Financial Sustainability and Investments in Cricket at SACC

The Club and Section at SACC aim to maintain and renew assets worth ~125K, focusing on generating cash flow, funding operations, and building capital reserves. Revenues have rebounded post-Covid, with operating costs back to pre-pandemic levels. EBITDA of 8K and a profit of 6K were achieved, supporting a 25K pavilion investment. Additional investments are planned, with ~2K in hand for the new season.

• SACC
• Cricket
• Financial Sustainability
• Investments
• Revenue

rdav Follow

Uploaded on Sep 13, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

Presentation Transcript

1. SACC AGM Approved Treasurer s Report, CY 2022 Rich Parkin 15thJanuary 2023

2. Executive Summary The Treasurer s function is to ensure the financial sustainability of high quality cricket at SAC, thereby enriching the identity of the overall Club Most notably, the Club (and Section) maintain and renew an ~ 125K asset base (groundcare equipment, pavilion, pitch, sight screens, scoreboard, other equipment and kit) This leads to 3 objectives Short term: Fund ongoing operations; at least 1000 cash on hand at season start Medium term: Generate sufficient cash flow (EBITDA) to fund anticipated replacement of assets. This averages around 3K a year (excluding groundcare equipment) Long term: Capital reserves should equal the accumulated depreciation of our asset base. In practice this is going to take some time to achieve given the lack of investment up to 2015 The Section generated ~ 8K in EBITDA (free cash flow) last year, and funded a 25K pavilion renovation, while the Club invested in new groundcare equipment. Club and Section have therefore invested over 80K in facilities and equipment since 2015. We plan to invest an additional 7K this year New gutters for pavilion Renovated sight screen New celing and lights for the pavilion interior 2

3. The Section again turned in an excellent revenue performance, at 12.5K Comments SACC revenue, 2006-22, at 2022 prices ( K) Seasonal dues Total match fees Junior cricket fees 0ther Club subsidy Section began collecting dues directly in 2016 on request of Club. These has previousy been around 1.5K Revenue has almost regained pre-Covid level, with 20% increase in revenue versus 2021 Match dues have been at same level per match since 2016. This therefore represents a ~15% reduction in real terms. We should potentially look to increase to 12 once this real reduction exceeds 20%, so as to return to real amount of 2016 16.7 12.9 12.5 11.4 10.6 10.2 9.6 7.7 5.4 5.6 5.7 6.1 5.05.1 3.5 3.53.1 3.2 3

4. Operating costs have returned to pre-Covid levels as we again serve teas, and replenished the ball stock SACC operating costs, 2006-22, at 2022 prices ( K) 5.3 4.8 4.6 4.7 4.6 4.5 4.1 4.2 4.0 3.8 3.7 3.5 3.2 3.0 2.7 2.4 2.2 1.8 Club kit Balls Licenses Tea/umpire Printing Other #REF! #REF! 4

5. This led to 8K EBITDA (free cash flow) and 6K profit, financing a 25K pavilion investment Financial Summary, 2020, 2021 and 2022, actual s 2020 2021 2022 Revenues 5.2 10.9 12.5 Operating costs 2.1 2.4 4.6 EBITDA 3.1 8.5 7.9 Capex 0.2 0.6 26.0 Change in cash 2.9 7.9 -18.1 Depreciation 2.1 2.0 2.0 Profit/Loss 1 6.5 5.9 5

6. After 25K in pavilion renovation, we have ~2K on hand at year-end to fund the start of the new season End of Year Cash , in 2022 s 25000 20000 15000 10000 5000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 6

7. We are budgeting for 8K profit, while funding 7K further pavilion renovation 2022 Budget 2023 Total revenue 12500 14250 Seasonal dues 4750 4500 Match fees 4500 4500 Junior cricket 2350 2250 Player kit sales 0 0 Other 900 3000 (contribution from Club for gutter repair) Total costs -4600 -3800 Teas -1150 -1000 Balls -1250 -1200 Umpires Included in teas -100 Fixture cards 0 0 Licenses -50 -500 Other junior cricket 0 -500 Other (includes maintenance) -2150 -500 EBITDA 7900 10450 Capex - 26000 -7000 ( 3K exterior, 4K interior) Change in cash -18100 3450 Depreciation -2000 -2000 Profit/Loss 5900 8450 7

8. This budget was approved by the AGM Approval of the budget shown here, including capital expenditure on the pavilion Renovation spend ~ 3K on pavilion exterior for new gutters and flashing at base at rear of pavilion. This has been approved by the Club Management Commitee Sightscreen renovation ~ 750 for materials (8 primary boards from front of pavilion, plus paint) Begin pavilion interior renovation, based on funds available. First priority is the installation of a new ceiling with spotlights, preferably in April (if dues are paid promptly) The Section budgeted 500 to support low income Members, to play cricket, with decisions to be taken by the Committee Dues Seasonal Memberships ( 475, or 440 if paid before 30/4) For players playing less than10 games, a half-season Membership is available ( 240, or 220 if paid before 30/4/2023) No player can play without paying match fees of 10 8