://www.sbnation.com/college-

football/2016/4/26/11456612/athletic-department-finances-sec-big-ten-pac-12-acc

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