Kansas City Zephyrs Baseball Club, Inc. 2006 Evaluation of the five (5) items of dispute between Professional Baseball Players Association (PBPA) and the Owner-Player Committee (OPC) 1- Roster Depreciation – The OPC is currently depreciating 50% of the purchase price over the period of six years, where the PBPA feels that the depreciation expense should be recognized at the time of the team being sold. So who’s right? I feel that the OPC is right not because they are following industry standard
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Roster Depreciation The owners. From 1977 to 2004, sports team owners were allowed to treat 50 percent of the team purchase price as an asset depreciable over no more than 5 years. Deferred portion (20%) of compensation The owners. It is an accrued expense, The Company may owe its own players’ salaries and wages for work performed, but not yet paid. Even though they are to be paid at some future date, they are indicated on the firm's balance sheet from when the firm can reasonably expect
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Kansas City Zephyrs Baseball Club, Inc. This case helps demonstrate how different accounting techniques can come to different results. In this case I believe the owners of the team were not being completely honest in the way they were allocating expenses and therefore indicating losses instead of profits. There are three areas that the players association did not agree with the expenses allocated by the owners of the team. These areas are the Roster depreciation, the player’s compensation and
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KANSAS CITY ZEPHYRS BASEBALL CLUB INC. In this case we have a typical issue related with different accounting approaches analyzing expenses generated and paid in different periods. We have the position of the Owner-Player Committee (OPC) representing the owners who obviously want to present low profitability in their financial statements to get a better treatment for taxes and in the other side we have the position of the Professional Baseball Players Association (PBPA), the organization representing
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KANSAS CITY ZEPHYRS BASEBALL CLUB This case illustrates some basic accounting issues in a controversial setting. There are two parties in the case, which are Owner-Player Committee (OPC) – owners’ representative of the 26 major baseball league teams in collective bargaining negotiations and Professional Baseball Association (PBPA) – the player’s union. As we know, the baseball team owners and the players association were engaged in collective bargaining negotiations, so Bill met with Keith
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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
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profits? How should Bill Ahern resolve the accounting conflict between the owners and players? How much did the Kansas City Zephyrs Baseball Club earn in 1983 and 1984? Facts This case shows that how different accounting methods can lead a company to different positions. That is what Bill Ahern was selected on April 9 to focus on reviewing the finances of the Kansas City Zephyrs Baseball Club, Inc., which was bought on November 1, 1982 by five shareholders for $24 million, because both the representatives
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towards the building of a new ballpark in your area. Within ten minutes of my house in Kansas City, Kansas we have had two stadiums built within the last 12 years, Sporting KC Park (MLS) and Community America Ballpark (minor league baseball). Sporting KC park was built using STAR bonds (only available in Kansas and Nevada) and according to the Kansas Department of Commerce, sales tax revenue (STAR) bonds provide Kansas municipalities the opportunity to issue bonds to finance the development of major commercial
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Grantee, whose post office address is 3214 Benton Blvd., Kansas City, KS 66105-2843. WITNESS, for and in consideration of the sum of EIGHTY-SEVEN THOUSAND and 00/100 DOLLARS ($87,000), Grantor does hereby GRANT to Grantee, all of the following real property lying in the County of Wyandotte, State of Kansas, and described as follows, to wit: Lots Fifteen (15) and Sixteen (16), Block Sixty-three (63), Original Townsite of Kansas City, Kansas, SUBJECT TO mineral conveyances, easements, special
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Economic Impact of a Casino in Wyandotte County, Kansas It is estimated that more than a quarter of the U.S. adult population, 56 million people, visit casinos annually. Making over 371 million trips to casinos, Americans spend $30 billion each year in these facilities. Casinos also employ over 360,000 people and contribute more than $5.2 billion annually in direct gaming taxes to state and local governments. Casinos are favored by politicians for several reasons; gaming taxation being
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