group’s sentiments and long history with SHRC and were concerned these individuals may resign if the board enacted undesired change. Current Challenge At the behest of the club’s board, Wilson knew his task: he was to develop financing strategies to address (perceived) shortcomings of the club. His most
Chris Chard, Liam McCrory and Kirsty Spence
By Gil Fried, Timothy D. DeSchriver, and Michael Mondello. Published in 2020 by Human Kinetics , Champaign, IL. $109.00. 376 pp. ISBN: 9781492559733 Sport finance instructors will be excited to see the fourth edition of Sport Finance released, as Gil Fried, Timothy D. DeSchriver, and Michael
Mark E. Moore
environmental conditions, sport management and sport communication professionals must possess a working knowledge of fiscal management. This fourth edition of Financing Sport provides a thorough and insightful overview of the financial management of the sport enterprise. This textbook equips sport
Herbert F. Moorhouse
In Britain, professional football (soccer) is the major sport and has been the focus of considerable sociological study. This paper argues that previous studies, which have concentrated on football’s relation to class relations and class cultures, have erred by ignoring the role of football finance. Evidence is provided about the relation in Britain between two professional leagues, the English and the Scottish; and the financial situation of four major clubs, two from each side of the border, is traced to reveal significant differences between them. These variations are then used to show how particular patterns of football finance feed into the symbols and images that surround the game in Scotland and that feed into the popular culture of that country in a way which preempts class as the most fruitful line of analysis.
Joris Drayer and Daniel A. Rascher
Teaching a graduate level sport finance class can be quite complex. With a variety of concepts such as pricing, budgeting, and public funding, to convey in a limited amount of time, new forms of pedagogy are necessary to assist instructors as this technologically-advanced generation enters into academia. Subsequently, technology has been created to apply basic concepts related to finance to the complexity of a professional sports organization. One such program is the Oakland A’s Baseball Business Simulator. Through interviews and “emotional recall” (Ellis, 2004), this evaluative case study seeks to determine the effectiveness of this technology within this environment.
Daniel A. Rascher and Michael M. Goldman
Shelley Valdez is a recent finance team hire at Duke’s Sporting Goods Store. She has 1 week to identify, gather, and analyze relevant information to calculate the financial value of the business, using the income and market approaches. She has also been asked to consider Duke’s liquidation value, and comment on the strategic options these calculations point to, before a board meeting of the owners next week.
B. David Tyler
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.
Lauren E. Brown
John L. Crompton, Dennis R. Howard and Turgut var
This paper identifies the pervasiveness, magnitude, and trends of public investment in major league sports facilities and describes the forces that typically direct and dictate the debate. In 2003 dollars, the total investment in facilities currently being used by franchises in the four major leagues in North America is almost $24 billion, of which over $15 billion was contributed by public entities. Four eras of funding these facilities are identified and described: the Gestation Era 1961-1969; the Public Subsidy Era 1970-1984; the Transitional (Public-Private Partnership) Era 1985-1994; and the Fully-Loaded (Private-Public Partnership) Era post 1994. There is a consistent trend of private contributions increasing across these eras, but public sector contributions remain substantial. The final section of the paper discusses the four primary sources of momentum undergirding this public investment: owner leverage, the community power structure, the stimulus of increasing costs, and the competitive balance rationale.
Gil Giles has a passion for softball and wanted to turn his passion into his second career. After retiring from the police force he decided to invest at least $2.8 million (including borrowing $1.7 million) in building a six field sportsplex. Although the research and the numbers did not support his decision, his passion was so strong that he decided to take the risk. While he enjoys the thought of owning a sports facility, the reality of day to day management and paying the bills is another story. This case study examines the financial and strategic underpinning for building the facility. From analyzing potential revenue streams and expenses to the profit margin for concession goods, Gil will need to pinch every penny to make his facility financially viable. Luckily he hired a manager to help run the facility, but if he had several rain-outs, or fails to attract the leagues he hopes for, his financial plans could be ruined. Is it ever safe to have a business model with such thin margins?