| In earlier times the marketing manager of an athletic | | | | emerging market of stadium construction, debt |
| team would project sales, the engineering and | | | | refinancing and revolving loans-are considered as the |
| production staffs would determine the assets | | | | prime considerations of any sports organization if it |
| necessary to meet those demands, and the financial | | | | plans to excel. Additionally, fierce competition, |
| manager's job was simply to raise the money needed | | | | environmental trends and demand fluctuation play a |
| to purchase the required plant, equipment and | | | | very important role regarding financial backing. |
| inventories. That situation no longer exists. Decisions | | | | However, some observers see an opportunity for |
| are now made in a much more coordinated manner, | | | | investors, as low trading and share prices dropping are |
| and the financial manager generally has direct | | | | considered 'good' times to invest. Some experts |
| responsibility for the overall financial status of any | | | | believe that merges and acquisitions, related or |
| business. | | | | unrelated to the core of the sport business, is a current |
| According to theory, a healthy economy depends on | | | | issue of great concern for most sports financial |
| efficient transfers of funds from people who are net | | | | managers, as it can save firms from losses. |
| savers to firms and individuals who need funds. | | | | Establishing higher prize money can also lead sports |
| Without efficient transfers, the economy simply can | | | | firms towards success by reducing risk and |
| not function. Thus, sport businesses, as individuals and | | | | uncertainty to the interested parties. In 2002, for |
| government units, often need to raise funds. Stock | | | | instance, British racecourses earned 46 million pounds |
| exchange markets, merges, acquisitions, promotional | | | | from media deals, but only 5 million was distributed as |
| techniques, athletes' transfers, diversification, product or | | | | prize money-a mere 11%. The British horseracing |
| market development and syndicated loans, constitute | | | | Board, response was to announce a plan to raise |
| methods for increasing cash flow levels. | | | | minimum prize money in 2003 by 18 million pounds. In |
| But since some clubs and sport unions, spent more | | | | fact, fair distribution of prize money can alter the |
| than they can afford, it is more than obvious that they | | | | financial condition of the sport and provide a safer |
| will accrue dept and losses. As ticket sales have | | | | environment in such a competitive industry. |
| severely dropped over the years, agreements have | | | | Reduced revenue required companies to reduce costs |
| collapsed and governments have not yet engaged | | | | by minimizing funding, cutting work force and spending |
| themselves in financing clubs, the interested parties | | | | less in sports sponsorships and advertising. For |
| have tried to find ways of minimizing the losses, such | | | | example, Investing in infrastructure is considered more |
| as cutting down players wages or not renewing their | | | | serious than funding the Olympic bid. Consequently, the |
| contracts. Actually, financing a sport and keep the | | | | financial manager looks over the funding as money |
| interest in high levels, both in the athletes' and in the | | | | that can be spread out into schools, coach wages and |
| funs' circles, is a difficult task that clubs have to work | | | | sport clubs. |
| with. One of the practices in order to put an end in the | | | | Sports business operates as a money generator if top |
| expenses of clubs was the decision to pay athletes in | | | | management strives for excellence and performs |
| relation to their performance. Bonus deals did not found | | | | continuous environmental scanning techniques. The |
| always the athletes agreeing to such a policy, as their | | | | main factor that distinguishes winners from losers is |
| solicitors claim that 'regardless the game's outcome, | | | | the eagerness to win competition and excel. Talent |
| players are still doing the same job so they should be | | | | correlates nowadays with character promotion. When |
| paid what was in their original contract.' | | | | these two are combined can be translated to ticket |
| Innovation and careful financial planning-like the new | | | | sales, sponsorships, or image transformations. |