Recreation & Sport Finance

HHP 2113

Amy Lally, Instructor

(731) 267-4156

Office Hours: Available by appointment

Required Text

Fried, G., Shapiro, S.J., & DeSchriver, T.D. (2008). Sport Finance (2^nd ed.). Human Kinetics: Champaign, IL.

Required Calculator

Texas Instruments BA II Plus Financial Calculator - $29.99 at most retail outlets

Course Description

An examination of the principles of finance as applied to budgeting, operations, and business decisions in recreation and sport organizations. Topics include financial indicators for strategic planning, strategies for generating income and the allocation of revenues.

Course Objectives

Upon satisfactory completion of the course, you will be able to do the following:

Appreciate the current financial status of diverse segments of the sport industry.
Demonstrate the ability to analyze and problem-solve various cases relating to financial management in sport.
Understand the application of financial analyses and forecasts to sport organizations.
Demonstrate appropriate skills with spreadsheets for budgeting and managing financial resources.
Understand fund-raising strategies used to generate revenues for sport enterprises

Tentative Course Schedule
Date	Topic	Assignment
1/15/2008	Student/Teacher Introductions Review Syllabus & Course Expectations Mid-Term Project Assignment*	Review Chapter 1
1/17/2008	Financial Issues In Sports	Review Chapter 2
1/22/2008	Basic Financial Concepts	Review Chapter 3
1/24/2008	Financial Systems & How They Operate	Review Chapter 4
1/29/2008	Recap Chapters 1-4 for Test #1	Study For Test #1
1/31/2008	No class – Free Study Day…	Study for Test #1
2/5/2008	Exam Day – Test #1	Reward yourself… Do something nice for YOU!
2/7/2008	Review Exam & Mid-Term Project Q&A Session	Wrap up Mid-Term Project
2/12/2008	Mid-Term Project Due	Review Chapter 5
2/14/2008	Financial Statements, Forecasts, and Planning	Research a Company*
2/19/2008	Financial Ratios*	Compute Financial Ratios*
2/21/2008	Class Analysis of Financial Ratios	Compute Financial Ratios* Review Chapter 6
2/26/2008	Brief Discussion of Compared Ratios Time Value of Money	Time Value of Money Assignment*
2/28/2008	Review Time Value of Money Assignment	Review Chapter 7
3/4/2008	Approaches to Financial Planning	Financial Planning Assignment*
3/6/2008	Review Financial Planning Assignment	Enjoy Spring Break…
3/11/2008	Spring Break	Be Safe & Responsible!
3/13/2008	Spring Break	Have Fun & Enjoy Life!
3/17/2008	Overview: · Obtaining Funding · Capitol Stocks · Bonds	Review Chapters 8,9, & 10
3/20/2008	Recap Chapters 5-10 for Exam #2	Study for Test #2
3/25/2008	Exam Day – Test #2	Take a nap. You deserve it!
3/27/2008	Review Exam & Final Project Assigned	Review Chapter 11
4/1/2008	Capitol Budgeting	Capitol Budgeting Assignment* Review Chapter 12
4/3/2008	Review Capitol Budgeting Assignment Short-Term Financial Management	Short-Term Financial Management Assignment* Review Chapter 13
4/8/2008	Review Short-Term Financial Management Assignment Inventory and Production Management	Review Chapter 14 & 15
4/10/2008	Taxation & Legal Issues Spending Earnings	Taxation & Legal Issues/Spending Earnings Assignment*
4/15/2008	Review Taxation & Legal Issues/Spending Earnings Assignment	Review Chapter 16 & 17
4/17/2008	Auditing Exit Strategy	Study for Test #4
4/22/2008	Review for Test #4	Study for Test #4
4/24/2008	Exam Day – Test #4	Wrap up Final Project
4/29/2008	Review Exam #4 Final Project Due	If you have given your all… Your grade will prove it! J

It will be imperative for reading assignments to be completed in order to fully benefit from in-class discussions. These reading assignments will be a key component for future success on the tests and projects.

