...Kansas City Zephrys Baseball Club, Inc. Case Study Issue: The PBPA believes the OPC should share with the baseball players the profits of the major league baseball teams Who is right? & Why? Roster depreciation Regarding roster depreciation, I would agree with the PBPA lawyer, Mr. Hanrahan, that depreciation expense should not be included in the income statement of the team since there are no plans on selling the equipment, only plans of sharing profits with the team players. Besides, experience can definitely add value to the team and increase revenue for the team. The better the players become, the better the games, the better the games, the greater the audience. Who is right? & Why? Overstated player salary expense Spreading players’ bonuses over the length of the player’s contracts would effectively reduce the Salary Expense per year for the team and better distribute salary expense over the player’s contract, but that would effectively defeat the purpose of the bonus. In my opinion, the transaction has to be recorded when it happens. Those bonuses are paid in the signing year of the player to motivate the player to play good. Changing this would be a very controversial issue since many players may want to get their bonus in advanced. Although, I don’t agree with distributing the player’s bonuses over the life of the contract like Mr. Hanrahan proposes, I would definitely agree with him that right thing to do is to report only the Salaries paid to the players...
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...Kansas City Zephyrs Baseball Club, Inc. Case Study Antecedents: the Professional Baseball Players Association (PBPA) and the Owner-Player Committee (OPC) were engaged in a collective bargaining dispute where the PBPA believes they should share in the teams' profits. The OPC maintains, however, that the teams were losing money each year. Both sides had independent meetings with an arbitrator to evaluate and recommend a viable decision ”Who is right?” The case illustrate major areas in which both sides disputed the way the financial information is been presented, and the way key accounting concepts had been used taking in consideration the recognition of revenues and the matching concept: 1. - Players salary expenses, current roster salary, amortization of signing bonuses and non-roster guaranteed contract expenses 2. - Roster depreciation expense 3. - Related-party transactions (Stadium operations) 1. - Players salary expenses, current roster salary, amortization of signing bonuses and non-roster guaranteed contract expenses. A significant portion of players’ compensation packages is not paid in cash immediately. PBPA think the salaries due to players who are no longer on the roster should be recognized when the cash is paid out and not when the players leave the roster, GAAP however only allow the deferred compensation to be expensed when earned. Therefore, OPC is right. Some part of players’ signing bonuses as per the PBPA suggestion should be spread over...
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...Overpaid Baseball Players When addressing the value of entertainment, there is without a doubt, that we as a society value entertainment highly. But there is no reason that these athletes, who are here to merely entertain us, get paid higher wages than those that save our lives and teach us such as medical doctors and teachers. Professional athletes do not offer society an essential function that improves or enhances our world in comparison to other professionals. It is my claim that professional baseball players are paid more than they are worth. Economics is the key to understanding why these athletes earn such tremendous salaries; still, it fails to explain why they actually do deserve it. Giving athlete’s high wages doesn’t only distort them, but also bring downfall to clubs and the country’s economy. The growth and the development of a sport may be reflected from the wages of the athletes and that is all it does. In conclusion, Team owners pay more to keep athletes on the team to be on a winning streak, but whether the drive to win is justifiable remains in doubt. The economic system involving sports, corporate America, and the media is an interdependent one. Athletes make huge sums of money paid to them by owners who make even larger sums of money. Agents, free agency, and other phenomena keep athlete salaries rising. So, too, does increased ticket sales to games, increased TV viewership, enormous media contracts, TV advertising, and corporate sponsorship and endorsement...
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...In the case study of the Kansas City Zephyrs Baseball Club, Inc. Bill Ahern the arbitrator was assigned to resolve the issue on the parties’ agreeing on the true profitability of the major league baseball teams. Both Zephyr’s owners and players disagree on three different areas: a) Roster depreciation, b) Overstated Player Salary Expense which entails current signing bonuses, roster salary, amortization of and non-roster guaranteed contract expense; and c) Related-Party Transactions (Stadium Operations). Roster Depreciation The owners recognize depreciation of a value placed on the player roster at the time the baseball club was purchased apparently because tax rules allowed them to do so. Tax rules allow this value to be set arbitrarily at a maximum of 50% of the purchase price. According to the owners the depreciation is capitalized and is being depreciated over six years. The players do not feel that any roster depreciation should be shown. They believe that the roster depreciation is providing numbers without any significance. The players further argue that depreciation expenses only arise when a team is sold therefore there can be two identical teams that reflect different results if one was sold and the other was not. Moreover, the players argue that rosters should appreciate not depreciate as players become more experienced with time. Economically speaking a baseball clubs’ most valuable asset is its player’s rosters and they obviously appreciate and depreciate...
