Towards Accountable Management of Sports in Kenya
Sports Management Module
Training Manual
Contents
Chapter One: Introduction
1
1.1 Background and Overview
1
1.2 Objectives
1
1.3 Use of Training Module
1
Chapter Two: Customizing The Training Session
2
2.1 Introduction
2
Chapter Three: Sample 2 Hours, 30 Minutes Session Programme
3
Chapter Four: Sport Management Module Notes
4
4.1 What is sport Management?
4
4.1.1
Sport Management
4
4.1.2
Components of Sports Management
4
Chapter Five: Strategic Planning
5
5.1 Overview
5
5.2 What is planning?
5
5.3 What are mission statements?
5
5.4 What are organizational objectives?
5
5.5 SWOT
5
5.6 PESTEL
6
Chapter Six: Marketing
7
6.1 Definition
7
6.2 Sport marketing
7
6.3 Reasons for marketing sport
7
Chapter Seven: Sponsorship
8
7.1 Definition
8
7.2 Types of sponsorships
8
7.3 Challenges
8
7.4 How to approach a sponsor
9
7.5 Proposal Writing
9
Chapter Eight: Sport And Public Relations
10
8.1 Basic skills for public relations
10
8.2 Benefits of PR to sport organisation
10
8.3 Crisis communication
10
8.4 Purpose of crisis plan
10
8.5 Key elements of the plan
11
8.6 External communication
11
8.7 Using the plan and dealing with the media
11
8.8 Media and media relations
11
8.9 Types of media coverage
11
Chapter Nine: Events Management
13
9.1 Overview
13
9.1.1 Definition
13
9.1.2 Types of events
13
9.1.3 Event management stages
13
9.1.4 Risk management
14
9.2 Sports Facilities
15
9.2.1 Sports facilities can either be owned or hired.
15
9.2.2 Facilities ownership and management.
15
Chapter Ten: Financial Management
16
10.1 Definition
16
10.2 Objectives of Financial management
16
10.3
17
Elements of Financial Management
10.4 Scope of Financial Management
18
10.5 Routine Functions of Financial Management
19
Chapter Eleven: Sport Entrepreneurship
20
11.1 Define an entrepreneur
20
11.2 Entrepreneurship
20
11.3 Importance of Entrepreneurship
20
11.4 Profile of an Entrepreneur
20
11.5 Sport and entrepreneurship
21
11.6.1 Benefits of a business plan
21
11.6.2 A business plan has seven parts.
21
11.7 Writing a Business Plan
22
11.7.1 Executive Summary
22
11.7.2 Business Description
22
11.7.3 Marketing Plan
22
11.7.4 Organization and Management Plan
22
11.7.5 Financial Plan
22
11.7.6 Risk Management
23
11.7.7 Appendix
23
References
24
Appendix
25
Appendix I: Forms And Assignment
25
Chapter One: Introduction
1.1Background and Overview
‘Towards Accountable Management of Sports in Kenya’ is a program of the Embassy of the Kingdom of
Netherlands, Nairobi, in collaboration with The Centre for Multi-Party Democracy (CMD-Kenya), Strathmore
University (SU) and Sports International (SI).
The Programme focuses on building and developing capacities of Sports Organizations in Kenya by introducing
and training the officials and office bearers on Principles of International Best Practice on Management, Good
Governance and practice of transparency and accountability in sports organizations.
Sports management is one of the thematic areas to be covered in the training that would be conducted through
capacity building workshops. Through the training sessions, it is hoped to strengthen the capacities of sports
organizations in Kenya for effective, efficient, transparent and accountable sports management. It is through
such management that the full potential of sports economically, socially and culturally may be realized in
Kenya. The specialized training in Sports management is to introduce the sports Federations/Associations to
the principles and best practice in management of sports as an industry. The training is expected to help the
sports Federations /associations utilize the acquired skills.The training will cover the various sectors of Sports
Management; Strategic planning, Marketing and Sponsorship, Entrepreneurship, Sports Facilities and Events
planning. In addition the training will focus on Financial Management, Media and Public Relations among
others. This training will form part of a one day training program where the Federation/Association members
will also receive training on Legal Framework and Good Governance as well as Leadership and Corporate
Governance. The training will
Incorporate practical assignments that the trainees will be able to work on after leaving the course and also a
project based course work study schedule for evaluation.
1.2 Objectives
The overall objective of the training on sport management is to introduce the sports federations/Associations
to the principles and best practice in management of sports. Towards this end, this Training Module has three
immediate objectives:
• Provide information and awareness of the principles of management in the management of sports.
• Be able to share experiences and compare them with best practices on sports management.
• Put into practice the learned management skills in the running of the sports federations/
Associations
1.3 Use of Training Module
The module is intended to support capacity building on Sports management. It strongly focuses on the
principles of management in relation to sports.
The module is a tool for trainers who have some background, experience and understanding of principles of
management. It is designed to assist them in preparing and delivering training courses for sports managers
and stakeholders including sportspersons. The objective is to provide an understanding of:
• Principles of sports management
• The gap between current practices against the best practices
The training should be applied and adapted with reference to special needs of trainees. These should be
identified at the start of the process and before training commences from the duly filled Pre-Training Needs
Assessment Form.
1
Chapter Two: Customizing The Training Session
2.1 Introduction
In offering the training, the Trainer should take into account the following:
• The needs and existing knowledge and skills of participants on the laws governing sports
management in Kenya; and
• The need for the session structure to be flexible enough to accommodate participants’ questions,
suggestions and general discussion on legal framework and good governance issues in sports
management which they identify as most relevant to them.
The Trainer needs to spend some time at the beginning of the session identifying the needs and expertise of
the participants and their expectations of the session. This can be done by asking participants to introduce
themselves, state their positions and functions in their sports organizations and their major areas of interest
in sports management.
It is recommended that relevant examples, cases and illustrations are given in the course of the training
for better understanding of issues by trainees. It is therefore important that the trainer is well versed with
stakeholders, associations and events in the sports sector.
