Besides all the calculations that a corporation can make concerning its value, earnings, liquidity, and so on, investors can use several techniques to determine whether it was profitable to invest in the company.
Given the complexity within some organizations, categorizing every dollar spent by a business is difficult because some expenses are grouped into a generic category called general expenses instead of being recorded separately.
Over the previous decade, athletic expenses have outpaced athletic revenues in all National Collegiate Athletic Association (NCAA) Divisions. Consequently, collegiate athletic programs are facing unprecedented financial challenges.
Sport Finance, Third Edition, allows students to grasp
fundamental concepts in sport finance, even if they have not previously
studied finance. The text engages students with a practical approach to
traditionally difficult financial skills and principles.
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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.
Part I Basics of Sport Finance Chapter 1. Financial Issues in Sport
Billion-Dollar Broadcasting Deals
Financing New Stadiums and Arenas
Chapter 2. Basic Financial Concepts
Revenues and Expenses
Overview of Accounting Concepts
Economic Versus Financial Analysis
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
Part II Government and Other Influences on Finance Chapter 4. Financial Systems and How They Operate
Government Influence on Financial Markets
Chapter 5. Business Structures, Bankruptcy, and Taxation
General and Limited Partnerships
Subchapter S Corporations
Limited Liability Corporations and Partnerships
Taxation Issues in Sport Business
Part III Principles of Financial Analysis Chapter 6. Financial Statements, Forecasts, and Planning
Types of Financial Statements
Types of Financial Ratios
Revisiting Financial Planning
Chapter 7. Time Value of Money
How Much Is Money Worth?
Part IV Capital Structuring Chapter 8. Obtaining Funding
Where the Money Comes From
Open Markets and Other Short-Term Borrowing
Funding for Small or Minority-Owned Businesses
Chapter 9. Capital Stocks
Increasing Stock Values
Chapter 10. Bonds
Costs of Issuing Bonds
Government Assistance: Industrial Development Bonds
Capitalization Problems and Issues
Part V Financial Management Chapter 11. Capital Budgeting
Goal of Capital Budgeting
Cost of Capital
Capital-Budgeting Decision Methods
Risk and Capital Budgeting
Projecting Cash Flow
Chapter 12. Short-Term Financial Management
Review of Current Assets and Liabilities
Chapter 13. Inventory and Production Management
Part VI Profits and Losses Chapter 14. Spending Earnings
Mergers and Acquisitions
Chapter 15. Auditing
Purposes of Auditing
Categories of Audits
Responding to Financial Problems
Chapter 16. Exit Strategy
Removal of Business Assets
Selling a Business
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
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
Chapter 19. Applied Sport Finance
Appendix A Time Value of Money
Appendix B Formulas
About the Authors
A text for upper-undergraduate and graduate sport finance and related
courses; a professional reference for better understanding of sport
Gil Fried, JD, is professor and chair of the management and sport
management department in the College of Business at the University of
New Haven. He worked as a financial analyst with Paul Kagan Associates
and analyzed numerous broadcasting contracts. He has written numerous
books and articles, taught graduate and undergraduate courses in sport
finance, and lectured on finance topics to various audiences. Besides
teaching, Fried coordinates the management of sports industries graduate
program at the University of New Haven.
Fried enjoys playing badminton and softball and being involved in his
Tim DeSchriver, EdD, is an associate professor in the department
of business administration of Lerner College of Business and Economics
at the University of Delaware. DeSchriver has worked as a field
economist for the U.S. Department of Labor and has taught undergraduate
and graduate instruction in sport finance and sport economics since
1998. He has authored and contributed to several books and sport
finance–related publications in refereed journals.
DeSchriver enjoys road cycling, mountain biking, and hiking in his spare
Michael Mondello, PhD, is an associate professor in the
department of management at the University of South Florida. Mondello
teaches classes in the sport and entertainment MBA program. His research
interests include finance and economics of sport organizations, and his
work has been published in the International Journal of Sport
Finance, Economic Development Quarterly, Sport Marketing Quarterly,
International Journal of Sport Management, Journal of Sports Economics,
and Journal of Sport Management. Before his appointment at USF,
he was a faculty member at both the University of Florida and Florida
Instructor guide. Includes chapter outlines, chapter summaries, two or three ideas per chapter for assignments, lab activities, class projects, and the class discussion topics from the book.
Test package. Features a bank of more than 350 multiple-choice questions. The test package is available for use through multiple formats, including a learning management system, Respondus, and rich text.
Presentation package. Includes more than 400 slides that instructors can use for class discussion and presentation. The slides in the presentation package can be used directly within PowerPoint or printed as transparencies or handouts for distribution to students. Instructors can easily add, modify, and rearrange the order of the slides as well as search for content based on key words.