Accounting - Cysl League

Case Study

Based on the case study I would recommend that the CYSL league should continue to host the Craddock cup, however the overhead expense made for the Craddock cup should be revised. The study suggest that even if the CYSL discontinues to host the Craddock cup the salary for Rivaldo and two of the other employees would still be the same. Hence, Rivaldo’s salary is constant and can be removed from the expenses (CYSL salaries). The CYSL salaries should only consist of Jansten’s salary. This will reduce the CYSL salaries expenses from $18,300 to $12,000.

With reference to column 2 in Appendix: Expenses for 64 teams: Increasing the teams from 32 to 64 will also increase the participation of younger siblings of the participants. Assuming the participants increase from 216 to 350, the revenue and expense will also increase. One day expense is 350 * 6$ = $2,100, so for 2 days it will be $2,100 *2 = $4,200. The expected financial impact for adding 32 additional teams in shown in column 2 (Expenses for 64 teams) in Appendix. Certain expenses will be double as they are directly proportional to the number of participants/teams. The expenses for T-Shirts, concessions, player Insurance will be doubled as a result of this. The 32 teams are using 8 fields for 7 days, 2 fields are still not being used. So to accommodate 64 teams we need 8 more fields. Since 2 fields are already available, league only needs to rent remaining 6 fields. They can do this by renting fields form the local schools at a cost of $150 per day per field. Cost of one additional field per day = $150, so the remaining 6 fields per day will cost: $150 * 6 = $900. The additional 32 teams only need to use the fields for 2 days for the tournament, hence the league can rent the fields only for 2 days making additional field expenses to be $900 * 2 = $1,800. Similarly, for addition goal post cost of two goal post per day = $60. For 6 additional fields per day cost will be: $60 * 6 = $360 we need to rent goal post only for 2 days, hence expenses for that would be $360 * 2 = $720.

With reference to column 3 in Appendix: Expenses for 64 teams with breakeven increase in registration fee. As per Rivaldo’s financial plan, by increasing the tournament’s advertising budget by $1,000, might cause an increase of college recruiters by 15 which would also require CYSL to increase the number of published face books from $75 to $95. Additional 15 recruiters, means increase in the hotel expenses. Predicting that the number of scouts/recruiters will increase from 25 to 40, the expense will be, the expenses on hotel would be 40 * $160 (for two nights) = $6,400. Also the increase in face books from 75 to 95 would make the total expenses on face books as 95 * $6 = $570. Considering this additional expenses, the total expenses would be $80,882 with an increase of $80,882 - $77,362 = $3,520. In order to fund this over expense, the