Before the training commences, it is important to check and confirm that:
• Seating and desks are sufficient to accommodate participants;
• There is easy access to power points for training equipment/aids; and
• Small groups, if utilized, have basic recording equipment (white boards, etc)
It is recommended that some advance materials should be availed to the participants prior to the training with
information on the objectives, issue areas and timing of the session.
2
Chapter Three: Sample 2 Hours, 30 Minutes Session
Programme
Session: Sports Management Time-Table
No.
Topic/Activity
Start
End
Duration
1.
Welcome and Introduction; 09.00
09.10
10 Min
Session Objectives
2.
Introduction to Sports Management and its
components 09.10 am
9.20 am
10 Min
3.
Strategic Planning
9.20am
9.40 am
20min
4
Health Break
9.40 am
9.50 am
10 Min
5.
Marketing and Sponsorship
9.50 am
10.10 am
20 Min
6
Financial Management
10.10 am
10.30 am
20 Min
7
Events Planning and Facility Management
10.30am 10.50 am
20 min
8.
Public Relations and Media
10.50 am
11.10 am
20 min
9
Entrepreneurship
11.10am
11.20 am
10 min
11.20am
11.30 am
10 Min
5.Conclusion:
• Emerging Issues
• Next Steps
• Assignments
• Evaluation
3
Chapter Four: Sport Management Module Notes
4.1 What is sport Management?
Sport is any activity experience or business enterprise focused on fitness, recreation, athletics or leisure (Pitts,
Fielding &Milter (1994).
4.1.1 Sport Management
Sport management is any combination of skills related to planning, organizing, directing, controlling,
budgeting, leading and evaluating within the context of an organization or department whose primary
product or services is related to sport or physical activity.
4.1.2 Components of Sports Management
Sports management involves strategic planning, marketing, sponsorship, entrepreneurship, events
planning and facilities management, financial management, public relations and media.
4
Chapter Five: Strategic Planning
5.1 Overview
The purpose of planning is to determine
Where you are, where do you want to be, how to get there?
Goal is where you want to go
Strategy how do you get there
To determine how to get there we plan.
5.2 What is planning?
Planning is a management function which establishes goals and objectives and the means by which they are
achieved.
Why Plan
• Planning prepares the organization for change
• Planning reduces organizational conflict. Employees and managers agree on a plan and everybody
knows their job expectations.
• Planning helps to increase work efficiency in organizations by reducing overlapping and wasteful
activities.
• Planning process involves establishing organizational mission statements, goals and objectives.
5.3 What are mission statements?
It is a broad visionary business focus which explains what an organization wants to accomplish and what
distinguishes them from others.
5.4 What are organizational objectives?
They are detailed statements derived from an organization’s mission statement. They should be convertible
into specific plans and provide details for departmental operational plans.
To determine where an organization is, a swot analysis is done.
What is SWOT analysis?
5.5 SWOT
It stands for Strength, Weakness, Opportunities and Threats of an organization.
It is a way of summarizing the current state of an organization and helps to devise a plan for the future.We also
carry out a PESTEL analysis to determine external factors that may affect the association.
5
5.6 PESTEL
It is an analysis of the Political, Economic, Socio-cultural, Technological, Ecological/Ethical and Legal factors
in the external environment of an organization which affects its activities and performance.
•
Political Environment – ideology of party in power e.g. devolved county conflict arising between
locals & transitional government over use of stadia.
• Economic Environment – macro -environment-wider economy in the county
- Micro-individual decisions made by managers
•
Social Cultural Environment – beliefs & differences between members and potential members.
Differences along geographical,cultural, ethical and societal.
• Rugby – Elite
• Athletic –
• Soccer – Mass
• Netball – • Cricket – Asian community
6
•
Technology - it impacts on the ability of sports managers to operate. The use of technology to
improve sport. How has it affected sports in Kenya?
•
Ecological and Ethical Environment – global warming awareness and effect of the sun on the skin.
Waste, noise and other environmental impacts.
•
Legal - regulatory laws and regulations arising from legislators or governing associations – disposal
e.g. regulations an adverts, access by all people including those with disabilities.
Chapter Six: Marketing
6.1 Definition
Marketing – a process through which organisations work in order to meet the needs of customers. It can
also be defined as a management process that identifies, anticipates and implements customers’ needs in an
efficient and customer- friendly manner.
Sport marketing is the anticipation, management and satisfaction of sport consumers wants and needs through
the application of marketing principles and practices. Marketing of sport involves the specific application of
marketing principles and processes to market goods and services directly to sports participants and spectators
or end users.
6.2 Sport marketing
• It’s unique because it is consumed as quickly as it is produced
• It is a perishable product, not accompanied by any guarantee or consumer satisfaction
• Those providing the experience cannot predict the outcome.
Sport marketing implies
• Marketing of sport (your sport) i.e. Marketing of sports products and services directly to the sport
consumer.
• Activities utilizing sport i.e. marketing of other consumer and industrial products or services
through the use of sport. Examples of marketing through sport. Rudisha and kiwi, Tergat and
Johnie Walker.
6.3 Reasons for marketing sport
To establish contact with consumers and organizations that deal with sport. Task
• What are the wants and needs of sports consumers?
• Who are the sport consumers in your organizations?
• How do you market your sport?
• Sponsorship is a form of sport marketing
7
Chapter Seven: Sponsorship
7.1 Definition
Sports sponsorship has been defined as a form of cash or in kind fee, paid to a property in return for access
to the exploitable commercial potential associated with that property (master Alexi Setal 2009). It can also be
defined as a business relationship between a provider of funds, resources or services and sports event which
offers in return some rights and association that may be of commercial advantages. (Howard & Crompton
1995).
For the sponsor
• Association – image
• Gain exposure through advertisements
• Opportunity to market products/ services through sales promotions, in venue promotion.
• In store promotion
• Use of sport sponsorship enables organizations to have a tighter link with a form of sponsorship
7.2 Types of sponsorships
• Officials sponsor
• Team sponsors
• Media sponsors
• Facility sponsor
• Event sponsor
7.3 Challenges
• There are risks attached to sponsorship particularly with a team, or an individual athlete (if they are
involved in scandals) examples.
