Tottenham Hotspur Case There are many football clubs listed in the London Stock Exchange among them Tottenham Hotspur Football is a one of the leading English professionals’ club and also a member of Premier League. Since 2001 Daniel Levy has been the chairman of Tottenham Hotspur plc and has been thinking of possible options and potential players to take his club to the top position of the British Premier League. In order to succeed in his objective and to establish a sound foundation for long term financial success, he thinks two things are very important; building of new stadium and Improving team quality through prudent player achievements In order to achieve the two main objectives listed above the following are the three alternatives which have been scrutinized using Discounted Cash Flow Analysis: to operate the current stadium which has 36,500 seats and keep a single goal scorer, to build a new stadium having 60,000 seats capacity with external financing and keeping a single goal scorer or signing a new top scorer to play in a newly built stadium. Under the first alternative, the Net Present Value for Tottenham Hotspur plc during the past 13 year forecasted period, was calculated to be £67.68M. This calculation will encourage the stakeholders to keep the current stadium in use. While the company has a high operating current cost with Net Income coming to about 2% of total revenues. If Tottenham Hotspur follows the second alternative, the NPV is estimated to be £27.51M, while using the third alternative results in a more favorable value of £82.32M. So the option of stadium and player will increase substantially from 2010 onward, only if the growing rates apply. Further analysis has been performed in order to find out the fi... ... middle of paper ... ...of £87M and below the 24.6 net goals of Liverpool who has net revenue of £123M. This lifting in ranking will give an estimated increase in revenue of about £95M at the 2007 value. This new revenue will follow the forecasted growth of 9% from 2010. In this calculation the increase of broadcasting rights have been included and the £20M transfer fee has been accounted as a tax deduction. Thus adding the cost and revenue of new player will increase the NPV to £82.32M. Recommendations After performing NPV analysis, it is clear that the best option with no financing is to keep the current stadium. However, this choice will not increase the current ranking and revenue. The current financial performances with low income will recommend following activities that will be implemented to improve the company’s bottom line: · Increasing ticket sales and introducing the new financ
Fixed costs of $100,000 plus the variable costs of $60,000 will give us $160,000 in total expenses. The gross ticket sales of $660,000 minus the total expenses of $160,000 give us a yearly net income of $500,000. The new lift has an economic life of 20 years and we would like to make 14% on our investment. The NPV factor of 14% at 20 years is 6.6231. By multiplying our net yearly income or our annuity of $500,000 times the NPV factor of 6.6231 we will have a NPV of $3,311,550.
Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
Football academies are environments in which promising footballers are trained and developed with the goal of becoming elite senior athletes (Crust, Nesti & Littlewood, 2010). English academies operate a dual sporting goal according to Isoard-Gautheur, Guillet-Ducas & Duda (2013), in which they aim to teach and help athlete’s master skills, but also have an obligation to ensure enough athletes break through into the senior team. Academies train athletes from the ages of 10 to 18 on a part time format, using elite coaches and elite competition between other academies to enhance their player’s ability (Crust, Nesti & Littlewood, 2010). Academies are very much utilised as a progressive filter, which begins with a large number of athletes at the youngest age, with progressively smaller numbers of athletes in each age group as age increases (Crust, Nesti & Littlewood, 2010). Whether an athlete is retained for the next year is subject to player evaluation by coaches and directors within the academy, thus requiring athletes to demonstrate competency as well as achieving success (Isoard-Gautheur, Guillet-Ducas & Duda, 2012; Crust, Nesti & Littlewood, 2010).
The total cost of the Cobb County stadium project is estimated to be $672 million dollars, which will consist of both public and private funds. The public funds will come from t...
...the citizens of the city socially. It will provide a great night life, as well as other entertainment venues that can be brought in for use of the stadium. However to sell a stadium in a city by claiming economic benefits involves many risks, it will most likely not benefit the city and its people to have a sports team in your city.
Edward Hopper is best known for his paintings depicting city life during the first half of the century. Some of his works, such as Night Hawks, would go on to become pop culture references. One of his paintings, Office in a Small City, at first glance simply depicts a man looking out of his office window, almost as if he is daydreaming but there’s more to it. Office in a Small City is not just a painting of an office worker, it is a critique of Urban living in America. It's a reflection of Hopper's ambivalence towards America's rapid march into modern urbanism, the isolation and loneliness he felt in the face of such changes. A theme that appears in many of Hopper's other paintings and reflects his views on urban living.
