Sport Finance

Book excerpt: The burgeoning global sport industry is a $500 billion business with no signs of slowing down. For the upper-undergraduate and graduate sport management student exhibiting a penchant for finances and a passion for sports, the field of sport finance presents tremendous career opportunities. No other textbook connects financial principles with real-world sport finance strategies as effectively as Sport Finance, Fifth Edition With HKPropel Access. Emphasizing a more practical approach, the fifth edition goes beyond the what and how of sport finance and dives deeper into the why—the reasoning behind the principles of sport finance—providing students with an even more comprehensive perspective on what drives the financial success or failure of any sport entity. The text is organized into five areas, focused on the hard skills tomorrow’s sport financiers must master to perform their role: increasing revenues and decreasing expenses, developing budgets, understanding financial statements and ratios, obtaining funding and managing cash, and building a financial strategy. Each section features an insightful introduction by a renowned industry professional, providing a real-world perspective that’s sure to pique readers’ interest. Chapters addressing revenues and expenses include budgets from the sporting goods industry, intercollegiate athletics, and professional sports. The sport industry landscape has changed significantly since the previous edition was published, and the fifth edition reflects the new realities affecting today’s sport organizations. Addressed are name, image, and likeness (NIL) rule changes; esports; cryptocurrencies; non-fungible tokens (NFTs); sport gambling; the proliferation of broadcasting rights and the sneaker market; and the impacts of COVID-19 on the sport industry. The fifth edition’s practical takeaways are especially prominent with the addition of related online resources available to students and assignable by instructors via HKPropel. One highlight is “Two-Dollar Team,” an Excel-based simulation that introduces students to assets and liabilities, revenue and expenses, budgeting, cash management, and borrowing and reveals how these specialties work together in developing financial strategies. Three other assignable class projects involve personal budgeting, expenditures, and a stock market game. Other new features include five brand-new case studies and a profile of a typical health club, “Mike’s Gym,” in which students are challenged to put their learning to the test by reading and understanding financial statements, setting budgets, and identifying strengths, weaknesses, and growth opportunities for the fictional facility. Sport Finance provides students with a thorough understanding of the financial and economic aspects of the sport industry. By analyzing sport business entities and structures, financial statements, and funding sources, students will acquire the skills to make more informed and effective financial decisions, better manage the risks, and recognize opportunities in the world of sport. Note: A code for accessing HKPropel is not included with this ebook but may be purchased separately.