GameDay, Inc., a website that offers sports betting, signs an advertising rights agreement giving GameDay the right
Question:
GameDay, Inc., a website that offers sports betting, signs an advertising rights agreement giving GameDay the right to place its logo on the parquet floor near center court at Porter's Arena. Porter's Arena is owned by Jefferson County. In exchange for $200,000 for the first season, escalating by 3% each year, GameDay's logo will be displayed in a designated location on the parquet for all NBA games held at the Arena for three consecutive seasons. GameDay must pay for these rights at the beginning of each season.
Required: Advise GameDay on the appropriate accounting for this agreement, including consideration of whether this arrangement is a lease.
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt