Chapter 3 Blog- Ownership group for Major League Soccer in Vancouver reconsiders franchise fee

http://www.vancouversun.com/Sports/Ownership+group+Major+League+Soccer+Vancouver+reconsiders+franchise/1023715/story.html


Summary
This article is on the Vancouver Whitecaps attempting to enter Major League Soccer by 2011. Major League Soccer is demanding a huge 40 million dollar transaction fee to allow the Vancouver Whitecaps to join the organization. Six other cities are also negotiating to bring a Major League Soccer team to their city, so the price is expected to rise. The Vancouver Whitecaps have already agreed to pay BC place 350 million dollars to renovate their stadium to build a soccer field. With 350 million dollars secured to the renovations, the Vancouver Whitecaps are not sure they have the money to enter the Major League Soccer Organization.


Connections
I connected this article to the transaction part of the chapter. The 40 million dollar transaction fee which the Vancouver Whitecaps are planning to pay is going to take plenty of thought. The Vancouver Whitecaps need to make sure they have enough money left over from the renovations at BC place. Chapter three stresses that when making a major transaction, the business should take their time to decide whether or not the transaction is going to benefit them. In this case, the Vancouver Whitecaps should decide if they are going to be making more revenue by entering Major League Soccer. The Vancouver Whitecaps should also make sure they will have enough money to make the 40 million dollar transaction. Chapter three also states that a major transaction requires the services of a professional accountant, to check if the GAAPS and the appropriate accounting methods have been followed. A professional accountant will definitely be needed for this particular transaction to make sure everything stays legal.


Personal Reflection
I think that the Vancouver Whitecaps should make the transaction fee to enter the Major League Soccer Organization. I think they should because soccer is a growing sport in Vancouver, and by the Vancouver Whitecaps entering the Major League Soccer they will attract more spectators. People will get to watch superstars like David Beckham, Freddie Edu, and Dwyane De Rosario as they all play for Major League Soccer. These superstars are bound to attract spectators and will definitely boost revenue through ticket sales. I think that the Vancouver Whitecaps will gain more revenue by entering the Major League Soccer, rather than just staying in their low profile league.