Articles on Sports Management

Introduction to Finance in Sports Management

The business of sports is one of the largest businesses in the world today. Across the world, there is a...

Sports Management Companies: Sources of Financing

There are many sports management companies across the world that can be classified as large corporations. Many of these corporations...

What is Sports Franchising?

We all know that professional sports teams are run like a business across the globe. This means that these sports...

Anatomy of a Sports League Franchise Agreement

We have already discussed that sports leagues across the world follow the franchise model. Franchising is at the core of...

Revenue Sharing in Sports Leagues

The economics of sports leagues is quite complicated. This is because of various factors. However, two of the most important...

Issues in Revenue Sharing in Sports Leagues

A sports league becomes profitable when it is successfully run over many years. This means that almost all the teams...

How Salary Caps Work in Sports Leagues?

It is common knowledge that sports leagues all over the world rake in billions of dollars when it comes to...

Advantages of Salary Caps

In the previous article, we have already discussed what salary caps are and what are the objectives behind implementing them....

Disadvantages of Salary Caps

In the previous couple of articles, we have tried to understand what salary caps are. We also know the different...

Alternative To Salary Caps: Luxury Tax

The effectiveness of salary caps in meeting the stated objectives has always been a topic of debate. There are many...

Sources of Revenue: Broadcasting Rights

The consistent generation of revenue is important for the success of any sports league. If the organizers of any of...

How are Broadcasting Rights Revenue Split Amongst Franchises?

In the previous article, we have already seen the importance of broadcasting revenue. We also know what the shortcomings of...

Common Issues with Revenue Generated from Broadcasting Right

In the previous article, we have already seen that broadcasting rights and the revenue from the sale of these broadcasting...

Digital Media Rights and Sports League Financing

Technology all over the world has been advancing at a breakneck speed. Just a few decades earlier, radio was the...

Sports League Sponsorships: A Primer

Sports league sponsorships are a very important source of financing for many leagues across the world. The revenue derived from...

Types of Sponsorships Given to Individual Players

In the previous article, we have already seen that sponsorship is one of the predominant ways in which a sports...

The Economics of Sports Leagues

The discipline of economics is generally valid for all industries across the world. This is because the basic fundamental economic...

Why Do Sponsors Fund Teams in Sports Leagues?

In the previous articles, we have already seen that the sponsorship of sports teams can happen at multiple levels. We...

Title Sponsorship and its Disadvantages

We already know that modern sponsorship has evolved into a complex endeavour. Earlier, there used to be just one type...

Advantages of Title Sponsorship

In the previous article, we have already understood the meaning of title sponsorship. We also know why it is one...

Team Sponsorship: Advantages and Disadvantages

In the previous articles, we have already come across the concept of team sponsorship. We have seen how teams can...

4 Main Objectives of Sponsorships

In the previous few articles, we have already seen that sports sponsorships have been witnessing a significant rise in the...

Factors Affecting Selection of Sponsorship of Sports Event

In the previous few articles, we have already studied the pros and cons of sponsorship. However, we have come to...

Risks Associated with Sponsorship from Sponsor’s Perspective

We have already seen in the previous articles that the financial size of the global sponsorship market is increasing at...

Risks Associated with Sponsorship from Sponsored Entity’s Perspective

In the previous article, we have already seen that sponsorship is not really a risk-free activity. We became aware of...

Level Based Sponsorship (Tiered Sponsorship)

In the previous articles, we have already seen what sponsorship is and what are the various advantages and disadvantages which...

Issues With Sponsorship Levels

In the previous article, we have already seen what sponsorship tiers or sponsorship levels are. We have also seen the...

Evaluating the Effectiveness of Sports Sponsorships

In the previous article, we have already seen how multinational companies spend large sums of money in order to buy...

Source of Revenue: Fantasy Sports Leagues

We already know that sports leagues have several sources of revenue. Some of these sources have been continuing for a...

Benefits of Fantasy Sports Leagues

In the previous article, we have already seen what fantasy sports leagues are. We also know why sports leagues across...

Source of Revenue: Sports Merchandising

In the previous few articles, we have already seen that sports leagues are able to generate a huge amount of...

Issues With Merchandising

In the previous article, we have already studied what merchandising is. We now know why it is an important source...

How are Organizational Aspects of Sports Leagues Linked to Finance

There are various types of sporting leagues across the world. These leagues cater to different sports in different parts of...

The Optimal Size of a Sports League

There are a large number of sporting leagues around the world. However, when we study all the leagues, we find...

Why are Professional Sports Franchises Increasing in Value?

The sports business has traditionally not been a very lucrative one. It was common for the valuation of sports franchises...

Use of Price to Revenue Ratio in Valuing Sports Franchises

The valuation of a sports franchise is a very difficult task. This is because a lot of the rules that...

Factors Impacting the Valuation of a Sports Franchise

Sports franchises are also business entities just like other private companies. Hence, it is possible for the owners of these...

