Mystique 5 v 5 Summer Classic

Darin Yrigoyen, Dylan Ross, Riley ONeill, Tommy Shute

 Overview
1. Purpose
2. Target Audience
3. Marketing
4. Tournament
5. Budget
6. Revenue Goal
7. Additional Revenue Suggestions
8. Charts / Spreadsheets
9. References

Purpose
 The Mystique Ice Arena has come to us with the hopes that we can

provide them with a logical, financially savvy idea to help the arena make

more money during the summer months. Our report contains research about

the possible economic impact on Mystic Ice Arena if they were to host a

summer outdoor street hockey tournament. Our group discussed a variety of

possible routes we could direct this research, but after speaking with

Professor Marx we decided a street hockey tournament would be the best

route. The reasoning behind our decision being, the rink portion of the arena

is not air conditioned so putting a couple hundred people inside during the

hot summer months would be an issue. This left us with the only other

option, hosting an event outside in the parking lot. What better to host in the

parking lot of a hockey rink than a street hockey tournament? Yes, hosting

this would cost a little more money up front than an average off-season

event, but we believe the economic impact will be much greater than the

initial investment. Not only will this event be successful in year one, but we

believe it has staying power in years to come as more and more people

become aware of the event and want to participate.

Target Audience

The target audience for this event will range from youngsters who have

just recently begun the sport, to middle aged men who still have a love for

the game. We will have three age groups, 11-under, 15-under and 21+ with

the option of competitive or recreational play. These age groups will ensure
good competition and a reasonable schedule. We believe finding enough

players to fill these spots wont be an issue considering the amount of

hockey teams and players we have in Dubuque, not to mention the

immediate surrounding states that have players that would make a team.

The arena will provide the nets, boards (bales of hay) and officials, but it is

up to the individuals to provide sticks and helmets. Helmets may be rented

through Mystique, but number and sizes are limited. Athletic shoes, shin

guards and gloves are recommended.

Marketing

Our plan to market the event is to minimize costs to almost nothing

while maximizing awareness to all the ages that can participate. First, we

need to be active on social media. We need to make people know that this

event is happening on Facebook and Twitter predominantly. The younger

portion of society under 40 years old is who our target audience is, and this

is by far the best way to reach them

Partnering with the YMCA could possibly entail having some of the

Saints players going to put on a showcase to advertise the event. The YMCA

also has direct ties with all the schools in the area, which will make getting

fliers or things in all the surrounding schools relatively easy. This partnership

could easily be backed by allowing them to have a part in the event to create

awareness for their programs.

Getting our Facebook page and Twitter page going is a must, especially

if we are planning to have this event become annual. It would also be a good
idea to pursue local colleges for those students who are 21+ and would be

interested in such an event. Also, communicating with all of the schools

(high school and college) alumni groups will help to spread the word about

the event. We realize that more revenue will be generated by a larger

audience and see this events development into something of a yearly

tradition.

The only expenses would be having someone make a Twitter and

Facebook which no one needs to be added on staff for that. Then, paying for

fliers which is a simple task in making. The only cost would be paper for the

fliers.

Tournament

There will be three age groups, 11-under, 15-under and 21+ with the

option of competitive or recreational play. There will be 10 teams of 6-10

players for the 11 and 15-under age groups. Then for the two 21+ divisions

each team will be comprised of 10-12 players, there will be 8 teams in each

division. These games will be round-robin style and each team is guaranteed

3 games which will consist of two 15-minute halves. All age division games

will include two 15-minute halves. The two teams with the best record will

play in the championship game directly following round robin. Tie breaker will

be goals scored.

