SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For The Plan Year Ended DECEMBER 31, 1998
Commission File No. 1-13426
A. The Sports Authority 401(k) Savings and Profit Sharing Plan
B. The Sports Authority, Inc.
3383 N. State Road 7
Ft. Lauderdale, Florida 33319
(954) 735-1701
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, The Sports
Authority, Inc., as plan administrator, has duly caused this Annual Report to be
signed by the undersigned thereunto duly authorized.
THE SPORTS AUTHORITY, INC.
Date: June 25, 1999 By: /S/ ANTHONY F. CRUDELE
-------------------------------
Anthony F. Crudele
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
<PAGE>
THE SPORTS AUTHORITY 401(K) SAVINGS
AND PROFIT SHARING PLAN
INDEX TO FORM 11-K
PAGE NUMBER
-----------
Report of Independent Certified Public Accountants 4-5
Statement of Net Assets Available for Benefits at December 31, 1998 6
Statement of Net Assets Available for Benefits with Fund Information
at December 31, 1997 7
Statement of Changes in Net Assets Available for Benefits
for the year ended December 31, 1998 8
Notes to Financial Statements 9-14
Line 27(a) - Schedule of Assets Held For Investment Purposes -
December 31, 1998 15
Line 27(d) - Schedule of Reportable Transactions for the year
ended December 31, 1998 16-17
Index to Exhibits 18
3
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Participants and Administrator
of The Sports Authority 401(k) Savings
and Profit Sharing Plan
We have audited the accompanying statement of net assets available for benefits
of The Sports Authority 401(k) Savings and Profit Sharing Plan as of December
31, 1998, and the related statement of changes in net assets available for
benefits for the year then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of The Sports Authority 401(k)
Savings and Profit Sharing Plan as of December 31, 1998, and the changes in its
net assets available for benefits for the year then ended, in conformity with
generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998, and reportable
transactions for the year then ended, are presented for purposes of additional
analysis and are not a required part of the financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental schedules are the responsibility of
management. The Fund Information in the statement of net assets available for
benefits and the statement of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
of each fund. The supplemental schedules and Fund Information have been
subjected to the auditing procedures applied in our audit of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
/s/ ERNST & YOUNG LLP
Miami, Florida
June 25, 1999
4
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Participants and Administrator
of The Sports Authority 401(k) Savings
and Profit Sharing Plan
In our opinion, the accompanying statement of net assets available for benefits
with fund information presents fairly, in all material respects, the net assets
available for benefits of The Sports Authority 401(k) Savings and Profit Sharing
Plan (the "Plan") at December 31, 1997 in conformity with generally accepted
accounting principles. This financial statement is the responsibility of the
plan's management; our responsibility is to express an opinion on this financial
statement based on our audit. We conducted our audits of this statement in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statement is free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statement, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for the opinion expressed
above.
We have not audited the financial statements of The Sports Authority 401(k)
Savings and Profit Sharing Plan for any period subsequent to December 31, 1997.
