Budget Information For Sports Facility

As with any major stadium or facility it is important to have financial systems in place to ensure we continue to be successful. Arguably the most important of these activities is budgeting. It’s important to have both financial data for the current year as well as budget predictions for the next year. That way if it’s anticipated that less profit will be made adjustments or ways to increase profit can be made. As is accepted place in public assembly facilities we will use the fiscal year running July 1st to June 30th. Our budget statement shows the initial FY 2006/2007 and also the prospective estimate for the FY 2007/2008. Obviously once we have full financial information we would be able to develop our financial statements. These statements are necessary to illustrate our financial performance. They consist of Income Statement, Balance Sheet and Statement of Cash Flow.

Our Income Statement is somewhat similar to our budget and is a statement of our income and our expenses. It also easily shows if the stadium is currently profitable and by how much. Our Balance Sheet is the breakdown of Assets and Liabilities. Assets are usually things that we can sell to generate cash and Liabilities are forms of debt and expense. Our current assets are Cash, Petty Cash, Payroll Fund, Temporary Investment, and Accounts Receivable. Sundry Assets are Prepayments and Deposits. Fixed Assets are costs that are not constantly changing. Our Fixed Assets are Building Equipment, Kitchen Equipment, Concession Equipment, Tools, Box Office Equipment, Communications Equipment, Transportation Equipment and Building Improvements. Statement of Cash Flow shows how money is spent and where the money is going
12 month budget for Tampa Stadium
Revenue FY 2006/2007 FY 2007/2008
Parking Fees $ 260,000.00 $ 275,000.00
Sponsorships $ 200,000.00 $ 240,000.00
Naming rights payments $ 500,000.00 $ 500,000.00
Luxury suite leases $ 150,000.00 $ 150,000.00
Ticket fees $ 416,000.00 $ 425,000.00
Ticket commission $ 832,000.00 $ 900,000.00
Advertising income $ 250,000.00 $ 265,000.00
Merchandise sales $ 350,000.00 $ 250,000.00
Rent $ 600,000.00 $ 600,000.00
Profits from promoted events $ 80,000.00 $ 120,000.00
Catering comissions $ 400,000.00 $ 325,000.00
Other $ 20,000.00 $ 180,000.00
Total Revenue $4,058,000.00 4,230,000.00
Expenses
Operating expense $ 550,000.00 $ 650,000.00
Concessions $ 450,000.00 $ 475,000.00
Catering $ 350,000.00 $ 310,000.00
Event operations $ 600,000.00 $ 670,000.00
Box office $ 510,000.00 $ 620,000.00
Admininistrative $ 270,000.00 $ 350,000.00
Accounting $ 300,000.00 $ 350,000.00
Employee welfare expenses $ 200,000.00 $ 225,000.00
Total operating expenses $3,230,000.00 3,650,000.00
Profit/Loss $ 828,000.00 $ 580,000.00

The below chart illustrates our anticipated profit.

Below shows a breakdown of our revenues during the two years of our budget.

Below is a similar graph to illustrate expenses.

Finally there is a graphical illustration of the profits throughout the two years of the budget.

As with the majority of public assembly facilities we will use Line Item Budgeting. This allows us to have detailed control over facility expenses. In order to keep finances under control we will conduct both unscheduled internal and external audits. This auditing process includes review of contracts, advertising agreements, box office settlements, payments to vendors, clients and customers as well as payroll documents.
Settlements are done at the end of events and for our facility it’s an principal process and the documents needed for a settlement our listed below.
• A box office statement detailing tickets distributed, sold, and not sold
• Invoices from Tampa stadium documenting production, security, and contracted
• Invoices for equipment
• Catering bills
• Advertising bills
• Other invoices

It’s important that we conduct all of our contract negotiations in the just way. The most vital components are Mutual assent, capable parties, Fair considerations and Terms. Our most important contract is the lease agreement of our facility.
Included below is a petite portion of a marketing settlement.

Tampa Stadium Gross Net
Marketing Settlement
Advertising
Print:
Inquirer $40,000.00
Courier $10,000.00
News Journal $ 5,000.00
Tribune $ 2,500.00
Metro $ 4,000.00
NIE $ 3,000.00
Times $ 1,000.00
Total Print $65,500.00
Television
ABC $ 40,000.00 $32,000.00
FOX $ 30,000.00 $25,000.00
Comcast Cable $ 12,000.00 $ 8,000.00
PBS $ 10,000.00 $ 9,000.00
Total Television $ 92,000.00 $74,000.00

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