KANSAS CITY ZEPHYRS BASEBALL CLUB: A BASEBALL ACCOUNTING DISPUTE
The controversy between the owners and players concerning how to account the expenses is crucial to understand if the company could be profitable and then able to meet players’ requirements. In this case three problems are under the scrutiny of the arbiter: roster depreciation, player compensation and the transfer pricing of related party operation, thus issues regarding the stadium cost. Players and owners are struggling against each other in order to win the bargain trying to force and emphasize their own reasons. Since they have not reached an agreement yet, a super-partes moderator has been asked to figure out the outcome of the bargain, relying on good and rational
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Indeed, the economic discipline affirm for signing bonuses to be capitalized and amortized over the lives of the contracts as players are signed in the first place because they are expected to provide benefits over the lives of their contracts. Again, players were in force with their reasons.
A third debate arises from the fact that some players no longer on the current roster are being paid amounts that were previously guaranteed in multi-year contracts because of they are retired or injured. The issue is whether the payments should be expensed as they are paid out or whether the total future value of these payments should be expensed when the players are removed from the roster. Owners asseverate that the total future value of these payments should be expensed when the players are removed from the roster because they are no more active players, hence they do not affect company’s current revenues. However, players want to persuade them the payments should be expensed as they are made. If it is not, income numbers would be heavily subject to high volatility depending on when they are released and on the duration of the contracts. Additionally, players say, these contracts could be picked up by another team as well, and then the company would not have to pay any liability. Reasonably,
Why? Owners suggest that signing bonuses should be expensed as incurred. However, because the duration of the employment contract can be estimated with reasonable accuracy signing bonuses can be capitalized and amortized over that same period. Therefore the players are correct in their argument that bonuses are just a part of the overall compensation package, and for accounting purposes, should be spread over the term of the player's contract.
The popularity of college athletics have risen immensely over the past few years. The idea of paying college football athletes has been a continuous debate since the early 1900’s. This paper will debate whether college athletes should be paid a monetary compensation outside of their scholarships. This will be done by examining reasons for and against the monetary revenue for the athletes.
College athletics is a very diverse organization involving a lot of students, mainly as the players, and non-students such as officials, coaches and others. The leading governing body for college athletics is the National Collegiate Athletic Association, NCAA. College sports is itself a big industry involving sponsorships, TV networks, endorsements, retail products and marketing. But in spite of it being a big business, the players are not compensated for the work they deliver. This opens up two opinions: should players be paid, or should they not? Kristi Dosh’s article, “The Problems With Paying College Athletes”, (UNCLEAR)discusses where the coaches’ money come from to pay student athletes. On the other hand, Mark Cassell’s article, “College Athletes Should Be Able To Negotiate Compensation”, debates how athletes should be able to negotiate their compensation. This paper will evaluate the evidence of both Dosh and Cassell in order to determine which argument is more effective.
1.The athlete isn’t technically making money off their playing ability they’re making the money from the name on the back of their jersey.
At the beginning of the twentieth century and the outset of the professional sports industry the existence of underpaid players at the premier level of athletics was a legitimate problem. It was this problem that played a role in the fixing of the
contracts. Solutions can be found for collegiate athletes to be paid such as, giving them just
Another reason athletes should get deferred payments is because, it could eliminate the problem of “Under the Table Money” being taken. “Under the Table Money” is the money athletes get from fans or other supporters for their good performance. The allowance of the annual salary will give the athletes reason
In the professional leagues or sporting activities, sportsmen get pay for their efforts and talents in entertaining the public. Sports acts as a source of income to the participants in the league. It is a different scenario when it comes to NCAA management league. Students do not obtain pay for their services, efforts, talents, and entertainment show to the public. College athletes display their talents to the entire public who enjoy watching them perform. Some scholars argue that students should obtain pay for their efforts and talents while others maintain that college athletes should be contented with what they have as participants. College athletes' payment issue drags the development of the game within the association (NCAA). The debate of whether college athletes should obtain payment for their services needs to rest by extensive solution. The perfect way to solve the issue at hand involves additional payment for the services of the college athletes. This would supplement the scholarships and accommodation fees university and college athletes enjoy currently. College athletes are not gaining payment for participation in the NCAA league because of benefits they acquire from colleges, the act would add to issues in the budget that colleges would not be able to afford. College athletes should obtain payment for their talents and efforts because everyone in the sporting career enjoys payment and wages, to satisfy their needs as human
Sports teams, or professional athletic organization, are extremely important institutions within a city or region. They can help connect people with places, and through this loyalty, a sense of civic pride can be seen. Furthermore, the multi-billion dollar industry sports produces effects that can impact individuals and communities. In recent years dozens of new sports stadiums have been built throughout the country, with major funding coming from public subsidies. The aim of this paper is to analyze the positive and negative impacts that come with these subsidies.
The differences between the owners, players, exist because they are both calculate the in various ways at a time under the rules by GAAP. The owner’s financials are also accounted because it is a corporation as well. Depreciation, amortization of players might be an issue if the players are in the non-roster list or call off injury. However, whatever ever happens, has to be followed the GAAP rules.
A new Class A minor league baseball team called the Nor’easters is coming to Springfield, MA. News around town was that another professional sports team, the Falcons, was having trouble drawing revenue. Since the Nor’easters are a new team it’ll be challenging for them to draw fans.
The passages present a discussion about arguments concerning whether or not professional athletes are overpaid. This is an important debate since professional sports represents a multi-billion-dollar-per-year industry. The two positions argue whether or not professional athletes should be paid the large yearly salaries they are paid. Both viewpoints have valid claims warranting consideration. For example, evidence suggests that people with far more important jobs are paid much less than professional athletes; in contrast, opposing evidence suggests that since professional athletes generally have short careers and must train very hard to build and maintain their skills, the higher salary is justified. While both sides of the issue have valid points, the viewpoint that professional athletes are not overpaid is the best-supported position, the position supported by the preponderance of the evidence cited in the passages. The strongest and best reasons supporting this position are that professional athletes must endure grueling and intensive training, they generally have short careers that often end in injury, and the amount that they are thought to be paid is often inflated. Accordingly, these reasons and opposing viewpoints will be discussed next.
Besides all these, the stadium rents were set to understate the profits of the club and to move some profits to the stadium corporation. The rest of their accounting is very straightforward. Most of
The owners are allegedly “losing money” since they have selected accounting methods to hide their profits. Only 80% of the stadium operations expenses should be shown as only 2 of the owners actually profit from the stadium-pricing agreement. I believe the Paul (the play) is right, because in reality the owners are not losing any money as they so claim, but instead covering their profits with a
Professional football clubs need revenue. It is vital to the financial survival of a club as they have ultimately become a business. Money is a vital necessity to enable the club to function. From paying ground rent to the funding of the youth system and to even signing players for the clubs, it is fundamental that a club is making a profit. The owners of the clubs will want to see profits being made otherwise the club will eventually no longer be able to function.