The Modern Sports Club Business Model
Making traditional revenue streams work harder for your Club
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Community sports Club leaders come from all walks of life – from passionate parents to former players to community-minded professionals – but the one thing many of us share is an innate dread of our Club's financial management.
No matter how financially savvy, long-serving or business-minded you are, it's often the financial aspects of running your Club that lead to late-night number-crunching and sleepless nights.
Whether it's the pressure of rising costs that may need to be passed on to members, the challenge of generating new revenue streams with limited time and expertise, or the constant juggle of maintaining financial sustainability while keeping sport accessible – this is the stark reality of community sports Club financial management.
For newly minted Club administrators, the pressure is even greater – particularly at those pivotal moments when you realise just how much you didn't know you didn't know!
When faced with writing this article, I initially thought it would be straightforward. After all, the commercialisation of sport is my core expertise, my bread-and-butter! Over 25 years professionally immersed in the business of sport – from sponsorship valuation to fundraising to strategy – there's hardly an aspect of sports revenue generation I haven't encountered.
But just like my first funding challenge as a volunteer sports leader, when I sat down to write this piece, I was completely stumped by where to start.
You see, generating revenue beyond member fees is one of the most complex challenges in community sport. Everyone has an opinion on what Clubs should do, but few understand the real trade-offs involved. Some revenue streams promise big returns but demand enormous volunteer hours and aren't guaranteed to succeed. Others might deliver smaller amounts but can be easily repeated throughout the season with minimal effort. The challenge isn't just finding money – it's choosing the right approach for your Club's capacity and circumstances.
While I was initially struggled with how to package such a complex topic into one article, I reminded myself, and I remind you, that this is just the beginning. This piece is just the start of a series of practical content and tools to help time-poor Club leaders build stronger, more sustainable Clubs. We'll start with the basics today, then dive deeper into specific strategies and solutions tailored to your Club's unique needs soon. Strap in!
Traditional Revenue Streams: A Fresh Perspective
Let's start with the foundation of most Clubs' financial model - membership fees. While these typically form the backbone of Club revenue, their management often lacks the strategic thinking it deserves. Too often, fees are calculated on the back of a napkin, considering only the major obvious costs while missing those hidden expenses that come with modern Club operations. Digital platform subscriptions, payment processing fees and new compliance requirements are frequently overlooked, leading to unexpected deficits at season's end.
The way we set and communicate fees needs to evolve. Members are far more likely to accept fee increases when they understand exactly why costs have risen - whether it's due to insurance premiums jumping across the board, field hire costs increasing by 10%, or governing body membership hikes. Similarly, when fees decrease thanks to new sponsorship or successful grants, sharing this good news builds trust and encourages member support of those sponsors.
We're also seeing more Clubs move away from inflexible, one-size-fits-all fee structures. Some members might miss half their games due to work commitments but still pay full fees - leading them to question returning next season. Tiered membership options and flexible payment plans are emerging as ways to keep sport accessible while maintaining financial stability.
Sponsorship: “We’ll just get a sponsor!”
People love to tell you that sports sponsorship has transformed dramatically over the past decade. While that's true for professional sports and national organisations, the reality at community level remains remarkably unchanged. Yes, we have more digital assets to offer - social media reach, electronic newsletters, online presence - but the fundamentals haven't shifted. At its core, local sports sponsorship is still about relationships.
Here's what most people won't tell you: sponsorship is one of the most challenging and often controversial topics in community sport. Those who suggest it as the simple solution to funding challenges are usually the ones who've never tried to secure a local sports Club sponsor. The truth is successful sponsorship at grassroots level isn't about flashy proposals or sophisticated marketing metrics - it's about contacts. As the saying goes, it's not what you know, it's who you know.
The good news? Community sports Clubs have an incredible network right at their fingertips - their membership. Rather than tasking one exhausted committee member with chasing sponsorships, smart Clubs are engaging their entire membership base. They're explaining why sponsoring a community sports Club makes good business sense, especially for local businesses, and reminding members that successful sponsorships can directly reduce fees or fund those extra programs everyone wants.
