Comprehensive Economic and Financial Audit: Chicago Bulls NBA Team

This report provides a comprehensive economic and financial analysis of the Chicago Bulls, an NBA basketball team. The report begins with an introduction to the team and its history, followed by an analysis of the team's objectives, mission, and vision. The main body of the report examines the supply and demand dynamics of the team's products and services, including factors such as income, prices, and customer base. It also explores the market structure theory relevant to the NBA industry, specifically focusing on the competitive landscape. Furthermore, the report discusses the macro-environmental factors impacting the Chicago Bulls, such as customer relations. The report concludes with a summary of the key findings and insights into the economic and financial performance of the Chicago Bulls, offering a perspective on the team's position within the NBA and the broader sports market. This analysis considers the team's historical performance, market trends, and external factors to provide a holistic view of its economic sustainability and future prospects. The report is a valuable resource for understanding the financial aspects of a professional sports franchise.

A sporting change (an
economic/ financial
audit)

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................2
Analysis and evaluation of the objectives of the above mentioned sports club including its
mission and the vision.................................................................................................................2
Elaboration of the demand and the supply of the sports club that has been mentioned above
and it includes the products and services of the same.................................................................3
Examination of the market structure theory that is related to the market and the competition
that is prevailing in the industry..................................................................................................5
Discussion of the macro environment factor that is related to the sports club that is mentioned
above............................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The Chicago Bulls are a professional basketball team from Chicago, Illinois. The Bulls are a
member of the Eastern Conference Central Division of the National Basketball Association
(NBA). The team was established on January 16, 1966, and its first match was during the NBA
season of 1966–67 (Batras, Duff and Smith, 2016). The Bulls schedule their home matches at the
United Centre, which is shared with the National Hockey League's Chicago Blackhawks on
Chicago's West Side. The Bulls were at their peak in the 1990s, when they helped to popularise
the NBA around the world. Between 1991 and 1998, they won six NBA championships,
including two three-peats, making them one of the greatest dynasties in NBA history. Michael
Jordan, Scottie Pippen, and Coach Phil Jackson led all six of their winning teams. The Bulls are
now the only NBA team to have won numerous titles without ever losing an NBA Grand final.
During the 1995–96 NBA season, the Bulls set an NBA record by winning 72 games, which
stood until the Golden State Warriors won 73 games in the 2015–16 season. Until the 2015–16
Warriors, the Bulls were the only NBA franchise to win 70 games or more in a single season.
Over the last 3 years, the Bulls have lost nearly 70% of their games, resulting in a 6% drop in
per-game attendance. The Bulls leads the team in attendance for nine consecutive seasons before
slipping to second in 2018-19. The team was relegated to 11th place last season. It wasn't all evil,
though. The Bulls kicked off a new TV deal in 2019-20 which is one of the wealthiest in the
sport. Bulls' owner Jerry Reindsorf owns 50 percent of NBC Sports Chicago with Comcast and
Blackhawks owner Rocky Wirtz sharing the other half. From 2003 to 2021, the value of the
Chicago Bulls franchise in the National Basketball Association. In 2021, the Chicago Bulls
franchise had an approximate value of 3.3 billion U.S. dollars. Below is a graphical
representation of the value and the net worth of the sports club that has been discussed above-

MAIN BODY
Analysis and evaluation of the objectives of the above mentioned sports club including its
mission and the vision
A mission statement explains what the corporation does, what its goals are, and how it
plans to achieve them. A vision statement outlines the company's ideal future position. A
declaration of the company's purposes, objectives, and principles is often created by combining
elements of mission and vision statements (Bennett, 2016). The Chicago Bulls are a professional
basketball team committed to winning NBA championships, attracting new fans to the sport, and
offering outstanding entertainment, value, and service. Respect for one another, as well as a
dedication to excellence, creativity, honesty, and consistency in all that is done. Its goal is to
provide superior entertainment value in a safe, secure, and comfortable atmosphere to all guests,
regardless of their level of basketball interest. Also, assisting sponsors in developing their brands
and expanding their businesses, as well as treating our respective constituencies with respect,
appreciation, and as we would want to be treated and serviced. To put it another way, we put our
fans and sponsors first every day—and we mean it. As a result, we make our world a healthier