• Weak specifications of sponsorship goals before signing a contract
• What happens when the career of the individual athlete is over?
•
Conflict between sponsors over same event, e.g. a team sponsored by Nike while individual
members could also be sponsored by other companies like Adidas.
• Congestion – one event having several sponsors
• The glorious uncertainty of sport – there can only be one winner, so all the other Sponsors are
disappointed.
• Interference from sponsors which may be bad for the sport or may improve the sport. e.g. sponsors
may insist on having on injured player on the field to protect their sponsorship.
• Ambush marketing – when non-sponsors attempt to capitalize on the popularity of the event by
pretending to be the official sponsors.
• Lack of return to sponsorship
8
7.4 How to approach a sponsor
• Make a call
• Short introduction
• Is the target group of interest
• May I send a proposal
• Letter and short proposal
• Second phone call: interested in personal presentation?
• Presentation of sponsorship proposal: content and form
• Negotiation techniques to settle the sponsor contract
• Drawing up a sponsor contract
7.5 Proposal Writing
Point to consider
• Inventory of what Association/Federation wants from a sponsor, (money, products, services, knowhow, and network) and which members know and / or could recruit potential sponsor.
• Getting information about the potential sponsor’s sponsorship policy (other sponsored projects)
• Note what the Association can offer the sponsor to achieve its objectives
• Write a letter with a specific suggestions for a presentation
• Sending a proposal with an individualized package
What do the sponsors get?
• Negotiated return
• Advertising panel
• Logo presense on the sport equipment and gear (uniforms)
• Presenting partner of the event
Unexpected return
• Sponsor day: sports clinic for personnel of the sponsor
• Evening reception and networking.
Role play
• How to attract sponsorship for your activities.
• Specify the type of sponsorship you are looking for.
9
Chapter Eight: Sport And Public Relations
Public relations are about reputation- result of what you do, what you say and what others say about you.
Sport public relations is a managerial communication based function which is designed to identify a sport
organizations key publics, evaluate its relationship with publics and foster desirable relationship between sport
organization and those publics.
Who are sports publics?
• Players
• Supporters
• Investors
• Sponsors
• The media
• Other sports clubs
8.1 Basic skills for public relations
• Writing skills
• Public presentations
• Interpersonal skills
• Internet-related competencies
8.2 Benefits of PR to sport organisation
• Enhance community goodwill through social responsibility
• Gain favour from customers
• Increase public awareness
• Increase employee satisfaction
• Image building
• More cost effective compared to other forms of communication
8.3 Crisis communication
Crisis situations seem inevitable in sports. In recent years crisis have challenged sport public relations. Gail
Brown defines a crisis as any event that significantly alters the activities that were going on. Anything that
would stop the normal flow of activities. They are unexpected and disruptive. Crisis affects reputation and
financial standing of an organization. Its impact could be as a result of the crisis itself or from the organizations
response to it or lack of it.
8.4 Purpose of crisis plan
• Ensure that management and staff are in a position to contain and manage a given crisis.
• Information required is provided swiftly and efficiently
• Limit the damage and make positive impressions
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8.5 Key elements of the plan
• Crisis scenario
• Initiation of the plan
• Definitions of key publics
• Internal communication responsibilities
• External communication philosophy
8.6 External communication
• Policies and procedures
• Spokesperson identification
• Message and channel of identification
8.7 Using the plan and dealing with the media
By adhering to crisis communication principles, sport public relations professionals and organizations spokespersons may be prepared to effectively engage the media, perhaps the most difficult aspect of a crisis.
Task
How would you deal with a crisis that may have happened during a sport event that you have organized? A fight
between supporters of two teams, resulting into several injuries and deaths.
8.8 Media and media relations
Define media – communication channels through which news, entertainment, education, data or promotional
messages are disseminated.
It is tools used to store and deliver information or data.
It provides three things (Coakly&Donelly)
• Information about events & people
• Interpretation of what is going on in the world
• Entertainment
8.9 Types of media coverage
• Advertising media
• Broadcasting
• Digital media
• New media/ Social media
• Print media
• Media selection for advertising in sport
• TV advertising
• Radio advertising
• Advertising in print media
• Advertising outside media e.g. in Billboards
11
Strengths and Weakness
MediumStrength
Weaknesses
TV
Reaches wide market
Attention getting
High costs
Lots of noise
Newspapers Flexible
Good coverage of local market
Accepted widely
Highly credible
Short – lived
Radio
Good local acceptability
Low costs
Sound only
Poor attention
Outside media
Flexible
High repetition rate
Low costs
Good position selection
Low message competition
Limited selectivity of public
Media relations programs focus on building relationships with members of the mass media in order to maximize
positive publicity and minimize negative publicity.
Task
What media do you use to publicize events that you hold and why?
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Chapter Nine: Events Management
9.1 Overview
9.1.1 Definition
It refers to all functions related to the planning implementation and evaluation of sports events.
9.1.2Types of events
• Mega events-e.g Olympics,World Cups,Commonwealth games
• Hallmark events e.g Lewa marathon
• Major events e.g World Athletics Championship
• Local events
9.1.3 Event management stages
There are three stages in the event planning, pre-event, event and post event.
• Pre event- now, how, whom, when and where
• Event – planning
• Post event
(a) Pre event planning
1. Idea generation what?
2. Target audience forum
3. Objective why
4. Location where (venue)
5. Budgeting/ financials- where is the money coming from where will it be spend & how much
6. Personnel- where is the team? Hire, train, and supervise people. Who makes the team?
7. PR and Networking- media and communication, opinion leaders create a hype, are people waiting for
the event?
8. Vendor selection & management selecting reliable suppliers/ partners optimising sourcing cost
9. Marketing the event. – advertising is not marketing ,create value for the event
10. Volunteers management
11. Programmes
12. Awards
13. Catering
13
Registration of participants – very important because it’s the first contact with participants.
