Business Finance - Economics Final Project Milestone Three: Presentation Draft Assignment

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Summary Executive

Antonio McClan

SPT-620 Finance & Economics of Sport

8/6/2023

Summary Executive

The Adelphi University are a historical and highly accomplished football program in the College Football League. They have an impressive legacy, having secured Championships and Bowl victories. With consistent success in recent years, Adelphi University have maintain their status as perennial Bowl contenders, supported by an enthusiastic fan base with home attendances averaging over 80,000. Their current estimated net worth surpasses $2.4 billion, mainly attributed to sustained profitability driven by sponsorship and merchandise agreements.

Determine the sport organization's financial health based on what you discovered and support your response with information from the most recent balance sheet

After reviewing the balance sheet for the 2020 fiscal year, it is evident that the Adelphi University are in a strong financial position. The balance sheet reports total assets of $1,404,067,000 and total liabilities of $1,000,000, resulting in a net worth of $404,067,000. Additionally, the team maintains a healthy cash position of $79,625,000 and a current ratio of 1.14, demonstrating their ability to meet financial obligations confidently (Asriyan, 2021).

Estimate the costs that the sport organization will need to cover as a result of the proposed project and explain how the estimate was reached.

The successful execution of the proposed project would involve additional expenses for Adelphi University. To estimate these costs, a thorough analysis of the project's scope, necessary materials, labor requirements, and expected duration would be conducted. For instance, a one-year project timeline might necessitate budget considerations for additional office space rental or leasing, procurement of extra equipment, recruitment of additional staff, and any other relevant project-related expenses, including materials and services.

Identify potential sources of revenue that the project will generate for the organization in order to finance the project, with examples.

The proposed initiative presents Adelphi University with potential revenue streams to finance the project. These sources include increased ticket sales, boosted merchandise sales with the introduction of project-specific items, sponsorship agreements and corporate partnerships, expanded media exposure, and increased local market visibility. For example, the initiative might attract more fans through ticket discounts and promotions. The introduction of unique merchandise could entice fans to make additional purchases (Alves et al., 2020). Additionally, attracting potential investors through sponsorship and corporate partnerships would yield supplementary funding. Lastly, enhanced media outreach through various traditional and digital channels could attract a larger audience and potential revenue from sponsors and advertisers.

E. Discuss the economic effects of the proposed project's additional expenses across all departments

The implementation of the proposed initiative will result in economic implications across various departments due to the incurred additional costs. For example, the marketing department will require increased resources to effectively promote the project and attract a larger following. Likewise, the operations department will need additional allocation of resources to ensure smooth project management, adhering to the planned timeline and budget (Alves et al., 2020). The finance department will be tasked with managing the project's budget and meticulously accounting for all expenses. Moreover, the customer service department will need to allocate more resources to handle any potential project-related customer inquiries or complaints effectively.

References

Asriyan, V. (2021). Balance sheet channel with information-trading frictions in secondary markets.  The Review of Economic Studies,  88(1), 44-90.

Alves, M., De Clerck, S., & Gamboa-Arbelaez, J. (2020). Public Sector Balance Sheet Database: Overview and Guide for Compilers and Users.