ISST DISTANCE EDUCATION COURSES

DISTANCE DIPLOMA IN SPORTS MANAGEMENT (DDSM)

EXAMINATION

Divik shah
2-4-335,
Ramgopalpet,
Secunderabad.
9963760784

SUBJECT 01:
PRINCIPLES & PRACTICE OF SPORTS MANAGEMENT
(Q1) A) What do you mean by the term ‘Sports Management’?(5m)
B) Name and explain the unique features of sport.(5 m)
(Ans1):A)sports management is nothing but the science of managing
marketing, finance, legal aspects, technology, ethics, sociology, nutrition,
medicine etc which practically cover all the various issues related to sport.
Sports management is usually a systematic way of managing the events
related to sports. it has become a important study because sports has being
growing and professionalizing which is driving in the consumption,
production and management of sporting events and organizations at all
levels.
Managing of sports has drastically changed at the start of the 21 century
because it usually involves the applications of techniques and strategies
used in majority of the business government and nonprofit organizations.
Sports management not only involves the proper and systematic
management but also includes several other aspects such as strategic
planning, sports managers have to deal with the broadcasting contracts, the
also have to take care of the athletes who usually earn 100 times more than
the average working wages, they also have to look into the global networks
of international sports federations, national sports organizations,
government agencies, managers of elite sportsmen and women also have to
look into the media and the sponsors corporations. The people therefore
learning sports management has to take care of the special features of the
sports and its allied industries.
B) The unique features of sports are as follows:
Passion for sports
The phenomenon of developing the passion for sporting teams,
organizations, or it may be towards a single athlete. Sports managers must
take in the way of harnessing these passionate people by appealing to their
desire of buying tickets for events related to their desired team or athlete
,managers should also encourage the people to join the clubs, they should
learn to make use of these passionate people to make them donate their
time to help run a voluntary association, the managers can also help in the
purchase of sporting merchandise.
Source of income
There are usually a lot of differences between the sports organizations and
other businesses in the financial sources. Usually in other business the public
and the private companies make profits and increase wealth of the
shareholders or the owners but when you look into the sports organization it
includes other imperatives such as it makes them important to win a
competition or any kind of championship, it also includes the services to
stakeholders and members or meeting the community service obligations
may take preferences over financial outcomes. The work of the sports
manager here is to be aware of these multiple organizational outcomes,
while at the same time they also need to be a good financial manager.

Work for a common advantage

Competitive balanced is also a unique feature of the interdependent nature
of relationships between the sporting organization that compete on the field
but cooperate off the field to ensure the long term viability of both clubs and
their league. In most of the business the owner aims to defeat all its
competitor and to ensure the largest market share and they also aim to
secure a monopoly. But when you look into the sports organizations the
clubs or the team always need a competitor so that they can share the
revenues and playing talent, they need the competitor to stay in the game
because if they defeat them and secure a monopoly then it would be difficult
for them to regulate themselves to ensure the uncertainty in the outcome of
the games between them so that the fans interest will be maintained.

Brand loyalty in sports

Brand loyalty is nothing but the loyalty towards the event, athlete, or the
team. Consumers of household product have a huge range to choose from
and will readily switch brands for the reasons of price or quality whereas
sporting competitions are hard to substitute this can be explained with an
example where a deccan chargers team fan will not cheer or support other
teams or players even if his team is in the losing side. This thing usually
makes it difficult for the teams to attract new fans from other side because
of their familiarity with the customs and traditions of the existing sports
team. Sports also changes the behavior of their fans where the fans start
finding their existing team within themselves and imitating them. The fans
start buying and wearing the merchandise their teams. They start changing
their life style similar to their existing teams.
High level of postiveness
Sport fans also exhibit a high degree of optimism, at times insisting that
their team, despite a string of bad losses, is only a week, game or lucky
break away from wining the next championship. The owners or managers of
sport franchises exhibits a high degree of optimism by selecting their star
recruits or new coach as the path to delivering them on field success.
Sporting organizations are relatively hesitant to adopt new technologies
unless they are related to sport science, where on field improvements are
possible. In this regard sport organizations can be considered conservative,
and tied to traditions and behaviors more than other organizations.
Limited availability
The final unique aspect of sport is its limited availability in other industries,
organizations can increase production to meet demand, but in sport, clubs
are limited by season length and the number of schedule games. This
constrains their ability to maximize revenue through ticket sales and
associate income. The implication of sport managers is that they must
understand their nature of their business, the level of demand for their
product and services and the appropriate time to deliver them. Considering
this aspect , sport managers are required to discover alternatives for
generating good income to run their respective sport organizations
efficiently.
(Q2) Name and explain the three sectors in sport. (10 Marks)
Ans2: the three sectors are as follows
Government organizations
These organizations includes national, state, regional and local governments
and specialists agencies that develop sports policy, provide funding to other
sectors, and support specialist roles such as elite athletes development or
drug control.
non profit sport organization
the second is the none profit or voluntary organization, in this type of sector
the local events national events or even the international sport organization
these organizations usually provide competitions and usually these events do
not charge a lot for the participation, these organizations is usually in the
search of talented sports men and women and organize these events for the
same. As the name tells these organizations do not look into making profit
or money.
Professional sport
The third sector is professional or commercial sport organization comprising
professional leagues and their member teams example Indian premier
league(IPL) as well as allied organizations such a sporting apparel and
equipment manufacturers, media companies, major stadia operators and
event ,managers .

These three sectors do not operate in isolation and in many cases there is
significant overlap for example the state government is intimately involved
in providing funding to nonprofit sport organization for sport development
and elite athlete programs, and in return nonprofit sport organizations
provide the general community with sporting opportunities and as well as
developing athletes, coaches, officials and administrators to sustain sporting
participation. The state government is also involved in commercial sport,
supporting the building of major stadia and other sporting venues to
provides spaces for professional sport to be played, providing a regularity
and legal frame work for professional sport to take place and supporting
manufacturing and event organizations to do business. The nonprofit sport
sector supports professional sport by providing playing talent for leagues, as
well as developing the coaches, officials and administrators to facilitate elite
competitions. Indeed in some case the sport league itself will consist of
member team which are technically nonprofit entities, even though they
support a pool of professional managers and players. In return, the
professional sport sector markets sport for spectators and participants and
in some case provides substantial funds from TV broadcast rights revenue.

(Q3) Name and explain the different principles of sports
management. (10 Marks)
Ans3: The unique elements of sports management which are rather
different from conventional business organizations and other government
agencies are as follows:
Strategic management
Strategic management involves the analysis of an organization’s position in
the competitive environment, the determination of its direction and goals,
the selection of an appropriate strategy and the effective utilization of its
assets. The success of any sport organization may largely depend on the
quality of their strategic decisions. Nonprofit sport organizations have been
slow to utilize the concepts associated with strategic management, with on-
field performance and tactics tending to dominate and distract sport
managers from the choices they need to make in the office and boardroom.
In a competitive market, sport managers must drive their own futures by
undertaking meaningful market analyses, establishing a clear direction and
crafting strategy that matches opportunities. An understanding of strategic
management principles and how these can be applied in the specific industry
context of sport are essential for future sport managers.
Organizational structure
An organization’s structure is important because it defines where staff and
volunteers fit in with each other in terms of work tasks, decision making,
procedures, the need for collaboration, levels of responsibility and reporting
mechanisms. Finding the right structure for a sport organization involves
balancing the need to formalize procedure while developing innovations and
creativity, and ensuring adequate control of employee and volunteer
activities without unduly affecting people’s motivation and attitudes to work.
In the complex world of sport, clarifying, reporting and communication lines
between multiple groups of internal and external stakeholders while trying to
reduce unnecessary and costly layers of management, is also an important
aspect of managing an organization’s structure. The relatively unique mix of
paid staff and volunteers in the sport industry adds a layer of complexity to
managing the structure of many sport organizations.
Human resources management
Human resource management, in mainstream business or sport
organizations, is essentially about ensuring an effective and satisfied
workforce. However, the large size of some sport organizations, as well as
the difficulties in managing a mix of volunteers and paid staff in the sport
industry, make human resource management a complex issue for sport
managers.
Successful sport leagues, clubs, associations, retailers and venues rely on
good human resources, both on and off field. Human resource management
cannot be divorced from other key management tools, such as strategic
planning or students of sport management need to understand to be
effective practitioners. This topic is of relative importance and will be
discussed later in the forthcoming chapters.
Leadership
Managers at the helm of sport organizations need to be able to influence
others to follow their visions, empower individuals to feel part of a team
working for a common goal, and be skillful at working with leaders of other
sport organizations to create alliances, deal with conflicts or coordinate
common business or development projects. The sport industry prospers on
organization having leaders who are able to collaborate effectively with other
organizations to run a professional league, work with governing bodies of
sport, and coordinate the efforts of government agencies, international and
national sport organizations, and other groups to deliver large scale sport
events. Sport management students wishing to work in leadership role need
to understand the ways in which leadership skills can be developed and how
these principles can be applied. This topic will be discussed in detail later.
Organizational culture
Organizational culture consists of the assumptions, norms and values held
by individuals and groups within an organizations, which impact upon the
activities and goals in the workplace and in many ways influence how
employees work. Organizational culture is related to organizational
performance and decision making. Due to strong traditions of sporting
efforts and behavior, managing of sport organizations, particularly those
such as professional sport franchise or traditional sports, must be aware of
the power of organizational culture as both an obstruction and driver of
performance. Understanding how to identify, describe, analyze and
ultimately influence the culture of a sport organization is an important
element in the education of sport managers.
 Governance
Organizational governance involves the exercise of decision making power
within organizations and directed. Governance is a particularly important
element of managing sport organizations, many of whom are controlled by
elected groups of volunteers, as it deals with issues of policy and direction
for the enhancement of organizational performance rather than day to day
operational management decision making. Appropriate governance systems
help ensure that elected decision makers and paid staff seek to deliver
outcomes for the benefit of the organization and its members and that the
means used to attain these outcomes are effectively monitored. As many
sport managers work in an environment when they must report to a
governing board it is important that they understand the principles of good
governance and how these are applied in sport organizations.
Performance management
From past 30 years sports organization has become more professionally
structured and managed by undergoing an evolution. This organization has
applied business principle for marketing planning their operations, managing
their human resource and other aspects of organizational activity. For the
good performance of the sport the variation in mission and purposes has
lead to the development of various criteria. Sports management students
need to understand the ways in which organizational performance can be
conceptualized, analyzed and reported and how this principles can be applied
in the sport industries.