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...REGRESSION Regression Names RES/342 - Research and Evaluation II Date Professor Table of contents Executive Summary 3 Dataset 3 Data Observations 3 Statistical Analysis 4 Conclusion 4 Dataset for the 2004 season 5 Regression Analysis taking LOG (Y) 6 Regression Analysis 8 Executive Summary This report is to determine whether total team payroll for major league baseball teams directly varies with each team’s home attendance. This is an important statistical analysis because if we can prove that there is a relationship between salary and attendance then we can see that more fans in the stands will give a team more buying power when it comes to signing players. Dataset The independent variable is team payroll and the dependent variable is team home attendance. Each team plays 81 home games. The dataset consists of 30 Major League Baseball teams from the 2004 season. Data Observations For the independent variable: The arithmetic mean for home attendance is: 30,453.67 The median for total home attendance is: 31,499.50 The standard deviation for total home attendance is: 8,132.28139 The minimum for total home attendance is: 14,052 The maximum for total home attendance is: 50,499 For the dependent variable: The arithmetic mean for total payroll is: $73,052,363.27 The median for total payroll is: ...
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...research it is imperative to make sure the data collected is present in the final analysis. This data can be shown in different formats such a graphical or tabular. Team A has chosen the Major League Baseball (MLB) data set and feels the population and the type of data collected will provide good resources for surveys to make informed decisions. Team A will review the types of ways data can be shown as well as some of the ethical issues that researchers may run into. Our research involves looking at the 30 MLB teams in how the statistics vary. The data set is a accumulation of information that includes what league they are in, the year of erection of each stadium, capacity of each stadium, salary of the team, wins for the season, batting average, attendance, earned run average (ERA), stolen bases (SB), and home runs (HR). The sample for this research topic is very sufficient. It includes all the teams in the league and portrays the same information for all of the teams. The population (teams) and the categories listed in the data set will provide Team A the information to complete our research into whether or not a higher salary will make a team better. In reviewing the article titled “Work Incentives and Salary Distributions in Major League Baseball,” the author, Brandon Avrutin, discusses the relationship between the payroll and the performance of the team. According the Avrutin, “the more equally the payroll distribution is among team members,...
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...http://www.ncaa.org/amateurism says to qualify as amateur, “an athlete is not permitted to: sign contracts with any professional team, receive salary for participating in athletics, collect prize above actual and necessary expenses, play with professionals, tryout/practice/compete with a professional team, accept benefits from an agent or perspective agent, agree to be represented by an agent, and delay initial full-time collegiate enrollment to participate in organized sports competition.” So, before young athletes can start their dream of moving on to the next level, they need to run a check list. For most athletes these guidelines are no problem, but for the upper echelon of young athletes there could be some snags. In a sport like baseball there is a possibility to be drafted directly out of high school. If a player is in contact with a team’s scout there is no penalty, but if he hires help to decide whether or not...
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... Tilley Empire State College Abstract Philadelphia Phillies was founded in 1883; the team is today the oldest, one-name and one city franchise in all professional sports. Al Reach, a professional baseball player becomes the first owner along with attorney John Rogers; the team’s name “Phillies” (due to its geographical roots in Philly) was Reach decision. In 1901, after losing several games and some of their best players, the team is sold for first time. The Phillies has the second-longest streak of consecutive losing seasons in American professional sports, sixteen straight from 1933 to 1948.The franchise has won two World Series championships (against Kansas City in 1980, Tampa Bay in 2008), and seven National League pennants. Phillies had own five different home stadiums. The most recent one have a fan-friendly design and is part of their complex marketing strategy to increase revenue and happy customers. In 2013 Forbes ranked the Phillies #41team in the World’s most valuable Sports Team. The franchise is estimated to be worth $893 million. But, how does a sport team keep increasing its revenue during bad seasons? The Phillies not only represent a changeable and unpredictable “product/brand” but also compete in a market with many other substitutes that may take away fun attention, support and possible sponsorships. In this case study, we would analyze the team’s market, and its complex segmented target. Marketing concepts would be applied to establish possible solutions...
