...Large Salaries of Pro Athletes Negative Effects On Athletes and Sports Abstract This paper will explain the effects of the luxury contracts of athletes on sports as well as the athlete. The debate is whether the effect is a negative effect or not. This paper will aim to show how the contracts of athletes have changed significantly over time. It will also show how the pro athlete affect the sport of college in different aspects and if that helps or hurt the college athletics or influences it in a way to help the athletes. Then we will focus on how the salaries affect the players themselves. We take a look at today’s professional athlete and wonder what it be like to live like that. Even though the professional athlete is few in numbers, the popularity of such sports industries as the NFL, NBA, MLB and etc. are well documented by the lucrative pay days. The major sports industry is at least a 100 billion dollar business and growing. The athlete’s income only consist of a small percent of this amount, which leaves the majority to the industry itself. Though we must take into account the exploits of the professional athlete. The perception of today’s athlete has drastically changed from that of the last decade, and even as early as the 80’s. One of the major changes would be the drastic increase in the salaries paid to professional athletes. The high salaries have robbed what most would say the passion for the game that the athletes of early age played before the luxury...
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...mean that there would be a cap on what different people could earn in different professions. For example a Doctor may be able to earn a maximum of £200,000 per annum whilst a footballer may be limited to £1 million per annum. Unequal distribution of income is were groups of the population are receiving a much higher income then others. For example in the UK the average income of 90% of the population as whole in 2012 was £12,969 whilst the top 10% was earning around £79,000 and the top 1% having an income of £271,888 [The equality trust income inequality in the UK report 2013]. There is an unequal distribution of the income here because the top 10% of the population are earning around 600% more then the rest of the population. Maximum wage legislation could help reduce unequal distribution for several reasons. The main reasons is due to the simple fact that if the people at the top of the pay chart were to have caps placed on their incomes, then their incomes would most likely fall to this cap or below it and therefore the difference between the top and lowest incomes would be reduced. This would be a good way of reducing unequal distribution of income because unlike a minimum wage this legislation would be unlikely to cost firms money but in-turn save them money. This is because the firms would gain the surplus of the money already being paid to employees in comparison to the cap whereas a minimum wage can sometimes mean that firms will have to pay their lower paid employees...
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...with embedded options 10) Interest rate derivative instruments 11) Valuation of interest rate derivative instruments 2 • • 1. Features of Debt Securities • Issuers: – Central government (e.g. US government) – Government agency (e.g. Fannie Mae, Freddie Mac) – Municipal government (e.g. city of Detroit) – Corporation (e.g. Coca-cola) – Supranational government (e.g. World Bank) Categories of Fixed income securities 1. Debt Obligations: • Borrower promises to pay amounts x1…x2 at times t1…tn to Lender (creditor) • Interest and Principal 2. Preferred stock: • Ownership interest in a corporation • Priority over common stockholders Bond’s indenture: – Contains promises of the issuer and bondholder rights – Identifies a trustee as representative of the interests of bondholders – Contains covenants • • • • • • • Affirmative covenants – What borrower should do, e.g.: • Pay interest and principal on timely basis • Pay all taxes when due • Maintain all properties in good condition Negative covenants – What borrower is not allowed to do, e.g.: • Not to issue additional debt Term to maturity (maturity, term): years remaining – 1 to 5 years=short term – 5 to 12 years=intermediate term – More than 12 years=long term Par value: amount issuer agrees to repay at maturity –...
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...current market rents, Laflin would still need a great deal of growth in addition to a lower negotiated price to make this investment profitable. Question 2 Laflin’s setup suffers from some overly optimistic assumptions. His revised set up assumes a base rent of $200k, which would imply that the current tenants keep paying their current rents, when the tenants have actually explicitly stated they would only extend their rents if they could pay the market rate of $2.00 PSF. If Laflin were to find new tenants, he would incur additional expenses of $230k ($2.50PSF x 80,000 SF = $200k, 15% x $200k first year rents = $30k). Additionally, Laflin would then be exposed to the market vacancy rates, which his potential competitors’ show averages to about 16%. Furthermore, given that market rents are $2.00 PSF, new tenants would most likely only be willing to pay this lower rate. The only Hope Laflin would have is for the market to grow so he could raise the rents every year on new tenants (assuming they sign a lease which allows him to raise such rents). My model displays how Laflin’s setup changes if he takes into account the varying vacancy rates, and what price reductions he would have to ask for if he were to hope for a positive operating leverage. Question 3 Laflin’s decision to make an offer for the property will be based on his manipulation of various factors. Assuming New Tenants, Moderate...
