PROJECT REPORT

Millennium Sports Club

Sarova Towers, Thakur Village, Kandivali East

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Table of Contents
1) Executive Summary…………………………………....
2) Project At a Glance…………………………………….
1. Name and Address of Unit
2. Details of Unit
3. Name and Address of Promoters
3) Project Feasibility Ratio………………………………
4) Project Feasibility Graph………………………………….
5) Business Description………………………………….
6) Promoters Details………………………………….
7) Product/ Services………………………………….
8) Market Potential & Strategy…………………………
9) Sales & Marketing strategy…………………………
10) Risk & Mitigation Strategy…………………………
11) Project Cost…………………………
12) Working Capital Computation…………………………
13) Annual Sales/ Revenue…………………………
14) Application of Funds…………………………
15) Means of Capital…………………………
16) Profitability Statement…………………………
17) Balance Sheet…………………………
18) Repayment of Term Loan…………………………
19) Conclusion…………………………

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Executive Summary
This project is about opening a new sports club in Mumbai city at
Sarova, Kandivali. Millennium Club is a premier sports club
specializing in a diverse range of athletic activities. Our club
offers a unique and comprehensive sports experience, catering to
enthusiasts of all ages and skill levels. With state-of-the-art
facilities and expert coaching staff, Millennium Club aims to
foster a passion for sports and provide a platform for skill
development. From professional training programs to recreational
leagues, our offerings encompass various sports to ensure a
dynamic and engaging environment. As we strive to become a
hub for athletic excellence, Millennium is committed to
promoting health, wellness, and a sense of community through
the joy of sports. Join us on this exciting journey of fitness,
camaraderie, and success at Millennium Club.

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Project At a Glance

Name & Address of Unit

Millennium Sports Club
Sarova Towers, Thakur Village, Kandivali East

Details of Unit
Email- [email protected]
Phone- XXXXX XXXXX
Constitution- Pvt Ltd
Number of Employees- 25
Total Cost of Project-75000000
Fixed Capital-74306660
Working Capital-500000
Total Bank Loan-30000000
Promoters Contribution-45500000

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Name & Address of Promoters
Name : Mr. XYZ
Address : 404/B, ABC Apartment, Mumbai
Phone : 9090
Date of birth : 12/01/1989
Gender : Male
Category : General
E-mail : [email protected]

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Project Feasibility Ratio

Year 1 Year 2 Year 3

Current Ratio 1.76 2.59 1.8

Debt Equity Ratio 0.59 0.44 0.28

ROI 9.09 10.07 9.74

Net Profit to Sales 15% 15% 15%

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Project Feasibility Graph
450

400

350

300

250

200

150

100

50

0
I} Revenue From II} Other Incomes (Food III} Expenses IV} Profit
Operations Court)

Year 1 Year 2 Year 3

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Business Description

Millennium Sports Club to become a remarkable institution,

providing an extensive array of top-notch sports facilities. The
idea of this project came to the mind because there is lack of
availability of a sports club at that region which can provide
citizens with different games like turf, kids play area, gym and
yoga. The main intention of this sports club is to provide citizens
with different games and increase talent in those games, which a
nation like India lacks.
Swimming Pool, Cricket Turf, Volleyball Turf, Football Turf,
Table Tennis, Throw ball Court, Gym, Yoga, Kids Play Area are
some of the major sports training facilities available at present.

MSC is not just limited to these sports; it also collaborates with

academies to provide specialized training in various disciplines.
The club has plans to introduce additional sports like
Taekwondo, Shooting Range, Kabaddi, and more in the near
future.

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Promoter’s Details

The promoter of the proposed venture is Mr.: XYZ. He is having

an experience of 6 years District Sports Club.

