Sports Management Outdoor Fabrics

Question: Discuss about the Sports Management for Outdoor Fabrics. Answer: Introduction The sports club is a very important center for providing leisure and sports activities across different countries and that includes Canada. Sports clubs forms an integral part of the social community therefore, it is necessary that the sports clubs are financed for the services they offer (Hauge Power, 2012). The sports club has certain expenses that it has to bear like administrative expenses, salaries for coaches, expenses related to facility etc. In order to finance this expenses the club arranges fund from revenue of membership fees, fees for admission, fundraising, donation, sponsorship services, commercial activities and subsidies of government (Slack, 2014). All the sports club doesnt have the ability to receive income from all the streams and in most cases it can be seen that expenditure of the club is more than the income. In case of financial difficulty, one of the way sports club arrange finance is by applying government subsidies. The government generally provides subsid y based on subsidiary principle (Parent Chappelet, 2015). It means that the government provides financial support to the club in order to increase the revenue of the club. Government Subsidy for sports The subsidies are useful in sports mainly for two reasons one is to obtain the desired economic outcome from the activity and another objective of providing subsidy is to protect the job and provide growth to the economy (Jayawardena et al., 2013). There are certain peculiarities in the economy of professional sports team. In Canada, the professional teams are not provided support by the government (Kidd, 2013). As a result, the Canadian teams have performed very poorly due to weak currency of the country and high tax burden. For instance, the Vancouver Canucks in the year 1998 had revenue of $54.8 million but there was an anticipated loss of about $20 million (Li, 2014). These losses were attributed to increase in salary by more than 30%. It was found that Canadian sports clubs pay more property taxes than most of the US clubs. In Canada, a sporting club is required to pay provisional and federal income tax, property tax, taxes on amusement in sales of ticket, general sales tax, sur charges, capital taxes, corporate taxes and withholding taxes (DiRenzo, 2016). Economic Impact of Professional Sports Team The study related to the impact of professional sports team in the economy of a country is relatively new. The studies have found that the professional sport team helps the local economy to gather significant amount of economic activity (Hamilton, 2012). The impact of professional sport team in the local economy is studied in two parts one is long term and another is short term. It was found that in the short-term professional sports team gives a boost to the local economy (Leeds Von Allmen 2016). Whereas on analyzing the long term the impact of professional sports team in the economy it was found that they have none or minimum impact on the economy. In Canada, professional sport club is a high level of entertainment provider and gives high profile to the sports industry (Alderson, 2015). The professional sports club has the significant ability to create economic and employment activity in the economy. The sport clubs both professional and semiprofessional contributes significantly to the Canadas economy (Hambleton, 2016). As per the statistics sports club and other related activity has contributed $608 million in the Gross domestic product. It has also created in total 23715 jobs as per the record provided by the government (Bednarik et al., 2013). In addition to the economic activity generated by the sports team there is also significant investment in the infrastructure. This massive investment in infrastructure also positively influences the economy. External Beneficiaries The presence of a professional club in the city generates economic activity that means there are external parties that benefit from the club. The professional game played by the club attracts huge fans as they visit the stadium to watch the match. This activity of commuting fans to the stadium helps the cab drivers and other transport facilities to generate income. The professional sporting club participates in major sporting events and it generates tourism activity that helps the local economy (Slack, 2012). This can be explained with the help of an example in 1991 it was estimated that Toronto Blue jays has generated an estimated amount of $39.4 million for the tourism industry and also helped in creating jobs of 1800 peoples. In another instance for Montreal expos, it can be said 11% of their fans come from outside thus contributing to the growth of local economy. This helps to boost the local hotel industry and restaurants that gains from the influx of visitors for the purpose of sports. The presence of a professional sports club creates a sporting environment of the city. It drives the retail of sports goods and equipment. In case of important sporting events the sale of jersey, banner etc of the professional sports club increases therefore the retailer and manufacturer becomes the beneficiary. The list of beneficiaries that benefits from the presence of a sports club includes commutation providers like cabs, hotels in and around the stadium, restaurants near the stadium, retailers of sports items and manufacturers of the sports items (Kidd 2013). Plan The beneficiary receives the benefits from the presence of the professional sporting club of Toronto Maple Leafs but they do not pay for these benefits. Therefore a tax system is being planned that could tap into this beneficiaries and could provide subsidy from this amount to the club. In the case of sporting events, the traffic is required to be regulated this could give the local authority to collect an additional tax. The local authority could make it mandatory that for going near the stadium the cabs or other vehicles would require a special permission that will involve fees. It is estimated that there will be 5000 vehicles that will require this permission in a match day. If the rate fixed is $50 per vehicle then the estimated collection will be $250000.00 for a day. If there are estimated 50 matches in a year then the estimated additional revenue to the government will be $12500000.00 and this could be used for providing subsidy to the club. The local authority should charge a special tax of 1% during the sporting season from all the hotels and restaurants (Li, 2014). It is estimated that the contribution to the local hotels and restaurants will be $300 million during the sporting season. Therefore, the additional tax that will be collected is $3million. In order to collect tax from retailer of sports items will be difficult so tax should be collected at the time of manufacture from the manufacturer. It is estimated that the total merchandise sold by the club in the year is $50 million. If a tax of 10 percent is collected it will come to $5 million. statement showing collection of estimated tax Particulars Amount Taxes from vehicle $ 125,000,000.00 Special Tax @ 1% $ 3,000,000.00 Merchandise tax $ 5,000,000.00 Total Tax/ subsidy $ 133,000,000.00 Conclusion From the above analysis it have shown that government can collect additional taxes from the beneficiaries so that subsidy could be provide to the sporting club. 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