Session 8: From Idea to Opportunity III

Date: 
Thursday, January 31, 2019


Summary:
This is the last of three sessions where we discuss the differences between an idea and an opportunity. In this session, we examine the a sports franchise using the models and lessons we have learned so far in E145.

Quote of the Day:
We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses." (Abraham Lincoln)

Study Questions (Policy on Study Questions)

  • Choose one of the frameworks from Session 3 to answer the following question: What made the SF Soldiers an attractive opportunity (and not just idea) at the time that John Jacobs 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)

  • Case: SF Soldiers ... see Files section of Canvas for a copy.

Online Assignment - Group B teams only submit (Policy on Case Analysis)
You are John Jacobs' primary advisor in this decision. Do you recommend that he purchase or not purchase the SF Soldiers? [YES or NO]:

  • If you recommend a purchase, what price should John 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.
Submit your analysis on canvas. Please limit your submission to 2 pages.