Thunder Bay Indoor Racquet Centre

Prepared by:

The JF Group

May 2020

Thunder Bay Indoor Racquet Centre Business Case Study – Final Report May 2020

Table of Contents

Introduction .................................................................................................................................... 1

Preamble ..................................................................................................................................... 1

The Relevance of the Previous Study ......................................................................................... 2

Relevant Facts about the Market Size and the Sports .................................................................... 3

Population Trends ....................................................................................................................... 3

Tennis Trends .............................................................................................................................. 3

Pickleball Trends ......................................................................................................................... 4

Stability of the Thunder Bay Community Tennis Centre ............................................................ 5

Potential Market Implications .................................................................................................... 6

Business Case .................................................................................................................................. 7

Introduction ................................................................................................................................ 7

Capital Cost Estimates................................................................................................................. 7

Revenue and Operating Cost Estimates ..................................................................................... 7

10-Year Financial Forecast ........................................................................................................ 10

A Dedicated Capital Reserve Account ....................................................................................... 11

Economic Benefits of Investing in Indoor Racquet Centre ....................................................... 11

Appendix A … Capital Cost Estimates Appendix B … Detailed Operating 10-Year Pro Forma

Thunder Bay Indoor Racquet Centre – Business Case Study

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Introduction Preamble

In the 2018, Thunder Bay Community Tennis Centre (TBCTC) engaged The JF Group to prepare a business case and feasibility study for the development of a 4-court indoor tennis facility. At the time, the building solution for the new facility contemplated an air supported fabric dome covering existing municipal tennis courts located in Chapples Park. After much deliberation with the City of Thunder Bay and provincial officials, the concept did not receive initial funding and approval as a stand-alone facility. Over the ensuing months, TBCTC Board of Directors and City staff determined that the project could provide a higher level of community benefit if the facility’s sport offerings were expanded to provide amenities and programming alternatives appealing to a wider target audience. To this end, the Board engaged in discussions with the Thunder Bay Pickleball Association (TBPA) to determine the viability of a Thunder Bay Indoor Racquet Centre (TBIRC) that would allow both tennis and pickleball players to participate in their sport of choice on a year round basis.. TBCTC and TBPA exchanged ideas about the possibility of a joint use facility and developed a general understanding about cooperative programming, scheduling, court use and mutually agreeable facility design features. Additionally, they discussed the likely appeal of the facility to their existing members plus the possibility that the year round playing season might help to grow levels of tennis and pickleball participation in Thunder Bay. Finally, the groups conferred on practical matters of facility operations including acceptable hours of operation, membership and court fees, proposed staffing models and general operational standards. Subsequent to these discussions, the TBCTC Board requested that The JF Group update the 2018 business plan to include the addition of a 6-court indoor racquet facility to accommodate the combined needs of Thunder Bay’s tennis and pickleball communities. The updated plan is to employ the foundational elements of the previous study and where necessary, revised to reflect the joint use nature of the proposed TBIRC. This document presents the information and data that is relevant to the revised facility concept. Many of the key themes that were included in the 2018 Report – such as the facility’s compatibility with the City’s strategic plans and its alignment with national and provincial sport programs such as Sport for Life – remain relevant and applicable to the new multiple racquet sport concept. Therefore, rather than repeating the material herein, the reader is encouraged to review the 2018 Report for details related this background information. This Report provides relevant information about the revised business plan and where necessary clarifies details of the earlier plan which have been adjusted to accommodate the two-sport facility. The business plan assumptions and revised capital costs are presented as well as the financial projections related to the facility’s operations. The business assumptions are based on


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the information that was originally presented in the 2018 report, revised to reflect the expanded nature of the multi-racquet sport complex.

The Relevance of the Previous Study TBCTC initiated the 2018 feasibility study to review the viability of a new indoor 4-court tennis facility by addressing the following.

Tennis participation levels based on provincial and local tennis participation profiles and the demographic makeup of the Thunder Bay community.

TBCTC’s ability to undertake the project, potentially in partnership with the City.

Preliminary facility design concept(s) including estimated capital costs for each concept.

An analysis of the estimated need for indoor tennis opportunities in Thunder Bay, an operating model, a fee structure, financial projections, sustainability forecasts, etc.