Name : Mr. XYZ

Address : 404/B, ABC Apartment, Mumbai
Phone : 9090
Date of birth : 12/01/1989
Gender : Male
Category : General
E-mail : [email protected]
Aadhar No :2345689123
PAN :BBBBXX22
Sex (tick) : Male/
Age & DOB : 34, 12-01-1989
Qualification : M.Com
Experience details : Manager at District Sports Club, Mumbai

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Product/ Services
➢ Cricket Turf
➢ Football Turf
➢ Volleyball Turf
➢ Table Tennis
➢ Indoor Games
➢ Kids Play Area
➢ Gym
➢ Yoga
➢ Swimming Pool
➢ Food Court (Outsource)

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Market Potential & Strategy
INDUSTRY OVERVIEW:
• The sports club industry in India is a growing sector that offers
various opportunities for business and social development. According
to one report, the market size of the sports industry in India was over
77 billion Indian rupees in 2018, and is expected to reach 118 billion
rupees by 2023, with a compound annual growth rate of more than
7%.

• A sports club business is a type of business that provides sports-

related programs and services to customers, such as coaching,
training, equipment, facilities, and events. Sports clubs can also target
different segments of the market, such as children, adults, seniors,
professionals, etc.

• Some of the key factors driving the growth of this industry is the
increasing popularity of sports such as cricket, football, kabaddi,
badminton, and others, especially among the youth and urban
population and the government initiatives and policies to promote
sports infrastructure, talent development, and participation at various
levels.

• The sports club industry in India faces some challenges like the lack
of adequate and quality sports infrastructure, equipment, and facilities
in many parts of the country, the high cost and low availability of
skilled coaches, trainers, and support staff for sports development and
management.

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• The sports club industry in India has a lot of potential and scope for
further growth and innovation, as the country has a large and diverse
population, a rich and varied sports culture, and a dynamic and
competitive sports environment.

TARGET AUDIENCE:
The Indian market for sports and fitness clubs is growing rapidly, as
more and more consumers are becoming aware of the benefits of
physical activity and wellness. However, not all consumers have the
same needs and preferences when it comes to choosing a sports and
fitness club. Therefore, it is important for businesses to identify and
target the segments that are most likely to use their services.

Some of the segments that can be targeted by sports and fitness club
businesses are:

• Consumers who enjoy watching and playing various sports, either as

a hobby or as a competitive activity. They are likely to have a high
level of physical activity and fitness, and may seek out sports and
fitness clubs that offer a variety of sports options, such as cricket,
football, badminton, tennis, etc. They can be reached through sports
magazines, websites, social media, and influencers.

• Consumers who are focused on improving their health and wellness,

and who follow a regular fitness regime. They are likely to have
specific fitness goals and preferences, and may seek out sports and
fitness clubs that offer personalized and professional services, such as
personal trainers, nutritionists, fitness trackers, etc. They can be
reached through health and fitness magazines, websites, apps,
podcasts, and blogs.

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• Consumers who view sports and fitness as a part of their lifestyle,
and who seek out sports and fitness clubs that offer a holistic and
premium experience. They are likely to value the social and
recreational aspects of sports and fitness, and may seek out sports and
fitness clubs that offer amenities such as spas, cafes, lounges, etc.
They can be reached through lifestyle magazines, websites, events,
and celebrities.

• Consumers who have a keen interest in sporting events in their

communities and cities. They are likely to be fans of specific sports or
teams, and may participate in sports-related activities themselves.
They can be reached through sports media, sponsorships, and
partnerships with sports venues.

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Sales & Marketing Strategy
Following Strategies will be followed for sales & marketing
• Online Presence- we have established a user-friendly website and
active social media channels to engage fans and attract sponsors.
• Partnerships- We have made partnership agreements with nearby
schools, colleges to have their sports practice at our club. Also, we
have partnered with reputed coaches to conduct their coaching
sessions at our club.
• Ticketing Strategy- Implementing tiered ticket pricing, early bird
discounts, and bundle offers to drive ticket sales. Considering
loyalty programs for season ticket holders and membership
holders.
• Local Community- Engage with the local community through
outreach programs, youth clinics, and collaborations with societies
to build a strong local fan base.
• Influencer Marketing- Collaborated with fitness and sports
influencer to expand your reach and credibility.
• Game day Experience- Enhance the overall game-day experience
with promotions, fan zones, and entertainment to attract more
spectators
• Feedback Mechanism- Establish a feedback mechanism to
understand fan satisfaction and areas for improvement,
demonstrating responsiveness to fan needs.

