Case Notes/Answers
IEC in Sports, By Chu-Chun-Lin Singfat, Josh Burack
Discussion Questions:
1. Describe the uncertainties in this problem.
2. Do EMV calculations (i.e., muliplying probabilities by revenues, etc.) help to address the key
managerial concern in this problem?
3. What is simulation? Why would simulation be helpful in working out this problem?
4. Is it a good idea to carry out best and worst case simulations in this case?
5. In light of the simulation results, what can IEC management do to mitigate the chance of losing
money if it were to renew the Liga Zon Sagres broadcasting rights for the upcoming season?
, W11653
Teaching Note
IEC IN SPORTS
BASIC ISSUE
This case highlights an instance of decision making in the face of uncertainty. Here, a sports broadcasting
firm (IEC in Sports) has to figure out the likelihood of making money in the context of uncertain revenues
in several geographic territories if it purchases the global broadcasting rights of the Portuguese Soccer
League (Liga Zon Sagres) for the upcoming 2011/12 season.
TECHNIQUES AND CONCEPTS
The case is useful in exploring the following techniques and concepts: probability, expected monetary
value, risk management, and simulation. It has been used successfully in both a second-year MBA
elective and a 4th year Honours BA course focussing on Analytics. .
SUGGESTED ASSIGNMENT
Develop a simulation template that will infom management of the likelihood of negative (or positive) net
revenue in the best case and worst case scenarios if IEC in Sports purchases the global broadcasting rights
of the Portuguese Soccer League (Liga Zon Sagres) for the upcoming 2011/12 season.
SUGGESTED DISCUSSION QUESTIONS
1. Describe the uncertainties in this problem.
2. Do EMV calculations (i.e., muliplying probabilities by revenues, etc.) help to address the key
managerial concern in this problem?
3. What is simulation? Why would simulation be helpful in working out this problem?
4. Is it a good idea to carry out best and worst case simulations in this case?
IEC in Sports, By Chu-Chun-Lin Singfat, Josh Burack
Discussion Questions:
1. Describe the uncertainties in this problem.
2. Do EMV calculations (i.e., muliplying probabilities by revenues, etc.) help to address the key
managerial concern in this problem?
3. What is simulation? Why would simulation be helpful in working out this problem?
4. Is it a good idea to carry out best and worst case simulations in this case?
5. In light of the simulation results, what can IEC management do to mitigate the chance of losing
money if it were to renew the Liga Zon Sagres broadcasting rights for the upcoming season?
, W11653
Teaching Note
IEC IN SPORTS
BASIC ISSUE
This case highlights an instance of decision making in the face of uncertainty. Here, a sports broadcasting
firm (IEC in Sports) has to figure out the likelihood of making money in the context of uncertain revenues
in several geographic territories if it purchases the global broadcasting rights of the Portuguese Soccer
League (Liga Zon Sagres) for the upcoming 2011/12 season.
TECHNIQUES AND CONCEPTS
The case is useful in exploring the following techniques and concepts: probability, expected monetary
value, risk management, and simulation. It has been used successfully in both a second-year MBA
elective and a 4th year Honours BA course focussing on Analytics. .
SUGGESTED ASSIGNMENT
Develop a simulation template that will infom management of the likelihood of negative (or positive) net
revenue in the best case and worst case scenarios if IEC in Sports purchases the global broadcasting rights
of the Portuguese Soccer League (Liga Zon Sagres) for the upcoming 2011/12 season.
SUGGESTED DISCUSSION QUESTIONS
1. Describe the uncertainties in this problem.
2. Do EMV calculations (i.e., muliplying probabilities by revenues, etc.) help to address the key
managerial concern in this problem?
3. What is simulation? Why would simulation be helpful in working out this problem?
4. Is it a good idea to carry out best and worst case simulations in this case?
