Financial Analysis of Proposed Sports Stadium Construction

Running head: FINANCE AND ECONOMICS
Finance and Economics
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1FINANCE AND ECONOMICS
Table of Contents
Introduction................................................................................................................................2
Financial Health.........................................................................................................................2
Costs...........................................................................................................................................3
Potential Sources of Revenue.....................................................................................................3
Economic Impact.......................................................................................................................4
Conclusion..................................................................................................................................5
Reference list..............................................................................................................................6

2FINANCE AND ECONOMICS
Introduction
In the role of sports management, the financial data has been analyzed to make
important decisions for the construction of a stadium. This report is prepared for providing
the stakeholders addressing the impact of the proposed project from a financial perspective.
Having a solid foundation in economic and financial concepts the analysis has been
performed in a meaningful way. A draft of the budget proposal has been prepared in the
spreadsheet portion for the final project (Masterman, 2014). The financial health of the sports
organization has been discussed. The direct and indirect costs to be incurred for proposed
project has been identified. The potential sources of revenue have been identified that will
help to boost its revenue. The economic impact of the additional costs incurred across the
departments of the project has been discussed (Agha & Taks, 2015).
Financial Health
The sports organization has a sound financial health. It has generated a large amount
of revenue from its ticket sales and a certain portion from its media rights. It can further
improve its sources of revenue from merchandising, premium access to facilities and other
potential sources of revenue that have been discussed below (Tamir, Limor & Galily, 2015).
As it is a new stadium being constructed, it will construct an upgraded building. Therefore, its
finances will not get wasted for construction purposes. This will help them to save a large
portion of their revenue. The costs of the project cannot be decreased as it is the early stage of
the project. However, in future the costs can be decreased as the project will no longer have
start-up costs incurred on it. Further, the sports organization will also be able to identify more
potential revenue sources and earn from it.