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Author Topic: Is curling a business?  (Read 1994 times)
JohnMinnaar
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« on: November 25, 2008, 02:46:54 PM »


Following a few suggestions in that direction during the progress of Manners, I tried to find the evidence that curling is a business. It's difficult.

1. Building a curling rink requires substantial funding from sources other than investors. Although there are rinks that are privately owned, nowadays they are built with public money that will not be repaid.
2. As curling rinks age, money from donations or public sources, not to mention tremendous fund-raising efforts by curlers, is required to replace or repair developing problems.
3. Most curling activity relies on the services of volunteers.
4. Curling is seriously underfunded, with ice fees too low for reinvestment. Compare this to golf clubs where fees do cover reinvestment and members are required to provide the shortfall.

Will this ever change? I welcome your comments!
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Hibby
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« Reply #1 on: November 25, 2008, 02:50:19 PM »

Profit, loss, overheads, tax, owner, manager, CEO.

All these words point towards the fact that a rink and the royal club have to be run as a business. These things have to be considered, and they have to be considered in the same way that a business does. That's the only way an ice rink can make money to expand the sport, or expand the owner's waistline.

Thus, curling must be a business, if it is being run as a business.
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JohnMinnaar
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« Reply #2 on: November 25, 2008, 02:58:50 PM »

Running it as a business does not mean that it is a business. The RCCC is a non-profit company limited by guarantee. The NCA is to be run as a charitable trust. Many rinks are council owned (and subsidised).
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fermerfaefife
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« Reply #3 on: November 25, 2008, 05:39:16 PM »

take care with the terminology - non profit ?

I will say that the RCCC is a non-profit distributing company - not non profit making. It should be run as a business, as should the rinks. The profits from that business are reinvested or distributed within the sport. The bigger the profit, the more investment in the sport can take place.

As Hibby rightly says, things have to be run as a business in order to expand the sport and indeed for rinks to be long term viable.
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JohnMinnaar
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« Reply #4 on: November 25, 2008, 06:08:39 PM »

That's fine, fff, but the money used to expand the sport comes mostly from sportscotland, not from the members. Modern rinks might have to function on the business principle, but does that make curling a business? What I'm trying to understand is whether curling is something other than a business, although its parts may well function on business principles. Churches function as businesses, but they are not businesses.

The problem is this: To build a rink, you need money. Investors will invest if they can make a profit, which is clearly not a good option for them. So public money builds curling rinks and so make the rules by which they're built and run. I'm very happy for any group, including your own, that can find such funding and build their rink, but even Fife CT is set up as a charitable trust and not a business.
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Robin Copland
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« Reply #5 on: November 25, 2008, 06:33:34 PM »

Sorry - I am with fff here and we need to absolutely clear.  Any business, even publicly funded loss-making businesses like CalMac, or council-run sports facilities, or bowling clubs or curling rinks, need to be run according to business principles.  They need to be run prudently, either to enhance the profit (hopefully for investment) or reduce / manage the losses to predicted and budgeted levels.

I am not aware of any rink in the land that makes the kind of profit that would be needed to service a big loan.  So either the owners need to take that on board and accept those costs as part of an overall bigger building package (the rink is part of a council-run sports complex that is the beneficiary of public funding, for example, or has been built onto a hotel as a way of improving the hotel facility and thus increasing its business), or there is a kind sponsor somewhere willing to under-write the annual losses, or...

or the rink will eventually shut down for lack of funds!

There is no point in getting all dewy-eyed about it.  If there is a better outlet for investing funds, eventually the law of the jungle will prevail.  Nobody owes curling anything in that regard.  We have a number of fine facilities in Scotland at the moment and a number of caring owners too.  If they are imprudent in their rink investments, or if the business tails off so that the rink becomes a financial millstone - well, they will shut it down.

Curling rinks need to be run according to business principles.  Period,  If they are not - they will close.  Many already have.

