Sport Finance and Business
Corrections for Text Book Errors
1409: The world’s first exchange, or bourse, was located in the Belgian town of Brugge. Brugge was the center of commerce and trade in the 13th and 14th centuries as part of the Hanseatic League. The first building constructed for the specific purpose of housing a bourse was in Antwerp in 1406. The Brussels stock exchange was created in 1801 under a decree by Napoleon.
1999: In this year the currencies of the nations taking part in the European Economic Union had their currencies fixed to the Euro. For example, the Belgian Franc was fixed at 40.3399 BF per Euro and the Greek Drachma was fixed at 340.750 Drachmas per Euro. For two years the Euro was the “official” currency although no physical Euros were in circulation – each country still used their own currency. At midnight on January 1, 2001 the Euro currency went into circulation.
Page 42, second column, first paragraph
It is true that the Christian church forbade the lending of money because usury was considered a sin. In this same time period, Muslims were also forbidden from receiving usury yet their civilization flourished.
More background:
The “Dark Ages” refer to a specific period of history in
Europe from the fall of Rome in 476 A.D. until around 1000 A.D. There are many
reasons this period was called the Dark Ages:
- Most of the population was illiterate so few historical
facts from this period have survived except for the writings of Christian monks
and scholars
- It was “Dark” because the great empires of Greece and
Rome had fallen
- Some people even believe there was a geologic event that
caused a darkening of the atmosphere (a volcanic event or a large meteor strike)
Although Europe was experiencing a Dark Ages, this did not apply to the rest of the planet. Muslims in the Middle East, North Africa, and eventually Southern Europe studied and improved on the intellectual works of the ancient Greeks. Elsewhere, multiple civilizations grew and prospered in China, sub-Saharan Africa, India, and the Americas.
Page 51
The ticker symbol for Nike is listed as NIKE. The actual symbol is NKE.
“…no formal paperwork is required to start…” a sole proprietorship. This is incorrect.
Very little formal paperwork is required to start a sole proprietorship. But some is still required.
Page 60
In 1958, when Congress created Subchapter S-Corporations, the maximum number of shareholders was 10. The number of shareholders was increased to 15 (1976), to 25 (1981), to 35 (1982), to 75 (1996), and to 100 (2005).
Page 94, first column, first paragraph
6.1159 should be 6.7275
Formula 6.14 should read:
PV = C{1-[1 / (1+r)t]} / r
In the text, the exponent t is erroneously listed as r
“Internal Rate of Return: 10.7% versus 9.5% weighted average cost of capital.”
This should say: “Internal Rate of Return: 7.5% versus 9.5% weighted average cost of capital.”