place to live by supporting worthy social causes. Including our visitors in the game as active
players rather than passive observers. As a result, we're working hard to make NBA basketball
the most successful sport in our culture, marketing and humanising our players to everyone we
encounter, and being constructive and accountable in achieving our goals (Bocarro, Byers and
Carter, 2018).
Elaboration of the demand and the supply of the sports club that has been mentioned above and it
includes the products and services of the same
Economists research supply and demand in order to comprehend the different factors that
affect our economy. Several factors play a role, influencing demand and supply in a variety of
ways, both positive and negative. Demand theory is an economic philosophy that deals with the
relationship between customer demand and market prices for goods and services. The demand
curve, which connects consumer appetite to the amount of products available, is based on
demand theory. The total amount of a particular product or service available to customers is
defined by supply, which is a basic economic term. The amount available at a given price or the
amount available over a price range is referred to as supply. This is closely related to the demand
for a particular product or service at a specific price; all other things being equal, if the price
increases, the supply offered by manufacturers will increase as well, because all businesses want
to maximise profits. The examples of demand and supply of the different aspects that are
associated with the sports clubs products or the services are explained in detail below:
Demand-
 Income- Since he has more money to spend, a customer buys more of a commodity as
his income rises. As a result, the market for goods rises in lockstep (Boykoff and
Carrington, 2020). As income falls, demand for everyday items such as clothes, food,
holidays, vehicles, and household appliances falls. However, an increase in income does
not necessarily lead to an increase in demand for such goods. Consider a low-income
consumer who has always purchased low-fat ground beef because it is less expensive. He
might start buying more expensive ground tenderloin beef if his income rises. In this
situation, as income rises, the market for low-fat ground beef decreases. "Inferior goods"
are products that have decreased demand as incomes have increased. In this case, inferior
does not imply poorer quality. With an increase in wages, the demand curve becomes
negative. If one's income rises, so does the market for high-end products. Sports cars,

gym memberships, fine dining, and luxurious holidays are examples of luxury items. In
context of the club it can be said that the demand for its products like t-shirts, caps,
jerseys, etc. rose if the income of the buyers increases at a good rate.
 Prices- The law of supply and demand states that as the price for a particular commodity
goes up, demand will decline. Consumers will usually react to an increase in prices by
purchasing fewer products. Chicago bulls increases the prices of its products after a good
performance of the club since there is a subsequent increase in the volume of the
customers.
 Number of customers- An increase in consumers who want to purchase a product will
increase the demand for that product. A rise in population will increase the demand for
products, but other influences increase the number of potential buyers. Chicago bulls
customer’s increases at a great margin after a exquisite performance in the match so its
products also comes in demand (Dukic, McDonald and Spaaij, 2017).
Supply-
 Price fluctuations- Price changes have a major impact on supply and demand. When a
commodity becomes so costly that the average customer no longer believes it is
worthwhile to purchase it, demand falls. This results in production cuts, which can help
to maintain the product's value. Lowering a product's price may increase demand,
suggesting that the public now perceives the product to be of exceptional value. This will
ultimately cause changes to increase in order to keep up with demand. Chicago bulls have
fluctuations in its prices since the performance of the club varies from match to match.
 Trends- In certain situations, supply rises and falls in accordance with market patterns.
Only a few items are needed by society on a continuous basis. Food and shelter aren't
exempt from the impact of shifting patterns. If the notion that eating bean sprouts is bad
for you receives widespread media coverage, it will inevitably have an effect on bean
sprout supply. The bean sprout market could rebound if people's attention is diverted to
something else. In the context of the club it is that the trend of its products rises if there is
rise in the persons seeing the match and vice-versa.
 Seasons- The seasons can affect supply and demand drastically. The supply and demand
for toys peaks around Christmas and turkeys sell like crazy at Thanksgiving. Fireworks
experience a boom at the Fourth of July in America. Chicago bulls have a full season of