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...Linear Regression Analysis of cost effectiveness in risk management Group 8 Abstract This research study explores the possibility that relate cost effectiveness to management’s philosophy of controlling the company’s exposure to various property and casualty losses, after adjusting for company effects such as size and industry type. Using data provided by Professor Joan Schmit and are discussed in more detail in the paper, “Cost effectiveness of risk management practices,” Schmit and Roth (1990). The data are from a questionnaire that was sent to 374 risk managers of large U.S.-based organizations. Through primary analysis, we hypnotized that control variable CAP, control variable INDCOST, and control variable CENTRAL are positively associated with cost effectiveness, and control variable ASSUME, control variables SIZELOG, and control variables SOPH are negatively associated with cost effectiveness. By analyzing the qualities and quantities characteristics of the data, utilizing R to build linear regression models and compare them through R squares and residual analysis to decide the best one, and finally use the model to do interpretation and hypothesis tests to support our hypothesis and findings. Introduction 1. Research Background and Purposes In corporate business world, risk is the main cause of uncertainty in any organization. Thus, companies increasingly focus more on identifying risks and managing them before they even affect the business. The ability...
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...Nonprofit Organization Case Study – Community Action Program of Lancaster County Pennsylvania Melissa G. Hartman Liberty University – HLTH 635_B01 June 16, 2016 Nonprofit Organization Case Study – Community Action Program of Lancaster County Pennsylvania Introduction/Background Imagine not having a job or having a job that pays minimum wage or less, food insecurity, and a home in a neighborhood that is run down and considered unsafe. This is the scenario of what millions of Americans are living each and every day with some wondering what can they do to make their lives better. Poverty is defined as a state of being extremely poor and is determined by the federal poverty guidelines established by the U.S. Department of Health and Human Services.1,2 For a family of four, the federal poverty guideline to apply for federal assistance is $24,250.2 According to the nonprofit organization, Feeding America, which helps feed America’s hungry through a network of food banks, 46.7 million people are living in poverty in the United States.3 Specifically in Pennsylvania, 13.7 percent of people are living in poverty.4 Poverty in the United States is very real and unimaginable as because we are considered one of the wealthiest nations in the world. Although poverty in the United States is happening at rates that are hard to understand, it seems poverty in America is more about lack of basic necessities and lack of security to include food and housing.5 It is estimated that...
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...The Curt Flood Act but an abrupt halt to MLB’s exemption from the Sherman Act, as it applied to labor relations. It allowed the union to sue owners if anything went wrong during contract negotiations. This could of ultimately had its positive and negative side. One the positive side, it had public opinion; however, each individual contract could possibly have to be negotiated. 6. The responsibilities of the NLRB a. Supervise elections for labor unions. b. Handle unfair labor practices. These were used effectively twice: (1) 1972 – charges were filed that club owners were not providing financial information necessary to represent members, and (2) in the 1994 strike, it was ruled that owners had implemented their contract before an agreement had been reached. 7. Weapons that the union has include being able to file antitrust charges in federal courts and they could possibly go on strike. They could enforce steroid testing and make it a mandate. They could also perform pickets at major games or raise public awareness of grievances towards teams and players. The Union has may weapons they could use. 8. Several pressures were felt by Donald Fehr and his negotiating team. Not only are these pressures felt by Fehr and his team; but they are also felt by everyone else...
