REVENUES AND EXPENSES

Revenues and Expenses of a Professional Team

Table of Contents

Introduction2

Discussion and Analysis3

Historical Perspective:3

Professional team Valuation:4

Use of Credit:4

Long-Term Credit:5

Short-Term Credit:6

Expenses and Capital Investments:6

Revenue Generation and Sponsorships:8

Measuring Sales Result:9

Importance of Sales:10

Conclusion12

References14

Appendix16

Mega Sports Events:16

Planning:17

Revenues and Expenses of a Professional Team

Introduction

Sports economics is the study of the allocation of scarce resources among competing desires in the context of sports. Although this definition is not very different from the definition of economics itself, it does reveal how the sub-discipline of sports economics was born. It also reveals the breadth of the field. Anything that carries the title of sports, from professional football to a lumberjack competition on ESPN, has the potential to stimulate a paper in this sub-discipline.

Established economic scholars from other disciplines brought their standard tool kits to bear on professional and amateur sports data sets. At first, they studied baseball extensively because it was a sport that they had played and followed. Many of these scholars were tenured at prestigious research universities but undertook these projects because the sports industry was fun to study. At first, there were no textbooks for sports economics classes, and syllabi looked suspiciously like a list of applied microeconomics topics. Labor economists studied everything from wage discrimination to managerial efficiency.

Industrial organization scholars promptly investigated the concept of market power on the field in wins and off the field in dollars, and environmental economists used contingent valuation methodology to determine the value of a sports team to a city or region. This paper discusses the various strands of the literature in detail. Professional Sports is an entrepreneurial activity, which is due to the high entertainment events gives commercial benefits for television, sports organizations (leagues, teams, etc.) and the actual athletes. This allows athletes to play sports and nothing else, perfecting their skills and keeping in shape. This paper discusses the revenues and expenses of a professional sports team in a holistic context.

Discussion and Analysis

Historical Perspective:

As observed in the past Chariot races required huge costs: as everyone cannot afford four thoroughbred horses. Of course, the skilled horsemen of those days financed speculators, was considered the winner is not the driver and the owner of the sled. It is known that in the Byzantine Empire, the situation with the chariot race was like a modern football - were "colored" teams and devoted fans. The situation in the Middle Ages and in the modern times it is observed only in fits and starts: Christian morality limited secular entertainment. Nevertheless, something resembling a professional sport, there was (wrestlers on tour, bullfighting). In the middle of the 19th century, with decreasing influence of the church and the emergence of common rules football in England, businessmen began to openly paying players, came even before the ban on the game for hire. Around the same time, the U.S. has organized professional baseball, let even the baseball card - collectible cards with images of popular athletes.

Motorsport is an extremely expensive sport, so that in the early years of the organizers attracted riders through big ...