...of Professional Sports Team Financial Statements Controlling Player Costs National Football League National Basketball Association Major League Baseball National Hockey League European Soccer’s Path to Financial Health: UEFA’s Financial Fair Play Creative Accounting Roster Depreciation Allowance Franchise Appreciation Summary The Financial Status of Professional Sports Growth of Professional Sports Major Leagues The 1990s and early 2000s was a period of substantial growth for professional sports at all levels. The number of teams in the Big 4 major leagues grew from 103 franchises in 1989 to 122 franchises by 2001. During that time, the National Hockey League (NHL) added eight expansion teams, Major League Baseball (MLB) added four, the National Football League (NFL) added three, and the National Basketball Association (NBA) added five teams. In addition, several new leagues were launched in the 1990s with aspirations of becoming prominent national properties, most notably Major League Soccer (MLS) and the Women's National Basketball Association (WNBA). By 2001, each of the Big 4 leagues had reached a saturation point, having established franchises in nearly every market capable of sustaining a major sports property. A few markets remain available for certain leagues. For example, Los Angeles has not had an NFL team since the Rams abandoned LA for a new stadium in St. Louis in 1995. While the NFL would love to have a franchise in the country’s...
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...of revenue sharing and salary caps has revolutionized the business of professional sports. The National Football League implemented these concepts in order to promote competitive balance. Theoretically, revenue sharing is supposed to encourage equal distribution of wealth so as to not concentrate top-talent players to the teams with the most resources. In so doing, its practice should work to ensure that there is equal competition among small and large market teams. Also, by enacting a salary cap, larger market teams are prevented from monopolizing talent. Through a series of collective bargaining agreements and lawsuits, there has been a movement in the NFL toward benefiting both the players and owners. The NFL is the most successful professional sports league in the country. This is in large part due to its ability to run efficiently as a business and promote competition as a sport. In this paper, we examine the historical significance of the progressive collective bargaining agreements and how its changes have effected players and owners of teams in the league. We also examine the components of revenue-sharing and the salary cap implemented through the NFL’s CBA and their significance in promoting competitive balance. Historical Analysis of the Salary Cap and CBA The National Football League has undergone many changes since its inception in the 1920s. Early in the development of the National Football League, there was competition among teams in choosing players for their...
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...financial issue related to the sport industry. The paper should be written in a style that reflects a clear understanding of both sides of the issue followed by the selection and defense of a position. The paper is to be written using APA style format (5th edition). NOTES • Present a clear overview of the financial issue at hand. • Provide 5 arguments (minimum) in support of the affirmative position and 5 arguments (minimum) in support of the opposing position. • After presenting arguments for the affirmative and opposing positions, students must state and discuss their position on the financial issue. • Each argument must have supporting material (cited in APA 5th edition format). Supporting materials may include popular press, academic journals, etc. TOPICS Examples of sport finance topics, which lend themselves to position papers appear below: 1) Should student athletes receive monetary compensation? 2) Should the income of college coaches be restricted? Equal to that of college professors? 3) Revenue Sharing in MLB: for or against? 4) Salary Caps in Professional Sport: for or against? 5) Division I athletic programs - education or business? 6) Should publicly supported recreational/sports programs charge usage fees? 7) Is the NCAA a cartel? 8) Do female college sport teams receive the same opportunities and funding as male college sport teams? 9) Do campus recreation programs respond adequately...
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...television ads. Do this with the expectation that everyone plays by the same rules, and that the game they love, will be back next year. “For many years, the collectively bargained system—which has given the players union enhanced free agency and capped the amount that owners spend on salaries—has worked enormously well for the NFL, for NFL players, and for NFL fans.” Goodell’s first argument is clear, that the status quo has worked out “enormously well” for every party involved. Unfortunately this argument is problematic, given that it was actually the NFL whom decided to opt out of the collective bargaining agreement (CBA). In 2008 the Owners voted unanimously to exit the CBA after the 2010 season, even though the 2006 extension would have been valid through the 2012 season. The Owners shortened the deal by two years because they believed the players were receiving too much of the NFL’s adjusted gross revenues. From the beginning of his Op-ed article, Goodell’s begins to imply that it was the NFL Players Association (NFLPA) that walked out of the existing agreement when in actuality, the NFLPA offered to continue to operate under the CBA until a new agreement could be negotiated; the Owners refused and instituted a lockout, everything...