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Risk & Mitigation Strategy
A risk management plan is a document that outlines how a sports club
identifies, assesses, prioritizes, treats, monitors, and reviews the risks
that may affect its operations, finances, or reputation.

The sports club business faces various potential risks, including:

✓ Athletes facing injuries may lead to lawsuits, particularly if
negligence is alleged. Adequate insurance coverage and stringent
safety protocols are crucial to mitigate this risk.
✓ Sports clubs heavily rely on revenue streams like ticket sales,
sponsorships, and merchandise. Economic downturns, reduced fan
attendance, or loss of key sponsors can strain the club’s finances.
✓ Instances of player misconduct, such as legal issues or behavioral
problems, can harm the club’s image. Implementing codes of conduct,
thorough background checks, and clear consequences are essential.
✓ Failure to comply with league regulations, player contracts, or
salary caps can result in fines, points deductions, or expulsion. A
dedicated legal team is vital to navigate complex sports regulations.
✓ Negative publicity, whether from player controversies or
organizational issues, can harm the Club’s standing. Proactive public
relations strategies, crisis management plans, and transparent
communication are essential.
✓ Outdoor sports clubs are vulnerable to weather disruptions,
affecting match schedules and fan attendance. Adequate contingency
plans, insurance coverage, and facility maintenance can help mitigate
these risks.
✓ Relying on technology exposes clubs to cyber threats and system
failures. Robust cyber security measures, regular audits, and

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 contingency plans are necessary to protect sensitive data and ensure
smooth operations.
✓ Intense competition for fan engagement, sponsorships, and talented
players requires clubs to continuously innovate. Strategic marketing,
fan engagement initiatives, and effective talent scouting are essential
for staying competitive.

Mitigate The Risk:

There are different ways to mitigate the risks involved in sports club
business, depending on the type and severity of the risks. Some of the
common methods are:

• Avoid: This means eliminating the risk entirely by not engaging in the
activity or situation that poses the risk. For example, a sports club
may decide to cancel an event if the weather conditions are too
hazardous, or to not offer a certain sport that is too risky or costly to
insure.
• Reduce: This means taking proactive measures to reduce the
likelihood of a risk occurring or the consequences should an event
occur. For example, a sports club may modify or change the rules of a
game, use protective equipment, train and supervise staff and
volunteers, or back up electronic data and have a copy stored off-site
to limit the impact in the event of on-site data loss.
• Transfer: This means shifting the responsibility or liability for the
risk to another party, such as an insurer, a contractor, or a partner. For
example, a sports club may purchase adequate insurance coverage,
sign contracts with clear terms and conditions, or collaborate with
other organizations to share resources and expertise.
• Retain: This means accepting the risk and its consequences, and
being prepared to deal with them. For example, a sports club may set

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 aside a contingency fund, have an emergency plan, or communicate
the risks and expectations to the participants and members.

The choice of the best method to mitigate a risk depends on the specific
circumstances and the cost-benefit analysis of each option. A sports club
should consult with experts, such as lawyers, accountants, or risk
management consultants, to help them make informed decisions and
implement effective strategies. A sports club should also monitor and
review the risks and the mitigation methods regularly, and make
adjustments as needed.

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Project Cost
Sr. no. Item Amount Rs
1 Land 50000000
2 Building 15000000
3 Garden Construction 300000
4 Water Fountain 60,000
5 Camera 90,000
Air Conditioner 767,160
Furniture 1,000,000
6 Computer 720000
7 Cricket:-
Bat 7,200
Ball 900
Stumps 6,000
8 Table Tennis:-
Table 31,000
Ball 840
Racket 4,000
9 Football:-
Ball 2,000
Goal Post 12,000
Synthetic Grass 80,000
10 Volleyball:-
Ball 1,500
Poll 19,000
Net 2,400
11 Gym Equipment 6000000
12 Swimming Pool:-
Pump 200000
Chlorinator 55,000
Pool Cleaner 40,000
Pool Cover 8,500
First Aid Kit 10,000
Testing Kit of Pool PH Level 2,500
13 Indoor Games:-

