You may think it’s not worth having an amateur sports team. But think about it this way: why would they exist if they weren’t making money?
Even sports teams in the lowest division levels can make thousands of dollars when run correctly. Of course, there’s a high chance of going bankrupt as well.
Here are seven popular ways in which amateur sports teams earn money:
Over the years, sponsoring deals became the cornerstone for financial revenue for sports teams of all sizes. For example, some Premier League clubs earn 20 million euros per season for sleeve sponsors. Yes, you read that right, just for wearing a logo on the sleeve.
Any amateur team can get sponsorship – and usually – that contract would mean the largest source of earnings the team would get throughout the season.
2. Selling TV rights to local networks
Amateur teams might not get to see their teams live on TV. However, local networks could be interested in showing highlights to local citizens, thus paying the team for the images.
Sometimes, amateur teams get to play elite clubs in cup games such as the FA Cup in England. In this competition, a couple of 5th division teams play against the likes of Chelsea, Liverpool, or the Manchester clubs every year.
A large-scale network like ESPN could pay them to broadcast the game if the match were to take place at their home stadium. Otherwise, if an amateur team plays as the away side in a large, elite stadium, this team gets a percentage of ticket sales.
Other sports like baseball or basketball usually do not have these cup games.
3. Winning tournaments
In modern sports, sponsors bring the most revenue for professional and amateur clubs. But a long time ago, it was winning tournaments that meant the financial success of a team.
Although a small tournament might not bring a crazy amount of money, they still are the reason why these sports teams from multiple disciplines play every season. The goal of each of these teams is attaining sporting success while reclaiming the money prize from the first spot.
4. Selling players and merchandise
Because amateur teams don’t have massive income sources, they are forced to sell their best players at the end of every season. It is neither good nor bad, as amateur teams usually have a good eye for spotting new, exciting talents.
It is a loss on the sports side for the club, yes. However, it is how the game works even at the highest level. In fact, many small teams are investing more and more in scouting. Should they find a player worth of first division, an amateur institution could be paid up to six figures for the athlete.
The merchandise also deserves mentioning, although amateur sports teams generate insignificant profits due to the small fan base.
5. Advancing to the next division
Better rivals mean more money in TV rights. For amateur teams, the game to qualify for the immediate, superior division is the chance of a lifetime.
They’d win the prize money for reaching a new division, and staying up would translate into years of increased revenue due to sponsors, TV rights, and more.
6. Stadium tickets
Ticket revenue is fundamental for any sports team. Many professional and amateur teams were in financial trouble after the pandemic forced teams to play without any public for a whole year.
Most teams use ticket revenue to pay players their wages, meaning they could invest money from sponsors and TV rights in other areas. For example, building a better stadium or signing better players. Fans are aware of this situation, so they always make a sacrifice to buy tickets and support their local team.
7. Fundraising events
Not all amateur sports teams can depend on the luck of playing an elite squad or winning the championship. For that reason, almost all of these teams organize one or two fundraising events every season.
Often, they invite a local celebrity, or a former pro, or simply organize a fun day for the attendants. Also, these fundraisers might attract interest from a wealthy person or company, enticing them to make a generous donation to the team.
+1- The Unconcenvitonal Way
We strongly believe the best way to make money as an amateur team is to convince local sports fans to either buy tickets or merchandise from your team or donate BUT OFFER AN UNBELIEVABLE BUT REALISTIC INCENTIVE in return for their money.
We found Marketing Boost as a Travel Incentive company that enables sports teams to offer unused hotel stays in return for their money.
The way it works is that a sports team can become a member of Marketing boost for $37 a month and gets access to unlimited unused hotel nights all over the world that hotels are happy to give away as they hope to get additional revenue from selling onsite services to someone they get through the door.
This is a fantastic way to promote a local amateur team for a low price.