| Would you be willing to pay a little more for unlimited access to the Evergreen ropes course? How about a St James membership for the family? |
| What happens next? More adults figure out more ways to separate you from your $ while providing less or a lower quality service to you. |
In Springfield. Nailed it! |
Which investment do you believe the priority to be? One already owned or one not owned? The question you must ask is how truly profitable a youth soccer club really is for a bottom line businessman? This isn’t a soccer guy, this is a guy who owns a gym. This purchase is nothing more than an amenity to put on the website. It is more likely that FCV is dissolved in two years as a tax write off. That is more likely than him buying another $10 million dollar facility just to run a low profit margin soccer club. |
| SJ has to be cashflow negative currently, and the FCV purchase does generate some recurring revenue. Is it just a matter of putting butts in seats, or a strategic long term plan to establish a soccer presence? |
Probably both. Build the St James brand which attracts more customers. Adds customers via DA soccer that provide MRR and fills the building. Can upsell to DA families as well. |
| A gym is like a movie theatre. You need people in the building. Movie theatres make their profit on concessions. Gyms make their money on drinks, snacks, shirts, personal training, etc. The monthly fee just covers overhead and cap ex. |
Man. Lots of business and soccer knowledge in one place. This forum is awesome. |
I imagine there’s real business knowledge on here. Definitely more than soccer. |
How do you think we pay for this travel soccer? We can't all be unemployed! |
| Market penetration and loss leader strategy. I mean the TSJ guys already spent over $100M on the facility in Springfield. What's another $11M or so for an already built, heavily used facility with an outdoor stadium 25 miles away to serve a broader geo market? They can get people's names and email accounts and market lots of bs ("pro" training, spas, etc.) to them too. Soon they'll also start running tournaments. Only issue is the people in the McMansions next door don't like the facility's lights … so could be in a legal battle there for a while. Offer $7M and see if the seller will take it. If sports use doesn't pan out just build a data center on the land instead. Ha. |
| b |
| d |
Ok. So you will rationalize a decision on what you hope will happen versus what is most likely to happen. Good plan! |
| Every year around this time, a few clubs implode and then have to start again from scratch |