KANSAS CITY ZEPHYRS BASEBALL CLUB: A BASEBALL ACCOUNTING DISPUTE. This case is used to illustrate some basic accounting issues in a. Describes a dispute between the owners of the major league baseball teams and the players’ union about the profitability of the baseball teams. The issue is. Kansas City Zephyrs Baseball Club, Inc. case study. Krishna G. Palepu. Save; Share. Save; Share.

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Palepu and Anthony K. Palepu, and Sarah Gulick. The plan payouts were entirely contingent on achieving very ambitious market value, sales, and EBIT targets over the next ten years. Palepu, and Anthony K. Should shareholders approve or reject the plan? However, since net operating losses are allowed to be carried forward 20 years by the Kahsas, Zephyrs managers may be able to extend the theme of no profit through off-setting future profit with prior year losses with their accounting methods in and Sorry, but copying text is forbidden on this website!

Finance General Management Marketing. Describes a dispute between the owners of the major league baseball teams and the players’ union about the profitability of the baseball teams.

Cite View Details Educators. Cite View Details Related. Palepu and Sarah Mehta.

Kansas City Zephyrs Baseball Club Essay Example for Free

Cite View Details Educators Purchase. Using different baesball techniques resulted in two very different financial statements for the Kansas City Zephyrs Baseball Club. Palepu and Sarah Gulick Keywords: Considering the facts it does not add value to depreciate teams that generally appreciate and therefore should not be included in the financials. The stadium costs would zephyes the same. He has to settle a number of accounting disputes about roster depreciation, signing bonuses, deferred compensation, and stadium costs.


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Kansas City Zephyrs Baseball Club. It was also brought up that some companies put aside this money and others do not.

If you need this or any other sample, we can send it to you via email. Students are asked to resolve these disagreements and determine the team’s “true” profitability. Palepu This case centers around a dispute between the owners and the players regarding the profitability of professional baseball teams in connection with the negotiations for a new collective bargaining agreement.

According to the players there is an appreciation rather than depreciation as the players actually improve their skills as they increase in experience.

Dey, Aiyesha, Krishna G. Cite View Details Educators Related. Accessed December 31, Palepu and Sarah Gulick. Click to learn more https: How to cite this ihc.2006 Choose cite format: Clun players feel that the sign-up bonuses should be amortized over the contract of the players.

We use cookies to give you the best experience possible. The deferred salaries expense should be taken out of basebal, expenses and put on the balance sheet as a liability if there is no separate fund. Your Answer is very helpful for Us Thank you a lot! Since the players that are released have the possibility of getting signed-on with another team who would take over the contract there does not seem to expense the full amount in one period.

Palepu, and Joseph P. Since the sign-up bonus is a cost incurred by the owners in one payment it should be expensed in the year in which it was incurred.

Kansas City Zephyrs Baseball Club, Inc.

The case describes the financial statements of the baseball club Kansas City Zephyrs and discusses several items whose accounting treatment is under dispute between owners and players. How about make it c,ub Business and Environment Business History Entrepreneurship.


Aiyesha DeyKrishna G. The case is best used as an introductory case in a course on financial reporting knc.2006 performance measurement.

There would be no way to arbitrate stadium and broadcast charges based on unique situations and contracts. Leave your email and we will send you an example after 24 hours In reviewing the Kansas City Zephyrs Baseball Club, and hearing arguments from both the ckub and player there have been some interesting findings.

Considering the fact that Kansas City Zephyrs Baseball Club is expensing everything ahead of time it is important to note that they will not have these costs to offset profit from future years. The three causes of disputes are roster depreciation, overstated player salary expense, and related party transactions. Accounting and Management General Management. The discussion reveals the tensions in performance measurement and illustrates the fundamental issues in accrual accounting.

Palepu and Joseph P. If ctiy contact us after hours, we’ll get back to you in 24 hours or less. How about receiving a customized one? Although, both teams kasas to agree on most of the financial statements there seem to be three specific areas that are causing dispute. The issue is important because of the ongoing collective bargaining negotiations.