Resources
No.40
January 2004
 
    

Book Review – Sport Finance
Phyllis A. Love and Darlene A. Kluka
Grambling State University of Louisiana, USA



Fried, G., Shapiro, S. T., & De Schriner, T. D. (2003). Sport finance. Champaign, IL: Human Kinetics. ISBN: 0-7360-0183-2. $59.00 USD
Sport Finance, a much-needed book for the beginning of the new Millennium because of the huge push to build new sport facilities and multimillion dollar professional sport deals, combines basic principles of business with case studies in contemporary sport. The authors skillfully use four models to connect theory with practice: (1) a young couple recently graduated from a university in the USA and who desire to open their own fitness center/gift shop/juice bar; (2) a sporting goods company that makes tennis rackets and golf clubs; (3) the University of Houston, a large U. S. university that has had fluctuating budgetary concerns; and (4) The Boston Celtics, a professional men’s basketball team in the front office.
The authors have successfully organized the text’s contents to meet or exceed that which is required by organizations representing a North American perspective, NASPE/NASSM (National Association of Sport and Physical Education/North American Society for Sport Management), for a sport finance course offered at the university level. Required content includes basic accounting principles, financial statements; sources of revenue for financing; principles of budgeting, budget as a method of control, organization and reallocation; budget development; spreadsheet utilization; and financial aspects of facilities management. Additional content is offered to complete the accreditation standards as well as the area of focus: present financial status of the sport industry; concessions and merchandising; for-profit and not-for-profit budgeting, development and fund raising principles and methods; and financing facilities. Also included is a glossary of sport financial terms, suggested resources, time value of money tables, and excellent samples of research topics, appropriate for upper division or master’s level students.
The text is logically divided into six parts. In Part I, the authors present several issues that are beneficial to the sport finance discussion. Because basic accounting principles are vital to the discussion, a brief, yet meaningful, semblance of information is included. Factors that impact finance, such as financial markets, business structures, and government entities are also included. Part II includes information relative to case studies. Factors that impact each of those scenarios are brought forward for analysis, synthesis, and action. Finding the capital needed to function as a sport business is examined in Part III. The authors, in Part IV, discuss the outlay of money, including typical expenditures, budgeting, short- and long-term planning, and an overview of inventory management and production control. Part V focuses upon the process of profit distribution, which includes dividends, company acquisition growth, and retained earnings. Finally, Part VI provides an overview of accounting techniques and the tracking of finances that leads to successful auditing.
This text is vital to those who are eager to learn more about sport finance from a North American perspective. It is appropriate for adoption in upper division undergraduate sport management curricula as well as master’s degree sport administration/management programs in North America. Professors need only supplement the text with perspectives of Olympic Movement sport to gain an international perspective. For those in other parts of the world, the text provides a unique North American perspective in entrepreneurial sport business as well as professional sport.





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