Question 4520
tommyb1972
FinancingsportsinNEMAregion3.pptxFinancing sports in NEMA region; funding of stadium and sports infrastructure
Name of the student
Name of the professor
Date of submission
Analysis of the article
There has been a recent growth in sport industry in Middle East and Northern Africa (MENA).
Increase in popularity for sporting exerted pressure on better infrastructural support to facilitate success of event.
The growth has been as a result of recent hosting of important sport events.
High profile sport event is the best way of advertising companies and government ideas.
It has led to massive support in the development of sport venues.
Analysis of the article
The increased demand has led to recent growth of world class sport events that can support international sport events.
The article address different methods that are allowed by Islamic law of funding finance
The following need to be addressed; debt-equity ratio, considering interest rate and rate of return by use of NPV,IRR, and payback method.
It also address the possibility of private partnership in funding sports.
The development of Bahrain international circuit for F-1 is the main source for private partnership that can help improve sport funding in NEMA.
Sukuk and public-private partnerships promotes sport funding in the region
Critique and response for the article
Sports venue in NEMA are still of low quality that require funding to improve.
For the region to hold high profile event it has to improve the stadiums to be of international standards.
Funding of sport events and infrastructure is regulated by the law.
Financial ratios such as Debt-equity ration need to be considered.
For the partnership with private sector to be successful the rate of return must be considered.
Investors are willing to fund sports provided the rate of return is high from the funds invested.
To decide on the best financing approach there is need to consider time and interest rate
The value of money changes with change in time because of fluctuation of interest rate
Methods used to calculate the best sport event to be financed include the use of payback, IRR, and NPV.
With all consideration and partnership between the public and private sector the funding for sports events and infrusture will be successful.
Reference
Watanabe, N. M. Financing sport in the MENA region: Islamic banking and the funding of sport stadiums and infrastructure.
