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Forum > FAQ's, Player Guides and Newbie Help > A Quick Stadium FAQ: Construction vs. Expansion
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scarletmbb
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Originally posted by AD28
How long does adding seats take during the season? If i'm adding 1000 seats today when will that be ready? Tomorrow? Next week?


As long as it's not a section construction, it'll be added immediately. But tickets for the new seats won't be sold until tonight.
Last edited Apr 26, 2008 06:02:26
 
Joe Buck
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mrstickball this is good stuff. Thanks for your work!

I have the same question as the MightyPoopster. ROI calculations assume a certain ticket price.

But Poopster it is possible to backsolve what numbers were used.

By my calcs,

100 endzone = $34
100 corner = $34

etc.

mrstick - could you give a sample calc for one of you compounded interest results? i'm having a hard time getting my numbers to match yours. I get a simple interest ROI on expansion of 100corner as 27.2%, but cant figure out how often or by what assumptions you are compounding that.
Last edited Apr 26, 2008 06:14:22
 
AD28
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Originally posted by scarletmbb
Originally posted by AD28

How long does adding seats take during the season? If i'm adding 1000 seats today when will that be ready? Tomorrow? Next week?


As long as it's not a section construction, it'll be added immediately. But tickets for the new seats won't be sold until tonight.


Thanks man
 
Mrstickball
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Originally posted by MightyPoopster
MrStickball, great info and thanks for the work/sharing.

The only question I have is...what were your baseline figures in terms of ticket prices? I am assuming that you operated under the assumption that 100% of built seats would be sold in every game, for the expected price.

I think that expansion ROI would be dependent on a couple of things: how many of each seat category you sell, and how much each seat is sold for.

Expected prices for seats vary from league to league, and each owner sets the actual price. Sales are effected by community support, price, and wins/losses, right?

So, the ROI could be drastically different based on an increase or decrease in sale price (when protracted over the course of many seats and games). The same change in ROI % could be noted if all seats were not sold.

Just my thoughts


Very true. My ticket prices were based on the "base level" pricing that a newbie team would figure to make (ie, my newbie team), and sell out. I forgot to state those 2 facts.

I will edit ticket prices in, but the ticket prices, based on selling 100% of tickets, are:

100 SL: $45
100 CLB: $105
100 Corner: $38
100 EZ: $34
200 SL: $334
200 CLB: $70
200 LUX: $225
200 Corner: $28
200 EZ: $24

And 300 SL will be based off of either $16, or $18, but I haven't checked.

And yes, ROI would change depending on what the league's average ticket price is: you could see less, or more demand for tickets, therefore change the ROI. However, the ROI would change over all parts of the stadium, and ticket pricing, therefore would stay "locked" to the ratios that I have given - unless I am not understanding the GLB system.


Scarlet - Good point. I didn't take concessions into consideration because I have no data to extrapolate concession sales (this is my first season as an owner in GLB). And I agree that concessions would indeed skew numbers in favor of the offseason builds, since prices are $543/seat, and $769/seat for respective 100 and 200-level seats. However, an important point of this, also, was defining at what week of play, should you consider, and abandon the idea of expanding your current seating vs. construction.

Take a look at my stadium, currently. It's certainly not the best, but I'm projecting that through my investments, I will probably have a good bit of the lower 100 seating constructed by next of season - without selling players for profit, or anything outside of ticket sales (and mind you, my team's salary for a newbie AA#2 league is near $1m/yr).

AD28 - Not sure if someone answered your question, but expansion seating construction is instantaneous. Build 1k seats now, fill them with people in 15 minutes.
 
Mrstickball
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Originally posted by sbuck143
mrstickball this is good stuff. Thanks for your work!

I have the same question as the MightyPoopster. ROI calculations assume a certain ticket price.

But Poopster it is possible to backsolve what numbers were used.

By my calcs,

100 endzone = $34
100 corner = $34

etc.

mrstick - could you give a sample calc for one of you compounded interest results? i'm having a hard time getting my numbers to match yours. I get a simple interest ROI on expansion of 100corner as 27.2%, but cant figure out how often or by what assumptions you are compounding that.


Hopefully my post above explains that I used the price of $38 for Corner seats to explain the 30.40% simple ROI for Corner seats.

For compound interest, you can get your numbers a few different ways, to explain the value (or lack thereof) of investing in expansion seating early on vs. waiting.

If you do what I've done, and buy your expansion seating before any games, and keep re-investing, garnering alot of "compound interest", by using the just-raised cash from expansion seating, and funneling it into more, and more seating, watching the fans continue to pay for your tickets before the games start (in my league, I've already sold out the first 5 home games in a little over 16hrs, and I've added somewhere near $3m in expansion seating, and that $3m in expansion seating has yielded me about an extra $750k in profits. More than enough, I think, to offset the extra profits from waiting for construction in offseason).

