KANSAS CITY ZEPHYRS BASEBALL CLUB: A BASEBALL ACCOUNTING DISPUTE. This case is used to illustrate some basic accounting issues in a. Describes a dispute between the owners of the major league baseball teams and the players’ union about the profitability of the baseball teams. The issue is. Kansas City Zephyrs Baseball Club, Inc. case study. Krishna G. Palepu. Save; Share. Save; Share.
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Sorry, but copying text is forbidden on this website. The issue is important because of the ongoing collective bargaining negotiations.
Kansas City Zephyrs Baseball Club, Inc.
Since the sign-up bonus is a cost incurred by the owners in one payment it should be expensed in the year in which it clun incurred. Finance General Management Marketing. Your Answer is very helpful for Us Thank you a lot! Considering the facts it does not add value to depreciate teams that generally appreciate and therefore should not be included in the financials.
Palepu, and Sarah Gulick. A consultant is brought in to decide whether a representative team, the Kansas City Zephyrs, is making or kaansas money. Hi there, would you like to get such a paper?
In reviewing the Kansas City Zephyrs Baseball Club, and hearing arguments from both the owners and player there have been some interesting findings. Palepu and Anthony K. Aiyesha DeyKrishna G.
Since the players that are released have the possibility of getting signed-on with another team who would take over the contract there does not seem to expense the full amount in one inc.22006. Palepu and Sarah Gulick. Describes a dispute between the owners of the major league c,ub teams and the players’ union about the profitability of the baseball teams. Cite View Details Educators Purchase. This seems inconsistent with their prior argument to have the financials match cash flow as much as possible with an argument against depreciation.
Kansas City Zephyrs Baseball Club Essay Example for Free
This clearly shows that the owners are trying to cover as much profit without actual cash outflow through the depreciation expense. The stadium costs would stay the same. Considering the fact that Kansas City Zephyrs Baseball Club is expensing everything ahead of time it is important to note that they will not have these costs to offset profit from future years. He has to settle a number of accounting disputes about roster depreciation, signing bonuses, deferred compensation, and stadium costs.
According to the players there is an appreciation rather than depreciation as the players actually improve their skills as they increase in experience. Palepu and Sarah Mehta. Using different accounting techniques resulted in two very different financial statements for the Kansas City Zephyrs Baseball Club. If there is a separate fund this can be put on the balance sheet as a other asset till they are expensed in the year they become a current payable.
Kansas City Zephyrs Baseball Club Case Study by Chiara Lo Cascio on Prezi
Sorry, but copying text is forbidden on this website! Although, both teams seem to agree on most of the financial statements there seem to be three specific areas that are causing dispute. There are three points of disagreement on player salary expenses; sign up bonuses, deferred compensation, and non-roster player salaries should be expensed in the year that it is paid.
We’ll occasionally send you account related and promo emails. Students are asked to resolve these disagreements and determine the team’s “true” profitability. The players feel that the sign-up bonuses should incc.2006 amortized over the contract of the players. How about make it original? Sorry, but downloading is forbidden on this website.
Should shareholders approve or reject the plan? If you need this or any other sample, we can send it to you via email. If all the targets were achieved, Tesla would be one of the most valuable companies in the world, and Musk would receive the highest compensation of any CEO in US corporate history. Business and Environment Business History Entrepreneurship. Click to learn more https: Technology and Operations Management. The case is best used as an introductory case in a course on financial reporting or performance measurement.
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As a result it seems more based on opinion than hard fact. The plan payouts were entirely contingent on achieving very ambitious mansas value, sales, and EBIT targets over the next ten years.
Kansas City Zephyrs Baseball Club Essay
There would be no way to arbitrate stadium and broadcast charges based on unique situations and contracts. The only Way to keep these expenses would to be to carry high player turnover on the teams which is not beneficial in an operational standpoint. Palepu and Joseph P. The three causes of disputes are roster depreciation, overstated player salary expense, and related party transactions.
The deferred salaries expense should be taken out of current expenses and put on the balance sheet as a liability if there is no separate fund.
We see that both parties are motivated towards getting more actual cash flow for their respective sides. Cite View Details Related.
Cite View Details Educators Related. Hi, I am Vlub from Studymoose Hi there, would you like to get such a paper? Accounting and Management General Management.