PricewaterhouseCoopers LLP
Fort Lauderdale, Florida
June 24, 1998
5
<PAGE>
<TABLE>
<CAPTION>
THE SPORTS AUTHORITY 401(K) SAVINGS AND PROFIT SHARING PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1998
--------------------------------------------------------------------------------------------------------------
SMALL THE SPORTS
MANAGED GROWTH INTERNATIONAL CAP AUTHORITY
INCOME BALANCED EQUITY EQUITY EQUITY COMMON STOCK PARTICIPANT
FUND FUND FUND FUND FUND FUND LOANS OTHER TOTAL
----------- ----------- ---------- -------- -------- ----------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at
fair value:
Short-term
Investments $ 4,809 $ 65 $ 87 $ 7 $ 6 $ 2,451 $ -- $ 348 $ 7,773
Mutual Funds 3,303,448 4,616,454 6,693,960 92,849 429,720 -- -- -- 15,136,431
Common Stock -- -- -- -- -- 1,917,090 -- -- 1,917,090
Participant Loans -- -- -- -- -- -- 983,887 -- 983,887
----------- ----------- ---------- -------- -------- ----------- -------- -------- -----------
Total Investments 3,308,257 4,616,519 6,694,047 92,856 429,726 1,919,541 983,887 348 18,045,181
Receivables:
Contributions
from Plan
Participants 61,294 95,616 127,864 9,233 25,213 58,076 -- -- 377,296
Contributions
from
Employer 25,325 35,958 48,951 3,650 10,124 813,087 -- -- 937,095
Other Receivables
(Payables) (13,802) (7,798) 1,935 3,984 18,801 (10,653) -- -- (7,533)
----------- ----------- ---------- -------- -------- ----------- -------- -------- -----------
Total Receivables 72,817 123,776 178,750 16,867 54,138 860,510 -- -- 1,306,858
----------- ----------- ---------- -------- -------- ----------- -------- -------- -----------
Total Assets 3,381,074 4,740,295 6,872,797 109,723 483,864 2,780,051 983,887 348 19,352,039
----------- ----------- ---------- -------- -------- ----------- -------- -------- -----------
LIABILITIES
Refund of Excess
Contributions -- -- -- -- -- -- -- 37,264 37,264
----------- ----------- ---------- -------- -------- ----------- -------- -------- -----------
Net Assets Available
for Benefits $ 3,381,074 $ 4,740,295 $6,872,797 $109,723 $483,864 $ 2,780,051 $983,887 $(36,916) $19,314,775
=========== =========== ========== ======== ======== =========== ======== ======== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements
6
<PAGE>
<TABLE>
<CAPTION>
THE SPORTS AUTHORITY 401(k) SAVINGS AND PROFIT SHARING PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1997
--------------------------------------------------------------------------------------------------------
THE SPORTS KMART
AUTHORITY CORPORATION
MANAGED GROWTH BALANCED COMMON COMMON
INCOME EQUITY EQUITY STOCK STOCK PARTICIPANT
FUND FUND FUND FUND FUND LOANS OTHER TOTAL
---------- ---------- ---------- ---------- -------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ 64 $ 107 $ 71 $ 118 $ 11 $ -- $ 9,911 $ 10,282
Investments, at fair value
The Sports Authority
Common Stock -- -- -- 3,297,510* -- -- -- 3,297,510
Kmart Corporation
Common Stock -- -- -- -- 317,159 -- -- 317,159
Short-term Investments 2,269 2,115 3,157 3,742 998 -- -- 12,281
Managed Income Fund 2,901,641* -- -- -- -- -- -- 2,901,641
Growth Equity Fund -- 4,557,381* -- -- -- -- -- 4,557,381
Balanced Equity Fund -- -- 3,715,082* -- -- -- -- 3,715,082
Participant Loans -- -- -- -- -- 615,463 -- 615,463
---------- ---------- ---------- ---------- -------- -------- ----------- -----------
Total Investments 2,903,910 4,559,496 3,718,239 3,301,252 318,157 615,463 -- 15,416,517
---------- ---------- ---------- ---------- -------- -------- ----------- -----------
Receivables:
Contributions from
Plan Participants 50,523 89,082 73,217 63,666 -- -- -- 276,488
Contributions from
Employer 22,167 36,317 28,897 778,174 -- -- -- 865,555
Other Receivables
(Payables) 3,450 6,316 6,069 276 -- -- (6,594) 9,517
---------- ---------- ---------- ---------- -------- -------- ----------- -----------
Total Receivables 76,140 131,715 108,183 842,116 -- -- (6,594) 1,151,560
---------- ---------- ---------- ---------- -------- -------- ----------- -----------
Total Assets 2,980,114 4,691,318 3,826,493 4,143,486 318,168 615,463 3,317 16,578,359
---------- ---------- ---------- ---------- -------- -------- ----------- -----------
LIABILITIES
Operating Payables -- -- -- -- -- -- -- --