Method of Evaluation

		Total Points
Chapter Tests (4)	100 points each	400
Chapter Assignments (8)	25 points each	200
Mid-Term Project	150 points	150
Final Project	150 points	150
Attendance/Participation	100 points	100
Total Possible Points		1000

Grading Scale

Letter Grade	Range	Points
A	90-100	900-1000
B	80-89	800-899
C	70-79	700-799
D	60-69	600-699
F	59 and below	599 and below

Points will determine the letter grade. Rounding will not be a factor in determining numeric range, as far as the letter grade is concerned.

Class Attendance

Lambuth University affirms the relationship between class attendance and academic performance; hence, students are required to attend all classes. Students are accountable for every class meeting of every course for which they are enrolled. All absences, whether for personal reasons or for official university functions, are subject to this accountability. Whenever it is necessary for a student to be absent from class for any reason whatsoever, it is the responsibility of the student to consult with the instructor prior to class and to make up the work missed. In an emergency, absences must be explained when a student returns to class.

Students will be allowed 3 unexcused absences per semester. All further absences or arriving more than 15 minutes late will reduce attendance grades. After 4 unexcused absences or tardies, students will forfeit all the 100 attendance/participation points for the semester. Participation grades will be heavily influenced by disruptive behavior in class. Please be courteous and turn all cell phones and pagers on vibrate or preferably silent mode.

Academic Integrity

Academic honesty is expected at all times. It is essential in all pursuits of learning. Academic dishonesty includes cheating, plagiarism, and falsification of data or information related to course assignments or activities. Cheating includes the giving or receiving of unauthorized help on quizzes, examinations, or out-of-class assignments; stealing, buying, or selling of an examination before it has been administered; OR the altering of an assignment or the instructor’s comments on an assignment after the work has been graded, for the purpose of improving a grade.

Plagiarism includes submitting material as one’s own without indicating the source if it is not original. Any student who is a party to academic dishonesty is equally guilty, whether having given or accepted assistance.

Students with Disabilities

If a student has a documented disability and wants a learning accommodations plan, the students should contact the Director of Student Disability Services, second floor of Wilder Student Union at 425-3297.

Recreation & Sport Finance

Spring 2008

Mid-Term Project

You will need to look up the 2006 annual report for a sports related company and the 2006 annual report for one of their competitors. This can be anything from Nike v. Adidas to Bally Total Fitness Holding v. LifeTime Fitness; your options are wide open for the sports industry. There is a table titled “Major Publicly Traded Sport-Related Companies” on page 49 of your textbook.

You will be required to analyze the financial statements of each of these companies. There is a wealth of information on the internet; a site that I find helpful is www.yahoo.com. There is a finance tab on the right side of the page that will have very useful information, including the financial statements for all of the publicly traded stocks. At a minimum, you must provide me with the following information:

(1) A company profile for the primary organization you have chosen to analyze. This should include: date of IPO, # of employees, stock price history overview, and any other relevant information that you see as an important factor influencing the financial health of the organization. Attach a copy of the companies Balance Sheet, Cash Flow Statement, and Income Statement to the back of your report.

(2) Compare/Contrast your perceived performance of one the primary company’s competitors. You should address all of the issues described in (1) for the competitor, including the financial statement copies.

(3) At the conclusion of your comparison, state which one of the two companies you would invest in if you had to pick between the two and defend your position.

You may use any information at your disposal either in the financial statements or from any other source. However, I do not expect you to do massive amounts of research, but rather to pursue something that your analysis brings up if you feel it is warranted. I do not expect you to be an expert at stock analysis, at this point, but would expect you treat this assignment as if you were investing your money.

I expect your write-up of these questions to be through, yet concise. I am NOT looking for a thesis. The format requirements are as follows: all of your information should be typewritten in Times New Roman; 12 pt. font; double-spaced; including a cover page.

This Mid-Term project is due NO LATER than February 12, 2008 at the beginning of class.