The economic impact of the proposed indoor facility. This report re-addresses these items either by updating the relevant data or confirming that that the conditions and implications of the conclusions reached earlier have been unaffected over the past twenty-four months. The two most significant variations between the initial and the revised concepts are: (1) the size of the proposed facility to now become a 6-court complex; and (2) the expanded programmatic elements to include pickleball. The development, operational and financial influences of both of these changes are dealt with in the following sections.


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Relevant Facts about the Market Size and the Sports Population Trends The consultant accessed updated population profiles of the City and Region of Thunder Bay. The key findings of this research are the following.

There has been very little change in the total number of residents in either the City of Thunder Bay or the Region since the 2018 feasibility was completed. According to the City’s Planning Services Division the total population modestly declined (.2%) between 2014 and 2019 and is expected to fall by the same amount by 2024. The City’s population is estimated to be approximately 109,500 by 2024.

While the total population numbers have remained relatively constant, the age profile

of the area is definitely changing. Between 2014 and 2019, there was a thirteen percent (13%) decline in the total number of residents between the ages of 15 and 24 years. Over the same period, the number of individuals over the age of 65 years grew by fourteen percent (14%). The City’s Planning Services Division anticipates that the area’s shift in the age profiles will persist for the foreseeable future.

Change in Proportion of Thunder Bay Population by Age Cohort

5-year Age Change in Population

2014 to 2019

2019 t0 2024

2014 to 2024

0-14 yr -1% 0% -1% 15-24 yr -13% -10% -22% 25-39 yr 2% 3% 5% 40-64 yr -5% -10% -14% 65+ yr 14% 14% 30%

Tennis Trends Tennis Canada reports that in Canada, participation in the sport continues to be impressive. Key and relevant facts that are germane to this study are the following.

0% 20% 40% 60% 80% 100%

2014

2019

2024

14%

14%

14%

13%

11%

10%

25%

25%

26%

29%

28%

25%

19%

21%

24%

0-14 yr 15-24 yr 25-39 yr 40-64 yr 65+ yr


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Tennis appeals to a broad range of participants – young or old, competitive or recreational players – it is truly considered a “sport for life”. Importantly, the vast majority of tennis participation is for recreational purposes.

The increase in tennis participation across Canada continues to be impressive. Possibly driven by the recent success of high profile Canadian tennis professionals, the sport continues to be one of the country’s growth sports.

Ontario continues to lead all provinces in tennis participation.

Almost half of Ontarians say that they would play tennis more often with access to an indoor, tennis facility. It is for this reason that Tennis Canada developed a Municipal Partnership Framework that describes the benefits of indoor tennis environments as well as approaches to partnership development between tennis organizations and municipalities that provide public tennis facilities.

Pickleball Trends As reported by Thunder Bay Community Services Department, community research conducted through the Recreation and Facilities Master Plan identified growing interest in pickleball. This is consistent with national and provincial trends and some articles suggest that pickleball is one of the fasted growing sports in the nation. Pickleball combines elements of tennis, badminton and ping pong. Two to four players use solid paddles composed of wood or composites to hit a perforated polymer ball over a net.1 In other Ontario cities, it is a common practice for the municipality to paint pickleball court lines onto existing outdoor tennis courts to accommodate the growing interest in the sport. During the winter months, pickleball can move indoors into available gymnasium/multi-purpose space. Currently, in Thunder Bay, Administration has received concerns from user groups regarding the lack of available and publicly accessible multi-purpose gymnasium space.2 Third Shot Sports is a consulting group specializing in the sport of pickleball. The firm and its principal provide sport specific advice to pickleball organizations across North America and are deemed to be on the leading edge of the sport’s evolution. Information gleaned from the firm is as follows.

Since pickleball began around 1965, the game has generally attracted an older demographic; however, as its popularity has grown, it is tending to attract younger players. Regardless of age factors, the popularity of the game is on the rise and the number of players is growing.

1 Staff Memo to Special Purpose Committee – Multi-use Indoor Sport Facility – Sept. 4, 2019

2 ibid


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In Canada, pickleball is popular in communities with harsher climates and therefore is frequently played indoors. Until very recently, the game was most often played on a recreational basis in school gyms, YMCAs or municipal community centres and was generally seen as a means to get exercise and have fun in a social setting.