Income Approach to Valuation of Sports Franchises

From the previous articles, we now know that sports franchises across the world are now being viewed as commercial entities....

Valuation of Sports Franchises: Discount Rate Calculation

In the previous article, we have already seen how the valuation of a sporting franchise can be found using the...

Issues in Determining Discount Rate for Valuation of Sports Franchises

In the previous article, we have already understood the method used for deriving the discount rate which is used while...

Valuation of Sports Franchise: Replacement Cost Approach

In the previous few articles, we have already come across the income-based approaches that are used in order to value...

Replacement Cost Approach Advantages and Disadvantages

In the previous article, we have already witnessed what replacement cost theory is and how it can be used to...

Pension Obligation Bonds

Pension funds across the world are facing a significant financial crisis. This is because, for a very long time, they...

Valuation of a Sports Franchise: Market Approach

In the previous articles, we have already come across a couple of methods used for the valuation of a sports...

How Team Performance Affects Valuation?

Sporting franchises are often said to be confused about what their objectives should be. One chain of thought believes that...

Issues With the Valuation of Sports Franchises

The valuation of sports franchises is often quoted widely in the public domain. This is generally done based on the...

Impact of Technology on Sporting Finance

The sporting industry has undergone a lot of changes in the recent past. These changes have been related to various...

Revenue From Releasing Players for International Tournaments

Professional sports athletes play for certain sports franchises throughout the year. However, these same players also represent their nation when...

Private Equity Investments in the Sports World

Sporting franchises across the world have traditionally been owned by wealthy individuals. This has largely been because of the fact...

Disadvantages of Private Equity Investment in Sporting Franchises

In the previous article, we have already seen that private equity firms are making a beeline in order to invest...

Why do Sporting Franchises Lease Out Stadiums?

Almost every sporting franchise needs a stadium or a venue in order to play professionally. This is because the team...

Accounting for Stadium Leases

In the previous article, we have already established that there are many sporting franchises across the world that prefer to...

Lease Accounting: Right of Use Asset

In the previous couple of articles, we have already seen that sporting franchises prefer to lease out stadiums instead of...

Public-Private Partnership in Stadium Financing

In the previous articles, we have already seen that funding a stadium can be very difficult from a financial point...

Advantages of Public Private Partnership Model

Building stadiums or other sporting venues is an essential activity that plays a crucial role in the success or failure...

Risks in Public-Private Partnerships

In the previous article, we have already seen that building stadiums where professional sports franchises operate is a very expensive...

What is Sports Tourism?

There is a lot of discussion that goes on about the economic impact of sporting events. It is commonly believed...

Pros and Cons of Sports Tourism

In the previous article, we discussed the concept of sports tourism. We have seen how sports tourism has a wide...

How Sporting Franchises Help Billionaires to Plan Their Taxes

Over the years, the sporting business has quietly metamorphosized into a big business. The amount of money changing hands in...

What is Jock Tax and How is it Calculated?

In the previous articles, we have already seen that the owners of sporting franchises are able to evade taxes even...

Jock Taxes: Pros and Cons

In the previous article, we have already understood what Jock Taxes are. We also had a closer look at the...

Valuation of a Player in Sports

In the previous few articles, we have already seen that the valuation of a sports franchise is heavily influenced by...

Financial Doping and Financial Fair Play

The business of sports leagues is inherently intertwined with the finances that the franchises have. It may appear that the...

Pros and Cons of Financial Fair Play Rules

In the previous article, we have already seen how certain football clubs in Europe have been using their money power...

Debt Funding in Sports Franchises

Sporting franchises are also business organizations that operate just like other business entities. Therefore, just like other business entities sports...

Debt Ceiling in Sporting World

In the previous articles, we have already seen that sporting franchises are required to raise a lot of capital at...

Pros and Cons of Debt Ceilings in Sports Leagues

In the previous article, we have already been introduced to the concept of debt ceiling as well as the various...

Securitization and Sports Finance

The business of sports can be asset-intensive and can lead to negative cash flows for a number of years. Sporting...

Types of Securitizations in Sporting Franchises

Securitization is now becoming an integral part of the way in which international sporting franchises finance themselves. There is no...

Advantages of Securitization in Sports

In the previous couple of articles, we have already seen what securitization is and how it is used in the...

Disadvantages of Securitization in Sports

In the previous articles, we have already seen how the use of securitization has grown in sports. We also know...

Accounting for Player Contracts

Sporting franchise clubs are business entities at the end of the day. Even though some of them may not be...

Accounting for Player Contracts – Advanced Scenarios

In the previous article, we have already seen that accounting for sporting franchises involves certain scenarios that are specific only...

Impairment in Sporting Franchises and Player Contracts

In the previous two articles, we have already established that the sporting industry has this unique practice of recognizing human...

Accounting for Players Who Have been Promoted Internally

It is common for sporting franchises to create an internal system so that young players with high potential can be...

Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional Franchises

In the previous article, we have already come across some of the reasons why the government should not encourage funding...

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