Budget
 In establishing a budget for this endeavor, we did some careful

research to price the different items that would be necessary to run an

effective event. The in-depth details are included on the spread sheet,

however we would like to provide some explanation as to how these numbers

were formulated. Pricing for the hay bales was based on the going rate for

hay in the area, which was found on the Iowa State agriculture website. We

then converted the surface area of a single bale to figure out how many we

would need to build two 150 x 50 rinks. The cost of food figures came from

rough estimates based on the prices that were listed on bulk-retailer Sams

Clubs website. Via USA hockey, the average pay for a referee is roughly $25

per game for a full-length game. We decided that referees would earn on

average $15 per game in this tournament because of the shorter games. We

will be serving beer during the adult portion of the day, and factored in the

rental of kegerators and purchase of kegs to the alcohol budget. All winning

teams will receive prizes, with the younger children getting signed pucks

from Dubuque Fighting Saints players the adult prizes being replica Stanley

Cups. As far as staffing is concerned, we factored in the need for three

employees to work the concessions for the entirety of the day and two more

attendants specifically for beer starting at 6 pm. All equipment rental prices

were taken from the Iowa City-based Big Ten Rentals, Inc. and include one-

day rental and delivery fees. The final number of $10,563 is the total dollar

amount of expenses that will be required to carry out this event.

Revenue Goal

Revenue for this street hockey event will come in from 3 separate

sources: participation fees, concessions, and alcohol. Our biggest contributor

to our revenue will be the participation fees. Both youth age groups will pay

a participation fee of $30 per player and we are looking to fill 10 teams of 8

players for each youth age division. If we reach our participation goal at the

youth level, that will bring in $4,800 of revenue without even incorporating

the revenue the adult participation will bring in. For the adult participation

fees, we have raised the price to $60, but this price includes your

tournament fee as well as 6 drink tickets. Also for the adults we have broken

them down into two different sections, a recreational tournament for the not

as serious player, and a competitive tournament for the teams that are more

serious about winning. We are striving to get 8 teams of 10 players in each

division. If we hit our participation goal for both the adult and youth divisions

we will bring in a revenue from participation alone of $14,400, $4,800 from

the youth and $9,600 from the adults.

For concessions revenue, we had to think about the how many

spectators we expect to attend this event. Our ultimate decision was to

assume that our concession revenue was going to be made early in the day

during the youth tournament and not during the adult portion of the event.

We decided at the youth tournaments we can expect an average of 1.5

family members per kid, knowing some may bring more/less, but we felt this

was a reasonable number for an estimated average. That would give us 240
total spectators. Based on the number of spectators, we put together a list of

foods and the quantity we will need for each item. After deciding how much

to order and looking at our expenses we came up with prices for each item

and also calculated a concessions revenue based on selling 66% of what we

actually ordered. Our concessions revenue based on selling 66% of our

inventory will come out to be $2,565 and thats not even including what we

anticipate to get for revenue on alcohol.

Alcohol was our lowest source of revenue and the reason for this is

because of the alcohol is already included in the participation fee for adults.

Because of the inclusion on the six drink tickets in the participation package,

we are not anticipating a large amount of other alcohol being purchased.

However, we will have alcohol ready to sell and we are hoping to earn a

revenue of $1000 on alcohol based on the excess amount.

Our total revenue goal comes out to $17,965, which would leave us

with a profit of $7,402 after taking out all our expenses, which totaled

$10,563. All our revenues and expenses can be viewed on the spreadsheet

that we have created.

Potential Additional Revenue

Sponsorship opportunity with casino for adult portion of event

Drop your kids off in the party room off the main concourse to be

watched during your games, could charge $10 a kid.

Other sponsors have tents present

Expenses
 Revenue

Expenses

Hay Bales (Rink) Hay Bales (Delivery) Concessions

Referees Alcohol Prizes
Staff Miscellaneous Equipment Rental
 Revenue

Participation Fees Concessions Alcohol

References
Referee Pay:
https://www.glassdoor.com/Hourly-Pay/USA-Hockey-Referee-Hourly-Pay-
E37897_D_KO11,18.htm
Hay Bale Prices:
http://www.extension.iastate.edu/iowa/page/hay-prices-mid-late-september
Rink Size / Rules:
http://www.teamusa.org/usa-roller-sports/inline-hockey/inline-hockey-vs-ice-
hockey
Beer / Keg Prices:
http://www.matesichbeer.com/keg-pricing/?age-verified=6ae8de7662
Rental Equipment Prices:
https://bigtenrentals.com/rental/concessions/grills/
Concessions Prices:
http://www.samsclub.com