(Q4) With the help of a suitable example write a note on ‘The

Government and Sport Development’. (10 Marks)
Ans4: The government by which we mean te structure that govern and rule
societies when we look into be sport events has always play an important
roles in the provision of sport experiences to people. We can give an good
example of the ancient Olympic games where these games were funded and
organized by governments of various cities that made up ancient Greece and
ruling monarchs in Europe during the middle ages organized an array of
tournaments and combat games so that they could bring out the skills of
there warrior classes .as the time pass by when the world became
industrialized and modernized the government started expanding its
provision of sports event ,competition, tournaments etc.
The government started taking interest in the various sports activites
where they started funding the school and college of there state to
established sports facilities , these facilities include playing fields, having
small indoor arenas in some cases school and colleges also build up large
stadium so that it can allow 10,000 to 50,000 spectators can sit n watch the
game,some school and colleges are been promised to be funded even for the
equipments required for the particular sport if the school or college releases
more number of players which may represent the state in the coming future.
The government through its institutions provides a really good facilities when
you look in the sports arena it provides good services to players that are
representing their government in turn the state. The stadiums we usually
visit to watch various sport events are usually being funded by the
government, but these stadiums are usually being controlled and operated
by independent private operators, are subject to government legislation and
policy guidelines. In most of the western countries the government also
provides the training centers for the elite athletes and master players that
represent their country or even the state, these government also funds their
outgoing charges when they have to go to participate in a competition out of
country. these government also provide with specialized coaches, medical
experts and provide with expert managers of sport to these elite players.

(Q5) A) Write a note on the ‘Different government organizations for

development of sport in India’. (5 Marks)
B) What are the aims and objectives of SAI? (5 Marks)
Ans5: A) MINISTRY OF YOUTH AFFAIRS & SPORTS:--
The Ministry of youth affairs and sports ,a branch of the government of
india, which administers the depertment of the youth affairs and department
of sports in india .the ministry was set up as the department of sports at the
time of organized of 1982 Asian Games, New Delhi. Its name was changed
to the
Department of youth Affairs & sports during celebration of the International
Youth year , 1985.It became a ministry on the 27 th may 2000.
Sports promotion is primarily the responsibility of the various National
sports Federation which are autonomous,The role of the government is to
create the Infrastructure and promote capacity building for broad basing
sports as well as for achieving .The Department schemes are geared towards
achievbing these objectives.

SPORTS AUTHORITY OF INDIA (SAI)

The sports authority of india (SAI), a successor organization of the IXth
Asian Games held in New Delhi in 1982, was set up as a Society registered
of Societies Act,1860,dated 25th January 1984 of the Department of Sports,
Govt.of India with the objective of promotion of sports and games as
detailed in the Resolution. It is also entrusted with the responsibility of
maintaining and utilizing , on the behalf of Ministry of Youth Affairs & Sports,
the following Stadia in Delhi which were constructed/renovated for the Ix
Asian Games held in New Delhi in 1982:-
1. Jawaharlal Nehru Stadium
2. Indira Gandhi stadium(indoor)and Yamuna velodrome
3. Major Dhyan Chand National Stadium
4. Dr. Shyam Prasad Mookherjee Swimming Pool Complex
5. Dr. Karni Singh Shooting Ranges
Subsequently, in order to adopt an integrated approach towards promotion
and development of sports consciousness, the other society for national
institute of physical education and sports (SNIPES) consisting of NSNIS
Patiala at its centers and the two LNCPE’s located at Gwalior and
thiruvananthapuram were merged with SAI w.e.f. 1st may 1987. Thew
LNCPE Gwalior was however, delinked from SAI in September 1995b in
attaining the status of a “Deemed University”.
B) Aims of the SAI
 Talent scouting at micro level and nurturing talent towards
excellence.
 Training and international exposure for athletes.
 Support training with scientific and sports equipment and scientific
personnel.
 Monitor and enhance performance with a scientific evaluation
system.
 Training and preparation of national teams.
 Sports infrastructure development and maintenance.
 To produce coaches and physical educations of high caliber in
different disciplines of sports to broad base sports.
Objectives of the SAI
 to promote and broad base sports in the country.
 To implement schemes/ programs for achieving excellence in sports in
different disciplines at international level in order to establish India as
a major sporting power.
 To maintain and utilize on behalf of the government stadia which were
constructed for the IXth Asian games held in 1932.
 To act as an interface between the ministry of youth affairs and sports
and other agencies concerned with the promotion / development of
sports in the country on the others hands i.e. state government, U.T.
administration IOA, national sports federations, sports control broad,
industrial houses, etc.
 To establish, run, manage and administer the institutions to produce
high caliber coaches, sports scientists and physical education
teachers.
 To plan, construct, acquire, develop, take over, manage, maintain and
utilize sports infrastructure and facilities in the country.
 To initiate, undertake, sponsor, stimulate, and encourage research
projects related to various sports sciences for up gradation of sports,
sportspersons and coaches.
 Other incidental issues concerning promotion, development and
excellence in sports.
The government has the ability to significantly shape the structure
and scope of sport through a number of ways. It can construct sport
facilities, infrastructure, it can fund the day to day operations of
 sporting associations and clubs, it can deliver sport programs to the
community directly, it can establish training facilities for elite athletes
To assist their ongoing development, and finally it can control the
operations of sport by introducing various laws, regulations and rules.
However, the amount of government support, and the form it takes,
will vary between nations depending on the dominant political
ideology, and the overall cultural importance of sports to society. In
some cases the government will directly control and manage sport
while at the other end of the political spectrum the government will
step back from the sport system and encourage the commercial and
volunteer sectors to take up the place.
(Q6) A) How are non-profit organizations involved in the
development of sports? (5 Marks)
B) What are the basic differences in the roles of non-profit
organizations and government organizations in the
development of sports? (5 Marks)
Ans6: A) Involvement of non profit sector in sports
The non profit sector in sport includes the voluntary organizations like local
or district state and national sport associations. These associations may or
may not be affiliated or recognized by the government sport bodies. The sole
aim of these organizations is to promote and develop sports in the country.
Nonprofit sport organizations also strive hard to increase mass participation
in their respective sports. Increasing mass participation also provides the
sport industry with the hidden talent required to fuel the professional sector
in sports. Nonprofit sport organization utilize the infrastructure and facilities
provided by the government to improve the standard of sports.
The Olympics association, district, state association, and national
federations are the part of the nonprofit sport sector. Other nonprofit entities
may include the public trusts and other sport organizations striving for
sports development.
Differences in the roles performances by the government and nonprofit
organizations
There is a wide difference in the roles of nonprofit sport organizations and
the government sport organizations. Though, it is true that both of these
sectors carry out activities for the promotion and development of sports the
industry, they both have different roles and responsibilities.
The government sport organizations are responsible for the designing
building and development of sports infrastructure and other sport facilities.
While the nonprofit sport organizations make use of these facilities for their
respective sports to train the athletes and provide them essential sports
training. The nonprofit sport organizations improve participation in their
respective sports by using these sports facilities provided by the
government. The government gives the full control of such sport
infrastructure to the nonprofit organization in order to utilize them to the full
extent and to maintain them properly.
The government provides funds to these nonprofit sport organizations for
organizing the sport events, tournaments and championships at various
levels. The amount of funds allocated may vary according to the level of the
sporting events, i.e. local, district, state or national level. The nonprofit
organizations may also raise funds through collecting entry fees for these
events and utilizing them for the development of their respective sports.

(Q7) With the help of suitable examples write a note on ‘Structure of

people associated with non-profit sport organizations’. (10 Marks)
Ans7: The nonprofit sports sector structure consists of various levels of
people who voluntarily strive hard for the promotion and development of the
different sport they are associated with. These people are the ones who
conduct various tournaments, championships in order to improve mass
participation in their sport. They consist of the following:
Administrators
Administrators who act as the elected or appointed committee members
have the responsibility for the overall guidance, direction and supervision of
the sport organization. The responsibilities of the management committee of
the sport club are lined as follows:
 Conducting long term planning for the future of the organization.
 Developing different policies and procedures for regular organization
activities.
 Managing external relations with other sports organizations, local
government or sponsors.
 Managing financial resources and legal issues on behalf of the club.
 Carrying out recommendations and suggestions put forward by
members.
 Communications to members on current issues or development in the
club.
 Evaluating the performance of officials, employees and other service
providers in the club.
 Ensuring that adequate records are kept for the future transfer of
responsibilities to new committee members.
 Acting as a role models for other club members.
Coaches
Coaches working in the sport club system may be unpaid or paid, depending
on the nature of the sport and the resources of individual club. The role of
the coach is central to developing athlete’s skills and knowledge, in helping
them learn tactics for success, and enjoy their sport. Coachers also act as
important role models for players and athletes. Most sports provide a
structured training and accreditation scheme for coaches to develop their
skills and experience to coach at local, state, national or international levels.
In Australia for example, the national coaching council established a three
level national coaching accreditation scheme in 1978. Coaches can
undertake a level 1 introductory course, level 2 intermediate course and
level 3 advanced courses in coaching.
Usually coaching training programs comprise three elements (1) coaching
principles that cover fundamentals of coaching and athletic performance, (2)
sport specific coaching that covers the skills, techniques, strategies and
scientific approaches to a particular sport, and (3) coaching practice where
coaches engage in practical coaching and application of coaching principles.
Officials
Sports officials include those people who act as referees, umpires, judges,
scorers or timekeepers to officiate over games or events. The majority of
officials are unpaid, but some sports as cricket, football, basketball, and
some other football codes pay officials at all levels, enabling some to earn a
substantial salary from full-time officiating. Other sports such as netball,
softball or tennis rarely pay officials unless they are at state or national
championship level. All sports provide a structured training and accreditation
scheme for officials in much the same way as coaches to develop their skills
and experience at local, state/provincial, national or international levels.
The training programs for officials include (1) general principles of officiating
and event management, (2) sport-specific technical rules, interpretations,
reporting and specific roles and (3) practice at officiating and applying the
officiating principles.
General volunteers
Sports clubs also depend on people to perform roles in fundraising,
managing representative teams, helping with match day arrangements such
as car parking or helping to market the club. The majority of general
volunteers have an existing link to a sport club through being a parent of a
child who plays at the clubs, having some other family connection, or
through friends and work colleagues involved in the club. Volunteers are
generally working in the field of making arrangements for athletes, teams,
and other staff at the event venue.