---------- ---------- ---------- ---------- -------- -------- ----------- -----------
Net Assets Available
for Benefits $2,980,114 $4,691,318 $3,826,493 $4,143,486 $318,168 $615,463 $ 3,317 $16,578,359
========== ========== ========== ========== ======== ======== =========== ===========
</TABLE>
*Investment represents 5% or more of net assets available for benefits
The accompanying notes are an integral part of these financial statements
7
<PAGE>
<TABLE>
<CAPTION>
THE SPORTS AUTHORITY 401(K) SAVINGS AND PROFIT SHARING PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1998
-------------------------------------------------------------------------------
SMALL
MANAGED GROWTH INTERNATIONAL CAP
INCOME BALANCED EQUITY EQUITY EQUITY
FUND FUND FUND FUND FUND
----------- ----------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C>
ADDITIONS
Investment Income:
Dividend and Interest Income $ 1,010 $ 120,563 $ 155,969 $ 10,121 $ 2,794
Net Appreciation (Depreciation)
in Fair Value of Investments 195,008 343,855 974,322 (11,303) (12,831)
Contributions:
Contributions from Plan
Participants 694,533 1,030,043 1,370,193 58,412 217,824
Contributions from
Employer 276,125 395,292 518,098 19,264 65,983
Other Receivables (Payables) (17,252) (13,868) (4,379) 3,984 18,800
----------- ----------- ----------- --------- ---------
Total Additions 1,149,424 1,875,885 3,014,203 80,478 292,570
DEDUCTIONS
Participant Withdrawals 571,801 668,673 1,034,073 5,178 26,739
Administrative Fees 8,425 7 682 -- --
----------- ----------- ----------- --------- ---------
Total Deductions 580,226 668,680 1,034,755 5,178 26,739
Net Increase (Decrease) prior to
Interfund Transfers 569,198 1,207,205 1,979,448 75,300 265,831
Interfund Transfers (168,238) (293,403) 202,031 34,423 218,033
Net Assets Available for Benefits
at Beginning of Year 2,980,114 3,826,493 4,691,318 -- --
----------- ----------- ----------- --------- ---------
Net Assets Available for Benefits
at End of Year $ 3,381,074 $ 4,740,295 $ 6,872,797 $ 109,723 $ 483,864
=========== =========== =========== ========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE SPORTS AUTHORITY 401(K) SAVINGS AND PROFIT SHARING PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS--(CONTINUED)
YEAR ENDED DECEMBER 31, 1998
-----------------------------------------------------------------------------
THE SPORTS KMART
AUTHORITY CORPORATION
OMMON STOCK COMMON STOCK PARTICIPANT
FUND FUND LOANS OTHER TOTAL
----------- --------- --------- -------- ------------
<S> <C> <C> <C> <C> <C>
ADDITIONS
Investment Income:
Dividend and Interest Income $ 1,916 $ 203 $ -- $ 348 $ 292,924
Net Appreciation (Depreciation)
in Fair Value of Investments (2,771,681) 113,737 -- -- (1,168,893)
Contributions:
Contributions from Plan
Participants 818,984 -- -- 11,294 4,201,283
Contributions from
Employer 1,023,984 -- -- -- 2,298,746
Other Receivables (Payables) (10,931) -- -- (32,449) (56,095)
----------- --------- --------- -------- ------------
Total Additions (937,728) 113,940 -- (20,807) 5,567,965
DEDUCTIONS
Participant Withdrawals 405,533 49,544 60,894 -- 2,822,435
Administrative Fees -- -- -- -- 9,114
----------- --------- --------- -------- ------------
Total Deductions 405,533 49,544 60,894 -- 2,831,549
Net Increase (Decrease) prior to
Interfund Transfers (1,343,261) 64,396 (60,894) (20,807) 2,736,416
Interfund Transfers (20,174) (382,564) 429,318 (19,426) --
Net Assets Available for Benefits
at Beginning of Year 4,143,486 318,168 615,463 3,317 16,578,359
----------- --------- --------- -------- ------------
Net Assets Available for Benefits
at End of Year $ 2,780,051 $ -- $ 983,887 $(36,916) $ 19,314,775
=========== ========= ========= ======== ============
</TABLE>
The accompanying notes are an integral part of these financial statements
8
<PAGE>
THE SPORTS AUTHORITY 401(K) SAVINGS
AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF ACCOUNTING POLICIES
The accompanying financial statements of The Sports Authority 401(k) Savings and
Profit Sharing Plan (the "Plan") are prepared on the accrual basis of
accounting.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
RECLASSIFICATIONS
Certain prior year information has been reclassified to conform with the current
year presentation.
