Congratulations, on being appointed as the director of the North Carolina Open Singles Badminton Championships. You have been researching probable revenues and costs so that you can make a budget.

The event will run over three days (Friday, Saturday, and Sunday). The duration of the event will be 8 hours per day and the total number of competitors for the three (3) days will be 256 competitors (128 in the men's tournament and 128 in the women's tournament). The type of event will be a single-elimination tournament:

Round	Matches (in each division)
1st	64
2nd	32
3rd	16
4th	8
Quarter-Final	4
Semi-Final	2
Final	1

 

 Have ascertained the following information about probable costs and revenues:

1. Salaries and Benefits
   1. The role as the tournament director falls under the full-time position of Community Sports Event Director. As part of my responsibilities, you manage all major sports events hosted by the community. The total annual salary is $35,000 + 20% fringe benefits. 10% of your job duties are directed toward the Badminton Championships and this portion of your salary and benefits should be included in the program budget.

 

1. Venue Costs
   1. The venue will cost $500 per day. However, there is an extra cost for lighting and the use of the venue's sound system. These costs are as follows:
      1. The venue lighting cost $20.00 per hour.
      2. The sound system will cost $100.00 per day.
   2. The venue requires an advanced commitment (i.e., once booked, you can't reduce the number of hours or days of rental).
   3. The venue will also operate all concessions and keep 100% of the revenues from these sales

 

1. Trophies will be awarded as follows:
   1. Men's Competition, 1st place, 2nd place, 3rd place, 4th place, 5th place
   2. Women's Competition, 1st place, 2nd place, 3rd place, 4th place, 5th place
      1. The 1st place trophy will cost $50, 2nd place - $40, 3rd place - $30, 4th place -$25, and 5th place - $20.

 

1. Hospitality for dignitaries and officials will cost $30 per day per person, and the total number of persons to cater for is expected to be 40 per day. You are contractually obligated to provide hospitality for 40 people per day. Additionally, you will provide lunch for all entered competitors on Saturday at a cost of $5 per person.

 

1. Referee costs will be $20 per hour. Each Badminton Game lasts 30 minutes and will require one referee only.  Need to work out the total number of games to be played and the hours needed for referees.

 

1. Printing requirements will be as follows:
   1. 300 Competition Programs costing $2.00 each
   2. 500 Score Cards costing $0.50 each
   3. 10 Banners at $75.00 each

 

 

 

1. Administration and insurance costs are expected to be as follows:
   1. Postage $250
   2. Computer Software (Tournament Scheduler) $200
   3. Mobile and Office Telephone Calls $200
   4. Stationery $100
   5. Event insurance $1000

 

 

1. Advertising and promotion costs will be as follows:
   1. Newspaper Advertising (2 advertisements at $400 each)
   2. Posters (100 @ $5 each)
   3. Promotional Flyers (500 @ $0.50 each)

 

1. There is a need to purchase four special competition scoreboards that cost $2,000 each. Amortize (a fancy word for breaking up over time) the depreciation of the scoreboards at 25% per year in the operating budget.

 

 

1. Merchandising
   1. It is planned to purchase 100 T-shirts and 100 Caps to sell at the event.
   2. These articles of clothing will have screen printing and embroidery respectively to commemorate the event.
      1. T-shirts will cost $10.00 each to purchase and will probably sell for $20.00 each.
      2. Caps will cost $9.00 each to purchase and will probably sell for $16.00 each.

 

1. An application for a USOC grant has been successful. The amount of the grant is $3,000.

 

1. There is an exclusive title sponsorship contract in place for the competition. The sponsorship amounts to $3,000.

 

1. As the Director, set the competition entry fee.

 

The task

The situation is that, as Director, you need to develop a tournament budget on the information that has been provided so far. Use MS Excel to develop the budget and display high standards of formatting and layout in the answers. A template has been provided in the images below. When complete calculations to work out all known costs and revenues, you will find that there is insufficient income to cover all costs.  Have been given information (on the first page) that the competition has 128 men and 128 women. Based on this, work out how much they need to charge each competitor to ensure the event breaks even financially.