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 arent included in the financial statements, and to match up the $2 Team Project and this case study.

Tickets Sold 430,831

o Box Seats Approx. 50,000 at $8.75

o Reserved Seats Approx. 300,000 at $6.50

o Lawn Seats Approx. 80,000 at $4.75

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)

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.

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. please explain HOW you expect your decisions to work, dont just say you think you can increase that particular budget item. Here are some questions to answer in regard to the budget for the following season:

1. Are there any revenue items that the team might be missing? How would you think these would affect the results?

2. 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?

3. Are there any expense items that the team might be missing? How would you think these would affect the results?

4. What current expense items may be realistically decreased to help balance the budget? What might the financial effects of these decisions be?

5. Are there any revenue items that you might drop to help also lessen expenses? What would the effect of these change be?

6. Could you possible increase any expenses to help drive increased revenues? What would you expect from these decisions?

Name Total Budget Actual Code 40000 REVENUE 41000 Advertising and Sponsorship 1,900,000.00 1,613,435.00 42000 Ticket Sales 42100 Season Ticket Sales 42200 Group Sales 42300 Individual Ticket Sales 42400 All Star Game Ticket Sales 42500 Play-off Game Ticket Sales 42600 Upper Deck Ticket Sales 42900 Total Ticket Sales 350,000.00 1,000,000.00 1,200,000.00 351,116.00 981,759.00 1,200,163.00 15,000.00 213,000.00 2,778,000.00 0.00 209,269.00 2,742,307.00 43000 Concession Sales 43100 Concession Stand Sales 43200 Catering 43400 Outside Event Concession Sales 43500 Vouchers 43600 Subcontractor Sales 43700 Subcontractor Rent 43900 Total Concession Sales 2,039,113.00 834,548.00 80,000.00 25,000.00 118,833.00 79,819.00 3,177,313.00 1,789,113.00 840,796.00 80,239.00 16,568.00 125,226.00 67,594.33 2,919,536.33 44000 Souvenir and Merchandise Sales 237,671.00 237,966.00 60,000.00 64,520.00 45000 Other Revenue 45200 Parking Revenue 45400 Other Event Rental Revenue 45500 Miscellaneous Revenue 45600 Upper Deck Revenue 45700 Naming Rights Revenue 45900 Total Other Revenue 216,761.00 140,527.00 175,000.00 161,000.00 260,000.00 656,000.00 421,808.00 49000 Total Revenue 8,748,984.00 7,935,052.33 50000 Cost of Goods Sold 51000 Payroll and Related Expenses 51100 Salaries - Salesmen 51200 Salaries - Ticket Sellers 51300 Salaries - Group Sales 51400 Salaries - Operations 51410 Salaries - Groundskeepers 51420 Salaries - Parking 51430 Salaries - Security 51440 Salaries - Ushers 51450 Salaries - Maintenance 51460 Salaries - Interns 51500 Salaries - Concession Mgmt 51510 Salaries - Concession 51520 Salaries - Temps 51530 Salaries - NPG's 51600 Salaries - Souvenir 51900 Payroll Taxes 51950 Bonuses 51999 Total Payroll Related Expenses -200,000.00 -148,500.00 -147,000.00 -55,000.00 -41,000.00 -25,000.00 -81,000.00 -50,500.00 -58,000.00 -23,000.00 -300,000.00 -481,750.00 -204,682.00 -173,094.00 -116,631.00 -60,330.00 -30,956.00 -31,148.00 -81,522.00 -48,956.00 -63,906.00 -23,334.00 -280,751.00 -436,695.00 -3,177.00 -8,688.00 -18,778.00 -157,249.00 - -13,000.00 -128,000.00 -1,751,750.00 -1,739,897.00 52000 Concession and Souvenir Cost 52100 Concession Product 52200 Concession Supplies 52300 Souvenir Product 52400 Nonfood Supplies 52500 Freight 52600 Other Cost of Product 52999 Total Conc and Souvenir Cost -682,369.00 -8,027.00 -106,952.00 -112,391.00 -2,500.00 -661,749.00 -7,798.00 -107,297.00 -70,885.00 -3,237.00 -19,846.00 -870,812.00 -912,239.00 53000 Park Rent and Related Expenses 53100 Park Rent 53200 Stadium Utilities 53300 Field Maintenance 53400 Stadium Maintenance 53999 Total Park Expenses -1,245,000.00 -90,000.00 -36,000.00 -100,000.00 -1,471,000.00 -1,245,000.00 -78,049.00 -24,278.00 -109,629.00 -1,456,956.00 -232,000.00 -76,200.00 -175,000.00 -28,000.00 -171,528.00 -48,780.00 -143,043.00 -24,702.00 54000 Promotion Expense 54100 Merchandise Giveaways 54200 Entertainment 54300 Fireworks 54400 Fence Sign Costs 54500 All Star Game Promotions 54600 Playoff Game Promotions 54700 Player of the Month Promotions 54900 Other Events 54999 Total Promotion Expense -125.00 -7,860.10 -396,038.10 -511,200.00 - 10,000.00 55000 Other Cost of Sales 55100 Team Expenses 55110 Team Equipment 55120 Team Meal Money 55130 Team Lodging 55140 Team Travel 55150 Team Uniforms 55160 Player Development Costs 55199 Total Team Expenses -68,750.00 -55,000.00 -8,000.00 -6,190.00 -4,266.00 -54,949.00 -50,964.00 -5,158.00 -9,402.00 -130,929.00 -141,750.00 55200 Ticket Assessment Fee 55250 Broadcasting 55300 Stadium Security 55350 Employee Uniforms 55400 Ticket Printing 55500 Publications Expense 55600 Parking Lot Shuttle 55650 Tent Maintenance -187,515.00 -40,000.00 -5,000.00 -14,000.00 -6,800.00 -184,962.00 -40,500.00 -5,001.00 -6,553.00 -6,369.00 -13,924.00 -32,000.00 -27,000.00 55700 Publication Expense 55800 Equipment Repair and Maint. 55900 Miscellaneous Cost of Sales 55999 Total Other Cost of Sales -31,348.00 -28,518.00 -19,288.00 -467,392.00 -454,065.00 59000 Total Cost of Sales -5,100,254.00 -4,931,095.10 59999 Gross Profit 3,648,730.00 3,003,957.23 60000 General and Admin Expenses 61000 Salaries and Related Expenses 61100 Salaries - Executive 61200 Salaries - Media 61300 Salaries - Office 61900 Payroll Taxes 61950 Bonuses 61999 Total Salaries and Related Exp -199,200.00 -180,000.00 -180,000.00 -40,000.00 -191,672.00 -154,321.00 -204,633.00 -56,129.00 -599,200.00 -606,755.00 62000 Advertising Expense -360,000.00 -299,961.00 63000 Utilities and Related Expenses 63100 Utilities 63200 Telephone and Internet Expense 63300 Repairs Expense 63400 Equipment Rental Expense 63500 Equipment Leasing 63999 Total Utilities and Related -48,000.00 -48,000.00 -20,000.00 -9,000.00 -32,000.00 - 157,000.00 -52,596.00 -51,559.00 -15,636.00 -1,965.00 -29,850.00 -151,606.00 64000 Employee Related