5: From Idea to Opportunity II

Date: 
Wednesday, October 7, 2015

Summary:
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.

Handouts