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Originally Posted by scottrleo1
actually it doesn't explain it at all. Why would the projected numbers on the left hand side be correct, but the projected numbers in the middle be -32 mil?
It doesn't make any sense.
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It really does...the numbers in the center column are real "year-to-date" numbers.
The balance at the bottom is *projected*, based off averaging out those year-to-date numbersover the course of the season. It's a running balance sheet. You can't assume how much gate/merchandising revenue a team will receive in August or September when it's still only April. So those numbers are averaged out over the course of the year to get a projected balance. It's basically a running balance sheet.
Any company uses a running balance sheet and projects its numbers to figure out where it needs to improve. I'd like to see Scott's "advanced financials" page to see if attendance has decreased on average from the year before. Plus he may have started out the season on the road and therefore not earned as much gate revenue from home games yet.
Plus the $1million scouting expense has already been deducted from the bottom line. So, statistically speaking, that $1million is a lot more expensive on 4/22 than it will be on 10/1. BUT remember, the $25mil media revenue is already added in, which accounts for the majority of the current profit, as well as balance. Again, that $25million is worth a lot more now than it will be on 10/1.
It really does work...the key is to not be overly concerned with the current balance and profit/loss, because that is constantly changing the deeper you get into the season.