I go back and forth on this one...not sure how I feel.
Lets say you own a "baseball academy" and lets also say that you're well known in the area, but not an established travel team program. You've got batting cages, pitching mounds, weights, exercise machines, etc... Got yourself 5-10 instructors who charge by the hour to give 1-on-1 instruction and you get a portion of their fee to use your facility.
But most of your instructors are itching for some real world stuff. Wanna get on the field. So you form some teams...maybe one per age group for these guys to coach. You charge for uniforms, a monthly fee for the instruction and perhaps shared tournament fees.
Is running these teams out of your academy a "good" business model/decision or not?
On the one hand, it probably generates a little extra revenue per month. Might generate some loyalty to good coaches. On the other hand, it PO's some families who don't make your team...or don't play enough on your team...or don't like your coaches in game situations...or just feel gouged a bit at the payment pump.
I know a local academy owner who disbanded all of his teams because he felt it hurt his business in the overall scheme of things. I know another academy owner who thinks its a good model.
Thoughts?
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