Transcript Chapter 2.3 & 2.4 Notes - Campbell County Schools

Textbook Assignment:
 Encore pg. 41
1.
2.
3.
B – Thunderstorm
A–
1.
Gain or Loss Risks
2.
Insurable Risks
3.
Controllable Risks
Make the facility is well-lit, has adequate fire exits, staffed
with security personnel, employees have been trained for
emergency situations.
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Lesson 2.3
Business Ethics
Learning Targets
 I can define ethics.
 I can discuss the impacts of unethical
behavior.
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Terms
 Ethics
 Principles
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DO ETHICS COUNT?
 Ethics
 a system of deciding what is right or wrong in a
reasoned and impartial manner.
Note - All businesses should be conducted with integrity, trust, and fairness.
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Ethics and Character Matter
 Principles
 high standards of rules and guidelines.
 Character Development
 a progression in behavior - advance from childish
behavior to mature behavior (it takes time).
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 Common Principles in our society?
 Don’t Kill
 Don’t Steal
 Common Principles for NCAA?
 Can’t except money from boosters/agents
 Can’t bet on games
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BUSINESS BEHAVIOR
 People (businesses) should act ethically while
pursuing a profit.
 Athletes (teams) should act ethically while
pursuing a victory.
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Seeking an Advantage
 Dilemma - acting ethically when you observe
others who receive a benefit from acting
unethically.
 PED’s (Performance Enhancing Drugs)
 Corked Bats
 Paying or giving gifts to recruits
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Controlling Bad Behavior
Professional Sports - Athletes
 Fines
 Reduced Playing Time
 Suspensions
 Game(s)
 Season
 Lifetime
Professional Sports - Franchise
 Fines
 Salary Cap Hits
 Firings
 Removal of Owner(s)
College Sports - Athletes
 Reduced Playing Time
 Suspensions
 Game(s)
 Season
 Loss of scholarship
College Sports - School
 Fines
 Reduction of Scholarships
 Suspensions
 Televised Games
 Postseason Play
 Season
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Being Bad Can Affect Profits
 Only fans can really influence the behavior of ethically challenged
athletes/celebrities/leagues by taking a stand;
 Stop buying
 Tickets
 Products (Jersey, Apparel, and items from major Sponsors)
 Voice displeasure




Letters
Emails
Blogs
Protest
NOTE – if fans do not take a stand the bad behavior wont change because profit has
not been affected.
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Effective and Ethical
 Good decisions are both ethical and effective.
 Good decisions are the right choices for the long term.
Athlete who takes steroids  Short Term – helps them perform at high level and perhaps helps team win
 Long Term – player will eventually encounter serious health problems
Teams that establish core values and demand that players act
accordingly will be the big winners in the long run.
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Textbook Assignment:
 Encore pg. 46
 Answer Questions: #1, #2, and #4
 Email your responses to the questions.
[email protected]
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Lesson 2.4
Financial Analysis
Learning Targets
 I can discuss sources of funding and revenue
streams for sports and entertainment
businesses.
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Terms
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Return On Investment
Forecast
Budget
Balance Sheet
Income Statement
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IT TAKES MONEY
 Profit is the primary purpose of sports and
entertainment marketing.
 #1 Goal of any business is to MAKE A PROFIT.
 #1 Goal of any team is to WIN.
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Finding Funding
 Funding for an event is typically provided by investors.
 Example Costs – Celebrity Golf Pro-Am
 Salaries
 Promotions/Advertising
 Player Fees
 Course Fees
 Event Workers
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 Return On Investment
income from a venture that is distributed to investors.
 Payment investors receive for providing financial
backing (typically more $ than what they invested).
 Initial Investment + Interest
 Initial Investment + Agreed Upon $ Amount
 Initial Investment + Interest + Agreed Upon $ Amount
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Money Sources
 Funds to repay investors are raised through Revenue Streams;
Examples
 Ticket Sales
 Pre-Game Sales and Season Tickets
 Broadcast Rights
 TV and Radio
 Licensing
 Merchandise and Apparel
 Facilities
 signage, parking fees, luxury boxes, concessions
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WHERE IS THE MONEY?
 Forecast
 a plan/report that predicts the expenses to be
incurred and the revenues to be received.
NOTE – must always do your homework if you want
a successful business/team.
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 Budget
a plan for how available funds will be spent.
 Solid budgets list specifics –
 Income (money coming in or revenue streams)
 Expenses (money going out).
 Sole purpose of a budget is to control costs so they do
not exceed the funds available.
 Helps businesses/people to allocate money and not
spend more than they have.
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Financial Statements
 Balance Sheet
shows net worth at a specific point in time.
(Assets – Liabilities = )
 Assets = items of value, cash, property, equipment.
 Liabilities = amounts owed for purchases made on credit and loans.
 Income Statement
shows revenues and expenses for a specific period of time.
 Reveals company’s profit or loss.
Both are used to show investors and creditors that the business/team is
being managed properly and worthy of funding.
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Chapter 2 - Textbook Assessment
Pg. 52
Questions: #1 – #10
Pg. 53
Questions: #15, #17 and #18
Due 10/22 – Start of Class
Chapter 2
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