supply since there are matches every time and thus there is an increase in supply of the
products and services of the clubs (Moore, 2017).
Examination of the market structure theory that is related to the market and the competition that
is prevailing in the industry
The main characteristic of a free-market system is that suppliers have the right to compete with
one another. The number of suppliers in a market defines the market structure. Economists
identify four types of market structures:
 Perfect competition- There are a lot of small businesses on the market. The firms sell
similar goods; that is, each firm's product is very similar to other firms' products on the
market. Market buyers and sellers have a lot of knowledge about costs, supply sources,
and so on. It is simple to start a new company or close an existing one (Piggott, Pike and
Matthews, 2018).
 Monopoly- Pure monopoly, on the other hand, is a business system in which a single
firm accounts for all industry sales of a specific product or service. The business is the
company. Barriers to entry define this market structure, which prohibit new entrants from
competing on an equal footing with existing firms. Frequently, technical or legal
constraints are the stumbling blocks.
 Monopolistic competition- There is a lot of companies on the market. The companies
sell goods that are similar but not identical to one another. It's pretty simple to get into the
market.
 Oligopoly- The majority, if not all, of the production is generated by a few companies.
The number of firms is limited due to high capital requirements or other factors. The
above mentioned club comes in this category since there are few others that operates in
the similar market and has the same competition among them in the industry.
Discussion of the macro environment factor that is related to the sports club that is mentioned
above
The macro-environment is much more general - it is the environment in the economy itself.
It has a simultaneous impact on how all business units work, execute, make decisions, and
formulate strategies. It is very complex, which means that a company must keep track of the
changes at all times. It is made up of external variables that the business has little power over but
is definitely influenced by. Economic factors, demographic forces, technological forces, natural

and physical forces, political and legal forces, and social and cultural forces all contribute to the
macro-environment. Chicago bulls have many macro environmental factors that affect its
working and thus the major one is discussed below-
 Customers- The type of customer base your business attracts, as well as the reasons
people buy your product, can have a big impact on how you create marketing campaigns.
Chicago bulls have a loyal customer’s base which is one of the main reasons behind its
huge success in the market in which it is operating (Storm, Nielsen and Thomsen, 2016).
CONCLUSION
It can be concluded from the above that Chicago Bulls is doing pretty well in the industry
but still there are some loop holes in its working of it and thus it must analyse and evaluate in a
detailed manner so that it can add to the value of it in the long run.

REFERENCES
Books and journals
Batras, D., Duff, C. and Smith, B.J., 2016. Organizational change theory: implications for health
promotion practice. Health promotion international, 31(1), pp.231-241.
Bennett, J., 2016. The working lives of prison managers: Global change, local culture and
individual agency in the late modern prison. Springer.
Bocarro, J., Byers, T. and Carter, C., 2018. Legacy of sporting and non-sporting mega event
research. Legacies and mega-events: Facts or fairy tales, pp.7-24.
Boykoff, J. and Carrington, B., 2020. Sporting dissent: Colin Kaepernick, NFL activism, and
media framing contests. International Review for the Sociology of Sport, 55(7), pp.829-
849.
Dukic, D., McDonald, B. and Spaaij, R., 2017. Being able to play: Experiences of social
inclusion and exclusion within a football team of people seeking asylum. Social
Inclusion, 5(2), pp.101-110.
Moore, D., 2017. Enlightenment and Romance in James Macpherson’s The Poems of Ossian:
Myth, genre and cultural change. Routledge.
Piggott, L.V., Pike, E.C. and Matthews, J.J., 2018. A ‘sporting future’for all?. Gender Diversity
in European Sport Governance.
Storm, R.K., Nielsen, K. and Thomsen, F., 2016. Can a small nation be competitive in the global
sporting arms race? The case of Denmark. Managing sport and leisure, 21(4), pp.181-
202.