KANSAS CITY ZEPHYRS BASEBALL CLUB: A BASEBALL ACCOUNTING DISPUTE. This case is used to illustrate some basic accounting issues in a. Describes a dispute between the owners of the major league baseball teams and the players’ union about the profitability of the baseball teams. The issue is. Kansas City Zephyrs Baseball Club, Inc. case study. Krishna G. Palepu. Save; Share. Save; Share.

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How about receiving a customized one? It was also brought up that some companies put cluh this money and others do not.

The plan payouts were entirely contingent on achieving very ambitious market value, sales, and EBIT targets over the next ten years. We use cookies to give you the best experience possible.

Kansas City Zephyrs Baseball Club Essay

Palepu and Joseph P. Finance General Management Marketing. If all the targets were achieved, Tesla would be one of the most valuable companies in the world, and Musk would kansax the highest compensation of any CEO in US corporate history. Proxy advisors ISS and Glass Lewis expressed serious reservations about the plan and urged shareholders to vote against it.

Cite View Details Related. There are three points of disagreement on player salary expenses; sign up bonuses, deferred compensation, and non-roster player salaries should be expensed in the year that it is paid. Palepu and Sarah Gulick. The discussion reveals the tensions in performance measurement and illustrates the fundamental issues in accrual accounting.


Cite View Details Educators.

Although, both teams seem to agree on most of the financial statements there seem to be three specific areas that are causing dispute. The issue is important because of the ongoing collective bargaining negotiations.

If the targets were not achieved, Musk would receive nothing.

Click to learn more https: Since the players that are released have the possibility of getting signed-on with another team who would take over the contract there does not seem to expense the full amount in one period.

The stadium costs would stay the same. He has to settle a number of accounting disputes about roster depreciation, signing bonuses, deferred compensation, and stadium costs.

The three causes of disputes are roster depreciation, overstated player salary expense, and related party transactions. Palepu This case centers around a dispute between the inf.2006 and the players regarding the profitability of professional baseball teams in connection with the negotiations for a new collective bargaining kqnsas.

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Kansas City Zephyrs Baseball Club Case Study by Chiara Lo Cascio on Prezi

Considering the facts it does not add value to depreciate teams that generally appreciate and therefore should not be included in the financials. According to the players there is an appreciation rather than depreciation as the players actually improve their skills as they increase in experience. Dey, Aiyesha, Iansas G.


About the Author Krishna G. The deferred salaries expense should be taken out of current expenses and put on the balance sheet as a liability if there is no separate fund. Cite View Details Educators Related. Hi, I am Sara from Studymoose Hi there, would you like to get such a paper? This clearly shows that the owners are trying to cover as much profit without actual cash outflow through the depreciation expense. Hi there, would you like to get such a paper?

Kansas City Zephyrs Baseball Club, Inc.

The case is best used as an introductory case in a course on financial reporting or performance measurement. Finance Globalization Health Care. Considering the fact that Kansas Zephrs Zephyrs Baseball Club is expensing everything ahead of time it is important to note that they will not have these costs to offset profit from future years.

If there is a separate fund this can be put on the balance sheet as a other asset till they are expensed in the year they become a current payable.