With over 60 years of combined experience in indoor athletic facilities and outdoor sports across the United States, Pinnacle has historical expense and revenue figures to predict operating and cash flow estimates. Most importantly, in this process is the understanding of the finite nature of this business; managing the opportunity based on space usage is paramount. Understanding the significant fixed costs and controlling the "usage" based variable costs are vital components to achieving desired profitability.
Pinnacle financial services include the on-going service of revising financial models as the project progresses for changes in substance or circumstance. Multiple variations are typically constructed between planning and opening.
Pinnacle's financial models are designed in a sophisticated, proprietary, table-driven spreadsheet that allows clients to change certain predictors (number of teams, team price, number of games, length of game times, etc.) within the spreadsheet to see how those small changes affect the greater financial picture as a whole. This provision enables experimentation with "what if" scenarios without compromising the integrity of the financial model. Additionally, the financial model will serve as the basis for the operating sports business budget of the organization.
Financial models include revenue by:
- League by Sport
- Number of Games/Session
- Youth vs. Adult
- Total number of Participants
- Pricing by Individual/Team
- Average hourly rates for leagues, rentals, and other programming
- Food and Beverage
- Corporate Marketing Partnerships
- Non-traditional facility usage (rentals, parties, camps, clinics, tournaments, events, and festivals)
Additionally, expenses included in the financial model which impact your sports business budget includes the following, at a minimum:
- Construction Costs Impact
- Start Up Costs (staffing, legal, insurance, equipment, marketing, etc.)
- Utilities
- On-Going Staffing (employees and contractual
- Management operation systems (computers, software, licensing)
- Communications (telephone, internet)
- Maintenance and Janitorial
- Marketing
- Administrative overhead
- Insurance
- Taxes
- Food and Beverage Cost of Goods Sold
- Dues, fees, subscription
Pinnacle’s sports consultants have extensive experience in building financial models that help you tackle your sports business budget like a pro.
For more information on how you can work with the nation's leading sports facility consultants on your indoor athletic facilities or outdoor sports, give us a call at 502-632-6799 or e-mail us at .