Sport Coaching Businesses: Turnover, Startup Costs & Profits (2024)
With a market size of $14.9 billion in 2023, the US sports coaching industry has been growing at a CAGR of +3.6% over the past five years. But with over 171,000 sports coaching businesses vying for a piece of the pie, what does this mean for sports coaching businesses? How much can a sports coaching business expect to earn, and what are the costs involved in setting one up?
In this article, we’ll break down the market segments, average revenues, startup costs, and profitability metrics for the sports coaching industry.
Using data from industry sources and insights from over 260 franchised sports coaching centers, we provide a comprehensive financial overview of the sports coaching industry in 2023. Dive in to discover the potential of running a sports coaching and the factors that influence its profitability.
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US Sports Coaching Industry Overview
As per IBIS, the sports coaching industry in the US represented revenue of $14.9 billion in 2023 and is expected to grow to $17.1 billion over the next five years. Sports coaches and camps will continue to perform strongly in the next five years. Intense competition for college recruitment has created huge revenue opportunities for sports camps hosting college showcase camps and tournaments.
Sports camps represent the largest share ($8.2 billion), followed by recreational sports camps ($4.1 billion), and Private athletic instruction ($2.7 billion). Yet, with over 171,000 sports coaching centers across the country, the competition is also fierce.
What is the average turnover of a US sports coaching Industry?
Using data from more than 260 franchised sports coaching centers, a sports coaching business earns $610,500 in gross revenue per year on average.
Students aged 13 to 18 years ($7.9 billion) represent a major market segmentation of the US sports coaching Industry followed by students aged under 13 years ($7.0 billion).
Yet, not all US sports coaching has the same yearly revenue. Logically, some will earn more than others because of many factors like location, popularity, per capita disposable income, number of adolescents aged 10-19, participation in sports, and demand from racing and individual sports.
The average salary pay for a Sports Coach is $51,912 per year in the US. Salary ranges can vary widely depending on many important factors, including education, certifications, and the number of years you have spent in the profession.
How much does it cost to start the US sports coaching Industry?
On average, it costs between $303,000 and $679,000 to open a sports coaching center.
This includes various costs such as leasehold improvements, architectural fees, rent/real estate fees, furniture, fixtures, equipment, computer & decor, licenses, permits and deposits, legal accounting, project manager/owner representatives, etc.
- Leasehold Improvements (75.0%): construction and / or remodelling costs to build or renovate the facilities, architectural fees, etc.
- Rent and real estate fees (2%)
- Equipment (5%): office equipment, furniture, fixtures, computer and decor.
- Business Licenses, permits, and deposits (1.3%)
- Legal & accounting (1%)
- Project Manager/Owners representatives (1%)
- Grand Opening Marketing (2.2%): grand opening marketing expenses as well as local advertising.
- Working capital (3.5%): training, water tap fees, insurance, etc.
- Additional Funds (9.0%): additional fund for 3-months is required.
How profitable is the Sports Coaching industry?
There are various recurring costs involved in running the Sports Coaching industry. The major expenses include wages and payroll including administrative and staff payroll costs. Brief details of expenses are as below:
- Wages and Payroll Cost (40%-45% sales): Wages including compensation for teachers and coaches, administrative staff, and management, account for a substantial portion of revenue.
- Facility lease (4%-5%): includes rent.
- Equipment expenses (1%-2%): Equipment purchases include training equipment such as balls, pads, weights, training ads, and machines. Purchase costs vary by sports specialty and program size.
- Other costs (20%-25%): Office utilities and supplies, marketing costs, etc. Administrative costs weigh on sports coaches’ profit. Coaches may need specific licenses from accredited organizations to participate in events or gain customer support.
| Profit and loss | Amount | % of revenue |
|---|---|---|
| Revenue | 610,516 | 100% |
| Staff wages and payroll | (269,576) | 44% |
| Facility Lease | (29,222) | 5% |
| Equipment and gear expenses | (9,517) | 2% |
| Insurance | (5,291) | 1% |
| Other Operating expense | (125,782) | 21% |
| EBITDA | 171,129 | 28% |
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Fully editable 30+ slides Powerpoint presentation business plan template.
Private School Financial Model Template | Excel Spreadsheet
Download an expert-built 30+ slides Powerpoint business plan template
