Budgeting for curve balls.

Journal of AccountancyVol. 186 Nbr. 3, September 1998

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Summary


Financial management in professional baseball

CPA Tim Buzard is the vice-president of finance for the professional baseball team the Chicago White Sox which is organized as a partnership. Financial planning for professional sports teams is never precise due to factors which cannot be anticipated in advance such as player performance, weather, and general economic conditions. Buzard keeps a close watch on finances through budgetary measures.

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Budgeting for curve balls.

For the Chicago White Sox, revenues are as unpredictable as next week's scores.

Every company's fortunes can be affected by a variety of unanticipated factors, such as weather, buying trends and national or international economic conditions. In professional sports, the variables can be particularly unpredictable. A winning player with a multiyear, multimillion-dollar contract might bring in sellout crowds one season and go into a slump the next, taking attendance figures with him. A team's revenues can surge or sag depending on how well it p...

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