Kansas City Zephyrs Baseball Club, Inc. 2006
Posted: 30 Oct 2009
Date Written: September 11, 2009
Abstract
This case centers around a dispute between the owners and the players regarding the profitability of professional baseball teams in connection with the negotiations for a new collective bargaining agreement. The case describes the financial statements of the baseball club Kansas City Zephyrs, and discusses several items whose accounting treatment is under dispute between owners and players. Students are asked to resolve these disagreements and determine the team's true profitability. The discussion reveals the tensions in performance measurement, and illustrates the fundamental issues in accrual accounting. The case is best used as an introductory case in a course on financial reporting or performance measurement.
JEL Classification: M41, A20
Suggested Citation: Suggested Citation