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Proper Accounting
by Dave
Sunday, May 03, 2009
Economists know that human beings do not suffer illusions when it comes to buying power. Money's value can be somewhat nebulous when it comes to discussing a single purchase, examining personal wealth at one moment in time, or analyzing the cost of playing competitive club travel softball. That is, single item, short duration issues involving finances can be difficult to judge but over the longer haul, human beings have a pretty good, subconscious grip on what they get for what they give. That being said, nowadays, folks do not have to travel far to do some quick calculating, compare products, and generally become satisfied or disatisfied with value offered per dollar. And under today's difficult economic situation, those who run travel ball organizations have little choice but to provide open and honest management, keep costs down, and provide a full and proper accounting of sources and uses of funds.
It does not take a mathematical genius or computer expert to very quickly calculate the costs associated with participation in a travel program. This morning, before breakfast, anyone with an internet hookup can visit a few web sites and make a quick determination about whether they are being ripped off. Let's give it a shot.
Tournaments do vary somewhat in their cost, but not a lot. A typical 2 day event costs anywhere from $400 to $600. Yes, showcases, especially good ones, can cost quite a bit more but we are talking run of the mill stuff here. So, let's ballpark it at $500 for a 2 day tournament.
1 day events can vary in structure as well as cost. There are mere scrimmages which might only cost a visiting organization for the umps and balls while the host pays nothing for town fields. The cost for say 2 or 3 games might run anywhere from $50 to $100+. More formal events, complete with a single porta-potty for two or three fields, MVP medals (how I hate those), and perhaps a short run of t-shirts might cost about $250. Some one day events are full qualifiers wherein teams that win the bid might play as many as 5 or 6 games in a day and the costs of such actual tournaments might look more like a 2 day event. But as an average, I think using $225 is a fair guesstimate.
Leagues are an interesting way to coordinate a slate of "scrimmages" or otherwise fill out a schedule. The type that are available vary from place to place. There are some which mix local rec all-star teams with any comers from the travel world. A few leagues really focus on drawing in true travel programs and thereby provide an almost tournament like setting. In fact, many such travel leagues (as well as those more all-star focused) often hold championship tournaments. Some organizations hold leagues each season and host the majority of games at their own facilities. Some league managers are mere organizing agents and games are played at participants' facilities. The cost of such leagues can vary quite a bit but generally runs in the $600-$1,000 range. $800 is a fair middle number though I expect somebody will write me and complain that this number is too low or high.
Each travel team picks and chooses the type of events and the frequency of those for themselves. There are teams which will play 16 tournaments in a single spring-to-summer season. A few are satisfied with just 6 for the year. A nice round figure would be 10 tourneys including, perhaps one or two hosted by the particular team. In general, the average team pays out of pocket for about 9 tourneys, hosts one, and perhaps participates in one or two leagues.
Of course, we have left out fall ball. And, since a typical travel year begins with a tryout in August, followed by some sort of fall action, and then proceeds through a winter workout regimen, then a full slate of tournamewnts in the spring-to-summer period, we need to consider all of these costs if we are to figure out the value recieved for dollar spent.
The total cost for fall ball usually involves a team t-shirt (figure $10-$20) plus perhaps fees for 1, 2, or 3 tourneys, or a league of some sort. That puts the cost of fall ball at around $1,500 for a team, perhaps a little more.
Facility rentals for winter workouts can be quite a bit of money. Here there is far more variability. One team can pay $200 for an outstanding space for a single hour. Another may have an arrangement under which they can use schools on the cheap or perhaps an organization can negotiate a package deal which costs an individual team as little as $50 per hour for tight quarters to $75 per hour in great spaces shared between several teams. In addition to the cost per hour of commercial spaces, teams also vary in terms of how frequently they practice, whether they do hitting in a single or double tunnel, or perhaps use a full facility and do everything including full infield workouts at once. The sopan over which winter workouts are conducted also contains quite a bit of variability. One team might work three to five or more hours per week from November 1 through March 31, possibly later depending on the local weather. Another might not start up until late January and end early in March in the expectation of being able to go outside then. It is very difficult to come up with a set figure for winter workouts.