(Q8) A) What is professional sport? (5 Marks)

B) Using suitable examples explain what is different about
professional sports? (5 Marks)
Ans8:A) professional sport, wherever it is played is the most expensive,
most visible, and most watched sporting activity. It captures the lion’s share
of media coverage, as well as almost all sponsorship revenue and corporate
support that is an offer. Professional sport is played in cities all over the
world, from Kolkata, India to Rio de Janeiro, Brazil to Melbourne, Australia in
the very best stadiums, by athletes who may earn, depending on the size of
the market, up to millions of dollars. Sport may once have been played
exclusively for enjoyment, by amateurs at local levels, but this scenario is
now a distant memory. Professional sport and the industry that surrounds it
dominate world sport and those that play it are cultural celebrities on a
global scale. Local, regional, state and national sport organization are often
geared around feeding professional sport leagues by developing player talent
or spectator interest. These same organizations also often compete in vain
with professional sport media coverage, sponsorship and general support. At
its best, professional sport is the apex of the sports industry that supports
those organizations below it by generating financial resources and cultural
reserve.
B) Different about professional sports
Highest level of sport in the world:
Professional sports is the sport which is played at the highest level in the
world. Some of these professional sport events include the Olympics, world
championships and country specific international invitational tournament.
The standard at which professional sport is played is the highest.

Best athletes in the world compete with each other in professional sports:
In professional sports, the best athletes from across the world compete with
each other. As in professional sports there are always qualifying
tournaments for the top level professional sports, the top athletes are the
ones which participate in professional sports.

Amount of money involved is higher:

The athletes which compete professionally are paid huge amount of salaries.
The prize money for tournaments and championships is also enormous. for
example Christiano Ronaldo earned 119000 dollars per week, that was when
he was at Manchester united in organizing and conducting of professional
sport tournaments is also quite higher as compared to other level of sports.
Also other support staffs like coaches, referees, umpires etc. are also paid
abundantly in professional sports.

Use of best support staff

In professional sports, the support staffs consisting of coaches, referees,
umpires, physiotherapists, medical doctors, nutritionists etc. are one of the
bets. They are highly trained and qualified in their respective fields. They
work as a team in the professional sport environment in order to enhance
the performance of the professional athletes.

Use of the best available technology

In professional sports the best available technology is used in order to
provide the spectator a closer look at the competing athletes. Wide screen,
laser light effects, different camera angles, air view cameras etc are used to
provide the spectators a perfect view of the ongoing sport. In addition to this
in professional sports latest electronic equipments may include heart beat
monitors, small lens cameras, wireless communication devices etc. hence
the latest technology is harnessed and used at it best to provide the best
coverage and competition in professional sports.

Glamour and fame in professional sport:

Professional sport brings glamour and fame along with it. Professional
athletes get different advertisements, brand ambassador contracts, which
not only add glamour to their sport and personality but also make them
famous. Athletes such as Lance Armstrong, Sachin Tendulkar, Micheal
Jordan, Roger Fedrer, Chistiano Ronaldo, Micheal Phelps etc.are thye ones
who have got fame and glamour being associated with professional sport.

The best of experience gained in professional sports:

As stated earlier, professional sport is played at the highest standard, and all
the top athletes compete in them. These athletes make to this level after
years of hard work and experience. When they compete with each other at
such a high level, the amount of exposure and experience athletes gain is
also the best as compared to all other levels of sport. Hence, professional
sport provides athletes to excel in their respective sports at a very fast rate.

(Q9) What is ‘Player Management’? Give suitable examples. (10

Marks)
Ans9: In professional athletes are given a royal treatment, may it be the
food they eat, the clothes they wear or the place they stay in, during
championship. They are provided with top quality equipment and other sport
supplies. This is done basically to improve their performance and also to get
the best of them. Sport clubs and team management leaves no stone
unturned to provide the professional athletes with all the comfort they want,
in order to make them perform at their best.
These athletes have to attend many sport conferences, press meets, and
also have to travel over long distances for their tournaments and practice
sessions. Rather getting all these jobs done by them, various top notch
athletes hire sports management companies which provide them with a
personal sport manager and take care of the athlete whole and sole sporting
needs.
Majorly these players management companies also take care of
communications and other legal work done between the athletes and clubs.
They help the player to get more sponsors and advertisements campaigns.
They look after all the financial, legal and also the sport related aspects of
the professional athlete. Other responsibility of such player management
companies include, booking travelling tickets and hotels for stay, providing
the athletes with proper sport equipments whenever he requires or fixing or
press conferences etc.
 Such players management companies are hired by the professional athletes
themselves, but in some classes the club may hire such expertise for the
whole sport team.
Professional sport stars are well paid by any measures. Importantly, their
salaries are relative to revenue of the clubs, leagues, tournaments and
events of which they are a par. In fact, in some professional sports with
strong players unions, the level of remuneration for players is set as a
percentage of league revenue.
The media, owners, advertises, leagues, clubs and athletes are part of a self
sustaining commercial alliance, in which each of the partners promotes and
supports the activities and interests of the others. Commercial networks are
the binding forces that are holding professional sport together in the twenty
first century. Professional sport leagues and clubs have increasingly become
willing partners in the promotion of their activities, as well as the promotion
of subsidiary products and services, and in the process have become major
players in a multi player in a multibillion dollar industry.

(Q10) Name and explain the various disciplines in sports event

management. (10 Marks)
Ans10:

SUBJECT 02:
HEALTH & SPORTS

(Q1) Write a note on ‘The importance of Physical Fitness’. (10

Marks)
Ans1: Physical fitness is in your life plays an important role that should
never be taken lightly. We usually in our daily busy life forget to go through
a good fitness session at home or at any fitness centers. Fitness is important
because it keeps our body active and the age does not affect our body if we
work out daily. Before we get to know the importance of fitness we should
first know what is meant by fitness, fitness is nothing but the movement of
the body other than the normal bodily functions that are required to keep us
alive. fitness makes you exert m ore energy than the normal functions
require and keeps your body in a warm and healthy condition, it forces in
the fastening of your regular cycles such as breathing gets faster, even your
heart rate pumps up to higher level. There is no specifications in the case of
fitness, fitness can be anything like moving down and up the stairs or even
jogging at an nearby open field or park, fitness may also include swimming
which usually involves the movement of your total body, you can also
include cycling in the sessions of fitness, fitness at a common level is going
to a gym and working out beyond your potential, weight lifting, you can also
include playing a sport it may not be at a professional level even for a cause
of fitness and more. now that we have understood the meaning of fitness
lets get into the importance of fitness:
The several benefits that are derived from the regular physical fitness work
out. Work out chopped out in correspondence to the physical needs of the
body, if observed regularly, may help the body get into the desired shape
and develop resistance power in the body. the major benefits derived from
fitness training programs are bringing down the weight of the bulky body to
right proportion, increases the resistance power in the body which results in
decreasing the risks of getting attacked by diseases, helps in cutting down
the fats from the body and finally gives the body a tone shape. Not only this
but also helps in frequently getting caught in depressions cures insomnia by
helping enhance the sleeping routine releases positive vibes in the body and
thus increases self esteem and apart from this also gives more energy and
stamina to the body.
Fitness training also helps in increasing the metabolism of the body, which
means more muscles using more calories in body. The training has increased
fit muscles in body by burning the calories. After the body grow senile, the
body losses its muscles and the metabolism of the body slow down gradually
which means the calories of the body is not burnt and gets concentrated
which results in increasing the weight of the body. So to keep the
metabolism from slowing down and not letting the fat concentrate in the
body one can opt for some fitness training and take some aerobic activities.
Taking exercises not only helps one maintain a strong and toned look from
outside but also keeping the mental peace and content. It also helps in
reducing symptoms of menopause, cardiac diseases and keeps the level of
cholesterol in control. And in all it gives the body a much toned shape, which
not only looks strong but is stronger than what it looks like.

