Club sports offer exposure — but at a steep price

Part 3 story
http://res.dallasnews.com/interactives/club-sports/part3/

Big-money business?
Some high school coaches contend that clubs are trying to make big money by selling athletes on the idea that they must play select to get recruited. Here’s what SportsDay found for three area soccer clubs for the fiscal year ending June 2013 using the IRS Form 990, an annual information return that most organizations claiming federal tax-exempt status must file and is available to the public online.

Club Soccer, Inc.: Doing business as the Dallas Texans Soccer Club (the Texans’ assets were transferred to Club Soccer, Inc. in 2005), it reported that it has 80 teams serving approximately 1,300 youth players and that it received $4 million in membership dues and had total revenue of $5.3 million. Club Soccer, Inc., had total expenses of just over $5 million, but its net income of $269,409 was more than triple what it made the previous year, and it had net assets of $804,695.

Andromeda FC: The club received $1.1 million in club dues and had total revenue of $1.2 million. Its net income of $111,173 was more than 24 times as much as it made the previous year, and its net assets rose from $24,287 to $135,460.

Solar Soccer Club: It received $1.2 million in membership dues and assessments and had total revenue of $1.3 million. But its net income was $7,798, which was down from $72,834 the year before. Solar’s net assets were minus-$107,298.

I have no issue with these clubs making money when they have to actually COMPETE against each other. I'll leave it at that.

This has been an interesting series about the cost of sport and the profits that these clubs make. The issue of big Money seems a little off to me. $5.3 million in revenues and a <300K profit. (less than 5%) What are the increases in net assets of churches, boys scouts, local governments. The article seems as though profit motive is the end of the world. I thought this was America. Considering the time spent by these organizations with the desire to improve the sport in the area some growth is good business sense. Do the Dallas news writers believe that fields, lights, equipment, coaches and uniforms are free? It seems that the writers seem to have visited this board often as the topic of sports costs too much and these evil DOCs should be doing it for free for the kids. At least the writer of the article realizes the benefits of sponsorship and how having a billion dollar sponsor helps to find talent like Julius Randle. I think North Texas Soccer, needs a sugar daddy as well.

I'm not going to take the time to give a full accounting lesson on non-profits but there are a couple of points to make regarding the author's presentation of the data.

It's a little misleading for net income and the period-to-period change in net income to have been presented in that manner.  A non-profit organization doesn't really have net income or loss.  They simply have an increase or decrease in fund balance.

Better measures of how much the non-profit organizations make in profit are to analyze the administration's compensation of the people who run the organization and the change in assets from period to period.

+1 You can have 'non-profits' where the director/owner/founder is making $300k a year... the organization isn't making a profit per se...but the director/owner/founder could be bringing home some serious bucks. So please people don't think all non profits are all about the greater good and people who volunteer their time.

geno105 wrote:I'm not going to take the time to give a full accounting lesson on non-profits but there are a couple of points to make regarding the author's presentation of the data.

It's a little misleading for net income and the period-to-period change in net income to have been presented in that manner.  A non-profit organization doesn't really have net income or loss.  They simply have an increase or decrease in fund balance.

Better measures of how much the non-profit organizations make in profit are to analyze the administration's compensation of the people who run the organization and the change in assets from period to period.

An accounting discussion on the girls soccer forum?!

Non-profits haven't utilized 'fund' balances in 20 years, but I agree that the change in net assets (net income) isn't that important.

You are right about control party compensation being useful. Unfortunately, these organizations are not required to present control party compensation or total payroll in their financial statements. (That includes your Mega-Church Pastor too   )

The term 'non-profit' can be misleading to people. I prefer the term 'tax-exempt'.

They offer a product, and it's purely based on value-pricing. Or in other words, "what the market will bear". It is up to the consumer as to whether or not your requirements are met for the cost. A.k.a. Return on investment. No two customers have exactly the same requirements.

Some see select soccer as a way to get exposure for college scholarships
Some see select soccer as a way to brag on their kids to their adult friends
Some see select soccer as a way to prepare for HS ball
Some see select soccer as a way to encourage fitness in their kids
Some see select soccer as a way to channel their kids energy into something positive, rather than getting in trouble.
Some see select soccer as a family activity and entertainment.
Some see select soccer as a social activity.
And finally, some actually do it just because their kid loves the game.

boilerjoe_96 wrote:+1  You can have 'non-profits' where the director/owner/founder is making $300k a year... the organization isn't making a profit per se...but the director/owner/founder could be bringing home some serious bucks.  So please people don't think all non profits are all about the greater good and people who volunteer their time.

most non profits pay key employees quite well. otherwise they would not remain a viable entity very long. but they do have to compete against other non profits unlike the school system that sucks in tax dollars from home owners regardless of where their child attends school

So I was reading that article....and speaking on "Burnout".

Would burnout be less...if the kid played mulitple sports and not just focused on 1 sport?  Or is it becasue they are so heavily involved in organized sports all year long and no break from anything?

