Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

Levy
FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

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 

Icondia (Icondia-C-468x60.gif)
 
RETURN TO LATEST NEWS SECTION
SUBSCRIBE TO THE FCBUSINESS RSS FEED
 
If you have any football business related news stories you’d like to share then please contact us –
agourley@fcbusiness.co.uk  

To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

Watford FC: An Unlikely Financial Success Story?

Wed 26th Apr 2017 | Money & Finance

The business model carried out by the owners of Watford FC is unlikely to be adopted by too many sectors outside of football, but by hiring and firing a conveyor belt of managers, they have managed to...

Newcastle United & West Ham Face Tax Investigation

Wed 26th Apr 2017 | Money & Finance

Newcastle United and West Ham United have been targeted by HMRC for alleged Tax and National Insurance fraud. Officers are understood to have raided the offices at St James’s Park and the London...

Premier League Revenues Grow But Losses Return

Thu 20th Apr 2017 | Money & Finance

Premier League clubs’ revenues increased to a new record of £3.6bn in 2015/16, according to Deloitte, the business advisory firm. Analysis of the financial results of Premier League clubs...

7 Tips From The Best Online Football Merchandise Stores

Thu 13th Apr 2017 | Money & Finance

CEO, Lewis Holland and the team at DiscountIF team have been studying various merchandise stores of football clubs in the UK. This article was originally posted here. We’ve compiled a short list...