Your stadium has just held a concert over the weekend, using the below facts create a Profit and Loss statement:
The artist was guaranteed $5,000,000 plus 5% of general admission ticket sales net of applicable taxes. The artist will be reimbursing the venue for costs of putting up and taking down the stage, security/police, EMT and Fire. The artist will be giving the venue a fee of $10,000 for the right to sell merchandise for the event on their own, $85,000 for the right to use the stadium’s concert flooring, and $400,000 as a rental fee.
Paid attendance for the event was 48,000 of which 90% of the seats were sold in general admission locations and the remaining 10% were sold in the suites.
The average general admission ticket was sold for $85.
The average suite seat was sold for $225 of which $100 was the ticket price and $125 was the license fee component.
A facility fee of $3 was charged for every ticket sold.
The venue collects a 2% ticket royalty on ticket sales only.
The price per car parked was $30 and the patrons that attended the event average 2.5 patrons per car.
The no-show rate for the show was 4%.
The concessions agreement calls for concessions to be paid to the venue at 34%.
Per capita food and beverage spending for the concert was $21.50
The tax rate in the state of operation is 7% and only applies to ticket sales.
The stadium employed 500 security guards for the event. The union collective bargaining agreement calls for a 6 hour shift. The union rate is $23.50/hour which is inclusive of all benefits. Each security guard worked 5 hours.
The stadium employed 100 cleaners for after the event. The union rate is $17/hour which is inclusive of all benefits. Each cleaner worked 3 different 8 hour shifts.
It cost $400,000 to put up and take down the stage.
Other costs included:
oStadium Maintenance - $75,000
oParking - $50,000
oEMT - $12,000
oFire - $5,000
oLaw Enforcement - $90,000
oOther - $31,500
Assume only the facts given above when completing the Profit and Loss statement for the event.
What was the profitability or loss created by this event?
If any assumptions need to be made clearly describe them when submitting.
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