Sports Finance and Management: Real Estate, Entertainment, and the Remaking of the Business

Sports Finance and Management: Real Estate, Entertainment, and the Remaking of the Business

by Jason A. Winfree, Mark S. Rosentraub, Brian M Mills
     
 

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ISBN-10: 1439844712

ISBN-13: 9781439844717

Pub. Date: 09/19/2011

Publisher: Taylor & Francis

The sports business landscape has changed dramatically in the past two decades. Teams and facilities have become integral parts of the businesses of real estate and development, entertainment, and the media. While an understanding of core financial management issues specific to the sports industry is still mandatory, a greater appreciation of financial and

Overview

The sports business landscape has changed dramatically in the past two decades. Teams and facilities have become integral parts of the businesses of real estate and development, entertainment, and the media. While an understanding of core financial management issues specific to the sports industry is still mandatory, a greater appreciation of financial and management issues that link teams to the dynamic forces that make it possible to listen or to watch games at home, on the road, or anywhere a fan happens to be is also needed.

Sports Finance and Management: Real Estate, Entertainment, and the Remaking of the Business takes an in-depth look at the changes in the sports industry, including the interconnecting financial issues that occur when a sports team becomes a part of bigger companies, the altered nature of fan loyalty influenced by network and Internet footprint, dramatic changes in sports venues driven by the trend for single-purpose stadiums, and league policies such as revenue sharing, luxury taxes, and salary caps. The authors have deliberately not chosen sports examples to teach general finanancial and management concepts. Rather, they use basic financial and management concepts to illsutrate the differences and uniqueness of the sports industry. This gives students tackling finance issues for the first time a firm foundation, while allowing those more expert in financial issus to apply their skills and knowledge to the issues specific to the sports industry.

Capturing the issues that make the sports industry different from any other, the text examines the effects of public financing, unique pricing structures, and roster depreciation allowances. It includes a detailed treatment of risk measurement based on the monetary value placed on championship wins and the influence fixed rosters have on the investment horizon. These features and more give students the foundation needed to understand finance and management as well as the idiosyncrasies of the sports industry.

Product Details

ISBN-13:
9781439844717
Publisher:
Taylor & Francis
Publication date:
09/19/2011
Edition description:
New Edition
Pages:
500
Product dimensions:
6.20(w) x 9.00(h) x 1.20(d)

Table of Contents

The Redefinition of the Sports Business
Introduction
Sports Finance and Management in Real Time
References

The Structures of Ownership
Introduction
The Emergence of Team Sports and Profitable Markets
Ownership and Expansion: From Individual Entrepreneurs to Large-Scale Entertainment, Real Estate, and Media Firms
Ownership Patterns Today
Ownership Structures
Horizontal and Vertical Integration
The Integration of Real Estate Development, the Media, Entertainment, and Team Ownership
References

Financial Statements, Revenues, and Costs
Financial Statements
Balance Sheets
Income Statements
Statement of Retained Earnings
Statement of Cash Flows
Analyzing Financial Statements
Ratio Analysis
Revenues and Costs
Stadium Revenue
NFL In-Stadium Revenue
NBA In-Facility Revenue
Naming Rights
Media Revenue
Player Costs

Facilities: “Disneyfication” and Design
Introduction
Facilities: The Early History
The Constrained Supply of Sports Franchises
Disneyfication and the Location of Facilities
Where Should a Facility Be Built?
Design and the Competition for Discretionary Income
The Exterior Design of Facilities and Intrafacility Competition
References

Stadium Financing
Introduction
Financing Tools
Financing Facilities: Who Really Pays?
Facility Financing: The Team’s Share
Facility Financing: A Public Sector Investment
References
Appendix 1

Sports Teams and Real Estate Development, or Real Estate Development Companies with Sports Teams?
Introduction
Increasing Value of Downtown Locations for Sports Facilities
Rise of Horizontal Integration, Residential Real Estate, and Entertainment Venues
Managing the Real Estate Inside a Facility
Managing the Real Estate Outside the Facility: The Increasing Value of Sports Venues as Anchors for Development
References

Media and Sports Management
Introduction
Sports and the Media: Brief History
Phase 1: Media and Team Relationships
Phase 2: Large Scale Revenue from the Sale of Media Rights
Impact of Phase 2: The Profitability and Revenue Power of Television, the NFL, and Revenue Sharing
Phase 3: The Vertical Integration of Teams and the Media
Phase 3 Continues: College Conference Networks
Media, Sports, and the Future: Emerging Competition in the Delivery of Games to Fans and Advanced (Internet) Media
References

What Are Teams Worth? Team Valuation
Introduction
Establishing a Team’s Market Value: Basic Observations
Valuation Models
Other Factors Affecting Value
What Is the Value of NFL, MLB, NBA, and NHL Franchises?
Multiple Earnings
Constant Growth Pricing Model
Other Sports
College Sports
Conclusion
References

Demand and the Sports Business:What Does the Customer Want and How Does a Team Owner Provide It?
Introduction
Defining Demand
Long Run Demand for Sports
Short Run Issues in the Demand for Tickets
Reference

Pricing Strategies
Introduction
Ticket Prices
Are Ticket Prices Too High, Too Low, or Just Right?
Why Are Ticket Prices Inelastic?
Price Discrimination
Bulk and Group Discounts
Product Bundling
Variable Ticket Pricing
Day of Game Pricing
Dynamic Pricing
Personal Seat Licenses
Condominium Seats
Futures Options
Pay What You Want
Media Prices
Merchandise Pricing
References
Appendix 1
Appendix 2
Appendix 3

Capital Budgeting and Team Investments
Introduction
Team Investments
Facility Investments
Player Investments
Cost of Capital
References

League Policies, Taxes, and Profits
Introduction
League Policies
Player Drafts
Revenue Sharing
Luxury Taxes
Salary Caps
Promotion and Relegation
Collective Bargaining
League Specifics
Competitive Balance
Taxes
Roster Depreciation Allowance
Player Taxes
State Taxes
Ticket Taxes
Tax Exempt Status for Universities
Profits
Leverage
References
Further Reading on League Policies
Appendix
References

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