Man. Cost

Topics: Association football, Profit, High school Pages: 7 (2067 words) Published: June 20, 2013
UVA-C-2182
Rev. June 17, 2009

THE CRADDOCK CUP Jose Rivaldo shuffled through the papers on his desk and sighed. As the general manager of the Craddock Youth Soccer League (CYSL), Rivaldo was committed to providing highquality soccer activities to boys and girls in the area. In addition to managing regular CYSL operations, Rivaldo was heavily involved in putting on a regional soccer tournament, the Craddock Cup, which brought approximately 32 premier high school soccer teams from throughout the region each May. This year’s tournament, like its predecessors, had been considered a great success by players, their families, and the local community. The weather had been beautiful, the referees had been fair, and the local hotels and restaurants had profited from the influx of people. Nevertheless, Rivaldo knew that the Craddock Cup was in trouble. Tournament expenses continued to rise, while corporate sponsorships remained difficult to obtain. CYSL had founded the Craddock Cup, in part, to fund a field-acquisition program for the league, with the expectation that the tournament would generate at least $6,000 annually toward that goal. Unfortunately, with tournament profits averaging a loss of almost $4,000 a year, CYSL’s board of directors was beginning to express frustration with the lack of profits generated by the Craddock Cup. Rivaldo knew the Craddock Cup was in danger of being canceled, and that he risked losing his job with CYSL if he did not devise a plan to increase tournament profits. He decided to review the organization and expenses of the Craddock Cup to see if there was a way to increase the cup’s profits and continue the tournament.

Background The Craddock Cup was widely regarded as the premier tournament for high school soccer players in the region. The tournament consisted of a boys’ high school bracket and a girls’ high school bracket, each with 16 teams. Through a series of rounds and consolation rounds, the rankings of all the teams, from 1 to 16, were determined, with each team playing four games throughout the course of the tournament. See Exhibit 1 for the current year’s Boys’ High School Division results and bracket structure.

This case was prepared by Kristy Lilly (MBA ’03) and Liz Smith (MBA ’04) under the supervision of Professor Mark Haskins. It was written as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Copyright © 2003 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to sales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. Rev. 6/09. ◊

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UVA-C-2182

Funding for the tournament came from team registration fees, corporate sponsorships, T-shirt sales, concession sales, and participation fees for soccer clinics held during the tournament for the younger siblings of tournament participants. Each team paid a $295 registration fee to enter the tournament. During the past few years, the Craddock Cup had evolved into a showcase event for talented high school players. On average, about 25 college scouts attended the tournament each year for recruiting purposes. The Craddock Cup encouraged recruiters’ attendance by paying for their hotel rooms and by publishing a “face book” that included a photograph and profile of each player 16 years of age or older. The presence of the scouts enabled the tournament to attract the region’s best high school teams.

Profit Statement Estimates Rivaldo looked at the profit estimate for the next year’s Craddock Cup (Exhibit 2). He planned to use this information as the basis for his recommendations to the CYSL board. He used the following data in compiling the...
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