INVESTMENT VALUATION AND INCOME RECOGNITION
Plan investments are stated at fair value. The Sports Authority Common Stock
Fund and Kmart Corporation Common Stock Fund are valued at their quoted market
prices. The shares of registered investment companies are valued at quoted
market prices, which represent the net asset values of shares held by the Plan
at year-end. Participant loans receivable are valued at their outstanding
balances which approximate fair value.
9
<PAGE>
The following table presents the fair value of investments with those
representing 5% or more of the Plan's assets being separately identified at
December 31, 1998:
<TABLE>
<CAPTION>
1998
-----------
<S> <C>
Short-term investments $ 7,773
Mutual funds:
American Express Trust Company - Income Fund I 3,303,448
AIM Balanced Fund 4,616,454
Davis New York Venture Fund 6,693,960
American Mutual Fund, Inc. --
American Century Twentieth-Growth Fund --
Other 522,569
-----------
15,136,431
-----------
Common stock:
The Sports Authority Inc. 1,917,090
Other --
-----------
1,917,090
-----------
Participant loans 983,887
-----------
$18,045,181
===========
</TABLE>
PLAN EXPENSES
Expenses of administering the Plan may be paid by either the Company or from the
funds, except for brokerage fees, transfer taxes and other expenses incident to
the operation of a fund which are charged against that fund. For the year ended
December 31, 1998, the Company paid all recordkeeper and trustee fees, except
for the fees associated with the Managed Income Fund, which were paid from fund
assets.
NOTE 2 - PLAN DESCRIPTION
GENERAL
The following description of the Plan provides only general information.
Participants should refer to the Plan document for a more complete description
of the Plan's provisions.
The Plan is a voluntary, defined contribution plan, which commenced December 1,
1994. Employees are eligible to participate in the Plan on the first day of the
month following attainment of age 21 and performance of 1,000 hours of service
within a twelve month period. Employees that were participants in the Kmart
Corporation Employee Savings Plan (the "Kmart Plan") on November 30, 1994 are
eligible as of December 1, 1994. Employees as of December
10
<PAGE>
1, 1994, that were not yet eligible under the Kmart Plan, received credit under
the Plan for service hours earned under the Kmart Plan. The Plan is subject to
the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
CONTRIBUTIONS AND VESTING
Except as may be limited by applicable Internal Revenue Code regulations, a
participant may elect before-tax or after-tax contributions to the Plan through
payroll deductions ranging from 1% to 16% of compensation. For any amount the
participant contributes up to 6% of compensation, the Company will contribute an
amount equal to 50% thereof. All participants are automatically vested in the
Company's matching contributions to the Plan.
Participants may elect to have their contributions invested in all funds except
the Kmart Corporation Common Stock Fund, which contributions were suspended upon
creation of the Plan in December 1994. Effective April 1, 1998 remaining account
balances invested in the Kmart Corporation Common Stock Fund were transferred to
the other six funds based on the participant's choice. The participant's
allocation to each fund must be either 10% or an exact multiple of 10%.
Effective as of the first day of the following month, a participant may elect to
change the amount or form of contributions made to the Plan. The participant may
change the percentage allocated to each fund on the existing value as well as
future contributions. The participant is also able to change the amount of
future contributions made to the Plan.
