Playoff / Postseason Revenue — Recognized Per Playoff Game as Played (Variable Outcome)

💡 Accountant's Note

Playoff revenue presents a unique accounting challenge — teams often sell tickets for potential home games before the playoff bracket is set (or before the team knows how many home games it will host). If a team sells tickets for Games 3, 4, 5, 6, and 7 of a series and loses in 4 games: it must REFUND the proceeds for games not played (Games 5, 6, and 7). The revenue for each game is recognized only when that game is played. Variable consideration: if advance playoff tickets include 'potential games' that may not occur, the non-occurrence creates a refund obligation — recognized as deferred revenue until either the game is played (recognize) or it is determined the game won't be played (refund the advance payment). This creates a significant temporary liability when playoff tickets are sold in advance for a lengthy series.