Miami Dolphins Business Financial Plan

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Miami Dolphins Short and Long Term Salary Cap Strategy

Malik J. Fuller

Old Dominion University

Miami Dolphins Short and Long Term Salary Cap Strategy

No matter the organization or profession in sports every one of them develop or already have developed a short and long term financial plan. These plans are put in place to propel their organization in a positive direction in both the near and distant future. Short term planning focuses on characteristics of the company in the present and near future to develop strategies to improve them. The time frame is usually less than two years. It also requires specific research, making it necessary that individuals meet specific goals. In addition close observation and scrutiny of internal variables such as cash flow and debt-related issues are key points of short term planning.

As talked about in previous lectures some key aspects of this planning are : How to effectively understand and make decisions based on working capital, net working capital, current ratio, net  working capital, current ratio, acid ration , and the cash budget. Helpful examples of short term planning and solutions are employee’s attitudes and skill, product quality or equipment condition are good examples of this planning. They can easily be fixed by employee training course and equipment servicing. Short term solutions are stepping stools to the ultimate solution in the long term.

Long term planning, at this point companies want to find a solution to the problem(s) once and for all and to reach their comprehensive target. This type of planning reacts to the environment of that organization in its political, social and economic environment and develops strategies for altering and influencing its place in the situation to complete the long term goals. Focusing more towards the future, allowing executives to be creative because of the uncertainties that come with long term planning.  “While also examining major capital expenditures such as purchasing equipment and facilities, and implements policies and procedures that shape the company's profile to match top management's ideas.(Markgraf)” The emphasis on external variables such as industry trends and technological advancements are far greater when compared to long term. Long term planning is the backbone for developing the proper documentation necessary to obtain and secure capital support.  These two plans complement each other when short term is successful, long term builds off that success and preserves that to ensure future success, accomplishments and progress.

NFL has always peaked my interest so I chose the Miami Dolphins who will be well over the salary cap this year and years to follow as well. For this organization I will design both a short and long-term financial planning strategy. The salary cap which is an agreement that places a restriction on the amount of money a team can spend on players and their salaries. It can be per player limit or a whole team and sometimes rarely. The NFL salary cap for this past year was $143,280,000 the active contracts the Dolphins have alone exceed this amount with $160,324,653; In the end their total amount is around $163 million nearly $20 million over. Now the NFL will surely raise the salary cap next year but the Dolphins will still be over thus creating a salary issue.