Essay Football Finance

Submitted By huangshuyang
Words: 5179
Pages: 21
Open Document
Independent study 2005/06 200123902

Abstract

In my study I set out to see whether the structure of the football club alters the way in which a club approaches its investments in new players, and also the way in which the players are valued and how they appear in the clubs financial reports. Along with this I was also given the view of Club 1’s financial director who gave me a detailed response on how a football club and its investments differs from that of a more conventional business ( Publishing House) as he had only moved to the football club 10 months earlier. I interviewed two financial directors at different football clubs the main difference being the way they were structured. Along with the interview I obtained the financial reports for the year 2002-2003 and 2003-2004. This was to allow me to compare the information within the different club’s accounts and link this back to the interview I had conducted. What I found was that the structure of the football club only really effects major decisions however the way in which the two clubs value their players and how the players increase or decrease in value are treated the same. This is due to FRS 10 and 12 which are two regulations that football clubs must adhere too.

Introduction

Does the structure of the football club effect the way the club operates with regard to investments in players, football clubs such as Tottenham Hotspur who are trading shares on the Stock Exchange and allowing people to invest rather than being run by just one person.

My research is going to look into the different ways football clubs operate depending on their ownership structure. Football transfers are widely reported in newspapers and by the clubs themselves. In particular I want to look into the investment decision; I feel that this process will differ considerably between the two. I will also look at the clubs published reports to see how a football club actually values a player as an asset. So there is a lot of data about the investments however the reliability of the data is questionable. I will produce my data in the form of a report as this will portray my findings better.

Investment decisions are an important part of any company from buying a new computer to fully furnishing an entire factory; all of these decisions require a careful thought process and justification to the board or shareholders. The same applies to that of a football club. Now that football clubs are becoming public companies so they are competing for share prices like any other company. This research I am proposing could be useful to high-light any differences if there are any. Delloite did a review in 2003 and it found that Manchester United were the richest club in the world with a number of clubs in the top 20 companies in the UK. All the existing literature tends to look at the theory behind investments and investing in stock markets. Although this will have a similar approach it is not quite the same as there is very little that actually looks into the process a football club goes through before it decides to invest in a particular item.

Theory

Football players have been classed as intangible assets by their clubs so that the value placed upon them can be included in the accounts of the club. In the world of accounting the inclusion of intangibles on the balance sheet has been a hot topic as to whether it should be allowed. In September the ACCA held a conference in Edinburgh where this idea was discussed. Revisions to the Companies act 1985 the introduction of the OFR ( Operating Financial Review) now provides an accounting underpinning for certain companies to report on their people policies. ACCA stand point on valuation of human resource is that they believe more research needs to be done before applying financial
Show More

Related Documents: Essay Football Finance

Personal Statement edited Essay

My passion for Accounting and Finance arose from the experience and knowledge I gained through a series of events. I’ve always had an interest in earning money ever since I was awarded my first salary at a local pub. One subject that portrays my eagerness and lust for money is Accounting and Finance as it allows me to explore in depth of money analysis. Studying A-level Business and Politics has widened my general understanding of Accounting and Finance. During the span of studying Business it has…

Words 453 - Pages 2

Cocaine Almost Ruined Me Summary

“Cocaine Almost Ruined Me,” the author explains how ex professional football player, Carl Eller, destroyed his life from cocaine use. Eller, started using cocaine in the ‘70s, because he liked the lifestyle that went along with cocaine, and as a way to cope with the life of being a professional football player. He kept using it because he enjoyed the way it boosted his confidence. His use started out slowly because his football career didn’t give him much time to use cocaine, but Eller, used cocaine…

Words 193 - Pages 1

Unit 2 Craig Assignment Essay examples

Part 1: Finance Holiday Activity Budget A 5 day intensive diving camp for 6-9 years and an older group of 10-13 year olds. This will be delivered in the London Aquatics Centre. Costing’s Staff 2 x ASA Level 2 diving coaches Level 2 Diving coach= Hours – 9am – 4 pm (1 hour unpaid break) Per hour: £16.23 Equipment Due to the sessions taking place at the London Aquatic Centre all equipment is already in place. No additional equipment required. -----------…

Words 3171 - Pages 13

Essay about Cover Letter Ex.

10th, 2011 Wall Street Exchange Financial Women’s Association of New York 215 Park Avenue South, Suite 1712 New York, NY 10003 Dear Wall Street Exchange Coordinator: My name is Michael Perrier. I am from London, Ontario Canada. I am a Finance Major in my final semester in the College of Business at Auburn University. Please accept this letter and attached resume as my application to the Wall Street Exchange Program. Commencing in June I have a position at Bloomberg LP in their Sales…

Words 733 - Pages 3

College Athletes Getting Paid Essay examples

college football has become more and more popular. It takes a lot of blood, sweat, and tears to get a Division I scholarship. After given a scholarship, it is more or less a job, the players jobs to bring income for that university. It is an honor to get a scholarship and not only get to do what you love but also get a free education. Conversely, many people believe that salaries should be awarded to college football players. They say college football players dedicate their lives to football, they…

Words 1013 - Pages 5

Penn State Scandal Research Paper

shower with any other children which he did not follow. The retired Football Coach was seen again in the shower with another boy in February 2001 performing sexual acts by a Penn State football assistant (Mike McQueary ) who reported him to Coach Paterno…

Words 483 - Pages 2

Article Summary Of 'Judson Football' By Richard Wright

Texas Football is a religion: From living in Converse Texas we were raised “Judson Football” so we always knew Judson High School was our future. Like in the article “How I learned to love Football and stop worrying” by Felisa Rodgers she claimed that sharing the bond of football pushed her and husband rich to new heights in the relationship while going all the tragedy, but without noticing she began stating facts about different green bay packer superstars life and challenges they went through while…

Words 809 - Pages 4

Essay on Advertising and Finance Marketing Operations

Connect with Home About Us Contact Us Feedback Articles Finance Marketing and Strategy Operations and IT Human Resources Author Pages Submit Article Docs Categories Finance Marketing Operations Human Resource General Management Simulation Spreadsheets Pharmaceutical Management Company Annual Reports 2011-2012 2010-2011 2009-2010 Submit Annual Report Search Documents Upload Document Glossary Concepts Finance and Economics Marketing And Strategy Operations and Supply…

Words 913 - Pages 4

Andy Kerrr Research Paper

athletes since its start in varsity athletics, but none have been as influential as Andy Kerr. Kerr was born in Cheyenne, Wyoming and attended Dickinson College where he played football, baseball, and track. He has coached at four institutions and has an overall football record of 137 wins and 14 losses. Kerr began coaching football at Colgate in 1929 and has since had an unmatched impact as a coach here at Colgate. By the time he moved on to coach Lebanon Valley in 1947 he had recorded 95 wins and only…

Words 1256 - Pages 6

Jerry Sandusky: The Pen State Scandal

been doing for years. There was an internal investigation that found Jerry Sandusky was sexually abusing children. The people at Penn State that knew Jerry Sandusky was sexual abusing children are President Graham B. Spanier, Senior Vice President-Finance…

Words 349 - Pages 2