Sport Finance

Description

Sport Finance, Third Edition, grounds students in the real world of financial management in sport, showing them how to apply financial concepts and appreciate the importance of finance in establishing sound sport management practices. Thoroughly updated to address the challenges facing today’s professionals, this text engages students with a practical approach to traditionally difficult financial skills and principles.

This edition of Sport Finance contains several new chapters and a greater emphasis on practical applications to better prepare students for the challenges they will face in the dynamic sport industry. New coauthor Mike Mondello brings additional financial expertise and practical knowledge to the expert author team, ensuring strong coverage of issues critical to the field. A new Budgeting 101 chapter provides a strong foundation for students to build on before delving into the influences on finance, capital structuring, financial management, and profits and losses. The final section of the text is completely new and covers current issues affecting the sport industry, providing realistic context for students entering the workforce. Readers will learn how various sport entities are dealing with the effects of recession and analyze the unique issues that affect various segments of the industry, including nonprofit, high school, college, professional, sporting goods, and international sport. Running case studies from the previous edition have been replaced with one comprehensive case study for a Division II athletic department in the final chapter. Students are encouraged to apply their knowledge as they explore the various revenues, expenses, and other financial issues occurring over the course of a year.

Teaching readers skills that will help them understand the drivers of financial success or failure in the sport industry, the text presents these features:

• Mid-chapter sidebars that provide practical applications based on topics of discussion
• End-of-chapter discussion questions that channel dialogue in the classroom
• Expanded ancillary materials, including a test package, presentation package, and instructor guide, that help create an exciting classroom environment

Sport Finance, Third Edition, allows students to grasp fundamental concepts in sport finance, even if they have not previously studied finance. By analyzing business structures, income statements, and funding options, students not only will learn basic finance, but they will also understand how those skills are used in the world of sport. This practical application of the text will help students apply financial concepts in their future careers and will allow professionals to further develop strategies and investment plans in the industry.

Contents

Acknowledgments
Preface

Part I Basics of Sport Finance

Chapter 1. Financial Issues in Sport
Managing Money
Financial Skills
Billion-Dollar Teams
Billion-Dollar Broadcasting Deals
Sports Sponsorship
Financing New Stadiums and Arenas
Conclusion

Chapter 2. Basic Financial Concepts
Revenues and Expenses
Overview of Accounting Concepts
Economic Versus Financial Analysis
Conclusion

Chapter 3. Budgeting 101
Importance of Financial Planning
Determining Financial Objectives
Financial Planning Process
Developing a Pro Forma Budget
Incorporating the Pro Forma Budget in the Business Plan
Conclusion

Part II Government and Other Influences on Finance

Chapter 4. Financial Systems and How They Operate
Financial Markets
Financial Institutions
Government Influence on Financial Markets
Environmental Conditions
Conclusion

Chapter 5. Business Structures, Bankruptcy, and Taxation
Nonprofit Organizations
Sole Proprietorships
General and Limited Partnerships
C Corporations
Subchapter S Corporations
Limited Liability Corporations and Partnerships
Taxation Issues in Sport Business
Bankruptcy
Conclusion

Part III Principles of Financial Analysis

Chapter 6. Financial Statements, Forecasts, and Planning
Types of Financial Statements
Types of Financial Ratios
Revisiting Financial Planning
Conclusion

Chapter 7. Time Value of Money
How Much Is Money Worth?
Risk
Conclusion

Part IV Capital Structuring

Chapter 8. Obtaining Funding
Unique Fund-Raising
Where the Money Comes From
Open Markets and Other Short-Term Borrowing
Long-Term Borrowing
Funding for Small or Minority-Owned Businesses
Conclusion

Chapter 9. Capital Stocks
Common Stock
Preferred Stock
Shareholders’ Rights
Going Public
Increasing Stock Values
Sport Stocks
Conclusion

Chapter 10. Bonds
Corporate Bonds
Costs of Issuing Bonds
Loan Repayment
Government-Issued Bonds
Government Assistance: Industrial Development Bonds
Capitalization Problems and Issues
Conclusion

Part V Financial Management

Chapter 11. Capital Budgeting
Goal of Capital Budgeting
Capital Spending
Cost of Capital
Capital-Budgeting Decision Methods
Risk and Capital Budgeting
Projecting Cash Flow
Conclusion

Chapter 12. Short-Term Financial Management
Review of Current Assets and Liabilities
Cash Management
Credit Management
Collections Management
Conclusion

Chapter 13. Inventory and Production Management
Business Costs
Inventory Management
Production Management
Conclusion

Part VI Profits and Losses

Chapter 14. Spending Earnings
Dividend Payments
Reinvestment
Mergers and Acquisitions
Conclusion

Chapter 15. Auditing
Purposes of Auditing
Categories of Audits
Internal Controls
Independent Audits
Auditing Process
Responding to Financial Problems
Conclusion

Chapter 16. Exit Strategy
Red Flags
Informal Reorganization
Informal Liquidation
Removal of Business Assets
Selling a Business
Conclusion

Part VII Current Issues

Chapter 17. Effect of the Recession on Sport Finance
Foreshadowing of Problems
Financial Problems That Emerged in the Recession of 2007
Conclusion

Chapter 18. Sport Finance Trends Across Four Sectors: A Current Analysis
Trends in High School Sports
Trends in College Sports
Trends in Professional Sport
Trends in International Sports
Conclusion

Chapter 19. Applied Sport Finance
Assignments
Conclusion

Appendix A Time Value of Money
Appendix B Formulas

Glossary
References
Suggested Resources
Index
About the Authors

Audiences

A text for upper-undergraduate and graduate sport finance and related courses; a professional reference for better understanding of sport finance issues.