• Number of participants
• Information to be collected
• Registration fees
• Identification
(b) Event
1. Organizing – get the act together
2. Safety and security – huge audiences are involved hence it is prime
3. Logistics- what is going to come from where?
• Who is going to bring it and when?
4. Control- making sure the guidelines are followed as per plan
5. Lead and direct – empower people and delegate authority and leadership
6. Reporting- tight reporting from people prepares you for trouble shooting
7. Services – meals, travel, accommodation
8. Legalities – rule of the land, appoint experts – ignorance is no excuse
(c) Post event
Evaluation and assessment of effectiveness of the event.
9.1.4 Risk management
Refers to proactive efforts taken by a sport organization to prevent loss and accidents. Loss can be in terms of
finance/ goodwill/ market share/ human life/ image. There should be a risk management plan before any event.
• Security and safety – health & safety issues handling of emergencies, contingency plan- what
might go wrong how can it be prevented, if it occurs what can be done to minimize effect.
Risk Management Plan
• Identify the risks
• Classify the risks
• Select treatment for the risks
• Avoid: identify a risk and avoid it completely
Task
Discuss how you organize a sport event considering these management functions
• Finance/budgeting
• Risk management
• Tournament operations
• Registration
• Volunteer management
• Event marketing
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9.2 Sports Facilities
9.2.1 Sports facilities can either be owned or hired.
(a) Hiring
Most of the Sports Association in Kenya do not own sport facilities and hire. When hiring has to be done
there are several factors that need to be addressed.
(b) Elements
• Offer
• Acceptance
• Consideration
• Legality
• Capacity
(c) Intent and specificity
• Specify what you want specifically and draw a contract.
Contract- General rule – put it in writing, contract provides for worst-case scenario.
(d) Errors in contract
• Misrepresentation
• Undue influence
• Mistake
(e) Breach of contract
• Damages
• Delegation
(f) Breach of contract remedies
• Monetary award.
• Specific performance.
9.2.2 Facilities ownership and management.
When a facility is owned the responsibility of the management staff include; serving tenants’ needs and providing
a clean, safe, and comfortable environment for patrons. Various functions performed by the management team
include security, maintenance & repairs ,cleanup, marketing and sales scheduling and booking operations,
events promotions and finance.
Task
Discuss the factors you consider when hiring sport facilities in terms of
• Standards
• Security
• Rights
• Contract
15
Chapter Ten: Financial Management
10.1 Definition
Financial Management can be defined as: the management of the finances of a business / organization in
order to achieve financial objectives. It is the planning, directing, monitoring, organizing, and controlling of the
monetary resources of an organization (Maheshwari,2011)
Web definitions for financial management states that (Financial Managers) Plan, direct, and coordinate
accounting, investing, banking, insurance, securities, and other financial activities.
10.2 Objectives of Financial management
The main objectives of financial management are:•
Profit maximization: The main objective of financial management is profit maximization. The finance
manager tries to earn maximum profits for the company in the short-term and the long-term. He
cannot guarantee profits in the long term because of business uncertainties. However, a company
can earn maximum profits even in the long-term, if:1.The Finance manager takes proper financial decisions.
2.He uses the finance of the company properly.
16
•
Wealth maximization: Wealth maximization (shareholders’ value maximization) is also a main
objective of financial management. Wealth maximization means to earn maximum wealth for the
shareholders. So, the finance manager tries to give a maximum dividend to the shareholders. He also
tries to increase the market value of the shares. The market value of the shares is directly related to
the performance of the company. Better the performance, higher is the market value of shares and
vice-versa. So, the finance manager must try to maximise shareholder’s value.
•
Proper estimation of total financial requirements: Proper estimation of total financial requirements
is a very important objective of financial management. The finance manager must estimate the total
financial requirements of the company. He must find out how much finance is required to start and
run the company. He must find out the fixed capital and working capital requirements of the company.
His estimation must be correct. If not, there will be shortage or surplus of finance. Estimating the
financial requirements is a very difficult job. The finance manager must consider many factors, such
as the type of technology used by company, number of employees employed, scale of operations,
legal requirements, etc.
•
Proper Mobilisation : Mobilisation (collection) of finance is an important objective of financial
management. After estimating the financial requirements, the finance manager must decide about
the sources of finance. He can collect finance from many sources such as shares, debentures, bank
loans, etc. There must be a proper balance between owned finance and borrowed finance. The
company must borrow money at a low rate of interest.
•
Proper Utilisation of Finance: Proper utilisation of finance is an important objective of financial
management. The finance manager must make optimum utilisation of finance. He must use the
finance profitable. He must not waste the finance of the company. He must not invest the company’s
finance in unprofitable projects. He must not block the company’s finance in inventories. He must
have a short credit period.
•
Maintaining Proper Cash Flow: Maintaining proper cash flow is a short-term objective of financial
management. The company must have a proper cash flow to pay the day-to-day expenses such as
purchase of raw materials, payment of wages and salaries, rent, electricity bills, other utilities etc.
If the company has a good cash flow, it can take advantage of many opportunities such as getting
cash discounts on purchases, large-scale purchasing, giving credit to customers, etc. A healthy cash
flow improves the chances of survival and success of the company.
•
Survival of Company: Survival is the most important objective of financial management. The company
must survive in this competitive business world. The finance manager must be very careful while
making financial decisions. One wrong decision can make the company sick, and it will close down.
•
Creating Reserves: One of the objectives of financial management is to create reserves. The company
must not distribute the full profit as a dividend to the shareholders. It must keep a part of it profit
as reserves. Reserves can be used for future growth and expansion. It can also be used to face
contingencies in the future.
•
Proper Coordination: Financial management must try to have proper coordination between the
finance department and other departments of the company.
•
Create Goodwill: Financial management must try to create goodwill for the company. It must improve
the image and reputation of the company. Goodwill helps the company to survive in the short-term
and succeed in the long-term. It also helps the company during bad times.
•
Increase Efficiency: Financial management also tries to increase the efficiency of all the departments
of the company. Proper distribution of finance to all the departments will increase the efficiency of
the entire company.