A participant may elect to discontinue before-tax or after-tax contributions
immediately with proper notification. A participant, after previously suspending
contributions, may resume contributions without penalty. A participant is
permitted to withdraw all or a part of his before-tax contributions only after
the withdrawal of any after-tax contributions and either the participant (i) has
attained the age of 59 1/2 or (ii) has met the hardship rules as defined in the
Plan. In the event of such a withdrawal, all employee contributions and employer
matching contributions will be suspended for six months. A participant may elect
to withdraw all or a part of his after-tax contributions at any time. A
proportionate amount of earnings will be distributed which are taxable and may
be subject to a 10% early withdrawal penalty.
11
<PAGE>
A participant may elect to request a loan of his employee contributions. The
loan is subject to certain conditions including a minimum loan of $1,000 and a
maximum loan not to exceed the lesser of $50,000 or 50% of the participant's
vested balance. No more than one loan may be outstanding to any participant at
any time. The term of any loan shall range from one year to five years for loans
not for the purpose of purchasing a primary residence. Participant loans bear
interest at the prime rate.
The Plan also includes a Profit Sharing portion, whereby each participant will
receive employer contributions equal to at least one percent of his eligible
compensation for each year. The profit sharing contribution to the Plan for the
year ended December 31, 1998 was $792,252.
Profit Sharing contributions are invested in The Sports Authority Common Stock
Fund until a participant is 100% vested. A participant's vesting in the Profit
Sharing contributions requires completion of five years of vesting service. One
year of vesting service is earned for each calendar year in which an employee
has 1,000 or more hours of service. Fully vested participants may direct or
transfer their contributions to the various investment funds. Forfeitures of
assets in the Profit Sharing portion of the Plan are used to reduce future
profit sharing contributions. Forfeitures for the Plan year ended December 31,
1998 were $33,681.
PAYMENT OF BENEFITS UPON TERMINATION
Participation in the Plan automatically terminates when a participant is no
longer an employee. Upon termination, the participant's account balance is
distributed if the vested value of the participant's account is $5,000 or less.
If the vested amount exceeds $5,000 participation may continue or the
participant may request payment. During continuation of participation after
employment terminates, no additional employee or employer contributions, loans
or partial withdrawals are permitted. Upon termination of participation, a full
distribution is made of the participant's account. Withdrawals and distributions
are paid in cash, except where the participant elects to take the distribution
in stock to the extent that the participant's account consists of shares of
Company Common Stock.
PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions and to terminate the Plan
subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100 percent vested in their accounts.
12
<PAGE>
NOTE 3 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets per the financial statements to
the Form 5500:
<TABLE>
<CAPTION>
AS OF DECEMBER 31,
----------------------------
1998 1997
------------ ------------
<S> <C> <C>
Net assets available for benefits
per the financial statements $ 19,314,775 $ 16,578,359
Benefits approved but unpaid (184,358) (371,570)
------------ ------------
Net assets available for benefits per the
Form 5500 $ 19,130,417 $ 16,206,789
============ ============
</TABLE>
The following is a reconciliation of the benefits paid per the financial
statements to the Form 5500:
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
1998
-----------
<S> <C>
Benefits paid per the financial statements $ 2,822,435
Amounts allocated on Form 5500 to withdrawn
participants at December 31, 1997 (371,570)
Amounts allocated on Form 5500 to withdrawn
participants at December 31, 1998 184,358
-----------
Benefits paid per the Form 5500 $ 2,635,223
===========
</TABLE>
Amounts allocated to withdrawn participants are recorded on the Form 5500 for
benefit claims that have been processed and approved for payment prior to
year-end but not yet paid.
NOTE 4 - TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated February 6, 1996, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code (the Code) and, therefore, the related trust is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan Administrator
believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan is qualified and
the related trust is tax exempt.
13
<PAGE>
NOTE 5 - TRANSACTIONS WITH PARTIES-IN-INTEREST
For the Plan year ended December 31, 1998, the Plan purchased 203,286 shares and
sold 57,429 shares of Company Common Stock for $2,103,408 and $658,988,
respectively. Distributions to Plan participants consisted of 4,444 shares of
Company Common Stock, and the market value of such shares at date of
distribution was $58,456 for the Plan year ended December 31, 1998. The Plan did
not pay any fees to the Trustee, Wachovia Bank of Georgia, as all fees were paid
directly by the Company. The Company paid $32,823 in fees for the Plan year
ended December 31, 1998.
