Sport Finance / Edition 3

by Gil Fried, Timothy D. DeSchriver, Michael Mondello

Overview

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.

Product Details

ISBN-13:	9781450421041
Publisher:	Human Kinetics Publishers
Publication date:	01/30/2013
Edition description:	Third Edition
Pages:	421
Product dimensions:	8.70(w) x 11.10(h) x 1.30(d)
Age Range:	18 Years

About the Author

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 community.

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 time.

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 State.

Table of Contents

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

Interviews

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