Final Paper/ Powerpoint

Professional sports teams usually involve a team that is an affiliate/member of a national sports league, such as the national football league, National Hockey League, and National Basketball Association, among other sports associations. Due to the high flow of income generated by professional sports teams, their ownership and business structure form an essential element. Most of the professional sports teams employ the corporate structure form of business ownership. Like other corporations, the professional sports teams have an independent legal entity separate from its owners. As a result, they are required to comply with various set legal and tax requirements. The revenue generated by these sports teams is usually subject to taxation; hence they are required to comply with the government tax requirements. The corporate structure incorporates essential departments that help in ensuring proper management of the teams and finances. Since these teams have a corporate ownership structure, they have the right to raise and borrow funds from different sources. For instance, they engage in selling of stock and shares to raise funds or revenue. The ownership of theses sport teams is controlled by the owner partners and the shareholders (O’Reilly, 2019).

The article about college sports presents several key concerns regarding Intercollegiate athletics. One of the primary issues of concern is the increasing athletics budgets in colleges that exceed educational budgets. The subsidies provided by institutions to the athletics budgets are also increasing steadily, but the budgets remain high. The increase in the budgets is mainly contributed by the construction of new facilities and upgrading existing ones. For instance, most stadiums have been refurbished and renovated to add capacity, luxury suites, and other essential amenities that can generate more income. However, these facilities are primarily financed through private borrowing and selling bonds. As a result, this has led to increased debt burden and budgets for the college athletics budgets. The athletics directors are faced with a dilemma on how to cut the budget costs, which leads to deficits. The other concern is that athletics programs are now considering finding new revenue sources to manage their rapidly expanding costs. They are seeking help from the commercial world, including marketing firms, television networks, event promoters, ticket brokers, and sponsors from different corporate sectors. However, this creates intellectual property questions for both the student-athlete, the institution, and the commercial world (Weiner & Suggs, 2009).

Various factors should have been considered in the financing of PETCO Park. Sports stadiums can be financed using private or public funding. However, determining the appropriate source of financing requires consideration of various factors. Regarding PETCO Park financing, the officials should have considered the repayment terms offered by different lending institutions or sources to determine the most appropriate financing source. Another critical factor that should have been considered is the amount of interest and fee structures. The amount of interest charged and various costs associated with lending should have been considered to avoid high-interest rates burden and other related costs. Moreover, the officials should also have considered lender financing requirements. Different lending institutions, such as banks, among others, have different financing requirements. For instance, banks have various lending rules that all borrowers must comply with (Fried et al., 2013). With this, PETCO should have considered the financing sources with favorable lending requirements, based on its financial needs.

Sports Leaders and managers have a primary role in ensuring effective leadership and better management of sporting activities, facilities, and finances. They should represent the interest of the members, shareholders, and all other stakeholders well to enhance growth and success. For instance, in the bible, Zechariah 3:7 provides that those who work in obedience and follow all the set requirements will be given more leadership authority. Also, 1 Peter 2: 13-4 in the bible requires people to always do good and submit to the authorities. As a result, the sport leaders should focus on doing good for the benefit of the entire sports team, including the owners, members, shareholders and other stakeholders. By doing this, they will be rewarded as God says so.

References

Fried, G., DeSchriver, T. D., & Mondello, M. (2013). Sport finance. Human Kinetics.

O’Reilly, N. (2019). Professional team ownership models in North America. In Routledge Handbook of Sport Governance (pp. 129-149). Routledge.

Weiner, J., & Suggs, W. (2009). College sports 101: A primer on money, athletics, and higher education in the 21st century. Retrieved from Knight Commission Website: www. knightcommission. org.