Coachella’s Finances

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코첼라 페스티벌의 수익 구조(티켓, 업셀, 식음료 분배)를 분석하고 2017년 매출 1.146억 달러를 기반으로 2019년 일 매출 약 2,700만 달러, 순이익 약 4,950만 달러로 추정. 참석자 1인당 순이익 약 165달러로 계산하며 지역 경제 효과는 약 7억 달러라고 주장. 주식·금융시장 자산에 대한 가격 예측 발언은 없음.

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01. the Coachella Music Festival makes a lot of money possibly as much as 27 million dollars per day for those of you wondering that is a one point one two five million dollars per hour or eighteen thousand seven hundred fifty dollars per minute and you are to blame let's take a look at where all that money comes from there are three main sources of income for Coachella and no we're not considering the fact that that people will buy Coachella tickets and resell them on websites like StubHub four sometimes eighty to a hundred percent more than what they actually retail for at Coachella so therefore we're left with number one the actual original ticket sales original tickets sold for $429 in 2019 a for Coachella but folks if this was a video about tickets that'd be boring there are two more sources of revenue the number two source of revenue for Coachella upsells if you want to sleep on a tent you have to pay for that if you want to sleep in a car you have to pay for that as well you want to sleep in a car and have that car being a preferred parking spot so you could sleep in a preferred parking area you pay extra and if tents and cars are not good enough glad that ran through your head cuz there are options for you there are some incredible accommodation packages to make sure you feel the absolute best experience possible while at Coachella and these packages can range anywhere from $3,000 upwards to $10,000 depending on whether you want a luxury tent on the El Dorado lake or you want the Safari package because who wouldn't want the Safari package in California's desert just outside of LA in April and the third source of revenue well splints that is splits on merchandise food and beverages and possibly even hotel fee splits are what lead to the third source of revenue for Coachella you didn't really think all that food and beverage money went straight to the food or beverage vendor did you nope in fact Coachella might take as much of 35% of whatever you pay food and beer for themselves that also means that t-shirts and other goodies that you buy while you're at Coachella yep you guessed it Coachella gets a split so when we add up the cost of Admissions upsells and beverages we get to a gross a revenue for the Coachella Music Festival and then we can sort of divide out to figure out how much you're worth to Coachella in 2017 the revenue for Coachella was one hundred and fourteen point six billion dollars making it one of the most profitable music festivals throughout the world it's also one of the most loved music festivals by celebrities including Paris Hilton herself absolutely loved and won't miss a Coachella experience now in 2017 if we divide out the gross revenue by the amount of attendees each attendee was worth about 456 dollars to the music festival that means ticket revenue upsells and splits for a total of four hundred fifty six dollars per person that attended as a profit to Coachella but there's a difference between profit and net profit as in take-home pay you see a singer like Beyonce might be able to capitalize on a fee of three to five million dollars simply to show up and perform at Coachella and now while I say simply maybe I'm just jaded because when a singer like Beyonce makes on average over five million dollars per night on tour from stats based on her 2016 formation tour you start wondering why there's a pay gap in the United States put politics aside beyond that the three to five million dollars Coachella has to pay for these top celebrities to make an appearance Coachella also has to provide special amenities for them that is acre plotted land for these celebrities to have their own zoned off friends and family lots their own private security and for some people like Jagger their very own custom indoor and air-conditioning fields so they can run Sprint's to warm up for their act during the hot summer day now sometimes the festival gets lucky and they end up locking down rappers like cardi B for just $70,000 per weekend but that was before she blew up that is she signed her contract for 70 grand per weekend of pay then blew up and then had to fulfill the contract guess she could have demanded more with her popularity now I'm getting paid for Coachella like 70 Bandos obviously artists are going to take a massive chunk of the revenue from Coachella but what is a music festival without musicians well a music festival without musicians would probably be just as bad as a music festival with musicians but no bathrooms or highways to get you there that is Coachella has even contributed to expanding highways to allow easier access to the Coachella Valley and help people enjoy their time at the Coachella Music Festival even more obviously that is topped by the free water that's given out the misters the bathroom facilities that are constructed and the endless number of trash collectors that is literally people paid solely to walk around and collect trash then sort it for recycling so that you don't have to trip or deal with trash on the floor because who wants to find a dumpster while you're enjoying a music festival now in addition to this contribution Coachella also