The following sample account looks at what it would take for a small to medium sized Thai football club (fan base 5,000 to 10,000) to turn over monthly profit from gate receipts on game day.
The monthly account is based on an annual plan that would require the club to host on average two home games per month over a ten month period, or twenty home matches in a season.
Thus, the numbers would be all based and tracked using gate receipts. Ideally, home game turn over would be able to cover if not significantly contribute to player, training and travel expenses, in addition to return to executives and eventually share holders.
In this imaginary scenario I imagined I was master accountant of a Southern Thai football club playing in Thai Division One league for the 2012 season.
Therefore, I would rely on revenue from at least 17 league games and at least three cup or friendly games. Based on what I’ve seen possible after tracking attendance records from the 2011 season, I set a target of attracting at least 5,600 fans (4300 adults and 1300 children) per match or a total of 11,200 tickets to be sold each month.
To generate income on game day, I identified 23 revenue sources that would fall under four departments as follows:
1. Ticketing and Seating (4 sources)
- Premium Adult
- Premium Child
- Regular Adult
- Regular Child
2. Merchandise (8 sources)
- Umbrella Large
- Umbrella Small
- Sticker Book
- Sticker Pack
3. Food & Beverage (6 sources)
- Food A (rice or bread base meal)
- Food B (large snack)
- Food C (medium snack)
- Beverage A (large bottled drink)
- Beverage B (large cup drink)
- Beverage C (medium snack)
4. Media Spots (5 sources)
- Media A (Large LED scoreboard)
- Media B (Large LED scoreboard)
- Media C (Medium digital station)
- Media D (Medium digital station)
- Media E (Small digital stattion)
In each of these departments, I calculated an expected operating monthly budget by setting overhead costs which incorporated staffing, maintenance, and base costs e.g. printing, production, rental, etc.. See graphic below
I then set what I believe to be realistic unit sell price considering a unit base cost, and then set achievable sales goals for each department in order to achieve a profit, which subtracted expected overheads or operating costs from expected revenue.
After entering the necessary formulas and adjusting the numbers a bit with careful consideration, I was able to achieve a monthly target profit of 1.77 million baht: 3.89 million baht sales revenue minus 2.12 million baht overheads)
This monthly profit target is achievable for 10 months of the year, or from a total 20 matches per season, averaging 2 home matches per month. (Some months might have one match while others would have 3 matches scheduled).
Of course, with a football club, the biggest expenses a manager needs to allocate budget for is its players salaries, training allowances and away game travel expenses, and of course coaching staff and executive returns.
If I constructed a team consisting of 25 players, with a mean monthly salary of 50,000 baht each (some might earn 75,000 baht, others might earn only 25,000), then players’ salary overheads would equate to 1.25 million baht per month.
From our gate receipt turnover above figure of 1.77 million baht above, after paying the players, we would have about half a million baht left over for training allowances and away game travel expenses — more than enough.
However, salaries for coaching staff and executives is not accounted for. Therefore, it would be necessary to raise additional funds by making supplementary sponsorship deals for team jerseys and other club merchandise. (e.g. agree to only sell Brand X snack or beverage for Y games for Z exclusivity fee, etc.)
During the off season, or roughly 2 months of the year. the club could organize football camps and other friendly matches, ensuring the club presence in the local community continues to be active and maintain awareness. Student training camps and subsequent tournaments, for example would ensure players continue to train and earn salary while at the same time increase the club’s fan base (future profit) and of course contribute to the bottom line of raising funds for the team.