Question

Which Player Development Executive should you hire?

You are the senior Marketing Executive at a Casino which is performing at about the middle of the competition in the market place. You are hiring a new Player Development Executive. You have it narrowed down to two choices. Which one should you hire?

For your assignment do a one year profit estimate including forecasted revenue less forecasted expenses for each of the two executives. Then make a recommendation on which exec you would hire and why.

John Stable is currently an unemployed player development executive who was recently laid off from a local casino. He worked for the same casino for all of the 10 years. He has been out of work for about 3 months. He claims to have the following player base.

• 300 Loyal Players who he has serviced for 10 years

• Average Theoretical win per year of the players from $15,000 – 20,000 per year.

• Required Salary $75,000

Sue Flyer is currently employed at one of the most popular casinos in the city. She services the very top high end players including celebrities

and international players. She has been with the company since it opened which was about 5 years. She claims to have the following player base.

• 50 high end players

• Average Theoretical per year of $100,000 - $125,000

• Required Salary $300,000

Assume the casino would comp players 30% of theoretical win. Be sure to factor in to your estimate an assumption of what percent of the player

base will actually follow the Player Development Executive to your casino.

Answer 1

1. If we estimate the minimum income through John, that would be 300 X $15,000 = $45,00,000 Per Year. And, he is asking salary of $75,000. Which means that he would be giving returns to the casino $45,00,000/$75,000 = 60 times from his salary.
2. If we estimate the minimum income through Sue, that would be 50 X $100,00 = $50,00,000 Per year. And, he is asking salary of $300,000. Which means that he would be giving the returns to the casino $50,00,00/$300,000 = 16.67 times from his salary.

By going this calculation, it is clear that hiring John Stable would be less economical and would be beneficial for the casino. Hence, as a Marketing Executive, I would hire John Stable as a new Player Development Executive.