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...Negative Effects of Overpopulation Depletion of Natural Resources The effects of overpopulation are quite severe. The first of these is the depletion of resources. The Earth can only produce a limited amount of water and food, which is falling short of the current needs. Most of the environmental damage being seen in the last fifty odd years is because of the growing number of people on the planet. They are cutting down forests, hunting wildlife in a reckless manner, causing pollution and creating a host of problems. Those engaged in talking about overpopulation have noticed that acts of violence and aggression outside of a war zone have increased tremendously while competing for resources. Degradation of Environment: With the overuse of coal, oil and natural gas, it has started producing some serious effects on our environment. Rise in the number of vehicles and industries have badly affected the quality of air. Rise in amount of CO2 emissions leads to global warming. Melting of polar ice caps, changing climate patterns, rise in sea level are few of the consequences that we might we have to face due to environment pollution. Conflicts and Wars Overpopulation in developing countries puts a major strain on the resources it should be utilizing for development. Conflicts over water are becoming a source of tension between countries, which could result in wars. It causes more diseases to spread and makes them harder to control. Starvation is a huge issue facing the world...
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...Airway Corporation is an American low-cost airline and it was one of a few U.S. airlines that were profitable during the sharp downturn in airline industry affected by the September 11, 2011 attacks. With its strong capital base, the company was successful due to its impressive management team, in which, David Neelaman has rich experience with airline start-ups; COO David Barger and CFO John Ower are all experienced former senior managers from other airlines. The company’s sales rose from $104,618 to $320,414 from December 2000 to December 2001 and net profit is negative $21,330 in December 2000 and reach positive $38,537 only one year later. As we can see, the company is a high growth company with huge potential. To meet its further growth needs, it going to public to finance more money. The advantage of IPO is by raising more capital, the firm could use the capital to fund capital expenditure (buy more airplanes), pay off existing debt and also it increase public awareness and let potential customers know their products. Subsequently, this may increase its market share. And the venture capitalists may want to use IPO to cash in on JetBlue as they helped start-up. The disadvantages is that JetBlue has to disclosure more information for investors, prepare periodic financial reporting and they must also meet other rules and regulations that supervised by SEC. it is always costly of complying with regulatory requirements, such as preparing additional paper work, audit fees, investor...
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...Enclosures/Graphics/Charts 16 Performance Appraisal and Job Evaluation Process A case study on “Dada Corporation” Introduction a) History of the organization: In 1974, current CEO, Boo YI Park starts a humble but bold headwear manufacturing business with just 5 sewing machines. 1974 ~ 1988: Venturing into headwear business Dada traces its root to Daedo trading, a company Dada’s current CEO B.Y. Park established in 1974. Believing that importing raw materials and subsequently processing and exporting them as a business with no basis, Park always wanted to start a manufacturing business. While Park was traveling in the United States in the early 1970’s, he noticed many young and old people wearing sports caps with affection. Park immediately decided to venture into headwear business and set up a small...
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...|Universitas Gadjah mada | |Organizational Behavior | |Case study: The Pay-for-Performance Program among Denver Teacher Hits a Roadblock | | | | | |[pic] | |By Umar, Fitri and Claudia | |10.04.2012 | 1. Analyzing the Denver Public School’s pay-for –performance plan to motivate teachers it appears that while the school district has good intentions their plan is a bit short-sighted and has caused conflict between the two of the three major parties, the school district and the teachers’ union, while hurting the third and most important party, the students. Looking...
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...Wesfarmers Financial Strategy 1. Pro-forma Financials assuming that Wesfarmers re-financed the $4bn bridging facility with debt. i) Pro-forma financial statements [pic] Comments on results: Under the alternative financing scenario, the $4 billion bridging facility used to fund Coles acquisition and working capital is replaced by a long term debt facility. The debt facility has the same terms as the USD650 million (i.e. AUD $711 million) bond issue which has a 5-year duration at 6.998% p.a. interest rate. The interest bearing debt will increase by $3,289 million from the 2009 level, assuming the USD650 bond issue is treated as long term liabilities in the 2009 report. The interest expense will increase by AUD$230 million (6.998% of $3,289 million equity funding equivalent). Shareholder equity is $3,289 million less under the alternative scenario, which also means that annual dividend payout is reduced by $470 million assuming $1.10 per share payout for FY2009. Financing Cash Flow [pic] Interest Expense increases with increased debt from $737m to $938m Profit after Tax reduces by $313m from $1,535m to $1,224m. This is due to the increase in interest which is partially offset by the tax benefit of interest. Interest Bearing Debt will increase by $3,289m Shareholder Equity reduces by $3,289m. This is due to the rights issue being replaced by long-term debt, increasing the debt-holders interest in WES. Financing Cash Flow increases by...
