Sports clubs – whether football, cricket, rugby, tennis, golf, archery, judo, or hockey – need a steady revenue stream to pursue their short, medium and long-term goals, as well as offset operational costs during the season.
While membership fees are the most reliable source of income for sports clubs, the ongoing Cost of Living crisis means many committees will look to avoid raising membership fees in a bid to keep sport as accessible as possible.
So what are the alternative options for sports clubs?
Here are three ways sports clubs could look to augment their revenue without having to raise membership fees.
Sponsorship can be a lucrative way for sports clubs to increase their revenue.
Many businesses – whether local or national – are looking to increase their visibility in the community by partnering with grassroots sports clubs. The benefits for businesses are twofold: brand exposure and tax relief.
As a club sponsor, businesses can enhance their reputation and foster positive relations with the local community, generating loyalty to their brand which can lead to engagement from new audiences. Companies can also receive tax relief of up to £2,500 for ‘contributions to grassroots sports through recognised sport governing bodies’, including sponsorship.[1]
Sponsorship can come in various forms.
Shirt sponsorship is a familiar aspect of amateur sport, with most clubs having a front of shirt sponsor. However, sports clubs can also look to add sleeve, collar, and back of shirt sponsors, which also offer great visibility to companies. In addition, banner or board sponsors at the ground can provide fantastic brand exposure to spectators.
However, clubs should not neglect digital sponsors. A few avenues include: sponsors appearing below player’s names on team sheets; weekly match ball sponsors announced on social media; and rolling banners embedded on the website.
Securing sponsors can be a difficult though, and a long-winded process with no guarantee of success, while sponsors may withdraw support if they are facing difficulties themselves. Luck can be as important as persistence, and the new deals need be better than existing deals to increase revenue.
Like sponsorship, fundraising events can give a short-term boost to sports clubs’ finances.
Common examples include ‘Race nights’, barbecues, or raffles on awards nights, which add to the social calendar and foster a good club culture.
However, committees looking to stop relying on their members for cash need to ensure these events appeal beyond the existing club membership.
A ‘fantasy’ football/cricket/rugby competition with club players can be a fun way to entice friends of friends to take an interest in the club’s fixtures, while a music festival hosted on club grounds could be a way to engage with the local community.
These events, however, are often reliant on volunteers, good attendance, and potentially good weather, making them unreliable sources of revenue.
The majority of sports clubs have cash reserves to ensure they can meet operational expenses and respond to any unexpected costs, such as property damage or equipment breakage.
However, these surplus funds are often left in zero or low interest accounts, meaning many clubs are missing out on potential earnings that could enhance revenue streams and benefit their members.
As a hypothetical example: a cricket club has £15,000 in their bank account currently earning 1% AER. In a year, provided the rate didn’t change, the club would earn £150 in interest. However, if the cricket club had the same amount in a 4% AER fixed-term account, the club would earn a guaranteed return of £600 – all without having to organise any events or rely on external sources.
In this example, the additional £450 of revenue earned from interest could be used to offset the cost of cricket balls, pay for volunteers’ coaching qualifications, or subsidise new kit.
Crucially, the interest earned from a fixed-term deposit account is a guaranteed return.
Finding the best savings account for sports clubs can be a challenge. High Street banks may not provide the most competitive rates, and enticing products offered by challenger banks often have high minimum deposits, couple with the prospect of more paperwork later down the line.
Club officials might be put off trying to secure high interest Instant Access, Fixed-term and Notice accounts by having to apply to a new provider every few months.
The solution to this problem could come in the way of a cash savings platform like Akoni Hub.
Founded in 2016, and part of Stubben Edge Group (“Stubben Edge”) since 2021, Akoni Hub (“Akoni”) is an online cash savings platform that has over 20 FSCS protected, UK-authorised Banking Partners.
With no minimum deposit to onboard, clubs of all sizes, whether they are registered as a charity, non-profit organisation, or a limited company, can access a wide range of savings accounts, including Instant Access, Fixed-Term and Notice accounts – all with one application to the platform.
To start a free, no-obligation application, follow this link: Akoni| Register
If you’d like to hear how your sports club could get better interest rates, call 020 3137 9388 to speak to one of our team (lines open 9am to 5pm Monday to Friday), or email contact@akonihub.com and we’ll get back to you within a working day.
If you have any questions, please visit our FAQ section: Cash PlatformFAQs - Your Questions Answered - Akoni
Sources:
1) Corporation Tax: deductions for contributions to grassroots sport - GOV.UK
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