Financial Guidelines
Many of the expenses for a regional are fixed, either in actual dollars or in percentages. Some expenses are variable, and these are the ones to which the site negotiating committee and the Tournament Committee need pay particular attention.
The starting point is always to estimate the number of tables. This drives the revenue and many of the fixed expenses. In estimating the number of tables, use the following data: a) past history for that tournament; b) past history for other comparable recent tournaments; and c) the estimate provided by the Director in Charge.
REVENUE = number of tables x 4 x session fee
FIXED (or semi-varaible) EXPENSES:
Staff expenses
The director and the caddy master will use the estimate of number of tables to staff the regional. A low estimate will result in lower expenses, but may mean there are not enough directors and/or caddies. A high estimate will result in fixed expenses that are too high. Staff expenses should not exceed 37 % and should be targeted at 35%. Getting cheaper or comped staff rooms will help reduce the staff hotel expenses.
The Caddy Master is typically reimbursed $300.00 plus any caddy sessions worked. The DIC may recommend a bonus if the Caddy Master performs above and beyond expectations.
ACBL sets the reimbursement rates for directors, but every effort should be made to use local TA/s as opposed to flying in higher-priced directors.
The TM is reimbursed at the rate of $75.00 per day. The TM can also apply for mileage for up to two trips to the tournament site.
Sanction Fees
ACBL sanction fees ($4.39 per table or 11% in 2005) and Western Conference sanction fees ($2.25 per table or 5% in 2005) are fixed expenses. The other fees incurred in a regional are GNT sanction fees (paid to the district to help absorb some of the GNT team expenses) and charity game sanction fees (paid to a charity of choice for any charity game designated.) Total sanction fees should not exceed 16%.
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Financial Guidelines (continued)
Supplies
Currently, Ken Dischner receives a fixed percent of table fees ($1.50 per table or
3.4%.) This percentage may need to be negotiated as District 22 tournaments grow, and a sliding scale be used. If the District must purchase additional supplies, due to a shortage provided by Dischner, the cost of those supplies will be deducted from the per table fee paid.
Hand Records
Hand records provided by ACBL run betweeen .2 and .3%. Copying should be negotiated at the lowest possible rate. Total spent on hand recors should not exceed 1.2%. One percent or less should be the target.
VARIABLE EXPENSES:
Advertising
Decisions about flyers and ads need to be made early. Planned advertising costs should not exceed 4% of total expected revenue.
Flyer costs are variable, depending upon the number and type printed.
Print ads are fixed, and the total cost depends upon the number and size utilized.
a) Ads in the Contract Bridge Forum currently run $300.00 per half page, per
issue. Typically, District 22 runs ads in 2 or 3 issues prior to tournament.
b) Ads in Southern California Bridge News (D23 paper) are comped to us as
we, in turn, run their ads at no charge.
c) Ads in the Bridge Bulletin currently run $960.00 for a quarter page. The
committee must make a decision at least six months before a tournament as
to whether an ad will be cost/revenue justified, depending upon the potential
draw of the tournament.
E-Blast - available by ACBL at no charge to a limited territory, depending upon the number of competing regional tournaments (i.e., if there is only one other tournament at the same time, we may get E-blasted to over half the US; if there are five other tournaments at the same time, our E-blast area will be smaller.)
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Financial Guidelines (continued)
Website advertising has a low cost, but is limited to the number of people who know to go there.
Hospitality
Hospitality expenses are the most variable and the most important: spending the right dollars in the right places on hospitality will keep players coming back!
Hospitality expenses include, but are not limited to, the following: rent; food and beverage; hospitality suites; candy; section tops and overall awards; give-aways; cocktail parties; printed area restaurant lists; registration packages; free plays for volunteer workers, pre-duplicated boards for pairs games, etc.
Most hotels and convention centers in the Southern California area ask for high Food and Beverage spending or rent in exchange for ballroom playing space for the week. In negotiating, it is important to keep the number of tables and revenues in mind, and limit the rent and/or gross F & B to no more than 20% of the expected revenue. Total spending on hospitality should not exceed 27% (currently $12.00 per table.)
The local tournament committee should be consulted as the where the hospitality dollars should go. They should have input as to how the mandatory F & B dollars are spent -- whether on coffee, subsidizing a Sunday box lunch, receptions, and/or after-session snacks.
Once decisions have been made on the allocation of mandatory F & B dollars, an assessment should be made of available hospitality funds and how to use these dollars (prizes, candy, additional F & B, give-aways, etc.)
Awards and give-aways
Typical prize budgets are $1.50 - $2.00 for section tops, and $2.00 - $3.50 for overall awards, although prizes can be the same for both.
The number of awards needed can be estimated as follows:
5 per expected bracket in KO's (allows for 4, 5, or 6-person teams)
4 per stratification in Swiss Team and B-A-M games
12 per open pair session
12 per senior pair session
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12 per I/N session
6 per overall per event
The number of give-aways needed can be estimated as follows:
1.5 for every 2 tables estimated at tournament
Intermediate/Novice
The amount budgeted to the Intermediate/Novice program should not exceed 2% of planned table revenue. This amount is typically used for the I/N mailer, postage for same, special prizes (overall awards), free plays for I/N speakers, A/V equipment, etc.
Daily Bulletin
The amount budgeted for preparation and printing of the daily bulletin, plus photography, should not exceed 2.0% of expected revenues.
Printing costs will vary by location, depending upon the number of bulletins printed each day, the tournament size, and negotiations with the printer.
Preparation costs may include a hotel room, a per diem stipend, a fixed dollar amount, free plays, or whatever is negotiated with the preparer.
Photography
Taking photographs for the daily bulletins and/or the Contract Bridge Forum may or may not be an expense to the tournament. If this service can be performed by either the Daily Bulletin preparer, the TM, or the hospitality chairperson, there may already be reimbursement in place. If not, the photographer can be "paid" with money, free plays, or a combination of both, depending upon negotiations made by the TM. If this function is separate from the Daily Bulletin preparation, it should be included in the hospitality budget.
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Additional Revenue Opportunities
The TM and local tournament committee have the option of increasing revenues and spending those amounts on increased hospitality.
Increased revenues are possible by recruiting display booths, ads in the daily bulletin, or sponsors for snack breaks or prizes.
Display booth rates would typically run $150.00 - $250.00 per table, depending upon the attendance. Book sellers typically like to negotiate a per table rate, averaging $.10 to $.13 per table. Strive to have non-competitive vendors.