Kansas City Zephyrs
Refer to the Kansas City Zephyrs reading from earlier in the week.
For each of the 5 areas in dispute, answer the following:
Who is right?
Why?
Submit your answers in your own Word document by the end of Week 1.
Bill Ahem was asked to be an arbitrator in a major dispute regarding profitability between the Owner-Player Committee (OPC, the representatives of the owners of the 26 major
League baseball teams in collective bargaining negotiations) and the Professional Baseball Players Association (PBPA, the players' union).
Baseball Accounting Dispute
The players felt they should share in the teams' profits while the owners maintained that most of the teams were actually losing money each year so there would be no profits to be shared with the players.
The OPC were asked to produce financial statements to support their position that most of the Baseball teams were actually losing and not making profits but the PBPA, who had examined the owners' statements, claimed that the owners were hiding profits through a number of accounting tricks and that the statements did not accurately reflect the economic reality. Ahern would need to review both parties’ information and make a decision on the profitability issue. His decision was important because it would affect the ongoing contract negotiations, particularly in the areas of minimum salaries and team contributions to the players' pension fund.
After meeting with the OPC and the PBPA, Ahern's task was to review the Zephyrs' financial statements, hear the owners' and players' arguments, and then reach a decision as to the profitability to focus on the finances of the Kansas City Zephyrs Baseball Club, Inc. Both sides agreed this team’s operations were representative, relatively clean, a simple example to study, not owned by another corporation, and it did not own the stadium the team played in so private financial data would have to be revealed because the corporation was publicly owned.
Who is right?
For each of the 5 areas in dispute, answer the following:
Who is right?
Why?
Submit your answers in your own Word document by the end of Week 1.
Bill Ahem was asked to be an arbitrator in a major dispute regarding profitability between the Owner-Player Committee (OPC, the representatives of the owners of the 26 major
League baseball teams in collective bargaining negotiations) and the Professional Baseball Players Association (PBPA, the players' union).
Baseball Accounting Dispute
The players felt they should share in the teams' profits while the owners maintained that most of the teams were actually losing money each year so there would be no profits to be shared with the players.
The OPC were asked to produce financial statements to support their position that most of the Baseball teams were actually losing and not making profits but the PBPA, who had examined the owners' statements, claimed that the owners were hiding profits through a number of accounting tricks and that the statements did not accurately reflect the economic reality. Ahern would need to review both parties’ information and make a decision on the profitability issue. His decision was important because it would affect the ongoing contract negotiations, particularly in the areas of minimum salaries and team contributions to the players' pension fund.
After meeting with the OPC and the PBPA, Ahern's task was to review the Zephyrs' financial statements, hear the owners' and players' arguments, and then reach a decision as to the profitability to focus on the finances of the Kansas City Zephyrs Baseball Club, Inc. Both sides agreed this team’s operations were representative, relatively clean, a simple example to study, not owned by another corporation, and it did not own the stadium the team played in so private financial data would have to be revealed because the corporation was publicly owned.
Who is right?