Page 33 - BBHAC Winter 2017-18 Gazette

Club News 33

(b) Additional revenue will (iii) It is also anticipated that we has been down for considerably
derive from will be able to obtain some longer than this. (Note: The
donations or sponsorships Council have agreed to relay the
ii(i) Greater usage of the bar, ca- on naming rights for the track this year at their expense).
tering and kiosk refreshment new building or individual
facilities in the new building. facilities. Conservatively In Conclusion
These will be open 5 days an additional £5k has been Firstly on the base case, relative-
per week plus weekends for included in the plan. ly conservative figures, income
functions or as needed. This will cover the periodic track
compares to 1 day a week Additional Costs maintenance and replacement
plus occasional weekends for i(i) It has conservatively been costs nearly three times;
the current clubhouse bar assumed that there will
and catering. The plan fore- be few economies in costs Secondly at the end of 50 years
casts net income from these resulting from operating the the Club would have sufficient
sources will nearly double to one, new facility at Norman funds to buy the equivalent of
just over £30k per annum. Park compared to operating Bourne Way;
both the current buildings
i(ii) New revenue will be at Norman Park and Bourne Thirdly If income was only 75%
generated from letting out Way. of our conservative projection
various new facilities in the and the periodic costs were
new building. These include (ii) Additional costs amounting 50% higher we would still have
physio rooms, the indoor to nearly £40k have been sufficient funds to more than
sports hall/track and a num- included in the business plan cover these costs;
ber of multi-purpose rooms to cover additional staffing
that can be let for anything resulting from longer Fourthly If, in the future, we
from pilates or yoga classes were able to obtain grants
to talks and meetings. For operating hours and the towards major refurbishments
larger facility, and additional
the physio rooms we have such as relaying the track, then
an agreement in principle costs for utilities, telephone, an annual income of £25k,
with the Crystal Palace cleaning, security and only a little more than we are
Sports Injury Clinic and equipment maintenance and currently earning, would be suf-
have built these figures replacement. ficient to cover future funding.
into the business plan. For
the multi purpose rooms In so far as the 25 year cash
we are already in talks with flow forecast is concerned:
interested parties. Based
on these we have calculat- Firstly, The following have been
built into the 25 year cash flow
ed the earning potential
from these rooms and then forecast; secondly the track will
conservatively halved it for need either relining at £10k or
inclusion in the business completely respraying at £100k
plan. We have taken a sim- every 4 years; thirdly The pole
ilarly conservative view on vault and high jump beds, plus
hiring out the indoor sports the cage for shot etc. will need
hall, assuming 10 hours replacing every 12 to 13 years at
hire a week. Revenue from a cost of £110k; and finally the
these sources will generate track itself will need completely
additional annual income of relaying every 25 years at a cost
over £70k. of £260k. This is a conservative
assumption as the existing track