Research On The Value Assessment Of China’s Intangible Assets Of Commercial Sports Events ——Taking Franchise As An Example

With the improvement of economic level and people’s quality of life,China is in an important historical period of moving from a large sports country to a strong sports country,facing both major opportunities of economic development,social progress and cultural prosperity,and challenges of deepening social transformation intensification and institutional reform.To promote the flourishing development of commercial sports events in China,the approval authority of the events concerned has been gradually decentralized,reflecting the recognition of their industrial status and the consequent increasing commercial value.However,the importance of intangible assets of commercial sports events and their value are not sufficiently recognized in China,and the research on the valuation of intangible assets of commercial sports events is not yet perfect,which directly leads to many problems in the valuation of intangible assets of commercial sports events and seriously hinders the development process of commercial sports events in China.At present,scholars in China have made more mature studies on the classification of intangible assets of commercial sporting events.Considering the variety of intangible assets of commercial sporting events,this paper selects the franchise,one of the important sources of value in commercial sporting events,as the research object,and tries to find the most suitable method for the valuation of the franchise of commercial sporting events based on the review of relevant domestic and foreign literature,to not only play a reference role for the valuation of other intangible assets but also provide a reference for the valuation of commercial sporting events in China This paper not only serves as a reference for other intangible assets valuation but also provides new ideas and methods for the study of intangible assets valuation of commercial sports events in China.First of all,this paper uses the literature analysis method to sort out relevant research on commercial sporting events,commercial sporting event intangible assets,commercial sporting event franchises,and their value assessment,and summarizes the meaning and extension of commercial sporting event franchises based on the existing research results at home and abroad,and also introduces three conventional methods to assess the value of commercial sporting event franchises.The paper also introduces three conventional methods for evaluating the value of commercial sports franchises and summarizes the advantages and shortcomings of the revenue approach,the market approach,and the cost approach.The paper then analyzes the limitations of the traditional excess revenue method,including the subjective nature of future revenue forecasting,the inconsistency between the discount rate and the caliber of franchise revenue,and the lack of rigor in determining the revenue period.Then,the most suitable improvement method for the traditional excess earnings method is found.In the problem of future earnings forecasting,a gray forecasting model is introduced to reduce the error.In the original data processing problem,net-net working capital is used to replace working capital,and the impact of accounts receivable and inventory on free cash flow is reduced.In terms of the basic parameters of the model,the special risk premium of commercial sports event franchises is considered comprehensively,the discount rate is adjusted,and the optimal criteria for selecting the benefit period are summarized according to the characteristics of the franchises.Finally,this paper verifies the feasibility of the improved method through empirical analysis,compares the evaluation results with those evaluated by the traditional benefit method,and concludes that the improved excess benefit method is superior to the traditional method,further verifying the scientificity and reliability of the improved excess benefit method.The results of the empirical analysis found that commercial sports event franchises contain great economic value and can bring high economic returns to enterprises during the revenue period.At the same time,the study found that the franchise value is seriously underestimated in enterprises,and its real value is not maximized,which affects its own earning capacity.Clarifying the value of commercial sports event franchises can enable managers to fully understand their intrinsic value,which can not only improve enterprises’ management ability of commercial sports event franchises and prompt them to further explore the evaluation methods of commercial sports event franchise value,but also ensure the healthy development of the sports event industry and accelerate the pace of China’s sports industry.