Presented by: Proposed Sports and Event Complex in Coeur d ...

Merchandise
Merchandise sales consist of clothing, souvenirs, programs and other miscellaneous items sold
during events at the facility. For purposes of this analysis, a profit margin of 25 percent has been
assumed, with the remaining 75 percent covering cost of goods sold, consistent with industry
averages. As with concession revenue, the profit margin may be split between facility
management and the tenant or event promoter. This split percentage can also be a key
negotiating issue in developing facility rental agreements. For purposes of this analysis, it is
assumed that the facility would retain 30 percent of net merchandise revenue from all events held
at the facility. The following table summarizes the estimated gross and net merchandise revenue
that could be generated at the proposed facility.
Merchandise Revenue
Base Scenario
Average Gross Net Facility
Average Total Spending Merchandise Profit Merchandise Facility's Merchandise
Event Type Events Attendance Attendance Per Capita Revenue Margin Revenue Share Net Revenue
Concerts 6 4,500 27,000 $7.00 $189,000 25% $47,250 30% $14,175
Family Shows 4 1,500 6,000 1.00 6,000 25% 1,500 30% 450
Touring Sports 6 3,500 21,000 2.50 52,500 25% 13,125 30% 3,938
North Idaho College 12 2,500 30,000 1.00 30,000 25% 7,500 30% 2,250
Collegiate Sports 4 4,500 18,000 1.00 18,000 25% 4,500 30% 1,350
High School Sports 10 2,500 25,000 1.00 25,000 25% 6,250 30% 1,875
Amateur Sports 10 2,000 20,000 0.50 10,000 25% 2,500 30% 750
Community 10 1,000 10,000 0.00 0 25% 0 30% 0
Flat Floor 12 2,000 24,000 0.00 0 25% 0 30% 0
Total - Base Scenario 74 181,000 $330,500 $82,625 $24,788
High Scenario
Average Gross Net Facility
Average Total Spending Merchandise Profit Merchandise Facility's Merchandise
Event Type Events Attendance Attendance Per Capita Revenue Margin Revenue Share Net Revenue
Concerts 8 4,500 36,000 $7.00 $252,000 25% $63,000 30% $18,900
Family Shows 6 1,500 9,000 1.00 9,000 25% 2,250 30% 675
Touring Sports 8 3,500 28,000 2.50 70,000 25% 17,500 30% 5,250
North Idaho College 15 2,500 37,500 1.00 37,500 25% 9,375 30% 2,813
Collegiate Sports 6 4,500 27,000 1.00 27,000 25% 6,750 30% 2,025
High School Sports 12 2,500 30,000 1.00 30,000 25% 7,500 30% 2,250
Amateur Sports 12 2,000 24,000 0.50 12,000 25% 3,000 30% 900
Community 12 1,000 12,000 0.00 0 25% 0 30% 0
Flat Floor 15 2,000 30,000 0.00 0 25% 0 30% 0
Total - High Scenario 94 233,500 $437,500 $109,375 $32,813
As shown, a new event facility in Coeur d’Alene is estimated to retain approximately $25,000 to
$33,000 in net merchandise revenue on an annual basis.
Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene
Financial Analysis
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