Session 8: From Idea to Opportunity III

Thursday, January 31, 2019

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.