Coolhursts Future

1
Coolhursts Future

• Improving our club
• Achieving excellence
• Updated July 2008

2
What is in this presentation?

• Members provided with better understanding of
  clubs finances
• Full information on proposed immediate extra
  three floodlit tennis courts and implications
• Some outline ideas for developing the club
  further in Phase 2 with a range of possible extra
  facilities

3
Future Planning Group

• Subgroup set up by GMC brief to investigate how
  to improve club sustainably
• Over last fifteen months has
• a) Analysed underlying financial position
• b) Looked at how some comparable clubs
  generate revenue
• c) Investigated our land ownership
• d) Trialled many different ideas for
  developing our site,
• and eliminated most as
  impractical/too disruptive
• e) Considered planning policy background
• f) Obtained budget costings
• g) Negotiated terms with St Aloysius
  playing fields trustees
• to extend our playing area
• h) Implemented member attitude survey
• i) Considered implications of various
  funding methods
• FPG recommendations for Phase 1 shown tonight
  were approved unanimously by GMC
• NO CLUB COST TO DATE we must spend once
  principles agreed
• Current FPG members Dudley Leigh, Rob Mackenzie,
  John Marcus, Peter Holden, Ralph Richard Milly
  Ayliffe, Joost Hunningher, Penny Chalmers

4
Coolhursts FinancesSimple overview

• Annual income (inc recent subs increase)
  260-270k
• Annual costs excluding major repairs renewals
  190k
• Annual surplus for major repairs renewals
  80k
• BUT
• Estimate of necessary major repairs renewals
  pa 70k
• Average expenditure to include major renewals
  260k
• SO
• Club budgets to maintain its existing facilities
  in good condition
• Club certainly has no obvious mechanism for
  funding improvements or major new development
  projects
• Management relies upon volunteers in many areas
• If the members want additional or improved
  facilities then we have to provide specific new
  income streams to fund them, whether by increased
  subscriptions, additional members, sponsorship,
  gym memberships, etc

5
What would members like?Key results from club
survey

• High degree of satisfaction with existing
  ambience of club
• 62 of tennis members would like three new
  floodlit tennis courts on St Aloysius land with
  sub increasing
• 73 of squash members would like three new
  glassback courts (making five courts in total)
  with sub increasing
• 38 of members would be interested in joining a
  better gym
• 65 of members would be happy for outside gym
  members to join
• 89of tennis members believe a thriving junior
  section is important
• 42 of members are interested in a physio at
  Coolhurst
• 30 of members are interested in aerobics in a
  decent studio
• 9 of members are interested in hiring for a
  private party
• 27 of members are interested in a daytime creche

6
How can we build income ?

• Some modest scope to raise subscriptions but only
  in return for better facilities (58 of members
  support this proposition)
• Could improve member numbers esp for daytime use
  requires sustained marketing(62 of members
  comfortable with sensible increases in member
  numbers)
• Could improve daytime squash court usage
  (racquetball, more juniors etc)
• Other clubs earn from members gyms, hiring out,
  corporate use, aerobics, etc this requires
  investment in better facilities
• Phase 1 St Aloysius Development
• Three new floodlit courts
• Self-funding - maybe a small surplus with grant
  support
• Phase 2 Redevelopment of old Squash Courts and
  Studio
• Substantial new income streams from new gym,
  studio, meeting rooms and additional squash court
• Major project (600k - 1.2m) with complex but
  viable funding options

7
Phase 1 St Aloysius Development
8
Summary of the St Aloysius Tennis courts

• Three new floodlit courts, tarmac-surfaced like
  courts 1-4, and linked to club by lit stairs up
  the bank behind Court 4.
• Our juniors programme would be on these courts
• Adult play in the evenings and weekends, and
  daytime outside juniors hours
• Use shared with St Aloysius school school has
  three hours each school-time afternoon
• We could offer more schools access to coaching
  and programmes if Local Authority funding is
  provided-access by new fenced secure and lit
  pedestrian access path between Hurst Avenue, and
  the new Aloysius courts
• Total school usage limited to weekdays prior to
  5pm during term time only and only in scheduled
  teacher-supervised groups
• Aloysius pupils would access the courts from
  their own playing fields and use their own
  pavilion
• Any other partner schools would access via the
  new footpath not via the Coolhurst Clubhouse
• Bankside behind Court 4 to be cleared of scrub,
  landscaped and planted to link new courts
  visually to the rest of the club
• Strong support from LTA

