This is everything brotha

Included in this case study are the financial records for a Minor League Baseball Team for one season, with the balance sheet as of the end of the calendar year. Several factors combined to take what was on paper (the Budget) set to be a profitable year and turn it into a losing proposition. Your job is to identify some of the areas the team failed during this season, but also identify some areas for improvement, not only on the expense side, but the revenue side as well. Here are some pieces of information that might help your analysis and aren't included in the financial statements. - Tickets Distributed - 430,831 Box Seats - Approx. 50,000 at $8.75 average sales price Reserved Seats - Approx. 300,000 at $6.50 average sales price Lawn Seats - Approx. 80,000 at $4.75 average sales price - Actual Attendance 288,661 (fans, not including staff) - Preferred Parking - $10 (limited spots; large discounts for ticket package holders) - General Parking - Free (Average of 2.5 people per car) - Concessions per cap - $10.13 per actual attendee - Team Store (Souvenirs) per cap - $0.83 per actual attendee - Stadium was expanded in 2009; Rent before expansion was 8% of revenues - The two line items that may NOT be changed on the expense side are the Stadium Rent and the Management fee - Miscellaneous revenue includes the Kidzone area, Birthday Parties, Player Appearances, and Mascot Appearances - Group Sales include any group of 20 or more tickets. This also includes all suite and deck outings. The catering required with these outings are in the catering revenue line item. Upper Deck Revenue is simply the amount of the ticket that does not need to be counted in the ticket taxes owed to Major and Minor League Baseball, so the true total of group sales is the Group Sales PLUS Upper Deck Revenue line items. Your job is to identify a few ways to return the team to profitability for the next season. The Income Statement attached shows the budget for the just completed season, as well as the actual results. You will use these as a basis to develop your initial thoughts towards the budget for the upcoming season. You will not need to complete a full budget, rather answer the following questions in as much detail as possible to convince the owner that your budget will "right the ship," so to speak. Cougars Baseball Budgets 2011 Cougars Baseball Budgets 2011 Cougars Baseball Budgets 2011 Please use any financial ratios, formulas, or calculate the effects of your decisions to support your claims for each question, meaning, if you answer that you will raise a price in a certain area, show the effects of this decision using some basic math and reasoning. When deciding how to balance the budget, please explain HOW you expect your decisions to work, don't just say you think you can increase that particular budget item. If you are confused about the terminology of some of the line items, please make sure to reach out, and also be sure to review the video that reviews the Income Statement for the Kane County Cougars, which should help with identification of some items. Here are some questions to answer in regards to the budget for the following season: 1. Where on the revenue side did the team fall short of expectations, and why might that be? 2. Where on the expense side did the team spend considerably more than expected, and why might that be? 3. Are there any revenue items that the team might be missing? How would you think these would affect the results? 4. What current revenue items may be realistically increased to help balance the budget? How would you achieve that, and what might the financial effects of these decisions be (use MATH)? 5. Are there any expense items that the team might be missing? How would you think these would affect the results? 6. What current expense items may be realistically decreased to help balance the budget? By how much would you decrease these items? What might the financial effects of these decisions be? 7. Are there any revenue items that you might drop to help also lessen expenses? What would the effect of these changes be? 8. Could you possibly increase any expenses to help drive increased revenues? What would you expect from these decisions? 9. Is there any other information you would need to help make your decisions? Included in this case study are the financial records for a Minor League Baseball Team for one season, with the balance sheet as of the end of the calendar year. Several factors combined to take what was on paper (the Budget) set to be a profitable year and turn it into a losing proposition. Your job is to identify some of the areas the team failed during this season, but also identify some areas for improvement, not only on the expense side, but the revenue side as well. Here are some pieces of information that might help your analysis and aren't included in the financial statements. - Tickets Distributed - 430,831 Box Seats - Approx. 50,000 at $8.75 average sales price Reserved Seats - Approx. 300,000 at $6.50 average sales price Lawn Seats - Approx. 80,000 at $4.75 average sales price - Actual Attendance 288,661 (fans, not including staff) - Preferred Parking - $10 (limited spots; large discounts for ticket package holders) - General Parking - Free (Average of 2.5 people per car) - Concessions per cap - $10.13 per actual attendee - Team Store (Souvenirs) per cap - $0.83 per actual attendee - Stadium was expanded in 2009; Rent before expansion was 8% of revenues - The two line items that may NOT be changed on the expense side are the Stadium Rent and the Management fee - Miscellaneous revenue includes the Kidzone area, Birthday Parties, Player Appearances, and Mascot Appearances - Group Sales include any group of 20 or more tickets. This also includes all suite and deck outings. The catering required with these outings are in the catering revenue line item. Upper Deck Revenue is simply the amount of the ticket that does not need to be counted in the ticket taxes owed to Major and Minor League Baseball, so the true total of group sales is the Group Sales PLUS Upper Deck Revenue line items. Your job is to identify a few ways to return the team to profitability for the next season. The Income Statement attached shows the budget for the just completed season, as well as the actual results. You will use these as a basis to develop your initial thoughts towards the budget for the upcoming season. You will not need to complete a full budget, rather answer the following questions in as much detail as possible to convince the owner that your budget will "right the ship," so to speak. Cougars Baseball Budgets 2011 Cougars Baseball Budgets 2011 Cougars Baseball Budgets 2011 Please use any financial ratios, formulas, or calculate the effects of your decisions to support your claims for each question, meaning, if you answer that you will raise a price in a certain area, show the effects of this decision using some basic math and reasoning. When deciding how to balance the budget, please explain HOW you expect your decisions to work, don't just say you think you can increase that particular budget item. If you are confused about the terminology of some of the line items, please make sure to reach out, and also be sure to review the video that reviews the Income Statement for the Kane County Cougars, which should help with identification of some items. Here are some questions to answer in regards to the budget for the following season: 1. Where on the revenue side did the team fall short of expectations, and why might that be? 2. Where on the expense side did the team spend considerably more than expected, and why might that be? 3. Are there any revenue items that the team might be missing? How would you think these would affect the results? 4. What current revenue items may be realistically increased to help balance the budget? How would you achieve that, and what might the financial effects of these decisions be (use MATH)? 5. Are there any expense items that the team might be missing? How would you think these would affect the results? 6. What current expense items may be realistically decreased to help balance the budget? By how much would you decrease these items? What might the financial effects of these decisions be? 7. Are there any revenue items that you might drop to help also lessen expenses? What would the effect of these changes be? 8. Could you possibly increase any expenses to help drive increased revenues? What would you expect from these decisions? 9. Is there any other information you would need to help make your decisions