To maximise your chances of sponsorship success, there are five essential tools every Club should develop and maintain. First, you need a business contact list that's regularly updated through scheduled member outreach – remember, your members are your best connection to local businesses. Second, maintain an asset register documenting everything you can offer sponsors, from digital platforms to physical spaces. This isn't just about having an inventory, it's about understanding the true value you can provide to potential partners.
Third, create a simple sponsorship proposal – just 2-3 pages that clearly communicate your Club's value proposition and why supporting your Club makes good business sense. Tip: If you have a graphic designer in your membership – ask them to pretty-up the document for you. But don’t worry about it if you don’t! Fourth, have a basic sponsorship agreement ready to go. This protects both parties and ensures everyone's clear about expectations and deliverables. And finally, maintain an up-to-date wish list. When that 'unicorn' sponsor appears (you know, the one who appears out of nowhere and wants to drop some cash in the Club account), you want to be ready with clear, compelling projects that will benefit both your members and their brand.
Of course, securing a sponsor is just the beginning. Every sponsorship comes with servicing requirements - from social media posts to end-of-season events at the sponsor's venue. Before signing any agreement, Clubs need to ensure they're not committing to servicing costs that outweigh the sponsorship value. The golden rule? Under promise and over deliver.
The trickiest sponsorship territory often involves 'value-in-kind' or contra arrangements. These non-cash sponsorships should only be considered in two scenarios: when they genuinely relieve budgeted expenses, or when they significantly enhance Club culture and community. Even then, be wary of associated costs - they shouldn't exceed 15% of what you originally budgeted.
One final note on financial contributions – be clear on the difference between donations and sponsorship. A donation comes with no strings attached and requires no servicing. The moment someone wants something in return for their contribution, even just social media mentions, you're in sponsorship territory and need to treat it accordingly.
Fundraising: Where Tradition Meets Technology
Fundraising in community sport serves multiple purposes beyond just revenue generation. That Bunnings sausage sizzle isn't just about making money - it's building Club culture, creating member bonds and raising local community awareness. A volunteer in Club colours chatting to customers about junior registration while serving up a snag can be worth as much as the day's takings.
So, we don't want to completely abandon these traditional fundraising methods. But we need to acknowledge a harsh reality: many of these initiatives demand significant volunteer time and effort. With recent research showing declining volunteer numbers across community sport, we need smarter approaches that deliver results without burning out our precious volunteer base.
This is where fundraising has seen perhaps the greatest evolution of all Club revenue streams, thanks to technology. Digital platforms have revolutionised everything from simple raffles to major campaigns. Online systems now handle compliance, payments and reporting automatically, while expanding reach far beyond your local community. What once required weeks of volunteer coordination can now be set up in hours and run largely hands-free.
Perhaps the most significant development in sports fundraising is the Australian Sports Foundation (ASF). This organisation has fundamentally changed the game for community Clubs by making tax-deductible donations accessible to almost every sporting organisation in Australia. Whether you're raising funds for equipment, facility upgrades or program development, the ASF provides a platform that turns every contributor into a tax-deductible donor – something most Clubs can't offer directly.
The ASF's recent partnership with revolutioniseSPORT takes this a step further, allowing Clubs who use revSPORT to seamlessly integrate donation opportunities into their registration process. This integration is a perfect example of 'set and forget' revenue generation – once established, it continues working for your Club with minimal ongoing effort.
Grants: Breaking Through the Application Barrier
There's a certain stigma around grant funding in community sport and if you've ever stared down a 30-page application form, you'll understand why. Grant writing can be daunting, time-consuming and success rates often seem dishearteningly low. But here's the reality – grant success is a numbers game. The more applications you submit, the better your chances of 'getting lucky'.
