Forms of Financing: Sports

Forms of Financing: Sports


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Forms of Financing: Sports

Financing is a critical aspect of any activity due to the resources that are required to run various operations. Different types of financing may be used to fund businesses or various activities. The different forms of financing include such as medium-term and short-term financing, debt, equity, asset finance and donations and funding (Berry, 1999; Rigby, 2011). In highlighting the various types of sources for these forms of financing, this paper will consider the sports sector.

Sports have gained its market with the sector developing into a full-fledged business. For instance, Becsky-Nagy, Dékán, Szőke and Bács (2015) explain that sports require facility management, mass communication, tourism, and marketing. Debt involves seeking of finances from external sources in the form of loans from banks or organizations. Sports may also fund their activities through equity. Financing through equity involves using assets or activities of the sports to fund its activities such as ticket revenues and partnerships with organizations. Asset financed involves the use of revenues obtained from a business’s assets to fund its activities. For instance, the sports sector may use such as selling of jerseys and transfer rights.

Berry (1999) explains that short-term financing may be used to fund a business’ activities. Such involve the mode of financing include such as overdrafts that may be given by banks for sports activities. Sports also may use trade credits as sources of short-term financing. The sports sector often receive donations and funds from such as welfare organizations and the government. For instance, Becsky-Nagy, Dékán, Szőke and Bács (2015) accounts for a situation whereby the government invests in sports facilities.




Becsky-Nagy, P., Dékán, T., Szőke, R., & Bács, Z. (2015). The relevance of sports financing. APSTRACT: Applied Studies in Agribusiness and Commerce9(1/2), 19-22.

Berry, A. (1999). Financial accounting: An introduction. London: International Thomson Business.

Rigby, G. (2011). Business Planning For Entrepreneurs: An Instant Guide. Harriman House Limited.

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