Anyways, back to compound interest: if you "compound" your interest as much as possible before your games start, depending on how many games you have available, your numbers can greatly differ. When I gave estimates on compound interest, it assumed you would earn, and compound interest X number of times (ie, you re-invest in expansion seating 3 times, and sell out 3 times, re-investing earnings each time).

But earlier in the year, you can compound your interest ALOT, and earn huge dividends, as I explained.

Lets look at the "what if" scenario if you purchasing $1m in Expansion, 100 SL seating at the beginning of the year, and what kind of profits you could make should you re-invest each time. By my calculations, you should be able to re-invest your profits about 5 times from $1m on 100 SL and 100 CLB (but we'll use 100 SL for this formula)...So assuming you can get in 8 Home games:

"Day 1": Buy $1,000,000 in SL-100 Seating, Tickets sell at $45/ea. Sell said tickets for a profit of $360,000.

"Day 2": Re-invest $360,000 in more SL-100 expansion seating. Yadda yadda yadda. Sell tickets for $129,000

"Day 3": Re-invest $129,000 in more SL-100 expansion seating. Sell tickets for $46,656

"Day 4": Re-Invest $46,000 in more SL-100 expansion seating. Sell tickets for $16,796

And of course, after these number of trades at $1m, you could keep drilling down, but it couldn't be from your own cash. Sufficive to say, your $1m investment in expansion seating just earned you, by using the profits to sell more seats, $550,800 and added an extra 550 100-SL seats. That'd be the same amount of interest you'd get from the 100-EZ Expansion. Therefore, I can easily say that "buying expansion seating at the beginning of the season is certainly advisable as opposed to waiting till next year", as waiting WILL NOT bring you a better return on investment.

So for everyone wondering: go buy the 100 SL Expansions, and re-invest your earnings, rather than wait. You WILL make more money (as my numbers don't include the profits from concessions).

Again, that's not attempting to say "max out your expansion seating at all costs", because theres only so much you can expand that. But again, if you find yourself short of the $1m needed for Corner Expansion seating, don't feel bad about expanding your 100SL and 1000 CLB seating to max capacity, continuously re-investing your extra profits. Again, if you play your cards right, $2m in expanding both CLB and SL will return you around 50% that year, or $1m - which is pretty good.

 
Mrstickball
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So with all of that said, what is the preferred method of expanding your stadium for maximum profits? By priority, you should expand your seating in the following way (mind you, under perfect conditions, with as much available cash as possible):

100-Endzones ($3m in Construction Fees)
100-Corners ($4m in Construction Fees)
100-Sidelines ($2m in Expansion Fees)
200-Sidelines ($5m in Construction Fees)
200-Luxury ($2.5m in Expansion Fees)
100-Corner ($2,640,000 in Expansion Fees)
200-Corner ($6m in Construction Fees)
100-Endzone ($1,980,000 in Expansion Fees)
200-Sidelines ($1.9m in Expansion Fees)


In that order, you'd get your best return on investments for your first $29.02m in stadium expansion(s)...But again, you have to weigh current expansions vs. future constructions.

 
scarletmbb
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Very cool, that's the analysis I made too when I was crunching the numbers which is why I took out a loan and bought an endzone even though I have a new team. But now the loan is all paid back and I'm hopefully on the way to a good financial future, haha.

 
Wavy77
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Is it smart to use 1500000$ in constructing home endzone seats for a new team?
 
scarletmbb
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Originally posted by Wavy77
Is it smart to use 1500000$ in constructing home endzone seats for a new team?


Not now because you can't build during the season, you can only construct it during the offseason. Right now it's a better idea to spend that money on buying seats for your 100 level sidelines because you get those immediately.
 
Badfish1060
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Thank you.

I was just about to start messing around witha spreadsheet
 
Wavy77
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Originally posted by scarletmbb


Not now because you can't build during the season, you can only construct it during the offseason. Right now it's a better idea to spend that money on buying seats for your 100 level sidelines because you get those immediately.


Ok thank you. What is a decent amount to add?
 
scarletmbb
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As many as you can while having enough money to pay for your year's salary (you want some cushion).
 
Wavy77
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So we're having 2800k and salarycosts about 1000k a year. Should I spend like 1500k in adding seats then?
 
scarletmbb
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Yeah, you can do that and be pretty safe.
 
Wavy77
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I noticed that most home games were sold out. Would the new tickets be sold on match-day or before that?
 
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