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Analyzing CSA financial reports


finchster

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Since I was bored (day off +bad weather) I got the financial statements from 2006 (which include 2005 numbers) until the most recent one to see if there are any positive trends in the management of soccer in this country from a purely financial standpoint. I e-mailed the CSA to see if I could get any financial statements prior to 2006 with no luck. If anyone knows where to get the previous financial reports please reply. I am not a professional by any stretch of the imagination just someone with too much time on his hands.

Revenues

2005: $10,163,088

2006: $11,970,418

2007: $37,292,671 *2007 $13,604,284

2008: $15,433,854 *2008 $15,357,265

Expenses

2005: $9,560,912

2006: $13,641,555

2007: $34,007,898 *2007 $12,692,125

2008: $15,540,244 *2008 $15,407,954

*Excluding 2007 U20 World Cup.

Total Revenue the last four years: $74,860,031

Total Expense the last four years: $72,750,609

There is a increase of revenue for the CSA since 2005 with a rise from just over $10 million to just over $15.4 million. With inflation taken into account the 2005 revenue would be $10,915,556.56 in 2008 which means there is real growth of about $4.5 million over four years averaging over $1.1 million dollars a year in new revenue. the Most important question is where that revenue is coming from?

2005 Revenue

Membership Fees: $5,063,928

Sponsorship and Donations: $1,454,855

Sports Canada Grants: $1,302,146

Competitions: $900,698

National team’s gate: $544,366

Merchandise: $330,265

Fifa Grants: $303,740

Other: $223,440

Courses: $39,650

2006 Revenue

Membership Fees: $ 5,354,334

Sponsorship and Donations: $2,755,831

Sports Canada Grants: $1,424,262

Competitions: $875,473

National team’s gate: $736,185

Merchandise: $ 360,135

Fifa Grants: $ 287,120

Other: $ 101,303

Courses: $ 75,775

2007 Revenue

Fifa U20: $23,688,387

Membership Fees: $ 5,863,539

Sponsorship and Donations: $2,755,678

Sports Canada Grants: $1,790,767

National team’s gate: $1,224,601

Competitions: $1,149.343

Merchandise: $ 322,385

Fifa Grants: $ 282,844

Courses: $ 136,093

Other: $ 79,034

2008 Revenue

Membership Fees: $ 6,170,081

Sponsorship and Donations: $3,375,427

National team’s gate: $1,884,589

Sports Canada Grants: $1,879,543

Competitions: $1,358,961

Merchandise: $194,226

Fifa Grants: $ 250,430

Other: $ 182,039

Fifa U20: $ 76,589

Courses: $ 61,960

In 2005 membership fees accounted for 50% of all revenues for the CSA with $5,063,928. In 2008 membership fees accounted for 40% of all CSA revenue with 6,170,081. There was a 10% decrease in just 4 years. Membership fees should never be the main source of revenue and it is very positive this is on the way down.

In 2005 sponsorship revenue was $1,562,572 in 2008 dollars. Sponsorship in 2008 was $3,375,427 more than doubling the sponsorship money including inflation. Sponsorship accounted for 14% of revenues in 2005 and in 2008 accounted for 22% of revenues for the CSA, a very positive trend for the CSA. With Nutrilite agreeing to sponsor many youth competitions in Canada recently I believe this number will rise next year.

In 2005 the national team gate was a pitiful $584,670 in 2008 dollars and accounted for 5% of CSA revenues. In 2008 the national team gate accounted for $1,884,589 12% of CSA revenues. Hopefully the CSA can continue this trend upwards and make the national teams a money maker.

Some of the negative trends in merchandise which remained stagnate and declined over the years. I think the CSA is ignoring a large untapped market. However with the failures of the men’s national team in WCQ I can understand why Merchandise sales are down. Maybe a good gold cup can change some of that.

I will do expenses another time but that is what I have right now

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Thanks for posting this^^^. I find it very interesting. I agree (and have written about it here quite a bit) that merchandising is an untapped source of revenue for the CSA. No doubt our Canadian Team won't bring in the kind of bucks that our hockey team does, but with a decent campaign they could reel in some good money.

I'm not going to get into specifics, but it's far from difficult to money this way. I really, really hope that we do drop the Adidas deal with the national team and hopefully get a deal with Nike, as has been refered to in another forum ("new scarves" I think). A breath of fresh air and funding could really help us. Also, kids running around schools with a Nike Canadian Soccer Team tshirt could help raise the profile of the sport... look at how well it's working for TFC.

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Very good. What would be very useful as well would be a comparison of these numbers to Hockey Canada or another soccer federation (USA, for example). Not just to compare the quantum, but the revenue sources, expense levels (and types) and the proportions of each.

Interesting, though.

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quote:Originally posted by earlimus

Thanks for posting this^^^. I find it very interesting. I agree (and have written about it here quite a bit) that merchandising is an untapped source of revenue for the CSA. No doubt our Canadian Team won't bring in the kind of bucks that our hockey team does, but with a decent campaign they could reel in some good money.

I'm not going to get into specifics, but it's far from difficult to money this way. I really, really hope that we do drop the Adidas deal with the national team and hopefully get a deal with Nike, as has been refered to in another forum ("new scarves" I think). A breath of fresh air and funding could really help us. Also, kids running around schools with a Nike Canadian Soccer Team tshirt could help raise the profile of the sport... look at how well it's working for TFC.

