Revenue efficiency ratio
One important indicator of a club’s efficient use of renenues and resources is its ability to generate revenue from its supporter and fan base. While it is important to cultivate a broad supporter base, it is equally important to cultivate a broad supporter base, it is equally important to create a level of fan loyalty whereby they contribute consistently and intensively to the club]s revenue steam. Whereas one club may have a large fan catchment (i.e. it has a large surrounding population, or possesses a strong brand image which attracts people from all over the place) many of their fans may be only marginally attached to the club, and attend games and take out memberships only when the club is playing well, or the weather is fine . For instance, it might have a revenue base of $50 million and an average home attendance is called revenue efficiency, and measures the ability of the club to attract financial support from it fans. The ratio is calculated by dividing average home attendance into revenue, and measured the revenue received for each fan who attends a home game. In the above example the revenue efficiency ratio is 50 million divided by 25000 which is 200000 or 200000:1. That is, for every fan who attends each week, the club generates