The best we can do here is use some basic assumptions and come up with a figure that will not be particularly useful for anyone unless they do some calculations on their own. You know where you practice during the winter. Most likely, if that facility is commercial, they have a web site and you can see what they charge. So, take my quick and dirty calculation subtract it from the whole and add in your own. For my calc, I'll use one facility for an hour and a half per week at $150 for such time, plus another for $75 each week. My speciment training regimen will span 15 weeks. My total cost per team figures to about $3,500.
So $3,500 for winter workouts plus: fall ball $1,500; 6 x 2-day tournaments for $3,000; 3 x 1-day for $675; add in a league at $800; and finally we'll factor in another $300 for scrimmage costs, bringing the grand total for fall, winter workouts and other games to just under $10 grand.
Of course, most teams skip one or more of the foregoing. Teams which play a good fall ball slate sometimes do not participate in a league during the regular season. Many teams couldn't do what they do without the cheap use of a local school during the winter. There is a broad spectrum and all I am trying to do here is give you some structure with which to do your own calculations before church and bagels. Just to make my numbers a bit easier to work with, I am going to choose a prototypical 12 member team and call their total costs (excluding some slightly important things like uniforms and equipment) at $8,400. That figures to a nice round figure of $700 per kid.
Again, you can manipulate the costs via numerous additional events or by cutting out things your team does not do. For example, one organization we have been involved with uses a facility once per week free and another at a somewhat reduced rate. Another team I know of hosts 3 ot the ten tournaments it plays. Another plays loads of one days and perhaps as few as half its events are two days. One team runs its own fall and summer leagues which end up making the organization quite a bit of money. Another plays nothing but very cheap scrimmages outside of its 9 tournament slate. presumably you know what you play and can do your own calcs.
Still, $700 is a nice number to use just as a talking point. Now let's analyze that. But before we do, we really should factor in something for uniforms, including socks and sliders, helmets, perhaops a practice shirt or sweat shirt. Other costs can be factored in such as a pizza party, coach shirts, etc. But in this day and age of belt tightening, I should think that perhaps many of us can do without absolutely everything we "needed" just a couple years ago. Let;'s call the total "needs" figure at $100 while understanding that this is on the low side for teams with two complete and snazzy uniforms as well as a complete sweat outfit for cold April mornings. Our total nut, if you will, is $800 and that's what we want to examine.
Some teams do very little fundraising and some do plenty. Some are smart and efficient while others take up loads of time and accomplish little. Just in mere tagging, some etams are able to earn as much as $50 - $100 for an hour's effort while many settle for smaller, low traffic, retail establishments and pull in $200-$300 in a 6 hour work day. A good, experienced, smart team can work a couple weekends, add in a few hosted tournaments, hold a sale or two and offset as much as half the total nut. Some teams can take up all your free time, make you buy whatever piece of junk they are selling, do a poor job with other types of fundraisers and wipe out a mere $100 of the total cost.
I have been personally involved with probably the middle of the spectrum in terms of team costs borne by parental units. We have paid as little as $300 out of pocket to as much as $1,000, basically for an identical experience. In some cases, the team which costed more actually offered quite a bit less and then had the unmitigated gall to raise rates the next year despite having nothing more to offer at a time when costs remained flat. In one instance, a fairly expensive team actually ended the year with quite a bit of money left in its account and proceeded to tell parents that this money had to be forfeited back into the organization's general fund because of bylaws! In another instance, a team was smart with its money, ended with some left over and kicked back the overage to parents at the final event of the year which event had costed each family quite a bit. The amount kicked back was not a lot but it did pay for a team night out at some restaurant with enough left over for a tip.
OK, so I've given you some calculations of travel team costs. You can do your own figuring. There is going to be a point to all this and I'll get to that shortly but before I do, I want to provide an examination of a couple teams I have seen in action and give you their approximate costs just to round out the analysis.
