Business case
Our client, a public sector organisation, sought to understand the project economics for a major public infrastructure project involving various facilities and a 30,000-seat grandstand to be used for public and private events. This included understanding potential revenue streams, potential costs and the overall profitability of the facilities. The key concern was to understand if the asset / facility would be self-sustaining.
Obtaining the right mix of events was critical for driving revenues and profitability. Determining the price of public and private events was therefore critical, as well as their proper scheduling. Additionally, it was essential to understand lifecycle costs and plans as they affect the overall profitability of the facilities.
Our role was to analyse the operational business model, which involved the development of detailed financial model to better understand the project economics. We also undertook scenario and sensitivity analyses to better understand parameters that would affect profitability based on the proposed calendar of events.