Sport Finance

by Fried, Gil; Shapiro, Steven J.; Deschriver, Timothy D.

• ISBN13: 9780736001830
• ISBN10: 0736001832
• Format: Hardcover
• Copyright: 2003-01-01
• Publisher: Human Kinetics

Summary

>Sport Finance> draws on contemporary examples from marketing, sponsorship, facility construction, and sport law to illustrate the crucial role that money plays in any sport business. The text discusses how the receipt, disbursement, and utilization of money can foster future growth in sport businesses, giving students an advantage in this expanding field.The six-part text uses four case studies to explain the principles of finance in sport-specific examples, effectively illustrating the ins and outs of sport finance and improving student comprehension. The fluid combination of sport and finance allows novices as well as seasoned pros to grasp the importance and impact of money in all sport business decision-making processes.The text includes the following:--Detailed objectives at the beginning of each chapter improve comprehension by focusing on important topics.-End-of-chapter assignments, discussion questions, and suggested research projects facilitate discussion and test learning and enhance application of specific concepts.-Key points throughout the chapter help students review for exams and get the most information out of each chapter.-Comprehensive analysis of the entire spectrum of finance-related issues, from budgeting and planning to acquisitions and liquidation, helps readers understand the depth and breadth of sport finance careers.Part I,"The Basics of Sport Finance, " reviews the importance of finance in sport with a thorough analysis of the various issues within the field.Part II,"Principles of Financial Analysis, " addresses the full spectrum of information that sport administrators will need to answer questions and solve problems on the job.Part III,"Capital Structuring, " examines where the money of sport is located, from venture capital and stock offerings to corporate bonds.Part IV,"Capital Budgeting, " discusses where the money goes, reviewing typical expenses and illustrating how to budget for them.Part V,"Profits, " highlights the profit distribution process, including retained earnings, dividends, and business acquisition.Part VI,"Financial Troubleshooting, " analyzes issues such as taxation and fiscal risk management, providing insight into tracking and accounting for money in accordance with industry and government standards.With the recent push to build new sports facilities and the resulting financial projections raised by project proponents and opponents, the need for comprehensive sport financial instruction has never been more clear. >Sport Finance> provides the broadest, deepest, and best look yet at the impact of finance in sport, giving readers the fundamental skills they need to apply accounting and business principles in sport management careers.

Author Biography

Gil Fried is an associate professor at the University of New Haven School of Business in Connecticut, where he teaches sport finance at the graduate and undergraduate levels.

Table of Contents

Preface	ix
Acknowledgments	xiii
Introduction to the Case Studies	1	(6)
Part I The Basics of Sport Finance
Financial Issues in Sport	7	(14)
Billion-Dollar Teams	11	(1)
Can Anyone Loan Me Several Billion?	12	(1)
Stocks for Sale	13	(1)
Merger Mania	13	(1)
Sport Apparel Blues	14	(1)
Sport Sponsorship	15	(1)
Financing New Stadiums and Arenas	15	(6)
Basic Financial Concepts	21	(14)
Revenues and Expenses	22	(2)
Budgets	24	(3)
Proper Documentation	27	(1)
Determining Financial Objectives	27	(1)
An Overview of Accounting Concepts	28	(7)
Financial Systems and How They Operate	35	(22)
Financial Markets	36	(6)
Financial Institutions	42	(10)
Government's Influence on Financial Markets	52	(2)
Environmental Conditions	54	(3)
Business Structure	57	(10)
Sole Proprietorships	58	(1)
General and Limited Partnerships	59	(1)
Subchapter S Corporations	60	(1)
C Corporations	61	(1)
Limited Liability Corporations and Partnerships	62	(5)
Part II Principles of Financial Analysis
Financial Statements, Forecasts, and Planning	67	(24)
Types of Financial Statements	68	(5)
Types of Financial Ratios	73	(7)
Preparing Financial Forecasts and Budgets	80	(8)
Break-Even Analysis	88	(3)
Time Value of Money	91	(12)
How Much Is Money Worth?	92	(4)
Risk	96	(7)
Approaches to Financial Planning	103	(24)
Data Gathering	106	(5)
The Financial Planning Process	111	(6)
Developing a Pro Forma Budget	117	(1)
Incorporating the Pro Forma Budget in the Business Plan	118	(9)
Part III Capital Structuring
Obtaining Funding	127	(24)
Where the Money Comes From	129	(7)
Open Markets and Other Short-Term Borrowing	136	(10)
Long-Term Borrowing	146	(2)
Funding for Small or Minority-Owned Businesses	148	(1)
Basic Tools	149	(1)
Capital Acquisition Assistance	150	(1)
Capital Stocks	151	(20)
Types of Stock	152	(1)
Shareholders' Rights	153	(4)
Going Public	157	(8)
Increasing Stock Values	165	(2)
Sport Stocks	167	(4)
Bonds	171	(18)
Corporate Bonds	172	(4)
Costs of Issuing Bonds	176	(1)
Loan Repayment	177	(2)
Government-Issued Bonds	179	(4)
Government Assistance: Industrial Development Bonds	183	(1)
Capitalization Problems and Issues	184	(5)
Part IV Financial Management
Capital Budgeting	189	(24)
Cost of Capital	191	(9)
Capital Budgeting Decision Methods	200	(5)
Risk and Capital Budgeting	205	(1)
Projecting Cash Flow	205	(8)
Short-Term Financial Management	213	(10)
Review of Current Assets and Liabilities	214	(1)
Cash Management	215	(4)
Credit Management	219	(1)
Collections Management	220	(3)
Inventory and Production Management	223	(24)
Business Costs	224	(4)
Inventory Management	228	(11)
Production Management	239	(8)
Part V Profits
Taxation and Legal Issues	247	(14)
Benefits of Corporate Status	248	(1)
Taxes	249	(7)
Financial Risk Management	256	(5)
Spending Earnings	261	(18)
Dividend Payments	262	(3)
Reinvestment	265	(1)
Mergers and Acquisitions	266	(8)
Current Sport-Industry Examples	274	(5)
Part VI Financial Troubleshooting
Auditing	279	(18)
The Purposes of Auditing	280	(1)
Categories of Audits	281	(1)
Internal Controls	282	(1)
Independent Audits	282	(4)
The Auditing Process	286	(6)
Detecting Fraud	292	(5)
Exit Strategy	297	(12)
Red Flags	298	(1)
Informal Reorganization	299	(1)
Informal Liquidation	300	(1)
Bankruptcy Protection	300	(3)
Removing Business Assets	303	(1)
Selling a Business	304	(5)
Appendix A Time Value of Money Tables	309	(8)
Appendix B Formulas	317	(4)
Appendix C Suggested Resources	321	(2)
Glossary	323	(30)
Bibliography	353	(8)
Index	361	(14)
About the Authors	375