There is one team which conducts tournaments all the time at a "captive" facility. That team exists for the purpose of providing youth a great softball experience at the cheapest possible cost. Parents are out of pocket about $300 - $400 dollars each year. They make tons of money by hosting tournaments and leagues. At one point, they expected to do a bunch of other types of fundraising but their leagues, etc. were so successful that much of that was cancelled. This team brings in recent college players to help coach the teams and because these ex-players are more after experience than money, they get them cheap. Winter workouts are outstanding for all teams in the organization. Younger kids can be grouped with older ones depending on a number of variables. Generally players and teams improve quite a bit and become highly competitive during their season.
Another team charges closer to $1,000, does a poor job of fundraising, actually participates in less winter workouts than the cheaper organization, plays less frequently and lower quality tournaments, and generally provides less of an experience. Their coaches are all volunteer. Winter workouts vary by team according to the talent of the volunteer coaches. Generally, one gets less for more.
Yet a third team is quite a bit more expensive than the former two. Costs span somewhere between $1,500 to $2,000. There are additional costs each team member bares for winter workouts and professional coaching. Top flight, paid coaches interact with the kids regularly. Kids are brought to a higher level of playing gradually through continued coaching and frequent practicing. The teams within that organization play quite a bit. Costs are higher but one gets quite a bit more from this expensive team than one gets from the middle team.
So, Goldilocks, that's your choice of three beds in which to lie. Your actual choices are probably different than my three simple examples. But the question remains, in which bed are you going to lie? It really depends on your means. But however much you spend, the one thing you want regardless of means is value for your dollar.
Year to year, moment to moment, you probably struggle to find the right fit for your kid and then scrape together the money necessary for that comfortable pair of shoes. Then as those shoes wear in or out, you most likely assess the value received for cost. If the shoes fall apart, iof the experience does not live up to expectations, you may thereafter seek anything else. But you do not do so in a vacuum. You assess the experience gained per dollar output, whether you admit that to yourself or not. And here is where the story is leading.
As parents, we sit along the sidelines for hours and hours on most of our weekends. There are many things considered either by us individually in our own heads or by us collectively in conversations with others.  -; One of the most frequent topics I have heard as a parent is the one in which the costs are contemplated and the specifics enumerated to come to an understanding of whether we are receiving value for our money, or NOT.
As a coach, I have been intimately involved with figuring costs per kid and collecting that money. I have also been involved with teams which keep everyone, including coaches, completely in the dark. If prodded ceaselessly, they will provide an acvcounting but this accounting mostly consists of obfuscation of the facts. Anyone with spreadsheet skills can take this accounting and rip it to shreads. Less ambitious folks look at the accounting and are left with frowns on their faces.
The point is, as I said much eaerlier, anyone with a computer and internet hookup can quickly ascertain the costs a team bares. We may not precisely get all the numbers right but we will invariably get close. And when the experience of participating on a particular team does not provide value for our dollar, we will frequently leave that organization. The economists among us know that we will do that because we are not susceptible to confusion in the grand scheme of buying power. We do not suffer illusions over longer periods when it comes to our money.
This is true because we are social beings. We interact with tons of other travel ball parents. We ask them what their experience has been. We ask them what their team costs. We ask them poll questions like: are you satisfied, completely satisfied, dissatisfied or completely dissatisfied with the state of your organ ization's softball economy?
The grand point in all this is teams have to understand that scentient, social beings, with more than adequate experience and available information resources are going to formulate their own understanding of value received for dollar input. People are not stupid, particularly when it comes to their money. if a team does not provide a full, proper, easily understandable accounting, it is askin for trouble. No, this year's team will not get up and walk out. But as the organization proceeds, I can pretty much guarantee you that fewer and fewer kids will begin showing up for your tryouts. And as this year's team does not show up at your tryouts but rather goes to another team's, possibly every other teams', the word is going to get out. That spreads like a million little prairie fires and will burn you.Labels: parenting, youth tournament teams
Permanent Link:  Proper Accounting
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