The financial analysis of the business operations of the Knicks and Lakers

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SportFinanceFinalProjectOutline.docx

Executive Summary

1-2 Pages emphasizing the significant findings presented throughout the entire project.

League/Team Section

History, Background, Birth, evolution to present day, journey, obstacles faced and overcome

Short-term and long-term goals and strategies used by teams and the league

Structure of league and teams – ownership, governance, and any other key players

Industry Section

Set the context for the sport industry you are analyzing. League year, competitors/competitive forces for consumer spending during league operations.

Highlight economic conditions in their competitive space, trends,

Geographical space of operation. Legal or regulatory issues.

Special Circumstances

Any unique issues facing the league or teams. Player entry age, access to international players, player safety focus changing rules, special emphasis on social issues

League/Sport/Team Analysis

Unique qualities of league, team, or sport

Ancillary businesses, leagues, sports that either support or disrupt, minor league or league development strategies.

Market section

Define target market. Demographic analysis of target markets – who, size, reached, affordability

Marketing Strategy

Identify marketing strategies used by the league and/or teams.

Advertising/Selling, Distribution, Product, Place, Price, and Promotion

Operations Section (Revenues and Expenses)

Any critical timelines, issues, factors required in League/Sport/Team operations

Access – to broadcast corporations or directly to consumers.

League/Team relationship – Revenues and Expenses incurred/shared.

The operations sections is one of the most important sections of the analysis.

How does your league and the teams generate revenue - How much do they make and where do they make it.

What major expenses does the league and teams incur - How much do they pay, what areas do they pay in.

How are revenues and expenses covered (shared or individually).

Paint a picture of how the money flows into and out of the league and teams.

You may have trouble getting detailed team specific revenue and expense numbers, but there is usually some general team info about aggregate revenues and expenses and typical distribution across team areas.

Management and Personnel Section

Key league/Team departments/positions and responsibilities required for League/Team/Sport to

be successful

Capital Section

Sources and strategies for necessary capital requirements.

What is the past/current capital structure of the league/teams – How much debt, equity structure (partners, minority owners, majority owner) Popular models

Financial Projections

Where is the money made and lost, growth or reduction. Trends.

Miscellaneous Section

Diagrams, charts, pictures, unusual risks