How much would it cost to run An A-league club?


How much would it cost to run An A-league club?

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Razor Ramon
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hmmmm:-k

Its a very interesting topic.

I was thinking about this the other day... I know theres some wealthy bastards running A-league clubs here. Some are Multi-millionaires some are Billionaires Yes Im referring to you clive palmer and frank lowy.

Ill got with a couple of examples...

lets say newcastle Jets...

Salary cap with out any marquee player(s): $2,775,000

cost to rent home ground for one game: $75,000

Cost to rent home ground for a season: $75,000 x 15= $1,125,000

Cost to Advertise/ promote the team and or games = varies.

Cost to buy tickets for the away games = varies.


Another example Gold coast united...

Salary Cap without any Marquee player= $2,775,000

cost of jason culinas marquee yearly salary= $1,400,000 (does not include in actual salary cap)

cost of use of ground= at full capacity= $120,000 a game
capping at 5000 seats= $60,000 a game

cost of renting ground for whole season= full capacity $120,000 x 15= $1,800,000
capping at 5000 seats= $60,000 x 15= $900,000

advertising the team and promoting the team= varies.
travelling costs= varies

Its not fully accurate but You just wonder how much it would cost a season to run a team
thewestisland
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I was thinking about that the other day based on winning the $27million lotto that just went over here and taking over Auckland City with a view to go pro and perhaps enter the A-League. Acquire the few houses around Kiwitea Street, build a big bank and put uncovered seating on it, move the pitch over about 20 metres or so and build a proper grandstand on the Street side, build small banks at either end with approximately ten 5-10 rows of uncovered seating, and build a large bus station at the ground!
bluebird
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Add to that:
Coaching and staff
Trainers and staff
Medical
Facilities for training
Resources for training
Player expenses (player kits, meals, etc...)
Cost of club house
Merchandise
Travel and accom

Revenue sources:
TV dollars
Sponsorship and corporate
Merchandise (shared)
Gate receipts (minus concessions, membership discounts, free tickets, coporate discounts)
Donations



Razor Ramon
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Well you need a few million to do it at first.
Razor Ramon
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bluebird wrote:
Add to that:
Coaching and staff
Trainers and staff
Medical
Facilities for training
Resources for training
Player expenses (player kits, meals, etc...)
Cost of club house
Merchandise
Travel and accom

Revenue sources:
TV dollars
Sponsorship and corporate
Merchandise (shared)
Gate receipts (minus concessions, membership discounts, free tickets, coporate discounts)
Donations




Top post there. good to see your in depth view of things.
thewestisland
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I also thought about it a while ago when they proposed a North Shore/Northland bid in the ASB Premiership (NZFC). I've always been keen on a standalone Northland bid (being my home) and thought about the possible costs of putting it through. Apparently fielding a team in the NZFC costs around $500,000 per year with little in the way of TV rights, sponsorship and gate receipts. Teams are heavily reliant on a Kiwi side winning the O-league and the share of the prizemoney that is shelled out to the league members. I think it could be done though.
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Razor Ramon wrote:
bluebird wrote:
Add to that:
Coaching and staff
Trainers and staff
Medical
Facilities for training
Resources for training
Player expenses (player kits, meals, etc...)
Cost of club house
Merchandise
Travel and accom

Revenue sources:
TV dollars
Sponsorship and corporate
Merchandise (shared)
Gate receipts (minus concessions, membership discounts, free tickets, coporate discounts)
Donations




Top post there. good to see your in depth view of things.


Top praise there, good to see you can build someones self esteem
KiwiChick1
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And plus you have to keep pumping in money even if you're not getting any back.
skeptic
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It seems no one thinks you need to pay for admin and executive staff and youth team wages, staff, travel, accomadation and other associated costs. This has been done a dozen times before, btw.

This quote from just a week ago in this thread http://au.fourfourtwo.com/forums/default.aspx?g=posts&t=43288&p=3

skeptic wrote:
Davide82 wrote:
Ive been thinking...
Surely Adelaide United doesn't run at a loss....
The year that Bianco lost some cash was when we got top the ACL grand final and that was where he lost it all I believe.
We can't be actually costing the FFA much can we?

If Adelaide United with a core crowd of 10,000-13,000 every season and a stadium in which we are the sole tennants can't make a profit or at the very least break even then the whole model is more fucked than we all thought!!!! How many back room people do we employ? How much do the top dogs make?

No-one actually ever mentions that we make a real loss perhaps it's just a case of finding it hard to find local owners from SA.

does anyone know how much we actually cost the FFA a year? Id wager not much to nothing surely...



What sponsorship dollars do you get? Your attendance would just cover player wages, then you have football operations, (non playing staff, coaches, medical and other associated costs - going on a quote from the new jets CEO, they were in the past spending 1.1 mill and now 2.5 which he said was an average amount in the league) admin, (Your website states a minimum of 10 executive and non executive staff) marketing, match day costs, (corporate catering, police/security, stadium hire, match day wages ect) away game costing (travel, accommodation) and youth team costs.(youth wage, travel, accommodation, coaching staff ect) Who funds the wleague team?

Conservatively, outgoings would be a minimum of 6 to 6.5 million. Fair?
Income would be 2.6 million approx. gate takings/corporate box, based on existing attendance and $20 average per person. (kids, concessions below and other above)
1.3 million fox and travel subsidy funding from ffa. (if i remember rightly)
Sponsorship $?

So, depending on sponsorship dollars, you could have a shortfall of 2.5, mill and that's being conservative.



And this has to be done year after year with a couple of million per year in compounding debt. For poorer attended clubs with around 5k average, add another 1 - 1.5 million debt. And some ask why we harp on the importance of crowds.

Edited by skeptic: 26/10/2010 07:16:32 PM
robstazzz
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Im not 100% sure but i think when Tinkler took over he announced a budget of $2,500,000 for the Jets which im pretty sure covers all costs involved to run the club not counting the salary cap and stadium hire.
My guess in the Jets case is $6,400,000 a year to run the club.
Thats if the salary cap really is $2,700,000 because i thought it was $2,200,000 this season.
subbuteo
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well documented that the nix lose 1.5mill or so every year... its alot of big macs
Burztur
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Considering that the Rovers required around 6 mill in funding I would estimate that it costs around 6 mill a year to run a club?
skeptic
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robstazzz wrote:
Im not 100% sure but i think when Tinkler took over he announced a budget of $2,500,000 for the Jets which im pretty sure covers all costs involved to run the club not counting the salary cap and stadium hire.
My guess in the Jets case is $6,400,000 a year to run the club.
Thats if the salary cap really is $2,700,000 because i thought it was $2,200,000 this season.


That was quoted as an increase in the 'Football Operations' budget from 1.1 to 2.5. which also doesn't include admin and exutive staff salary and associated costs. Easily a minimum of a further 1 million and likely closer to 1.5.
TimmyJ
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$8M - $10M has been quoted a few times. I think that might be without Marquees too.
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