M4 - ACTIVITY 3

Physical education, recreation, and sport program administrators must be concerned

with adequate financial management. Many organizations are turning to government,
foundations, the corporate sector, and other external sources for help in meeting their
fiscal needs and budgetary requirements due to a lack of money from traditional
sources such as a school district's general fund or an institution of higher education's
general fund. Other organizations are holding unique fund-raising events, such as raffles
and T-shirt sales, as well as "a-thons" and lotteries, to raise the funds they need to run
quality programs. Management of funds also necessitates understanding of how to
construct and implement budgets, how to establish suitable supply and equipment costs,
and how to use budgeting techniques such as incremental, variable, and zero-base
budgeting. To assure higher accuracy and control of new revenue streams, as well as to
streamline fiscal operations, computerization should be used.

Determining what money are available and how to allocate them is the first step in sport
financial management. For established programs, reviewing previous financial records is
critical, whereas developing a strategy and budget from the ground up for a new
program necessitates collaboration with owners and key stakeholders to appropriately
allocate financial resources. Creating a financial strategy entails the following steps:
Taking current developments in the sport business in which the team or organization
operates into consideration, examining internal vs external restrictions (factors affecting
the organization that have arisen as a result of past decisions) (outside factors that
affect the organization), all expenditures, including venue charges, insurance, equipment
prices, travel, lodging, marketing, promotions, and personnel pay, are broken down,
membership payments, ticket sales, donations, and sales from meals and apparel are all
taken into account when making revenue projections, and organizing financial data into
a dashboard that is simple to view and understand for stakeholders

Making smart decisions that maximize value for businesses is critical to successful sport
finance management. Financial management in the sports business may necessitate
collaboration with different stakeholders throughout an organization in order to make
wise and successful spending decisions.