05,211Based on these attendance numbers, the average annual attendance for a CFL team is 223,168. 5.4 Break Even AnalysisIn order to calculate the break even point for the possible new Rough Riders, we must first examine the total costs and expenses of owning the team. This will be done using the 3 year period suggested by Giles. Expenses are: Entry fee + Player, Coaches, Trainers and other personnel + Equipment Fees + Leasing of Lansdowne Park + Travel fees. Lansdowne is presently owned by the Regional Chair Bob Chiarelli and there has been recent talk that an agreement could be made possible concerning leasing Lansdowne Park. The agreement would consist of the Region obtaining full rights to the parking lots and profits they may attract while the franchise would only have an annual fee of approximately 650 thousand dollars for repairs and maintenance of the stadium.If so the expenses would be summed up as follows:Entry fee---------------------------------------------------- $2.5 millionsSalary cap*-------------------------------------------------- $7.5 millionsMaintenance and repairs--------------------------------$ 1.95 millionsEquipment-------------------------------------------------- $0.62 millionTravel-------------------------------------------------------- $2.76 millionsTotal over 3 years: $14 millionsSalary cap refers to the maximum each team is allowed to spend ($2.5 millions a year) on personnel including coaches, players, and trainers.The capital generated from ticket sales including corporate sponsorships would account for the franchise’s total revenue. For arguments sake, lets assume that the team does not raise any corporate sponsorship and that the attendance equals 669,504 over three years (based on the earlier assumed yearly attendance of 223,168). The Break even point equation would read as follows: T.C. [$14 millions] = average ticket price x 669,504The average ticket price would have to equal $20.91A...
