I used to the Treasurer for my local football club. They are a semi professional club whose attendances vary from under 100 to over 1,500. I resigned last August after an argument with the President. The income is generally under £50,000 however they have done rather well in cup competitions this season (hence the gates increasing to over 1,500).
In a cup game the gate receipts are shared (after certain expenses have been deducted) between the home and away club. In the semi finals the gate money is shared three ways with both clubs and the national association. So, is the total income before any sharing done included (and the share of the gate paid to the other club an expense)? In which case they would certainly be above the VAT threshold. Or is it only the income the club actually keeps what is recorded. I can see the arguments for both sides.
Doesn't matter to me now personally as I'm away from all that I'm just curious as to how it will affect the club.
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Never buy black socks from a normal shop. They shaft you every time.
sorry, not an answer to your question but I was just giving a pointer to Bill and came across this which I thought that you might be interested in as it covers the Portsmouth FC saga from an accounting perspective :
I'll just have a think about your scenario and maybe post again in a minute.
cheers,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
It seems that the home club collects the money, calculates the share and then pays a half / third out in the same way as if they were paying them an agreed sum / division of profits for turning up.
In a similar way at a rock venue a band may be paid a percentage of ticket sales for playing but the money will come from the promoter after they have taken receipt.
The band or away team do not suffer any of the risk or reward of maintaining the ground beyond being paid for attendance.
I would classify the division of income as an expense of the home team.
Hope that made sense and I could be completely wrong as football teams do seem to exist in an alternate financial universe.
Cheers,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
