Sporting Financial Models

What are Sporting Financial Models?

Sporting Financial Models are any Financial Models relating to sport.

What are Financial Models?

Financial models are data representations of a company’s past financial decisions and their resulting outcomes, specifically, their expenses and earnings. The data displayed can be understood as a concise summary of these decisions and their financial outcomes, laid out clearly on a spreadsheet so it can be easily interpretated and manipulated to assist in the company’s future financial decision making. By looking at the financial outcomes of past actions, financial models predict the impact of future actions and guide the company to make decisions that will most benefit the future profits of the company based on these predictions.

Different types of Financial Models:

Three Statement Models: They allow you to forecast your Company's profit and loss account, balance sheet and cash flow statement.

Discounted Cash Flow Models: A valuation model which uses future cash flow predictions to estimate investment return potential by discounting these projections to a present value approximation and using this to assess the attractiveness of the investment.

Leveraged Buyout Model: This model shows what happens when a private equity firm or private investors acquire a company using a combination of equity and debt, and then sells it in 3-5 years.

Merger and Acquisitions Model: Consists of an excel model which assists the user to assess the financial viability of the resulting proforma merger of 2 companies and their synergies.

What are the benefits of using Sporting Financial Models?

Financial Models allow any business, sports related or not, to clearly see which expenses are bringing about financial success and which ones aren’t. Using this information, companies can make better financial decisions in the future.

Examples of Sporting Financial Models

N.T. Any sport related business stands as an example: - Sports Bar
- Physiotherapy Clinic
- Gym
- Football Club
- Trampoline Park - Sports Equipment Shop
- Bike Shop - Golf Driving Range

For more on Financial Models:

What is Financial Modelling

What are Financial Models

Types of Financial Models with explanations of each

Pros and Cons of Financial Modelling