Hoops

Juniors Finals Time

829,
The courts are not "free" tonight and that is the point I am making. People are of the impression that the courts are being used because BSA don't have to pay anything for their use.

What I am saying, it that BSA have secured the use of these facilities at a lower commercial rate. They need to charge those facilities out at the commercial rate to ensure maximum return to them. A healthy BSA is good for basketball.

When an internal charge is made between cost centres the commercial rate should be used, not the lower rate. That way the true cost of the court hire is reflected.

BSA do actually pay for court hire as the courts are hired in a long term arrangement. The cost of that is recovered by hiring the courts to tenants, such as district clubs etc. Therefore the cost of the court hire for finals is effectively hidden and so BSA can effectively write the cost of the courts as zero for that event. It's just clever accounting, but dumb business practice.

BSA obvious recover enough of that money over the course of the year to cover the stadium hire, but it is a little false economy. Let's say the commercial stadium hire rate in this state is $45/hr. Now BSA have locked in long term tenancies at several stadiums. Without knowing the exact rate, I would imagine the rent at is paid with some discount of some description regardless of your view.

A stadium is available for rent for games, Sunday trainings, mid-week. Carnivals.

This competition hire needs to be recovered at the commercial rate, not the discounted rate. It is false economy not to charge commercial rate hire.

If BSA charged themselves at the commercial rate, then the cost of competition would be a true cost and there would be a yearly excess that would mean BSA is in a healthy position. It is not a profit. BSA are a not for profit organisation, but need to aim for an excess in operational costs to be financially stable.