5: From Idea to Opportunity II

Wednesday, October 7, 2015

This is the second of three sessions where we discuss the 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

Study Questions (Policy 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.

Required Readings (Policy on Required Readings.)

Recommended Readings

Online Assignment - Group A only submits (Policy 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.