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Spm/260

In: Business and Management

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Sports Budgeting
Kenneth Gilbert
SPM/260
Joseph Walter
12/6/2010

The team I am representing is the Dallas Cowboys. They have one of the biggest revenues and budgets in all of sports. They have a worldwide reach because of the their brand power and their on field success. With one of the most powerful and recognized owners in sports the Cowboys have a franchise that tops the list as on e of the most successful sport franchises in all of sports.
One of the most common situations in sports is a franchise losing money. It happens many times when the payroll and other expenses exceed the income from the various revenue sources available to the team. The Cowboys make sound decisions when it comes to player contracts. However if they were to splurge and go get an expensive free agent such as Peyton Manning it could put them over their budget. This could mean they wont have the capital to spend for other positions meaning their team might be weaker. To stay within budget the Cowboys might be obligated to adjust certain areas. These areas might be to cut certain nonperforming players who take up a lot of money. This happens many times during the NFL season and offseason. Another move might be to cut back marketing or to cut back on perks for the players. All of these decisions will have consequences outside of merely saving money and will affect the team in other ways. For example if the players perks are cut back then these players will be reluctant to sign back with the team and they will tell other free agents to consider the same. If the marketing is cut back then the reach of the organization will be hindered and revenue from tickets and other things will suffer.
The Cowboys operate in a large market in the Dallas-Ft. Worth area. This area is one of the largest and fastest growing markets in the United States. There is a large market that they control and have…...

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