[Preface: A more detailed discussion of SCYSA financials can be found at this link.]Here's some information that I hope can be discussed at the President's Meeting among the clubs and the SCYSA.
The most interesting things are as follows:
- Top-line revenue growth was 14% for the last two years while top-line expenses grew at 18%.
- Sponsorship revenue has declined 56% in the last two years.
- As I understand it, the marketing and publications expense item should go down drastically due to the switch to electronic media.
- From 2003-2005, insurance costs rose 130%!
- Administrative costs rose drastically (39%) as did directors expenses (30%).
- The SCYSA can continue losing money for years to come with no threat to their solvency. Their cash position on May 31, 2005 was $303,426; down from $328,656 in 2004 and down from $335,515 in 2003.
Earlier this year I asked about a decline over the last few years of 3000 registered players from the SCYSA. It turned out that the actual number is flat to only slightly declining. However, the fact is that the SCYSA, who has a mission to promote and develop youth soccer, has not added registered players at any significant rate in the last few years. Instead, it has increased fees to increase revenue while increasing expenses at an even faster rate.
If I were at the President's meeting, here are the questions I would ask of the SCYSA:
- What are you doing about containing your spending, particularly discretionary spending such as administrative costs and director's expenses?
- What are you doing about the skyrocketing insurance payments? What agencies/companies have you requested competing bids from and what are the spreads of those bids?
- What is your plan to increase the number of registered players?
- There appears to be the possibility that in the future one or more clubs will take 4000+ recreation players out of the SCYSA; what are your contingency plans for this besides raising rates on all remaining clubs and players?
