The Real Cost of Running a Youth Sports Program (Actual Numbers)

Profit margins are razor thin. I've seen programs gross $200k and take home less than a part-time barista. And I've seen others clear $150k on $350k. The difference? Understanding the cost structure.

Below is the breakdown nobody talks about—backed by real programs I've run, consulted on, or audited.

The Big Buckets (Where Your Money Actually Goes)

Every program shares the same major line items. The difference between profit and pain is how you manage them.

Facility Costs (20-35% of Revenue)

Rent is the silent killer. Hourly rental puts you at 40%+ of revenue. Flat monthly deals, partnerships, or ownership drops the marginal cost dramatically.

Hourly example:

$75/hour × 6 hours × 8 weeks = $3,600

Revenue (60 kids × $150) = $9,000

Facility cost = 40%

Best operators:

Negotiate $5,800/month flat deals or sell revenue share to school partners.

Coach Compensation (25-40% of Revenue)

Great coaches are worth more than you pay. Bad coaches cost you families. Budget 10-15% extra for cancellations/turnover.

Example: 6 coaches × 8 weeks × $40/hour = $1,920 on a $9,000 program (21% of revenue).

Insurance (5-8% of Revenue)

GL + participant accident + D&O if incorporated. For $100k revenue, expect $7k-9k. Some policies exclude activities—read them.

Marketing & Customer Acquisition (5-25%)

Profitable operators keep this under 10% via referrals, schools, and organic content. Struggling ones spend 20%+ on ads trying to fill spots.

Admin & Ops (10-15%)

Registration platforms, software, accounting, background checks, equipment, uniforms. Don't ignore these—they add up.

Taxes & Fees (15-30% if Profitable)

Federal, state, and self-employment taxes eat your operating profit. Run $200k with $50k net? Expect $15k-20k tax bill.

Two Real Programs: Profit vs Pain

Program A: The Grind (Unprofitable)

$180k revenue, heavy hourly rental, high ad spend, no systems.

Facility 40% = $72k

Coaches 35% = $63k

Insurance 6% = $10.8k

Marketing 20% = $36k

Admin 12% = $21.6k

Total costs: $203.4k → Loss: $23.4k

Operator worked 60h/week and lost money because they rented hourly and spent heavily on ads.

Program B: The Machine (Profitable)

$320k revenue, flat facility deal, referral engine, automated ops.

Facility 22% = $70k

Coaches 32% = $102k

Insurance 5% = $16k

Marketing 8% = $25k

Admin 10% = $32k

Total: $245k → Profit: $75k (post-tax ~$56k)

Same sport, better P&L. The difference was systems.

The Numbers That Matter

Line Item	Healthy Range	Why it matters
Facilities	20-30%	Negotiate flat deals or volume discounts.
Coaches	25-35%	Don’t underpay good coaches, but automate scheduling.
Insurance	5-8%	Non-negotiable. Read the policy.
Marketing	<10%	Referrals & schools keep CAC low.
Admin/ops	10-12%	Automate registration payments & scheduling.
Total Costs	70-85%	Target pre-tax profit margin 15-30%.

Red flags: Facilities >35%, coaches >40%, marketing >15%, total costs >90% — you're running a charity, not a business.

What Profitable Operators Do Differently

• Negotiate facilities aggressively (flat monthly deals, multi-year contracts)
• Build retention/referral loops (60%+ return rate, 30%+ referrals)
• Price between $200-300 for rec, $400-600 for competitive
• Automate registration, reminders, coach scheduling, marketing
• Know unit economics: revenue per session, cost per kid, profit per program

If you can't measure it, you can't optimize it.

The Bottom Line

This is a real business with real costs. Run your numbers before you assume profit.

Keep operating costs under 85%, automate the boring stuff, and you'll make real money instead of just traffic.

Don't be most programs. Know the numbers. Adjust your model. Stay profitable.