Craddock Cup

The Craddock Cup

Understanding Costs and Cost Behaviors

By:

Amy Marlow

Gabby Smith

Philip Reaves

Introduction

The purpose of this paper is to provide an analysis of the circumstances surrounding The Craddock Cup case study. This analysis includes a quick summarization of company and case background information, and an outline of the critical issues and problems, along with our group’s opinions and recommendations of how whether or not the Craddock Youth Soccer League should continue hosting The Craddock Cup tournament.

Tournament Background

The Craddock Youth Soccer League hosted tournament, The Craddock Cup, is the best and highest anticipated tournament in its region. The tournament consists of boys and girls high school brackets, with 16 teams each, and each team playing four games throughout the tourney.

Funding for the event comes in the form of team registration fees ($295 per team, corporate sponsorships, apparel and concession sales, and soccer clinic participation fees.

On average, each tournament brings in 25 college scouts a year. Recruitment is encouraged by the league paying for scouts’ hotel rooms, and providing a “face book” that includes a photo and profile of each soccer player 16 years old and up. In return, the scouts’ attendance increases the league’s ability to attract the region’s best high school teams to play in the tournament each year.

Case Background

Jose Rivaldo, Manager of CYSL, not only manages daily CYSL operations, but is also heavily involved in the planning and implementation of The Craddock Cup. To most participants, the tournament appears to be a success, year after year. The players have fun, and many are recruited to play for college teams. In addition, local businesses experience an increase in profits around this time of year, as well, due to the influx of participants, families and recruiters. However, Rivaldo knows that the reality is much more grim.

Originally, the tournament was...