Business Aspects of Club Management. Revenue, Expenses, and Budgeting.

Business Aspects of Club Management

Revenue, Expenses, and Budgeting

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Revenue

Primary Revenue Sources

• Registration Fees• Program Fees• Tournaments

Secondary Revenue Sources

ConcessionsFan GearFacility Rental

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• In the current youth soccer landscape how accurately can we predict our future growth?

• What factors must we consider when looking toward the future?

• What Key Performance Indicators (KPI’s) can we identify to help us maximize our growth.

• Can our assets handle growth?

Potential Questions When Forecasting Revenue

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Expenses

Fixed Expenses

• Salaries• Rent or mortgage• Debt service• League or Assoc.

Fees• Insurance

Premiums

Variable Expenses

• Utilities• Equipment or

Uniforms• Supplies• Travel• Professional

Development• Player/Team

Registration Fees

Capital Expenses

• New Facility• Improve Facility• Goals• Vehicle

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• What investments can we make that will help our organization?

• How can we reduce our fixed costs without hurting the organization?

• Can we find partners that will add to our organization while reducing our costs?

Potential Questions When Forecasting Expenses

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Budgeting vs. Accounting

• Budgetingo Revenue Allocation and Projectiono Addresses Spending

• Accountingo Determining Assets and Liabilitieso Tracking revenues and expenses on a

regular basis Daily, weekly, monthly, quarterly,

and yearly

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Why Budget?

• Provides a way to measure financial performance.

• Provides insight into organization’s objectives.

• Improves coordination for whole organization.

• Predict future organizational problems and opportunities.

• Allows for real-time accountability.

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Questions to Ask During the Budgeting Process?

• What is our mission?• How did we perform against last years

budget?• Were there any “special” circumstances

that impacted our performance against last years budget?

• Are there any significant changes from last fiscal year to next fiscal year?

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The Budgeting Process

1. Review previous year’s budget.2. Get input from organizational leadership.3. Provide framework to department leads.4. Assess draft for reality, accuracy, feasibility5. Meet with key individuals to discuss any

questions.6. Produce final version.7. Get approval from BOD.8. Implement9. Audit and Evaluate

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Financial Statements

• Balance Sheeto A snapshot of the financial position of

the club.o Assets and Liabilities

• Profit & Loss (Budget vs. Actual)o Shows how each category is performing

against the budget.• Profit & Loss by Class

o Shows the profitability of each class

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Who does the work?

• Board Member• Treasurer• President

• Staff Member• Executive Director• Admin Assistant/Manager

• 3rd Party • Outside Accountant or Bookkeeping

Service

Marketing

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5 P’s of Sports Marketing

• Product• Price• Place• Promote• Public Relations

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Product

What are you selling?• Core Product

o Mission Statemento Product Lines within the Club

• Extensionso Items that add to the experience

• Positioningo How customers perceive you in the

marketplace

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Factors to Consider When Determining Price

• The Consumero Does the price impact how consumers view

your product?• The Competitor

o How can you manipulate the price based upon your competition?

• The Company o Where can you adjust your costs to achieve

your ideal price point?• The Climate

o How does the economic climate impact youth sports?

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Positioning: Where does your club reside?

COMPETITIVE

EXPENSIVE

RECREATIONAL

INEXPENSIVE

X

X

X

X

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Place

• Fields• Office Space• Indoor Space• Club House• Concessions• Location

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Place

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Place

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Promotion

• Promotion Includes:– Advertising– Personal Selling– Publicity– Sales Promotions

• Promotion Should:– Increase Awareness– Attract Interest– Arouse Desire– Initiate Action

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Promotion

• Social Media– Facebook – Twitter– Instagram– Vimeo– YouTube

• How else can social media benefit your organization?

• What negatives can social media have?

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Image is Everything!!!!!!

• Community Relations– How can being involved in

non-soccer community events help your soccer club?

• Media Relations– Mass Communication

• Internal Relations– Relationship Cultivating– Recognition of Brand

(Association/Club)• Online Presence

– Where are you driving your content?

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Manipulating the 5 P’s

• Developing the right product, at the right price, offered in the right place, and promoted the right way.

• Each P can be manipulated to help achieve the goals and wants of the consumer.

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