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KANSAS CITY ROYAL'S CONSOLIDATED FINANCIAL INCOME STATEMENT (REVISED)

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2006200720082009201020112012

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Forbes Revenue ($M)$117,000,000$123,000,000$131,000,000$143,000,000$155,000,000$160,000,000$161,000,000

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REVENUES

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Attendance1,372,6381,616,8671,578,9221,797,8911,615,3271,724,4501,739,859

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Avg Ticket Price$13.71$14.48$17.15$19.38$19.38$18.95$21.84

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Total Gate Revenue$18,818,867$23,412,234$27,079,211$34,843,128$31,305,037$32,678,328$37,998,521

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Total Parking Revenue$6,176,871$7,275,902$7,105,149$8,090,510$7,268,972$8,622,250$9,569,225

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Total Concessions$6,425,890$7,994,341$9,246,467$11,897,534$10,689,418$11,158,342$12,974,975

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MLB Revenue Sharing$32,000,000$33,574,400$35,226,260$36,959,392$38,777,795$40,685,662$42,687,397

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National TV Revenue$23,720,000$23,720,000$23,720,000$23,720,000$23,720,000$23,720,000$23,720,000

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Local TV Revenue$20,000,000$20,000,000$20,000,000$20,000,000$20,000,000$20,000,000$20,000,000

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Luxury Tax Revenue $- $- $- $400,000$400,000$400,000$460,000

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Merchandising$2,512,453$2,587,826$2,665,461$2,745,425$2,827,788$2,912,621$3,000,000

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Sponsorships$8,374,843$8,626,088$8,884,870$9,151,417$9,425,959$9,708,738$10,000,000

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Total Revenue Calc'd $119,130,580$128,586,944$135,566,376$149,931,730$146,365,970$151,954,278$162,830,214

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COSTS

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Player Salaries$47,294,000$67,141,500$58,245,500$70,519,333$73,195,210$37,151,000$62,458,975

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Player Dev$11,531,840$12,447,216$13,122,825$14,513,391$14,168,226$14,709,174$15,761,965

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Team Ops$13,473,669$14,543,183$15,332,557$16,957,279$16,553,991$17,186,029$18,416,097

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Gameday Ops$11,245,927$12,138,608$12,797,466$14,153,555$13,816,948$14,344,484$15,371,172

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SGA$19,454,024$20,998,248$22,137,989$24,483,852$23,901,563$24,814,134$26,590,174

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Total Cost Calc'd$102,999,459$127,268,755$121,636,337$140,627,410$141,635,938$108,204,820$138,598,383

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Net Income$16,131,121$1,318,189$13,930,039$9,304,320$4,730,032$43,749,458$24,231,831

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TOTAL PROFIT (2006 - 2012):$113,394,989

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CALCULATION KEY

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Forbes Revenue ($M)Forbes.Com

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REVENUES

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AttendanceBaseball-Reference.com

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Avg Ticket Pricehttp://www.fancostexperience.com/

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Total Gate Revenue=Attendance * Avg. Tix Price

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Total Parking RevenueEstimated: 2.25 Fans/Vehicle*Park Rate

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Total Concessionsratio of concessions/tix based on fancost index (.34)

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MLB Revenue SharingEstimated: Base @ 32M * CAGR Over Period = 4.92% (CAGR of MLB Rev Growth)

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National TV RevenueBased on nationally published reports & Fangraphs reporting

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Local TV RevenuePublished Reports & KC Star

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Luxury Tax RevenueBased on nationally published reports & Fangraphs reporting

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MerchandisingSourced: Based on Industry Norms

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SponsorshipsSourced: Based on Industry Norms

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Total Revenue Calc'd =Sum of all Revenue Sources

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COSTS

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Player SalariesAvg: USATDY & COTS

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Player DevEstimated Based On Common Size Income Statement Approach. Analysis based on review of publicly available Statements of Operations from 6 MLB Clubs (Pirates, Rays, Mariners, Marlins, Rangers, & Dodgers) b/w 07-09. Average spend/category for three years is equally weighted in final equation.

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Team Ops

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Gameday Ops

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Selling, Gen, Admin

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Total Cost Calc'd=sum of all Costs

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Net Income=Revenue - Costs

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SUMMARY OF COMMON SIZE FINDINGS

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2007200820092007-2009

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%$%$%$AVG %

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Avg. Team Rev (Yrly)$161,423,873$175,464,822$188,177,500$172,903,285

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Player Dev13.03%$22,857,43410.09%$17,699,5305.92%$10,393,9499.68%

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Team Ops3.48%$6,112,74513.7%$24,040,00516.75%$29,384,28911.31%

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Gameday Ops11.28%$19,785,6827.88%$13,820,7639.17%$16,082,5049.44%

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SGA17.51%$30,724,80916.49%$28,933,96714.98%$26,281,59816.33%

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