This webinar, hosted by Club Capital’s Peter Widmayer (Sports Finance Manager) and Lisa Wolf (VP of Youth Sports), provided benchmarking data and guidance on expense allocation for youth soccer clubs and sports organizations.

Core Framework: The Five Expense Categories

Club Capital breaks down all club expenses into five major categories:

1. Personnel (40-45% of revenue)

• Administrators and coaches
• Payroll taxes and benefits
• Education and training costs

2. Player/Programs (25% of revenue)

• League registrations and tournament fees
• Referee costs
• Equipment and uniforms
• Video subscriptions

3. Facilities (12-15% of revenue)

• Field rental and maintenance
• Indoor facility costs (especially relevant for clubs in harsh weather climates)

4. Administrative (8-12% of revenue)

• Software and registration platforms
• Credit card processing fees
• Accounting and legal services

5. Marketing (typically minimal)

• Promotional activities and advertising

Target Surplus: 3-5% of revenue

Key Variations by Club Type

Small/Local Clubs

• Lower personnel costs (25-30%) due to volunteer support
• Higher player expense percentage (35%) as more fees go directly to programming
• Often rely on partnerships with schools/churches for facilities

For-Profit Clubs

• Similar personnel benchmarks (40-45%)
• Higher facility costs due to limited access to public/nonprofit partnerships
• Higher surplus targets (8%+) to provide investor returns

Large Competitive Clubs

• Higher personnel costs (60-70%) due to highly licensed coaches and metropolitan salaries
• Lower administrative costs as percentage due to economies of scale
• Must carefully manage cost-of-living increases across large staff

Critical Financial Management Principles

Revenue Strategy

• 3% Rule: At least 3% of revenue should come from sponsorships/donations
• Inflation Planning: Budget 3% annual increases for most expenses, 6% for player-related costs (leagues, referees, tournaments)
• Regular Fee Adjustments: Small, regular increases are better than large, infrequent jumps

Cash Management

• Maintain 6+ months of operating expenses in reserve
• For major projects or financing, banks require 3-4 years of consistent surplus history
• Target surplus should support both sustainability and growth initiatives

Transparency Best Practices

• Share financial breakdowns with families proactively
• “If you don’t provide the story, families will create their own”
• Explain fee increases by highlighting added value (new coaches, equipment, programs)
• Remember: nonprofit financial data is publicly available via 990 forms

Red Flags to Monitor

• Personnel costs >50% without clear justification (high-cost market, premium coaching)
• Administrative costs >15% may indicate operational inefficiencies
• Facility costs significantly above 15% unless explained by geography/weather needs
• Outliers >5 percentage points from benchmarks warrant investigation

Actionable Takeaways

1. Conduct Annual Financial Identity Review: Use the pie chart tool to assess your club’s expense allocation
2. Program-Level Analysis: Break down financials by individual programs (rec, competitive, elite) to understand true profitability
3. Strategic Communication: Develop clear messaging about where family fees go and why
4. Partnership Leverage: Regularly reassess sponsorship values as your club grows
5. Proactive Planning: Address expense trends before they become crisis-level fee increases

Bottom Line

Understanding your club’s financial identity through expense benchmarking enables better decision-making, improved family communication, and sustainable growth. The goal isn’t to match benchmarks exactly, but to understand your unique circumstances and communicate them effectively to stakeholders.

Next Month’s Topic: Team Fee Accounts – Managing individual team finances and bank accounts within club structures. Register for July 24, 2025 here.