Question
SPONSORSHIP BENEFITS In full consideration for Sponsor's payment of the Sponsorship Fee, Mohegan Sun, at its cost and expense, shall provide Sponsor the following benefits
SPONSORSHIP BENEFITS
In full consideration for Sponsor's payment of the Sponsorship Fee, Mohegan Sun, at its cost and expense, shall provide Sponsor the following benefits during the Term:
- Reserved Cabaret tickets - Upon reasonable request, Sponsor shall receive up to four (4) tickets to each event taking place at Mohegan Sun Cabaret, during the Term, for which tickets are sold to the general public generally, and for which Mohegan Sun has retained.
- Arena Ticket Bank - Upon reasonable request, Mohegan Sun will provide Sponsor with a total of one hundred and eighty (180) tickets for events held at the Mohegan Sun Arena. Limit of four (4) tickets per event. Sponsor must request tickets no later than fourteen (14) days prior to event. All ticket requests are subject to availability.
- Complimentary Hotel Accommodation - Upon reasonable request, Sponsor shall have use of up to fifteen (15) complimentary room nights, room and tax only, at the Mohegan Sun hotel, subject to availability. Unused accommodations can be refunded at $50 per night, at the end of the term.
- Arena Suite - Sponsor shall receive exclusive rights to six (6) uses of a 16-person suite in the Mohegan Sun Arena during the Term at no cost. Sponsor shall receive sixteen (16) tickets per use at no cost.
- Mohegan Sun Golf Club - Sponsor shall be entitled to nine (9) complimentary rounds of golf to be used at its discretion, at the Mohegan Sun Golf Club.
- Free chocolate from Godiva - Sponsor shall be entitled to up to twelve (12) boxes of chocolate from Godiva, a nonaffiliated tenant of Mohegan Sun.
SPONSORSHIP FEE
In consideration for the sponsorship rights granted hereunder to Sponsor, Sponsor shall pay to Mohegan Sun the total sum of fifty Thousand dollars ($50,000), ("Sponsorship Fee"), which shall be paid at the time of signing of this Agreement.
TERM
This Agreement shall be effective as of January 1, 2020 and shall expire on December 31, 2022, unless earlier terminated by mutual agreement of the parties.
Assumptions:
On January 1, 2020, Mohegan Sun (MS) expected 10 out of 15 hotel accommodations would be redeemed. However, MS could not reasonably predict how many arena tickets would be redeemed. MS hosts more than 30 events in arena per year.
Cabaret had 20 events, 28 events, and 24 events in each of 2017, 2018, and 2019, respectively.
Standalone selling prices:
Reserved Cabaret tickets $60 per ticket
Arena Ticket Bank $180 per ticket
Complimentary Hotel Accommodation $300 per night (inclusive of tax)
Arena Suite $3,000 per event, inclusive of 16 tickets
Mohegan Sun Golf Club $240 per round
Free chocolate from Godiva $100 each, cost to MS is $50 each.
I need help with these questions:
- Record January 1, 2020 entry (entries) (10 pts)
- Record all entries for period ended December 31, 2020, assuming the following: Thirty cabaret tickets, 80 arena tickets, four complimentary hotel rooms, two arena suites, seven rounds of golf, and four boxes of chocolate has been redeemed between January 1, 2020 and December 31, 2020. (10 pts)
- On January 1, 2021, ABC Inc. calls MS, asking for 10 more rounds of golf in exchange for $2,400. MS agreed. Record this entry. (10 pts)
- On January 1, 2021, WHO declares COVID 19 pandemic. In response to the pandemic, MS temporarily suspends its operations between January 2, 2021 and April 30, 2021. On May 1, 2021, the senior executive team believes only 60 of the remaining 100 arena tickets will be redeemed. Record all entries for period ended December 31, 2021, assuming the following: Ten cabaret tickets, 20 arena tickets, two arena suites, seven rounds of golf, and four boxes of chocolate are redeemed between January 1, 2021 and December 31, 2021. (40 pts)
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