Whether Nike, Adidas or whoever we need this sponsor to put some time in and design an appealing kit - not the simple Canada-colours-applied-to-generic version we've seen so often in the past. We need one that the general public will buy because it just looks good. The CSA has to demand more.

Regarding the revenues, good to see some progress.

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quote:Originally posted by finchster

2005 Revenue

Membership Fees: $5,063,928

Sponsorship and Donations: $1,454,855

Sports Canada Grants: $1,302,146

Competitions: $900,698

National team’s gate: $544,366

Merchandise: $330,265

Fifa Grants: $303,740

Other: $223,440

Courses: $39,650

2006 Revenue

Membership Fees: $ 5,354,334

Sponsorship and Donations: $2,755,831

Sports Canada Grants: $1,424,262

Competitions: $875,473

National team’s gate: $736,185

Merchandise: $ 360,135

Fifa Grants: $ 287,120

Other: $ 101,303

Courses: $ 75,775

2007 Revenue

Fifa U20: $23,688,387

Membership Fees: $ 5,863,539

Sponsorship and Donations: $2,755,678

Sports Canada Grants: $1,790,767

National team’s gate: $1,224,601

Competitions: $1,149.343

Merchandise: $ 322,385

Fifa Grants: $ 282,844

Courses: $ 136,093

Other: $ 79,034

2008 Revenue

Membership Fees: $ 6,170,081

Sponsorship and Donations: $3,375,427

National team’s gate: $1,884,589

Sports Canada Grants: $1,879,543

Competitions: $1,358,961

Merchandise: $194,226

Fifa Grants: $ 250,430

Other: $ 182,039

Fifa U20: $ 76,589

Courses: $ 61,960

In 2005 membership fees accounted for 50% of all revenues for the CSA with $5,063,928. In 2008 membership fees accounted for 40% of all CSA revenue with 6,170,081. There was a 10% decrease in just 4 years. Membership fees should never be the main source of revenue and it is very positive this is on the way down.

In 2005 sponsorship revenue was $1,562,572 in 2008 dollars. Sponsorship in 2008 was $3,375,427 more than doubling the sponsorship money including inflation. Sponsorship accounted for 14% of revenues in 2005 and in 2008 accounted for 22% of revenues for the CSA, a very positive trend for the CSA. With Nutrilite agreeing to sponsor many youth competitions in Canada recently I believe this number will rise next year.

In 2005 the national team gate was a pitiful $584,670 in 2008 dollars and accounted for 5% of CSA revenues. In 2008 the national team gate accounted for $1,884,589 12% of CSA revenues. Hopefully the CSA can continue this trend upwards and make the national teams a money maker.

Some of the negative trends in merchandise which remained stagnate and declined over the years. I think the CSA is ignoring a large untapped market. However with the failures of the men’s national team in WCQ I can understand why Merchandise sales are down. Maybe a good gold cup can change some of that.

I will do expenses another time but that is what I have right now

Thanks for that info Finchster!. I was wondering for some time what the impact of the V-Cup was on national programs.

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quote:Originally posted by Free kick

Thanks for that info Finchster!. I was wondering for some time what the impact of the V-Cup was on national programs.

I don't think that’s where the bulk of the income is for the Vcup. Most of the income I think comes from sponsorship from Nutrilite. While there is an increase for competitions it accounted for 8% of revenue in 2005 and it only accounts for 8% in 2008.

2008 was the first year of the Vcup for the CSA and sponsorship went up about $500,000 and competition money went up $200,000 from the previous year. I think that’s where most of the revenue from the Vcup is. It will be interesting to see how these two aspects increased in the 2009 edition of the Vcup.

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That national team's gate jumped $500,000 in 2007 (compared to 2006). The opening of BMO Field had to have helped.

The first national team event at the stadium, a U20 friendly between Canada and Argentina, was included in TFC season ticket packages and drew 18,000+, which obviously was good business for the CSA.

With the opening of Saputo Stadium, the CSA absolutely needs to increase the number of nat'l team games played on home soil. This can become a huge source of revenue if done correctly.

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quote:Originally posted by Rudi

That national team's gate jumped $500,000 in 2007 (compared to 2006). The opening of BMO Field had to have helped.

The first national team event at the stadium, a U20 friendly between Canada and Argentina, was included in TFC season ticket packages and drew 18,000+, which obviously was good business for the CSA.

With the opening of Saputo Stadium, the CSA absolutely needs to increase the number of nat'l team games played on home soil. This can become a huge source of revenue if done correctly.

I think the CSA is seeing that. The national team gate is now the third highest source of revenue (Just barely above sports Canada grant). I think they have some work to do with no important matches for the men’s team for a few years. Maybe they can get home games against countries tuning up for the World Cup, or maybe get a friendly against a good European side that did not make the World Cup? It is good to see that sponsorship and gate are the fastest growing revenue streams for the CSA.

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I'd be curious to see figures for brerak even ticket sales at BMO, Saputo, and Commmonwealth. Obviously they're making money on home games during competitions like the U-20's, but for poor turn-outs at games, I wonder how much risk there is of a financial loss.

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