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...Ralph Thomas ECON212-1402B-04 Principles of Microeconomics Professor: Lance Brofman Phase: 2 Individual Projects June 2, 2014 What is the price elasticity of demand? What determines it? What is elastic and inelastic demand? The Price Elasticity of Demand (commonly known as just price elasticity) measures the rate of response of quantity demanded due to a price change. The formula for the Price Elasticity of Demand (PEoD), (Moffat, M., para1 economic, about.com) is: PEoD = (% Change in Quantity Demanded)/ (% Change in Price) * If PEoD > 1 then Demand is Price Elastic (Demand is sensitive to price changes) * If PEoD = 1 then Demand is Unit Elastic * If PEoD < 1 then Demand is Price Inelastic (Demand is not sensitive to price changes) The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded. =40/20 =2 The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quantity demanded =10/5 =2 Why is elasticity an important concept for a business? If you use elasticity of demand information to predict the potential impact of a price fluctuation on the total sales revenue, the price elasticity of demand is a way of looking at the sensitivity of price related to product demand. Demand elasticity is an economic concept also known as price elasticity. Price elesticy can be a confusing at times but its main reason is to help the company gain the maximum profit possible. If you utilize the versatility of...
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...Negative Economic Impact of the Patient Protection and Accountable Care Act The Patient Protection and Affordable Care Act (PPACA) also referred to as ObamaCare, federal healthcare law, Affordable Care Act, or ACA, is a United States federal Statute signed into law on March 23, 2010, by President Barack Obama. In combination with the Healthcare and Education Reconciliation Act, it represents the most significant regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 (Patient Protection and Affordable Care Act). The PPACA is intended to increase the number of health insured Americans and reduce the overall costs of healthcare. The PPACA will revamp the current health insurance system by extending health insurance coverage to nearly 32 million currently uninsured Americans; 18 million through Medicaid expansion to individuals with incomes under the 133 percent federal poverty line (FPL), and 18 million through government exchange subsidies to individuals with incomes up to 400 percent of the FPL. Citizens and legal residents in families with income between 100 and 400 percent of poverty who purchase coverage through a health insurance exchange are eligible for a tax credit to reduce the cost of coverage. To subsidize the additional 32 million individuals covered, the new law introduces 18 new taxes and penalties on individuals, employers, and businesses (Campbell). Though the PPACAs intent is to lower healthcare costs, it will...
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...European Economic Policies 1. THE MULTIPLE DIMENSIONS OF AN ENLARGED EUROPE 1.1 THE HISTORICAL DIMENSION Many unprecedented achievements characterize the Europe we see today; for the first time since Charlemagneʼs Holy Roman Empire in the 9th century in the ninth century, most of the European continent (400 million citizens) is again united and in peace. For the first time (at least since the last century) a set of countries have autonomously decided to relinquish to a supranational authority the control of one of the key symbols of a nation, its currency, without renouncing their identity or independence (along with numerous innovations). All this in less than 60 years. Historically, a period of war in Europe has ended with one or more treaty (e.g. 30 years war → Westfalia, Napoleonic war → Vienna Congress, WW1 → Versailles) The end of WW2 produced a series of treaties which, among other things (UN), laid down the founding pillars of the modern European Union The First 40 years (1950 – 89) Its acknowledged that the start of the European integration can be identified in the “Schuman declaration” a speech by French foreign minister in 1950. He proposed that France and Germany and other nations wishing to join, pool their coal and steel resources. It was an opening of credit to Germany (only 5 years after the first tank left Paris) and it implicitly recognized the new world order with france and germany allied with the US. It was also a security measure for France with respect to Germany...
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