9
Priorities for Phase 1 - Key Data Results from
club survey

• 89 say a thriving junior section is important
  2 disagree
• 48 adults would sacrifice adult court
  availability for juniors 37 say not
• 61 say Club needs additional courts 17
  disagree
• 62 would like three new floodlit tennis courts
  on St Aloysius land, funded by a sensible annual
  subscription increase - 18 opposed
• 68 believed a fair subscription increase would
  be above 30 pa, with 45 indicating a price
  between 30-50 pa
• 47 would play more winter and evening tennis if
  additional courts were lit
• 62 believed new floodlit courts would make
  Coolhurst more attractive to new members
• 13 believed they would be able to introduce new
  members as a result
• 61 of members were happy to see sensible
  increases in numbers of Club members to fund
  development 10 were opposed

10
How would new courts be financed ?

• Total cost inc fees VAT approx 241k (including
  34k asset/infrastructure improvements to club)
• LTA grant
  40k
• Bank loan 10yrs 167k
• TOTAL for Courts 207k
• Club cash (asset/infrastructure) 34k
• 
  241k
• Additional income expected is
  
  41,000pa
• 8.5 (40 full) tennis subs increase
  12k
• 30 additional members
  17k
• Floodlight fees
  7k
• Extra juniors income
  5k
• Likelihood of 40k Grant from LTA linked to junior
  programme and 2008 start
• Bank loan if needed secured against lease of
  courts or freehold of club ample security but
  will need business plan to demonstrate payback
• All main elements costed by professional team
• Additional costs

11
Delivering Membership GrowthTennis Committees
draft Marketing Plan

• New TC Member appointed with sole brief to
  deliver membership growth targets
• New Midweek Supremo appointed to TC to
  transform Midweek Section into vibrant
  Club-within-Club. Possible payment for targets
  achieved although not for a volunteer
• Subscription growth target to be expressed
  financially (17k to 170k in 2008 ) and agreed
  with Treasurer the spread between adults,
  juniors, midweeks, families for TC to determine
• Incentive membership with possible 50
  introduction fees payable into on-line booking
  system. Already tested positively with new young
  members.
• Target University tennis teams when leavers move
  to London. Poss friendly matches away in Spring
  2009.Create incentive for future joiners
• Sustained local PR campaign with new junior
  programme as key hook
• Consider concessionary rates for Aloysius parents
  and old boys
• Web-site to be overhauled to become an effective
  recruiting tool
• Prepare a decent two-side colour leaflet,
  majoring on all the Clubs key assets. Perhaps
  sponsored
• Junior membership formal expansion/compulsory
  junior club membership/Club direct payment

12
What is impact of new courts ?

• Partnership with schools develops next generation
  of juniors both tennis and squash
• Cements our Clubmark status at LTA-access to
  loans or grants
• Takes pressure off courts more playing time for
  all
• Club becomes visible from Hurst Ave
• Access possible to Club from Hurst Ave
• Opens up better possibilities for future
  development of club
• Resolves pressure on existing courts from juniors
• Easier to improve or resurface existing courts
• Solves long-running grass court argument
• Provides electrical capacity for more floodlit
  courts
• More courts could be bookable if desired
• Balloon (similar to present one) could be added
  later
• Members could park in Hurst Ave once path built
• Better access for cycles once path built
• Chance to landscape bank behind Court 4 with
  planting and flowers

13
Terms of Deal with St Aloysius

• Club obtains long lease (probably 80yrs) over new
  courts
• Annual fixed ground rent of 5k pa, subject only
  to RPI increases
• New Hurst Avenue access path included within
  lease
• Coolhurst responsible for capital cost of courts
  and future maintenance
• Club purchases banks from school at 5k and
  assumes liability for tree maintenance
• Aloysius School granted use for organised school
  groups during agreed weekday term-time hours
• New power supply for floodlights from substation
  on Aloysius ground will also serve Phase 2