•
Financial Discipline: Financial management also tries to create a financial discipline. Financial
discipline means:-
•
1.To invest finance only in productive areas. This will bring high returns (profits) to the
company.
2.To avoid wastage and misuse of finance.
Reduce Cost of Capital: Financial management tries to reduce the cost of capital. That is, it tries to
borrow money at a low rate of interest. The finance manager must plan the capital structure in such
a way that the cost of capital it minimised.
•
Reduce Operating Risks: Financial management also tries to reduce the operating risks. There are
many risks and uncertainties in a business. The finance manager must take steps to reduce these
risks. He must avoid high-risk projects. He must also take proper Insurance.
•
Prepare Capital Structure: Financial management also prepares the capital structure. It decides the
ratio between owned finance and borrowed finance. It brings a proper balance between the different
sources of capital. This balance is necessary for liquidity, economy, flexibility and stability.
10.3Elements of Financial Management
There are three key elements to the process of financial management:
(1) Financial Planning
Management need to ensure that enough funding is available at the right time to meet the needs of the business.
In the short term, funding may be needed to invest in equipment and stocks, pay employees and fund sales
made on credit.
In the medium and long term, funding may be required for significant additions to the productive capacity of the
business or to make acquisitions.
(2) Financial Control
Financial control is a critically important activity to help the business ensure that the business is meeting its
objectives. Financial control addresses questions such as:
• Are assets being used efficiently?
• Are the businesses assets secure?
• Does management act in the best interest of shareholders and in accordance with business rules?
17
(3) Financial Decision-making
The key aspects of financial decision-making relate to investment, financing and dividends:
Investments must be financed in some way – however there are always financing alternatives that can be
considered. For example it is possible to raise finance from selling new shares, borrowing from banks or taking
credit from suppliers
A key financing decision is whether profits earned by the business should be retained rather than distributed
to shareholders via dividends. If dividends are too high, the business may be starved of funding to reinvest in
growing revenues and profits further.
10.4 Scope of Financial Management
Financial management has a wide scope. According to Dr. S. C. Saxena, the scope of financial management
includes the following five ‘A’s.
1. Anticipation: Financial management estimates the financial needs of the company. That is, it finds out
how much finance is required by the company.
2. Acquisition: It collects finance for the company from different sources.
3. Allocation: It uses this collected finance to purchase fixed and current assets for the company.
4. Appropriation: It divides the company’s profits among the shareholders, debenture holders, etc. It
keeps a part of the profits as reserves.
5. Assessment: It also controls all the financial activities of the company. Financial management is
the most important functional area of management. All other functional areas such as production
management, marketing management, personnel management, etc. depend on financial management.
Efficient financial management is required for survival, growth and success of the company or
federation.
Eight executive functions of financial management (FM) are:1. Estimating Capital Requirements: The Company must estimate its capital requirements (needs) very
carefully. This must be done at the promotion stage. The company must estimate its fixed capital
needs and working capital need. If not, the company will become over-capitalized or under-capitalized.
2. Determining Capital Structure: Capital structure is the ratio between owned capital and borrowed
capital. There must be a balance between owned capital and borrowed capital. If the company has too
much owned capital, then the shareholders will get fewer dividends. Whereas, if the company has too
much of borrowed capital, it has to pay a lot of interest. It also has to repay the borrowed capital after
some time. So the finance managers must prepare a balanced capital structure.
3. Estimating Cash Flow: Cash flow refers to the cash which comes in and the cash which goes out of
the business. The cash comes in mostly from sales. The cash goes out for business expenses. So, the
finance manager must estimate the future sales of the business. This is called Sales forecasting. He
also has to estimate the future business expenses.
4. Investment Decisions: The business gets cash, mainly from sales. It also gets cash from other sources.
It gets long-term cash from equity shares, debentures, term loans from financial institutions, etc. It
gets short-term loans from banks, fixed deposits, dealer deposits, etc. The finance manager must
invest the cash properly. Long-term cash must be used for purchasing fixed assets. Short-term cash
must be used as a working capital.
18
5. Allocation of Surplus: Surplus means profits earned by the company. When the company has a surplus,
it has three options, viz.,
•
•
•
It can pay dividend to shareholders.
It can save the surplus. That is, it can have retained earnings.
It can give bonus to the employees.
6. Deciding Additional Finance: Sometimes, a company needs additional finance for modernisation,
expansion, diversification, etc. The finance manager has to decide on following questions.
•
•
•
•
Additional finance
from public, etc.
When the additional finance will be needed?
For how long will this finance be needed?
From which sources to collect this finance?
How to repay this finance?
can be collected from shares, debentures, loans from financial institutions, fixed deposits
1. Negotiating for Additional Finance: The finance manager has to negotiate for additional finance. That
is, he has to speak to many bank managers. He has to persuade and convince them to give loans to
his company. There are two types of loans, viz., short-term loans and long-term loans. It is easy to get
short-term loans from banks. However, it is very difficult to get long-term loans.
1. Checking the Financial Performance: The finance manager has to check the financial performance of
the company. This is a very important finance function. It must be done regularly. This will improve
the financial performance of the company. Investors will invest their money in the company only if the
financial performance is good. The finance manager must compare the financial performance of the
company with the established standards. He must find ways for improving the financial performance
of the company.
10.5 Routine Functions of Financial Management
Six routine functions of financial management (FM) are:1. Supervision of cash receipts and payments.
2. Safeguarding of cash balances.
3. Safeguarding of securities, insurance policies and other valuable papers.
4. Taking proper care of mechanical details of financing.
5. Record keeping and reporting.
6. Credit Management.
19
Chapter Eleven: Sport Entrepreneurship
11.1 Define an entrepreneur
Peter Druker defines an entrepreneur as one who always searches for change, responds to it and exploits it as
an opportunity. Innovation is the basic tool of entrepreneurs, the means by which they exploit change as an
opportunity for a different business or service.
11.2 Entrepreneurship
A sport entrepreneur is a person who organizes, operates and assumes the risk for a sport related business
venture (Borgese A).
