CASE 2-2 SUPREME SPORTS In June 2016, Guido Pino, the new program director at Supreme Sports2 {SS2} in Guelph, Ontario, sat at his desk and reviewed the company's performance over the past several months. I-Iis review of the financial statements indicated iat the company would not break even iat year and would fall short of projections by $220,000. Pino contemplated what gone wrong and why this had occurred and what could done to ensure that head office's goals would be met this coming fiscal year. In 2013, the number of soccer players throughout Canada had increased by 2'0 per cent and it continues to be one of the fastest growing sports in North America. The Canadian Soccer Association reported that in 2014 there were over half a million registered soccer players, an increase over previous years, due to the increase in female participation. By comparison, hockey, historically lCanada's premier sport, was experiencing declining growth rates. SUPREME SPORTS Supreme Sports Inc. had been founded in 2014 as a \"recreational company, created to capitalize on the growing demand for indoor soccer facilities.\" The company had designed an indoor sports facility which consisted of an airsupported dome that enclosed two indoor sports fields. SSI had opened two new indoor sport complexes, the rst facility in Ottawa, Ontario, (351] in January 2015 and the second in Guelph, Ontario,{SS2], in February of the same year. Eoi SSIl in Ottawa and SSI2 in Guelph, were primarily designed for soccer, but could be congured to support numerous other indoor sports as well. While SSI's headquarters in Kitchener, Ontario, retained ultimate control over finances and management, the onsite management were responsible for the daily operations and local marketing initiatives. Soccer in Guelph As of June 2010, the population of Wellington County, where Guelph is located, was over half a million and was growing every year. Guelph, Ontario was home to over 25,000 soccer players registered wii the Ontario Soccer Association {OSA}. The OSA was the official governing body for the sport of soccer in Ontario. In this capacity, the OSA, made an implemented any necessary rule changes, scheduled all tournaments for their participants, and provided coaches and referees for the individual leagues. All of the amateur soccer teams registered with the OSA had their games scheduled by the organization. In order to participate in organized soccer in Guelph, players were required to register with the Weington County Soccer Association, the local division of the OSA, for a fee of $ 4.25. This fee provided the participants with insurance in the event they were ever injured. Once registered players could join and play for a team of their choice. The team would then decide what position they would phar