F THE INDUSTRY 2013
A 2012 USIndoor survey of facility
operators reported that sales are up and
profits are returning. If we take care of
business and watch margins, 2013-14
should be an improved season.
According to the survey, soccer is still the
leader in revenue percentage (19.4%) for
most operators. Most facilities consider
themselves multi-sport. Turf fields, as
well as courts, constitute much of the
programming and revenue for most
modern facilities.
Sports mix and space priorities will
continue to be challenging in 2013-14.
The correct mix of sports, events and
amenities for the highest margins is
more complicated than in the previous
single-sport days. The problem in
finding the highest margin sports with
the best profits is difficult because most
team sports have been trending down in
participation over the past couple of years.
In 2012, baseball participation was down
by 6% and flag football was down 8.7%.
SUMMER201
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Over the past year, participation in outdoor
soccer has decreased by 2.1% .
Participation in lacrosse, however,
increased by 29.1% in 2012 (USLacrosse)
and is the fastest growing team sport.
Most facilities welcome lacrosse teams,
but like all other sports, the revenue
stream is not just about increased
participation but about increased margins.
As participation in traditional sports
inevitably weakens, it is critical that
anything you schedule on your fields or
courts has profitable margins. Luckily, if
your facility is designed correctly, meaning
it is adaptable, there will always be room
for new sports and events.
Ping pong, for example, is making major
waves in some large markets. It has a low
equipment cost, targets a wide age range,
is fun and easy to play, and sells beer.
What a great possibility!
Historically, the industry has designed
sports programs around kids for profitable
reasons, but political changes in youth
coaching strategies have caused many
youth teams to abandon the industry
and have transformed many sports
facilities into primarily adult venues.
The fact that 50% of kids never play
team sports and 73% quit organized
team sports by age 13 (NAYS) leaves
only about 12.5% of 14- to 22-year-olds
for the indoor sports industry to
pull from.
Still, the state of the industry is
encouraging. Watch for sports and
activities with a higher margin and
embrace innovation.
Jim Cline is the Principal of The Goals
Group, an indoor sports consulting firm,
and a member of USIndoor's team of
professional consultants. Jim is also
the director of USIndoor Sport's Certified
Arena Operator (CAO) accreditation
course. Jim has operated, designed
and built indoor sports facilities for
many years.
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