KIN 3804_Sport Finance - Sport Finance Accounting Overview Finance use data to make decisions Look at overall environment 2008(Very Conservative 2 NFL

KIN 3804_Sport Finance - Sport Finance Accounting Overview...

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Sport Finance 02/01/2017 ° Accounting Overview ° Finance - use data to make decisions Look at overall environment 2008 (Very Conservative) 2 NFL teams moving to LA because cities would not likely to build a new stadium ° Accounting – Numbers! Provides data for finance (Language) Accountants give numbers to Finance Managers see in an analytical way ° What is finance? Quality financial management allows o Organization to adapt to changing consumer demands o Modify new revenue streams & opportunities o Evaluate profitability of opportunities o Identity efficiencies/inefficiencies of operations o Respond to changes in the environment o Evaluate risk ° Modern Environments is one of rapid changes ° Financial Management and Sport Commonalities with other industries o Value Creation -Why do people own stadium “value goes up” and sell “worth more” o Revenue growth – wan to make more than past years and want to continue to grow ° Differences from other industries
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Diverse o Maximize wins or profits Mark Cuban (wins) Concern about imbalance and competition Revenue sharing and other forms of cooperation ° Accounting – Accounting is the processing of revenue and expenses numbers to develop appropriate reporting procedures from which financial decisions are made The objective of accounting for any organization is to provide information for the following: o Many division about the use of limited resources, including the identification of crucial decision areas and determination of objectives and goals o Effectively directing and controlling an organization’s human and material resources o Maintaining and reporting on the custodianship of resources o Conditioning to the overall effectiveness of the organization Financial accounting focuses more on tracking numbers, while managerial accounting focuses on evaluating on evaluating whether the organization in reaching harder to measure objectives Accounting Principals Revenue – Money coming into a sport (ticket sales, broadcast contracts, concessions) Expenses – costs that are incurred (players salaries, equipment, travel, etc) In sport revenues and expenses are often spread unevenly throughout the year ° Accounting Objectives for sport organization The data should be collected to help plan for the program’s future. The financial records must be kept in an orderly manner. An orderly and professional accounting method must be implemented to track authorized expenditures. Allows for accurate budgeting
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Deters internal corruption or theft Appropriate forms must be prepared to help standardize and create a definite paper trail for receipts and expenditures.
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