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Joined: 01.06.2010

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  • Quote

    Posted: Mar 5th 2010, 06:54 pm
    Post subject: Billy/Duncan/Skinny

  • "HellaBinDrinkin"
    "si
    "six_ten&qu

     
     

    I'm not a business scholar but Business 101 tells me that if I have 3 MILLION dollars in revenue and I can't pay out $10,000 in GUARANTEED prize money, something is wrong with this business plan...straight up.

    I agree that this situation is not right, but we don't know what their balance sheet looks like. Billy may have stated it in a very positive way to attract more investors. Despite $3 million in revenue, they may have $3.3 million in expenses for expanding the business, etc, & may also have been counting on 600 WSOBP V entries instead of the 468 that showed. We just don't know.
    Since it IS stated as "guaranteed" prize money, any delays beyond this 2 months will likely cause the organization to lose credibility. For an event of this magnitude, with all the hype & publicity, I agree that ALL cash prizes should be paid out immediately after the event. THAT's GOOD business!
     
     
     

    Don't want to sound like an accounting nerd here, but.....The revenue and expenses of the business are actually on the Income statement, not the balance sheet.  
Joined: 08.20.2008

Age: 27
Total Games: 47
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  • Quote

    Posted: Mar 5th 2010, 07:01 pm
    Post subject: Billy/Duncan/Skinny

  • "Gary_K"
    "HellaBinDri
    "si
    "six_ten&qu

     
     

    I'm not a business scholar but Business 101 tells me that if I have 3 MILLION dollars in revenue and I can't pay out $10,000 in GUARANTEED prize money, something is wrong with this business plan...straight up.

    I agree that this situation is not right, but we don't know what their balance sheet looks like. Billy may have stated it in a very positive way to attract more investors. Despite $3 million in revenue, they may have $3.3 million in expenses for expanding the business, etc, & may also have been counting on 600 WSOBP V entries instead of the 468 that showed. We just don't know.
    Since it IS stated as "guaranteed" prize money, any delays beyond this 2 months will likely cause the organization to lose credibility. For an event of this magnitude, with all the hype & publicity, I agree that ALL cash prizes should be paid out immediately after the event. THAT's GOOD business!
     
     
     

    Don't want to sound like an accounting nerd here, but.....The revenue and expenses of the business are actually on the Income statement, not the balance sheet.  

     
    True, but their balance sheet would show how much cash they have on hand, cash that can be used to pay out the prizes.
     
    They could have theoretically had $3m in revenues last year and expenses of only $2m yet still be strapped for cash.
     
    I love talking accounting on beer pong forums.  
Joined: 01.01.1991

Age: 28
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  • Quote

    Posted: Mar 5th 2010, 11:42 pm
    Post subject: Billy/Duncan/Skinny

  • We aren't talking about a big company, or anything. We're talking about the #1 BEER PONG company in the nation. First of all, I think everyone knows they are GOING to pay it out, that is not an issue. The bottom line, for everyone, is that the sport is still a tiny market and no one, not bpong or anyone is going to make money unless they grow the sport. I don't see most of the teams that were the tops teams (IE most winning, and more importantly most attending) on here complaining, so I would say bpong is doing GOOD BUSINESS.
     


  • Last edited on Mar 5th 2010, 11:43 pm
Joined: 12.09.2009

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  • Quote

    Posted: Mar 6th 2010, 01:38 pm
    Post subject: Billy/Duncan/Skinny

  • "Gary_K"


     
    [/quote]
     
    Don't want to sound like an accounting nerd here, but.....The revenue and expenses of the business are actually on the Income statement, not the balance sheet.  [/quote]
     
    Actually, a balance sheet should show pretty much much everything you'd need to know, but then again, my last college class was was during the Mesozoic Era, so things may have changed! HAW
    God damn kids know everything.......LOL
     
    Just kiddin' Gary. I'm sure you know more about accounting than I do, but I've FORGOTTEN more facts & info & my life than any of you guys have even learned yet!!
     
    Anyway, I just suspected these 3 guys were re-investing the money back into the company as fast (or faster) than they were making it, which caused a delay in the cash flow, which happens all the time in fairly new businesses. I'm sure the payouts will be coming any day now.
     
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