Why Sports Organizations Develop Short And Long Term Financial Planning

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There are several reasons pertaining to why sports organizations develop short and long term financial plans in order to move their organization in a positive direction. When it comes down to developing short and long financial plans, we must first define them. Based on class lectures, short term planning is a financial strategy that typically lasts less than two years that requires a company to meet specific objectives while making decisions based off working capital along with a reasonable cash budget that fulfills the company requirements. Also, one of the authors in Review of Business and Finance Studies defined short-term financial planning as a concentration on a cash venture’s needs, which is considered as a source of lifeblood for any business venture, so they can survive dreadful operating costs during its early stages (Whited). In relation to short term planning, long-term financial planning lasts for at least two years or more and is considered to be more future-oriented that focuses mainly on industry trends. When it comes to short and long term financial planning, there are important concepts along with other financial strategies that need to be covered. First, I will address major concepts that include planning and forecasting, income statement, cash management, and opportunity. According to Michael Samonas in Financial Forecasting, Analysis, and Modeling, planning and forecasting is a very important component in developing a strong financial plan by

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