Help for Financial Illiterates

No matter how I plug the numbers in I can't find a result that doesn't show a substantial loss to the ATA. If the Grand is in Sparta in August and they have 3000 shooters over the ten days there is no where near the amount of money neeeded to pay expenses. Admittedly at this point it's all guesswork but the vendor income will be down, the campsite income will be down and the number of shooters will also be down. I don't see the so called "Signature Sponsor" contributing a large enough amount to guarantee a profit unless he's thinking seven figures. While many shooters are jumping for joy over the ATA's recent announcement nobody seems to have any idea or concern regarding the financial hit the ATA will take. Perhaps someone out there can help educate me on the wrongheaded financial thinking I seem to be stuck with.

 

Are you basing your calculations on the yearly 3 million dollars the state pays for the entire facility? I wouldn't think renting a portion of the facility for 4 months would cost near that amount. It will be interesting to see what the details are when the deal is finalized.

 

Unless the ATA is fibbing negotiations to replace the lease Illinois defaulted on have not begun yet. And will not begin until April. (if Illinois can be trusted on the next lease)

It also appears the idea of the ATA leasing the joint for 4 months was thought of long before the SCTP escaped and before the U.S. Open found another home.

The lease for next year to replace the lease that Illinois defaulted on will not begin until they have a budget for next year.

The lease for 2 years from now to replace the lease that Illinois defaulted on will not begin until they have a budget for that year.

The lease for 3 years from now to replace the lease that Illinois defaulted on will not begin until they have a budget for that year.

The lease for 4 years from now to replace the lease that Illinois defaulted on will not begin until they have a budget for that year.

The lease for 5 years from now to replace the lease that Illinois defaulted on will not begin until they have a budget for that year.

The lease for 6 years from now to replace the lease that Illinois defaulted on will not begin until they have a budget for that year.

The lease for 7 years from now to replace the lease that Illinois defaulted on will not begin until they have a budget for that year.
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In the meantime the building the ATA financed that cost $2.1 million (and not finished) will still be owned by the State of Illinois.

 

I'm thinking the state will be looking for expenses plus profit in whatever lease agreement they purpose. The states side looks at all expenses related to the maintenance of the WSC. So it sits empty then needs to be cleaned up and made ready for the shoot. Roads, electrical and etc. costs are rising while the vendor and campsite rentals are way off. To hold one shoot and pay all the expenses of opening and maintaining the WSC seems to be a big task. On top this. I'm pretty sure the attendance will be off considerably. Many shooters have already made the decision to skip it and nothing announced lately would accomplish anything but to make those not planning to attend feel more confident in their decision.

 

Everyone keeps making this much harder than need be.

Look at the information in the Dr.Longshot "ATA Salaries" thread. Read the "Consolidated Financial Statements and Supplemental Data". Page "20" says the "INDR" received "$93,234" from the "IDNR fee" in 2013, and "$92,853" in 2014. It also says they recieved "$201,516" in 2013 for "Camping", and "$205,629" in 2014. So I doubt in their mind they have much to lose with the "Grand". The "shooters" pay the "fee" and "camping"... so ... how much can the "ATA" pay in hopes that those two items and the current "profit" they make, will keep it all in black ink ?????

Possible answer .... the 90k "fee", plus 200k "camping", plus current "profit" to make an "offer" that 'breaks even' using past numbers. Is that worth millions for JUST the "Grand" ????????????

Now look at pages "14, 15, and 21" those pages tell the story of who has the most to lose.

Page "21", "Consolidated Schedule of Travel and Related Expenses" for the "Grand American Handicap"
"Officers and Executives" in "2014" the "ATA" $4,519 and the "GAH" "$24,542"

"CHC" ..."2014" from the "ATA" "$1,538" the "GAH" "$17,072" ... "2013" from the "ATA" "$409" the "GAH" "$16,333"

Heck they ONLY lost "($27,097)" from "Trap and Field Magazine" ... NOT BAD, for having "wages" "$67,449", "Employer Payroll Tax" "6,541", and "Employee Health Insurance" "$13,374" ... just think how well they can do with something the size of the "Grand".

 

Why should the ATA even consider to rent the WRSC for 4 months, when they are only using it for less than 2 weeks!!!!!!!!!!!

Gary Bryant.........................Dr.longshot

 

I'm not sure where the 4 months thing is coming from. The release from the ATA states June, July, August.

It also seems that most are assuming the state is going to require the ATA to assume 100% of the current expenses for that time period. If I understand the situation correctly, the state continues to incur all labor expenses even though the shooting operations are suspended.

We won't know with any certainty until mid April what kind of deal will be offered/made but I predict it will be something along the lines of $300,000 (200,000 camping and 100,000 fees) plus another $100,000-$200,000.

I suspect this has been floated by all parties already.

 

Iowa Guy

So publicly Gipson sends a letter to Illinois accusing them of defaulting on the last broken lease. Illinois does not remedy the situation. Then Illinois says we may talk about negotiating a new lease again later. Or we may not.

What brain dead attorney would advise his client to sign another lease with Illinois. Please respond with that attorney's name and state he practices.

 

The ATA makes money on Sales of Targets, & ATA Daily Fees per event, Campsite Rentals, Building Leases for Vendors,
ATA Momento's, Come on guys post some more Income.

GB.........................DLS