SCIENCE ASSIGNMENT(NO PLAGIARISM, A++ WORK, QUALITY, ON TIME)

I. **Respond to discussion questions no more than 300 words (2 refences)**

Earnings typically refer to after-tax net income, sometimes known as the bottom line or a company's profits. Earnings are the main determinant of a company's share price, because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. Earnings are perhaps the single most important and most studied number in a company's financial statements. It shows profitability compared to analyst estimates, the company's own historical performance, and relative to its competitors and industry peers.

The final step in the capital budgeting process is to conduct a post-audit analysis after the project has been completed. This step is often a forgotten element in the capital budgeting process. In the post-audit, we compare the project’s actual results with the predicted results and attempt to explain any differences. Post-audit analyses allow managers to make improvements to the firm’s forecasting techniques.

A business exit strategy is an entrepreneur's strategic plan to sell his or her ownership in a company to investors or another company. An exit strategy gives a business owner a way to reduce or liquidate his stake in a business and, if the business is successful, make a substantial profit. If the business is not successful, an exit strategy (or "exit plan") enables the entrepreneur to limit losses. An exit strategy may also be used by an investor such as a venture capitalist in order to plan for a cash out of an investment.

In 2008, we experienced a global recession which caused financial problems in most industries. Discuss the effect of the global recession on sports finance. Was there a difference in the financial impact of the recession on the different sectors of the sports industry?

II **Respond to W.L. Post, no more than 150 words**

The 2008 global recession was felt in all markets, sports were no exception. In many regions we saw the bottom fall out of the housing markets. We also saw people lose their jobs as corporations were forced to close their doors either temporarily or in some cases permanently. With many people losing their jobs or homes, it is not hard to believe that entertainment such as sports would suffer as well. Sports rely heavily on consumer spending on tickets and other memorabilia (Humphreys, 2010). With people not making money, they quickly found ways to cut and generally speaking this starts in the entertainment department. Fans were no longer able to attend games which was one of the leading impacts of the recession on sports. This decline in attendance was only one of the things felts from the recession, the list is actually vast.

Another effect the recession had on the sports industry was because of layoffs. Across the NFL 10% of the workforce was cut (Van Riper, 2008). Obviously, the NFL had to find a way to create savings and layoffs was a starting point for them. With the downsizing in our own country, the ability to travel to play sports overseas was also negated. The NFL had to scrap games they had planned to play in China in an effort to cut costs (Van Riper, 2008). Finally, the last impact and most important to the players was that contracts written during the recession were generally for shorter periods of time and less money (Van Riper, 2008).

Smaller leagues were not as fortunate as the NFL, NBA, or MLB, and layoffs were not a way they would save enough money to stay afloat. Leagues like the Arena Football League had to cancel their whole season or they would risk losing their league totally (Van Riper, 2008). Teams like the WNBA’s Houston Comets had to cancel their season before it even started as the WNBA at the time was a money-losing league (Van Riper, 2008). Larger leagues ultimately navigated the recession and were able to make it out on the other side, largely unscathed. Smaller leagues and venues felt the damage for quite a while. What is important to note about the 2008 recession as opposed to the current pandemic is that the world was in a different place 12 years ago.

Most markets now have a large presence via streaming or TV network deals. In fact, most teams make a good amount of their money from the TV contract negotiated by their league. While teams are still feeling the financial impact that the lack of fans is causing, it can be offset with some creative ideas that were not as prevalent in 2008. I think as we continue to forecast being in our current posture for the foreseeable future, teams will continue to be creative and find ways to save money while keeping the fans involved.

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