NOTE 6 - YEAR 2000 (UNAUDITED)
The Company has determined that it will be necessary to take certain steps in
order to ensure that the Plan's information systems are prepared to handle year
2000 dates. The Company is taking a two-phase approach. The first phase
addresses internal systems that must be modified or replaced to function
properly. Both internal and external resources are being utilized to replace or
modify existing software applications, and test the software and equipment for
the year 2000 modifications. The Company anticipates substantially completing
this phase of the project by October 1999. Costs associated with modifying
software and equipment are not estimated to be significant and will be paid by
the Company.
For the second phase of the project, Plan management established formal
communications with its third party service providers to determine that they
have developed plans to address their own year 2000 problems as they related to
the Plan's operations. All third party service providers have indicated that
they will be year 2000 compliant by mid-year 1999. If modification of data
processing systems of either the Plan, the Company, or its service providers are
not completed timely, the year 2000 problem could have a material impact on the
operations of the Plan. Plan management has not developed a contingency plan,
because they are confident that all systems will be year 2000 ready.
14
<PAGE>
<TABLE>
<CAPTION>
THE SPORTS AUTHORITY 401(K) SAVINGS AND PROFIT SHARING PLAN
EMPLOYER IDENTIFICATION NUMBER 36-3511120
PLAN NUMBER 001
LINE 27(A) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
- --------------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT INCLUDING
IDENTITY OF ISSUE, BORROWER, MATURITY DATE, RATE OF INTEREST, CURRENT
LESSOR OR SIMILAR PARTY COLLATERAL, PAR OR MATURITY VALUE COST VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
*Wachovia/Biltmore Prime Cash
Management Fund 7,773 units $ 7,773 $ 7,773
*The Sports Authority Common 365,160 shares of Common Stock 5,169,165 1,917,090
Stock Fund
*Participant Loans Participant Loans -- 983,887
(High and Low interest rates are
9.00% and 7.75%, respectively)
Registered Investment Companies:
AIM Balanced Fund 163,530 units 4,524,767 4,616,454
Davis New York Venture Fund 267,651 units 6,463,040 6,693,960
American Express Trust Company -
Income Fund I 68,570 units 2,899,924 3,303,448
United International Growth Fund 9,426 units 102,670 92,849
Sound Shore Fund, Inc. 14,508 units 432,280 429,720
----------- ----------
14,422,681 15,136,431
----------- -----------
Total Assets Held For Investment Purposes $19,599,619 $18,045,181
=========== ===========
</TABLE>
*Denotes a party-in-interest to the Plan.
15
<PAGE>
<TABLE>
<CAPTION>
THE SPORTS AUTHORITY 401(K) SAVINGS AND PROFIT SHARING PLAN
EMPLOYER IDENTIFICATION NUMBER 36-3511120
PLAN NUMBER 001
LINE 27(D) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
- ----------------------------------------------------------------------------------------------------------------------------------
(h) CURRENT
(b) DESCRIPTION OF VALUE OF
ASSETS, INCLUDING MATURITY ASSETS ON (i) NET
(a) IDENTITY OF PARTY DATE AND INTEREST RATE IN (c) PURCHASE (d) SELLING (e) (g) COST OF TRANSACTION GAIN
INVOLVED CASE OF LOANS PRICE PRICE EXPENSES ASSETS DATE (LOSS)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
I) A SINGLE TRANSACTION IN EXCESS OF 5% OF THE CURRENT VALUE OF PLAN ASSETS:
