Image courtesy of Daniel McCullough on Unsplash
Before an idea for a sports complex can even be drawn up by an architect, there are several documents that should be used to help make informed decisions every step of the way. Constructing a new sports facility is a complex process so it is always good to plan ahead and get as much information as possible before seeking a facility design. The following is a list of documents that we at the Sports Facilities Companies feel are necessary during the facility planning phase to make better decisions regarding funding, design, and operations of your facility.
Market Opportunity Report
A market opportunity report contains any relevant information about the current market that will influence the potential opportunity for a new project. Information such as the market size, consumer demographics, sports participation in the area, the community’s need for recreation, and local, sub-regional, and regional competition are just a few examples of what is included in the report. The market research contained in the report provides a great insight into the environment around the potential facility. This can help you (and your team) figure out the correct size for the project based on the market opportunity and ensure that the operational goals are aligned with the market opportunity.
Pro Forma
A Pro Forma is customized to your market or specific site location and draws on a collection of real-world financial data to analyze the components of the model(s) that, if implemented, have the potential to create a project that can meet its definitions of success for operations and impact. Some of the components generated during the pro forma development process include an estimate of construction and start-up costs, projected revenue and expenses, a 5-year cash flow forecast, and a 20-year financial outlook. The Pro Forma will provide all the necessary information for funding entities to make a decision while providing a snapshot of how the facility might perform if it comes to fruition based on several models.
Sports Facility Advisory projects the items within the financial forecast according to standard processes backed by more than a decade of industry experience including the production of hundreds of institutional-grade pro forma documents, the development of numerous youth and amateur sports facilities, and the real-world management experience gained from the day-to-day operations of more than 30 youth and amateur sports facilities around the United States
Feasibility Study
The feasibility study combines several aspects of the market opportunity report with the Pro Forma to get a better picture of the viability of a project. By comparing market conditions and demographic information with the financial projections of the project it is easier to see whether a facility will thrive in the potential environment based on the collected data. Of all the feasibility studies conducted by the Sports Facilities Companies, about 30 percent of them are considered “not feasible” while the rest were found to be feasible as is or feasible with adjustments.
Economic Impact Report
Last, but not least, is the economic impact report. This report is important for communities who are interested in opening a facility designed for sports tourism and/or regional events. This report uses projections from the Pro Forma to determine how much of an economic impact the facility will drive based on activity from non-local visitors and visitors attending due to a specific tournament or program.
The talented and experienced advisors at the Sports Facilities Companies have guided the planning of sports venues throughout the country by providing the nation’s most credible data. Please feel free to call us at (727) 474-3845 or contact us to schedule a time to discuss your project and get started on the various reports that can help bring it to fruition.