(Q2) Write a note on:

A) Aerobic exercise (5 Marks)
B) Anaerobic exercise (5 Marks)
Ans2: Anaerobic exercise
Anaerobic exercises are nothing but where you force your body to push in
muscular system by overloading the muscle beyond its normal capacities.
You usually have many ways of going through anaerobic exercises but one of
the best ways is that you go through is by weight lifting. The main idea in
this kind of fitness is to burn out the muscles within 6-10 reps.
The main idea behind this anaerobic exercise is to gain more muscular
power and strength and it is the best way to add in more mass for your
muscles over a period of time if you have a proper diet and periodic table of
workout. When you take example of a triceps exercise you should not work
out the exercise in a continuous extend because you need to give rest to the
muscle you have been working out.
Aerobic exercise
Aerobic exercise is physical fitness that targets your cardiovascular system.
Some of the most popular aerobic exercises are running, swimming, and
lifting light weight with 15+ repetitions. We can define aerobic fitness as the
increase in heart rate and energy exertion beyond your normal resting limits
that forces you to sustain a high level heart rate for 20 or more minutes at a
time. To achieve an optimal level in aerobic exercise you must achieve and
sustain a high heart rate ranging usually between 140-160 BPM.
Keep in mind that your heart is a muscle aerobic exercise causes your heart
to beat faster and more often during the excursion which over time will add
strength to your heart. In time the benefits will show even when you are not
working out because your heart will become much more efficient. Most
athletes have a resting heart rate of around 40 BPM where the normal out of
shape food junky may range as low as 60 BMP upward to 70-80 BPM which
means their heart has to beat almost twice as much to get the same oxygen
flow through the body to feed the cells and muscles. So combined aerobic
and anaerobic exercise has an obvious advantage to your body and proves
the importance of physical fitness in your life. You will feel better because
your muscle get stronger; your body becomes more balanced and delivers
oxygen better plus removes toxins at a fast rate. Remember that
consistency is key to achieving a healthier life style. Once a week of fitness
is better than nothing but 3+ times week is preferable.
There are other roles that play into the importance of physical fitness like
diet, nutrition, and rest but the idea is to start small wherever you are and
to work your way up. Now keep in mind when adding fitness into your life
whatever your choice may be your rest is equally as important as the fitness
itself. You see fitness alone is the destructive part, your rest is your body
recovers and rebuilds to become stronger and more efficient for the next
time you exert it. So a balance between physical fitness and rest are two
very important components to healthy life style.
 Feel better.
 Look better.
 Become more efficient.
 Think more clearly.
 Become less stressed.
And also there are so many other positive factors that can be contributed to
exercise. So the importance of physical fitness is quite clear, get it into your
life no matter what your level is today. You will improve and you will get
stronger over time. Your first step is to make the decision to stop saying you
want to do it and just simply do something about it. Take action and realize
the mindset that you and only you have the power to change your body,
take control in the moment and seize your opportunity to get healthier and
achieve high levels of physical fitness.
(Q3) Write a note on ‘Significance of Sport activity in life’. (10
Marks)
Ans3: the importance of sports in the life of a young student is invaluable
and goes much further than the basic answer that “it keeps kids off the
streets”. It does in fact keep kids off the streets, but it also instills lessons
that are essential in the life of a student athlete. Sports play a pivotal role in
the makeup of a young athlete, especially in the middle school to high school
years where student athletes are much more mature and mentally
developed. What else can a young, impressionable youth learn values like
discipline, responsibility, self confidence, sacrifice and accountability.
Television , which may be the most influential tool in the lives of young
adults, does not show enough of these qualities, nor it is on the internet, or
radio. Rather it is up to the parents, teachers, sports team, clubs, and after
school programs to help mold, develop, and instill these qualities into the
lives of student athletes. In order for this to happen, school sports programs
must have a few components in place. The first thing they need is a good
core of coaches that understand the great responsibility that is placed upon
their shoulders to help shape and prepare these students athletes not only in
sports, but in their everyday lives.
The second component also involves the coaches: it is ability to capture the
admiration and the trust of the athletes. This is crucial because if you can
capture a person’s admiration and trust you can motivate them to perform
at a higher level not only in sports, but also in their own lives. If you can get
the athletes to believe in you and your philosophies you can begin to see
significant changes in grades and behavior.It all starts with coaches that
have a plan and methodology behind the principles they are teaching. As
mentioned earlier, there is a great responsibility on the coaches to help
young student athletes make a smooth transition into society.
The third and I believe the most crucial of all is the support that comes from
the community, and administration. This is very important because student
athelets need to know they are appreciated and there is no greater way than
for the community, booster club, and commissioners/treasurers to show that
appreciation than to get involved in youth athletics. In order to accomplish
this it’s going to take investment and the most valuable investment are
money and time. The more invested, the better the results. I can attest that
there is no greater investment than the future of our young student athletes.
When these things are in place, student athletes will benefit and the results
will be evident not only on the field, but long after they step off of it.

(Q4) Explain with suitable examples ‘The time requirements of a

Team Physician’. (10 Marks)
Ans4: 1) CONVINENT OFFICE SCHEDULE:
A team physician must have an office schedule that can
accommodate athletes with urgent and time sensitive medical needs.
2) EASY ACC rooms should ideally ESSIBILITY:
Most team physicians have designated training room time each week, at
least one to two evenings where they can evaluate new and follow up
existing injuries of team members. This is an especially important setting in
which to communicate with the trainer on the rehabilitation progress of
athletes injuries. An athlete’s behavior and responses can vary widely
depending on the familiarity of the environment; hence, training rooms
should ideally be held in the athlete’s “native environment.” at a location
convenient to athletes and close to practice or training facilities.
3) ATTENDING TEAMTRAINING SCHEDULES:
Team physician often neglect team practices. While it is not necessary
that all practices be attended, occasional, brief appearance during practice
will allow the physician to gain insight into the environment and condition in
which the athletes train, the team’s training routine, and interaction between
coaches and players. A better appreciation of all these factors can prove
very useful in the physician’s medical decision making. Additionally, brief
appearances at practice help the physician build friendly relationships with
coaches and players, establishing his or her role as a part of the team and
distinguishing the physician from other officials, support staff, and media
representatives who only participate in game day activities.
4) ATTENDING SPORTING EVENTS:
Amount of time spent at the actual competition depends on the team
physician’s role and availability, as well as rules and regulations of the
governing sport association. Other laws allow non physician medical
personnel, such as an athletic trainer, to cover an event with on call
physician backup.
A doctor who is the team physician for an entire institution must decide
whether to attend all the games for a few teams, or to attend a few games
for every team . We recommend that team physicians attend at least part of
one practice and at least one game for each team they supervision.
Providing good team medicine is very difficult without observing the
interactions and conditions of play and practice.

(Q5) A) Who is a team physician? (5 Marks)

B) What should be the core knowledge of the team physician? (5
Marks)
Ans5:A) The team physician is a person who is responsible for treating and
coordinating the medical care of the athletic team members. The principle
responsibilities of the team physician is to provide for the well being of
individual athletes enabling each to realize his or her full potential. The team
physician should posses special proficiency in the care of muscular and
skeletal injuries and medical conditions encountered in sports. The team
physician also must actively integrate medical expertise with other health
care providers, including medical specialist, athletic trainers, and allied
health professionals. The team physician must ultimately assume
responsibility within the team structure for making medical decisions that
affect the athlete’s safe participation. He or she must also have an
unrestricted medical license.
Doctors from many specialties serve in the role of team physician with
primary care physicians comprising the majority.
The team physician is part of a team of professionals that care for the
athletes and contributes to their success by maximizing training and
competition preparations. He or she also assist by accurately diagnosing
ailments and promptly, yet completely, rehabilitating injuries to get athletes
back to competition as quickly and safely as possible. In addition to
expertise in the common medical conditions encountered in athletes, other
necessary qualities include: flexibility and availability, good communication
skills, a desire to educate, and an understanding of injury prevention
principles.

B) Core knowledge of the team physician

1) Understanding medical conditions:

To perform his or her duties effectively, a team physician needs an
understanding of the medical conditions common to the athlete. This
knowledge should include many area of medicine, including but not limited
to orthopedics, cardiopulmonary medicine, neurology, dermatology, and
sound principles of rehabilitation.

2) Knowledge of medicines and drugs used in treatment:

The team physician also needs expertise in pharmacology. Practical
pharmacology of the team physician includes not only how to treat illnesses,
but also an understanding of performance enhancing drugs and herbal
medicines. Team physicians must be familiar with the substances that are
banned by the governing athletic association so that an athlete does not
accidently lose eligibility to compete.

3) Basic knowledge of sports psychology:

A team physician must have a general knowledge of behavioral medicine and
psychology. Mood disturbances and mental illness affect athletes and can be
very common in injured athletes.

4) Knowledge of exercise science and proper nutrition:

