Keeping sports and communities thriving

Historically, public Parks and Recreation Departments have operated recreation facilities “for the public good,” expecting operational losses. In the current climate of government budgetary shortfalls, the expected operational loss model is no longer tenable.

SRM provides a solution to those local governments operating unprofitable recreation facilities.

We privatize the operation of public recreation facilities. Privatization of public facilities is not a new concept, but recently more local agencies are considering privatization as a budgetary solution. SRM offers our local government partners a way to extricate themselves from annual budget losses while increasing the number of park users, and lessening the burden on taxpayers.

SRM enters long-term management agreements with our local government partners and reduces the financial risk to our government partners while providing a well-maintained, regularly visited facility. Our fixed-fee management agreement allows our government partners to reduce the burden on their General Fund and includes an additional upside through revenue sharing.

In certain instances, SRM would be able to discuss a possible purchase of your facility, while keeping its use open to the public.

The problem:

Local governments across the United States are beginning to realize that they cannot operate their community recreation facilities as they have in the past, and expect to keep the grass green and the lights on. In spite of the continued growth of both the youth and adult amateur sports tourism markets, many agencies are experiencing operational losses from their facilities and are deciding to reduce recreation services and close facilities. The rising cost of unfunded liabilities are causing cities across the country to redirect dollars historically used to fund public services to meet those liabilities. For many cities, the first place to look for funds to redirect is recreation and park services. An average sized City-operated recreation facility can typically cost the agency from $250,000 to more than $600,000 annually after revenues. SRM keeps parks open, keeps agency budgets healthy and keeps youth and adults active in your
community.

“The U.S. youth-sports economy…is now a $15.3 billion market, according to WinterGreen Research, a private firm that tracks the industry. And the pot is rapidly getting bigger. According to figures…the nation’s youth-sports industry has grown by 55% since 2010.”

(Time Magazine, August 2017)

“Team sports continued to gain momentum, adding 2% from 2015 and averaging a 5% increase over the last three years.”

(2016 Sports Participation Report by the Physical Activity Council)

“Tourism depends on attractions…In most communities, primary attractions are sports tournaments, festivals, parks, and major recreation facilities operated by park and recreation departments. However, most stakeholders remain unaware of park and recreation departments’ role in tourism.”

(John L. Crompton Distinguished Professor of Recreation, Park and Tourism Sciences, Regents Professor, Texas A&M)