Time Value of Money (TVM) is an essential concept within finance, yet its fundamentals confuse many students. This case offers the TVM Decision Tree to guide students to logical solutions through a step-by-step approach that requires critical thinking about cash flows. Students follow a sport agent as she reviews contract offers for her client. She received four offers with payments structured in wildly different ways, including single payments, growing annuities, and delayed annuities. She must use her knowledge of TVM and the TVM Decision Tree to determine which contract will provide her client with the largest contact in terms of PV. She will find that the contracts with the largest nominal values are not necessarily worth the most in terms of PV. She will also see the impact that different discount rates can have in making her decisions, as well as learn about deferred compensation within professional sports.
Stephanie G. Kerrigan, Evan M. Forman, Mitesh Patel, Dave Williams, Fengqing Zhang, Ross D. Crosby and Meghan L. Butryn
are not (ie, a deposit contract), may be an even stronger form of loss incentive, as it represents true loss rather than perceived loss. Despite strong theoretical support, deposit contracts have infrequently been studied for PA promotion. Two studies included deposit contracts as small parts of a
James Reese, Mark Dodds, Richard Southall and Kevin Heisey
A professional sport team began play in a new stadium. Although the old facility had no such seat inventory, one of the features at the new facility was the addition of 8,800 club seats. According to the marketing materials provided by the team, the new club-seat inventory offers amenities not available at the old stadium, including upscale concessions, a heated and air-conditioned lounge, padded seats, and increased restroom capacity. After the opening of the new stadium, fans complained about their club seat experience, including long concessions and restrooms lines (typically longer than at the old facility) and consistent premium food shortages. In the off-season, the team began the process of sending ticket-renewal invoices for the upcoming season. Approximately 100 club-seat holders declined to renew, claiming the team breached the contract by not providing the services promised. The team attempted to negotiate with the affected customers with limited success.
The restrictive covenants contained in the professional baseball player’s standard contract can be justified on grounds of being the most efficient solution to the problem of transaction costs in an industry where the difficulty of selecting and managing talent is acute. Contract law legitimates these restrictive covenants. Closer scrutiny of the history and sociopolitical context of the employment relationship in baseball underlines the role of power differentials in determining the parameters within which transacting for labor takes place. Not only the reserve clause but also the negative covenant in the player’s contract has been important in providing the conditions for the efficient trading of players.
Alanna Harman and Alison Doherty
This study examined the psychological contract of volunteer youth sport coaches to determine the content, variation, and influences to its development. Interviews were conducted with 22 volunteer coaches of team sports, representing different levels of play (recreational, competitive), coaching tenure (novice, experienced), and gender (female, male), who were sampled to account for the potential variation based on these demographic factors. The findings revealed that volunteer coaches possessed both transactional and relational expectations of themselves and their club. Coaches’ most frequently cited expectations of themselves were technical expertise (transactional), and leadership (relational), while their most frequently cited expectations of the club were fundamental resources and club administration (transactional), and coach support (relational). Variation was found by different levels of play (recreational, competitive) and coaching tenure (novice, experienced). The coaches’ psychological contract was shaped predominately by sources external to the club. Implications for managing the psychological contract of volunteer youth sport coaches and directions for future research are discussed.
May Kim, Galen T. Trail, Jon Lim and Yu Kyoum Kim
Retaining volunteers is a critical issue for sport organizations utilizing volunteer labor. Based on the theory of planned behavior, the theory of work adjustment, psychological contract theory, two frameworks (person-environment fit and empowerment), and previous empirical results, we proposed and tested three models to explain intention to continue volunteering with 224 volunteers from the Special Olympics State Summer Games. We accepted a model in which Empowerment fully mediated the relationship between Person-Environment Fit and Intention to Continue Volunteering. We also found that Psychological Contract Fulfillment moderated the relationship between Fit and Empowerment.
Ted S. Sturman and Ryan Thibodeau
Research on the effects of extrinsic rewards on subsequent levels of intrinsic motivation and performance has produced conflicting results. In the present study, player statistics were obtained on 33 major league baseball free agents for two seasons prior to, and two seasons after, the signing of the contract. Results suggest that the new contract, particularly its substantial pay raise, caused a decrease in immediate postcontract performance. In addition, there was some evidence that performance output recovered to its precontract level in the second season postcontract. Findings are discussed with respect to previous work on intrinsic to extrinsic motivational shifts and the overjustification effect.
Gretchen A. Schlabach
The profession of athletic training has not identified and explicitly articulated shared professional values (PV). Shared PV are the seeds of professionalism, and deeply rooted motivators of professional action which support the social contract through self-regulation. The purpose of this exploratory study was to: (1) discover shared PV in athletic training, (2) examine how important PV are to the National Athletic Trainers’ Association (NATA) membership, and (3) how important is it for our association to explicitly articulate professional values. This study found that truth/honesty, integrity, and respect are significant athletic training PV. PV are important (96.8%), and it is important for the association to explicitly articulate PV (96.5%). The declaration of shared PV will promote values-based behaviors and internally motivate a duty to uphold the legal, ethical, and regulatory standards of the profession. Dedication to our professional responsibilities will sustain the social contract and encourage public trust.
Ulrike H. Mitchell, J. William Myrer, J. Ty Hopkins, Iain Hunter, J. Brent Feland and Sterling C. Hilton
Some researchers have suggested that an alteration of stretch perception could be responsible for the success of the contract-relax (CR) stretch, a stretch technique derived from proprioceptive neuromuscular facilitation (PNF).
This study was conducted to determine if the alteration of the stretch perception is a possible explanation for the range of motion (ROM) gains of the CR stretch.
Eighteen subjects performed two stretches in randomized order: the slow stretch and the CR stretch.
Main Outcome Measure:
The stretch intensity was controlled. The stretch force was measured and compared between the slow stretch and CR stretch.
There was a significant difference between the stretch force that could be applied in the PNF stretch (126.0 N) and the slow stretch (108.4 N); P = 0.00086. The average stretch tolerance progressively increased with successive trials from 120.6 N in the first trial to 132.4 N in the fourth trial.
The alteration of stretch perception plays a role in the success of the CR form of PNF stretching. At least four repetitions of the CR stretch are recommended to get the greatest ROM gain.
Kimberly S. Peer
Sports medicine professionals are facing new dilemmas in light of the changing dynamics of sport as an enterprise. These changes have considerable ethical implications as sports medicine team members are placed in challenging ethical decision-making situations that often create values tensions. These values conflicts have the potential to threaten and degrade the trust established through the mutual expectations inherent in the social contract between the health care providers and society. According to Starr,1 the social contract is defined as the relationship between medicine and society that is renegotiated in response to the complexities of modern medicine and contemporary society. Anchored in expectations of both society and the medical professions, this tacit contract provides a strong compass for professional practice as it exemplifies the powerful role and examines the deep responsibilities held by health care providers in our society. Although governed by professional boards and organizational codes of ethics, sports medicine professionals are challenged by the conflicts of interest between paternalistic care for the athlete and autonomous decisions often influenced by stakeholders other than the athletes themselves. Understanding how the construct of sport has impacted sports health care will better prepare sports medicine professionals for the ethical challenges they will likely face and, more importantly, facilitate awareness and change of the critical importance of upholding the integrity of the professional social contract.