Facility Profitability Reset Case Study

Context

An existing sports facility was underperforming financially despite strong usage and community support.

Leadership assumed the issue was commercial rather than structural.

Symptoms

• High utilisation with low profitability

• Fragmented revenue streams

• Rising operating costs

• No clear accountability for financial performance

Diagnosis

AGC conducted a Facility Profitability Reset to test the operating model.

The diagnostic examined:

• revenue mix and pricing

• utilisation patterns

• cost structure

• governance of commercial decisions

Prescription

AGC recommended operating model redesign rather than incremental fixes.

Delivery (Where Warranted)

AGC supported implementation of the revised model following confirmation of financial viability.

Outcome

• Improved financial performance

• Clear accountability for revenue decisions

• Sustainable operating model

• Reduced dependency on subsidies

Why This Matters

Utilisation does not equal sustainability.

This diagnostic ensured the facility could endure.

Governing Diagnostic

Facility Profitability Reset

When to Use This Diagnostic

• When facilities are busy but unprofitable

• When costs continue to rise

• Before expanding or upgrading assets