Mr Skelly And The TT...

[La Colombe]

...in the news again.  It's only money. And it is the TT where any sort of accounting seems unnecessary. Just think of the publicity that would have cost, ooh, half a billion? 

[Neil Down]

Speechless!!!

[quilp]

You beat me to it LC. A bribe by any other name. What did Skello say, the various sponsors wouldn't be happy if they didn't splurge on the VIP tent. Half a mill and I bet my coat the expenditure didn't stop there.

[Non-Believer]

Nonsense. It brought in nearly £3M worth of advertising (entirely estimated/assumed) although it's difficult to actually put a price on the value of course, and justified many, many DfE positions.

More importantly, it entertained many of the Island's Great and Good and Social Climbers at the expected cost to the plebs. Which the plebs are entitled to.

A thoroughly decent deal for the taxpayers.

[Declan]

"Enterprise Minister Laurence Skelly said the cost of the acts totalled £52,722.

Total cost of catering, refreshments and contractors was £418,300. Provision for VIP guests was £298,124.

Direct ticket sales was £136,832 but Mr Skelly said that significant sponsorship revenue would be lost if sponsors did not have access to the hospitality unit."

 

I am I right in reading that's - 

a total cost of £471,022 (acts plus infrastructure)

against a total revenue of £434,956 (ticket sales plus hospitality's contribution to the total sponsorship pot) 

That's a £36,066 loss. 

 

 

 

[quilp]

Usual slipshod reportage. 

[Andy Onchan]

20 minutes ago, Declan said:

"Enterprise Minister Laurence Skelly said the cost of the acts totalled £52,722.

Total cost of catering, refreshments and contractors was £418,300. Provision for VIP guests was £298,124.

Direct ticket sales was £136,832 but Mr Skelly said that significant sponsorship revenue would be lost if sponsors did not have access to the hospitality unit."

 

I am I right in reading that's - 

a total cost of £471,022 (acts plus infrastructure)

against a total revenue of £434,956 (ticket sales plus hospitality's contribution to the total sponsorship pot) 

That's a £36,066 loss. 

 

 

 

Or is it?:

Total cost (52,722 + 418,300 (including VIP)) = 471,022,  less ticket sales 136,832 = 334,190 loss

Looks like the usual creative accounting from DfE finance people.

[Declan]

15 minutes ago, quilp said:

Usual slipshod reportage. 

Yeah, Hansard presents it differently - 

"The Minister for Enterprise (Mr Skelly):

a) Total costs:

• i) Performers – The cost of bringing the three acts to the TT and Classic TT in 2018 ran to a  total of £52,722.32;
• ii) VIP guests – The total cost of provision for VIP Guests on race days across both events was £298,124.00, this includes the costs of catering and refreshments, bar provision, management and staffing;
• iii) Complimentary tickets – the total notional cost for the provision of complimentary tickets across both events in 2018 was £8,625.00;
• iv) and v) the total cost for the provision across both events in 2018 of catering, refreshments and contractors costs was £418,300.00;
• vi) As to the total cost of delays to racing, there was no cost attributed to delays in racing as only one delay occurred on the first Saturday of race week when the sidecar race was delayed  until 1900. As the unit closes at 1700 on race days no additional cost was incurred.

b) The direct overall financial profit from the hospitality tent from direct ticket sales alone was £136,832 for the 2018 events, however, there is also a financial benefit that it is not possible to allocate, apart from those tickets that are part of a sponsorship agreement (and included in the calculations), where there is also a significant percentage of sponsorship revenue that would be lost if sponsors did not have ability to access the hospitality unit."

http://www.tynwald.org.im/business/hansard/20002020/t181211.pdf  (page 49)

I'm confused - is £136,832 revenue from ticket sales or profit?

 

[Declan]

8 minutes ago, Andy Onchan said:

Total cost (52,722 + 418,300 (including VIP)) = 471,022,  less ticket sales 136,832 = 334,190 loss

I'd say it's legitimate to get a contribution from the Sponsorship pot to cover the expenditure of providing hospitality. (It's still income just from a different revenue stream).

Anyone know what the total sponsorship pot was (and associated costs)?

[The Lurker]

'The direct overall financial profit from the hospitality tent from direct ticket sales alone was £136,832 for the 2018 events'

The word 'overall' would indicate that the venture made a profit but it's cleverly worded to be ambiguous; clarification is required.  

[Declan]

20 minutes ago, The Lurker said:

'The direct overall financial profit from the hospitality tent from direct ticket sales alone was £136,832 for the 2018 events'

The word 'overall' would indicate that the venture made a profit but it's cleverly worded to be ambiguous; clarification is required.  

But that would imply a total revenue from ticket sales "alone" of £555,132 (costs of £418,300 plus profit of £136,832). 

How much were the tickets? 

[Non-Believer]

5 minutes ago, Declan said:

But that would imply a total revenue from ticket sales "alone" of £555,132 (costs of £418,300 plus profit of £136,832). 

How much were the tickets? 

And how many were complimentary/freebies?

[quilp]

[The Lurker]

8 minutes ago, Declan said:

But that would imply a total revenue from ticket sales "alone" of £555,132 (costs of £418,300 plus profit of £136,832). 

How much were the tickets? 

No Idea; but rough maths shows that if tickets were £20 each they'd have to have sold about 28,000 to make that amount.

[Max Power]

12 minutes ago, Declan said:

But that would imply a total revenue from ticket sales "alone" of £555,132 (costs of £418,300 plus profit of £136,832). 

How much were the tickets? 

I think the normal VIP tickets are around £250 and top level £1,250. They don't seem to be on the website yet.