11-23-2010, 08:32 AM
I have an assignment regarding business combination.. Please help!
Player Association and Mr. X, the CEO of Football Company, ask your help in resolving a salary dispute. Mr. X argues that the Football Company really loses money and, until things turn around, a salary increase is out of the question.
As a result of your inquiry, you discover that Football Company owns 91 percent of the voting stock in Football Stadium, Inc. This venue is specifically designed for football and is where the Football Company play their entire home game schedule. However, Mr. X does not wish to consider the profits of Football Stadium in the negotiations with the players. He claims that ââ¬Åthe stadium is really a separate business entity that was purchased separately from the teamââ¬Â.
Required
1.What advice would you provide the negotiating parties regarding the issue of considering the Owls Stadium income statement in their discussion?
2.What other pertinent information would you need to provide a specific recommendation regarding playersââ¬â¢ salaries?
Player Association and Mr. X, the CEO of Football Company, ask your help in resolving a salary dispute. Mr. X argues that the Football Company really loses money and, until things turn around, a salary increase is out of the question.
As a result of your inquiry, you discover that Football Company owns 91 percent of the voting stock in Football Stadium, Inc. This venue is specifically designed for football and is where the Football Company play their entire home game schedule. However, Mr. X does not wish to consider the profits of Football Stadium in the negotiations with the players. He claims that ââ¬Åthe stadium is really a separate business entity that was purchased separately from the teamââ¬Â.
Required
1.What advice would you provide the negotiating parties regarding the issue of considering the Owls Stadium income statement in their discussion?
2.What other pertinent information would you need to provide a specific recommendation regarding playersââ¬â¢ salaries?
