This article explains the background of financial management in the sports management industry. It provides pointers as to why the sports management industry is both unique and complex when it comes to the issue of financial management.
Articles on Sports Management
This article explains the various sources of funding which are used by sporting franchises. It also provides examples related to different sources of funding and explains issues related to them.
This article explains the concept of sports franchising. First, it provides a definition of sports franchising. Then it explains the pros and cons of the franchising model.
This article explains the concept of a franchising agreement in the context of sports leagues. It also explains some of the common issues which arise while drafting and executing franchise agreements. It also clearly explains the main points related to the financial and commercial aspects of sports leagues and how they can be managed with franchising agreements.
This article explains the complexity associated with deciding the revenue mix in sports leagues. It explains some of the characteristics of the revenue mix and how it impacts the overall finances of the sports league.
This article explains the common issues related to revenue-sharing arrangements between franchises and franchisors. It explains how these issues impact the decisions of franchises and therefore impact the economic future of the entire league.
This article explains the concept of salary caps and salary floors. It explains the different types of caps and floors. It also explains the stated objectives which influence the implementation of these rules.
This article explains the advantages of the salary cup. It explains why the presence of a salary cap is advantageous to different types of players, franchises, and even the league as a whole.
This article explains the disadvantages of the salary cap system. It explains how the salary cap system has significant disadvantages for almost all the parties involved.
This article explains the concept of the luxury tax. It provides details about how the luxury tax system is implemented. It also explains the objectives of this tax and the effect that it has on the league.
This article explains the concept of broadcasting rights. It explains the various forms of broadcasting rights and also explains how sports leagues across the world are able to monetize their content.
This article explains why broadcasting revenues are sold in a centralized manner as opposed to a decentralized manner. It also explains the factors which are taken into account while deciding how the revenues should be distributed.
This article explains the limitations of using broadcasting revenue to generate income for sports leagues. It also explains the details of each limitation and how they impact the sports league in question.
This article explains the concept of digital media rights. It also explains why the economic value of digital media rights is witnessing an increase while the economic value of traditional broadcasts is witnessing a decline.
This article explains the basics of sponsorship and how they relate to the financing of sports leagues. It explains the common issues which need to be taken into account by the management if they decide to use sponsorship to raise funds.
This article explains the concept of individual sponsorships. It explains the common types of individual sponsorships. It also explains the reasons why individual sponsorship has limited popularity.
This article explains why general economic principles are not accurate when it comes to predicting the behavior of teams participating in a sports league. It also explains the peculiar economic rules which apply to sports leagues.
This article explains the concept of sponsorship of teams in sports leagues. It explains the different mechanisms using which brands can sponsor sports teams and the pros and cons related to each method.
This article explains the concept of title sponsorship. First it explains how title sponsorships work. Then it goes on to explain the various disadvantages which are associated with title sponsorship.
This article explains the advantages of title sponsorship. It enumerates the various benefits that are provided to title sponsors and provides details about the same.
This article explains the pros and cons associated with the sponsorship of sports teams that participate in competitive leagues. A detailed explanation of the pros and cons has been provided in this article.
This article explains the common objectives of sponsorships. It explains the reasons why corporations agree to pay millions of dollars in order to get associated with sporting events in the form of a sponsor. The four common sponsorship objectives have been explained in detail.
This article explains the various factors which need to be taken into account when corporates make a decision regarding sponsoring a sports event. A detailed analysis of the various factors has been explained in this article.
This article explains the concept of risks associated with sponsorship of sports events. The risks explained in this article are from the point of view of the sponsoring entity and explain the possible negative effects which could be faced by them as a result of the sponsorship deal.
This article explains the risks which are borne by the sponsored entity when they partner with another commercial entity in order to raise sponsorship funds. The details of the risks involved as well as steps to mitigate them have been mentioned in this article.
This article explains the concept of level-based sponsorship or tiered sponsorship. It also explains the types of events for which this sponsorship is suitable. Lastly, it also lists the advantages of using this type of sponsorship arrangement.
This article explains the disadvantages of level-based or tiered sponsorship arrangements. The list of shortcomings has been provided along with a detailed explanation in order to enable informed decision-making.
