Exercise 6
Event Budget
Your task:
Your organisation, the Queensland Weightlifting Association (QWA), has been invited to bid for a four-day international weightlifting tournament. The event will take place in six months time.
Although it would seem a welcome boost to your organisation to run this tournament, the QWA committee are concerned as to whether the event can be run profitably. The last time this event was run in Australia, the Western Australian Weightlifting Association hosted it and they made a loss of $20,000.
The QWA committee has asked you to investigate probable income and expenditure and prepare a budget for next week's committee meeting.
After some initial investigations you have come up with the following information.
Venue Costs
The Theater of the Sleeman Sports Complex is available for the dates of this event. It is a great venue as it was used for the Commonwealth Games in 1982. The venue will cost a $75 per hour and it is expected that the event will start at 12:00 noon and finish at 8:00pm on each of the four days. Therefore is a need to hire the venue for 8 hours per day.
The venue has excellent sound and lighting systems and therefore there is no need to bring in extra equipment. However, the venue manager does not allow users to have access to the sound/lighting control room. Instead, there is a requirement to pay for a sound/lighting system operator who will be hired by the venue manager. The cost of the sound/lighting system operator is $40 per hour.
The venue has a maximum capacity of 3,000 persons.
Equipment Costs
Although the association has plenty of weightlifting equipment, the QWA committee think it appropriate to purchase a new bar and weights for the competition platform. A quote has been received from the supplier as follows:
| Item Required | Qty Required |
Price Each
|
| 20Kg Bar and Collars |
1
|
$1,250.00
|
| 25Kg Disc, Rubber |
2
|
$250
|
| 20Kg Disc, Rubber |
2
|
$200
|
| 15Kg Disc, Rubber |
2
|
$170
|
| 10Kg Disc, Rubber |
2
|
$150
|
| 5Kg Disc, Kevlar |
2
|
$150
|
| 2.5Kg Disc, Kevlar |
2
|
$140
|
| 1Kg Disc, Metal |
2
|
$25
|
| .5Kg Disc, Metal |
2
|
$15
|
Accommodation for Referees
There is no actual payment for referees but it is generally the practise that referees who have travelled interstate have fully-paid accommodation provided. The number of such referees requiring such accommodation is six (6) and the average accommondation cost is expected to be $120 per night. Accommodation for these six referees needs to be provided the night before the event starts and each night after there has been a day of competition.
Programme Printing
The official tournament programme is expected to have eight(8) A4 pages, full colour both sides, folder and stapled in the middle to make a booklet of sixteen (16) A5 pages.
It has been agreed that should arrange for 1,000 programmes to be made. This will require 8,000 pages to be printed.
You have received a quote from the printer that, for quantities of 1,000 sheets, one sheet full colour both sides will costs $0.40. There is an additional cost of $50 for stapling and folding and making 1,000 booklets.
You will be able to alleaviate the cost of this programme printing by charging spectators $5 per programme.
Trophies
A very large number of trophies will be needed.
The tournament will have a total of eight bodyweight divisions, that is eight (8) for men and seven (7) for women. There will be a need to present a 1st, 2nd and 3rd place trophy in each of these 15 bodyweight divisions. It has been agreed that you have $100 to spend on trophies for each bodyweight division, and that this will be apportioned as follows:
- 1st place $50
- 2nd place $30
- 3rd place $20
Functions
There will be two-functions, one to open the event on the first day and one immediately after the event on the last day. The first function is an Offical Opening Function for dignitaries only. The second event is a "Dinner" for all competitors, officials and volunteers. A catering company has been contracted for both events and has provided the following details of costs:
| Opening function | The expected number of officials, sponsors and dignatories will be 50 persons. The catering company will provided finger food and beverages at a price of $15 per head. |
| Closing function |
The expected number of persons will be 300 at a cost of $20 each. There will also be some entertainment at a cost of $500 for the night. |
Advertising
You will need to advertise the event in the regional newspaper at a cost of $500, and purchase some 10 radio adverts of 30 second duration costing $3,000 in total.
Ticket Sales
The normal costs of a spectator ticket to the four-day international weightlifting tournament is $10 per day.
It is estimated that you will achieve the following spectator numbers:
Day 1 - 400
Day 2 - 400
Day 3 - 600
Day 4 - 1,000
Now that you have details of costs and income, you should draft a budget and determine whether or not it is advisable to go ahead with a bid for this event.
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