Ancillary Revenue in Sports Facilities: Income Beyond Core Court and Membership Fees

Food and beverage as an ancillary revenue stream

Catering is one of the most common ancillary revenue streams in sports venues of all sizes. The economics depend on the format—a staffed café, a vending operation, or a licensed bar attached to event spaces—and the throughput of the facility. Catering requires specific regulatory compliance (food safety certification, licensing where alcohol is served), specialist staff or a contracted operator, and equipment investment. Facilities operating catering directly carry full cost and margin risk; facilities contracting a catering operator trade some revenue for reduced operational complexity and risk. The catering offer also affects the overall facility experience and should be evaluated as part of the member or visitor experience, not purely as a standalone revenue line.

Equipment hire, retail, and programme revenue

Equipment hire—racquets, paddles, balls, wetsuits—provides incremental income with relatively low marginal cost once the equipment is purchased. Equipment retail carries inventory management complexity and requires staff time for sales, but can contribute to the facility's commercial offering and convenience for participants. Coaching programmes—group lessons, clinics, camps—typically generate higher revenue per hour than uncoached court hire but require qualified coaching staff and structured programme design. The profitability of coaching programmes depends heavily on the fill rate and the efficiency of the coaching scheduling, as under-booked sessions carry the same coaching cost with lower revenue. Facilities that integrate coaching programmes tightly with their booking and membership systems typically achieve better scheduling efficiency.

Events hire and non-sport venue use

Hiring out facility spaces for corporate events, parties, exhibitions, or community gatherings during otherwise low-demand periods can generate meaningful ancillary income. This works best for facilities with flexible spaces—large reception areas, function rooms, or outdoor areas—that can be configured for non-sport use without disrupting the core sports operation. Events hire requires a different sales channel and client management approach from sport-focused marketing, and may involve coordination with caterers, AV providers, and support staff. Facilities pursuing events hire should be realistic about the operational demand it creates and should ensure that events revenue covers not only direct costs but also a fair allocation of management time and facilities overhead.

FAQ

Which ancillary revenue streams tend to contribute most reliably to facility finances?

Coaching and group programmes typically offer the best combination of revenue density and repeatability, as they create scheduled recurring demand from enrolled participants. Equipment hire is low-complexity with limited incremental cost once equipment is owned. Food and beverage is variable in net margin depending on format and throughput. The answer depends heavily on the specific facility, its location, its member profile, and how well each stream is managed—general rankings are less useful than a detailed margin analysis for the specific facility.

How should a facility decide whether to operate an ancillary service directly or contract it out?

The decision depends on the facility's management bandwidth, the scale of the ancillary operation, and the risk profile. Direct operation captures more revenue but carries full cost and compliance risk and requires specific operational expertise. Contracted operation (for example, a third-party catering or equipment hire operator) typically delivers less revenue but eliminates operational complexity and risk. A useful framework is to assess whether the facility's management team has the bandwidth and expertise to operate the service to a standard that will enhance rather than detract from the overall facility experience.

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Last updated: 2026-06-30