Wednesday, October 7, 2015
This is the second of three sessions where we
differences between an idea and an opportunity. In this session, we
look at the particular challenges of a sports franchise. Quote of the Day:
“To succeed, jump as quickly at opportunities as you do at conclusions.” Benjamin Franklin
on Study Questions.)
- Choose one of the 8 frameworks from Session 2 to answer the following question: What made the Golden State Warriors an attractive opportunity (and not just idea) at the time that Joe Lacob assessed the purchase in 2010?
- Identify the major risks in each of these categories at the time of the case: market, team, product, technology, business model.
- Study the income statement in Exhibit 2. What do you observe about the team and its profitability as a business? How will potential changes to the TV contract and CBA affect the financial performance of the business? Build a projected income statement for the next three years - 2010/11, 2011/12, 2012/13 - based upon the changes discussed in the case.
Recommended ReadingsOnline Assignment - Group A only
on Case Analyses.)
- You are Joe Lacob’s primary advisor in this decision. Do you recommend that he purchase or not purchase the Golden State Warriors? [YES or NO]:
- If you recommend a purchase, what price should Joe offer? Support your recommendation with clear logic for how you determined your price using key metrics from the case and Exhibit 1.
- If you recommend not purchasing the team, please explain why using the risk models from Session 2.