Expense 64100 Group Health Insurance 64200 Workers Compensation Insurance 64300 Disability Insurance 64400 401k Expenses 64500 Meals and Entertainment Exp 64600 Travel 64700 Automobile Expenses 64800 Seminars 64900 Other Employee Related Exp. 64999 Employee Related Expense -120,000.00 -40,000.00 -20,000.00 -13,000.00 - 10,000.00 -5,100.00 -10,000.00 -2,900.00 -96,827.00 -23,021.00 -8,496.00 -11,871.00 -3,483.00 -3,845.00 -7,977.00 0.00 -221,000.00 -155,520.00 66000 Other General and Admin Exp 66100 Insurance Expense 66200 Printing Expense 66300 Postage Expense 66400 Office Supplies 66450 Other Supplies 66500 League Dues 66550 Dues and Subscriptions 66600 ADP Processing Fees 66610 Bank Fees 66620 Credit Card Fees 66630 Loss on NSF Checks 66640 Late Fees 66700 License Fees 66800 Bad Debt Expense 66850 Charitable Contributions 66900 Winter Banquet Expense 66950 Other Miscellanous 66999 Total Other General and Admin -100,000.00 -50,000.00 -50,000.00 - 15,000.00 -15,000.00 -56,000.00 -15,000.00 -14,000.00 -18,000.00 -70,000.00 - 1,500.00 -24,000.00 -8,000.00 -24,000.00 -78,932.00 -39,645.00 -16,353.00 -11,752.00 -14,275.00 -55,982.00 -15,867.00 -13,224.00 -27,334.00 -68,646.00 -396.00 -25,440.00 -7,387.00 -80,678.00 -600.00 -6,000.00 -467,100.00 -21,150.00 -477,061.00 67000 Professional Fees 67100 Management Fee 67200 Accounting Fees 67300 Legal Fees 67400 MIS Support 67500 Public Relations 67999 Total Professional Fees -720,000.00 -42,000.00 -12,000.00 -9,000.00 -720,000.00 -24,000.00 -8,035.00 -4,476.00 -783,000.00 -756,511.00 70000 Depreciation Expense -360,000.00 -346,732.00 79995 Total Gen, & Admin. Expenses -3,180,257.00 -3,002,146.00 79999 Income From Operations 468,473.00 1,811.23 80000 Other Expense (Income) 81100 Interest Income 81200 Gain on Sale of Assets 81300 Interest Expense 81310 Interest - Revolver 81320 Interest - Term Loan 81322 Interest - Term Note 81325 Interest - Def Charges 81330 Interest - Capital Lease Obl. 81399 Total Interest Expense -50,000.00 -200,000.00 -47,006.00 -232,378.00 -7,685.00 -35,675.00 -36,000.00 -286,000.00 -322,744.00 81400 Loss on Disposal of Assets 82000 Total Other Exp (Income) -286,000.00 -322,744.00 90000 Net Income 182,473.00 -320,932.77 Name Total Budget Actual Code 40000 REVENUE 41000 Advertising and Sponsorship 1,900,000.00 1,613,435.00 42000 Ticket Sales 42100 Season Ticket Sales 42200 Group Sales 42300 Individual Ticket Sales 42400 All Star Game Ticket Sales 42500 Play-off Game Ticket Sales 42600 Upper Deck Ticket Sales 42900 Total Ticket Sales 350,000.00 1,000,000.00 1,200,000.00 351,116.00 981,759.00 1,200,163.00 15,000.00 213,000.00 2,778,000.00 0.00 209,269.00 2,742,307.00 43000 Concession Sales 43100 Concession Stand Sales 43200 Catering 43400 Outside Event Concession Sales 43500 Vouchers 43600 Subcontractor Sales 43700 Subcontractor Rent 43900 Total Concession Sales 2,039,113.00 834,548.00 80,000.00 25,000.00 118,833.00 79,819.00 3,177,313.00 1,789,113.00 840,796.00 80,239.00 16,568.00 125,226.00 67,594.33 2,919,536.33 44000 Souvenir and Merchandise Sales 237,671.00 237,966.00 