A team physician’s knowledge of exercise science and nutrition can help
prevent injuries, as well as maximize an athlete’s performance. Disordered
eating and over training can prove devastating if not recognized early and
treated effectively.
(Q6) With a suitable example write a note on ‘The Athletes needs for
energy’. (10 Marks)
Ans6:the average athlete’s energy breakdown in diets is typically given as
50% from carbohydrates, 35% from fats and 15% from proteins, but this
patter can vary considerably if carbohydrates partly substitute for fats, with
proteins remaining at approximately of total energy consumption. Thus, a
10% increase in carbohydrates would necessitate a 10% decrease in fats, so
that the mix of the two major energy components would be 60% and 25%.
The latter percentage breakdown of energy is more consistent with the
actual intake of many elite athletes specially endurance athletes.
Requirements vary according to the 2 major types of activities, aerobic
exercise or resistive exercise.
1) In fact, some of the powerful heavy athletes, such as sumo wrestlers,
may have a diet higher than 35% in fat and lower than 50% in
carbohydrates. Recommended dietary allowances for energy for adult
males and females are 3100 and 2400 kcal/day, respectively, but
these amounts are generally exceeded by active competitive athletes,
though not necessarily by recreational athletes.
2) RDAs of course, depend on body size, and many athletes have high
body mass indices without being obese; so the highly muscled athlete
may need much more than the RDA, while the endurance type, more
aerobic athlete may need more than the RDA but not as much as the
high BMI well muscled types. Some endurance athletes increases their
intakes of energy and protein through the use of supplemental
powders that may also contain micronutrients, i.e., vitamins and
minerals.
3) These athletes can greatly increases their intakes, especially while
participating in their sports by diluting these powders in water and
carrying their bags on their backs. Supplements are generally
considered to help these athletes, who may be on the road or tail for
hours at a time. Almost all others athletes do not need to go to such
lengths to meet their energy and protein needs, but they may need
breaks from time to time to consume an energy drink or bar. In
general, trained athletes do not wish to gain or lose weight, but rather
to stay at their weight of optimal performance.
4) These athletes typically consume foods with high nutrients density,
i.e., fairly rich in micronutrients per total amount of energy in a
serving, and they commonly take nutrients supplements of one type or
another, depending on their specific sport or activity. Recreational
athletes should also try to include more nutrient rich foods in their
diets, and they may also wish to take a daily supplement of vitamins
and minerals appropriate for age and gender.
(Q7) Write a note on any two:
A) Athletes need for essential fatty acids (5 Marks)
B) Athletes need for micronutrients and water (5 Marks)
Ans7:A) Athletes needs for essential fatty acids:
Athletes, like others, need essential fatty acids to support many functions of
the body. The two types of EFAs are omega-6 and omega-3 fatty acids.
Typical diets provide more of the omega-6 fatty acids and less of the omega-
3 fatty acids than needed to maintain a healthy balance between the two
types, which are used for eicosanoid synthesis. eicosanoid is a general term
that includes the prostaglandis, the original name given to this class of lipid
molecules. Recommended for healthy intakes of each type exist, but few
athletes consume enough omega-3 FAs because of low intakes of fish, fish
oils, and a few other food sources. A small percentage take fish oil
supplements that help restore the balance between the two types of EFAs.
These supplements are required by the athletes because they require a
proper fatty acid proportion in their body. These supplements give an instant
energy to the athlete. These supplements usually do not have any kind of
side effects if take in a balanced way but may cause in many cases when
take in large proportion.
B) Athletes need for micronutrients and water:
Micronutrients including water, are also needed by athletes in order to
function. Foods should provide these nutrients if we consume enough
servings from different food groups, but athletes, like many others, do not
consume sufficient amounts of fruits and vegetables on a daily basis. So,
they typically need a vitamin – mineral supplement to try to maximize their
athletic functions. In general, many of these micronutrients help metabolize
carbohydrates, fats and proteins and therefore play roles that may be
directly involved with exercise and sports, whereas others have functions
that support life, cell renewal, and other activities at a more basic level.

(Q8) A) What are protein supplements? (5 Marks)

B) What is creatine and what are the various health risks caused due
to its consumption? (5 Marks)
Ans8:A) Protein supplements
Many athletes often take a powdered form of protein, the essential building
blocks for muscle. Protein powder is generally consumed immediately before
and after exercising, or in place of a meal. The theory behind the
supplementation is that having a sufficient protein intake allows for efficient
growth and repair of muscle tissue.
 Whey protein is the most commonly used type of protein. It is
absorbed by the body very quickly and easily. It contains high levels
of all the essential amino acids, branched chain amino acids and has
the highest content of the amino acid cysteine which is important for
 the biosynthesis of glutathione which has extremely important
immune boosting properties for the body.
 Casein protein is the richest in glutamine, an amino acid that acids in
recovery, and has casomorphin which helps the body to absorb the
amino acids over a long time.
 Soy protein contains all essential amino acids, and is an alternative
protein for vegans. Soybeans also contain isoflavones, a type of
phytoestrogen, which have a weak estrogenic activity.
 Egg white protein is a lactose and dairy free protein.
 Hemp seeds contains complete and highly digestible protein and
hemp oil is high in essential fatty acids.
B) Creatine
Creatine is an organic acid naturally occurring in the body that supplies
energy to muscle cells for short bursts of energy via creatine phosphate
replenishment of ATP. A number of scientific studies have shown that
creatine can increase strength, energy, muscle mass, and reduce
recovery time. In addition, recent studies have also shown that creatine
improves brain functions and reduces mental fatigue. Unlike steroids or
others performance enhancing drugs, creatine can be found naturally in
many common foods such as herring, tuna, salmon, and beef, making it
difficult to ban it from sporting competitions.
It increases what is known as cell volumizatio by drawing water into
muscle cells, making them larger. This intracellular retention should not
be confused with the common myth that creatine causes bloating.
Creatine is sold in a variety of forms, including creatine monohydrate,
and creatine ethyl ester, amongst others. Though all types od creatine
are sold as price, and necessary dosage. Non supplementation suppliers
of creatine include various types of offal, red meat, and kidney meat.
Health risks caused by creatine:
1. Creatine helps combat and prevents coronary heart diseases and
prevents dementia. As this supplements makes the nerves and
muscle stronger, chondroitin is much used in the world of sports
to help athletes and body builders build up muscle and
endurance. A danger of dietary supplements is that people often
only find out about possible side effects after a long time.
2. Creatine supplement causes dehydration and great care must be
taken to drink plenty of water when using this supplement.
Dehydration can quickly cause damage to vital organs and blood
vessels. Creatine causes dehydration by storing fluids in muscles
and tissues, withdrawing it from the bodily processes such as the
blood flow and digestion. Severe cramping can be a symptom of
this dehydration.
 3. One of the dietary supplement dangers of creatine is also that
people taking it will gain approximately 6 to 8 pounds during the
first weeks of using the supplement.

(Q9) Write a note on:

A) In-competition testing. (5 Marks)
B) Out of competition testing. (5 Marks)
Ans9: A) Inc competition testing:
NADA coordinates in competition testing so that there is only one
organization testing at one event. Criteria for the selection of athletes are
predetermined, based on the regulations of the relevant international
federation or event ruling body. Athletes are notified of their selection for
testing immediately following competitions, and sample collection takes
place in accordance with the international standard for testing. Samples are
analyzed for “in competition substances” as outlined in the WADA prohibited
lists.
B) Out competition testing:
Out competition testing or any testing done outside of an event ensures that
all athletes can be tested at any time and at any place. An athlete identified
in the registered testing pool by NADA is required to provide accurate and
current whereabouts information. This information is usually required on a
half yearly basis, although NADA may have specific requirements, and
updates are required if the athlete’s plans change. Whereabouts information
may include details such as home address, work schedule, training venues
and schedules, and competitions schedule anything which will help a doping
control officer find the athlete on any given day. International or national
level athletes identified in a registration testing pool are responsible under
the code for providing whereabouts information to NADA. Failure to do in
accordance with anti doping regulations may be considered an anti doping
rule violation and may result in a sanction of ban.

(Q10) Name and explain with suitable examples the various

components of fitness? (5 Marks)
An10: components of fitness:
 Strength :
The extent to which muscles can exert forces by contracting against
resistance example holding or restraining an object or person

 Power:
Power is the ability to exert maximum muscular contraction
instantly in an explosive burst of movements. The two components
of power are strength and speed. Example jumping or a sprint
start.
  Agility :
Agility is the ability to perform a series of explosive power
movement in rapid succession in opposing directions example zig
zag running and cutting movements.

 Balance :
Balance is the ability to control the body’s position, either
stationary or while moving example handstand , a gymnastic stunt

 Flexibility :
Flexibility is the ability to achieve an extended range of motion
without being obstructed by excess tissue, i.e., fat or muscle
example executing a leg split.

 Local muscle endurance :

It is a single muscle’s ability to perform sustained work example
rowing or cycling

 Cardiovascular endurance :
It is heart’s ability to deliver blood to working muscles and their
ability to use it example running long distance.

 Strength endurance :
It is a muscle’s ability to perform a maximum contraction time after
time example continuous explosive rebounding through an entire
basketball game.

 Coordination :
It is the ability to integrate the above listed components so that
effective movement are achieved.

Subject 03:
Introduction to Marketing Management in Sports

(Q1) What do you understand by the term ‘Marketing’? (10 Marks)

Ans1: the process of marketing has been developed around the idea that
the customer is the most important person to any company or organization.
In order to do good business or in fact stay in business, every company
must work hard to retain its existing customers and also attract new ones.
For any organization to be competitive in today’s society, it must undertake
good customer research to understand the needs and wants of the market,
rather than being led by internal perception with the entire business, as seen
from the customers point of view.
Within the sports industry, marketing is used to communicate and sell the
benefits of products and services to potential and existing customers. This
might be in the form of a service or a new sports product. An example would
be a new design of performance shoes, where the aim is to make customers
aware of features such as lightweight material which differentiates the
product from that of competitors.
Marketing is not only restricted to the private sector organizations. Many
public and nonprofit sector sport organizations use marketing tools to reach
their target audience. This is especially done in the light of a blurring of
boundaries between different sectors which is caused due to the need of
sports organizations to account for themselves financially, the trend towards
broader accountability, and the growth of privatization and competition in
the market.
Sports organizations, hence must effectively utilize the various tools of
marketing concepts and theories which must be adapted to match the sports
consumer, customers, participant or fans. The marketing environment in
which the sport organization wishes to communicate its product or service
to, in order to achieve the desired purchase behavior, should be analyzed.
Marketing tools are needed to maximize the sale of products or subscription
such as memberships, or match tickets for a season; to increase awareness
of a growing sport or to differentiate a product from its various competitors.
In order to achieve success, a sport organization must attract and retain
growing base of satisfied customers. Marketing programs and strategies are
aimed at convincing the target audience or people to try out or keep using
particular products and services in order to maintain a strong position in the
market place. Marketing is the activity or creating, communicating,
delivering and exchanging offerings that have value for customers, clients,
partners and the society at large.

(Q2) Explain the concept of ‘The product life cycle’ (10 Marks)
Ans2: The product life cycle refers to the sequence of stages a product or
service goes through. Product life cycle management is the sequence of
strategies used by management as a product goes through its life cycle.
Stage 1: New product development stage
This first stage can be very expensive and risky. No sales revenue has yet
been generated. Expenditure in this stage may not be recovered for a long
time. Indeed, some products do not progress beyond the product
development stage. It is essential at stage to research target customers
perceptions of the product or the service to ensure that it fits with their
wants and needs.

Stage 2 : Introduction
Costs are still high due to low sales volume . If it is a new product or service
coming into the market thus can mean that there is little or no competition.
It is vital and very important at this stage to watch for acceptance from
customers. New products are heavily discounted are advertising is used to
push the product to the customer. Growth is slow at this stage of the PLC.

