Wednesday, February 23, 2011

How Much Does DPT Cost You?

J. Korb will love this, since he thinks we exaggerate things.  But let's try to figure out how much DPT cost WAKA this spring season.  All of these estimates are... estimates... and not necessarily facts:
  • Approximately 380 played in Bayshore last season (23.75 per team).
  • Bayshore has 10 teams currently.  Allegedly, only BnD filled up to 26 people, and only a few others had 18+ before the smaller groups were combined.  So my personal guess, is they have about 19 people per team. This puts 190 in the league, down 190 from last season.
  • WAKA lowered their rates from $72 to $62 in order to combat our exodus to other cheaper leagues.  Eventually, they raised the price up to $67, but well after they initially said they would.  So I'm going to assume the average player paid $63 for the season.
Those are our "base assumptions."  Let's apply this to some math with some extra assumptions sprinkled on it:
  • IF MLoop hadn't gotten his feelings hurt and actually communicated with us, it's safe to assume we'd still be in WAKA.  Therefore they would not have dropped their rate for the season.  Right off the bat, you can estimate revenue lost from player reduction: 190 lost players * $72 = $13,680.
  • But what about the 190 people who did sign up (over half are new to Bayshore)?  Well based on this model, they paid about $9 less than they would have.  So... $9 reduced rate * 190 players = $1,710.
  • Finally, PAL informed us that WAKA rented out Wednesday nights this winter, and thus Kickball Society could not use the fields.  Obviously there is no WAKA league going on, so we can only assume based on PAL's explanation that the fields were rented to keep competitors out.  Well that costs you about $3,000 per season.  We can't confirm any of this since we severed our relationship with PAL... so let's call it $2,000 and assume a discount for not actually needing the lights.
What do we get?  $13,680 + $1,710 + $2,000 = $17,390 opportunity cost for one season.  And that doesn't include any extra marketing they had to do since we used to be a self-sustaining and self-promoting league.

I actually think $17k doesn't even phase our old league.  But still seems a bit foolish.

11 comments:

Ryan said...

Relationship or not. PAL can't hide anything. If you want to examine each and every one of their contracts, as well their financial statements, just ask them. They have a certain time frame to give them to you (14-21 days) after that, the state will demand the documents from them for you.

Ryan said...

I have a hard time believing WAKA "paid" PAL $3,000 for nothing.

Chandler said...

Well if they didn't pay for the fields... PAL threw them one Hell of a bone in order to keep KBS out. Especially since KBS was willing to pay the $3k. There are kids running around Tampa without shoes because of this nonsense.

Alison said...

That's an expensive "training program."

I thought I heard that the Tuesday Breaker league wasn't full either because some of them came over to Thursday nights. Any truth to that?

Jack from Off Constantly said...

Look, this is all great, but it is REALLY distracting people from making picks with commentary. That should be DPT's crusade right now. Thanks.

Chandler said...

Tuesday has 10 teams, and I imagine more players than Bayshore for the first time in history. Somewhat sad to see the decline of a premier league. But... fuck 'em.

Brian L. said...

anyone interested in getting a massive group together and streaking at the WAKA tournament day?

YellowBird said...

Best idea I've heard in a while.

J.W. said...

Like Chandler said, Butt-fuck 'em. Mloop and kegger do it to each other all the time.

trinihic said...

I am actually with Litman on this one.. hahaha

Brian L. said...

If Teneile goes I'm wearing a blind fold.