Download Northern Galaxy Basketball Club Inc

Northern Galaxy Basketball Club Inc.
Suggested Fee Structures for 2012
A Bit of Background
In 2010 Northern Galaxy made an operating loss of
$4,483.34, and a loss of $6,700.84 in 2012. Obviously
the club cannot afford to continue in this direction or
it will be un-financial within a very short period of
time.
In 2011 Northern Galaxy spent $17,655 in court hire, up
from just over $12,173 the year before. Income from
court fees for 2011 was approximately $10,000. Obviously
action needs to be taken to ensure the club does not run
this area of its finances at a loss; this can be achieved
by increasing court fees, reducing team training to a
half court only, finding cheaper court space, or a
combination of the above.
The actual fees to be charged in 2012 will need to be
agreed to at the AGM, or at a Special General Meeting to
be held between October and December.
Option 1 - Existing Fee Structure
Continue with the existing fee structure, that being:
1. Annual Membership Fee - to cover cost of team
nominations, uniform purchases, trophy day, advertising,
forfeit fines, and general costs such as post office box,
club mobile, annual audit etc. This fee essentially
covers all club costs except for court hire and court
fees, which are collected separately as a weekly court
fee; if however there is a shortfall in court fees that
must come from annual membership fees also.
In 2011 the annual membership fee was $70 per member or,
to encourage young members to join the club, $40 for U8
and U10.
Weekly Court Fee - The weekly court fee is to cover the
cost of BBI court/game fees and the cost of training
venue hire. In 2011 this fee was set at $11 per player
per week, whether the player made it to a game or not.
It is proposed that forfeit fines be included in court
fees, i.e. any team that incurs a forfeit fine must cover
the cost of the fine through additional court fees; I
suggest that the parties responsible for causing the
forfeit be accountable for paying these costs.
Option 2 – Court Hire Included in Annual
Membership Fee
Make two adjustments to option 1, to include training
venue hire fees collected as part of the Annual
Membership Fee, and to charge forfeit fines to the team
involved. The fees would then be:
Annual Membership Fee - to cover cost of training venue hire,
team nominations, uniform purchases, trophy day,
advertising, and general costs such as post office box,
club mobile, annual audit etc. This fee essentially
covers all club costs except for court/game fees, which
are to be collected separately at the game.
In 2011 the annual membership fee was $70 per member or,
to encourage young members to join the club, $40 for U8
and U10.
It is suggested that a flat Annual Membership Fee of $145
inclusive of training venue hire be charged.
With 150 junior players, collection of a $145 Annual
Membership Fee will ensure the club raises approximately
$21,750 towards operating costs including training venue
hire (training venue hire was $17,655 in 2011). This
leaves only $4095 for all costs other than court hire, a
shortfall of $4,311.74 based on 2011 expenditure; hence
it is also proposed that the club MUST find alternative
training venues, or renegotiate with existing venues, and
must reduce cost of training venue hire by at least
$5,000 to remain financially viable into the future; or
find sponsorship/fundraising to the value of $5,000.
Weekly Court/Game Fee – The weekly court fee is simply
enough to cover the cost of weekly court/game fees
charged by BBI, but capped at not more than $10 per week.
Teams that cause a forfeit are charged a forfeit fine of:
 More than 7 days notice – NIL
 More than 48 hours to less than 7 days notice - $70
 Less than 48 hours notice $140
It is proposed that this cost be passed on to the
individuals responsible for causing the forfeit and that
this be in addition to the $10 per week maximum
court/game fees. This should be promoted by the club on
the registration form and on the club website to ensure
everyone is aware of the possible cost.
Option 3 – All Costs Charged Upfront, Included in
Annual Membership Fee; excluding Summer Season
Under this option all fees, including court/game fees will
be charged up front as a single Annual Membership Fee. This
option should exclude Summer Season, and possibly be reduced
for players joining the club after Grading Season, but that
is a matter for the 2012 committee to decide.
Based on a 9 week Grading Season plus a 21-week Championship
Season this fee would be calculated as follows.
Fees (as per option 2) of $145 plus court/game fees of $240
(calculated at 30 games x $8 [$8 representing 7.5 players
per game per team on average at court fees of $60 per
game])= $385.
Pros
1. Under this option the club will raise $57,750 up front
and is in a position to invest much of the funds to earn
interest.
2. Under this option team managers no longer need to collect
any monies from members, nor will they need to pay funds to
BBI. This makes the managers job easier, and will encourage
more people to assist as managers.
3. The club earns a guaranteed income for the year, based on
membership registrations.
4. Parents do not need to find money each week.
5. If a team is short players it is easier to find fill-ins,
as there will be no cost to those players.
6. This fee structure will encourage unreliable players to
seek membership elsewhere, making a more rewarding
experience for reliable members.
Cons
1. Affordability. A number of members and perspective
members may be put off by the cost. Especially from
families with multiple children wishing to play.
2. This is not a preferred choice of BBI.
3. While the club earns a guaranteed income, it is
responsible for all costs once membership has been paid. If
there is an error in the calculation of fees the club stands
to make a loss.
Other Considerations
1. Perhaps an instalment plan may be necessary to ease
the affordability burden. This could be done as 4
monthly instalments of $100 and therefore the club
effectively earns an extra $15 fees per player on
instalments.
2. What will happen with players participating in more
than 1 team? Or will it be set that this fee covers a
player’s first team only, and that additional court/game
fees will be collected by the club for extra teams that
player participates in as a permanent team member.
3. What will happen with players who register after
Grading Season, or Summer Season? Will they be given a
reduced fee?
4. Under this option it will still, most likely, be
necessary to reduce expenditure by seeking cheaper court
space, or less hours of court hire, etc.
Please note, most figures and number of rounds
suggested in this document are estimates and
guesses only, and may change without notice.
Financial figures for 2011 are accurate, as per
the profit and loss statement.
Figures such as court fees are set by BBI, as are
the number of rounds in each season; and the
number of players per team and attending per game
are subject to fluctuation.
These factors mean any decision made should be
amendable based on extenuating circumstances.
This fee structure is suggested for Junior
Teams Only.