Our client is the Organizing Board (OB) of the Extreme Athlete World Summer Games.
Business situation
The Extreme Athlete World Summer Games will be held in Los Angeles in four years. The World Games will showcase 7,000 athletes across 24 sports and will attract an estimated 500,000 spectators from across the globe. These sports will take place across eight venues in Los Angeles and will have a significant charitable component – tickets will only be sold for the opening ceremony.
Problem statement
The OB was recently established and currently has no cash. Short-term external financing will be necessary, especially given the Board will ramp up to approximately 160 full-time staff over the next three years. Currently, Deloitte is working with the CEO and COO to help develop the four-year budget and strategic business plan.
Question 1
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Your Answer
Correct Answers:
A: Donations
B: Corporate sponsorships
C: Broadcasting rights
A good answer would incorporate categories and explanations such as:
Ticketing – currently, management plans only to sell tickets to the Opening Ceremony but could sell tickets to both sporting and entertainment events as additional sources of revenue
Merchandise – gear / clothes, pins , coins, and other memorabilia
Concessions – food and beverage sales at sporting events
Donations – non-corporate donations or value-in-kind contributions due to the significant charitable component
A great answer would go a step further and include:
Corporate Sponsorships – given that there will be an expected 500,000 spectators in attendance
Broadcasting Rights – given that the event is in Los Angeles and given the size and international flavor of the event
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