Relatively recently, organized clubs have come together in a manner that mirrors the

way in which community tennis clubs are structured and operated. But playing in these organized clubs is infrequent compared to open, recreational play in unstructured environments. Because pickleball largely began in the public recreation realm, its players are accustomed to very low fees to get access to space to enjoy the game.

Stability of the Thunder Bay Community Tennis Centre As stated in the 2018 Report, the Thunder Bay Community Tennis Centre (TBCTC) is a non-profit organization that has been providing a full range of tennis programming and services to the residents of the City and surrounding District for over three decades. The TBCTC provides recreational, instructional and competitive tennis services to its members who have joined on a membership fee basis. The general public is able to access court time on a day pass basis. The Centre has a long history of delivering quality programming that is valued by the residents of Thunder Bay. The Centre continues to be a popular recreation alternative that is enjoyed and valued by Thunder Bay residents. The Centre’s membership levels have remained strong for the past several years. Since 2015, the Centre’s membership numbers have grown by between 5% and 15% on an annual basis. TBCTC 7-Year Membership Trend

The Centre operates in accordance with a Letter of Agreement (1993) between the TBCTC and the City’s Community Services Department. The Agreement sets out the operating and

0

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2013 2014 2015 2016 2017 2018 2019

350 331 342 403 427 475 502

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financial obligations of the Centre and the municipality as well as stipulating the Centre’s requirement to carry adequate insurance coverage and to establish the capital reserve account to assist the City in funding court maintenance and other infrastructure repairs or improvements. This business plan assumes that a similar arrangement can be negotiated between the TBIRC and the City for the new 6-count complex. Potential Market Implications Given that population levels are expected to remain relatively constant for the foreseeable future, it is reasonable to expect that the size of the potential market available to the proposed Indoor Racquet Centre will be consistent with the number of potential members/users that were projected in the 2018 Feasibility Study. The difference is the addition of the two courts to the plan plus the introduction of pickleball play. The 2018 Business Plan Report stated that:

“Indoor tennis facility managers report that between 75 and 100 members per court are required to produce sufficient membership, court fees and program revenue for a financially successful indoor tennis operation. We tested the reasonableness of this standard by applying a formula which considered hours of operation, participation mix (singles vs. doubles), court utilization thresholds (95% prime time, 50% non-prime time) and frequency of play levels (2 plays per week). This analysis determined that one court could comfortably accommodate 87 tennis players primarily playing during prime time hours, leaving sufficient available time for organized programs. Our analysis therefore supports that between 75 and 100 members per court is a reasonable target for a new indoor tennis facility”.

The TBIRC is now proposed to become a 6-court indoor facility. Based on the foregoing capacity analysis, the TBCTC would be required to successfully attract between 450 and 600 members to maximize prime time court utilization plus additional participants who will populate non-prime hours. This of course does not include the added financial and programmatic benefit of including pickleball users to the business plan. Assuming the local tennis participation rate is at 17.5% (which represents the mid-range of participation rates across Ontario), the Centre would be required to successfully capture between 56% and 75% of the available indoor tennis market to occupy prime time hours of the 6-court facility. Unfortunately, accurate playing frequency data and other similar statistics are currently unavailable for pickleball. However, it is reasonable to expect that pickleball court use would reduce the number of tennis players necessary to support the financial viability of the Centre. Therefore, the estimated size of the available racquet sport market in and around the City of Thunder Bay should be large enough to produce a sufficient number of high quality potential members to support the revenue projections presented in this business plan.


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Business Case

Introduction This business case has been developed to demonstrate the financial viability of a proposed new 6-court indoor tennis and pickleball centre. To create a foundation for the business case and with relevant input from TBCTC, the consultant prepared the following parameters and assumptions related to the facility’s future marketing, sales, staffing and operational performance. The information in the sections below has been used to develop revenue and cost forecasts for the proposed complex. Capital Cost Estimates The capital cost structure of the TBIRC is substantially different than the capital cost estimates developed for the earlier version of the facility. City officials working with the TBCTC Board prepared the capital plan. One major change is that the new complex would be located on four existing courts plus two newly constructed tennis courts adjacent to the existing tennis complex. This necessitates capital expenses not contemplated in the previous Report such as additional site works including parking, curbing and landscaping. The grade beam that anchors the air support dome to the ground must be extended to encircle the larger court footprint and additional professional and permitting costs have been included. Given that the estimates were prepared in 2019 and that construction would not occur until the summer of 2021, the capital estimates have been escalated by 3% to account for inflation. Based on these assumptions, it is estimated that the total capital cost to develop a new Thunder Bay Indoor Racquet Complex would be about $3 M. A detailed breakdown of each capital cost item is presented in Appendix A. Revenue and Operating Cost Estimates Assumptions