This article explains how the effectiveness of sponsorship spending is measured. It also explains how the method of measuring effectiveness changes in response to the change in objective behind the sponsorship.
This article explains the common issues related to sponsorship agreements. It provides a detailed explanation of the origin as well as the importance of these issues which impact the sponsorship evaluation process.
This article explains the concept of fantasy sports leagues. It also explains how why sports leagues need an official fantasy sports league partner. It also explains the main issues associated with such partnerships.
This article explains the benefits of fantasy sports leagues to the actual sports leagues. It provides an explanation of the various economic benefits. The article also explains why sports leagues are disregarding the so-called negative publicity and are openly associating with fantasy sports.
This article explains the concept of sports merchandising. It also explains the scope of sports merchandising. The manner in which such sports merchandising is controlled by the sports league, as well as the sports team, has also been discussed in detail in this article.
This article explains the drawbacks of generating revenue from sports merchandising. It explains the important issues related to sports merchandising and how they impact the business of the sports league.
This article explains how sporting leagues across the world are organized. It explains the benefits of using the league format. It also explains the various types of league schedules and their pros and cons.
This article explains the reason why sporting leagues across the world have a limited number of teams. It also explains why hierarchies of sporting leagues exist and what are some of the issues that are likely to come up if more teams are allowed to play in the league.
This article explains why the valuation of sporting franchises continues to increase over time. It explains the various macro and external factors which lead to an increase in this valuation.
This article explains the concept of price-to-revenue ratio and how it can be used to derive the valuation of a sporting franchise. It explains the various reasons why price to revenue ratio is preferred in the sporting industry as opposed to price to earnings ratio.
This article explains the various factors which play a part in the financial valuation of a sporting franchise. It also explains how each individual factor plays an important part in the overall valuation of the sporting franchise.
This article explains the income-based approach for calculating the valuation of a sporting franchise. It explains the various steps involved in the method. It also provides detailed information about the pros and cons of using the income-based approach.
This article explains how the discount rate can be calculated while valuing sports franchises. It also explains the importance of discount rates and it's impact on the overall valuation of sports franchises.
This article lists the issues related to the calculation of discount rates for sporting franchises. The various issues have been discussed in detail with an explanation about how they distort the valuation of the franchise.
This article explains the concept of the replacement cost method of valuation. It also explains how this method of valuation can now be used to derive the monetary value of a sporting franchise.
This article explains the pros and cons of valuing sporting franchises using the replacement cost method. The pros and cons of the method as well as how it impacts the valuation of the franchise have been explained in detail in this article.
This article explains the concept of the market approach when it comes to valuing sporting franchises. The pros and cons of using this approach have been explained in great detail in this article.
This article explains how the performance of the team impacts the overall valuation of the sporting franchise. The factors which need to be taken into account while considering this impact have been explained in detail.
This article explains the complexities which are associated with the valuation of sporting franchises. It provides a list of reasons that make valuation more difficult.
This article explains the impact of technology on sporting finance. It explains the various ways in which technological innovation in the sporting industry is leading to a financial impact on the franchises.
This article explains how sporting franchises derive revenue as a result of releasing their players to play in international tournaments. It also explains how the revenue is decided for such tournaments. Details about the accounting for such revenues as well as when they become due have also been explained above.
This article explains why private equity firms have started investing increasingly large sums of money in the sporting industry. The benefits derived from such investments by both parties have been explained in detail in this article.
This article explains the possible downsides of private equity investments in professional sports franchises. It provides a list of the possible downsides and provides a detailed explanation of the same.
This article explains why sporting franchises across the world decide to rent out stadiums instead of building them. It also lists the common advantages associated with renting or leasing a stadium.
This article explains the disadvantages related to leasing a stadium. It explains how this decision impacts the financials of the sporting franchise vis-à-vis building the same stadium. The list of possible issues as well as the severity of such issues has been discussed in the article.
This article explains how stadium leases are accounted for. It also explains the various factors which need to be taken into consideration while accounting for such leases.
