Pro Forma Income Statement for an Esports Event

Purpose of Assignment

Purpose of Assignment: To critically examine existing pro forma data for an esports event, and critically assess and develop a pro-forma income statement to project future numbers for the same esports event in three different scenarios. Through this assignment, students should demonstrate an understanding of pro forma income statements (also called projected profit/loss statements), covering projected sales, cost of sales, gross margin, operating expenses and profits for an esports event, and being able to present their findings to a client.

• This is an individual assignment, and should adhere to the college’s academic Integrity Policy. Do not share your work, and please keep copies of your research and rough work as I may ask to see it.
• The assignment must have a cover page with your name, my name, the course code and title, due date, and title of the assignment.
• The assignment must be submitted in portrait format, page size 8.5” x 11”, and should be written in font size 12 Arial or Times New Roman, double spaced.
• When submitting your assignment, please make sure it consists of one attachment only, in PDF or Microsoft Word format. If there are multiple sections to your assignment, make sure they are indicated in your document under an appropriate section heading. Do not submit separate documents for each section. 

Remember to reference the sources you are using for this report through the use of footnotes and a “References” page at the end of your assignment. Make sure to correctly acknowledge the authors and sources when quoting or referencing the source material in your assignment.

Scenario: You have been hired by the company “XP Gaming Inc.” to advise them on their Esports Tournament, which takes place as an in-person event every Spring in Toronto. Having had to cancel their event in Spring 2020 and 2021 due to COVID-19, the company is eager to host the event again in Spring 2022, but does not know what the best option is for them at the moment. Your goal is to help XP Gaming Inc. to assess and determine, based on their past event pro-forma, which type of event they should be hosting in Spring 2022, also keeping in mind their brand value going forward.

Read through the provided historical pro forma income statement for the XP Esports Tournament. Based on the historical numbers provided, create a pro forma projection for the following 3 scenarios:

• In-person event in Spring 2022
• Hybrid event (combining in-person and online elements) in Spring 2022
• Online-only event in Spring 2022

Use the existing Pro-Forma structure for the historical XP Esports Tournament to complete your predictions.

Section 2 (20 marks): Comparative Analysis & Conclusion

Looking at the predictions you’ve made for the 3 scenarios outlined above, explain and support your reasoning for each of the scenarios. Make informed assumptions (with references) to support your analysis.

Each scenario should have its own analysis under its own heading.

At the end of this section, drawing upon your analysis and the data presented in the different scenarios, make a recommendation to XP Gaming Inc. regarding which scenario you think would fit their needs, keeping in mind the brand and event value over the next 5 years.

This section should be 3 pages maximum, following the format instructions.

Be prepared to present your recommendation to XP Gaming Inc. (your instructor). Using the information you’ve put together in Section 1 & Section 2, discuss your findings and make an official proposal to your client. You do not need to create an official PowerPoint for this section, but be prepared to have an official 10 minute business meeting with your client as the hired consultant.