The bubble would remain inflated and in place year round. This operating decision has

been driven by the TBCTC’s desire to offer indoor tennis opportunities not only during

the winter months but also in the event of inclement weather in the summer time.

Members would be able to join exclusively for the 30-week winter season (October

through April) or for the full year. Year-long members would thereby gain access to

both the outdoor and indoor courts during the summer months. The TBCTC’s current

summer operations would be unaffected by the new facility’s development and as part

of their memberships, summer only members would have access to the indoor courts

from May to September. For the purposes of this business case, the revenue from the

Centre’s winter season has been separated from TBCTC’s existing summer operations to

illustrate the financial implications of this addition to the Centre’s community service


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offering. The cost to operate the indoor facility has been projected on a full 12-month

basis.

In the winter season, the facility would operate 13 hours per weekday and 14 hours per

weekend day offering five prime time hours each weekday and eight prime time hours

each weekend day.

At full capacity, the operation would accommodate a total of 475 winter time tennis

players. For the purpose of these projections, we have assumed 200 adult members,

100 seniors, 75 juniors, 50 juvenile and 50 student members. This concept also assumes

non-member day pass holders.

It is assumed that the facility would reach 75% of its membership target in the first year

of operation, 95% in year two and be at capacity during year three.

Membership and court fees charges have been established based on TBCTC input and

pricing practices in the indoor tennis facility sector. Members of the TBCTC Board

expressed a desire to keep the membership and court fees at the new facility as

affordable and accessible as possible. Accordingly, the Board agrees with the following

proposed fee structure which are the basis for the business case revenue estimates:

adult membership - $400;

senior membership - $300;

junior membership - $250;

juvenile membership - $220;

student membership - $300;

prime time court fees - $12; and

non-prime time court fees - $8.

At full capacity, the operation would accommodate a total of 110 winter time pickleball

players. For the purpose of these projections, we have assumed 40 adult members, 50

seniors and 20 junior members plus day pass holders.

It is assumed that the pickleball section would reach 75% of its membership target in

the first year of operation, 95% in year two and be at capacity during year three.

Membership and court fee charges have been established based on the TBCTC Board in

a consultation with the Thunder Bay Pickleball Association. Both organizations wish to

keep the membership and court fees at the new facility as affordable and accessible as

possible. Accordingly, the Board agrees with the following proposed fee structure which

is the basis for the business case revenue estimates:


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adult membership - $350;

senior membership - $300;

junior membership - $220;

juvenile membership - $220; and

court fees - $2 per player per hour.

Based upon industry averages and at its member capacity, it is assumed that the facility

would be capable of court utilization ratios of 95% during prime time and 50% during

non prime time.

Program revenue is based on performances in other indoor venues as well as program

revenue production of TBCTC summer operation.

The management and staff model suggested for the TBIRC would have the Head

Professional be responsible for the operations. He/she would be supported by Assistant

Professionals that would supervise the facility in the absence of the Head Pro. The Head

Pro would provide facility coverage supervision for 40 hours per week at a wage rate of

$20.00 per hour. He/she would have several other duties such as preparing the facility

for the indoor winter season, marketing memberships, development of the instructional

and inter-club play programs, etc. The Assistant Professionals would staff the clubhouse

and support the Head Pro in the development of programs. The wage rates for

Assistant Pros are estimated at $15.00 per hour. Staff benefits are projected at 20% of

the entire payroll cost. Generally, the usual club summer staff complement will be

sufficient to supervise the indoor facility; however, to be conservative in these

estimates, the projections have been escalated by an additional 128 hours per month

(25% of the summer hours of operation) in case additional coverage is required.