Stage 3 : Growth
The aim at growth stage is to build consumer preference by putting the
product/service in the customer’s mind. At this point costs are reduced by
economies of scale, meaning that if larger quantities of products are
produced, the cost per item is lower. At this stage the sales volume
increases significantly leading to profitability, greater public awareness and
hopefully loyalty to the product or service. If the product or service is
popular, competition is likely to increase. For example, when the iPod
became a market leader, Sony introduced their own version of MP3 player in
order to compete with Apple.

Stage 4 : Maturity
a product reaches maturity when sales stabilize. Often other competition
companies enter the same market with similar products or services.
Marketing activities such as discounting or promotions used to improve sales
of these products. It may be necessary to diversify product or bring a new
updated version into the market place as each competitor seeks to gain
market share. Costs can be very low as the product is well established in the
market at this point. Sales volume peaks and increases in competitors
offerings will lead to prices dropping due to rise in the number of
competitors. It is essential to differentiate from competition and to focus on
developing brand loyalty.

Stage 5 : Decline
At this point in the product life cycle sales and profits fall. As sales decline it
is necessary to decline whether to extend, rebrand or remove the product or
service.

(Q3) Write a note on the ‘Boston Growth Matrix’. (10 Marks)

Ans3: The BCG matrix is a chart that had been created by bruce Henderson
for the boston consulting group in 1968 to help corporations with analyzing
their business units or product lines. This helps the company allocate
resources and is used as an analytical tool in brand marketing, product
management, strategic management, and portfolio analysis. High growth
rate may be defined as 10 percent or higher. High market share is defined
as equal to, or greater than, that of competitors with category leadership.
The BCG comprises four categories of products: stars, problem children,
cash cows ad dogs.
Stars: stars are units with a high market share in a fast growing industry.
The hope is that stars become the next cash cows. Sustaining the business
unit’s market leadership may require extra cash, but this is worthwhile if
that’s what it takes for the unit to remain a leader. When growth slows, stars
become cash cows if they have been able to maintain their category
leadership, or they move from brief stardom to dogdom.
Cash cows: cash cows are units with high market share in a slow growing
industry. These units typically generate cash in excess of the amount of cash
needed to maintain the business. They are regarded as staid and boring, in a
mature market, and every corporation would be thrilled to own as many as
possible. They are to be milked continuously with as little investment as
possible, since such investment would be wasted in an industry with low
growth.
Problem child/question marks: question marks are growing rapidly and thus
consume large amounts of cash, but because they have low market shares
they do not generate much cash. The result is large net cash consumption. A
question mark has the potential to gain market share and become a star,
and eventually a cash cow when the market growth slows. If the question
marks does not succeed in becoming the market leader, then after perhaps
years of cash consumption it will degenerate into a dog when the market
growth declines. Question marks must be analyzed carefully in order to
determine whether they are worth the investment required to grow market
share.
Dogs: dogs, or more charitably called pets, are units with low market share
in a mature, slow growing industry. These units typically break even,
generating barely enough cash to maintain the business’s market share.
Though owning a break even unit provides the social benefit of providing
jobs and possible synergies that assist other business units, from an
accounting point of view such a unit is worthless, not generating cash for the
company. They depress a profitable company’s return on assets ratio, used
by many investors to judge how well company is being managed. Dogs, it is
thought, should be sold off.
It is important to remember that stars and problem children products or
services are in the growth stage of the product life cycle. As a particular
industry matures and growth slows, products or services tend to become
either cash cows or dogs.

(Q4) Write a note on any two using suitable examples: (10 Marks)
A) Advertising
B) Public Relations
Ans4:A) Advertising:
Advertising involves communicating a message to a target market through
the most suitable channel that motivates purchase behavior. Advertising
techniques include e tools and print methods. Advertising channels include
media; cinema, television, internet, radio, print, information kiosks, and
billboards: static and digital. Advertising communicates the brand image and
personality to the consumer. Memorable advertisement have used
characters, typology, colors, personalities and music all of which reflect
brand attributes.
B) Public relations:
Public relations, is the practice of managing the flow of information
between an organization and its public. The practice of PR is planned around
the core business activities of an organization. In practice the PR role is a
balancing act of providing good “image” information and managing “bad
news” stories. It involves making sure that all activities carry out by the
organization, its intermediaries, and stakeholders maintain the reputation of
the business. External PR interaction may consist of putting out the right
message about the organization through communication channels such as
the media, television or conferences.

(Q5) Write a note on any two using suitable examples: (10 Marks)
A) Advertising
B) E-Marketing
Ans5:A) Advertising:
Advertising involves communicating a message to a target market through
the most suitable channel that motivates purchase behavior. Advertising
techniques include e tools and print methods. Advertising channels include
media; cinema, television, internet, radio, print, information kiosks, and
billboards: static and digital. Advertising communicates the brand image and
personality to the consumer. Memorable Advertisement have used
characters, typology, colors, personalities and music all of which reflect
brand attributes.
B) E-marketing:
The years from 2000- 2009 have seen an enormous growth of e marketing
encouraged by a rapid revolution in the development of communication
technology. The economy down turn in the year 2008 resulted in marketing
departments of various companies scaling down their marketing activities.
When marketing budgets are tight companies will use the cheapest most
effective form of communication to reach consumer. E marketing can be
very cost effective as packing and distribution costs may be avoided.

(Q6) A) Explain the concept of ‘Branding’. (5 Marks)

B) Write a note on ‘Brand Identity’. (5 Marks)
Ans6: A) The following definition of branding may be taken as a standard:
A name, term, sign, symbol, design or a combination of this, which is usually
used to identify the goods or services of one seller or a group of seller and to
differentiate them from those of competitors.
Further, we discuss of a number of key concept involved in brand
management. Under all of these management concept lie brand value. A
sport organization needs to understand and express the value of its brand
B) Brand identity:
The basic concept of brand identity is achieving same visual and
consumer experience where ever the brand appears.
Brand often identify themselves visually; they are the graphic device that
distinguishes a product or a service. Color and typography are used to
increase visual impact and provide greater recognition to product. For eg.
The nike “swoosh” sign is a very good example as it is a distinct typography
that works alone. The London 2012 logo caused a lot of controversy at its
launch in 2007.
Case study: London 2012 olympic logo:
The wolff olins designed the logo for London Olympic 2012 which was
unveiled in June 2007 as a new brand identity, based on the principle that
the London 2012 being everyone’s games. The emblem was heavily
criticized:
Many commentators have been struggling with each other to find critical
comparisons for the 2012 logo, from funny characters from the Simpsons, to
a deformed swastika or unhappy echo of the MTV logo. An online petition to
change the logo quickly gathered 50,000 signatures before being closed and
the promotional video’s flashing lights triggered epileptic attacks and was
quickly pulled off.
The emblem consists of four sectors representing: access, participation,
stimulations and inspiration. They conclude in the brand vision of everyone’s
Games, the design incorporating London and the Olympics rings. It is the
first time that the logo has incorporated the Olympics and the Paralympics in
one identity, in an attempt to signal the message of social inclusion that
London 2012 seeks in its legacy. Positive commentary on the logo has
praised its contemporary nature.
(Q7) Write a note on any two using suitable examples. (10 Marks)
A) Brand Personality
B) Brand Attribute
Ans7: A) Brand personality
Brand personality refers to the mix of human traits attributed to a brand.
This is often achieved through sponsorship of sports personalities whose
personality offers their brand the human traits characteristics that they
aspire to portray.
Case study: lewis Hamilton and tag heuer:
In October 2008, lewis Hamilton became the youngest formula one world
champion. Tag Heuer who have sponsored lewis since 2003, reaped the
rewards in sales of watches. In a press conference held by TH halfway
through the British grand Pix in July 2008, the director said, ‘there’s no
better story than a rookie who wins big’. TH portrays the brand
characteristics- stylish, cool and daring- attributes to their watches and this
help to reinforce this sleek, expensive brand. Lewis is one of a portfolio of
brand ambassadors used to endorse different Tag Heuer watches. Lewis is
used to help the brand sell the formula one watch too a young audience
seeking similar aspirations.
Brand attribute
Consumers have a choice when purchasing sports clothing. Brand attributes
may cause consumers to select a product and, in some cases, pay aa
premium. For example, a branded football shirt may be 90 percent more
expensive than a supermarket’s own brand shirt.
(Q8) With the help of a suitable example explain what is SWOT
analysis? (10 Marks)
Ans8:SWOT ANALYSIS
A SWOT analysis can help a business to design a strategy that helps
distinguish a business/organization from its competitors. Its helps to uncover
the internal factors . Strengths are the chacteristics of the company and its
products/services; weakness can be uncovered and eliminated by assessing
what the organization does badly in comparison to the competition.
Case study 05 on west Ham United Football Club illustrates how changes in
the external environment can impact on a market plan, which may need to
be revised to respond to change in environment factors.

Strengths Weaknesses

 sponsorship deals with  Internal diputes between

market leading
companies,eg. Arsenal’s
partnership with Emirates
Airlines.
 High capacity stadium allows
good attendance figures:
Manchester United’s Old
Trafford Stadium expanded
to 76,000 seats in 2006.
 Top 3 Premier League
position for last decade, has
strengthened the club
financially.
 Loyal customer base: season
ticket holders.
 Catchy advertising for a
product endorsed by a
player has raised profile of
the football club overseas.
managers and the club’s
board members.
 Late adopter of e-
communication sales
methods has disadvantaged
company in relation to
competitors.
 Club finance tied up due to
poor performing plyers near
the end of a five year
contract.
 High staff turnover: mangers
and or plyers changing
constantly create lack of
team unity.
 Club’s striker has injury
leaving him on the bench for
most of the reason.
 Club has recently been
 demoted in the
 Long- term contracts with Championship and reduces
loyal ‘star’players. income threatens the clubs
survival.

