RE: STAFF17 Jul 2018 10:10
What I'm really keen to understand is what sort of profit the company can target from an event such as the one just about to start at Glasgow. Let's assume c. 80,000 visitors (20,000 per day) the event host runs the event, pays LVCG a licence to do so and use the Bricklive brand and content. The host takes all the revenue apart from sponsorship monies and merchandising. So, LVCG provide the lego and other content (mainly fixed costs) and they receive a licence fee, sponsorship monies from large international companies and a share of the merchandising with very little risk and/or variable cost. That is a BRILLIANT business model and why I am heavily invested here. What I would like to know is how brilliant. If we assume a licence fee for an event is a minimum of £20k (£5k per day?) and sponsorship and merchandising could double that. Then that's £40k per event for soon to be 60 events with little variable cost so c. £2M profit before we add on all the other revenue streams: touring, cafes, centres, animal paradise etc. But my numbers are total guesses, I have no idea what the licence fees are, I think and hope they could be much higher than my guess.