All indoor staffing expenses are projected for the full year – although indoor supervision

and staff coverage will be complemented by the TCCTC’s existing staff budget that is

separate from these cost estimates.

The indoor facility’s instructional programs would be performed by the tennis/pickleball

professionals. Revenue produced from lessons and clinics have been based on industry

performance for indoor facilities although modified downward given TBCTC’s revenue

produced by its current outdoor lesson program. The cost of instruction is assumed to

be covered in the wages paid to professional staff.

Hydro, water and gas costs are estimated at $100,000 per year, which is consistent with

utility charges estimated by the bubble supplier but adjusted to reflect the 12-month

indoor environment and additional hydro costs for summer time air conditioning.


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Day to day operating costs including telephone, administration and supplies are

estimated at $32,000 while annual insurance costs are projected at $4,000.

The projections include a provision for a “court license fee” starting at $15,000 per year

to be paid to the City for the right to use of the 6 tennis courts. This allocation is simply

a “placeholder” because details of the Centre’s relationship with the City have not been

negotiated. However, it is common for not-for-profit or private sport court operators to

pay license fees for the right to exclusively use of publicly owned amenities.

All revenue and cost estimates have been inflated by 2% per year to account for

inflation.

10-Year Financial Forecast

Taking into account all of the preceding financial assumptions, the consultants prepared a detailed 10-year operating pro forma that presents a projected net operating performance of the proposed 6-court facility. A more detailed pro forma is presented in Appendix B. It is noteworthy that the assumptions and financial parameters presented here represent a very conservative outlook for the operations of the proposed facility. Thunder Bay Indoor Racquet Complex – Summarized Ten Year Financial Projections

YR 1 YR5 YR10

Revenue Tennis Memberships $ 120,063 $ 171,836 $ 189,721 Pickleball Memberships $ 28,050 $ 39,401 $ 43,501 Total Memberships $ 148,113 $ 211,237 $ 233,222 Tennis Court Fees $ 90,099 $ 97,526 $ 107,677 Pickleball Court Fees $ 18,705 $ 20,247 $ 22,355 Total Court Fees $ 108,804 $ 117,773 $ 130,031 Total Programs $ 44,000 $ 47,627 $ 52,584

Total Revenue $ 300,917 $ 376,637 $ 415,838 Expenses Labour $ 85,527 $ 92,577 $ 102,213 Utilities $ 100,000 $ 108,243 $ 119,509 Maintenance $ 6,000 $ 6,495 $ 10,824 Telephone $ 6,000 $ 6,495 $ 7,171 Admin. Supplies $ 8,000 $ 8,659 $ 9,561 Misc. Supplies $ 12,000 $ 12,989 $ 14,341 Court License Fee $ 15,000 $ 16,236 $ 17,926 Insurance $ 4,000 $ 4,330 $ 4,780

Total Expenses $ 236,527 $ 256,024 $ 286,325 Net Revenue $ 64,390 $ 120,613 $ 129,512


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A Dedicated Capital Reserve Account The 2015 Canadian Infrastructure Report Card project (CIRC) assessed the state of a host of municipal assets including sport and recreation facilities. Municipalities from across Canada provided detailed information about the physical status of each asset class and reported on their asset management strategies and funding models to sustain their infrastructure inventories. While it is intuitive that adequate reinvestment in municipal infrastructure stems deterioration of these important public assets, the 2015 CIRC found that rates of reinvestment are lower than targets recommended by asset management practitioners. Interestingly, storm water and sport and recreation infrastructure presented the largest gap in terms of current and recommended rates of reinvestment.3 The consultants have researched numerous capital repair and replacement strategies throughout Canada. As reported by the CIRC, capital reserves are becoming increasingly common as municipalities employ more sophisticated approaches for infrastructure management. This is because an adequately funded reserve would ensure the availability of sufficient capital to fund major facility element failures or to replace the facility at the end of its useful life. The TBCTC intends to establish a reserve fund to support the new indoor facility. This reserve would be funded from the facility’s operations, on an annual basis. Economic Benefits of Investing in Indoor Racquet Centre

