Tackling Trump’s Tariffs – Five Things To Focus On As A Canadian Amateur Sports Club

Well here we go again. But this time it’s worse. Unhinged policy throwing tariffs around like garbage can lids. And it could all be changed by the time I finish and drop this article.

But assuming this chaos is here for a while, here are a few important things for you sports club leaders out there in Canada to think about and focus on through these troubled times.

Be all over operational risk like a rash!

Operational risk are risks that threaten to disrupt your day-to-day operations as a sports club. As I have written extensively before, Covid 19 exposed what a terrible job we have done in the past in amateur sport managing this risk when lockdown measures were put in place. So I am hoping you have all learnt your lesson and manage your operational risk now with distinction! But this new threat may bring new risks to your operations that you haven’t seen before.

Even if you feel you are on top of your risk management, you must take a moment to check. Call a meeting with your staff and scan your operations for what could be affected by these tariffs. Don’t just look at the tariffs. Look carefully at secondary, ‘knock-on’ or indirect risk that may affect you. For example, is your club in a market where the chief employment is manufacturing, or are there suppliers you rely on that could scale back operations or even go under because of this? Get a clear picture so you can form contingency plans for what to do if the worst happens. Remember, just like Covid 19, this is risk management. It’s just tariffs instead of a little spiky bug.

Reconsider kit and equipment orders

A big component of your operational risk in this threat is your areas of large procurement, which for most clubs speaks to kit (uniforms) and equipment needed to field your sports programs. If you deal with any of the large kit and equipment companies, your products are likely coming from overseas. It’s most likely that they are coming from traditional low cost manufacturing centres like southeast Asia or South Africa, but you should immediately check your sources and establish any price hike risk you may be exposed to.

I don’t need to tell you big, high participant clubs out there with large internal house leagues how much you spend on kit and equipment, so cover this risk as soon as possible and, if you find exposure, lock down prices as soon as possible, if you haven’t done so already.

Put new projects on hold

Now is not the time to be gambling with high risk, new projects. Unless you have reasonable assurance of their success, put new ventures on ice and double down into dependable programs, especially low-cost recreational programs and house leagues. This doesn’t mean you throw things out. Just shelve them for now.

Yes, it’s true that amateur youth sports is remarkably economically inelastic. In hard financial times, holidays to Caribbean, dinners out at nice restaurants and luxury items get cut quickly. But very few moms or dads are taking Johnny or Jane’s hockey away unless absolutely necessary. Youth sports is right there with bread on table for most families in terms of importance. But that doesn't mean you won’t see some softening of your revenue, particularly in expense competitive sport programs. So play it safe – minimizing financial risk is the name of the game right now.

Reassure staff and customers

As is the case in any time of crisis, get ahead of your communications and messaging. You’ve probably seen many Canadian companies doing it this week, but don’t think it doesn’t apply to you. If you feel you have this uncertainty well in hand, don’t keep it a secret. Let your people know, especially your staff and local community (including your sponsors).

If you foresee some problems, be as honest as you can, as soon as you can. Nobody will be blaming you if you have to unexpectedly cancel a program or a travel tournament. Just don’t leave it too late so people are left in the lurch. Remember, this is not your crisis; everyone is feeling it. So don’t be reticent to communicate clearly and frequently on your state of affairs.

Double up on community

They say you should never let a good crisis go to waste, and this one is no exception. See this as a great way to show value to your community. Remember, people in your community may be getting temporarily laid off or losing their jobs completely. Mental health issues will likely rise to the surface again, Covid-style. Now is your chance to step up and wrap your arms around your community and help out in a time of need.

Push your volunteer opportunities. If people have been laid off, tell them to come down and coach! Engage your local sponsors – are there fundraisers, community events and sports events you can engage them in to support those in your community affected? They will be as keen to support their community as you are. Connect with your local government. They will be keen to hear from community-connected organizations like yours to bring support and any relief measures out to people.

Remember, you are not an amateur sports organization. You are a community builder, driving value into your community through sport. See things through that lens and you will find a lot you can do to add value, even in these tough times.

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_{Paul Varian is the President of Capitis Consulting Inc., a boutique management consultancy focused on adding value in and around the amateur sport Boardroom, author of Amazon #1 Best Selling Soccer Management Book ‘Don’t Blame The Soccer Parents’, and host of amateur soccer management podcast The Regista Room. Subscribe at www.capitislearning.com and follow Paul on Twitter at @paulvarian or on LinkedIn at Paul Varian.}