|Type of paper:||Critical thinking|
|Categories:||Sport Accounting Financial analysis Strategic marketing|
Sports are an important and essential aspect in society when it comes to their effects on economic and social lives, and sports are indispensable. In many cases coincides with the political, economic agencies, and community values as well. For any sports or organization to thrive, financial practices play an essential role; therefore, good plans and strategies to finance sports are essential. Sports financial management and any other department responsible for sports finance must be financial experts and have the ability to manage all the tasks involved in the industry (Cokins, & Schrader, 2017). As in any field of profession, sports finance relies on strategy, budgeting, planning, reducing expenditure, wise spending, reporting, and analyzing financial data to ensure adequate financial practices. The value of sports in the community and society is sufficient; all the practices that are involved have a direct impact on society. the communities that take part in sports develop a considerate bond; therefore, all the management practices that support sports must consider their impacts on society. Sports finance extends beyond supporting sports for sort's sake because it involves developing social capital, and cultural impacts. Sports organizations and clubs may influence many sources of income, all of which require to be streamlined, assessed, and measured. The financial manager, therefore, acts as a core facilitator to ensure that financial practices are well-planned and implemented. Sport is one of the industries that grow at a fast rate in the business world, and the community plays a role in its growth. The events are rated by the audience, ticket sales, concession sales, website hits, media coverage, and sponsor revenue; all these aspects lie in the financial management of sports clubs or organizations. This paper, therefore, reflects on the most critical aspects of sports finance.
The finance manager in a sports organization or a club must be able to understand all the concepts of financial practices that affect all the activities within the origination as well as the community at large. Financial management is an element in sports (Becsky et al. 2015). The participants need to practice for contests, and the organization needs money to spend to support the events, sports facilities, etc. the plans and strategies established with the organization impact society. the number of events organized and the financial impacts on the community must be a point of concern by the finance manager. Today, local community sports play a vital role in providing people with social programs and leisure. Sports have emerged on the market, influencing some of the decisions made by the people in the community. There are two main factors that a financial manager must understand when developing a plan for any sports activities; these are financial strategy and financial analysis and reporting
The first element that a sports financial manager must understand is the impact of the financial strategy on the organization and the community. The size of the community influences the number of resources for sports clubs. It is crucial to determine the type of business entity that the sports organization is based on.: partnership a sole trader, nonprofit, or cooperative. Financial management in sports begins with determining the source of funds and their allocation. Examining the financial records of the previous programs is an essential establishment. To create a strategy that would favor both the organization and the community is determined by the decision of the management. Financial management is not just a matter of playing with figures; it involves consideration of some of the factors. It involves taking into account some of the current trends in the industry in which the organization or the team is operating. It involves members of the community that are examining their perceptions and thoughts about the organization.
Today, the community the important in facilitating the continuity of sports events. the introduction of gambling and other community-oriented financial factors significantly affects financial strategies (Cokins, & Schrader, 2017). Therefore, a financial manager must be diverse and can gather information and analyses. Another point of concern is the extermination of internal factors; these are constraints affecting the organization that has been experienced as a result of the pats decision. External factors also play an essential role in determining financial strategy; these factors include the community and other stakeholders who may influence financial operations. Also, accounting for other factors such as revenue forecast: these involve ticket sales, sales from dining, donations, and apparel (Fisher, 2018). The community plays an important role in deciding on how to engage with sports based on these factors. Financial management draws some of the plans targeting members of the community, and therefore their decision is sake to the financial progress of sports.
Finance Analysis and Reporting
The finance manager must understand the role and the essence of financial analysis and reporting because this would influence the decision made by the stakeholders that include members of the community. Finance managers. Using accurate data, the sports finance manager must be able to keep detailed and precise records that can be used for future financial projects and decisions as well. It is essential to have an improved and accurate budget for sports because this what it used to predict success or failure. In sports, it is vital to involve some high-value vendors; therefore, financial reports and analysis can help determine their contribution. Working with the community by involving organizations that can influence positive progress and visibility to sport is vital for the finance manager to consider. The community also provides revenue streams and opportunities. Based on financial status, the fiance manager can propose strategies such as the development of mobile applications that consists of in-app purchases for revenue generation. Being a finance manager, therefore, is not just a matter of dealing with figures, but it involves creativity, forecasting, and establishing revenue-generating strategies for sports activities. Sports financing has greatly influenced state financial, gambling, and sponsorship. Sports finance management must be able to understand the subsidies that affect sports, such as tax relief and increase the opportunities that can help to promote sports activities and community participation at large (Leeds et al., 2018). Sport is prestige and formulates their goals from social purpose. It essential for the management to understand that sports are nothing but service and the community cats as the consumer; therefore, it is a business enterprise that must consider the role of the consumer and the impact as well. There are cases where the community provides financial resources to support the sport's activities. Generally, the community has been seen as the core factor in financing sports; therefore, their presences are essential, and the financial manager must consider developing strategies that positively influence their decisions.