60,000.00 64,520.00 45000 Other Revenue 45200 Parking Revenue 45400 Other Event Rental Revenue 45500 Miscellaneous Revenue 45600 Upper Deck Revenue 45700 Naming Rights Revenue 45900 Total Other Revenue 216,761.00 140,527.00 175,000.00 161,000.00 260,000.00 656,000.00 421,808.00 49000 Total Revenue 8,748,984.00 7,935,052.33 50000 Cost of Goods Sold 51000 Payroll and Related Expenses 51100 Salaries - Salesmen 51200 Salaries - Ticket Sellers 51300 Salaries - Group Sales 51400 Salaries - Operations 51410 Salaries - Groundskeepers 51420 Salaries - Parking 51430 Salaries - Security 51440 Salaries - Ushers 51450 Salaries - Maintenance 51460 Salaries - Interns 51500 Salaries - Concession Mgmt 51510 Salaries - Concession 51520 Salaries - Temps 51530 Salaries - NPG's 51600 Salaries - Souvenir 51900 Payroll Taxes 51950 Bonuses 51999 Total Payroll Related Expenses -200,000.00 -148,500.00 -147,000.00 -55,000.00 -41,000.00 -25,000.00 -81,000.00 -50,500.00 -58,000.00 -23,000.00 -300,000.00 -481,750.00 -204,682.00 -173,094.00 -116,631.00 -60,330.00 -30,956.00 -31,148.00 -81,522.00 -48,956.00 -63,906.00 -23,334.00 -280,751.00 -436,695.00 -3,177.00 -8,688.00 -18,778.00 -157,249.00 - -13,000.00 -128,000.00 -1,751,750.00 -1,739,897.00 52000 Concession and Souvenir Cost 52100 Concession Product 52200 Concession Supplies 52300 Souvenir Product 52400 Nonfood Supplies 52500 Freight 52600 Other Cost of Product 52999 Total Conc and Souvenir Cost -682,369.00 -8,027.00 -106,952.00 -112,391.00 -2,500.00 -661,749.00 -7,798.00 -107,297.00 -70,885.00 -3,237.00 -19,846.00 -870,812.00 -912,239.00 53000 Park Rent and Related Expenses 53100 Park Rent 53200 Stadium Utilities 53300 Field Maintenance 53400 Stadium Maintenance 53999 Total Park Expenses -1,245,000.00 -90,000.00 -36,000.00 -100,000.00 -1,471,000.00 -1,245,000.00 -78,049.00 -24,278.00 -109,629.00 -1,456,956.00 -232,000.00 -76,200.00 -175,000.00 -28,000.00 -171,528.00 -48,780.00 -143,043.00 -24,702.00 54000 Promotion Expense 54100 Merchandise Giveaways 54200 Entertainment 54300 Fireworks 54400 Fence Sign Costs 54500 All Star Game Promotions 54600 Playoff Game Promotions 54700 Player of the Month Promotions 54900 Other Events 54999 Total Promotion Expense -125.00 -7,860.10 -396,038.10 -511,200.00 - 10,000.00 55000 Other Cost of Sales 55100 Team Expenses 55110 Team Equipment 55120 Team Meal Money 55130 Team Lodging 55140 Team Travel 55150 Team Uniforms 55160 Player Development Costs 55199 Total Team Expenses -68,750.00 -55,000.00 -8,000.00 -6,190.00 -4,266.00 -54,949.00 -50,964.00 -5,158.00 -9,402.00 -130,929.00 -141,750.00 55200 Ticket Assessment Fee 55250 Broadcasting 55300 Stadium Security 55350 Employee Uniforms 55400 Ticket Printing 55500 Publications Expense 55600 Parking Lot Shuttle 55650 Tent Maintenance -187,515.00 -40,000.00 -5,000.00 -14,000.00 -6,800.00 -184,962.00 -40,500.00 -5,001.00 -6,553.00 -6,369.00 -13,924.00 -32,000.00 -27,000.00 55700 Publication Expense 55800 Equipment Repair and Maint. 