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Dunoonrock
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« Reply #6 on: November 26, 2008, 04:11:54 AM »

JM - any ice rink or even a curling club has to run on a business footing. If a curling club was not correctly run the members would soon ask why and create hell.
The RCCC was always taken to task by the members at the AGM about its finances and as time has gone by it has become bigger and more professional about this. Duffy did a great job setting this up.
If it did not do this, producing business plans etc, sportscotland would not even look at it for grants and help. 
Similary Murrayfield (and others) are run as a business or else we would have no ice in the Lothians. Ice rinks for curling are not charities or for the benifit of icemen wanting to make perfect ice all the time and at each session.
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JohnMinnaar
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« Reply #7 on: November 26, 2008, 08:53:32 AM »

Okay, there is agreement here, curling rinks need to be run according to business principles. I agree too, it's the only way, never mind how the rink gets built in the first place.

What does this mean? A business – any business – has to provide a product to the customer at a price that the customer is prepared to pay. Lower the quality of the product and the price to the cutomer will have to be lowered too, or he will wisely take his business elsewhere. If there is nowhere else for him to go, he will pay the price for the lesser product as long as the limit is not exceeded. If the price is so low that the business makes a loss, the price has to go up, and the limit will be exceeded, so the customer deserts the rink and takes up bowls instead.

Ice rinks for curling are not charities or for the benefit of icemen wanting to make perfect ice all the time and at each session.

That's a bold statement, considering that ice technicians are the people who provide the product upon which the business is based. If they are competent and provide good curling ice for every game, the customers will be happy. If they exceed the limit of quality on the wrong side the customers will go, and the rink will eventually close. Perfect ice for every game is seldom achievable, but competent curling-ice technicians know exactly where the limit is and how to achieve it, and good ice according to WCF specification is achievable, every day, for every game, and will cost less to maintain than poor ice on an uneven surface. This is pure business sense: quality that can be sustained, at a price curlers can afford.

So who says we should pay good money for poor, inconsistent ice? I suggest only those who want to rip us off by providing an inferior product (because there is nowhere else to curl), or who cannot provide better ice (because they say the building can't do it, or because they don't know how to do it), or because the status quo of less cost and the same income suits them very well. This is not business, this is exploitation.

Maybe Wee Eddie can tell us the effect this will have in the food business!
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Zuschauer
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« Reply #8 on: November 26, 2008, 05:10:59 PM »

This is developing into an interesting discussion. I don't know what the situation in Scotland is, but I'll try to give you an impression of how Swiss curling rinks sustain themselves.

Should curling rinks be run according to business principles?

My answer is: Yes, to a certain extent. Measures include for example:

  • - ads at the walls of curling rinks bring in some money (to start with: if the rink is big enough, there's bound to be members who have a business of their own or know people who may be interested in putting up an ads during the season)
  • - alternative use of rinks during the off-season should be considered and, when building new rinks, already be part of the planning. Alternative use can for example be: Facilites for exhebitions, possibly for functions as well (if there is a restaurant attached or a big enough kitchen which a catering staff could use)
  • - corporate curling has to be advertised and promoted on a large scale. Whenever there is a free rink (afternoon or evening), efforts should be made to hire the rink out (including an instructor) to companies who want to have a team event or something like that. If possible, work out a deal with the club restaurant / a nearby restaurant to give them diner after the curling is done.
    This effort may go as far, as sheets set aside for corporate curling during the evening (depending on the size of the rink and the amount of curlers playing). Instructors are recruited from the local curling club and get paid a nominal "thank you for your time" sort of thing. There's bound to be retired curlers around who will volunteer their time in the afternoon for this. Also university students who curl will jump at the chance of lifting their pocket money while doing something they enjoy!
  • If possible, have a club restaurant (self service or staffed). Given the opportunity, many teams and single players will stay for a couple of pints after the game and a sandwich (or even a whole meal) and thus create a surplus which can go towards the cost of running the rink as well.

To do all this, normally the rink in Switzerland will be a company/trust/some other sort of body, which is owned by the club (or clubs as we often have several per rink). While the club does own the rink, it does also pay rent for the sheets it uses (altough much less than a corporate curling event would pay). In some clubs, curlers can use free sheets anytime they want for free, in others they will have to pay a fee, depending on the setup of the rink.
Same applies for tournaments, where the rinks charge the tournament organisator fees for the sheets.