Opportunities
 Potential of new products: high
demand for latest products in
range.
 Manchester city’s home ground
Eastland’s the venue is a
legacy of Commomwealth
Games 2002
 Increases in the market base :
singing of new international
players opens up a market in
the player’s home country.
 Celebrity wife’s high profile
creates interest in club eg.
Chelsea FC player Ashleycole’s
wife Cherly Cole as x factor
mentor.
 Increased finance from sky
sports TV channels due to
promotion of the premier
League and coverage of
games.
Threats
 Negative press for player’bad
behavior off the pitch may
tarnish the brand.
 Competition for the premier
league’ title.
 Price wars factors discounting
and distribution of free tickets
to fill stadium.
 Exclusive TV rights to show
games may reduce attendance
at football matches.
 Downturn in economy, credit
crunch reduces consumer
spend on luxury items.
 Competitors have superior
access to channels of
distribution: club’s own TV
channels e.g. Chelsea TV.
 Player’s international duties
may reduce availability for
home sides’ fixtures.

Case study : West Ham United Football Club

When XL airlines folder in September 2008. It left West Ham United with a
difficult decision regarding its merchandising. Having just launched its 2008
season strip, it would be a relationship disasters to make its fans buy a
newly branded kit at this stage in the season .West Ham took the decision to
suspend all sales of replica shirts and removed all XL branding from West
Ham United platform and players sported an unbranded kit while a new
sponsorship deal was negotiated. In December 2008 west Ham found a new
sponsor SBOBET and a new kit was launched. West Ham United rewarded its
supported with a replacement for the XL branded kit free of charge.

(Q9) Write a note on ‘Market Planning’. (10 Marks)

Ans9: When a sport organization has undertaken an analysis of the market.
It is then possible to set market objects to work towards and provide the
first steps in the development of a market plan. A sport organization’s
market objectives will be based around one or more of the options below:
 Existing products in existing markets.
 New products for existing markets.
 Existing products for new markets.
 New products for new markets.
All objectives set should be SMART (specific, measurable, achievable,
realistic and timed). A sport organization’s marketing plan should be based
on a market analysis that will provide a strategic direction for the
organization. Marketing planning involves analysis of the market, the choice
of marketing activity, and it implementation through marketing campaigns in
order to communicate products and services to target customers.
Part of the marketing analysis is to carry out research to gain an
understanding of the desired target market or customers wants, needs, likes
and dislikes. A marketing oriented sport organization will aim to provide
customer satisfaction as a way of attaining its business objectives. In a
rapidly changing marketing environment, marketing and sales strategies
must change frequently. Consumer needs and demands evolve; new means
of communicating message and information are influenced by the business
environment, including economic changes and rapid development in
technology.
It is essential that an organization can communicate its products or services
in a format that will stimulate the intrinsic motivators within the targeted
customer in order to introduce buying behavior. Intrinsic motivators such as
emotional stimuli may be targeted by communicating messages that appeal
to consumers’ senses and evoke a purchasing response because consumers
are motivated to buy in order to reap the associated benefits.

(Q10) What are the different types of segmentation methods?

Explain any two with a suitable example. (10 Marks):
Ans10: SEGMENTATION METHODS
The different types of segmentation methods are as follows:
Targeting
Having segmented the market, the next step is to determine how many and
which segments to approach. Therefore, targeting involves selecting the
most appropriate marketing communication channels to reach consumers in
specific segments. There are various different types of targeting techniques.
Undifferent targeting
In order to gain the competitive advantage, a product or service is mass
marketed at a lower cost than the competition. The product is usually a low-
end, no frills product which is cheap to produce, has low overheads and can
be distributed to a mass market at a cheaper price than competitors.
Marketing tends to focus on promoting low- cost benefits e.g. a
supermarket’s own brand sportswear.
Differentiated Targeting
Marketing based on differentiation focuses on matching features and benefits
of a range (categories) of a brand’s products and services to attract a range
of customers to the brand. For instance, a company producing sportswear
will produce a range of products for different sports, and these will be
available for different age groups, sexes. Marketing spend is distributed
between the different market segment on a cyclical basis. This might follow
a seasonal approach, e.g. club football strip marketed at the beginning of
the football season in August.
Niche (focus) targeting
Companies with a number of brands or product lines focus marketing spend
on products capable of category leadership e.g. Nintendo’s Wii Fitness is a
new product within a heavily populated market. The Wii USP (Unique Selling
Point) of encouraging people to engage in exercise while playing on the
third-generation computer gaming system has enabled Nintendo to focus
marketing efforts on the Wii fitness range due to heavy attention being
given to health and fitness issues globally. Promotion for this specific
product is aimed at encouraging a niche target market of females who have
not previously been the core market of users within this market to engage
with their products and brand.
Positioning
Products and services may be positioned against competitors offering in
order to establish a competitive advantage. A positioning strategy
determines how companies want customers to think and feel about of a
product or service. Researching the target market is an important part of
determining how to position a product. The opinions and perceptions that
target customers hold regarding a brand must be explored to ensure that
the right image is being portrayed in order to position the product or
services effectively. Successful positioning puts you at the forefront of the
minds of prospective customers.
When positioning a product, it is essential to take into consideration the
products unique selling point, which differentiates it from its competitors.
Once the company has developed a clear positioning strategy, it can
communicate that positioning efficiently through the marketing mix.
Sometimes it is necessary for an organization to reposition itself when the
market develops, for example when competitors enter or exit the market, or
when customer expectations and needs change. For example, lucozade used
to be sold as a product that people consumed when they were exhausted to
help give them energy to feel better. When sales started to decline, it was
repositioned into the new market of sports drinks by utilizing elite athletes to
endorse, advertise and promote the product. Lucozate has since then
diversified by bringing new products; a range of sports energy supplements,
such as gels, into this range.
Perceptual positioning mapping
Perceptual positioning mapping is a technique used by marketers that
visually displays the perceptions of customers or potential customers. The
position of a product, product line, brand or company is displayed on the
map, two dimensions are chosen for the axis; the selection of these will
relate to the perceived or actual strengths of the product or services.

Subject 04:
Introduction to Financial Management in Sports:

(Q1) What are the financial responsibilities of a sports club? (10

Marks)
Ans1:

(Q2) What are the different roles and responsibilities of the finance
director of a sports club with paid staff? (10 Marks)
Ans2: The role of finance director varies depending on the size of the club
whether you have a volunteer or paid work force; the range of activities
offered ; and whether the club is affiliated or not.
Clearly for a club with no paid staff, the role will be much more hands on
than the overseeing role of a finance director with staff. The level of
responsibility is different. For this reason, the information below has been
suppurated into these categories. Choose the relevant checklist to help you
better identify the roles and responsibilities of your finance director:
1. Clubs with no paid staff
2. Club with paid staff
Cash controls  Do you ensure that all cash
that comes into the
organization is collected,
receipted if necessary and
subsequently banked?
 Do you have records that
identify which cash comes
from members, canteen
sales etc and which is from a
sponsor or from fundraising?
 The signatories for cheques
are authorized by the board.
Do you retain receipt and
documentation for funds
expended?
  Is there separation of duties
where possible? E.g. if
possible, the employee who
collects cash should not be
the same person who
subsequently banks the
money.
Financial statements  Are the financial statements
for your organization
prepared and provided to
appropriate members/
directors?
 Do you or someone else in
the organization have the
skills to review and analyze
the financial statements to
identify significant issues?
 Is there a process to review
the accuracy of the book
keeping work?
Budgets and cash flow  Does your organization have
management a budget?
 If a large purchase/
expenditure is going to
occur, have the cash flow
implications o n the club
been considered?
 At year end, the budgeted
result compared with the
actual result?
 Do you have a process for
managing and monitoring
accounts payable and
accounts receivable?
Statutory matters  Are you aware of any rules
and requirements governing
your club in relation to when
you produce financial
statements, what needs to
produced, and who requires/
is entitled to a copy?
 Have you arranged for an
audit for the financial
statements and notified the
 auditor as to when they will
receive the work, and when
it is due?
 Do you understand the
extend of any personal
liability you may have if you
enter into transaction on
behalf of the club which the
club cannot pay for?

(Q3) A) What are ‘Budgets’? (5 Marks)

B) What points need to be considered while preparing a budget? (5
Marks)
Ans3:A) All the organizations should have a budge. The budget is important
for cash flow planning as well as for financial review. Given the seasonality
of more sporting organizations, it is essential that some review is
undertaken to ensure the club can pay its debuts on time.
The budget can be as simple as a page document with month columns
across the top, and expected income and expenses filled in on the
appropriate month. If you have access to a computer, and excel spread
sheet is the most efficient tool for preparing a budget. The sample budget
template is available in our strategic business plan.
B) Consider these points when preparing your budget:
 Is the timing of membership income correct?
Despite membership fees being in a certain month, it may take
another few months for all the fees to be paid.
 When is sponsorship money received?
Some sponsors will pay a set amount each month rather than in a
lump sum.
 Is the dollar value estimated for expenses realistic?
The results prior years may provide a guide, however some expenses
may increase each year.

