Babe Ruth Gross Profit Projection. There have several mentions from Paul Henry about Babe Ruth next year, so it's is way past time to do a projection.
Babe Ruth has 900,000 kids participating. TSIG has seen to the necessity of selling the program through outbound teleservices. There was a mention of 7,000 local league presidents. We are going to assume that one-third of the kids participate or 300,000 kids.
Each kid sells 2 MusicCards apiece which is 600,000 cards which is $3,000,000 in card revenue to TSIG. Each card is used to buy 2 CD's apiece, or 1,200,000 CD's. Thus CD gross profit is $1,200,000. Total gross profit is $4.2 million.
All-Star revenues are not included here because most activity would fall after the hypothetical year ending 6/30/99.
*****Babe Ruth Gross Profit Projection****
900,000 kids in organization
300,000 kids participate
each kid sells 2 cards (600,000 cards)
at $5 per card, that is $3,000,000 in card revenue
each card is use to buy 2 CD's
1,200,000 CD's is $1,200,000 in CD profit
total profit is $4.2 million
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