Question

What is financial management? How does financial management differ in the sport industry as compared to other industries? What are key economic factors that influence the sport industry? (400-500 words)

Answer 1

Financial Management a simple financial science consists of planning, organizing, controlling and sometime directing all the cash flow and all financial transaction of the enterprise. It means applying all management practice for financial management of the firm. The subject is mainly concerned about the resource mapping with objective as:

• regular supply of funds at adequate amount to the firm
• To get adequate returns on investment
• Enhance earning capacity to the shareholders
• Optimal utilization of resources
• Create wealth for shareholders
• Minimize the cost in all respect.
• Maintain a n optimal capital structure
• Maintain market price of share and stocks

Financial Strategy, Planning and Budgeting in the World of Sports

The sports industry is growing with very fast speed from last few decade , worldwide it is a mega business to mobilize trillions of dollars every year. The sports industry is not only growing but producing lot of profit for investors and shareholders. The Financial management concept starts for sports organization is to establish the nature of business entity ; a sole trader, a partnership, a corporation, a co-operative or a nonprofit. The financial manager determine the requirement of fund and allocation of fund in business by study of previous financial records or budget. The manager will create financial value and profit for the company by proper budgeting techniques, under the designed legal framework. Generally the financial strategy may be created by use of

• Study the current trend in on going sports , as each sport is specific in nature

• Study the internal constraints
• Study the external factors for the sports growth
• Prepare chart for all expenses and expected profit
• Accounting for revenue forecasts
• Sharing of information to the stakeholders

Difference of financial Management in Sports and manufacturing industry.

• Tangible output management in manufacturing but intangible in service industry.
• Customer specific production system in manufacturing but sports is depend on strategy of play and condition.