14
St Aloysius courts - Planning Permission

• Planning application has been lodged, jointly by
  Coolhurst and St Aloysius
• Proposal complies with planning policy and is
  likely to be approved normally within eight
  weeks but could take longer
• There will be some neighbour objections to
  floodlights, primarily from Avenue Road, but any
  impact is minimal
• We have consulted neighbours and local authority
  in advance
• Letters of support received from LTA and Haringey
  Sport
• If unexpectedly refused, our professional advice
  is that we would be highly likely to win on
  appeal, but this would delay the courts until
  2009
• Team for planning are LTA court construction
  consultants plus our planning consultant

15
If we proceed with the new courts, what next?

• The new tennis courts are self-funding, but do
  not create major new income
• Aim is to supply extra squash courts, gym,
  function suite, physio room, meeting room etc in
  Phase 2
• Function suite and terrace also provides a venue
  for social events
• Improved daytime activity levels improve bar
  turnover- gym, aerobics etc should help
• Location must replace present built area no
  building on green space
• Planning permission should be obtainable although
  dependent upon detail minimal neighbour impact
• Capital cost 600k-1.2m depending on size, so
  substantial borrowing may be needed
• There must be substantial extra income for
  assured payback over 15yrs say 100k pa to
  borrow 900k

16
How?

• NO DETAILED SCHEMES DESIGNED YET IDEAS ARE TO
  BE EXPLORED. MEMBERS INITIAL REACTION IS
  VALUABLE
• Three realistic possibilities
• A) Demolish studio and replace with minimum
  scheme (club space 200m2) of one squash court,
  plus new gym and function suite _at_ 600k
• B) Replace old squash courts and studio with
  medium scheme (club space 300m2) of three
  inline squash courts plus new gym, function suite
  and other facilities above courts _at_ 850k
• C) Reduce/eliminate cost by partnering
  residential developer who builds flats above new
  facilities. This involves maximum scheme (club
  space 500m2) of five new squash courts plus gym,
  function suite, and other facilities. All current
  squash courts replaced. Likely cost of 1.2m
  offset by equivalent proceeds from residential.
  Built in two phases so that squash operates at
  all times
• Members survey results indicate preference for
  self-funded schemes

17
Likely extra income from new facilities 115k pa

• Gym
  40k
• Aerobics etc
  15k
• Corporate
  8k
• Members parties
  10k
• Extra bar profit
  15k
• Squash Court usage
  8k
• 40 More squash members 10k
• Squash subs increase _at_ 30 RPI 9k
• 
  115k per annum
• ALL NEED MORE RESEARCH
• If we can achieve more net income for the club
  then we can hope to stabilise subs even if we
  spend more on management

18
Some visuals

• Illustrating how a minimum and maximum scheme
  could work
• Remember these are indicative only no serious
  design work yet commissioned

19
Minimum scheme ground floor
Minimum Scheme Ground
Floor
20
Minimum Scheme- First Floor
Minimum Scheme First floor
21
Maximum schemeNew squash courts and Club entrance
22
Maximum scheme -New club extension-first floor
23
Flats above Squash courts and Gym/function suite
24
Overview of club
25
.
View from back of tennis courts 1-4
26
Maximum Scheme Club entrance
Maximum Scheme new entrance
27
Conclusions

• We have a plan which will improve club facilities
  significantly
• Phase 1 paves the way for Phase 2 the new
  courts are ready to build if members agree
• Tennis and Squash Committees will take
  responsibility for delivering membership growth
  targets
• Club has to embrace juniors use for both sports
• Better facilities will provide the basis for more
  revenue
• Phase 2 plans will be developed further over
  the next year if members desire
• More research needed on
• Funding options for Phase 2
• Generating more squash/racquetball use
• Types of gym and membership rates
• Competition for hire-outs
• Types of classes (aerobics/yoga/Pilates etc)