Millionaire Chess 2!!

>If you think it's interesting, then that's good. <

Self-infatuated would be a more accurate description than interesting. Back to basics with Socrates - know thyself. Because your presentation is shouting volumes, and not good ones. 

I said it was "good," but I didn't say "good for me."  Good is a relation between two relata.  I don't know whether your finding wall remarks, accrued over time, interesting is good for me or not; maybe not.  However, I said "good" to be vague and with the thought that, if you are interested, then it's good for you --the idea being that if you got some enjoyment out of it, then I'm glad to have brightened your day.

You're judgement of "self-infatuation" is more of an indictment of yourself, whether it be on grounds that you are merely ill-intended or incapable of discerning character and motivations.  Distinguishing oneself as an individual with a story does not equate to "self-infatuation," though I admit that starting my day with such a risible implied thought makes my morning a good one.

>Distinguishing oneself as an individual with a story does not equate to "self-infatuation," < 

Not always, but you've done a fine job on being the exception to the rule. 

As much as I'd like to spend the rest of this thread on your favorite topic (the splendor of you), it's ostensibly about Millionaire Chess. So back to task, Chuckie Cheese.  

Let us know when you finally cut them a check, as you promised in your opening salvo. I'm making book that was bluster.

TMB

If they get another 250 entrants, that would hardly be a failure.

1. It would represent an increase of entries from the previous year by about 40%.
2. They would be very close to covering their prize fund from entry fees.

750 entries will still be a massive loss for MC. Remember, 1500 entries are needed to break even, indicating expenses are $500,000. This would put the loss around $700,000. Even if they gain 250 players per year, it will take up to MC 5 just to break even and they will be a few million cumulatively in the hole. As noted, the business plan is a failure as their doesn't seem to be a market for 1500 players, let alone more so a profit may be earned.

The point is that they have a better chance of long-term viability if entries increase by 40%.  It's not about how much they lose in the first couple of years.  Staying at/under 500 entries won't be sustainable, of course.

I don't have much business sense, but it is so difficult to imagine where that much money could be wisely spent on such a production.

Probable expenses:

Playing hall

Security staff

Broadcast staff

Broadcasting cost

Equipment costs and transportation

Insurance costs

In one of Amy Lee's early blogs, she: stated that the tournament would be self-funded; estimated that there would be about 1500 entrants, and came up with an entry fee of $1000.  Subtract the $1M prize fund, and that's $0.5M for expenses and profit (I think that they later found that expenses were going to be more than they had estimated).

Hotel banquet room

Advertising/Website

Tournament directors

Security Staff' and devices.

Broadcasters/Commentators

Hotel rooms for all "employees"

Chess sets, boards, and clocks

Rating fees, USCF and FIDE.

Travel..there is plenty of this, all year. Amy Lee and Maurice doing promotions, and staff to get to event.

It's pretty easy to rack up half a million in operating expenses.

It is about how much they lose the first few years. Amy Lee expects a profit down the line. If they lose 3 milion dollars in 4 years and don't threaten to come close to breaking even in a single event, it's all over. 3 million in losses can double very quickly.

This is not necessarily true. Keep in mind they added another million to the cost. I am not sure where it came from, but if it came out of pocket then getting another 250 entrants really wont mean that much

That second million only has a 1/64 chance of being spent. 

After Nakamura cleans up, the word will be out and the floodgates will open for top level GMs looking to cash in. That will make it even less attractive for Patzerdom. 

As for another 250 entrants - that presumes a lot of people who are willing to wait for the pleasure of spending another $500 to enter. Kind of hard to envision.

500k in expenses has always seemed high to me. The principal cost is the facilities rental. Everything else can be "chess cheap." I'm sure the tournament directors, broadcasters, webmaster etc are all being paid in dog chow.  

There is no real media coverage, it's just a stream on a website, which anyone with a digital camera and an Internet connection can do for pennies. The security staff from what I hear is not exactly Pinkerton's, and they have all the equipment, banners, and such from last year.

If you recall, they used a free website to post results, one that was covered in hideous, irrelevant ads and was rarely functional. This isn't exactly a top-shelf operation, despite all the promises as such. It's two people who rent a Vegas ballroom for five days and bring along a cadre of chess tagalongs to help them throw a mid-sized chess tournament.

I'd put the expenses at closer to 200K, and almost all of that is a check to the hotel. Maybe 225, but I'm guessing we see cutbacks this time. No more limos for Sam Shankland.  My best guess is they lost about 700K on the last one and will lose about the same on this one. 

As for the financing, the angel was rich enough to retire quite young. That would presume at least 5 Million in the bank, and judging by how much she travels, I'd guess closer to 10. A decent interest rate will get you about half a million back every year on that...so yeah, she has the coin to blow on a bunch of diffident chess players.

The real question remains why. This isn't a person who had any interest in the game before any of this. It's clear we didn't need it, it's clear it's going to fail...is there so little else to do with one's time and one's money than pump it into this train wreck?

Bc6#

There are businesses that specialize in selling insurance for this sort of thing, so given how known the risk is (1/64) the orgainizers should be able to shop around and not pay too awful much above face value (1/64*100000=$15625). Even at a 20% markup it is less than 20K. 

Now, why they are adding this in at this time raises a whole set of questions. I'm suspecting they are trying to confuse me to death. Why they didn't just decide to pick a winner at random I don't get. As it is, the sooper seekrit strategy game sounds like a debacle in the making....

Yea, that second million definately is a weird choice, especially since being eligible for it also requires a player to play a very successful tournament.

I would have understood it if they had put it in in a way that allows to attract more participants who are rich but bad at chess, but the way they did it leaves me baffled tbh.

>but the way they did it leaves me baffled<  

That's because you are a chess player, and this has nothing to do with chess. Maybe they'll have a pie-eating contest next. 

@Milliern

I'm curious, what university did you get your degree in psychology/psychiatry at?

lol