Question.3176 - =Scenario: Four years ago Penny and Associates, LLC located in NYC, USA has bought a license from Manchester United Football Club to use their intellectual properties (logo, name..etc) in North America. The agreement between the two parties was that MU will own 10% (worth $1,500,000 at that point of time) of Penney and Associates LLC in exchange for the license to use the club's intellectual properties. Penny and Associates invested 15 million dollars in this company. The company opened two combined side-by-side stores and sporty bar-restaurant in Manhattan, NY and another one in San Fran, CA. They named the bar and store as "Red Devils bar & grill" and "Red Devils Store" respectively. They offer the fans of Man U to watch the matches in a sporty atmosphere where you can eat, drink and buy Manchester United's t-shirts, jerseys, and other souvenirs. Unfortunately, the two stores and bars are not doing very well. In fact, the business is not covering its costs, not to mention making some profit. Penny & Associates need extra 5 million dollars to save the company. This 5 million dollars will be used to open 2 new places in Miami, FL and another one in San Diego, CA. The company did a study across the nation and found that soccer is among the top sports Hispanic Americans follow. The company is targeting these communities and also trying to promote soccer among all Americans communities. In order to do that, the company is planning to do some advertising and promote Manchester United in the US. The company is going to bring Manchester United to play a game in the US against LA Galaxy this summer. In order to save their investment the company is offering 40% of its equity for 5 million dollars. Leaving the Man U's 10% not effected and 50% to the original owners. Pre Money evaluation:Ownership Investment Worth of Investment Penny & Associates 90% $15,000,000.00 $15,000,000 Manchester United 10% $0.00 $1,500,000 Total 100% 15,000,000.00 $16,500,000 Post Money evaluation:Ownership Investment Worth of Investment Penny & Associates 50% $15,000,000.00 $9,000,000 Manchester United 10% $0.00 $1,800,000 Investor 40% $5,000,000.00 $7,200,000 Total 100% 20,000,000.00 $18,000,000
Answer Below:
Risk xxxxxx of xxx scenario xxxx management xx traditionally xxxxxx as xxx process xx identifying xxx assessing xxxx and xxxx developing xxxxxxxxxx to xxxxxx it xx is xxxxxxx important xx recognize xxxx the xxxxxx world xx different xxxx traditional xxxxxxxx and xxxxxxxxx business xxxxxxxxxx tools xxx not xxxxxx applicable xxx the xxxxxxx of xxxxxx federations xx all xxxx that xxxxxxxx industries xx Sports xxxxxxx as xx say xx a xxxxxxx one xxxxx lures xxxxxxxx of xxxxxx across xxx globe xxxxxxxxx factors xxxx in xxxxxx this xxxxxxxx a xxxxxxxxxx one xxx besides xxxxx a xxxxxxx one xxxxx also xxxxxx of xxxxxxx which xxxx it xxxxx and xxxx making xx profitless xxxxx are xxxxxxxx companies xxxxx duly xxx on xxxxxx basis xxx example xxx company xxxxxx two xxxxxxxx side-by-side xxxxxx and xxxxxx bar-restaurant xx Manhattan xx and xxxxxxx one xx San xxxx CA xxxx named xxx bar xxx store xx amp xxxx Red xxxxxx bar xxx amp xxxxx amp xxxx and xxx quot xxx Devils xxxxx amp xxxx respectively xxxx offer xxx fans xx Man x to xxxxx the xxxxxxx in x sporty xxxxxxxxxx where xxx can xxx drink xxx buy xxxxxxxxxx United xxx s xxxxxxxx jerseys xxx other xxxxxxxxx The xxxxxxxx would xxxxxxxxxx grow xxxxxxx the xxxxxx industry xx growing xxx there xxx many xxxxx involved xxxx such xxxx of xxxxx Firstly xxxx happens xx a xxx bar xxx restaurant xxxxx up xx the xxxxxx place xxxxxx Surly xxx profit xxxxxx will xxxxx down xx competition xx the xxxxxx influences xxx economic xxxxxx of xxxx industries xx also xxxx into xxx matter xxxx if xxxx restaurants xx bars xxxx to xxxxxxx or xxxx the xxxxxxx of xxx consumers xxxx their xxxxxxxx will xx ruined xxxx hell xxxxxx advertising xxxxxx matters x lot xxx it xxxxxxxx investment xxx a xxxxxxx to xxxxxxxxx themselves xxxx after xxxxx advertised xx the xxxxxxxxx fail xx meet xxxxx profit xxxxxx than xxx entire xxxxxx for xxxx will xx a xxxxxxx nbsp xxxxxxxx REASEARCH xx THE xxxxxxxxxxx craze xxx sports xx s xxxxxx so xxxxxx among xxx people xxxx out xx its xxxxxxxxxx a xxx industry xxxxxx sports xxxxxxxx has xxxxxxx up xxxxxxxx interest xx sports xx gaining xxxxxxxx in xxx recent xxxxx due xx the xxxxx coverage xx the xxxxxxxx events xxx media xxx made xxxxxxxx events xxxxxxx among xxx people xxxxxxx it xx young xx an xxx fell x V xxx internet xxxxxx coverage xxxx serves xxx medium xx make xxxxxxxx events xxxx and xxxx accessible xx the xxxxxx The xxxxxxxx events xxxxxxx famous xxx established xx main xxxxxx entertainment xxx sports xxxxx are xxxxxxx the xxxxxx of x celebrity xxxx is xxx reason xxxx increasing xxx number xx children xxxxx people xx well xx adults xxx attracted xx sports xx a xxxxxxxxxxxx career xxx sports xxxxxxxx has xxxxxxxxx growing xxxxxx of xxxxxx spectators xxx players xxxxxxxxxx in xxxxxxxxxx badminton xxx tennis xxxxxxx there xxx number xx reasons xxx sporting xxxxxxxx is xxxxxxxxxx as xxxxxxx one xxxxxxx being x career xxxxxx it xx now xxxx a xxxxxx of xxxxxxxxx world xx also xxxx the xxxx that xxxx sports xxxxxxx with xxxxxxx people xxx lured xx watch xx We xxxx the xxxxxx examples xx IPL xxxxx different xxxxxxxxx stars xxxx their xxx cricket xxxx In xxxx the xxxxxx stars xxx paid xxxxxx for xx advertisement xxxx any xxxxx stars xxxxxxxxx to xxxxxxxxx field xxxxx are xxxx numbers xx companies xxxxx duly xxx on xxxxxx basis xxx example xxx company xxxxxx two xxxxxxxx side-by-side xxxxxx and xxxxxx bar-restaurant xx Manhattan xx and xxxxxxx one xx San xxxx CA xxxx named xxx bar xxx store xx amp xxxx Red xxxxxx bar xxx amp xxxxx amp xxxx and xxx quot xxx Devils xxxxx amp xxxx respectively xxxx offer xxx fans xx Man x to xxxxx the xxxxxxx in x sporty xxxxxxxxxx where xxx can xxx drink xxx buy xxxxxxxxxx United xxx s xxxxxxxx jerseys xxx other xxxxxxxxx The xxxxxxxx would xxxxxxxxxx grow xxxxxxx the xxxxxx industry xx growing xx wouldprovide xx added xxxxxxxxx to xxx people xxxxx the xxxxxx would xxxx to xxxxx the xxxxxxx in xxxxxx atmosphere xx well xx they xxxxx be xxxx to xxx and xxxxx and xxx buy xxxxxx such xx t- xxxxxx jerseys xxx the xxxxxxxx would xxxx because xxxxxx besides xxxxx a xxxxxx option xx a xxxx of xxxxxxxxxxxxx is xxx more xxxxx considered xx a xxxxx religion xxxxx A xxxxxxxx which xxxx in xxxxx This xxxxxxxx industry xxxx always xxxx in xxxxx passing xxxxxx till xxxx earth xxxxxxxx and xxxxxxxMore Articles From Finance
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