USA Volleyball Gross Profit Projection. In early May, TSIG announced a deal with USA Volleyball, the governing body of organized volleyball. There was very little reaction to the announcement. Below is my analysis of the gross profit. I started with the averages used in analyzing the Lifetime Learning (LL) deal, but tweaked them to account for the fact that people actively choose to participate in volleyball and have bothered to join a national organization.
USA Volleyball has 129,000 registered members. We will assume that 45% will participate in the fund-raiser. That number is higher than the 30% of school kids who participate in fund-raisers and reflects the voluntary participation of the volleyballers. Assume that 58,000 teenagers sell $60 worth of cards (6 cards each or 348,000 cards). This is greater than the $40-per-kid used in LL and reflects the age of the sellers, the voluntary nature of their participation, and the fact that they will more directly benefit from the fundraising. Card revenue is [1/2 {$60 x 58,000}] is $1,740,000.
We are told that 30% of cards bought are used to buy 4 CD's each. Thus, assuming $1.00 profit each, CD gross profit is figured as follows: .30(348,000 cards) x 4CD's/card x $1.00/CD = $417,600. Gross profit due to cards and CD's is $2.1 million. Summary is below.
***USA Volleyball Gross Profit Projections***
45% of 129,000 members or 58,000 people participate
each participant sells $60 worth or 6 cards apiece
348,000 cards x $5 is $1,740,000 in card revenue
30% of cards are used to buy 4 CD's apiece
30% of 348,000 cards buying 4 CD's at $1.00 profit ea. is $417,600
gross profit is $2.1 million
Regards, Suzanne
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