Economic viability of projects

Running head: ECONOMIC VIABILITY OF PROJECTS
Economic Viability of Projects
Name of the Student
Name of the University
Author note

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Economic viability of projects
Executive summary
The aim of the report is to evaluate the economic choice taken by the SEC conference. In
addition to that the revenue earning sources and the probable areas on which the club spend
fund are also briefly discussed. The report ends with the assessment of the financial health of
the club by analysing the recent balance sheet and the evaluation of the economic viability of
the various projects that are undertaken by the SEC.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Conclusion..................................................................................................................................5
Reference....................................................................................................................................6
Appendix....................................................................................................................................7

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Economic viability of projects
Introduction
The SEC is recognised as the most successful conferences in USA over the last few
decades. The conference has been on the top position of the competition ladder for its
successful management of the funds that the management raised from various sources like
sponsorship tv network contracts and many other ways. The SEC has made huge investments
in the development of the infrastructural facilities of its various football grounds and these
projects give them huge success and become the number one conference in the league table
of the nation.
Discussion
The concept of economic choice
The economic choices that are the decisions that were taken by firms regarding which
needs and wants are required to be satisfied and what type of products or services are
required to be implemented to generate more revenue. Among all the other powerhouse
schools SEC has been the most successful one as it makes the correct economic choice of
using the resources optimally. The SEC has gone for heavy investment in the infrastructural
development of the grounds and the stadiums, they have made TV network tie ups with the
major channels like ESPN and CBS which gives them more viewers than its peer
conferences. The economic choice that has been made by the SEC is by investing more it
wants to earn more revenue and become the most successful conference in the country
(Walden et al 2017).
The sources of expenses and capital funding
The main sources of expenses are the development of the infrastructure of the
stadiums and the payment of the coaches. The SEC made huge investment in the
development and expansion of the grounds in which the games were played and give all the

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facilities to the spectators so that they can enjoy the games with all comforts. The SEC has
spent more than 1.1 billion in the development of the football stadiums beside football the sec
also invests in the development of the other sports like gymnastics and basketball. The
investment made in the improvisation of the gymnastics practice facility is about $4 million,
a $7 million has been expended in the construction of the dormitory for the Kentucky
basketball team and a $35 million baseball stadium at South Carolina. these expenses also
give reward to SEC as the SEC teams claim national titles in the eight sports apart from
football. The main aim of SEC is not only to invest in football but also to invest in other
sports and earning revenue from these sources (Baugh & Kroshus 2016).
Beside infrastructural development the conference also makes heavy investment in the
payment of the coaches of the football team. The salary of the coaches increased by 70%
across all major football bowl subdivision colleges. Albama’s Nick Saban is the highest paid
coach in the country with an average salary of 5.5 million per year, while the SEC schools
LSU, auburn and South Carolina paid $3 million yearly to their coaches. The standard of
SEC is set in such a high position that it become very difficult for the competitors to compete
with the conference in respect of playing venues workout spaces, coaches, offices and indoor
training facilities. There is no big competitor who can challenge the growth of SEC in the last
10 to 15 years (Bergman & Logan 2016).
The departments of 12 SEC schools pulled almost $620 million the money flows in to
the college athletic comes from the various sources and the SEC schools have been efficiently
used the funds and built up a high standard for the SEC athletic team. With an average
attendance of 75000 per game SEC has been able to generate huge revenue from ticket
selling and from the sale of merchandise. Beside the attendance in the grounds the SEC
supporters are also big viewer of the games in the television this enables the conference to
raise fund from the tie ups with the tv networks like ESPN and CBS which become one of the

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major sources of revenue for the SEC. The conference has been able to beat all the
competitors in the league as the management has been efficiently control the expenses and
continuously give emphasis on the revenue generation process. The management always try
to find out alternative sources of revenue generation and that lead to the enhancement of the
profitability of SEC. while on the other hand there competitor continuously fail to generate
new sources for revenue generation which push them from the competition with SEC
(Havard & Reams 2016).
Average revenue expenses and profit and loss
In terms of average revenue, expenses and profit earning capacity, SEC stands in the
number one position. The competitors are far behind SEC in this respect. The average
revenue earned by the conference is $122517029 while the average expense is $105609195
and the profit earned by the conference is $16907834. The profit earned by its nearest
competitor big ten is $1894174 which is $15013660 lesser than the profit of SEC this
indicates that by what margin SEC is ahead of the other competitors. In the current situation
there is no close competitor available in the market that can challenge the success of SEC
(Morehead et al 2017).
The approach that best suits economic viability
From the success of the SEC it can be said that the approach of optimal utilization of
the resources are the most effective method that best suits the economic viability of any
project. The SEC management does not only gather capital but they used it very effectively
and that give them the opportunity to earn huge revenue and become one of the most
successful school team in the USA (Spinda Wann & Hardin 2016).

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Conclusion
In the conclusion it can be said that SEC make the best economic choice and that
enables the conference to hold the top position in the ladder. The approach that the
management of SEC shown become the main reason of there success. By using funds
efficiently, the management decided to built-up world-class infrastructure and that decision
become a major success for SEC.

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Reference
Baugh, C. M., & Kroshus, E. (2016). Concussion management in US college football:
progress and pitfalls. Concussion, 1(1).
Bergman, S. A., & Logan, T. D. (2016). The effect of recruit quality on college football team
performance. Journal of Sports Economics, 17(6), 578-600.
Havard, C. T., & Reams, L. (2016). Investigating differences in fan rival perceptions between
conferences in intercollegiate athletics. Journal of Sport Behavior, 39(2).
Morehead, C. A., Shapiro, S. L., Madden, T. M., Reams, L., & McEvoy, C. D. (2017).
Athletic Ticket Pricing in the Collegiate Environment. Journal of Intercollegiate
Sport, 10(1), 83-102.
Spinda, J. S., Wann, D. L., & Hardin, R. (2016). Attachment to sports conferences: An
expanded model of points of attachment among professional, collegiate, and high
school football fans. Communication & Sport, 4(3), 347-362.
Walden, S. E., Foor, C. E., Pan, R., Shehab, R. L., & Trytten, D. A. (2015). Leadership,
management, and diversity: missed opportunities within student design competition
teams. In 2015 ASEE Annual Conference and Exposition.

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Appendix

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Economic viability of projects