In the world of modern sports, where success depends largely on effective organization and management, the use of advanced technologies emerges as a critical factor in maintaining a sports club at a high level. User-friendly digital applications could support both its financial operation as well as the development of players’ skills. A management platform enables, on the one hand, the rationalization of its financial and, in general, its business administration and, on the other, the efficient management of members by establishing direct communication with them.
In the lines to follow, we attempt to outline key ways that will help you manage more efficiently your club’s revenues and expenses. We recommend new approaches concerning the financial aspects of its daily operations and we demonstrate how a management platform can truly be a game-changer. Take a close look at the following and get ready to take your sports academy to the next level!
Effective Financial Management
Classify Revenues and Expenses
The first step towards a successful financial management is classifying revenues and expenses. This is the only way to acquire a general overview of the club’s financial situation in order to make targeted interventions. In the same way that a coach doesn’t merely look at the final score of a game but takes into account specific statistical categories in order to gain a deeper understanding of what went right or wrong, the administration is tasked with distinguishing between different kinds of financial flows. Its aim is to grasp the special characteristics of each classification and, eventually, formulate an efficient financial strategy.
Which might these categories be? Indicatively, we mention the following:
A) Expense Categories
- Coaches’ salaries
- Players’ salaries
- Equipment (balls, cones, etc.)
- Facility maintenance (hoops or goals, court or field, stands, etc.)
- Office supplies
- Medical Supplies
- Travel Expenses
B) Revenue Categories
- Member subscriptions
- Government grants
- Donations and contributions
- Revenues from commercial activities or from sports services
Management of Expenses: The Foundation of Financial Success
By Following the guide outlined above, which you can expand to fully adapt to your needs, you will be able to accurately record and track your budget allocation. This is required in order to proceed to any differentiation or cutbacks. In other words, prior to making informed decisions about the various financial issues and choices that open up, you should first gain a comprehensive understanding of the various sorts of expenses.
It is essential to distinguish between operational expenses and capital expenditures. For more targeted decision-making and effective implementation, we suggest grouping the various expense categories into these two broader classifications. Thus, you will have, on the one hand, daily expenses, and, on the other, long-term investments (e.g. improving the condition of your basketball court or football field). For instance, if your goal for the next 5 years is the commercial and sports enhancement of your club, then you have to invest in capital expenditures, while you may need to limit those expenses related to daily operation (e.g., salaries, office supplies). The suggested breaking down of expenses contributes to financial stability and prosperity of the club, as well as to making more informed decisions about its future.
Revenue Management: The MVP of Success
The financial viability of a sports academy is not guaranteed solely by rationalizing and (probably) by limiting expenses but also by developing a variety of revenue sources. That is why it is imperative to follow the path outlined above, so that you could gradually become more informed about your financial inflows and address any shortcomings. In case you notice some drop in sponsorship revenues over a span of some years, it makes sense to reconsider your strategy (see here on how to develop the ideal sponsorship strategy).
At the same time, you will be able to identify which revenue sources provide greater value. If your goal is to improve the condition of your arena, consider reaching out to your members for donations or organize a sports camp, inviting the entire local community to participate through a targeted advertising campaign. In case you have access to a team management platform, such issues are resolved just by having a quick glance at the data. Camp-like events (see here how you can extract commercial value from organizing a camp) not only attract the attention of the local media but also connect potential members with the club itself and introduce them to the quality of its services. Therefore, such an investment could generate both immediate and future revenues.
Your goal, of course, is not just to maximize the revenues generated by existing sources but also to discover new ones. By diversifying your revenue sources, you gain flexibility and reduce dependency. With a management platform, long-term financial planning relies on solid foundations.
From the above analysis, it becomes evident that a team management platform offers a range of possibilities which can simplify the tracking of the various aspects of the financial process. Organizing expenses and revenues through the platform makes the supervision of those classifications much easier and more efficient. Consider the assistance a management platform would provide, if you could be daily updated from the application dashboard about coach and staff payments, registrations, sponsorships, etc.
Member Management and Communication
If financial management is the necessary condition for the successful track of a sports club, then communication (in all its aspects) is the sufficient condition for its actual enhancement. Despite the fact that financial sustainability will always attract more attention, the effective management of club’s members as well as the continuous improvement of your staff’s communication skills could establish a direct connection between the club and its members.
Data Collection from Athletes/Parents
A necessary feature of a sports club management platform is the collection and processing of members’ data (athletes and parents). Such information includes, for example, age, height, contact details, medical history, clothing size, as well as other information related to their performance, such as coach’s annual evaluation, statistical data, etc. Having such data available allows the club to keep track of its player’s progress, intervene in case of emergencies, adjust its services, and eventually, contribute to the development of their skills. Without such a platform, it is impossible to collect such information and use them effectively.
Communication between the club, coaches, athletes, and parents.
Given that parents and players are in constant communication with the club, it is high time for an upgrade! The communicative mission undertaken by the club’s administration and staff is one of their most crucial tasks (see here for the communication duties of the secretary). A sports club management platform renders traditional methods unnecessary. Phone calls or cumbersome Viber/Whatsapp groups are replaced by automated emails, SMS, or push notifications. Any change in the original practice time ceases to be a headache for the secretary, as the platform establishes a continuous interactive communication environment. As far as the coaches are concerned, they have the opportunity to upload performance evaluation comments (individual or team-related, regarding practices or games) to the digital platform, which can be seen by the player by just having a look at his phone. Through a management platform, the academy’s operation reaches a new level.
The Team Management Platform
You are now adequately informed about the proper financial and communication approach for a sports club. At least theoretically. To put it into practice, what you need is a management platform. All the functions described above can be integrated into the platform, providing you with a much more user-friendly experience in managing the club. MyTeam app is one of the available options, and you can book a presentation to learn more about it here.