To: Ellen who wrote (23753 ) 4/4/1999 12:49:00 PM From: ztect Respond to of 44908
Geeze Ellen..... dd must think we can't read like one of his friends... Now what does this little excerpt mean... "....Mr. Gordon will be paid..." Does this represent past compensation? Like duh...last year's compensation is clearly listed as $178,000 Whether or not Gordon's future package of $360,000 annually for the next five years is justified can't really be assessed until next year's 10-k. However we should all just take a moment and crunch some numbers regarding just the one Babe Ruth League deal that Rich C. and Sam helped bring to fruition to refocus on what this year's '99 10-k may bring. 900,000 kids participate in this baseball league. Cards are sold instead of candy bars or whatever to generate revenues. Cute little kids knock on your door and ask if you can help them and their teams by buying a card. The kids have added incentives to sell cards by rewarded with prizes for selling the most cards. These incentives are listed on the babecard.com website which is a TSIG site specificallythebabecard.com Now let's again crunch some numbers with these parameters defined -Cost of card $10 -Cost of card....neglible -Split of card receipts from sales of cards 50/50 -Net receipt for TSIG $5 per card -Card offers 20 cds at $10.99 each.(rounded to $11 for gross receipts calc) -MusicCard price of $10.99 each is on average lowest on Internet for cd's especially new releases. -Profit margin per cd is $1.00 =========== Scenario 1). Very conservative 100,000 of the 900,000 on average sell 10 cards each. On average each purchaser of the card buys 4 cds this years. This translatess to 1,000,000 cards sold and 4,000,000 cds sold. So that equates to $5 mil from card sales and another $4 mil from cd sales. $49,000,000 mil gross receipts excluding $5 mil to BR league teams $9,000,000 profit $5,000,000 to Babe Ruth League ******************* Scenario 2). Less conservative, but still conservative 200,000 kids sell 15 cards each. Each card purchaser buys 6 cds this year. Crunch again... 3 mil cards and 18 mil cds sold equals $7.5 mil cards sales for TSIG ($7.5 mil to BR league) and $18 mil from cd sales $205,500,000 Gross receipts excluding BR cut $25.5 mil profits $7.5 mil to Babe Ruth League ********************** Scenerio 3). Less conservative 300,000 (33%) on average sell 20 cards. Each card purchaser on average still buys 6 cds this year. 6,000,000 cards sold. 36 mil cd's sold Profit from cards 1/2 * 10 * 6 mil = 30 mil Profit from cd's= 36mil * 1 dollars each cd= 36mil Gross receipts = cards sales plus gross cd sales or $30 mil plus 36mil cd's * $11 ea = $426,000,000 $76,000,000 mil profit $30,000,000 mil to Babe Ruth League ************************ Scenario 4). Optimistic projection 400,000 kids sell 20 each. Each purchaser buys 8 cds this year on average. 8,000,000 cards sold 64,000,000 mil cd's 45 mil from card sales 64 mil from cd sales $749,000,000 Gross receipts $109,000,000 Mil profits $45 mil to Babe Ruth League ********** Cost of marketing? Zilch...Babe Ruth League and TSIG (MyCard) share receipts. Nuff said. z btw...someone PLEASE check my math....I've been known to make a math mistake here or there.