Subject: Questions & Answers

Ok, this is likely just me being tired...but where is the National Team Forum???? (or subforum)

It was moved from general forum to hockey forum:
ppm.powerplaymanager.com/...

Further talk about finances in this game:

Triple Floor Multi - 1000 seats
1000 seats
$400 a seat
$400,000 revenue

76,000 a day expense
Play 3 Home games every 14 days.

$1,200,000 revenue
76,000 * 14 = 1,064,000

Profit per 2 weeks:
$136,000

Days to build: 100
Apparently you still pay daily fees on things being built.

That's 7,600,000 in fees before revenue.

With only 136,000 revenue every two weeks, it takes 55.8 weeks to make the money back from building the stands.


Now, we'll say a level 10 Maintenence Center lowers the cost to approc $55,000 a day (that is close to reality).
That's 55,000*14 days = 770,000

So a profit of $430,000 every 2 weeks.
At that rate, and the 5,500,000 in fees before revenue, it will take about 13 weeks to make any profit on those seats.

This doesn't take into account the accessories, the cost of the seats, or lost revenue. It also assumes that you are sold out every game, and doesn't include friendly games.

Building stadium seats is a huge hit on cash flow, a lot larger than people probably notice.

It is a long-term investment. My sponsor cash is likely maxed out. I'm reducing staff costs in exchange for stadium maintenance costs since that will make me money in due time.

When the Dallas Stars and Dallas Mavericks built the American Airlines Center, the business plan allowed for up to 10 years before the income would even come close to covering the cost of the build.

Stadiums are long-term investments for your club. They SHOULD take a long time to recover the costs from, that's reality.

oh dawm...Very long-term...

It let me the time to be one day at your level!

Correction to original post:
My weeks are half of what they should be, since I did revenue per 2 weeks. My numbers should be 111 weeks and 25 weeks, not 55.8 and 13.
Sorry about that.



New Post:
Yeah, the funny thing is that I'm just talking about the downtime from profit, not the actual arena cost in terms of making profit.

That facility I looked at costs 38 million.
Since we determined that we make $430,000 every 2 weeks with the level 10 Maint Center... In order to make that $38 million back it will be an additional 176 weeks before you make back the money you spent to build the arena.

So if I have level 10 maint and I buy a 1000 seat Triple Floor Multi, it will be about 200 weeks until I make the money I spent back and begin to turn a profit.


Once again, a disclaimer:
This doesn't include playoffs, friendlies, stands/accessories or TV sponsorship.
It also assumes full attendance though.

200 weeks isn't too bad really, considering stadium size also has an influence on the size of your sponsorship offers. So, there are a lot more factors involved.

More stands mean more stalls, food, merch. etc. So yeah it takes a while to pay it off, but it's really not all that unrealistic.

You should consider the fact you're only making money on what you upgrade. So from 250 to 1000 is only 750 extra seats...

Re: trueblue55
200 weeks isn't too bad? Are you serious?
200 weeks is almost FOUR YEARS!
Let's say that my calculations are only off by half... then that's still two years of waiting for profit.

Also, I know that I didn't include all possible profit, but I didn't include all expenses either, and I assumed 100% attendance.

It is too late to run the numbers with other figures, but I can later. Tell me what you think is a good approximation for revenue over 2 weeks?

This season I have 27.5m in ticket sales, which goes with my 1.5m in souvenir sales. We'll be more generous than this though, we'll say that souvenir sales are what? 10% of your ticket sales?
That brings my revenue per 2 weeks from 430,000 to 470,000? That extra 40,000 per 2 weeks brings my 38 million to make back my original investment from 176 weeks to 161 weeks. Add on the approx 20 weeks (adjusted to your figures) of money lost for downtime... and we're still pushing over 3.5 years.

Oh, but what about skyboxes? Currently my skybox rental is about 10% of ticket sales, so we'll make it 510,000 per 2 weeks. That puts us at 149 weeks now to repay the 38 million.

Oh yeah, I didn't even use the expenses they create, nor did I even talk about those random expenses you get from vandals.

Now, how much of an increase do you think the Media Sponsorship will be? I make 1.1m right now, and that's 5 star.

Think the sponsorship increase will be enough to suddenly make buying large rinks suddenly better deals? I doubt it. Increasing our profit per 2 weeks by nearly 20% only reduced time until profit by 27 weeks, about half a year.

3.5 years to go!


Re: canucks357
I'm afraid to do a study of that, especially since it will have the same expense margins but smaller profit increase margins.

I wonder if the Dev Team did any real calculations for staff salaries and arena costs.

It looks more and more like they just slopped together numbers that looked good in their head.

Hey man, when your fat sponsorship rolls in and you start making 2 million per sellout, that 38 million will disappear from your thoughts.

Just to chime in on the TV sponsor deal. If your General deal is 150m or more adding a 2500 multi will increase your TV deal enough to cover daily maintenance (without factoring in your Maintenance Center, but also ignoring the accessories). As for a 1000 multi, because it is more expensive on a per seat basis your General needs to be higher as well, somewhere around 180m.

Interesting calculations, but neglecting media sponsor money is hugely skewing it, I think. As I (roughly) understand it, the media sponsor is tuned to cover your arena maintenance, plus some extra (usually). You only eat the added maintenance costs until the next sponsor deal comes in. From then on, they cancel each other out.

Can any managers that have built up their arenas quite a bit confirm that the media sponsor deals increase enough to cover weekly arena maintenance?

Will have to wait and see what Deadrick says next season. All his trips just finished this season. So find out how much of a change in Media Sponsor he made from last season to this next one.

In other news, I just started my 5th triple level. I'm starting with 1000/section to get the sections established and be able to build the skyboxes/press centers/etc..

Then as more money rolls in, gonna upgrade them all to 2500. IT's exciting times in Saints hockey.