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...American Football has become the cornerstone of Sports in the United States, with The National Football League at the fore-front. However, the NFL was not always the Juggernaut we know it as today. The NFL has been opposed by many other leagues over the years. The XFL or Extreme Football league sought to put an original spin on football. The UFL or United Football league is the NFL’s most recent competitor. The USFL or United States Football league sought to take the National Football League down legally and almost did so in the late 80’s. Arena Football aimed to bring football to an indoor enviorment with extensive offense with the AFL. And Originally the American Football League gave it’s run at rivaling the “big brother of football in the 60’s.However before we understand how the NFL is so dominant we have to understand how it came to be. The history of the National Football League has roots spanning as far back as 1892 when former Yale All-American guard William Heffelfinger was paid $500 by the Allegheny Athletic Association to play in a game against the Pittsburgh Athletic Club, making him the first ever professional football player, according to the book Pigskin: The Early Years of Pro Football. However it wasn't until 1920 that American football achieved a league of any true organization. Roussel, 2 The American Professional Football Association was formed on September 17, 1920 and included ten teams from four different states. However the APFA lasted only two seasons...
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...Robinson as a hero, and he has been idolized as a role model to the African American baseball community. It is an unarguable fact that he was the first to tear down the color barriers within professional baseball. The topic of Robinson’s role in integration has long been a point of discussion amongst baseball historians. Researchers have accumulated thousands of accredited documents and interviews with friends and team mates such as short stop, Pee Wee Reese, and team owner, Branch Rickey. However, few journalists have asked why Robinson was selected and what was Branch Rickey’s motivation? While Robinson was the first Negro player to break into the ranks of professional baseball, it can be argued that he was not the first to attempt the undertaking. In actuality, Jackie possibly was not even the first player the Brooklyn Dodgers’ organization considered for the job. The Warner Brothers film, 42, The Jackie Robinson Story (2013), highlights the accomplishments of Jackie and rightfully so, as he was an amazing man. The story actually starts prior to 1947 and ends years later in 1959, three years after his retirement in 1956. Early in his career at Ohio Wesleyan University, where Branch Rickey played and coached baseball, an incident occurred with one of his young black players, Charlie Thomas, which would forever change Rickey’s life, the future of integration of major league baseball, and would have an impact on the civil rights movement. Jackie Robinson’s amazing accomplishments...
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...1. American Sport Movies There are few countries in the world in which sports permeate national life to the degree that it does in the United States. Sports are a big part of the fabric of American life. The centrality of sports in American life is amply reflected in the American cinema. For decades movie makers have successfully mined sports to produce some of the most inspiring, poignant, exciting and memorable American movies ever made. The genre of ‘Sport Movies’ established in the Fifties and the Sixties. At the very beginning it was hard to see it as an independent genre because there was a lot of mixture. There have been propaganda movies as well as comedies, dramas, gangster movies or even westerns combined with some sport scenes. So the movie industry defined three categories of sport movies. Category 1: movies in which the main part of the narration is about sport or an athlete Category 2: movies which tell the life story of an athlete Category 3: movies which use sport scenes to describe a special milieu In addition to that there are a lot of movies of another genre which use sport scenes to dramatise the story or to create a good suspense. The first sport movies were all about the so called American Myth of victory and glory. Fair competitions and the better athletes defeating the weaken. The fascination of sport inspiring the people was used to lure the public. Then in the eighties and nineties there have been made a lot of biographical movies...
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...a story. The story concerned a small group of undervalued professional baseball players and executives, many of whom had been rejected as unfit for the big leagues, who had turned themselves into one of the most successful franchises in Major League Baseball. But the idea for the book came well before I had good reason to write it—before I had a story to fall in love with. It began, really, with an innocent question: how did one of the poorest teams in baseball, the Oakland Athletics, win so many games? For more than a decade the people who run professional baseball have argued that the game was ceasing to be an athletic competition and becoming a financial one. The gap between rich and poor in baseball was far greater than in any other professional sport, and widening rapidly. At the opening of the 2002 season, the richest team, the New York Yankees, had a payroll of $126 million while the two poorest teams, the Oakland A's and the Tampa Bay Devil Rays, had payrolls of less than a third of that, about $40 million. A decade before, the highest payroll team, the New York Mets, had spent about $44 million on baseball players and the lowest payroll team, the Cleveland Indians, a bit more than $8 million. The raw disparities meant that only the rich teams could afford the best players. A poor team could afford only the maimed and the inept, and was almost certain to fail. Or so argued the people who ran baseball. And I was inclined to...
