Background Notes Week 14 Group Hybrid - See Assignment Requirements at Line 41 Assignment Objective - Utilizing actual data from the 2018 Ottawa Bluesfest, your team has an opportunity to develop a...

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Background Notes Week 14 Group Hybrid - See Assignment Requirements at Line 41 Assignment Objective - Utilizing actual data from the 2018 Ottawa Bluesfest, your team has an opportunity to develop a master budegt and master cash flow for the 2019 Festival and learn the major elements and flow of a budget. 2018 Data & Notes 2019 was the 25th anniversary of Bluesfest. Musicians such as Sting, Bryan Admas, Blue Rodeo, Black Eyed Peas, Bonnie Raitt, Van Morrison, White Stripes, Tragicaaly Hip, - RBC Bluesfest year-end is Aug 31Jeff Beck, Kiss, Rush, Arcade Fire, Santana, Steve Miller, Dixie Chicks, BB King, Kanye West, Iggy Azalea, Red Hot Chili Peppers, Pink, Tom Petty, Foo Fighters, Dave Mathews - total attendance at 300,000Shawn Mendes, Killers, Eric Church, Back Street Boys, Snoop Dog 77% repeat customers; 55% of the Ottawa population had attended Bluesfest in the last 5 years; 94.6% positive rating of the festival The companies year end is August 31 Revenue Sources Grants - Federal$ 116,000.00 Grants - Provincial$ 483,000.00 Grants - Regional/City$ 135,000.00 Event revenue$ 11,534,000.00 concert occurs in early/mid July - 10 days; five stages in use cash receipts for tickets start in February when the summer line-up is announced and tickets are released includes: advance ticket salestickets go on sale when the line-up is announced in late January, early February of each year Presale prices are tiered (1 and 2) - $209 plus HST and $229 plus HST Under 19/Youth Festival Passes $109 plus HST Under 25/Youth Festival Passes $139 plus HST Day PassesRegular daily festival pricing VIP Sales indiviudal - $239 plus hst avg; max 200 tickets per day go on sale in February; $249/ticket individual; VIP Group Packages $4800 per package; max of 40 per day beer sales beer was priced at $10 with 300,00 cups sold concession stand commissions RBC Bluesfest will take a 15% of sales from vendors who operate on the site RBC Bluesfest concessionRBC Bluesfest runs their own stand where they sell souvenirs for the event Sponsorship Revenue$ 3,848,000.00 Total Revenue from Festival$ 16,116,000.00 Expense CategoriesCash payments for expenses are concentrated in the November to August time period Marketing estimated marketing costs for the concert are $1,500,000; over 1m unique vists to the website and over 1.8m unique sessions; over 7m social media impressions; 49% male/51% female attendees marketing and media coverage tend to be most extensive in the February to July time period Artist Costsin the past, these costs have been between $5m and $7m based on who the lead acts were; initial retainer fees (40%) are paid when the act is booked (NOV-March) and the balance is paid after the artist has performed; the lead act could cost up to $1m. Production Expensesincludes site permits, rental of stages, erection and take-down of stages, production support staff Overheadincludes all costs to support 3500 volunteer staff, security, utilities, Total Festival Expenses (estimated)$ 15,500,000.00 Net Profit (estimated form the Festival)$ 616,000.00 REQUIREDbased on the data provided and the template provided, develop both a detailed income statemet and a detailed cash flow statement for the Festival. You may work in groups up to a maximum of five (4) people Only one student needs to submit in the Week 13 folder BUT please make sure all names are noted. Excel Template RBC Bluesfest Consolidated Master Budget - Income Statement Team x CategorySeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJuly AugustTotal Revenues Marketing Expenses Artists Expenses Production Expenses Overhead Expenses Excess of Revenue Over Expenses RBC Bluesfest Consolidated Master Budget - Cash Flow Statement Team x CategorySeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJuly AugustTotal Revenues Marketing Expenses Artists Expenses Production Expenses Overhead Expenses Excess of Revenue Over Expenses
Dec 11, 2021
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