SoccerNet is expected to be an asset of the FA, with potential for sponsorship our outside investment as appropriate. There are a number of potential revenue streams for SoccerNet from within the FA to fund its expected cost of £2.25m. In consideration of funding streams, it is important to remember that SoccerNet initially seeks to modify, rather than replace, that which currently exists. Funding, therefore, could be found from within existing expenditure.
Revenue Streams
Figures to understand the potential revenue streams can be garnered from the FA’s Financial Report, last published in 2016. Gauging the market opportunity are figures from the report:
The FA is the not-for-profit, governing body of football in England which re-invests over £100m back into the game each year. It grows participation, promotes diversity and regulates the sport for everyone to enjoy. Twelve million players of all ages, 400,000 volunteers, 300,000 coaches and 27,000 qualified referees help keep the FA keep the grassroots game going (p4).
As a guiding principle, SoccerNet seeks to be free at the point of use to the grassroots community and does not expect any fees beyond team subscriptions already paid by players to their league.
Indicating the FA finances is the financial review, which reported the following figures (p29):
- Revenue: £369.7m
- Cost of sales: £82.2m
- Operating costs: £258.5m
- Profit after tax: £2.3m
- Finance cost: £18.2m
SoccerNet would perhaps be most appropriately funded through a reallocation of operating costs from existing operations SoccerNet seek to modify, with contributions from profit after tax.
FULL-TIME is one such existing operation. This online service is used by the grassroots community to administer local leagues. SoccerNet seeks to provide updated functionality to this service, therefore, a reallocation of funds would seem appropriate. Funds currently applied to this service are not currently known.
As a not for profit, a key financial performance metric for the FA is the amount invested back into the game, which in 2016 amounted to £125m (p28). The two areas of this investment potentially relevant to SoccerNet’s purpose are as follows:
- Disability, equality and child protection: £4m
- County FAs: £18m
In support of these areas, the FA also funds media campaigns such as, ‘For All‘, which promotes its inclusivity agenda. Figures related to marketing are unknown, however, as a new and dedicated communications channel, it would seem appropriate to allocate funds from this budget.
The FA’s Community Development Team are currently sponsored by the McDonalds fast food chain, which is expected to be a significant income stream. Given SoccerNet’s potential for community engagement it seems appropriate to apply funds from this arrangement to enhance its existing functions. The exact revenue is unknown, however, the FA received £75m from sponsorship and licensing in 2016 (p58).
Application Development and Maintenance Costs
Initial App Development Costs are based on a quote from established App Developer Andreas Ley in Switzerland. Development costs range in the region of £1.75m.
In addition, annual staff costs are as follows:
3 Customer Service Agents £75,000
2 full time Data Capturers £80,000
PR Manager £80,000
Marketing Assistant £40,000
IT Manager £80,000
Further overhead costs/FA Office space £50,000
In addition, funding for Prize monies
is sought £50,000
Subtotal: £455,000
Grand Total: £2,205,000
Funding over £2.2m is sought.