Townsville Basketball Inc. FEE’S 2014

There are some concerns regarding the fee structure set for 2014, especially around the movement away from an individual weekly payment, to a team weekly payment.

Although I acknowledge that this is a substantial change in the manner in which payments have been collected, it isn’t one that has been made in isolation and without thought or consideration.

Issues that were considered by the Management of Townsville Basketball Inc. are as follows;

• Rising cost of running an organisation (20% increases in utilities such as electricity, rising cost of insurance, increase in cost of supplies).
• Maintenance needs of the Association; the facility is in need of significant repairs and maintenance, i.e. plumbing is deteriorating and will require addressing, along with cleaning, ageing refrigeration units on cold-room’s etc.)
• Cost to conduct game days, i.e. Referee fees, staff to operate the door, supervisors, canteen staff etc.)
• No change in fee structure for the past 2 years (that is no CPI increases applied).
• Number of teams forfeiting games that still required payment of referee fees and other cost with no means of recovery by the Association.
• Cost on individuals and families to participate (especially those that compete in multi-teams).
• Efficient and effective ways to manage Association assets and operations.
• Alternative ways to generate income (sponsorships, etc.)
• Difficulties experienced by clubs, especially by unreliable players creating forfeits and limited volunteers to manage the day to day operations.

Due to these many demands the Management Committee had to work its way through developing a budget for the 2014 financial year that ensured the end result was one of financial health for the Association.

This included looking at funding opportunities that would offset some of the cost from operations, resulting in the successful funding and generous sponsorship for installation of the fans on all 5 indoor courts. Further submissions have been submitted as follows:

1. Funding applied for to upgrade Court 1 and restore it to competition standard (the floor is in major need of attention and if the funding is not successful could result in the Association having to find over $100,000.)
2. Funding applied for solar panels to be installed that would alleviate the ever rising cost of electricity to the facility. Our current electricity costs are in the vicinity of $70K per year.
3. Paying off existing debt to Basketball Australia (from the Fire) and the loan for Court 5 extensions.

After developing the budget we had to look at ways to implement income streams that would successfully cover the Associations overheads.

One key change will be the employment of a ‘Competitions Manager’ who will be responsible for game schedules, competition days, results, statistics and referee scheduling etc.

This was done to hopefully alleviate the number of complaints received in regards to forfeits, game scheduling etc.

This position will replace the existing person at the Entrance, Court Stewarts, and Referee’s Supervisor, a major drain on Club Volunteers and expense to the Association.

The Management Committee also received many complaints from parents who resisted having to pay to come in and watch their children play, plus a decline in the number of people watching games locally. Consultation with members suggested a resistance to having to pay to watch local games as a major negative and stated they would come and watch senior games if they didn’t have to pay.

It was obvious from the onset that to successfully manage the many issues confronting the Association that the likelihood would be that we would have to charge approximately $15 per game for a senior player and $13 for a junior player.

This meant that a family coming to watch their child play a game of basketball could cost them over $20 per week, for one game only.

Clubs were also finding it difficult to field teams on a weekly basis due to many players not turning up, which put significant strain on their already limited number of volunteers.

After consulting many parents they all suggested a one off payment at the beginning of the year (examples were given of most other sports in Townsville) which would cover their children for the entire season.

Therefore consideration was given and research conducted that provided us an overall average of 7.6 players attending weekly games. This meant that if we were to increase the weekly fee as expected to $15 per adult and $13 per child, an average game would costs Seniors approximately $114 and Juniors $98.80. We realised that many athletes play more than one game per week and at present a second game is charged for less. We decided to adjust team game fee’s to the following; seniors $95 and juniors $85 which is more consistent with a normal CPI adjustment that occurs yearly.

Again, this was based on the averages of 7.6 from the 2013 season of players competing in a team.

We acknowledge that if some clubs decide to implement yearly fee’s (as most parents had indicated they preferred), based upon the schedule which we recently released for the 2014 season, Seniors will have a total of 32 games (pre-season included without finals) and therefore would pay (based upon an average of 7.6 players per team) a total fee for the year of $400 excluding Registration, whilst Juniors (pre-season included without finals) would pay $290 approximately.

Registration was increased to cover rises in costs to insurance and other operational overheads.

If you were to pay the existing fees at the front door based on 2013 Senior prices, you would pay, if you played all games, a total of $368 for the year in game fee’s, therefore the increase to fees overall is actually only 8%.

 

For parents with children playing, we felt that by increasing the fees on an average of just 8%, but removing the need to pay to spectate, that this would balance out the negatives. Further, we are hoping that parents will now be more willing to come along and watch, and perhaps even volunteer as they won’t be required to pay to the spectator fee.

This hopefully will also transition into the Senior Program with more spectators willing to come along to games as it doesn’t cost them to enter.

We acknowledge that if clubs don’t go with a yearly payment scheme, which is their choice, and if there are weeks where they can’t field teams with more than 5 players, the clubs/teams will be hit hard in the pocket.

By advertising this information now, 3 months prior to the season starting, we are hoping that clubs/teams will be better organised and prepared to ensure that sufficient numbers turn up weekly to games. At the moment this is left to a small group of volunteers in clubs whose responsibility is to source players to cover these games. This is unfair on the clubs and we feel that these new strategies will take some pressure off of the clubs and put it back onto the teams.

If the teams and the clubs work effectively they can bring the cost down more on individuals, by ensuring that teams nominate with around 9 players, paying $337 each for the year, at an average of just $10.50 a week for Seniors.

If however the clubs decide on weekly to your game fee, on an average junior team of 7 players, it will cost a parent just $12.14, or if you have 8, it will only cost $10.60, but no spectator will have to pay.

For seniors it will be based on 7 players $13.60 and on 8 players $11.90.

We do not believe these are unreasonable fees. If however, we were to go back to a door fee for individual players, the cost could be substantially more, as we must budget to cover our overheads. As stated before those cost could be as high as $15 for a senior and $13 for junior, or we reduce them down and continue to charge spectators up to $3 to enter.

The Management Committee has spent considerable time looking and examining our options. I feel that their decision and the process that they have agreed upon clearly demonstrates their desire to maintain effective and efficient operations and sound best practices.

Regards

 

Gil Napper

President

Townsville Basketball Inc.