Perth Glory FC tells fans what it costs to run an A-League franchise

Executives of A-League club Perth Glory gave supporters and members an insight into sports marketing at a 'Fans Forum' today, illustrated by public disclosure of the costs of fielding a professional football club based in the state of Western Australia.

According to a report by Neil Sherwin in The Football Sack, Chief Executive Paul Kelly said it now costs between A$8.5-$9.0 million per year to run Perth Glory - one of the ten A-League franchises in Australia and New Zealand - and if membership was based on amounts needed to make the club financially stable, "they would cost $1,600 per person per season".

The club's match-day costs include a subsidy to the public transport operator which is increasing from A$1.50 per person to $2 per person; stadium security costs of about A$184,000 for each home game; and a charge of A$22,000 to use the stadium's big screen.

Regarding the club's recent move from Reebok to Blades it was stated that it costs Perth Glory A$140,000 per year to kit out its first, women’s and youth teams and the club only makes $2-3 from each replica shirt it sells to fans.

Comments

Anonymous said…
Maybe Neil Sherwin made an error in his report about what Perth Glory makes from the sale of a shirt? $2-$3 profit seems far too low when the shirt is being advertised on the Glory online store for $120.

If each shirt costs the club $69 and the tax is $11, then the margin is $40 before sales costs. So a profit of $20-$30 seems more likely.

But is it?