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2009/10 saw CFC Admin expenses of approx $55,000. We need to determine what % of that is for ratings.
Hi Fred,
What I based the $5.70 per player per tournament on in the other thread is the entire EKG contract and the office expenses line, which I guess is how you got the $55,000 as well.
The revenue from ratings fees was budgeted at $31,300, and I used this to estimate that there are 10,300 player-tournaments at $3 each. There is a lot more, since as Roger stated there are a lot of junior events.
Although there are other responsibilities in the contract, I do not think the cost can be seperated as you are trying to do. The ratings/membership system require an office manager, and further the contract is set... if we don't pay the entire $55,000 then there are no ratings.
I make no statement about how much a rating system should cost, however I recognize that this is how much it does cost right now, given our contractual obligations.
If anyone feels it is to much they should consider placing a bid for the office contract... the current one I believe expires in April? if I am not mistaken.
Isn't that proving my point? The CFC derives no net revenue from rating things cheaply. The parents of serious players don't mind paying. The participants and parents who are not serious couldn't care less about CFC ratings or any ratings. I don't see any upside to the subsidy when there is already a nation-wide rating system for kids in Canada who are interested in getting their feet wet in competitive chess.
I don't think I was disagreeing with you but just thinking out loud. You are right that middle class and higher income parents are willing to pay. We do have to be careful that we may lose some of the kids who are not so well to do if we start slamming them with extra fees.
I think that $3 per player per tournament is reasonable and something that most chess organizers and players (including juniors who only get the reduced rate when playing in tournaments that include only other juniors) can live with. When you start talking about $8 per tournament then you are gouging and the effect will be to reduce your revenues and CFC chess activity in the long run.
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