Business Plan for the Professional Sports Team
The Final Paper is for you to culminate the learning achieved in the course by demonstrating your understanding and application of knowledge in the field of sport finance.
In this assignment, you will create a condensed business plan for purchasing and operating a professional sports team. This is a hypothetical sports team and you may make assumptions to support your key points.
Include the following elements in your condensed business plan:
Overview: Introduce the business plan for purchasing and operating a professional sports team, and provide a thesis statement for your business plan.
Marketing: Discuss how specific marketing promotions will help drive revenue and profitability for your sports organization. Consider trends, market strategy, pricing, sponsorships, advertising, and revenue generation sources, etc.
Tax and Legal Issues: Discuss at least one tax and one legal issue you may face in the purchase or operation of your sports business.
Financial Plan: Develop pro-forma financial statements (5 years) for your sports business. Include:
An income statement on a monthly basis for year 1, a quarterly basis for year 2, and an annual basis for years 3, 4, and 5.
A balance sheet on a monthly basis for year 1, a quarterly basis for year 2, and an annual basis for years 3, 4, and 5.
A statement of cash flows on a monthly basis for year 1, a quarterly basis for year 2, and an annual basis for years 3, 4, and 5.
Important Note: Use a spreadsheet program such as Excel to create the financial statements. Then, embed the statements by copying/pasting them into the final Word document.
Financial Plan Assumptions: For all financial statements, include a list of key assumptions that drive your financial plan.
Financial Analysis: Describe three financial metrics or ratios that you will use to analyze the health of your business.
Financial Risks: Describe three potential financial risks for your sports business.
Mitigate Risks: Describe possible ways to mitigate each of the risks listed above.
Investor Return on Investment: Describe what you will offer potential investors in order to seek funding for your business. Consider types of ownership, stocks, dividends, interest payments, royalty fees, merchandise profit sharing, perks, etc.
Exit Strategy: Describe your exit strategy assuming you are ready to sell the sports business in 10 years.