In the U.S, there is an increase in investment strategies in sport; the sport's governing agencies and organizations and the community within the sphere of sports are forced to adopt and engage in their activities that influence sports as well as resize their role and their position in sports as a market. Therefore an increase provides more opportunities for investors and members of the community to engage in and exploit benefits in the sports industry. the competing interests and tensions among different teams as well as financial and legal issues between the involved parties. The increase influenced several investors and gambling. Therefore, from this scenario, it is clear that the finance manager must understand the market and develop strategies based on the market structure.
Professional sports are linked to some cases of misapplications and mythical concepts affecting sports finance. Similar to some, business sports are faced with challenges with some of the decisions that they make. There have been financial questions regarding sports finance. Sports organizations are comprised of different components; the coach and the participants are the main components (Silva, Almeida, & da Silva, 2015). sports financial management may be drowned into a dilemma when trying to understand some of the critical financial issues that may harm the progress of the team some of the issues causing dilemma or misapplications of financial strategies includes misapplication of benefits and sources of funds
Misapplication of Benefits
Sports have a diverse source of income, and these include sales of tickets, TV revenue, merchandising, and alumina support; these factors have always been associated with the misapplication of funds and issues of dilemma. Some of the top competitors in the sports industry enjoy a competitive advantage by securing all the sources of funds and loyalty in the market. It affects the financial status of other sports clubs (Saienko, 2016). Those teams which do not make a grade through wins and losses are forced to depend on the funding from their sponsors; in many cases, the college sports club will be forced to rely on school's funding programs to balance their budget. Management of college sports presents a case on dilemmas, the question on whether athletes or football players should be paid for their services or not. Many voices are calling for this matter as there are benefits that the sport's clubs receive through financial management. Compensation of athletes or football players as is also a point of concern (Soebbing, 2018). Many have suggested that they have a right to be compensated, but unfortunately, most of the funds generated through sports are misused. Many of the people are asking themselves if this sports enterprise in college is out of control.
The Dilemma of Sport's League
In sports, strategic interaction between different components is essential; professional sports league may organize for a tournament with positive expectations to winning the match and the broadcasting company paying for the even to be televised. In some cases, broadcasters and the teams maximize the profits expected from an event while the objectives of the league may be to either maximize sport's demands or to maximize the joint profits of the teams (Madden, 2015). In sports, demand depends symmetrically or positively among the teams that are the competitive balance and the way teams are aggressive to win, which is the incentive to win. Sharing of revenue in sports increases the competitive balance; however, on the other hand, it decreases the reduces the chances of incentives to win in the long run. Based on the maximization of demand, a performance-based scheme of reward may be the only option. The situation results in a dilemma in the Department of sports finance.
As the 2018 national basketball end a wealthier league with a high number of combined teams with considerate wealth, it influenced the market structure. Their status affected the environment, and the level of influence is felt by other competing parties, which in this case are based on inter-league trade. Willingness to emerge the best in the league was reflected in the salaries each team player receives per month. The effort of players from wealthier teams was significantly compared with that of other teams whose strategy was based on the inter-league trade of team players. Their competitive balance in the scenario is measured by the outcome and uncertainty.
Cite this page
Free Essay Sample: Sports Finance. (2023, Mar 03). Retrieved from https://speedypaper.com/essays/sports-finance
If you are the original author of this essay and no longer wish to have it published on the SpeedyPaper website, please click below to request its removal:
- Essay Example on the Dental Materials Experiment
- Essay Sample on Differentiating Music
- Black Latino Study: Kolanuts Essay Sample
- Healthcare Marketing Essay Sample
- Free Essay Analyzing "I Taste a Liquor Never Brewed" by Emily Dickinson
- Essay Sample on History of Western Civilizations
- Free Essay. Civil Peace Analysis