This article explains the concept of right of use (ROU) assets in the context of stadium leasing. It explains the accounting policies related to the reporting of right of use (ROU) assets on the balance sheet of the sporting franchise.
This article outlines the argument of government funding for sports stadiums operated by private franchises. It debunks the flawed economic logic in favour of using government resources and explains why these stadiums are ultimately a drain on public resources.
This article explains the concept of public-private partnership (PPP) model. It explains how this model applies to the construction, financing, and maintenance of sporting stadiums. The different variations of the public-private partnership models have been explained in detail in this article.
This article explains the advantages related to public public-private partnership (PPP) model. It provides a list of such advantages and explains their impact on the finances of the government as well as the sporting franchise.
This article explains the risks associated with building a stadium using the public-private partnership (PPP) model. It lists the common risks which are associated with the execution of the public-private partnership (PPP) model as well as their financial impact on the sporting franchise.
This article explains the concept of sports tourism. It also explains the three major types of sports tourism. The article discusses the economic impact of all three types of sports tourism.
This article explains the pros and cons of sports tourism. A list of pros and cons has been mentioned along with the impact of such pros and cons on the overall economy.
This article explains how sporting franchises are used by billionaires in order to understate their income and plan their taxes. The common strategies used to lower their taxes have been discussed in this article.
This article explains the concept of jock taxes. It explains what a jock tax is, how is it calculated, and why states are under pressure to apply jock taxes to the earnings of their players.
This article explains the concept of jock taxes. It explains the advantages and disadvantages associated with levying jock taxes. The financial impact of these taxes on the entire sporting ecosystem has been explained in this article.
This article explains the various factors which are considered while evaluating the valuation of a player. A list of the important factors has been provided along with an explanation about how they impact the valuation of the franchise.
This article explains the concept of financial doping. It also explains how financial doping has been used by certain teams by providing real-life examples. The concept of financial fair play and how it helps prevent financial doping has also been detailed.
This article explains the concept of financial fair play rules. It also explains some of the arguments that are listed in favor of as well as against the implementation of these financial fair play rules.
This article explains how raising money via issuing debt is different from sporting franchises as compared to other businesses. It explains the unique steps that need to be followed by a sporting franchise when it comes to raising debt.
This article explains how the franchisors are extensively involved in the debt funding activities even though they are not a direct party to the loan agreement. The financial impact of the rules and regulations created by the franchise as well as their enforceability has been discussed in the article.
This article explains the concept of debt ceiling or debt limits in relation to the sporting world. It also explains why this debt ceiling is important and impacts other aspects such as the valuation of the sporting franchise.
This article explains the pros and cons of debt ceilings in sporting leagues. It also explains the financial impact that each of these pros and cons has on the management of the sporting league as well as on the individual franchises.
This article explains the concept of securitization in the context of sporting franchises. It explains how sporting franchises have started using securitization in order to be able to raise funds at an affordable cost without having to rely on financial institutions.
This article explains the various types of securitizations which are used by sporting franchises across the world. The pros and cons of various types of securitization processes have been explained in this article.
This article explains the advantages of the use of securitization techniques by sporting teams. It lists some of the important benefits of this approach and explains how the finances of the franchise are positively impacted.
This article explains the various disadvantages that are commonly associated with the securitization of receivables by sporting franchises. The negative financial consequences of such securitization have been explained in detail.
This article explains the financial implications of the recognition of player contracts as intangible assets on the balance sheets of sporting franchises. The details about the complexities of such transactions as well as their accounting impact are explained in this article.
This article explains some complex scenarios that are often faced by sporting franchises when it comes to accounting for player contracts. Complex situations such as loans and transfer of players have also been explained.
This article explains the concept of impairment in the context of sporting franchises and player contracts. It explains the main scenarios wherein impairment becomes relevant in the sporting industry. It also explains the dos and donts related to financial management and reporting in such scenarios.
This article explains the practical issues faced during accounting for players who have not been acquired externally but instead have been promoted internally. It explains the various accounting approaches which are used in different parts of the world.
This article explains some more points related to why the government should not invest public money in sports stadiums used by professional franchises. The flaws present in the economic logic given by franchise owners have been debunked in this article.
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