A-Rod: Signing the Best Player in Baseball Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

A-Rod: Signing the Best Player in Baseball Case Solution

The history of the Texas Rangers dated to 1971, when the owner of the Washington Senators received approval to move the team to Arlington, Texas and rename them the Texas Rangers. The team was part of the American League and played in the 4 - team West division. From the team’s inception in Texas in the year 1994, they played in Arlington Stadium, which held 42,000 people after the renovation in the year 1976. In 1994, the team moved into a new 49,200 - seat stadium, The Ballpark at Arlington.

The Rangers played 81 of each season’s 162 games at The Ballpark. The stadium’s cost was $191 million to build and was financed in a public/private partnership between the Rangers and the city of Arlington. $135 million did not came from the issuance of municipal bonds with the remainder coming from the sale and lease of luxury suites, loans guaranteed by the Rangers, and the Owner ship changed hands several times over the years, including an ownership stint by an investor group that included George W. Bush before he became the President. Southwest Sports Group purchased the team in January, 1998 for $250 million. Tom Hicks formed Southwest Sports Group in 1998 as a sports entertainment company for the purpose of holding the Rangers and other sports-related properties.

The holdings of Southwest Sports Group included the Dallas Stars of the National Hockey League, the Rangers, Mesquite Championship Rodeo, and one-half stakes in the Frisco Rough riders Minor League Baseball team and the Center Operating Company, which constructed and operated American Airlines Center, the home of the Stars. Southwest Sports was also a joint venture partner with Fox Sports and Colorado Studios in Lone Star Mobile Productions. Mr. Hicks is also the Chairman and a founding partner of Hicks, Muse, Tate & Furst, a Dallas-based leveraged-buyout firm.
For this reason, the management of Texas Rangers decided to carryout the cost-benefit analysis of the proposal to identify whether the contract with the A.A-Rod Signing the Best player in Baseball Case Solution

Problem statement

The top management of the Texas Rangers is facing a challenge to analyze the decision whether the offer of $252 million to Alex Rodriguez and whether this amount will be financially viable to the Texas Rangers and to see whether the service of A.Rod will give Texas Rangers significant return on the investment and what will be the incremental revenue if Alex Rodriguez becomes ready to join the Texas Rangers team and agrees to play different leagues from the side of Texas Rangers. To analyze the decision we will have to make the cost and benefit analysis for the 10 years of the contract. In this analysis, the incremental revenue and the incremental costs associated with the joining of Alex Rodriguez in the Texas Rangers are calculated for the ten year sand discounted to the present value for the calculation of NPV of the offer.......................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.