Case Study 1: Financial Statements

This case study is designed for you to take what you’ve learned about reading financial statements and apply that to a real-life sport organization. Possible sport and sport-related organizations (including esports) you might consider are included at the bottom of these directions.

You (or your group if you work with a partner) are tasked with creating and submitting a presentation to the management of a sport organization regarding the financial health and performance of the organization. To complete this assignment, you should first access the most recent annual report (i.e., 10-K) for the company from the SEC website (https://www.sec.gov/edgar/search/#/category=custom&forms=10-K). See this video on how to access and use the SEC website. https://memphis.instructure.com/courses/74088/pages/how-to-navigate-a-10-k And this video explains more about what a 10-K is. https://memphis.instructure.com/courses/74088/pages/what-is-a-10-k After accessing the annual report (i.e., 10-K), the sections you will focus on are as follows:

Item 6: Selected Financial Data (Note: This section might say “not applicable” as it is no longer required by the SEC. Some might still have it, some might not. For those that don’t have this section, you can find the financial data usually under Item 8).
Item 7: Management’s Discussion and Analysis of Financial Condition
Item 8: Financial Statements and Supplementary Data (if applicable)
Using each of these sections, your presentation should include the following:

Overview of key trends in the financial data for the company such as:
Over the last three years, are revenues/expenses/profit increasing or decreasing? Why is that the case?
What trends are there with assets and liabilities? Are liabilities increasing or decreasing? Which liabilities and why? Are assets increasing or decreasing? Which assets and why?
What segments generate the most/least revenue? Which geographic areas generate the most/least revenue?
What does the management have to say about the company’s financial condition?
After including the above content, you should then conclude your presentation with one or two opportunities for growth for the company. For example, if the company is GameStop, you might suggest the company pivot to focus on digital/online/e-commerce sales rather than on sales in a traditional brick-and-mortar store. Your growth opportunities should be backed up with support and rationale. It is not enough to suggest the company go a certain direction. Instead, you must indicate why the company should go that direction, what the risks are of going that direction, and what the possible outcomes are.

Format

Your case study should be created with PowerPoint or similar software (e.g., Keynote for Mac). You are not required to include audio with your presentation, but you can if you desire. If you do not include audio, you must write out word-for-word what you would say if you were giving this presentation in front of an audience. You can include this script either in the “Notes” section of each PowerPoint slide or attached as a separate Word document. Presentations without audio or word-for-word scripts are incomplete and will be graded as incomplete.

There is not specific length for this assignment. You want to ensure you are using the 10-K/annual report to provide a thorough analysis of the organization and the five areas for growth/opportunity.

Possible Sport Organizations (ticker symbol in parentheses)

Activision Blizzard, Inc. (ATVI)
Allied Esports Entertainment, Inc. (AESE)
Big 5 Sporting Goods (BGFV)
Brunswick Corporation (BC)
Callaway Golf (ELY)
Churchill Downs Incorporated (CHDN)
Columbia Sportswear Company (COLM)
Deckers Outdoor Corporation (DECK)
Dick’s Sporting Goods (DKS)
Dovor Motorsports (DVD)
Draft Kings (DKNG)
ESPORTS ENTERTAINMENT GROUP, INC. (GMBL)
Foot Locker (FL)
GOOD GAMING, INC. (GMER)
Hibbett Sports, Inc. (HIBB)
Lululemon Athletica (LULU)
Madison Square Garden Entertainment Corp. (MSGE)
Nautilus, Inc. (NLS)
Super League Gaming, Inc. (SLGG)
TAKE TWO INTERACTIVE SOFTWARE INC (TTWO)
Under Armour (UA)
World Wrestling Entertainment (WWE)
ZYNGA INC (ZNGA)