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Post by santiagomunez on Jun 29, 2015 10:33:41 GMT -6
Just curious to know whether all clubs are now charging financing fees. For the first time in many years the club my child plays for is charging a 6% finance fee (so you either pay the entire $1325 player fee at once or finance the annual player fee through a bank at 6% annual interest). Is this something new? In the past, the club charged one's credit card a monthly amount (i.e., the annual fee divided by the number of payments you wished to make, typically 6 or 8). Is this a way to make additional revenue? It adds about $80 per player, per year. But if a club has a 1,000 total competitive players, the additional revenue can add up.
I realize the additional cost may not be much to some. But for others it may be. Is this the way of the future?
Any feedback?
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Post by soccerdad23 on Jun 29, 2015 13:11:56 GMT -6
its ALL about the money!!
which is truly sad!
they've discovered that youth sports is BIG business!!
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Post by laffysoccermom on Jun 29, 2015 13:52:34 GMT -6
Our club charged more if you made payments by credit card. It was to cover the processing fee they were being charged by the processing company. Not sure what they are doing this year.
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Post by SFC Retired on Jun 29, 2015 15:02:58 GMT -6
its ALL about the money! which is truly sad! they've discovered that youth sports is BIG business! Soccer dad you are 100% right, especially when clubs have A,B, and C teams . Sad thing is majority of the B and C teams don't get quality coaching and you still have to pay the full amount ! |
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Post by Antimatter on Jun 30, 2015 10:40:23 GMT -6
Just curious to know whether all clubs are now charging financing fees. For the first time in many years the club my child plays for is charging a 6% finance fee (so you either pay the entire $1325 player fee at once or finance the annual player fee through a bank at 6% annual interest). Is this something new? In the past, the club charged one's credit card a monthly amount (i.e., the annual fee divided by the number of payments you wished to make, typically 6 or 8). Is this a way to make additional revenue? It adds about $80 per player, per year. But if a club has a 1,000 total competitive players, the additional revenue can add up. I realize the additional cost may not be much to some. But for others it may be. Is this the way of the future? Any feedback? I do not have a problem with this at 6%. In real dollars, someone who pays a dollar now rather than ten cents a month for 10 months is paying more money. This equals what people are paying. Additionally, there are certain to be a number of folks making monthly payments who default. Is it fair to raise the price of the person paying cash to cover the shortfall from those that defaulted? Offering a monthly payment plan is something no club has to do and it costs money and risk and at 6% THEY ARE NOT MAKING MONEY. They are providing an incentive for paying up front. By the way, at 6%, the amount paid in interest would be less than $44.00 if it were a 12 month payment plan and under $37.00 if it were a 10 month plan . As you are paying principle each month you are not paying 6% on the entire principle for a year. And that amount would only be for those who financed their payments not for all 1000 players. Now whether $1325 is too much money for what some clubs are delivering, that is a TOTALLY different discussion. |
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Post by soccerdad23 on Jun 30, 2015 11:02:19 GMT -6
Botton Line....
No one should have to take out a loan, finance, or take out a second mortgage to allow their kids to play youth sports!!
Its getting ridiculous!
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Post by dme1214 on Jul 1, 2015 1:37:57 GMT -6
The club here gives 2 options, pay in full or pay in 2 payments, with an extra $50 added to the total. First payment is 60% due at signup 2nd payment is the remaining 40% due 12/1 , although our club fees are much less then the 1325 above, the $50 charge for split payments is over 6%. Also there is a cc service charge of you use your card. (To cover the processing fee I suppose)
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Post by scoutcast on Jul 6, 2015 17:40:50 GMT -6
Botton Line.. No one should have to take out a loan, finance, or take out a second mortgage to allow their kids to play youth sports! Its getting ridiculous! This is one of the reasons I chose no to let my kid play ODP last year. I think it was $1400. Its not about finding the best talent but more about finding the best talent that will pay. |
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Post by happyjack on Jul 18, 2015 20:50:40 GMT -6
The 6% is going to the bank, not the club. Very simple business reason for doing this, club wants the money up front to ensure they can make their budget and pay their obligations, plain and simple. If you finance it, the bank pays them the full amount, so they have what they want. If there is a default, the bank now comes to the parent for the funds, not a club issue.
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Post by laffysoccermom on Jul 18, 2015 21:01:51 GMT -6
After managing a team for the last few years, I can understand to a point. Trying to chase parents down for money is hard. In most cases, the Club guarantees the loan for the bank so if there is a default they lose the money but it affects the parent's credit and bank collectors keep trying to collect. I have heard of schools doing this for tuition as well.
It's a shame that it's so expensive but there are expenses associated with it.
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