Question

The Surf Coast Football Club Inc. has not had a successful season and the committee considers that a more professional outlook is needed as well as some more talented players! Community fundraising and local sponsorship results in a sum of $100 000 which they intend to spend in the following manner:

(i)         Wages for a part-time membership and marketing officer

(ii)        Ten incentive and achievement prizes for the players when they achieve certain outcomes whilst playing

(iii)       New uniforms and equipment

(iv)       Payment to guest specialist coaches, two of which are members of the club

(v)        A $150 ‘thank you’ payment to all members of the club.

Is the club entitled to spend the funds as suggested? Give reasons for your answers.

Answer 1

The very first thing to note is that, whenever someone sponsers some money, they will most probably put certain conditions to their benefit.

Here also there exists a similar situation, where the football club collects 100,000 as a sponsorship amount. And these money is not ours to spend to our wish. The sponsers will provide what should be done with that amount, so that it will resemble their brand. Indirectly the thing is the sponsers are promoting by giving such amount. So the answer is probably no.