There are local economic benefits that would arise from indoor racquet courts in Thunder Bay. These come in the form of new full and part time job opportunities such as facility managers, tennis instructors, team coaches and potentially pro shop or concession operators. Covered courts would also add to the number of local volunteer opportunities that are available to the community and strengthen the cohesiveness of the racquet community by providing year round playing opportunities. Across Canada, sport tourism generates more than three billion dollars a year – a number that is growing annually. Depending on the programming characteristics of the new venue, the new tennis facility could become the host venue for tournaments and events with a capacity to attract participants, their families, coaches, trainers and spectators. And of course, the multi-purpose nature of this facility means that even though it was developed primarily for tennis, the project would open the door for a variety of different events involving others sports. Staff reported to the Special Purpose Committee – Multi-use Indoor Sport Facility in September 2019, that the estimated economic benefits to the Thunder Bay CMA would be associated with the construction, annual operating, and tennis/pickleball event hosting opportunities of the new 6-court facility.

3 Informing the Future: the 2015 Canadian Infrastructure Report Card, the Canadian Construction Association

(CCA), the Canadian Public Works Association (CPWA), the Canadian Society for Civil Engineering (CSCE) and the Federation of Canadian Municipalities (FCM)


Appendix A

Capital Cost Estimates

Item

City Estimate (2019)

Trench Drain $70,000

Site Servicing Costs $75,000

Fencing $34,558

Fire Protection $50,000

Demolition/Patching $55,000

Professional Fees $200,000

Subtotal Site Development $484,558

Contingency (20%) $96,912

Total Site Development $581,470

Bubble membrane and inflation equipment $824,788

Grade Beam $373,600

Slabs - doors, vehicle and machinery $75,000

Air supported structure accessories $150,000

Existing Court Patching/Resurfacing $100,000

Accessible Washroom Construction $164,000

Snow Blower

Court Sweeper

Equipment $7,000

Subtotal Air Supported Structure $1,694,388

Contingency (10 - 15%) $254,158

Total Air Supported Structure $1,948,546

Total Site Dev, Courts and Dome $2,530,016

Building Permit $30,360

Engineering $202,401

Contracted Project Manager $50,600

Legal Fees (City) $100,000

Total Professional Fees $383,362

Estimated Project Costs $2,913,378

Inflation (@ 3%) $87,401

Project costs with inflation $3,000,779


Appendix B

Detailed 10-year Financial Performa

YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 Revenue

Tennis Memberships

Adult $ 60,000 $ 77,520 $ 83,232 $ 84,897 $ 86,595 $ 88,326 $ 90,093 $ 91,895 $ 93,733 $ 95,607

Senior $ 22,500 $ 29,070 $ 31,212 $ 31,836 $ 32,473 $ 33,122 $ 33,785 $ 34,461 $ 35,150 $ 35,853

Junior $ 14,063 $ 18,169 $ 19,508 $ 19,898 $ 20,296 $ 20,702 $ 21,116 $ 21,538 $ 21,969 $ 22,408

Juvenile $ 8,250 $ 10,659 $ 11,444 $ 11,673 $ 11,907 $ 12,145 $ 12,388 $ 12,636 $ 12,888 $ 13,146

Student $ 11,250 $ 14,535 $ 15,606 $ 15,918 $ 16,236 $ 16,561 $ 16,892 $ 17,230 $ 17,575 $ 17,926

Day Fees $ 4,000 $ 4,080 $ 4,162 $ 4,245 $ 4,330 $ 4,416 $ 4,505 $ 4,595 $ 4,687 $ 4,780

Total Tennis $ 120,063 $ 154,033 $ 165,164 $ 168,467 $ 171,836 $ 175,273 $ 178,778 $ 182,354 $ 186,001 $ 189,721

Pickleball Memberships Adult $ 10,500 $ 13,566 $ 14,566 $ 14,857 $ 15,154 $ 15,457 $ 15,766 $ 16,082 $ 16,403 $ 16,731

Senior $ 11,250 $ 14,535 $ 15,606 $ 15,918 $ 16,236 $ 16,561 $ 16,892 $ 17,230 $ 17,575 $ 17,926

Junior $ 3,300 $ 4,264 $ 4,578 $ 4,669 $ 4,763 $ 4,858 $ 4,955 $ 5,054 $ 5,155 $ 5,258

Day Fees $ 3,000 $ 3,060 $ 3,121 $ 3,184 $ 3,247 $ 3,312 $ 3,378 $ 3,446 $ 3,515 $ 3,585

