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Mr Skelly And The TT...


La Colombe

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2 hours ago, Rob Callister said:

Thanks Declan

The original post on IOM ONLINE was incorrect, but has now been corrected. 

It is worth noting that the £136,832 profit goes straight back into the event - therefore reducing the Manx taxpayers contribution 

How can it go straight back into the event as Skelly’s answer confirms it cost you over £450k to provide the VIP set up; so actually you lost money on it as Andy Onchan points out above so the loss actually adds to the taxpayer costs of subsidizing the event (ie, providing services where the ticket sales for those services dont actually meet the cost of providing those services in the first place). In business that’s whats commonly referred to as a “loss” 

 

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13 minutes ago, thesultanofsheight said:

How can it go straight back into the event as Skelly’s answer confirms it cost you over £450k to provide the VIP set up; so actually you lost money on it as Andy Onchan points out above so the loss actually adds to the taxpayer costs of subsidizing the event (ie, providing services where the ticket sales for those services dont actually meet the cost of providing those services in the first place). In business that’s whats commonly referred to as a “loss” 

 

It’s a negative profit, I think you’ll find.

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14 minutes ago, Derek Flint said:

It’s a negative profit, I think you’ll find.

Yes I’m sorry. Please let me put my DfE / Laurence Skelly / Rob Callister beer-goggles on for a moment. It’s not a loss, it’s a negative profit. But then again there will be lots of other areas of profit that we just can’t put our finger on as yet that will probably transform the £300K plus negative profit into a roaring financial success. We just need to wait for someone to invent some new form of quantum accounting that explains it all to non-government people. 

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So...

£1760

39 minutes ago, thesultanofsheight said:

How can it go straight back into the event as Skelly’s answer confirms it cost you over £450k to provide the VIP set up; so actually you lost money on it as Andy Onchan points out above so the loss actually adds to the taxpayer costs of subsidizing the event (ie, providing services where the ticket sales for those services dont actually meet the cost of providing those services in the first place). In business that’s whats commonly referred to as a “loss” 

 

I think we've moved on from when Andy posted.

£136,832 is profit on ticket sales not revenue. 

This was met with skepticism. But it seems that figure is looking at VIP packages rather than entrance fees to the entertainment.

There are loads of assumptions because the original question was poorly worded and DofE are being economical with the info. 

Looking at the 2017 in the FOE request, a total of 1760 VIP packages were sold Max Power tells us the minimum charge is £250 for these packages -assuming the same take up this year that would be revenue of £440,000. On top of that some sales for the entertainment itself, and some at the higher rate, and with costs of £418,300.00 it's feasible that they made a profit of £136,832. 

(But there's plenty of variables and assumptions in that... plus didn't the bars make any money? And of course the multi-million pound question of do the sponsorship and hospitality and other income streams meet the governments costs of staging the TT). 

 

 

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21 minutes ago, Declan said:

I think we've moved on from when Andy posted.

£136,832 is profit on ticket sales not revenue. 

Regardless of what you think it all pretty much goes to show that they don’t account for any of it properly and they don’t actually have a bloody clue whether the event makes a profit or not. Or whether individual parts or features of the event make a profit or a loss. They can’t know that as they can’t even answer a simple question like the one that was put to them without being deliberately misleading.

Financial meetings in IOMG must be a real hoot. Do they reach for some magic fairy dust at the end and sprinkle it over ledgers? 

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