| HBS Case Collection
(Revised from original 2009 version)
Kansas City Zephyrs Baseball Club, Inc. 2006
This case centers around a dispute between the owners and the players regarding the profitability of professional baseball teams in connection with the negotiations for a new collective bargaining agreement. The case describes the financial statements of the baseball club Kansas City Zephyrs and discusses several items whose accounting treatment is under dispute between owners and players. Students are asked to resolve these disagreements and determine the team's "true" profitability. The discussion reveals the tensions in performance measurement and illustrates the fundamental issues in accrual accounting. The case is best used as an introductory case in a course on financial reporting or performance measurement.
Keywords: Accrual Accounting;
Measurement and Metrics;
Agreements and Arrangements;