Entrepreneurship according to Hisrich and Peters (2002) is the process of creating something new of value by
devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks and
receiving the resulting rewards of monetary and personal satisfaction and independence.
11.3 Importance of Entrepreneurship
• Generation of profits and growth of businesses
• Creates employment
• Creates innovations – new ways of doing things
• New markets
• It spurs economic prosperity and opportunities
11.4 Profile of an Entrepreneur
• Hard working
• Have a drive to achieve
• Goal oriented
• Resilience
• Initiative and responsible
• Creative and innovative
• Self confidence
• Vision
• Independent
• Internal locus of control
• Persistent problem solvers
• Risk takers
• Self-efficacy
• Opportunity oriented
11.5 Sport and Entrepreneurship
• Sports entrepreneurship is a means for growing sports organizations.
• It occurs through innovation, being proactive and risk taking activities.
20
• Sport organizations will evolve through innovations to gain better competitive advantage.
• Changes in sports have necessitated entrepreneurship
• Rapid change of technology such as internet and digital television means sports marketers have to
change the way they advertise through the media (Sweeney 2007).
• Sports marketers have had to reinvent their advertising and marketing strategies (Fulterman 2008)
11.6 Business Plan
A business plan is a document that describes the goals and objectives of the business and clearly shows how
and when they will be achieved.
11.6.1 Benefits of a business plan
• It is a financial tool that provides information if one wants to obtain a loan.
• It enables potential entrepreneurs to assess the viability of their business opportunities on paper.
• Forces entrepreneurs to establish written goals and objectives for the proposed business
• A business plan tests ideas on paper
• It indicates the owners ability and commitment
• A business plan is a blueprint or guideline.
11.6.2 A business plan has seven parts.
• Executive Summary
• Business Description
• Marketing Plan
• Organization and Management Plan
• Production/Operation Plan
• Financial Plan
• Risk Management
11.7 Writing a Business Plan
11.7.1 Executive Summary
It contains a summary of important points in every chapter. It should be one and half to two pages.
11.7.2 Business Description
It contains the background of the owner, business name, business location and address, form of ownership,
type of business product and services, justification of opportunity, industry. It also has the goals of business/
objectives, strategy and plan.
11.7.3 Marketing Plan
It contains the following,
• customer,
• market share,
• competition,
• methods of promotion,
• pricing strategy
• sales tactics
• distribution strategy.
21
11.7.4 Organization and Management Plan
Its components include
• Management team
• Description of the managers
• Purchasing manager
• Other personnel
• Recruitment, training and promotion
• Remuneration and incentives
• Production process
• Production affecting operations
11.7.5 Financial Plan
The plan comprises of;
• Pre operational plan
• Pro-forma balance sheet
• Working capital
• Cash flow projection
• Pro-forma income statement
• Break even analysis
• Desired financing
• Capitalization
• Profitability ratios
11.7.6 Risk Management
Indicate the potential risk of the business and describe what might happen to the business if these risks
become a reality. Some risk could arise from
• Economy
• Political
• Ecological
• Social-cultural
• Economical
• Legal
• Industry
• Financial
11.7.7Appendix
This should consist of support document/back up material. It could include:
• Map
• Questionnaire
• Certificate of business registration
• Bank loan forms.
• Curriculum vitae
22
References
Beech, J. & Chadwick,S.(2007). The marketing of sport.Prentice Hall.
Club/Association Management program: Financial Management.Australian Sports Commission.www.
ausportgov.au/club.
Davis, K.A. (1994). Sport management successful private sector Business strategies.Brown and Benchmark.
Lagae,W. (2003). ). Sports sponsorship and marketing communications. A European perspective. Prentice Hall.
Nteere, K.K (2012). Entrepreneurship A global perspective. First Edition, Nairobi: Kenhill consultants
Masteralexis, L.P Barr, C.A, &Hums M.(2009). Principles and Practice of Sport Management, Fourth Edition [on
Amazon.com. *
Stoldt, C.G., Dittmore, S.W & Branvold.S.E (2006). Sport public relations managing organizational communication.
Human Kinetics.
Watt.D.C (2004) Sports management and Administration. Second Edition Routledge Taylor and Francis group.
http://www.businessdictionary.com/definition/financial-management.html#ixzz2WSRBTsJi
http://kalyan-city.blogspot.com/2011/09/objectives-of-financial-management.html
www.state.sd.us/dol/lmic/wagesoccupationaldescriptionsSOCord…
23
i
Marketing
Strategic planning
1.Defination
Sport management
State reasons
for marketing
and the target
population
Illustrate how
marketing is
done.
2.
3.
4. To who?
5. How do we
market?
Define
marketing.
1.
By the end of the session
trainees should be able
to:
3. state objectives for
their organization
At the end of the session,
the trainees should be
able to: 1.Define planning
2.Explain reasons for
planning
2.state the components
of sports management
At the end of the session,
the trainees should be
able to: 1.Define sports
management
OBJECTIVES
3.What is to be
marketed
2. Why market.
1.Defining marketing
4.Organizational
objectives
3. Mission
statements
2. Reasons for
planning.
1.Defining planning
2.Components of
sports management
SUB-TOPICS
TOPICS
Answering
questions
-Group activities
-Asking
questions
-Sharing
Experiences
-observing practical
demonstrations
-presentations
-Answering
questions
Discussions
Group activities
-Oral questions
-Discussion
-observing practical
demonstrations
Explanations
-Report
-Practical
Demonstration
-asking
questions.
Sharing
Experiences
-presentations
Answering
questions
-Discussion
-Group activities
-Oral questions
Discussion
Oral questions
EVALUATION
-Explaining
-Explaining
Discussion
TRAINEE
ACTIVITIES
-Discussion
METHODOLOGY
20mins
Be able to draw a
marketing plan for the
organization
Mid-term plan
3months
Be able to draw a
strategic plan for their
federation.
Be able to implement
sport management
components
10mins
20mins
LONG TERM
EXPECTATIONS
TIME TO
BE TAKEN
-SWOT analysis
plan
-Template for a
marketing plan.