Most burnout occurs because as you increase in level, the training becomes more time consuming, much more serious, and begins to resemble a job. No fun anymore. However, I will say that the players that don't burn out for this reason generally are more prepared for the college program. Top programs require a 10-12 mile run at sunrise, team breakfast, then classes, weight training, team lunch, a couple more classes, then 4 hours of endless drills. This is followed by a team dinner, and finally an hour or two to get homework done with tutors before getting to bed so you are ready to get up at sunrise and do it all over again. Team meals are designed by a dietitian, not necessarily what you want to eat. Now...that regimen is absolutely no fun, and you really have to be committed. If the pressure of select soccer, the time commitment and lack of fun burns the kid out during youth soccer...it's not necessarily a bad thing, as they would absolutely HATE college soccer.

SocDad wrote:So I was reading that article....and speaking on "Burnout".

Would burnout be less...if the kid played mulitple sports and not just focused on 1 sport?  Or is it becasue they are so heavily involved in organized sports all year long and no break from anything?

burnout has many MANY causes. burnout is also used as an excuse sometimes. some kids burnout at math and english or piano lessons lol. in other words their parents push them too hard and/or ITS JUST NOT THEIR GIG. THE SPELLING BEE CHAMPION DIDNT BURN OUT BEFORE WINNING THE CHAMPIONSHIP BUT A WHOLE LOT OF WANNA B'S DID

10sDad wrote:Most burnout occurs because as you increase in level, the training becomes more time consuming, much more serious, and begins to resemble a job.  No fun anymore.    However, I will say that the players that don't burn out for this reason generally are more prepared for the college program.   Top programs require a 10-12 mile run at sunrise, team breakfast, then classes, weight training, team lunch, a couple more classes, then 4 hours of endless drills.  This is followed by a team dinner, and finally an hour or two to get homework done with tutors before getting to bed so you are ready to get up at sunrise and do it all over again.  Team meals are designed by a dietitian, not necessarily what you want to eat.  Now...that regimen is absolutely no fun, and you really have to be committed.  If the pressure of select soccer, the time commitment and lack of fun burns the kid out during youth soccer...it's not necessarily a bad thing, as they would absolutely HATE college soccer.

EXCELLENT!!

10sDad wrote:Most burnout occurs because as you increase in level, the training becomes more time consuming, much more serious, and begins to resemble a job.  No fun anymore.    However, I will say that the players that don't burn out for this reason generally are more prepared for the college program.   Top programs require a 10-12 mile run at sunrise, team breakfast, then classes, weight training, team lunch, a couple more classes, then 4 hours of endless drills.  This is followed by a team dinner, and finally an hour or two to get homework done with tutors before getting to bed so you are ready to get up at sunrise and do it all over again.  Team meals are designed by a dietitian, not necessarily what you want to eat.  Now...that regimen is absolutely no fun, and you really have to be committed.  If the pressure of select soccer, the time commitment and lack of fun burns the kid out during youth soccer...it's not necessarily a bad thing, as they would absolutely HATE college soccer.

Great summary for D1 programs.

If that is not the college experience you DD wants, or has to accept to pay for college, then it may make more sense to look at D3 programs that are less intense but still offer a chance to keep playing.

Really begs the question that everyone needs to address with their DD on reconciling the college experience they want with playing soccer in college.

10sDad wrote:Top programs require a 10-12 mile run at sunrise

Is this part accurate? That seems like a great way to make them slow and injury prone. Sorry to tangent your tangent.

Cobra_Kai wrote:

10sDad wrote:Top programs require a 10-12 mile run at sunrise

 Is this part accurate?  That seems like a great way to make them slow and injury prone.  Sorry to tangent your tangent.

it is probably accurate BUT I DONT SEE IT AS EITHER OR. as long as athletes are still getting plenty of sprinting drills. more is better. if it the coach buying himself time then its poor coaching

http://healthyliving.azcentral.com/mix-sprints-longer-runs-should-soccer-players-fitness-routine-8354.html
"A generation or two ago, soccer coaches put their players through long runs to train for the sport’s 90-minute matches that require field players to cover five miles or more as they run up and down the field. Today, long runs have fallen out of favor. Top national team players such as Abby Wambach of the United States train with the emphasis on sprints instead of longer runs -- a priority seen also at the high school, college and professional levels."

Cobra_Kai wrote:

geno105 wrote:I'm not going to take the time to give a full accounting lesson on non-profits but there are a couple of points to make regarding the author's presentation of the data.

It's a little misleading for net income and the period-to-period change in net income to have been presented in that manner.  A non-profit organization doesn't really have net income or loss.  They simply have an increase or decrease in fund balance.

Better measures of how much the non-profit organizations make in profit are to analyze the administration's compensation of the people who run the organization and the change in assets from period to period.

An accounting discussion on the girls soccer forum?!

Non-profits haven't utilized 'fund' balances in 20 years, but I agree that the change in net assets (net income) isn't that important.  

You are right about control party compensation being useful.  Unfortunately, these organizations are not required to present control party compensation or total payroll in their financial statements.  (That includes your Mega-Church Pastor too    )

The term 'non-profit' can be misleading to people.  I prefer the term 'tax-exempt'.

Oh, and don't forget related party transactions. You know, like how clubs that "own" their fields actually rent them from a separate organization, that is owned/controlled by those that control the club. Make sure to add that to the compensation numbers, along with consulting fees, etc.

Cobra_Kai wrote:

10sDad wrote:Top programs require a 10-12 mile run at sunrise

 Is this part accurate?  That seems like a great way to make them slow and injury prone.  Sorry to tangent your tangent.

10 years ago or so, that was the training regimen at Creighton for the men's team.