generally pays a tax of around $5 per ticket to the city of Indio and music festivals in total now make up almost five to ten percent of the city of India's entire operating budget and his if these festivals didn't happen here India would have a revenue of five to ten percent less to spend on their city I think it's pretty clear that the Coachella Music Festival makes a lot of money and has some expenses but just what could that profit margin look like well according to fool.com that is motley fool's fool they estimate Coachella's profit margin at around 46% now I think that's pretty high so what I'm gonna do because they're estimating just like we are in this video and full disclosure the sky sit here while they're taken from many different sources could be totally wrong and Coachella don't sue me bro because I know you're into suing companies but maybe they deserved it all I know is I'll just making a youtube video so let's go with maybe a watered-down profit margin here and let's figure out what you are individually worth to the owners of Coachella that is what you pay your ticket and you pay your food and you buy stuff at Coachella how much are you individually worth to the company that runs Coachella when you show up what number do they see in their eyes that say you are money in their pocket well let's do the math over the past few years Coachella has seen a growth in revenue of upwards of twenty eight percent on average since the last statistic we have ended in 2017 let's extrapolate using a 20% growth in revenue per year if we take a hundred and fourteen million of revenue in 2017 and we grow that by 20% for 2018 and again by 20% for 2019 Coachella should have a gross revenue of somewhere around 165 million dollars for a six-day event that works out to just over 27 million dollars per day in gross revenue now while Motley Fool thinks the profit margin might be around 46% if we take a more conservative profit margin of 30% we'll find out that the coachella company in net just about forty nine point five million dollars in 2019 from a two weekend music festival and that's not even to mention the bluegrass country inspired stagecoach festival that happens just a couple weeks after Coachella ends now could we call that passive income well now if we assume and these are just assumptions that the growth of attendees from 2017 to 2019 has gone from 250,000 people to 300,000 tickets sold and we divide the estimated revenue basically we'll get to a value of about $550 per person for you attending Coachella that is even if you buy that $429 poverty ticket and nothing else you'll still end up probably making Coachella an average of 550 dollars thanks to splits on beverages the tents you buy or whatever upsells you end up falling victim to or you don't but other people do like the safari excursion or safari tent well if we take the guests profit margin of 30% you are worth about $165 into the pockets of the owners of the Coachella organizing corporation in other words for every one of you walking through that gate just think $165 $165 $165 net profit to the owners every time you get that $10 mimosa but boom $3 to the owner one a $14 egg sandwich no problem that's four dollars and 20 cents to the owners and why would we feel bad about that other than the fact that maybe the Coachella owners might be donating or might have donated to some questionable political organizations in the past get out treacherous pissflap comment below if that bothers you maybe the real way to go is to sell tri-tip sandwiches because I also realized that even after the split with Coachella somebody selling thousands of tri-tip sandwiches at Coachella walked away with 20 thousand dollars of profit thanks to selling sandwiches at this two weekend event I'll take 20 thousand dollars of profit in a to weekend event any weekend now that you realize your attendance is worth about a net profit of $165 let's look at the actual economic impact that Coachella has on the entire region well once we add together flights hotel stays the travel that it takes to get you there including car travel ubers food and everything else in addition to your flights and your stay in your tickets Coachella and stagecoach combined contribute around 700 million dollars the global economy so folks for all of you going to Coachella which I really do encourage all of you to go to Coachella thank you for helping forestall another economic recession by keeping our dollars in BO ssin and a big thank you as well from the local hotels which tend to raise their prices from an average of $150 per night to an average of around four hundred to four hundred fifty dollars per night for the weekends of the Coachella Music Festival thanks for watching in if you're looking for some more analytical insights into real estate investing and making some passive income for yourself becoming a Dominator in real estate sales we've got two excellent courses for you a linked below one for the real estate agents and one for real estate investors which could be aspiring investors or highly experienced investors hope to see you there where you get to talk to me in our private live streams ask your questions and have your deals and your marketing analyzed again whether you are an agent or an investor we've got a course for you check the link in the description below hope you all have fun at Coachella 2019 and thank you again so much for watching follow me on Instagram as well thanks bye