Kansas City Zephyrs Case Study
Maria Alvarez
1369152
The Kansas City Zephyrs
The five areas under dispute between baseball owners and players are: 1. Roster depreciation 2. Current roster salary 3. Amortization of signing bonuses 4. Non roster guaranteed contract expense 5. Stadium operations
Who is right? 1. Roster depreciation: The owners
The owners capitalized and amortized 50% of the purchase price over six years because that is the maximum percentage allowed by the Internal Revenue Code. I would argue that the value of the player roster is somewhat subjective. The players argument, however, is that with experience comes greater value. That is an argument that can be debated.
2. Current Roster Salary: The Players
For
1369152
The Kansas City Zephyrs
The five areas under dispute between baseball owners and players are: 1. Roster depreciation 2. Current roster salary 3. Amortization of signing bonuses 4. Non roster guaranteed contract expense 5. Stadium operations
Who is right? 1. Roster depreciation: The owners
The owners capitalized and amortized 50% of the purchase price over six years because that is the maximum percentage allowed by the Internal Revenue Code. I would argue that the value of the player roster is somewhat subjective. The players argument, however, is that with experience comes greater value. That is an argument that can be debated.
2. Current Roster Salary: The Players
For