The Bluewater Football Association operated for a seven-month period, February to August, every year. Home games were played at the Norm Perry Memorial Field in Sarnia. The City of Sarnia had recently announced major renovation plans for the field, including a new score clock, updated grandstands, and artificial turf, all to be installed by April 2013.

VARSITY TEAM PROPOSAL-Demand

The Sarnia Sturgeon football program had increased the popularity of football in the Sarnia area, and as a result, many players who were graduating from the program still wanted to play competitive football. Chatham, Ontario, approximately a one-hour drive from Sarnia, was the nearest city offering a varsity football team, so many former Sturgeon players began traveling to Chatham three to four times a week to play on that citys varsity team. These players, along with many others, strongly supported the BFA adding a varsity team to the Sturgeon organization. Stewart recognized the demand for the program, but several costs would be incurred by adding another team, and the existing revenues generated by the association would not likely cover all of these additional costs. Stewart set out to determine how much financing would be needed and how the BFA should go about raising these funds if it decided to add a varsity ream.

Registration fees-The BFA charged each player $425 to join the Sarnia Sturgeon, football team. Registration took place every February with all monies collected at the time if registration. BFAs registration cost per player was among the lowest in the province, resulting in a strong need for fundraising by the players and their families. The BFA had sold chocolate bars and cash calendars as past successful fundraisers. The new varsity team would be expected to raise a total of $2500 from fundraising, and these funds would be collected in May prior to the regular football season commencing in May.

Game Day Revenues-The regular football season consisted of 8 games, and half of these games would be played at the teams home field. During home games, the BFA charged admission of 5$ per person and operated its own concession stand. Stewart projected a total of 2000$ in admission revenue for the varsity team over the regular season. Although the schedule was not yet finalized, Sarnias home games would likely be split evenly between June and July.

BFA volunteers operated the concession stand during home games. The concession stands sold a variety of food, including hamburgers, hotdogs, pop, and chips. Concession revenues averaged $500 per game, and food costs typically averaged 45% of sales. Food costs were paid during the month in which they were incurred.

Equipment Costs-The BFA would need additional equipment for the new varsity players since the association provided all protective equipment, game jerseys, and equipment bags to its players (see exhibit 1). Since sizing was difficult to estimate, the BFA typically purchased five more sets of equipment than the number of registered players per team. All equipment was purchased on credit in March and paid for one month later. The equipment was expected to last multiple seasons; therefore, it would be depreciated using the straight-line method, with no salvage value, over a five-season useful life.

Practice Facilities-Following registration, the Sarnia Sturgeon commence indoor practices and workouts. The team used high- school facilities on weeknights. Once the weather was warm enough, outdoor practices were held at a privately owned practice field. Adding a varsity team would increase the maintenance costs at the practice field due to additional usage. These maintenance costs included grass seed, field repair, and grass cutting. Projected annual costs for the new varsity teams practice field maintenance totalled $1500. This cost would be spread evenly from April to August when the practice field was in use.

Other Costs-The Ontario Football Conference charged each team a league enrollment fee of $500 per team and an insurance fee for liability of $900 per team. BFA paid both costs in March. Home games required the rental of the Norm Perry Memorial Field. The city of Sarnia charged the BFA $200 per game for use of the field and the announcement system. The BFA paid this cost in the same month as the rental. The BFA also paid referees to officiate the home games. Referees cost $200 per game and were paid the day of the game(s). When the Sarina Sturgeon team played games out of town, the team was transported by coach bus. Busing costs varied, depending on the distance to each game. In 2012 the average bus trip cost was $2300 per game. The BFA paid these busing costs one-month following per game. Sturgeon players and coaches were provided bottled water at games and practices. Additionally, the BFA purchased pizza for the players to eat on the bus ride Home following every away game. total food and water costs for a varsity team were projected to be $1600. 50% of these costs would be incurred and paid for in June and July (split evenly between these two months). The remainder of the food and water costs would be split equally among the other months in the operating period. The BFA provided all players with matching Sarnia Sturgeon shirts for game day. The coaching staff was also provided with similar golf shirts and hats. This apparel for a new varsity team was projected to cost $1000. The BFA would order and pay for the apparel in March.

Line of credit-The varsity team would begin operating with no cash. The BFA had been approved for a line of credit with a $15,000 limit. Interest would be charged at an annual rate of 6.5% based on the outstanding balance at the end of each month, and payment would be due 10 days after the end of the month period since the organization's inception, the line of credit had been used minimally but Stewart wondered whether the line of credit could provide the initial necessary funding for a varsity team. She planned to use and repay the line of credit as needed on a month to month basis. She also knew that some members of the executive were engaged in using debt financing to start up a fourth team. Stewart wondered whether the BFA could see corporate sponsor donations to finance the team.

Other options-Stewart thought she would also evaluate other options to increase funding. One option was to raise registration fees to $550 per player however, Stewart believed that player registration might decline to 30 players at this higher fee. With a few players, the team's food and water cost would be reduced to1400$. Stewart projected fundraising revenues might also decline to $2100 with fewer players registered.Another suggestion was to have our varsity players purchase their own protective equipment, which would save the BFA much of the equipment costs for our City team: the BFA would supply players with the game jerseys, pants, belts, socks, and equipment bags only. Stewart believes this option would not have a noticeable effect on registration numbers since players could keep the equipment and resell it in the future. Stewart wanted to know the amount of funding needed under each of these options, as well as a combination of two options.

- a youth football team could operate with as few as 25 players, but the BFA believed an ideal team should consists of around 40 players. - A cash calendar was a raffle in which ticket holder's names were drawn each day of the month and cash prizes were awarded to the winning ticket holders. - One game in late May, four games in June and three games in july. - Sarnia, Ontario is located approximately a three- hour drive west of the city of toronto.

Exhibit 1-Projected equipment costs per player

Helmet - $200 ,Shoulder pads-125, Belt- 2, Pants - 50, Thigh/knee pad - 4, Girdle - 25, Game Jersey - 43, Socks- 5, Equipment bag -20, Total -$510

a)Complete this table of "increased registration and buy own equipment" AND evaluation of it(both quantitative and qualitative)

Cash Budget
	February	March	April	May	June	July	August	Total
Inflows:
Registration fees
Fundraising
Admission revenue
Concession revenue
Total inflows