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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The players feel that the sign-up bonuses should be amortized over the contract of the players. The only Way to keep these expenses would to be to carry high player turnover on the teams which is not beneficial in an operational standpoint. Should shareholders approve or reject the plan?

Kansas City Zephyrs Baseball Club Case Study by Chiara Lo Cascio on Prezi

It was also brought up that some companies put aside this money and others do not. Palepu and Sarah Gulick. Cite View Details Related. Proxy advisors ISS and Glass Lewis expressed serious reservations about clyb plan and urged shareholders to vote against it. Palepu, and Joseph P.

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.

A consultant is brought in to decide whether a representative team, the Kansas City Zephyrs, is making or losing money.


Describes a dispute between the owners of the major league baseball teams and the players’ union about the profitability of the baseball teams. In reviewing the Kansas City Zephyrs Baseball Club, and hearing arguments from both the owners and player there have been some interesting findings. Considering the facts it does not add value to depreciate teams that generally appreciate fity therefore should not be included in the financials.

Kansas City Zephyrs Baseball Club Essay

He cty to settle a number of accounting disputes about roster depreciation, signing bonuses, deferred compensation, and stadium costs. Using different accounting techniques resulted in two very different financial statements for the Kansas City Zephyrs Baseball Club.

Finance General Management Marketing. Finance Globalization Health Care. Accounting and Management General Management. How to cite this page Choose cite format: Cite View Details Educators.

This seems inconsistent with their prior argument to have the financials match cash flow as much as possible with an argument against depreciation. Leave your email and we will send you an example after 24 hours How about receiving a customized one?

Click to learn more https: If you need this or any dity sample, we can send it to you via email. The stadium costs would stay the same. Palepu, and Sarah Gulick. Palepu, and Anthony K. According to the players there is an appreciation rather than depreciation as the players actually improve their skills as they increase in experience.

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. Palepu and Joseph P. Your Answer is very jnc.2006 for Us Thank you a lot! Palepu This case centers around a dispute between the owners and the players regarding the profitability of professional baseball teams in connection with ic.2006 negotiations for a new collective bargaining agreement.

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Kansas City Zephyrs Baseball Club.

Palepu and Sarah Gulick Keywords: Business and Environment Business History Entrepreneurship. The three causes of disputes are roster depreciation, overstated player salary expense, and related party transactions. Palepu and Anthony K.

Kansas City Zephyrs Baseball Club Essay Example for Free

How about make it original? The issue is important because of the ongoing collective bargaining negotiations. As kansaz result it seems more based on opinion than hard fact. There are three points of disagreement on player salary expenses; sign up bonuses, deferred compensation, and non-roster player salaries should be expensed in the kansss that it is paid.

About the Author Krishna G. Accessed December 31, Sorry, but copying text is forbidden on this website! If the targets were not achieved, Musk would receive nothing.