Numbers Game: The Accounting Side of Sports
"Numbers Game: The Accounting Side of Sports" For the most part, expenses are final, and for the most part, expenses are playersalaries. Like any business, teams are always looking for the competitive advantage,something to set them apart. Each team gets a equal price of the league's shared revenue
Another accounting aspect in sports is thenaming of a "franchise player". 8 million out of their payroll by trading superstars BretSaberhagen, Bobby Bonilla, and Bret Butler. In baseball the financial gains is mostly made out on the field, with the leagues mostsuccessful teams having the highhest payrolls, but in football sometimes the teams with themost success can lose money and the worst ones can be the most profitable because offactors such as fan attendence and the popularity of the team. When in a cash-flow crunch, a team looks to its roster for fast cash as in the 1995 NewYork Mets, who cut $12. When a player is named this and is about to be signed byanother team, he must be paid a salary equal to the average of the top five players of thatposition in the league. Just like in a regular business, the business has a fixed amount on how much can bespent and in professional sports they have a "salary cap" which provides this samefunction.
Common topics in this essay:
Bret Butler,
Accounting Sports,
York Mets,
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