An Innovative Financial Blueprint for a Youth Sports Club
In 2021, Arlington Soccer Association appointed Frank DeMarco as Executive Director, ushering in a new era of financial and strategic leadership. DeMarco’s background in finance brought an established approach to revenue generation, enabling the club to expand its reach and invest in crucial resources. This article explores DeMarco’s innovative strategies—from boosting community engagement to securing corporate partnerships—that have significantly strengthened Arlington Soccer Association’s financial stability and increased its capacity to serve over 10,000 athletes.
Featured Leader:
FRANK DEMARCO | Chief Executive Officer
Featured Club:
Arlington Soccer Association, Arlington, Virginia, USA
A New Vision for Arlington Soccer
When Frank DeMarco became Executive Director of Arlington Soccer Association in 2021, he saw an opportunity for financial growth. Drawing on his financial background, DeMarco reshaped the organization’s approach to funding, making it less dependent on player registration. For youth sports clubs like Arlington Soccer Association, where revenue typically hinges on participation fees, his approach marks a significant shift.
This article dives into DeMarco’s strategies and how Arlington Soccer Association is setting a new standard for youth sports organizations.
Beyond Traditional Revenue
Most youth sports executives lack experience with diversified income streams. Typically, clubs rely heavily on player registrations and event fees, leaving them vulnerable to a financial downturn, population shifts and threats of competition. DeMarco, set out to minimize these external risks. From the outset, his primary goal was to cover Arlington Soccer’s annual $450,000 financial aid program through diversified revenue. This shift not only reduces reliance on registrations but also strengthens the club’s overall financial health.
Through strategies like corporate sponsorships, fundraising events, and a comprehensive investment strategy, DeMarco has made revenue diversification an integral part of Arlington’s financial model.
A Strong Financial Foundation
Diversified income streams are only as valuable as the strategic management behind them. At Arlington Soccer, the Finance Committee plays a critical role. Meeting eight times a year, this committee oversees the club’s financial strategies, ensuring all investments align with its mission. Under DeMarco’s leadership, Arlington’s capital management became more than a routine task—it became a cornerstone of the club’s success.
Effective capital management not only brings stability but also allows for growth. For instance, during the COVID-19 pandemic, Arlington’s reserve fund ensured that staff and programs continued uninterrupted. Today, DeMarco advocates for youth sports clubs to maintain at least 6-12 months of operating expenses in reserves, creating a safeguard for unexpected challenges.
Transformative Revenue Strategies
To achieve diversified revenue, DeMarco implemented several innovative programs:
- Enhanced Fundraising Events
Arlington’s event lineup expanded from a single annual event to include four additional events, such as themed gala nights and “Soccerfest” community days. These events, combined with fun activities like auctions, are both community-building and revenue-generating. - Member Contributions
During registration, members can contribute donations, earmarking funds for scholarships, fields, or operational needs. Additionally, DeMarco promotes corporate matching gifts, encouraging members to explore workplace giving opportunities. - Corporate Sponsorship
The corporate sponsorship program at Arlington Soccer has tripled in revenue the last three years. By using member referrals, the club expanded its network and gained sponsors who align with its mission. Arlington’s sponsorship catalog offers businesses tailored opportunities to support the club. - Engaging Past Members and Securing Major Donations
Recognizing the philanthropic potential of past members, Arlington launched a major donation initiative, generating contributions as high as $800,000. By reconnecting with former members and creating a legacy giving program, the club has opened new doors for funding. - Grant Writing for Program Support
With the help of a skilled volunteer, Arlington has begun seeking grants to support its programs. One early success funded an after-school program for Title 1 schools, with plans to pursue similar educational grants. DeMarco estimates there are 300 grant opportunities, and the club applies for 3-4 per month.
Investment Strategy
DeMarco’s investment approach is twofold: securing accessible funds while maximizing long-term growth. Arlington’s reserve funds are allocated in various interest-earning accounts, like high-yield savings and short-term government bonds. These accounts balance accessibility and returns, ensuring the club’s financial flexibility.
For long-term growth, DeMarco has opened an endowment fund that’s already yielding significant returns (20 % in last 12 months). His approach not only safeguards funds but also builds wealth, enabling Arlington Soccer to reinvest in player resources, facility upgrades, and training programs.
Investing in People and Programs
The added revenue streams allow Arlington Soccer to invest in its staff and players. With improved funding, the club now offers full-time staff benefits, including medical, dental, and retirement plans. By prioritizing staff well-being, Arlington aims to retain skilled employees in a highly competitive market.
These investments extend to capital projects as well. Current initiatives include converting grass fields to synthetic turf and renovating a facility for office space and indoor training. By aligning investments with strategic goals, DeMarco is strengthening Arlington’s ability to serve its members effectively.
Ensuring Long-Term Success
The role of soccer club leadership involves more than securing funds—it’s about careful stewardship of resources. At Arlington Soccer, the focus is on aligning financial decisions with the club’s mission and vision. Strategic planning, diversified revenue, and capital management work together to create a sustainable future for the club.
Key Takeaways for Youth Sports Leadership
- Align Financial Strategy with Core Mission: All financial decisions should support the club’s mission, vision, and strategic goals.
- Build a Diverse Leadership Team: Include experts in finance, legal, marketing, and fundraising to guide and support financial strategies – these are often Board roles in a non-profit.
- Diversify Revenue Streams: Use multiple revenue sources, including donations, sponsorships, investments, and events, to build financial resilience.
- Optimize Reserve Funds: Avoid leaving reserves idle; explore options like insured cash sweep accounts, high-yield accounts and government bonds for steady returns.
- Engage Current and Former Members: Foster relationships with members who can support the club long-term through donations, introductions, and legacy giving.
Frank DeMarco’s approach at Arlington Soccer Association is a model for sustainable growth and community-driven success. By focusing on diversified revenue and strategic investments, DeMarco has transformed Arlington Soccer into a financially secure, mission-driven organization that serves as a valuable community resource. His strategies provide a roadmap for youth sports clubs seeking financial resilience and growth.
About Frank DeMarco
Frank DeMarco, originally from Brentwood, NY, was a multi-sport athlete and went on to play Division I soccer at Hofstra University, where he earned a degree in Banking & Finance. He began his career on the global equities trading desk at Lazard, later pursuing a Master’s in Computer Science from James Madison University. Following graduate school, Frank joined Accenture as a consultant, advising Fortune 100 companies on technology strategy. He then transitioned to Stanley Associates, working with federal agencies including the Federal Reserve and Department of Justice, where he helped lead the company through rapid growth, an IPO, and its acquisition by CGI.
In 2019, after two decades in the business world and years of part-time coaching with Arlington Soccer, Frank joined the club full-time. He first became involved in 2004 and has contributed in nearly every program area. Promoted to Executive Director in October 2021, Frank now leads Arlington Soccer in advancing its community impact and financial goals. He holds both a U.S. Soccer Federation “A” License and a National Youth Coaching License.
Frank lives in Arlington, VA, with his wife, Regina, and their three children—Frank, Julia, and Jack—all active members of the Arlington Soccer club.