Therefore Billy Beane decides to set an unconventional strategy in order to be able to compete with other wealthy teams “out there”. His goal setting is based on the strategy he sets for his game in what he calls “an unfair game”. Manager Billy knows that decreasing cost is the main concern of the top executives of his team. The main shareholders and stakeholders have set their goals based on their conservative approaches. To be more specific, the top manager of Oakland Athletic is not willing to take any risk in order to pay more money to recruit better players.
It is important to clarify some key assumptions that were made in valuing the properties to this NPV. First, the project yields a high IRR of 73 %, due largely in part to the sale of each building upon lease up. For the cash flow projections, it was assumed that all buildings are sold 18 months after construction completion. Therefore, with the exception of the last building to be sold, Heron Quay, the buildings are sold toward the end of their free-rent periods and no rent is collected.
Since he was officially named the manager of Manchester United Football Club on 6 November 1986, Sir Alex Ferguson has led the team to 13 English titles as well as 25 domestic and international trophies. Bringing almost double titles and trophies to the team than Sir Matt Busby, the second most successful manager of the team, Ferguson has been much more than just a coach. As Anita Elberse wrote in her article, “He played a central role in the United organization, managing not just the first team but the entire club. “Steve Jobs was Apple; Sir Alex Ferguson is Manchester United," says the club 's former chief executive David Gill.” (116) With the help of Sir Alex Ferguson himself, Anita Elberse made some analysis on the methods that contributes to Ferguson’s successful manager career, which resulted in the famous Ferguson’s formula. The formula consists of 8 leadership lessons that every leader could
From 2001 2002 there was a 23% increase in the construction of sports stadiums and arenas with costs of those facilities upwards of $7.8 billion. The growing global sport industry requires that sport facility and event management keep current of new and proven management techniques. Sport Facility Management: Organizing Events and Mitigating Risks by Ammon, Jr., Southall, and Blair, provides readers with a basic introduction to elements of facility management for the full range of sporting and entertainment events. There is a high demand for individuals who are educated and trained in facility management, event organization, and risk management and since the September 11 attacks there has been a great emphasis placed on facility and risk management. Each chapter provides theoretical foundations and practical applications for each critical phase of facility management. The authors provided photographs, case studies, and industry examples to assist the reader in gaining an overall basic, picture of the sporting event and entertainment industry today. The book provides in-depth discussions about positive advances that have made the entire experience easier and more comfortable for fans; and about the negative economic and cultural consequences for sport events after September 11 2001.
The sports franchise gains by reducing the amount of capital that it has to spend in building the new stadium. They receive a new stadium with more seats and therefore they receive more profit. The local businesses gain financially as well with increased traffic of fans who come to the games. More fans means more meals, rooms, and souvenirs sold. In addition, as least at the beginning of the project more construction jobs are created in order to build the new stadium and possibly new jobs are created at the stadium itself. The elected officials is motivated by receiving a good track record of successful referendums, by trying to sell the stadium to the public as something they should really want in their communities. The people who are losing through the outcomes of the new stadiums are those who do not want one in their community. Perhaps people who do not like sports and will never attend a game or people who do not appreciate the added traffic on the roads on game days. These people are forced into paying for something they will never use as well as something they may despise and the added traffic they have to deal with is a nuisance to
Strategic management is critical to the development and expansion of all organizations. Sports Direct must align its mission and vision with its operations to keep itself accustomed with its surroundings (Joseph & Eshun, 2009). The firm must consider potential strategic issues surrounding the importance of sustaining their competitive position without compromising on cost or value, whilst maintaining superior operating efficiencies.
The following chapter assess contributions to the literature, most notably the work of Linus Addae, Martin Owusu Amoamah, Iddrisu Wahab Abdul and Osei Antwi on the trend analysis of Manchester United. The methodology of the work is assessed, as well as the adopted model and corresponding interpretations. A summary chapter highlights the conclusion of the work followed by the bibliography and the estimated tables and
When it comes to profit, Pick n Pays share price on the JSE has vaulted 29% within the last year. The franchises numbers for March showed a turnaround in margins from 17.4% last year up to 17.5%. Sales increased by 7.7% to R63.1 billion. Trading profit improved by 18.5% (and 34.4% on a comparable basis after three consecutive years of decline) (BDLive, 2014).