55900 Miscellaneous Cost of Sales 55999 Total Other Cost of Sales -31,348.00 -28,518.00 -19,288.00 -467,392.00 -454,065.00 59000 Total Cost of Sales -5,100,254.00 -4,931,095.10 59999 Gross Profit 3,648,730.00 3,003,957.23 60000 General and Admin Expenses 61000 Salaries and Related Expenses 61100 Salaries - Executive 61200 Salaries - Media 61300 Salaries - Office 61900 Payroll Taxes 61950 Bonuses 61999 Total Salaries and Related Exp -199,200.00 -180,000.00 -180,000.00 -40,000.00 -191,672.00 -154,321.00 -204,633.00 -56,129.00 -599,200.00 -606,755.00 62000 Advertising Expense -360,000.00 -299,961.00 63000 Utilities and Related Expenses 63100 Utilities 63200 Telephone and Internet Expense 63300 Repairs Expense 63400 Equipment Rental Expense 63500 Equipment Leasing 63999 Total Utilities and Related -48,000.00 -48,000.00 -20,000.00 -9,000.00 -32,000.00 - 157,000.00 -52,596.00 -51,559.00 -15,636.00 -1,965.00 -29,850.00 -151,606.00 64000 Employee Related Expense 64100 Group Health Insurance 64200 Workers Compensation Insurance 64300 Disability Insurance 64400 401k Expenses 64500 Meals and Entertainment Exp 64600 Travel 64700 Automobile Expenses 64800 Seminars 64900 Other Employee Related Exp. 64999 Employee Related Expense -120,000.00 -40,000.00 -20,000.00 -13,000.00 - 10,000.00 -5,100.00 -10,000.00 -2,900.00 -96,827.00 -23,021.00 -8,496.00 -11,871.00 -3,483.00 -3,845.00 -7,977.00 0.00 -221,000.00 -155,520.00 66000 Other General and Admin Exp 66100 Insurance Expense 66200 Printing Expense 66300 Postage Expense 66400 Office Supplies 66450 Other Supplies 66500 League Dues 66550 Dues and Subscriptions 66600 ADP Processing Fees 66610 Bank Fees 66620 Credit Card Fees 66630 Loss on NSF Checks 66640 Late Fees 66700 License Fees 66800 Bad Debt Expense 66850 Charitable Contributions 66900 Winter Banquet Expense 66950 Other Miscellanous 66999 Total Other General and Admin -100,000.00 -50,000.00 -50,000.00 - 15,000.00 -15,000.00 -56,000.00 -15,000.00 -14,000.00 -18,000.00 -70,000.00 - 1,500.00 -24,000.00 -8,000.00 -24,000.00 -78,932.00 -39,645.00 -16,353.00 -11,752.00 -14,275.00 -55,982.00 -15,867.00 -13,224.00 -27,334.00 -68,646.00 -396.00 -25,440.00 -7,387.00 -80,678.00 -600.00 -6,000.00 -467,100.00 -21,150.00 -477,061.00 67000 Professional Fees 67100 Management Fee 67200 Accounting Fees 67300 Legal Fees 67400 MIS Support 67500 Public Relations 67999 Total Professional Fees -720,000.00 -42,000.00 -12,000.00 -9,000.00 -720,000.00 -24,000.00 -8,035.00 -4,476.00 -783,000.00 -756,511.00 70000 Depreciation Expense -360,000.00 -346,732.00 79995 Total Gen, & Admin. Expenses -3,180,257.00 -3,002,146.00 79999 Income From Operations 468,473.00 1,811.23 80000 Other Expense (Income) 81100 Interest Income 81200 Gain on Sale of Assets 81300 Interest Expense 81310 Interest - Revolver 81320 Interest - Term Loan 81322 Interest - Term Note 81325 Interest - Def Charges 81330 Interest - Capital Lease Obl. 81399 Total Interest Expense -50,000.00 -200,000.00 -47,006.00 -232,378.00 -7,685.00 -35,675.00 -36,000.00 -286,000.00 -322,744.00 81400 Loss on Disposal of Assets 82000 Total Other Exp (Income) -286,000.00 -322,744.00 90000 Net Income 182,473.00 -320,932.77