Bernard Wai (210269173)
Soccer Magic Notes
* In June 1999, Ralph BeBlois, did not break even and fell short $270,000 in the financial statement
* In Canada, Soccer is among the fastest growing sports in North America
* Soccer Magic was formed as a recreation company established for the growing demand of indoor soccer. SM1 opened in Kingston and Sm2 in London, they were designed primarily for soccer players but support other soccer activities.
* Game began in October and ran at various times throughout the week with exception of Saturday.
* Sm2 operated at 35% capacity
* There are various soccer activities in attempt to boost revenue.
* SM2 is unique in London and there are no other types of competition similar to them at the moment.
Financial statements indicated that the company did not break even that year and fell short in projections by $270,000
Analyze case data
In Soccer Magic 2, it was required to be registered with OSA which can affect the amount of people that join the soccer league as it is complicated to join. The times of game is not very flexible for people as games are ran throughout the week with exception to Saturdays.
The additional soccer activities that is ran during the season such as the Soccer Academy and other activities does not seem to have any impact on increase in revenue except for Youth recreational and March Madness as these are increasing the cost of the business.
Currently in London, there are no other soccer facilities that are comparable to SM2. They have new innovative product FieldTurf which prevents injuries which should appeal to a lot of people.
1. Increase flexibility in time for games and have Saturday open for games as well
2. Eliminate other soccer activities which does not increase revenue and focus in the mainstream part of business.
3. Close SM2 as it seems to be dragging down the revenue of the company and operate just in Kingston with SM.