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 Carrom 18,000
Chess 4,500
Pistol Shooting Game 8,000
Billiards 200000
Sudoku 2,000
14 Kids Play:-
Slides 14,000
Swings 8,000
Climbing Stones 4,000
Tunnels 2,500
Trampoline 10,000
15 Yoga Mat 9,000
16 Seating Benches 300000
Total Amount 75000000

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Working Capital Computation

Item Amount (₹)

Working Expenses 5,00,000
Total 5,00,000
Own Contribution 5,00,000

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Annual Sales/ Revenue
Product/ Service Rate(₹) Hours Amount (₹)
Cricket Turf 2500 2400 60,00,000
Football Turf 2500 2400 60,00,000
Volleyball Turf 2500 960 24,00,000
Kids Play Area 1500 1400 21,00,000
Indoor Games 1000 1600 16,00,000
Referee Fee 1000 500 5,00,000
Total 1,86,00,000

Membership Plan
Plans Rate(₹) Estimated sales Amount (₹)
Silver Plan 20,000 25 5,00,000
(Quarterly)
Golden Plan 30,000 50 15,00,000
(Half Yearly)
Diamond Plan 40,000 50 20,00,000
(Annually)
Family Plan 1,50,000 40 60,00,000
(6 person-
Annually)
Total 1,00,00,000

Food Court (Outsource)- ₹14,00,000

Total Revenue- ₹3,00,00,000

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Application of Funds

Funding Request

SR
No. Particulars Amount
1 Land 25000000
2 Building 3000000
3 Gym Equipment’s 2000000
Total 30000000

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Means of Capital

Sr No. Item Amount

1. Promotors Fund 45500000
2. Term Loan 30000000

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Profitability Statement

Millennium Sports Club

Estimated Statement of Profit and Loss for the Year Ending 31st March 2023
[RS. In Lakhs]
Year Year Year
Particulars 1 2 3
I} Revenue From Operations 286 343.2 382
II} Other Incomes (Food Court) 14 16.8 18
III} Total Income 300 360 400
IV} Expenses
Gym Equipment’s Maintenance 4 5 6
Insurance 5 6 8
Security Expenses 11 15 18
Support Staff Wages 15 18 20
Admin Staff Salary 28 35 38
Marketing Staff Salary 22 30 32
Repair and Maintanance of Club 7 8 10
Depreciation 24 24 24
Professional Trainer Fees 17 20 22
Rent 23 25 28
Electricity 20 24 26
Water Charges 4 5 8
Office Equipment’s and Utility 7 10 12
Printing and Stationery 4 6 8
Tennis Court Maintenance 5 6 8
Swimming Pool Maintenance 5 6 8
Football Court Maintenance. 3 6 8
Cricket Court Maint. 8 10 14
Volleyball Court Maint. 7 8 10
Interest on Loan (10%) 30 27 24
Other Expenses 6 10 8
Total Expenses 255 304 340

V} Profit for the Year [III-IV] 45 56 60

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Balance Sheet
Millennium Sports Club
Estimated Balance Sheet as on 31st March 2023
[RS. In Lakhs]
Particulars Pre Operative Peroid Year 1 Year 2 Year 3
I} Liability
1) Promotors Fund
a. Capital 455 455 455 455
b. Reserves and Surplus 0 20 66 116
2) Non Current Liability
a. Term Loam 300 270 240 210
3) Current Liability 0 25 35 45

Total 755 770 796 826

II} Assets
1) Non Current Assets
a. Tangible Assets 743.0666 719.0666 695.0666 671.0666
b. Capital Asset Work in Progress 36 81
2) Current Assets
a. Equipment 6.9334 6.9334 8 10
b. Cash 5 5 10.1334 11.9334
c. Outstanding Subscription 0 39 46.8 52
Total 755 770 796 826

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Repayment of Term Loan

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Conclusion
The project as a whole describes the scope and viability of the
sports club and mainly of the financial, technical and its market
potential. The Profit and Loss shows a steady growth in profit
throughout the year and the firm has a good Current Ratio
(average) of 2, this shows the current assets and current
liabilities are managed & balanced well. The project guarantees
sufficient fund to repay the loan and also give a good return on
capital investment. This initiative will contribute to the local
community's increase in physical activity and sports with the
goal of spreading farther, according to the social-economic
impact analysis.

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