Question

What is financial management? How does financial management differ in the sport industry as compared to other industries? Are you aware of any legislative actions recently being considered in the U.S. Congress, which may impact the financial management of sport? (You could google those legislative actions online)

Answer 1

Financial management is an important and crucial activity for any organisation which seeks to establish a sustainable position in the market in the long term , it can be described as a methodological which represents : plan => organise => control of the resources which are financial resources , these financial resources can be investments , bonds , capital or cash , the control of financial activities for ex; ranging from establishing funds , making payments and each and risk estimation form an integral part of financial management.

Financial management in the post industry is not entirely different from that of other industries , however it is a lot more complex as compared to other industries as a lot of tedious and challenging decisions need to be taken care of while undertaking financial management i the sport industry. Like any other financial management , in sport industry too it involves

• Strategising and Budgeting
• Cost Cutting
• Documentation and analysis

The tasks and duties of financial managers in sport industry involves :

1. Making note of trends in the sporting world
2. Managing the funds received through different channels and using them on priority basis.
3. Managing the book of accounts incorporating the revenues generated through sale of online/offline tickets , via the goodwill money received through various channels such as the patreon accounts.
4. Also financial managers are entrusted with the responsibility of making contracts with the various sponsors and change the terms of agreement when stipulated.

Overall it can be said that the perplexity of financial management is very tedious in the sporting industry , as apart from all the above duties of the various financial functionaries , it is also to take care of

a) Gambling Income

b) Forming tieups with media houses

Recently there has been a grant of permission from the NCAA board that will allow athletes from colleges and universities to financially benefits from the usage of their names , and images , earlier the policy restricted any form of monetary advantage for the college athletes from the usage of their name sin the form of brands or otherwise , this move is welcomed as the compensation received thorough this will enable the sports athletes to complete and pay up their college tuition fess which is extremely high in a lot of cases , this policy termed as the New NIL policy of NCA will most probably be effective from the year 2021 or so.