So I have no idea wether this is all "old stuff" for you guys, or wether there is anything new to it.Matter of fact is simply, that a curling rink can neither pay a full-time ice technican over a longer period of time (e.g. several years), nor sustain the curling rink when it's working up a constant deficit. At the same time, I don't know any rinks who can thrive on the ice fees paid by curling club members alone (because the fees would be too high and therefore too few curlers would still play). So the rink needs to find alternative means of earning money (ad, corporate curling, restaurant, etc) and renting out free sheets.

The goal of all this alternative money making is simple: To provide good curling ice at a reasonable (as low as possible) price for the members of the local curling club(s) and for tournaments to be held at the rink.
At the end of the day (season), the rink should have made enough profit to invest in necessary maintenance/renewal work and (in good seasons) have built up a small reserve for the future.

So yes, rinks should be run as a business, but it should also be kept in mind, that while the "main customer" may be the curling club, it should also be the "main benefactor" by benefitting of the low ice-fees which were made possible by the way the rink was run!


cheerio
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Robin Copland
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« Reply #9 on: November 26, 2008, 07:20:45 PM »

A really interesting post, Zuschauer and one that ice rink owners / developers might want to have a look at.

I seem to remember that Gogar Park used to have an annual booking for budgerigars, or some such nonsense.  I think the deal was that, if you owned a budgie, you would bring it along so that other budgie owners could presumably look at it and marvel at the exciting words that your budgie said, compared to theirs.

This strikes me as a spectacular waste of anyone's time but if it floats your boat, I suppose and it is somewhat healthier a hobby than necrophilia, for example.

It presumably meant that there was a bit of revenue for the ice rink in the summer, so that would have been a good thing, no doubt.

Fat lot of good it did though!
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« Reply #10 on: November 26, 2008, 07:26:06 PM »

Don't be too quick to knock necrophilia - nobody gets hurt and they never complain   Roll Eyes
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Robin Copland
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« Reply #11 on: November 26, 2008, 10:00:34 PM »

Tee-hee Smiley!

Don't suppose anyone else but a vet would know what it was!
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JohnMinnaar
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« Reply #12 on: November 27, 2008, 07:43:13 AM »

Zuschauer makes some excellent points, most of which are already in place here. The essential difference between Switzerland and Scotland is the social structure, with the cantonal system and democracy very strong over there. The result is that the rinks tend to be smaller with fewer curlers, but there are many more of them, and with easy access almost anyone can reach a curling rink. Profitability is a challenge with so few members, but they do manage to achieve it and keep their rinks going, and like many other countries "volunteer" ice making is not unusual. Curling there is very much a social thing, while here it is becoming so centralised that the social side has suffered.

Zuschauer, my wife is half Swiss, her mother's family have a vineyard not too far from Cully, so we go there when we can and always delight in the country and its people (not to mention the attention to quality and responsibility!). Maybe I shoulkd find a Swiss rink that needs an ice maker! Is Stefan still yours?
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Zuschauer
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« Reply #13 on: November 27, 2008, 08:43:30 AM »

Haha, well I'm sure people would jump at the chance to get a good icemaker from the motherland of curling to fill up a free spot Wink
But I have to disappoint you, we are still very happy with Stefan, so the Berne rink isn't an option. In fact, icemaking has very much improved over the last couple of years and with people like Armin in Basel, Mike in Biel, Réne in Thun and Stefan in Berne, providing excellent (and swingy) ice.
In fact I know of three rinks to be built over the coming two years to replace the existing ones (a 4 sheet rink in Adelboden, 4 sheets I believe in Uzwil and 5 sheets in St.Gallen) so we are very lucky in that there seems to be enough money around to keep the rinks open and running.

You're right though about the social side of curling. This is still very very strong over here in Switzerland (every club curling and even a lot of junior practice sessions are followed up by a drink at the rink's restaurant). In fact, at least in Berne there is quite a number of curlers who will come down to the rink just for a pint of beer occassionally and not even go on the ice at all (for lack of space, time or because they just don't feel like it at the moment). And that's probably one of the secrets why even the small rinks manage to stay in business...
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strathydoug
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« Reply #14 on: December 08, 2008, 09:55:43 AM »

I'm still laughing at Necrophilia
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Doug
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