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...Marketing Midterm Essays 1. i.) Net Marketing Contribution is defined as Sales Revenues x Percent Gross Profit – Marketing Expenses; while Net Profit = Sales Revenue – Cost of Goods Soles – Operating Expenses. Sales revenues are made up by the following: Market Demand x Market Share x Average Selling Price x Channel Discount. Consequently, if one of these is changed, revenues can greatly vary as well and a marketing strategy with multiple product lines will cause further variability. With multiple product lines, the NMC is a functional tool in categorizing marketing profitability for each product line. To fully grasp the impact for marketing profitability though, net profit should be calculated, without the “least profitable” product. When there are fewer product lines, or the product lines are performing at a relatively comparable rate, the NMC will simply give you the numbers you need. Usually the Marketing Manager will find the Net Marketing Contribution most useful, while an accountant or financial analyst would be most interested in the net profit ii.) 4. Broad and narrow marketing definitions greatly affect the direction of every organization, once one is decided upon. As seen in this case, the NFL “broadly” defines their market, which plays a main factor in its success. A narrow market focus only addresses articulated needs of customers, which leaves a large part of the potential market unserved (unfulfilled market potential). The NFL brand on the other hand...
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...main advantages of brand equity: (1) Brand equity provides competitive advantage. For example Pixar is synonymous with the best animated movies for children. (2) Consumers are willing to acquire the branded item by paying premium as compared to another item with same identical function. For instance people are willing to premium price for a Gucci handbag when a cheaper alternative is readily available at a much lower price. Brand Equity in Sports Industry: In modern era, Sports have become a huge profit making industry. Brand equity is vitally important tool for the sports clubs now. Sports clubs are now employing to brand management strategies to increase revenues and provide more entertainment to their fan base. The biggest sports industry in the world is European football (soccer) which has numerous clubs in the leagues that have long term strategic brand management as the overriding philosophy for their marketing efforts. A long term focus on brand management strategies is warranted given the volatility of success in team sports. In the past, below par revenue accumulation has been a mjor concern for consistent success in team sports. This led to clubs resolving to short term tactics such as selling as their best players after a couple of seasons to get rid of their loans or firing their managers. These short term measures however did not make the clubs financially strong and after couple of goods seasons, the club would plunge into debt crisis. A conceptual...
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...and their livelihood on the line. He compiled seven strategies to negotiating a contract that helps athletes maximize their salaries: (1) be careful of the incentive laden contract, (2) know exactly how much of the contract is deferred, (3) only the signing bonus is guaranteed, (4) attempt to get a large signing bonus, (5) front-load your salary, (6) get a roster bonus after the third contract year, and (7) put off guaranteed base-salary until the last years. His strategies seem to be common sense but the average professional athlete entering the professional ranks is only 20 years old and has had little to no college education. The foundation for many successful renegotiated contracts is the athlete’s past performance and the team’s “what have you done for me lately” attitude. A productive player currently on the team’s roster has a better chance of signing a lucrative deal than one who has yet to prove himself. Contradictory to this is the player(s) selected in the annual sporting draft. The players selected highest in the draft are in a better position to negotiate a great deal than those drafted in lower rounds. Given these circumstances, how does a player and his agent strategize their negotiation and what tactics are used? What will be the target, resistance point, and best alternative to a negotiated agreement (BATNA)? Since negotiation is a process, there are many steps to take, many concessions to make, and the player must be well prepared especially if he is not a high...
