Option 1: Enticing a professional sport team to relocate to a new city

Instructions

The final project for this class is a multimedia presentation of one of three options (see the Week 8 Assignment instructions and directions for further details):

Option 1: Enticing a professional sport team to relocate to a new city

For this assignment you will develop the year one operating budget for either the professional sports team, the athletics program, or the youth sports complex – depending on which option you select. You will also complete a year one through five revenue and expense profit/loss forecast both of which will become part of your final presentation. Review information on operating budgets and forecasting in course materials and from outside resources. The numbers used in this assignment are to be a realistic estimate based on your research of similar projects (cite your sources). Use a spreadsheet application such as Excel for this assignment.  Provide at least one graph on both the budget and the forecast to help the audience of your presentation better understand the information that you are providing. Also, provide a written narrative to explain what the numbers mean and how the numbers were derived.
If you do not have access to a spreadsheet application you can download Open Office at the URL below:
https://www.openoffice.org/download/
Open Office is a free office productivity suite of products similar to Microsoft Office. 

Your Week 4 Assignment requires you to complete an operating budget. The following information are excerpts and images from two prominent sport finance textbooks:

G. Fried, T. DeSchriver, and M. Mondello (2013). Sport Finance (3rd edition). Champaign, IL: Human Kinetics.

Brown, M.T., Rascher, D.A., Nagel, M.S., McEvoy, C.D. (2015). Financial management in the sport industry (2ndedition). Scottsdale, AZ: Holcomb Hathaway.

Operating/Operational Budget
“An operational budget reflects the day-to-day operations of the organization and lists sales and expenditures for normal operations. The operational budget is possibly composed of other budgets such as a sales, production (often broken down with categories such as direct material, direct labor, manufacturing overhead, and variable cost budgets), and administrative expenses budget… An operational budget often uses a line-item approach in which each revenue and expenditure amount is highlighted on a separate line… The operational budget shows revenue and expenses associated with the day-to-day operation of a business. Operating budgets are usually broken down into shorter reporting periods, rather than just annual operating budgets. These shorter term operating budgets allow management to respond quickly to an issue that might arise. For example, the cost of raw goods could increase significantly, and such added expense requires immediate attention, such as finding new suppliers, reducing expenses, or increasing prices.”