Developing a Cash Budget for the Savannah Squares
in Case Studies in Sport ManagementClick name to view affiliation
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Like many sport organizations, the Savannah Squares Minor League Baseball franchise is a seasonal business. The team earns most of its revenue during the playing season and must manage its cash effectively throughout the fiscal year. Fixed costs and other cash expenditures often fall into a pattern that differs from the cash receipts schedule. Poor cash management, inaccurate budgets, and improper execution of annual budgets lead to costly cash shortfalls. For the Savannah Squares, annual pro forma budgets have predicted tight but positive earnings for the past few years; however, monthly shortages have led to penalties and late fees that ate into profits and caused financial strain on the organization. Using historical trends and other available data, Juan Hernandez has decided to create a cash budget to identify months with cash surpluses and shortfalls so that he can implement better cash management strategies.
Barnhill (cbarnhill@georgiasouthern.edu) is corresponding author, https://orcid.org/0000-0002-1329-2060
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