Increased Profits To Increase Capacity At Gallagher Stadium
Tue 4th Nov 2014 | Money & Finance
The owners of Maidstone United are putting increased profits into increasing the capacity of the Gallagher Stadium.
The club have announced their financial results after the second year's trading at the town centre venue. Turnover for the overall business, which includes football club ticketing, entertainment and sponsorship, pitch hire, bar, clubhouse, event management and a sports academy, was up 13% to £1.25 million. Gross trading profit was £293,000, also up 13%.
The rise is attributed to the 3G pitch business model, which enables several complementary activities to run throughout the year, and shows how grassroots clubs can become financially sustainable.
Co-owner Oliver Ash said: "We are pleased with the way the business is developing and that the 3G model seems to be generating sustainable revenues. It means the club is consolidating its position as a valuable and much appreciated facility for the people of Maidstone. The club attracted more supporters to its games in 2013/14 and other areas of the business also expanded.
“This season we have to keep a close eye on the development of the business and make sure we do what we can to keep our existing customers happy and attract new ones. We also need to focus on attracting more local businesses to the club as major partners in our Premium Club.
“We are currently launching our East Stand extension project in order to satisfy match day demand for more seating and better viewing in the stadium. Net profits will therefore, for the second year running, be entirely reinvested into increasing capacity and comfort around the stadium.
“As long as this increases value by increasing revenue potential as well as satisfying supporters' and other customers' needs then it makes sense. We also have to allow for capital costs in the future so we will continue to be prudent with on-going expenditure.
“The club has no external debt whatsoever and the shareholder loans are at manageable levels. The plan is to reduce them gradually as financial results and capital expenditure programmes allow."
The club continues to make a significant contribution to the local economy by attracting large numbers of people into the town centre on match days and for events.
In 2013/14 the club employed nine full-time staff, including four in the academy, together with some 100 additional staff either on the playing side or in other areas of the business on a part-time or occasional basis.
Posted by: Aaron Gourley
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