Page5-6
Page 4
Page 3
RESOURCES
ii
-presentations
Answering
questions
Discussions
1.Define financial
management
1.Definition
2. Objectives
Financial management
5.Routine function
4.Scope
3.Elements
Oral questions
Discussion
Explanations
Be able to:
-1. Definition of
terms
-2. Planning
procedure
-3. Factors to
consider when
planning
4. facility
management and
hiring
Group activities.
2. state the planning
process of an event
4. state the routine
functions of financial
management.
3. Explain the source
of funding for their
Association.
2. Outline the objectives
of financial management.
4.explain how to manage
a sports facility and the
hiring process
Group activities.
Discussions
1. Define Events planning.
3. Discuss factors to
be considered when
planning an event.
Explanations
Be able to:
-Discussion
Reporting
Sharing
Experiences
Answering
questions
Discussion and
writing
Written tasks
-observing practical
demonstrations
Written tasks
-observing practical
demonstrations
-presentations
-Oral questions
-observing practical
demonstrations
-presentations
-Oral questions
Events planning and
facility management
Approach sponsors
3.Illustrate how to
2. Identify forms of
sports sponsorships.
Answering
questions
-Role play
1. Explain what is sports
sponsorship and its
goals.
Sharing
Experiences
Discussion
Explaining
Learners will be able to
1.Define sports
sponsorship
2. Goals and Target
groups.
3. Forms of sports
sponsorships.
4.How to approach
sponsors
Sponsorship
20mins
20mins
5mins
20mins
Be able to show
their projected
income sources and
expenditure
Be able to show
evidence of planning
for an event through
minutes, Budget,
post event analysis
document
Be able to
Write to potential
sponsors.
Page 15
Hand-out
Page 11
Manual for event
planning.
Page 6
iii
1. Definition of terms
2.. Basic skills for
Sport PR
3..Benefits of PR to
the organization
4.Crisis
communication
5. Identifying the Key
Publics
6. Types of media
use in sports.
1.Definition of
entrepreneur and,
Entrepreneurship
2. Importance of
Entrepreneurship
3.Profile of an
entrepreneur
4.Entreprenuership
and sport
organizations
5.Business plan
Public Relations and
media
Entrepreneurship
4. State how a business
plan is done.
3.Identify the
characteristics of an
entrepreneur
2. Explain importance of
Entrepreneurship
1. Define Entrepreneur,
Entrepreneurship.
By the end of the session
trainees should be able
to:
5.Show how they can
deal with a sport related
crisis.
4. Identify types of media
use in sports
3. Explain the benefits of
PR to an organization.
2. State the basic skills
for PR.
Trainees will be able to:
1.define PR and media
Sharing
Experiences
-observing practical
demonstrations
-presentations
Answering
questions
-Discussion
-Group activities
Oral questions
Discussion
-Written tasks
-observing practical
demonstrations
Explaining
2. How do sport
organizations utilize
media?
1. What is the
importance of public
relations to a sport
organization?
Sharing
Experiences
-presentations
Answering
questions
Discussions
Group activities.
Oral questions
Discussion
Explanations
20mins
20mins
Be able to make
a business plan
for project to be
undertaken by the
organization.
Be able to show
evidence of media
usage.
Be able to show
evidence of identifying
the Key Publics,
Page 20
Page 8
Appendix
Appendix I: Forms and Assignment
Pre-Training Needs Assessment Form
The purpose of this needs’ assessment is twofold:
• Obtain an impression of the current level of knowledge, skills and motivation of Trainees regarding
the Sports Management practices of sports organizations in Kenya.
• To identify learning needs of the targeted trainee group in order to better tailor the ongoing training
and address those needs.
1. Name of your Sports Organization/Association/Club):
______________________________________________________________________________
2. What position do you hold in your organization/association/club?
______________________________________________________________________________
3. Your Gender
 Female  Male
4. Current level of familiarity with the legal framework and good governance of sports organizations
in Kenya
a) With which of the following existing legal instruments providing the legal framework and good
governance of sports organizations do you consider yourself familiar with and to what extent?
Very Somewhat Not
The Constitution
  
The Societies Act
  
The Sports Act
  
24
5. Which of the following issues related to legal framework and good governance of sports
organizations do you deal with and how often?
Often Sometimes Never
Elections
  
Filing Returns with Registrar
  
Registration of Members
  
Maintenance of register of members
  
Dispute resolution
  
Day to Day Management
  
Communication to members
  
Other issues (please specify)
  
___________________________
6.Do you consider that you apply constitutional national values and principles related to operations
and management of sports organizations in yourdaily work?
 Always  Often  Sometimes  Seldom  Never
7.
Have you ever had any formal training on legal framework and good governance of sports
organizations before? If yes, pleasespecify which training, organized by whom, and when it took
place.
 No
 Yes, ___________________________ organized by ___________ in ________
8.
If so, was this sufficient?
 Yes  No, I would like additional training in the following areas
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
25
9. What factors would influence your ability to implement new competencies in your dailywork, after
you would have learned more on legal framework and good governance of sports organizations (tick
all thatapply)?
 Availability of financial resources. Please specify for what exactly:
 Technical support from someone who can coach me while implementing my newcompetencies
 Support from supervisor including approval to do things differently
 Support from colleagues
 Other factors (please specify):
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
10. Any other comments?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Please feel free to provide any other comments, suggestions, critique, ideas:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
26
Trainer’s Session Self Evaluation Form
Trainer’s Sessional Self-Evaluation (Appraisal) Sheet
Programme:­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­__________________________________________________________________
Venue: __________________________________________Date:________________________
Time/ From______________________________to___________________________________
Topic Area: ___________________________________________________________________
Objectives:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
While being as objective as possible, tick appropriately the Objective(s) Achievement Status below, and briefly
state the reasons in the space provided.