(Q4) Write a note on ‘Financial accounting in sports organizations’

(10 Marks)
Ans4: Sport in general is an important aspect of culture and the structure of
the society. Any sport organization can be either a profit-making
organization or a nonprofit making organization. Profit making organization
can have a number of structures: sole traders, partnership, limited liability
companies (Ltd) or public listed companies (Plc). These structures are based
on both investment and risk. Accountability for sports managers in profit
making companies is to investors and there is mandatory or compulsory
record keeping in order to pay tax, but this is complicated by the nature of
sport which demands ‘success’ for its teams and competitors. Accountability
in such cases may also be to ‘fans’, participants, employees and other
stakeholders.
Nonprofit making organizations saturate sport. They are usually funded from
a number of sources and sports managers are accountable for ensuring
funding is spent wisely and produces effective results. For charitable trusts
and voluntary organization mandatory or compulsory accounting may also
be necessary in order to ensure fulfillment with the legislation. Small
voluntary organizations may comply with a code of accountability which
allows for the reporting of an annual position to their members.
All organizations report on a minimum of an annual basis, but for profit
making organizations financial information may be given quarterly, biennially
or annually on a non mandatory or non compulsory basis to keep investor
updated about developments.
All sport organizations need to produce financial reports as part of their
annual review and these can be analyzed against key performance indicators
as measurements of organizational performance. In some organizations,
they are not the only measures of performance and there is variance in this
sport industry where fans and spectators want to see wins, medals and titles
that warrant expenditure while investors may be interested in increased
revenues and profit. It is also quite exciting to see the variance in sports like
football where large companies do exist, and many large clubs do not make
any profit.
Case study: football and profit
In the sport of football, in the European football leagues, there is a need for
the football clubs to spend their respective funds strategically. The company
directors have a responsibility only to spend what they can afford and to
protect the stakeholder’s assets. Some European football teams however are
looking at bankruptcy, many financial accountants believe. Some clubs, who
have huge debts, almost in millions, go out of the way to buy players who
cost the club further millions. Accountability for such clubs is however in
winning games and climbing up the league to compete in profitable
competitions. That cannot be accomplished without good players, which cost
a lot of money and these clubs go further into debts.
There is a mixed scenario of industry needs in terms of financial
accountability because of the differing focus between profit and nonprofit
making sport organizations. Financial accountability is not always the
supreme reporting mechanism of a sport organization. Rather the team
performance, number of participants or spectators might be given more
weight. Understanding sport organizations and industry structure clarifies
some of these differences.
(Q5) How is financial accounting done in the no-profit sector in
sports? (10 Marks)
Ans5: All sport organizations have to report on the financial viability of their
operations. The structure and scope of the sport organization will decide the
complexity of the financial information needed to manage the business both
for external stakeholders and for internal audiences. The power each group
holds will identify where sports managers have to focus their accountability
structures.
No- profit sector in sports
The no-profit or not for profit sector of the sport economy includes public
sector organizations charitable or voluntary groups. Sport operations have a
large presence in the not for profit sector and this makes them vulnerable to
the government policy and change.
Not for profit sector sport organization require a very detailed audit of the
management of public money. Public sector sport organizations have often
been termed bureaucratic or practical in their approach to maintaining
financial records. In order to purchase even a small item, three forms may
be needed to audit the chain of command that approved permission for the
expenditure. It is sometimes difficult to accept this, but when dealing with
public money the accounts must show what the purchase, no matter how
small, is legally or legitimately made.
Within no profit making sport organizations, annual reporting and review
often focuses on the results of the team, club or sport, looking at
performance measurements against sports related targets. For example we
may consider any state sport association. The annual review includes team
performances, tournament results and individual achievements. In total, this
report may consist of detailed performance information while only 5-10
pages will relate to financial information about the organization transactions.
This report states that, a separate reporting process will exist to provide
funding authorities with a much more detailed financial review. But, it should
also be kept in mind that funding bodies are not solely interested in financial
reporting. An important part of this report will include the information
showing how many more participants have played the game or entered
competitions compared to the previous year.
Voluntary sport organizations may have different accounting needs
according to their size and may be limited to an income and expenditure
statement for the year, plus a statement of assets. Where organizations are
part of charity, however, accounting became very specialized or detailed. In
requesting charitable status, sport organizations have to go through a tough
applications procedure. There is a need to satisfy the charity commissioner
that they are genuine and that all funds raised go to the charity they are
supporting. Financial reporting of these activities is a specialist function and
organizations will employ specialist auditors to monitor financial
transactions.
(Q6) Distinguish between the private sector sport organizations in
terms of financial accounting. (10 Marks)
Ans6:
Organizational Sole trader partnership Private Public
structure limited limited
company company
Type of One person Two people Large groups A company
ownership but does not or more; of people with limited
preclude two jointly raising coming liability that
people capital. together to has over a
trading in invest in a fixed limit of
this way. company. share capital
and
widespread
of
shareholders
the company
can apply for
those shares
to be traded
on the shock
exchange.
Management Decided by Decided by Board of Although
structure owner. partners; one control; boards of
person may elected directors rum
manage the directors who public
business and report companies,
the other be performance shareholders
a ‘silent to an annual own them.
partner’ general However this
according to meeting. can lead to a
skills and conflict of
knowledge. loyalties as
mangers
pursue
objectives
that help
their own
careers.
Investment Capital from Capital from Investment Investment
owner plus owners plus is divided is divided
long-term long term into ordinary into ordinary
loans. loans. or preference or preference
shares. shares.
Payment Drawings Drawing from Dividend on Dividend on
from business shares. shares.
business against
against original
original capital
capital investment,
investment. by
agreement
between
partners.
Profit division Equally Equally A dividend is A dividend is
among the among the paid to the paid to the
owners, or owners, or shareholders stakeholders
reinvested reinvested but, in but, in
into the into the addition addition
company. company. profits fund profits fund
company company
growth. growth.
Financial Annually to Annually to At least At least
reporting the tax the tax annually to annually to
department department shareholders shareholders
through self through and tax and tax
assessment owners self department. department.
form. assessment
forms.
Risk No No distinction Owners are Loss of
distinction between the not asked to control and
between the partners pay business the share
assets and business debts from price
private assets and their private fluctuations
assets of the other private wealth. If the which
sole trader. possessions. business accompany
If the Collapse of collapses, quotations
business the business the on the stock
collapses the may mean shareholders exchange.
sole trader selling will be
may have to private limited in
sell part of assets, their liability
their private therefore if often as to
assets so one partner as a little as
that the debt invests more a nominal
of the capital than fee;
business can another they however,
be paid. may agree they may
 higher share also lose
of that they their original
are repaid for capital
the investments,
additional the share
risk they value and
have taken. receive no
return on
assets.

(Q7) Write a note on the ‘Income and Expenditure Account’. (10

Marks)
Ans7: For nonprofit making sport organization
Nonprofit making public sector sport organizations and voluntary groups
exist to provide a service to the sport industry. They are not expected to
collect large amounts of income. The income which they collect is mostly
spent to promote the interests of the members, players, spectators and so
on. However it is expected that they do not make a ‘loss’ as this might make
the organization vulnerable. All income is listed and the expenses of the
organization are subtracted to produce an ‘income over expenditure’ result.
this kind of format allows comparisons to be made across year 1,2 and 3 on
the performance of the club in achieving income that overweighs
expenditure, showing where any differences or challenges appear to be
causing difficulties, and hence giving a forecast as to where future increases
in expenditure or income downturns may cause problems. For a small
organization such as this, membership income will be important for smooth
operation. Often members will not want fees to rise, but increases in
expenditure may mean this has to be considered. If small sports clubs can
increase funding streams, from sponsorship or fundraising they can prevent
larger increases in membership fees.
Large public funded organizations will fund very useful to report on what
would happen if income from national governing bodies, or other funding
streams, were to fall in order to plan either to reduce expenditure or to find
alternative sources of income. This is termed as ‘accounts engineering’. It
uses spreadsheets to produce scenarios based on past and future
performance, or if sponsorship or funding streams were withdrawn.
For profit making sport organizations
Trading, profit and loss accounts are the typical accounting frameworks
which are used in typical profit making organizations. Some profit making
organizations have simplified their accounts to and changed their
terminology from trading, profit and loss accounts to ‘income and
expenditure’ accounts. This change in the expression does not change the
core content of the reporting method. Either, the term has an historical,
mandatory reporting purpose in financial accounting or a future forecasting
role in management and project accounting. In mandatory reporting the
detail is reduced to summary headings and is prepared on an annual basis.
In management accounting the record is used to help forecast future
performance and planning.
In a private limited company the accounting record will be somewhat like
that illustration and is used to judge whether the company has made aq
profit or a loss.

(Q8) Write a note on ‘Ratio Analysis’. Give suitable examples on how

it can be used in the sport industry. (10 Marks)
Ans8: The layout of the income and expenditure account allows for
accountability for both ‘operations’ through the determination of operating
profit, as well as the company’s overall performance, which may be affected
by other income or costs not associated with the organization’s main
business. This allows operations managers to understand whether the
company’s financial performance has resulted in its targets and its objectives
are achieved; this will be effectively measured using the tools of ‘Ratio
Analysis’. The main ratio analysis, or financial accountability, applied to the
profit and loss accounts concerns costs, expenses, profits and the return on
equity.
Profit will be measured in terms of growth on the previous year, but also as
a percentage of sales. Three key ratios are used to determine performance
of profit against sales.
1. Profit X 100
Sales

This ratio gives a percentage figure which can be used as a benchmark against competitor
performance, no matter what the size of the sport organization.

2. Costs and expenses will also be measured against sales using similar ratio techniques.
Cost X 100
Sales

This ratio allows for effective accountability regarding the use of materials
in producing sales.
3. Expenses X 100
Sales
This ratio shows how well expenses have been used to produce sales.

(Q9) What is a balance sheet? What is the basic structure of a

balance sheet? (10 Marks)
Ans9: The data set used to account for sales, costs, expenses and profit will
not represent the whole picture for any organization in financial terms
because it does not report on the assets, liabilities and capital held by the
organization. At any moment in time an organization, whether no profit or
profit making, will have a worth that is equivalent to the investment capital.
Capital= assets.
Initially, sports managers may not see the need to understand or know
about the total worth of the company. As long as the athletes win medals, or
teams win the competition, the operations or the sport organization may be
seen as working effectively. However, some aspects of the organization’s
operational performance can only be truly judged if we know that the assets
the business has purchased are being used as well as possible very
expensive to invest.
(Q10) Write a note on ‘Return on Investment’. Give suitable
examples. (10 Marks)
Ans10:

Subject 05:
Research Project: