The purpose of evaluating emerging sport business trends revolves around predicting the impact they could have within the industry as a whole. For this assignment, assume you have been tasked with conducting financial market research for a group of private equity investors focusing on entrepreneurial ventures in professional sport. You will need to research a current trend from the sport business/marketing industry and identify a start-up business which fits a certain criteria in this trend. Please note that you should focus on this key trend’s size, direction, and trajectory over the next 5-10 years. Your first assignment focuses on creating a proposal for funding of this start-up business and allocating financial resources to obtain the highest possible return over the long run.
Next, please respond to the following questions:
1) Discuss in detail the benefits and potential risks of investing in this sport business start-up.
2) What would be some of the difficulties that can be encountered when trying to project the future profitability of this sport business start-up?
3) What forecasting strategies would you utilize to analyze potential areas of risk and/or opportunity for this sport business start-up?
Note: your response needs to be between 1-2 pages in length.