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...come. People make New Years Resolutions each New Years and promise themselves that they will keep this resolution until next year. New Years Eve is a major social event. Clubs everywhere are packed with party-goers who stay out all night and go nuts at midnight. At midnight it is a tradition to make lots of noise. The traditional New Years Ball is dropped every year in Times Square in New York City at 12 o’clock. This event can be seen all over the world on television. Valentine’s Day Saint Valentine’s Day is a day that is set aside to promote the idea of “love”. It is celebrated on February 14th. People send greeting cards or gifts to loved one and friends to shoe them that they care. Easter Easter is a major Christian holiday that commemorates the resurrection of Jesus Christ. It is celebrated on Sunday between March 22 and April 25. The 40 days leading up to Easter are observed as Lent. Besides the religious aspects of Easter, people also celebrate spring or the sign of the new life. Flowers are seen everywhere. There are often Easter Parades such as the one in New York City where people dress up in their new spring clothes. Children receive Easter baskets filled with candy Easter eggs, chocolate bunnies and jelly beans! The dying of egg with food color is also an Easter tradition in many American families Memorial Day Memorial Day is a legal holiday that takes place every year on the last Monday in may. Memorial Day is in honor of the nation’s armed forces who...
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...In Cold Blood Truman Capote I. The Last to See Them Alive The village of Holcomb stands on the high wheat plains of western Kansas, a lonesome area that other Kansans call "out there." Some seventy miles east of the Colorado border, the countryside, with its hard blue skies and desert-clear air, has an atmosphere that is rather more Far West than Middle West. The local accent is barbed with a prairie twang, a ranch-hand nasalness, and the men, many of them, wear narrow frontier trousers, Stetsons, and high-heeled boots with pointed toes. The land is flat, and the views are awesomely extensive; horses, herds of cattle, a white cluster of grain elevators rising as gracefully as Greek temples are visible long before a traveler reaches them. Holcomb, too, can be seen from great distances. Not that there's much to see simply an aimless congregation of buildings divided in the center by the main-line tracks of the Santa Fe Rail-road, a haphazard hamlet bounded on the south by a brown stretch of the Arkansas (pronounced "Ar-kan-sas") River, on the north by a highway, Route 50, and on the east and west by prairie lands and wheat fields. After rain, or when snowfalls thaw, the streets, unnamed, unshaded, unpaved, turn from the thickest dust into the direst mud. At one end of the town stands a stark old stucco structure, the roof of which supports an electric sign - dance - but the dancing has ceased and the advertisement has been dark for several years. Nearby is another building...
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...The University of Illinois Executive MBA July 13, 2004 Tentative Syllabus Managerial Perspective on Financial Accounting Accountancy 401X; Fall 2004 Michael J. Sandretto, 225C David Kinley Hall (217) 244-6410 (office); (217) 352-4832 (home, before 10:30 p.m.) sandrett@uiuc.edu or michaeljsandretto@earthlink.net Texts: Antle, Rick, and Stanley J. Garstak, Financial Accounting, Southwestern (United States), second edition, 2004 (Antle). Palepu, Krishna G., Paul M. Healy, and Victor L. Bernard, Business Analysis and Valuation: Using Financial Statements, Text Only, Southwestern (United States), fourth edition, 2004 (Palepu). Background: Accounting is called the language of business for at least two reasons. First, accounting terms such as sales, revenues, profit, net income, costs, gross margin, expense, and capitalize are widely used in business. Any businessperson is expected to understand those terms. Second, managers rely on accounting to understand an organization’s economic condition at a point in time and its economic performance over a period of time. As a result, they use accounting information to communicate with others. Managerial Perspective on Financial Accounting will help you understand publicly available financial statements for publicly traded companies and financial statements prepared for internal use. It is also an introduction to financial statement analysis and valuation methods. The basic financial accounting methodology...
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