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...the relationship between a company’s investment in sponsorship and its business performance. The results indicate that as a group corporations that consistently invested in sponsorship outperformed market averages and those who spent at an above average level outperformed those who spent at a below average level. Executive summary In 2009, North American-based companies spent a total of US$16.51 billion on sponsorship, 68% of which (US$11.28 billion) was spent with sports properties such as the US Olympic Committee, the National Football League and hundreds of local teams and athletes (IEG, 2010). However, without a universally accepted measurement metric (such as Gross Rating Points for broadcast media expenditures), many corporations 352 have struggled to compare the effectiveness of sponsorship against other more traditional marketing tactics (Meenaghan, 1999). Many have studied sponsorship’s impact on business results, such as increases in sales and market share...
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...Company Overview 3 Executive Summary 5 Mission Statement 6 Vision Statement 6 Objectives 6 Strategies 6 Products 8 External Assessment 9 Competition 9 AB/InBev 9 SABMiller 11 Heineken 12 Craft Beer 13 External Trends 14 AB/InBev Trends 14 Water Management 15 Energy Use 16 Recycling 16 Government/Political/Legal 17 Economics 17 Internal Assessment 18 Growth Strategies 24 AB/Inbev Strategies 25 SAB Miller Strategies 26 Heineken Strategies 27 Craft Beer Strategies 28 Growth Strategy Advantages v Disadvantages 28 Space matrix 29 SWOT Analysis 30 IFE Matrix 31 Company Overview As the largest brewer in the world, Anheuser-Busch InBev (AB/InBev) has had quite an intense but creative history. In 1852, George Schneider, St. Louis brewer and saloon operator opened the Bavarian Brewery. Four years later, he expanded into a larger location for his brewery to operate due to positive production. However, shortly after the second opening financial problems resulted in Schneider having to sell his brewery to various owners. In 1860, as the brewery reached a worsening financial position, William D’Oench, a local pharmacist, and Eberhard Anheuser, a wealthy German-born soap manufacturer, purchased the brewery and saved it from bankruptcy (Anheuser-Busch...
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...Research in Higher Education Journal Centering the business capstone course on the banking crisis: concrete integrated pedagogy Khalid A. Razaki Dominican University Wayne Koprowski Dominican University Peter Alonzi Dominican University Robert Irons Dominican University Abstract The recent financial crisis offers instructors rich material for business programs regarding the relations between accounting, business law, economics, and finance, as well as ethical issues. This paper offers a concrete approach to developing a business capstone course built around the financial crisis and the lessons it offers business students. Complete pedagogical modules are offered for each discipline, including suggestions for specific assignments in each discipline. Key Words: Capstone Course, Banking Crisis, Pedagogy Centering the Business Capstone Course, Pate 1 Research in Higher Education Journal INTRODUCTION A capstone course is essential in the business school curriculum. It provides each student the time to refresh their grasp of and to hone their ability to apply the principles, tools, and methods of the fields comprising the business curriculum. Further, it gives students the opportunity to integrate the insights of the various fields. The effectiveness of the capstone course can be enhanced by centering the capstone course on the 2008 financial crisis. All students share the common experience of the 2008 crisis’s violent shaking of the economy. It immediately affected each...
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...Sirius XM And the viable business model 2010 PART 1 Introduction Headquarters in New Yorok City, Sirius XM Radio, Inc. is the only provider of satellite radio, broadcasting more than 130 channels of digital audio via satellite to subscribers throughout the United States and Canada. The company's programming includes 65 channels of commercial-free music from every genre and 55 channels of news, sports, comedy, and talk radio. With impressive line ups of celebrity such as Howard Stern, Oprah Winfrey and Martha Steward there is something for everyone. Sirius's broadcasts are beamed from four in orbit satellites to more than 19.5 million subscribers who pay a monthly fee of $12.95 (Sirius). The service is mainly offered through new car sales with companies including Ford, Chrysler, and BMW among others penetrating 55% into the US market which accounts for 40% of their annual sales based on the 2009 annual report. Retailers like Wal-Mart, Best Buy and Radio Shack sell similar Sirius units for home and boat use. “Recently, Sirius has expanded to include music and comedy channels to mobile phone users; and music channels and select non-music channels over the Internet; a suite of data services; services that offer graphic information; and various real-time weather services, as well as operates a television service, which provides content designed primarily for children in the backseat of vehicles” (Sirius). These expansions are critical to the long term success of Sirius...
