If you are going to start your own sports agency business, a financial plan is required. This template will give you a robust set of dynamic assumptions that enable a clean output financial model / financial statements for starting up and running a sports agency. Note, this would also work for any sort of general agency where there are two primary revenue streams (playing/acting career and endorsements).
Strategy planning while seeing the financial impact is where this model shines. You can plan out a low athlete / professional count with higher contract values or higher counts with lower average contract values or something in-between. Being able to conduct feasibility and sensitivity analysis quickly and clearly will allow you to have a great foundation and plan for what you want to do instead of just flying blind.
Dynamic models like this spreadsheet are really useful when one is trying to see what the financials look like with certain variables / commission rates being adjusted. There are all kinds of ways to run a sports agency or agency in general, but one thing that is paramount is understanding the unit economics and cash flow forecasting of whatever strategy you are implementing.
It is difficult or near impossible to try and understand the cash flow requirements with a simple back of the envelope calculation. The advanced logic in this template allows for the planning out of up to three athlete types, which can vary by average starting annual contract value (playing career), commission rates, average value of annual endorsements, and a schedule for how that starting value changes over their career (separate schedules for player contracts vs. endorsements).
This gives the most accurate forecast of revenue for the sports agency possible based on the defined assumptions. That is important because it gives the owner an idea of what kind of capital will need to be invested up front and what sort of expenses are feasible over time.
Revenue Assumption Inputs (3 Athlete Configurations):
- Start Month
- Starting Athlete Count
- Athletes Added per Month (this can be a decimal)
- Year-ending Athletes (output)
- Average Annual Athlete Contract Value (adjustable over time)
- Average Commission Earned per Athlete (adjustable over time - applies to all existing contracts)
- Average Annual Value of Athlete Endorsement Deals (adjustable over time)
- Average Commission Earned per Athlete (adjustable over time)
- % Earned from Base over 120 months (configuration is on 'validation' tab (different for playing career vs. endorsement career)
- Monthly / Annual Financial Statements (3 statement model) - Income Statement, Balance Sheet, Cash Flow Statement
- Monthly / Annual Pro Forma detail
- Annual Executive Summary
- DCF Analysis (project / inside/outside investors if applicable)
- IRR, NPV, ROI, Equity Multiple
- Visualizations
