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By E. Eksteen

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Athletes, coaches, officials, managers, spectators, and even innocent bystanders can be injured by balls, slippery ground, ill-fitting equipment, lightning, and many other hazards. You’ll need to think about ways to manage risks in your club and the best way is to have a comprehensive risk-management program, which will be discussed in this chapter. 2 What is risk and risk management Before we define what risk management is, we need to look at what risk is. Risk: “Risk refers to the probability of loss, either to people’s well-being or to their property” As a sport manager you will want to manage risk for three groups: 1.

Debits are the revenues generated. People owing your club money are called debtors, for example an organization who rents your facility for an event. Credits are the expenses that have been budgeted for and must be paid. People your club owes money to are called creditors, for example the municipality you owe water and electricity to. The financial statements discussed in this section are the balance sheet and the income statement. These statements provide an overview of the club’s financial condition in the short and long term.

Com 39 Click on the ad to read more Sport Management Finance Management STEP 5: Draw up a letter of agreement ¾¾ Once you have a sponsor, draw up a letter of agreement to specify the terms of your business relationship ¾¾ Include the following elements in this letter: ƒƒ Date of the agreement ƒƒ Names and addresses of your club and the sponsor ƒƒ The event or activity to be sponsored ƒƒ The time period for the sponsor ƒƒ The specific rights the sponsor has ƒƒ What the sponsor agrees to do and when ƒƒ What happens if the event is cancelled ƒƒ Any other termination clauses STEP 6: EVALUATION AND FEEDBACK ¾¾ Feedback must take place continuously between the sponsor and the organisation that is sponsored; to make sure both parties is satisfied with the processes.

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Sport Management by E. Eksteen


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