Sports club finds new revenue stream by throwing concerts
This is a brilliant example on how a sports club turns their facilities into a new source of income. By welcoming thousands of festive locals to enjoy a double concert, this club will not only earn good money but they also found a sustainable way in doing so.
“We have capacity for 3,500 people, but we don’t expect to fill the whole place. We know that if 2,000 turn up we call it a win and earn good money”, said Preben Olsen, event organiser at the sports club FyllingenBergen in western Norway.
He is looking forward to receiving two of the biggest and most popular artists from the area for a historic double concert.
One of the artists has 60,000 followers on Facebook, and well over half of these live in western Norway. The other artist has 15,000. Both artists style and sound appeal to most people, and when we can let the audience enjoy these guys in a venue with plenty of space for dancing and fun, then we’ll expect a good turnout”, he says.
Nearly zero risk
As a sports club, FyllingenBergen does not have the same risk capital as the major concert organisers. They managed to secure this concert because they could offer something equally valuable: a big capacity.
“Together with the artists we share the risk and this made this concert feasible for us. We can’t just pay a large amount of money in fees like the commercial organisers can. But as we have space for as much audience as we have, the artist can be left with at least as much money, whilst it leaves some money for us too”, says Olsen.
In addition, the sports club also earns quite a lot of money on the bar sales.
Olsen has previously run a bar in Bergen, thus having the necessary license needed to serve alcohol.
“Beer sales are important both for our economy and for the well-being of the audience. We’ll set up seven bars and have 14 people serving throughout the evening. Since I’m licensed we’ll get a full refund from the wholesaler on the outstanding stock. In this way we don’t need any middlemen to pay fees to, which would have eaten our profits. Thus, the entire profit will remain in the club”, he says.
Great conditions for events
In addition to a large venue capacity, FyllingenBergen has several good conditions for this type of events.
“The venue is centrally located in one of the largest counties in the country’s second largest city, so we have a large audience within our range. In addition, we have great volunteers amongst the club members that can make money for the club whilst having great fun. And not least, we have already a lot of infrastructure in place from the club operations and sports matches, such as ticketing. Thus, our prerequisites are the best, says Olsen.
Olson would warn other sports clubs to carry out the same unless everything is carefully thought out. When we asked him what advice he would give other sports clubs, he said;
”Making concerts in this format can quickly become an expensive project. There is a lot to consider and my advice to other sports clubs would be;”
⇒ Find an artist with a broad local appeal amongst an adult and affluent audience.
⇒ Make an income sharing agreement from the start.
⇒ Remember that the required technical equipment may be extensive, and do not take for granted that the artist is able to bring all audio and lighting equipment.
⇒Finally, make sure you have all the necessary approvals before entering into any binding agreements.