Fully achieved__________________________________________________________________
Partly achieved_________________________________________________________________
Not fully achieved at all _________________________________________________________
Reasons for the status of your delivery (If you need extra space, use additional papers)
Signature: ________________________________ Date_____________________________
Full Names: ______________________________ ID/PPNo: ________________________
Designation_________________________________________________________________
27
Trainee’s Session Evaluation Form
Trainee’s Session Evaluation Questionnaire
Programme:­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­__________________________________________________________________
Venue: __________________________________________Date:________________________
Time/ From______________________________to__________________________________
How did you understand the Topic/Sub-Topic(s) covered during the session? Please tick appropriately:
Fully___________Partly_____________ Not At All___________
List areas you easily learnt.
List areas you found hard to learn
Tick reasons as to why the areas were hard to learn
a) Poor communications and delivery? _________________________________________
b) Areas being too technical? ___________________________________________________
c) Other reasons
1. Explain how you will apply the skills and knowledge you have learnt during this session.
2. Suggest additional areas relevant to the topic/sub-topic to be including in the training in the future
sessions
3. Give recommendations on improvement of delivery of this topic and or its sub-topics
Signature: ________________________________ Date_____________________________
Full Names: ______________________________ ID/PPNo: ________________________
28
Designation_________________________________________________________________
Session Plan Form
Session/Lesson Plan
Programme:­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­__________________________________________________________________
Venue: __________________________________________Date:________________________
Time/ From______________________________to__________________________________
Topic/Subject Area: __________________________________________________________
Objectives:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Introduction: (5 min) Sample questions for assessing the knowledge the trainees might have on the topic and
sub-topics
Presentation: (allocated time) List the main points/examples for explanations and demonstrations/
illustrations
Trainee Activities: (allocated time) State or describe the Practical exercises, demonstrations, group work,
energizers, icebreakers
Conclusion: (allocated time) Evaluation
29
Quarterly Programme Evaluation Form
Quarterly Project Evaluation Report
Programme Title: _____________________________________________________________
Period of Implementation: From_______________________To_____________________
Programme Component(s) ___________________________________________________
________________________________________________________________________________
Target Beneficiaries___________________________________________________________
Objectives____________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
Milestones
AccomplishmentsIndicators
1.1.
2.2.
3.3.
Pending Task(s)
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Factors for or against the against the Programme Implementation
Factors
Contributing to the attainment
of the Project Objectives
Limiting/Hindering the attainment
of the Project Objectives i.e. challenges,
explain how they addressed
Internal1.1.
2.2.
3.3.
External1.1.
2.2.
3.
3.
30
Impacts made
______________________________________________________________________________
______________________________________________________________________________
Lessons learnt
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Best Practices Developed
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Recommendations
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Narratives on Next Quarters Brief Plan and carrying out the Pending Tasks during this Quarter. State
estimated time to complete the Pending Task(s)
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Signature: ________________________________ Date_____________________________
Full Names: ______________________________ ID/PPNo: ________________________
Designation_________________________________________________________________
Signature: ________________________________ Date_____________________________
Full Names: ______________________________ ID/PPNo: ________________________
Designation_________________________________________________________________
Signature: ________________________________ Date_____________________________
Full Names: ______________________________ ID/PPNo: ________________________
Designation_________________________________________________________________
31
Final Programme Evaluation Form
Final Project Report
Programme Title: _____________________________________________________________
Period of Implementation: From_______________________To_____________________
Programme Component(s) ___________________________________________________
________________________________________________________________________________
Target Beneficiaries___________________________________________________________
Objectives____________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
1. Introduction
Background of the Project, Necessity of initiating and carrying out the project, Summary of the objectives
2. Accomplishments
Explain the extent of the successes made during the Project Implementation
Narrate comparisons and contrasts across the quarter’s periods of the Project
3. Impacts
Are there permanent positive changes that being felt, seen by the target beneficiaries and stakeholders,
indelible mark?
4. Challenges
Explain internal and external problems encountered in the implementation of the Project and how they
were addressed
5. Lessons Learnt
Did you acquire new experiences on new approaches, perspectives during the Project?
Explain
6. Conclusion
State overall view on the worthiness and significance of the Project
32
Recommendations
Give suggestions that can be applied in similar projects in future
NB. Where appropriate include tables, pie charts, and graphs
Signature: ________________________________ Date_____________________________
Full Names: ______________________________ ID/PPNo: ________________________
Designation_________________________________________________________________
Signature: ________________________________ Date_____________________________
Full Names: ______________________________ ID/PPNo: ________________________
Designation_________________________________________________________________
Signature: ________________________________ Date_____________________________
Full Names: ______________________________ ID/PPNo: ________________________
Designation_________________________________________________________________
Addendum
Please annex
•
Expenditure Report with accompanying receipts, vouchers, invoices, procurements records
•
Photographs of activities, trophies presentations, sports equipment being used in respective venues.
NB: Submit your report and all the above annexes under a signed cover letter
33
Certificate of Completion of Training
Certificate Of Completion Of Training
PROGRAMME TITLE ____________________________________________________________________________________________
This is to certify that ___________________________________________________________________________________________
participated in the capacity building training under the Programme and has fully fulfilled the tasks assigned to her/
him as a ___________________________________________________________ (designation) and therefore has satisfied the
organizations/institutions partnering in the above cited project from _______________________to____________________
_______________________________ (dates) in_______________________________________________ in the Republic of Kenya.
Signed this______________________________________ day of ______________________________________ 2013 on behalf of
________________________________
CMD-Kenya
34
________________________________ _______________________________
Sports International
Strathmore University
Assignment for Implementation by Trainees
Assignment will be collected as will be communicated by the Programme Secretariat
Assignment
1. Draw a strategic plan for your federation/association. Mid-term plan,(3months)
2. Draw a marketing plan for your organization.
3. Write a proposal for sponsorship for an event your Association/federation plans to hold.
4. Prepare a plan for an event that you have had or are planning to have.
5. Prepare a one year budget for your association/federation.
6. Prepare a report to show how a crisis in your association was handled and how media was involved.
7. Write a business plan for a project you intend to start to fund an income generating activity for your
association/Federation.
35