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Miami Heat Cost One Florida Bar $30,000

honz

honz

Thunder Fanatic
Contributor
This is pretty crazy.

https://www.cnbc.com/id/40415733

For the Miami Heat season opener against the Boston Celtics, John Todora and his business partner Bob Hartley had an idea that would likely increase business at their bar.

They'd promise to pay the bar tab if the Heat lost.

The rules?

Fans much come into the bar, Whiskey Tango in Hollywood, Fla., located about 20 miles from Miami, and sign up on a list at least 30 minutes before tipoff. If the Heat lost the game, that fan would earn a $25 credit towards his or her alcohol bill.

The Heat lost the game, played on Oct. 27, 80-88. And although the bar lost $4,000 in lost beer and liquor sales, Todora and Hartley decided to extend the offer for the rest of the season.

"We figured, why not make our bar a home for Miami Heat games," Todora told CNBC. "As a fan, you can't lose. If they win, you go home happy. If you lose, we've at least compensated you in some way."

But Todora couldn't have foreseen that he'd be paying out so many bar bills. The Heat, stacked with LeBron James, Chris Bosh and Dwyane Wade, were predicted by some to give the 1995-96 Bulls a run for their record 72-game win season. But through the first 17 games, the Heat have collapsed. A loss against the Mavericks on Saturday, made their record 9-8.

So how have eight losses hurt Whiskey Tango?

"We've refunded about $30,000 worth of drinks," Todora said.

Does he regret that he promised to do this for the season? Did he take any sort of insurance?

The answers are no and no.

"We're pretty much unprotected from an insurance standpoint, so we're kind of at the mercy of the Heat," Todora said. "But we're happy we did this. It has given us so much publicity."

Todora said that people have come from miles away, passing plenty of sports bars to come to Whiskey Tango. Some Clevelanders visiting Miami even decided to watch a game at the bar.

"I asked where they found out about us and they told me that they read about our losses in the Cleveland Plain Dealer," Todora said.

So how are the losses "worth it?" Well, first consider that while the bar has paid off $30,000 in bills, Whiskey Tango paid less than $10,000 for the alcohol itself — the rest is the standard markup.

In exchange, Whiskey Tango has been talked about on networks from ESPN to CNN and Todora says he has done more than 60 radio interviews.

"I couldn't buy that for $10,000," Todora said.

Todora said $25 typically covers all a person can drink in the three hours it takes to watch the game, including getting there 30 minutes before. Beers average about $3 each and there are bucket deals. Fans must stay until the end of the game to receive their $25 rebate, which only comes off the alcohol bill and is given in the form of a gift card.

While Todora is happy about all the publicity, he says as a converted Heat fan, he'd rather not see the team lose. He's actually worried that even with the promotion, people will stop coming into the bar if the team loses too many games.

Said Todora: "In New York, they'll keep watching the games so they could boo you and get angry, it's not that way here. People will jump off the bandwagon as quickly as they jumped on it."

Questions? Comments? SportsBiz@cnbc.com
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Doesn't say but they did mention that in the article KEK. Don't act all smart, smart guy.

How's the fitness going?
 
So how are the losses "worth it?" Well, first consider that while the bar has paid off $30,000 in bills, Whiskey Tango paid less than $10,000 for the alcohol itself — the rest is the standard markup.

In exchange, Whiskey Tango has been talked about on networks from ESPN to CNN and Todora says he has done more than 60 radio interviews.

"I couldn't buy that for $10,000," Todora said.
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I'm no Candrew Carnegie; but doesn't the mark-up pay for stuff like, I don't know, payroll, rent, insurance, electric bill, those little cakes for the urinals? Business would have to more than triple to cover the losses.

And good luck paying your mortgage with all that free publicity after The Heat's 40th loss.
 
honz said:
Your reading comprehension is really improving the more you try to teach those kids how to read...
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Please state exactly where it says how much they have profited? In other words, if its net revenue every November has been an average of $85,000 over the last five years (give or take a few thousand year to year) and they spiked to $130,000 this November due to the promotion, they've made $45,000 more than usual. This is what I mean. I want specific numbers.

****ing hack.

You too O>D.
 
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They are probably making enough extra to cover the 10K, and any overhead that the markup would have covered.
I am sure they make enough on the food to make up for the loss in drinks.
There is a limit to the number of people they can have in house during a game, so they probably did the math and knew they could cover it even if there were 41 losses.
How big is the bar, and how many people are there during games vs how many were there before the promotion?
They are also right in that the publicity cannot be calculated for what they are paying.

I'm sure they are making bank off of this deal, even if the Heat stink it up.
The $25 is given in the form of a gift card, meaning they pay their bill, and will be back for their free drinks later, and more food.
Maybe even some of the gift cards will not be redeemed.

After one night, and a loss at that..... they decide to keep it going? They only do that if they make money the first night.

KEK's question is legit, so you should probably go "smart guy" on yourself.
 
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