SPT 620 Finance & Economics of Sport

Module 1 – Due Feb 26

1-1 Discussion: Economic and Financial Situations

Share an economic or financial situation that has stood out to you (e.g., the NHL lockout or the NASCAR ratings decline). What interested you most about your chosen situation? Why are financial skills valuable in sport organizations? 

Module 2 – Due Feb 29

2-1 Journal: Financial Statements

Have you ever looked closely at a sport organization’s finances? In this task, you will have an opportunity to do so.

First, review the following resource: Beginners’ Guide to Financial Statements.

The sport organization choices can be found in the Final Project Guidelines and Rubric.

Research the most recent financial information available for your selected organization, including a balance sheet. You are encouraged to search for annual reports as a means to find financial information. Consider using the Sport Management Guide to Library and Research Resources, the organization’s website, or other web resources as needed.

Specifically, the following critical elements must be addressed:

1. Analyze your selected sport organization’s balance sheet.
   1. Explain how to communicate this information to stakeholders.
   2. Describe information that would be necessary to include for stakeholders.

2-2 Discussion: Ethics

First, read the following article: The Roster Depreciation Allowance: How Major League Baseball Teams Turn Profits Into Losses. 

Then, discuss the potential ethical concerns that are involved. What do you notice? Does this situation surprise you? 

Module 3 – Due March 6

3-1 Final Project Milestone One: Executive Summary

For this task, you will submit the Milestone One assignment. Please refer to the Milestone One Rubric.  Professor will grade strict according to the rubric.  Please make sure all headings and subheadings are correct.

3-2 Journal: Economic Choices and Viability

How do economic choices impact an organization? Have you noticed that some sport organizations are more financially successful than others? In this assignment, we will take a closer look at the influences that play a role in the economic viability of an organization. 

Read the article The SEC Makes More Money Than Every Other Conference and It’s Not Even Close. 

Specifically, the following critical elements must be addressed:

1. Discuss the economic choices that were made.
2. Assess the sources of expenses and capital funding that were used.
3. Examine the average revenue, expenses, and profit numbers broken down by conference.
4. Evaluate which approach would work most effectively for economic viability.

Module 4 – Due March 12

4-1 Discussion: Budgeting and Ethics

After reading the article Publicly Financed Sports Stadiums Are a Game That Taxpayers Lose, discuss why cities might overestimate the economic impact from sport-related events. How might overstating, or overestimating, the economic impact of these sporting events influence the community ethically? Provide examples to support your thinking. 

Module 5 – Due March 20

5-1 Final Project Milestone Two: Budget Proposal Spreadsheet

For this task, you will submit the proposed budget and rationale for your final project assignment. Please refer to the Milestone Two Rubric.  Professor will grade strict according to the rubric.  Please make sure all headings and subheadings are correct.

5-2 Journal: Budgeting

In this assignment, you will work through a real-world scenario and calculate the net present value based on the revenue of a sport organization of your choice. 

Read the following article: What Are the Advantages and Disadvantages of the Net Present Value Method?  

Next, read and respond to the following scenario: Your sport organization wants to expand its football stadium and build five new luxury suites. We will assume that each suite will provide 10 years of revenue, and that each suite generates $25,000 per year. The total construction cost of the suites is $500,000. 

Specifically, the following critical elements must be addressed:

1. Calculate the net present value based on the revenue of a sport organization.
2. Assume the rate of return is 10%. Identify the pros and cons of this investment.
3. Identify whether this investment is a good idea financially.

Module 6 – Due March 26

6-1 Journal: Intercollegiate Finances

In this assignment, you will discuss financial issues that pertain to colleges and universities. 

After reading the case study, respond to the following critical elements:

1. Address the type of financial analyses that would be appropriate for analyzing the budget and comparing it with those of similar colleges.
2. Evaluate the university’s fundraising options.
3. Recommend the best option for funding.
4. Assess potential ethical issues that may arise.

6-2 Discussion: Ethical Considerations

First, read the following articles:

• Money Clouds Mission of College Sports
• Alabama’s Success Delivers Big Pay Day
• NCAA Schools Can Absolutely Afford to Pay College Athletes, Economists Say

Next, discuss the role money plays in college sports. What ethical issues are involved? What types of revenue appear to be most effective in bringing money in for college athletes? Are there certain revenue approaches that involve greater ethical concerns than others, based on what you have noticed? Are there any legal issues that may arise? 

Module 7 – Due April 1

7-1 Final Project Milestone Three: Presentation Draft

In this assignment, you will submit Milestone Three of the final project. This milestone includes a draft of your presentation.  Please refer to the Milestone Three Rubric.  Professor will grade strict according to the rubric.  Please make sure all headings and subheadings are correct.

7-2 Discussion: Economic Issues in Professional Sports

First, read the article New Era, Big Money, Today’s NFL. What financial issues are present? What recommendations do you have in regard to their financing? What can be improved? How would you go about improving it? 

Module 8 – Due April 7

8-1 Discussion: Public Versus Private Stadium

After reading the article A Closer Look at Public Financing of Sport Stadiums and Arenas, discuss the pros and cons of a public stadium versus a private stadium in the context of finances. What role does the owner have in the use of public funds? What role do the stakeholders play in a private versus public stadium? In your opinion, is there a benefit to having one type of stadium over the other? Explain using specific examples and financial data to support your rationale. 

Module 9 – Due April 14

9-1 Final Project Submission: Presentation: Communicating to Stakeholders

In this task, you will submit your final project. PLEASE MAKE SURE EVERYTHING MATCHES THE REQUIREMENTS OF THE FINAL RUBRIC.

Module 10 – Due April 21

10-1 Journal: Applying Your Knowledge

In this assignment, you will respond to a real-world scenario. 

Scenario: The state is cutting the budget of a high school athletics department. 

Specifically, the following critical elements must be addressed:

1. Identify the sources of revenue that can make up the difference from the budget cut.
2. Assess how the department should be funded based on the budget cut.
3. Evaluate any potential ethical concerns that are associated with the different source(s) of revenue.
4. Compare and contrast the varying approaches used to fund interscholastic sports, intercollegiate sports, and professional sports.

10-2 Discussion: The Future of the Sport Industry

After reading the following article Venues 3.0: Smarter. Smaller. Social, think about the financial future of the sports industry. Next, reflect on all that you have learned in this course in the context of the course outcomes. What will you take away with you as you move forward? How will the things you learned in this course support you in your future endeavors? Has this course sparked any new interests for you? Explain. Which thing that you learned will be the most helpful as you move forward in the sport industry?