Economics and Financial Management of Sport – SMGT 506

CG • Section 8WK • 11/08/2019 to 04/16/2020 • Modified 07/27/2021

Course Description

This course provides a comprehensive synopsis of the application of economics and financial management used in the sport organization decision making context from both a macro and micro level.

For information regarding prerequisites for this course, please refer to the Academic Course Catalog.

Rationale

The theory and practice of corporate finance in a context of micro and macro economic principles are essential elements of strategic financial management. The sport enterprise is a multi-billion dollar industry, thus requiring sound financial guidelines and principles for a sport company or organization to maneuver with prosperity through the marketplace. Since financing is the source by which any sport company or organization functions, it is imperative that students understand and apply key concepts to the financial decision-making process. This enables the company to maintain success.

Measurable Learning Outcomes

Upon successful completion of this course, the student will be able to:

    1. Demonstrate the ability to assess financial systems, markets, and basic business organizational structures in the sport context.
    2. Analyze financial statements, formulas, and ratios pertinent to proper financial management.
    3. Ascertain the various components of capital structuring.
    4. Develop a capital budget and plan the strategic financial management of a company.
    5. Examine profits and spending in an effective and efficient manner.
    6. Utilize financial troubleshooting mechanisms for healthy strategic financial management.

Course Assignment

Textbook readings and presentations

Course Requirements Checklist

After reading the Syllabus and Student Expectations, the student will complete the related checklist found in the Course Overview. 

Discussions (4)

Discussions are collaborative learning experiences. Therefore, the student is required to provide a thread in response to the provided prompt. The Discussions in this course are completed over the course of 2 modules. In the first module that the discussion is assigned, the student must post a 400-word thread in response to the prompt provided. In the following module, the student must post 2 replies of at least 200 words each to his/her classmates’ threads. For each thread, he/she must support his/her assertions with at least 2 citations in current APA format. Each reply must incorporate at least 1 citation. Acceptable sources include peer-reviewed academic journals, trade journals (Sport Business Journal/Sport Business Daily, Athletic Business, Sport Business International), Forbes, Fortune, blogs by established sport business journalists, newspapers, and case examples from sport business texts (but not from the course text or existing course materials). Students should seek out information external to the course materials.

Personal Goals Assignment

After reading the first two chapters of the text, students will create and describe three personal goals/objectives for this course that are connected to a course-related, professional position they have or aspire to have. Assignment must be approximately 1000-1500 words and will require the student seek out real world applications.

Sport Organization Revenue and Expenses Assignment:

For the Sport Organization Revenue and Expenses Assignment, students will research official information from financial statements and reports or well-developed estimates in the popular financial press and list the revenue sources and amounts and major expenses and amounts of a sport related business entity (professional sports club, college athletic department, youth travel club, major sports event, sport governing body, summer camp, health and fitness club, sport equipment or apparel company). Students will then provide a short executive summary of the core operational elements of the enterprise- the main revenues and expenses- and comment on any recent or anticipated changes and trends in revenues and expenses. Assignment must be approximately 1000-1500 words and will require the student seek out real world applications. 

Initial Public Offering Assignment

For the Initial Public Offering Assignment, students will research a sport related initial public stock offering (Security and Exchange Commission filings and financial media reports are good starting points). They will assess the success of the IPO including a report of how much capital was raised. Assignment must be approximately 1000-1500 words and will require the student seek out real world applications. 

Ratio Analysis Assignment

For the Ratio Analysis Assignment, students will look at publicly available official financial statements. Based on these statements, students will provide, quantify and compare the positions of two sport-related companies in terms of liquidity, activity, financial leverage, and profitability. Assignment must be approximately 1000-1500 words and will require the student seek out real world applications. 

Research Paper

Topic Selection/Annotated Bibliography

The student will write a formal research paper on one of the topics covered during the course. Prior to submitting the final draft, the student will research his/her topic and submit a topic and an annotated bibliography that lists 3 peer-reviewed sources. APA citations are required. Each annotation must include a summary of the source’s main ideas, how it relates to the selected topic, and the author’s background and a brief description of the author’s intended audience.

Outline

The student will create a 1–2-page outline that details each major section of his/her paper. The outline will include the title page, abstract, introduction, body, conclusion, and references. The outline’s structure must serve as a blueprint for the final draft as it will map out where the citations will be placed and assist in the development of the paper’s supporting ideas.

Final Draft

The student may select any topic featured in the course and write a 13–15-page Research Paper that discusses current issues and includes academic research. The paper must be written using current APA format. Five peer-reviewed sources must be cited throughout the work. The Final Draft must be composed in a Word document and submitted via Turnitin, a plagiarism-detection tool used in Canvas.

Quizzes (3)

The student will be required to complete 3 quizzes over the duration of this course. Each quiz will cover the Reading & Study material designated. Each quiz will be open-book/open-note and contain 20 multiple-choice, true/false, or fill-in-the-blank questions. Each quiz will have a 1-hour and 20 minute time limit.