IEC in Sports
(2 pages of text)
A Stockholm-based sports broadcasting firm with five international offices is facing uncertain contract renewals by its current clients from several geographic territories. It must determine the likelihood of profitability if it purchases the global broadcasting rights of the Portuguese Soccer League (Liga Zon Sagres) for the upcoming 2011-2012 season.
The case is suitable in courses that cover simulation. It is an ideal tool to handle probabilistic assumptions that are made on (1) the likelihood of each client renewing or else finding a back-up client and (2) the estimated revenue from current and back-up clients. Using simulation, students construct a distribution of total revenue straddling the 11 uncertain territories, and estimate the risk of losing money if the global broadcasting rights are purchased. The case provides for a lively discussion on risk management, business negotiations, and managerial decision making.
Arts, Entertainment, Sports and Recreation
Thailand, Small, 2011
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