Total Pickleball $ 28,050 $ 35,425 $ 37,871 $ 38,628 $ 39,401 $ 40,189 $ 40,992 $ 41,812 $ 42,648 $ 43,501

Mbsp. Total $ 148,113 $ 189,457 $ 203,034 $ 207,095 $ 211,237 $ 215,461 $ 219,771 $ 224,166 $ 228,649 $ 233,222

Court Fees Tennis $ 90,099 $ 91,901 $ 93,739 $ 95,614 $ 97,526 $ 99,477 $ 101,466 $ 103,495 $ 105,565 $ 107,677

Pickleball $ 18,705 $ 19,079 $ 19,461 $ 19,850 $ 20,247 $ 20,652 $ 21,065 $ 21,487 $ 21,916 $ 22,355

Total Court Fees $ 108,804 $ 110,980 $ 113,200 $ 115,464 $ 117,773 $ 120,129 $ 122,531 $ 124,982 $ 127,482 $ 130,031

Lessons, Leagues, Clinics and Round Robins

Programs $ 44,000 $ 44,880 $ 45,778 $ 46,693 $ 47,627 $ 48,580 $ 49,551 $ 50,542 $ 51,553 $ 52,584

Total Annual Revenue Total

Revenue $ 300,917 $ 345,318 $ 362,012 $ 369,252 $ 376,637 $ 384,170 $ 391,853 $ 399,690 $ 407,684 $ 415,838


Expenses

Payroll

Manager $ 24,000 $ 24,480 $ 24,970 $ 25,469 $ 25,978 $ 26,498 $ 27,028 $ 27,568 $ 28,120 $ 28,682

Pros $ 47,273 $ 48,218 $ 49,182 $ 50,166 $ 51,169 $ 52,193 $ 53,237 $ 54,301 $ 55,387 $ 56,495

Ben. (20%) $ 14,255 $ 14,540 $ 14,830 $ 15,127 $ 15,430 $ 15,738 $ 16,053 $ 16,374 $ 16,701 $ 17,035

Total Labour $ 85,527 $ 87,238 $ 88,982 $ 90,762 $ 92,577 $ 94,429 $ 96,317 $ 98,244 $ 100,209 $ 102,213

Operating Costs

Utilities $ 100,000 $ 102,000 $ 104,040 $ 106,121 $ 108,243 $ 110,408 $ 112,616 $ 114,869 $ 117,166 $ 119,509

R & M $ 6,000 $ 6,120 $ 6,242 $ 6,367 $ 6,495 $ 10,000 $ 10,200 $ 10,404 $ 10,612 $ 10,824

Telephone $ 6,000 $ 6,120 $ 6,242 $ 6,367 $ 6,495 $ 6,624 $ 6,757 $ 6,892 $ 7,030 $ 7,171

Admin. $ 8,000 $ 8,160 $ 8,323 $ 8,490 $ 8,659 $ 8,833 $ 9,009 $ 9,189 $ 9,373 $ 9,561

Misc. Supplies $ 12,000 $ 12,240 $ 12,485 $ 12,734 $ 12,989 $ 13,249 $ 13,514 $ 13,784 $ 14,060 $ 14,341

City Fee $ 15,000 $ 15,300 $ 15,606 $ 15,918 $ 16,236 $ 16,561 $ 16,892 $ 17,230 $ 17,575 $ 17,926

Insurance $ 4,000 $ 4,080 $ 4,162 $ 4,245 $ 4,330 $ 4,416 $ 4,505 $ 4,595 $ 4,687 $ 4,780

Total Operating $ 151,000 $ 154,020 $ 157,100 $ 160,242 $ 163,447 $ 170,092 $ 173,494 $ 176,963 $ 180,503 $ 184,113

Grand Total Expenses Total $ 236,527 $ 241,258 $ 246,083 $ 251,004 $ 256,024 $ 264,520 $ 269,811 $ 275,207 $ 280,711 $ 286,325

Net Annual Financial Performance

Net $ 64,390 $ 104,060 $ 115,929 $ 118,248 $ 120,613 $ 119,649 $ 122,042 $ 124,483 $ 126,973 $ 129,512

Documents

Thunder Bay Indoor Racquet Centre