Budgeting For Sports Events

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Budgeting for
Sports Events
hile wanting to conduct
W an athletic event in
support of an amateur
organization is admir-
able, getting a grip on the financial
side must be the first priority.
Whether you represent a sports commis-

sion, a CVB or a local youth team, put-
ting yourself or your organization in
financial debt is no way to keep your job
or keep a good relationship with your
fellow team parents. Many of our read-
ers are new to the sports event industry
and are likely members of a two or
three-person staff, so developing an
event budget may well be the task of a
single person.
So where do you start if this is your By Bill Hanson
first budget? Experienced event planners
will tell you that you’ve got to have a ty. For small events, these businesses
complete budget anyway, so it shouldn’t will likely be parent-owned and generat-
matter whether you start with income or ed through goodwill. The obvious target
expenses. But because the list of income market for these sponsorships is the
opportunities is far shorter than that of immediate membership of your organiza-
expenses we’ll start with income, and tion. A sports commission must think
we’ll divide the income categories bigger and find local businesses that will
according to being event-generated and benefit from an association with your
pre-event-generated. The objective is to event. In addition to title, presenting and
provide you with a list of income cate- general event sponsorships, there are
gories, and inspire you to think of others items such as ticket-backs and lineup
pertinent to your situation. sheets that offer sponsor exposure.
The most common line items for Donations are another membership
income generated prior to an event are target no matter the size of the organiza-
sponsorships, donations and entry fees. tion. A sports commission goes straight
Whatever your organization or the to its own Board of Directors for dona-
size of your event, if there is public tions while a small amateur group again
exposure, some businesses are willing to goes to its own parents or members.
give you money in exchange for visibili- Generating advance income through
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PREP0307_FRONT4 2/22/07 9:33 AM Page 9
team or individual entry fees is not only increasing entry fees or ticket sales, yet
financially advantageous, but is also the most planners find that preferable to
primary factor in estimating many of reducing expenses.
your expense items. This would be Identifying your income opportuni-
especially true if entries were capped ties is one thing, but putting the proper
and you could generate a demand for budget number to them is quite anoth-
entry into your event. First-time budget- er. Estimating line item amounts cer-
makers should, however, be conserva-
tive when estimating their number of
entries. We’ve all heard the claims of “I
know 50 teams that will participate, no First-time
problem.” These become the famous
last words of a wannabe event planner.
budgetmakers should
Pre-event income can also be gener- be conservative when
ated through advance ticket sales, sig-
nage, souvenir program advertising, estimating their
public address announcements, vendor
fees, parking passes and hospitality number of entries.
passes.
There are a number of budget line
items that generate income during the
conduct of your event; some contingent tainly comes easier with experience,
upon your competition venue and its but to the relative novice, conservative
own policies, and others directly thinking should prevail. Don’t try to do
dependent upon the capabilities of your it all yourself. Researching similar
local organizing committee. The pri- events is the most obvious and the
mary obstacle to any event is the inabil- quickest way. If your organization is a
ity of the event organizer to recruit member of the National Association of
capable workers or to delegate respon- Sports Commissions, you have many
sibility to these workers. Capable peers willing to assist you.
workers translate to on-site income The best way to approach the
opportunities in gate ticket sales, food expense items in your budget is to
& beverage concessions, souvenir mer- “expect the unexpected,” and we’ll
chandise sales, souvenir program sales cover this in the fall issue.
and parking fees. These line items
must also be discussed with the man-
agement of your potential competition Bill Hanson is a founder of
the San Antonio Sports
venue because, in most cases, there are Foundation.
policies in place governing what you He has event opera-
can and cannot do during your event. If tions experience from the
AAU Junior Olympic
you don’t ask up front, you could find Games, the U.S. Olympic
out the hard way, in the small print Festival and the State
after signing the lease contract. Games of Texas. In addi-
tion, Bill has organized
Your income likely will be either par- individual competitions for
ticipant-driven or spectator-driven, and the 1984 and 1996 Olympic Games, the Pan
you should be conservative with either American Games, the Goodwill Games and
numerous NGB and local youth competitions.
estimate. The easiest way to balance or Bill is the Chair-Elect of the National
enhance a budget is by arbitrarily Association of Sports Commissions.
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Budgeting For Sports Events

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Whether you represent a sports commis-

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