AIM Funds Group Balanced Fund $ 4,165,491 $ -- $ -- $ 4,165,491 $ 4,165,491 $ --
American Century Twentieth Century Fund -- 5,316,487 -- 4,320,414 5,316,486 996,073
American Mutual
Fund, Inc. American Mutual Fund -- 4,172,255 14,957 3,486,239 4,172,255 671,059
Davis New York Venture Fund -- 5,697,919 -- 5,697,919 5,697,919 --
Wachovia/Biltmore Prime Cash
Management Fund 5,316,486 -- -- 5,316,486 5,316,486 --
Wachovia/Biltmore Prime Cash
Management Fund 4,157,298 -- -- 4,157,298 4,157,298 --
Wachovia/Biltmore Prime Cash
Management Fund -- 5,697,919 -- 5,697,919 5,697,919 --
Wachovia/Biltmore Prime Cash
Management Fund -- 4,165,491 -- 4,165,491 4,165,491 --
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
THE SPORTS AUTHORITY 401(K) SAVINGS AND PROFIT SHARING PLAN
EMPLOYER IDENTIFICATION NUMBER 36-3511120
PLAN NUMBER 001
LINE 27(D) - SCHEDULE OF REPORTABLE TRANSACTIONS--(CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1998
- ----------------------------------------------------------------------------------------------------------------------------------
(h) CURRENT
(b) DESCRIPTION OF VALUE OF
ASSETS, INCLUDING MATURITY ASSETS ON (i) NET
(a) IDENTITY OF PARTY DATE AND INTEREST RATE IN (c) PURCHASE (d) SELLING (e) (g) COST OF TRANSACTION GAIN
INVOLVED CASE OF LOANS PRICE PRICE EXPENSES ASSETS DATE (LOSS)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
III) A SERIES OF TRANSACTIONS IN EXCESS OF 5% OF THE CURRENT VALUE OF PLAN ASSETS:
The Sports Authority Common Stock $ 2,088,503 $ -- $14,906 $ 2,103,409 $ 2,088,503 $ --
-- 719,194 4,399 1,038,110 719,194 (323,315)
American Express Trust Income Fund I
Trust Company 932,496 -- -- 932,496 932,496 --
-- 725,697 -- 743,344 725,697 (17,647)
-
American Mutual American Mutual Fund
Fund, Inc. 382,328 -- -- 382,328 382,328 --
-- 4,402,801 14,957 3,689,276 4,402,801 698,568
American Century Twentieth-Century
Fund 439,141 -- -- 439,141 439,141 --
-- 5,779,106 -- 4,727,481 5,779,106 1,051,625
Wachovia/Biltmore Prime Cash
Management Fund 21,482,912 -- -- 21,482,912 21,482,912 --
-- 21,487,401 -- 21,487,401 21,487,401 --
AIM Funds Group Balanced Fund 5,328,787 -- -- 5,328,787 5,328,787 --
-- 794,894 -- 695,816 794,894 99,078
Davis New York Venture Fund 7,809,212 -- -- 7,809,212 7,809,212 --
-- 973,391 10 944,889 973,391 28,492
</TABLE>
Column (f) has been excluded as the information required is not applicable.
There were no category II or IV reportable transactions in 1998.
17
<PAGE>
INDEX TO EXHIBITS
SEQUENTIAL
EXHIBITS PAGE NUMBER
- -------- -----------
23.1 Consent of Ernst & Young LLP 19
23.2 Consent of PricewaterhouseCoopers LLP 20
18
EXHIBIT 23.1
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We consent to the incorporation by reference in the Registration Statement on
Form S-8 (No. 33-94224) pertaining to The Sports Authority 401(k) Savings and
Profit Sharing Plan of our report dated June 25, 1999, with respect to the
financial statements and supplemental schedules of The Sports Authority 401(k)
Savings and Profit Sharing Plan included in this Annual Report (Form 11-K) for
the year ended December 31, 1998.
/s/ Ernst & Young LLP
Miami, Florida
June 25, 1999
19
EXHIBIT 23.2
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-94224) of The Sports Authority 401(k) Savings and
Profit Sharing Plan of our report dated June 24, 1998 relating to the financial
statements, which appears in this Form 11-K.
PricewaterhouseCoopers LLP
Fort Lauderdale, Florida
June 29, 1999
20
