La Trobe University Football Club Budget - Case Study Example

Executive summary La Trobe University Football Club, LTUFC, is based in Bundoora, Kingsbury Drive. The club has a total membership of 130 members 100 of whom are men while the remaining 30 are women. The major facilities of the LTUFC club are two natural turf fields which have lights. LTUFC club holds winter competitions for both seniors and juniors which are played on the Saturdays and Sundays (weekends). The main source of revenue for the club is membership levies and the fees charged during competitive matches which are mostly held in Winter. Registration is a one-off fee of $70 whereas member’s subscription is on annual basis for $30 for children and $50 for adults. The club has subsidized the levies it charges to its members and even non-members within Victoria in line with its mission of increasing access and participation in sports and recreation opportunities. Organization background The name of the organization is La Trobe University Football Club, LTUFC. It is located in the north-western suburbs of Melbourne. The population growth in this area is moderate and so is its sports and recreation. The ethos of the club is never give up. It has lived up to this spirit and has never given up in ensuring increased participation in sport and recreation among Victorians. The membership of the club has grown to 130 persons who are inclusive of 30 women. The club prides in two natural turf fields which are well lit. The club takes part in two major leagues for men’s team who play in the state league competition in north-west division and women’s team who play in women’s premier league. All the competitions are held in winter and played on the weekends. The club has a dedicated team of men and women who have purposed to train the mass in Victoria in the various sport and recreation activities. These staffs are full-time employees which has ensured that the grounds are open every day to serve the Victorian communities. Benefits The grant from the community facility funding program will help the club to replace an old soccer club which is currently in a bad state. The club is eligible to apply for the grant since it falls within the jurisdiction covered by Sport and Recreation Victoria (SRV). The club is based in Victoria and pursues the interest of the communities within Victoria by making access to sport and recreation possible. In addition, the application of the grant applied is a major facility upgrade and the applied grant falls within the limit set for such project. Moreover, La Trobe University Football Club is a preferred location where communities meet, interact and participate in sport and recreation activities. It is worth to fund the grant application since it serves the interests of the communities within Victoria. The club achieves this by encouraging participation in sport and recreation and especially to female and junior members of the society. The grant will benefit all residents in Victoria since its membership is open to all irrespective of age and gender. However, the club is specifically targeting women and junior since their enrolment is still low hence the need to encourage them through subsidized registration and subscription fees. The grant will also be beneficial to the large population in Victoria since it will bring resources close home which will be an important tool in tapping the talents in Victoria. Budget The club’s financial year covers from 1st January to 31st December. The following is the budget for the coming financial year. La Trobe University Football Club Budget For Year 2015 Revenue Club members levy 100,000 Sale of tickets 275,000 Fee for letting the field 150,000 Donations 300,000 Bank savings 20,000 Local government funds 380,000 Fundraisers and events 140,000 Interest income 60,000 Dividend income 100,000 Miscellaneous 70,000 Total Revenue 1,325,000 Expenditures Staff salary and benefits 300,000 Insurance 200,000 Purchase of equipment 350,000 Supplies 250,000 Telecommunications expense 50,000 Travel & meetings 55,000 Marketing & advertising expense 100,000 Cost of replacing soccer grounds 670,000 Total Expenses 1,975,000 Surplus (Deficit) (650,000) The deficit shown in the budget of $650,000 has been occasioned by the planned expenditure to replace the old soccer ground. The club has been running its affairs profitably and as you can analyzed from the budget, the club would have a surplus of $20,000 if replacement of the soccer ground was not factored in. however, the aim of the club is to increase access and participation in sports and recreation opportunities which is put under threat by the current condition of the soccer field. As it has been highlighted earlier, the club holds winter competition for both juniors and seniors. It is anticipated that before the season clicks, the soccer field will have been upgraded so as to provide seamless service and avoid disappointing the community and all the participants. Investment La Trobe University Football Club has two fields; however, all the fields have to be used because of the different teams that have concurrent match on their ground. It is unfortunate that one of the soccer ground is old and in unusable shape and need to be replaced. It is for this reason that the club is applying for a grant from your organization to help it meet its objectives and purpose in the community. The cost of replacing the soccer ground has been estimated at $670,000 by a builder which is unlikely to change. According to Department of Transport, Planning and Local Infrastructure (2014), LTUFC qualifies for a loan in the kind you offer under the major facilities category (Department of Transport, Planning and Local Infrastructure). The total loan amount that LTUFC is applying from your organization is $650,000 which is the maximum loan you offer for the kind of facilities described above. The loan amount will be exclusively applied for the upgrade of the soccer ground. You will find in this document the proposed budget for the coming year 2015 which shows that the club anticipates a deficit of $650,000. The designing of the soccer ground will be done in a universally acceptable way and in a manner that is environmentally sustainable. This will help to achieve the purpose of community facility funding program by the Sport and Recreation Victoria (SRV) which envisages a sport and recreation facilities that are of high quality, innovative, environmentally sustainable and universally designed to increase accessibility to communities within Victoria. Evaluation The football club has been performing fairly since its inception. All its income which are mainly from donations, subscriptions and grants have been applied for the right purpose and great success have been realized. The increase of club membership is a strong indication that LTUFC is achieving its purpose of never giving up in increasing participation in sport and recreation. The lower registration and subscription fees charged by the club have ensured increase participation by women and juniors in sport and recreation. LTUFC club will manage the relationship with the grantor by ensuring that the grant extended to the club is used for the right purposes which are in line with the purpose of Sport and Recreation Victoria (SRV). LTUFC club would like to maintain SRV as a calendar grantor and for that matter it will remain accountable for all grant it receives. It is expected that good justification of previous years expenditures will guarantee the club another grant from the funding agency as and when need arises. This can easily be evaluated by determining the extent to which LTUFC club has increased access and opportunities to Victorians in sport and recreation. Conclusion LTUFC club, like any other club has expenditures and revenues attributed to its operational activities. The budget of the club has a deficit since its anticipated expenditures are more than the anticipated revenue. The main sources of revenue for the club are members levies and donations. However, the club is limited to its revenue generations since its main purpose is to increase participation in sport and recreation among the communities within Victoria. Due to this reason the club cannot afford to charge high fees to its members hence the need to source for more funds through other avenues like grant in order to cover its expenditures. The main expenditure that has resulted to the huge deficit is replacement of the old soccer ground. The grant of $650,000 will help to finance the club budget. LTUFC club qualifies for a grant from Sport and Recreation Victoria since it is located within the jurisdiction of the grantor. In addition, the club is specifically applying for the grant in order to replace the old soccer ground. This is a major facility and is of the kind sponsored through the community facility funding program. The total grant applied by the club is $650,000 and since it is above $500,000 the club can qualify for the total amount applied for. it is anticipated that the whole deficit will be financed to allow the replacement of the old soccer ground to take place before winter and summer competition so that the normal program of the competition is not disrupted. Work cited Department of Transport, Planning and Local Infrastructure, DTPLI. Available at: . 2014. [Online]. Read More