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...stories in film and television, the greatest moments in sports, unrivaled TV news coverage, and an array of satellite products and services that deliver Rupert Murdoch, Chairman & Chief Executive Officer, 21st Century Fox the world like never before. Our potential to expand our franchises outside the U.S. is limitless, and, with many international markets still in their infancy, largely untapped. It is through this lens – dynamic content, global reach and entrepreneurial culture – that we view both the foundation and future of 21st Century Fox. While I’m not one to look back, the past 12 months have made me especially proud. At the same time, our prospects for the next 12 months and beyond are as bright as ever. The following review of our cable business, sports programming, broadcast network, film and television assets and satellite services is a snapshot of the strong foundation we have built over the years, which will serve us well as we focus on the opportunities that lie ahead. Business Segment Overview The outstanding performance of our cable channels business has proved to be the backbone of our financial results, and its success continued this past year. In fiscal year 2013, the Cable Network Programming segment surpassed $10 billion in revenue for the first time in our history, and in many ways we feel like the business is just getting started. We also grew this segment’s operating...
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...** ASSESSMENT EXAM QUESTIONS – THESE ITEMS WILL DEFINITELY APPEAR ON THE FINAL EXAM ** CHAPTER 1 |1-113. |Marketing will not happen unless: | |A) |e-commerce is flourishing. | |B) |facilitators are present to simplify exchange. | |C) |middlemen are present to facilitate exchange. | |D) |two or more parties each have something they want to exchange for something else. | |E) |an economy is market-directed rather than planned. | |1-120. |MACRO-marketing: | |A) |is a social process. | |B) |tries to overcome "discrepancies of quantity" and "discrepancies of assortment." | |C) |tries to effectively match supply and demand. | |D) |tries to overcome the many separations...
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...steps to position the Company for the future. While 2011 brought us so much to cheer about, it was also marked by profound loss, with the passing of Steve Jobs. Steve’s incredible stewardship of Pixar, and his decision to sell Pixar to Disney in 2006, brought Steve into the Disney family, as a board member, a shareholder, a mentor, and a friend, and we were so lucky for all that he represented and all that he contributed. Disney, ESPN, ABC, Pixar, and Marvel are an amazing collection of brands that grow stronger every day as new platforms and new markets provide enormous new opportunities for high quality content and experiences. To that end, we are fortunate to have a talented group of employees who are committed day in and day out to building our brands around the world. Since becoming President and CEO in 2005, I have focused on three strategic priorities: creating high-quality family content, making experiences more memorable and accessible through innovative technology, and growing internationally. In fiscal 2011, net income attributable to Disney was a record $4.8 billion, an increase of 21% over last year, and revenue was a record $40.9 billion, up 7% from last year. Diluted earnings per share increased by 24% to a record $2.52. I’m particularly gratified by our outstanding performance in fiscal 2011, given the challenging global economic environment. Our financial and capital strength has allowed us to make important near and long term investments, two of the most significant...
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...CONNECT FEATURES Interactive Applications Interactive Applications offer a variety of automatically graded exercises that require students to apply key concepts. Whether the assignment includes a click and drag, video case, or decision generator, these applications provide instant feedback and progress tracking for students and detailed results for the instructor. Case Exercises The Connect platform also includes author-developed case exercises for all 12 cases in this edition that require students to work through answers to assignment questions for each case. These exercises have multiple components and can include: calculating assorted financial ratios to assess a company’s financial performance and balance sheet strength, identifying a company’s strategy, doing five-forces and driving-forces analysis, doing a SWOT analysis, and recommending actions to improve company performance. The content of these case exercises is tailored to match the circumstances presented in each case, calling upon students to do whatever strategic thinking and strategic analysis is called for to arrive at a pragmatic, analysis-based action recommendation for improving company performance. eBook Connect Plus includes a media-rich eBook that allows you to share your notes with your students. Your students can insert and review their own notes, highlight the text, search for specific information, and interact with media resources. Using an eBook with Connect Plus gives your...
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