While I've got plenty more guidance to share about grants in future articles, there are three fundamental approaches that can transform your Club's grant success rate. First, develop a simple grant tracker. There's no single reliable source for grant opportunities (at least none that I'm aware of), so task someone on your committee with monitoring four key sectors: government (from local to federal), corporate (especially businesses operating in your area), your sport's governing bodies and a big one – your state’s registered Clubs’ sector. Club NSW’s ClubGrants is a prime example of a great opportunity for NSW based community sports Clubs, providing regular funding opportunities for local community organisations.
Second, create what I call a Club Overview document. Think of it as your grant application starting point - a single document containing everything from your ABN to your member demographics, including those crucial statistics about indigenous participation and culturally diverse membership, as well as a summary of your core programs and activities. Having this information readily available not only saves time but ensures consistency across applications. (I’ve included a simple Club Overview template at the end of this article to help get you started).
Third - and this might (or might not) surprise you - learn to use AI! Artificial intelligence has become a game-changer for grant writing. Upload your Club Overview and grant guidelines to an AI platform (like ChatGPT or Claude) and the AI will help determine eligibility, identify missing information, suggest the best programs to highlight and even draft responses to those tricky application questions. While AI won't write the perfect application, it can transform a daunting task into a manageable one.
Facility Usage: Unlocking Hidden Revenue Potential
For Clubs fortunate enough to own, control or have rights to utilise their facilities for commercial purposes, creative facility management can deliver significant revenue streams. Digital booking systems have revolutionised how we manage sports venues - my local tennis Club is a perfect example. Their automated court booking system means casual players like members of my family can access courts whenever they're free. We pay $250 annually (as a family) for the privilege, despite only playing maybe once a fortnight. It's a win-win: we get convenient court access and the Club generates steady revenue from otherwise idle facilities.
Smart Clubs are thinking beyond traditional usage patterns. Some partner with schools for holiday programs, while others host community groups in Clubrooms during off-peak hours. At my local hockey centre, they've turned an under-utilized training pitch into a reliable revenue stream by renting it to a futsal Club and local football teams when wet weather closes grass fields.
Even Clubs using council facilities can find opportunities to generate income. Many have rights to operate canteens, sell signage space, or manage events. The key is understanding exactly what's permitted under your facility agreement and developing efficient systems to manage these opportunities. You'd be surprised how many Clubs leave money on the table simply because they haven't thoroughly reviewed what their facility agreement allows.
Building a Sustainable Future
The truth is there's no silver bullet for Club sustainability. The real transformation isn't in discovering magical new revenue streams - they simply don't exist. Instead, it's about approaching traditional funding sources with fresh eyes, an open mind and modern tools. The successful Clubs in 2025 and beyond will be those that build diverse revenue portfolios capable of weathering change, rather than relying too heavily on any single source.
Today's thriving Clubs understand that financial sustainability isn't just about raising more money - it's about being smarter with the opportunities they already have. They're investing in systems that reduce volunteer burden, measuring 'return on effort' rather than just financial return and building models that can survive committee turnover and volunteer fatigue.
The future of funding grassroots sports Clubs isn't in revolutionary new funding sources. It's in evolutionary approaches to familiar ones. And that's something every Club can work towards, one small change at a time.
Remember, this article is just the beginning. Over the coming months, I'll be sharing detailed guides, practical templates and real-world examples for each revenue stream we've discussed. From membership fee calculators to sponsorship proposal templates, grant tracking tools to facility usage agreements - we'll break down each element into manageable steps that busy volunteer administrators can actually implement.
In the meantime, start by downloading the Club Overview template I’ve included below. Set aside 30 minutes to fill in what you can – it doesn’t need to be perfect, but having this information readily available will make every future funding conversation easier.
And finally, take stock of your current revenue streams. Which ones are delivering the best return for your volunteer effort? Where could modern tools or approaches make things more efficient? Most importantly, what small change could you implement this week to start building a more sustainable financial future for your Club?
