Challenges of running a club - funding

As we have written before, a sports club can play a vital role in a community.

However, when it comes to managing the financial aspect of running a sports club, things can get tricky. Club owners are, usually, sports enthusiasts and don’t have the knowledge on how to approach this. This in turn can put a lot of pressure on them and the survival of a club becomes a month to month affair.

Today, we will dive a little deeper into the financial aspects of running a club and share some tips on how to make your life easier.

Revenue sources

First we have to discuss how your clubs gets funded. For the most part it can be one of the following three sources.

Membership fees

This is the most common way of getting funding into the club. Clubs try to set a reasonable membership fee that will cover operational costs and leave a little extra for the club to invest later while remaining affordable for all members

Sponsorships and partnerships

Some clubs seek local business and sponsors willing to support the club. Clubs offer them different sponsorship packages with different offers ranging from advertisements on banners or sports equipment to having their name added to the clubs name. Cultivating long-term relationships benefits both parties. Clubs can count of having a stable financial outlook, while their sponsors use it to enhance their public image.

Fundraising events

This might be the least common way to raise funds but it can be quite effective. Small clubs can organize different events throughout the year to raise necessary funds and allocate them strategically for the rest of the season. This way of generating revenue is quite unpredictable but it can help a new club engage with more potential members and become part of a community

Budgeting and financial planning

Once you have a rough outline of your club’s financials, or income, it’s time to allocate those funds by creating a detailed budget. Now that you have the income outline it’s time to create the other side of this scale - expenses. You have to include all fixed costs like rent and utilities as well as variable costs that might include equipment, uniforms, tournament fees etc.

It’s very important to regularly review and adjust the budget as needed. It’s better to skip the training camp you wanted to have for your race team than to put your club in the red and not be able to survive the season.

If possible, maintain an emergency fund to handle unexpected costs. You might have to repair equipment or have to look for another venue. You want these things to be annoyances and not do or die situations.

Grant application and funding opportunities

Every year, local governments award special grants to sports clubs, community development and youth programs. You should regularly spend some time actively looking for those opportunities and applying. There are also many agencies which specialize in grant applications and it may be a wise approach to work with one of them because they can give you a better chance of winning a bid.

Financial transparency and accountability

Whatever you do, it’s paramount that you provide transparent financial reports to club members and stakeholders. Share the income statements, balance sheets, cash flow statements or something else that will give everyone the right picture where you stand when it comes to your finances. Even if the results aren’t what you have been hoping for, by providing true data to everyone, you will build trust and encourage continued support.

Trying finding someone with financial expertise to assist you with bookkeeping and financial planning. You would be amazed by how many people do it for a low fee or even for free. You just have to ask.

Stay positive

Running a sports club involves passion, dedication, and financial acumen. You can set up your club for success by diversifying your revenue streams, creating a solid budget, seeking funding opportunities, and maintaining transparency within your club.

Try always staying on top of your financial because this is the only thing that will keep your club running and enabling you to share your passion for the sport with your members.