A Program Planning Budgeting System (PPBS) is the recommended budgeting system for team sports (college or professional). PPBS budgeting method primarily focuses on the units of work, the object of work, and the different characters or personnel responsible for the team. Thus, program budgeting highlights the diverse activities and output required from each individual or entity.
A professional sports team can integrate PPBS as it helps to identify resources, assign roles to relevant individuals, and divide the costs based on the available resources. With resources, it can be easier for a team to meet the demands of its staff, including its players, for instance, hotel costs when travelling for international events, food expenses, and daily upkeep charges. Notably, PPBS aids a professional team in developing a plan to meet the above expenses. Assigning roles to the relevant personnel is made possible through PPBS, as evidenced by short-range and long-range objectives in the system (Brown et al., 2021). The advantage of developing short-range goals is to accomplish them quicker, while long-term goals often attract local and international investors aiming for overall profits through meaningful investments. For example, companies like Samsung sponsor teams travelling abroad and, in return, sell their merchandise globally. Proper division of costs is achieved through budget coordination. PPBS is praised for its budget stability since each department or team unit has managers to oversee the daily expenses (Brown et al., 2021). Therefore, it helps to reduce overspending or underspending in addition to the reduction of conflicts among the different teams. Such aspects enable professional teams to incorporate PPBS systems to achieve set goals and objectives.
PPBS system aids in establishing priorities and strategies for a team’s program, which is essential for local teams. A PPBS budget includes measurement criteria, productivity measures, performance objectives, and effective measures. For instance, a summer community tennis camp can benefit from a PPBS budget. Administrative officials for the tennis camp can develop objectives to help players improve their game and play with other professionals. A PPBS budget is considered simple to develop, hence why the officials can allocate resources to purchase new equipment for the young athletes at the camp (Brown et al., 2021). The officials can also allocate resources that can modernize the summer camp, such as training rooms with gym equipment. In essence, such priorities are actualized through the PPBS budget plan (Brown et al., 2021). Local teams like the above summer tennis camp have managers who allocate different roles to relevant personnel whose input is invaluable to achieving set goals and objectives. A team’s program is also aided by a government-funded sports entity that provides a visible and concrete plan to play locally and internationally. Thus, a PPBS plan aids officials in collaborating with government programs to help local teams achieve professional status through proper planning processes.
PPBS aids professional teams in forecasting costs and expenditures for both short-term and long-term goals. A PPBS budget enables staff to get involved in team plans at the onset stages, allowing staff to have significant input. Even though the PPBS may sometimes allow support for irrational objectives, a PPBS budgeting system is detrimental to the spending of the various departments managing a team or teams. Additionally, decision-making is simplified by utilizing a PPBS budgeting system compared to a Zero-Based Budgeting system (ZBB), as budgets are influenced by the rapidly changing market conditions that affect losses and profits.
In conclusion, a Program Planning Budgeting System (PPBS) enables local and professional teams to divide and allocate resources evenly to meet set goals and objectives. However, the PPBS program is time-consuming as all staff and players are allocated tasks compared to other budgeting systems like the ZBB, which are influenced by market conditions. Thus, a PPBS budgeting system is the endorsed form of budgeting for local and professional sports teams.
Reference
Brown, M.T., Rascher, D.A., Nagel, M.S., & McEvoy, C.D. (2021). Financial management in the sports industry (3rd Ed.). Routledge. https://doi.org/10.4324/9780429316746.
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