Lillehammer Ski Club financially healthy again
After an impressive turnaround, Lillehammer Ski Club can now report a positive financial outlook, with a surplus presented at last week’s annual meeting. Remarkably, the club has reversed a deficit of around $80,000 USD into a surplus of $85,000 USD.
The club is home to several of Norway’s top skiers, with Martin Løwstrøm Nyenget (pictured) being the most well-known today. Lillehammer SK has struggled financially in recent years, with alarm bells ringing loudly last year.
According to gd.no, the remedy included a new financial management model where each discipline and the administration have their own budget responsibilities, and where large events are accounted for in the following year. Additionally, the club has reduced the number of staff.
Chairman Kjell Magne Sunde emphasized to gd.no that the club has strong liquidity. However, income must be increased through a strong sports offering that attracts more active members.
Sunde believes the key has been defining each discipline and the administration as separate departments.
“Revenue is allocated to each discipline, allowing them to manage their own costs and be responsible for their own results. Furthermore, large events are no longer included in the accounts for the same year, but rather the year after. This is important to avoid major revenue-generating or loss-incurring events impacting the operating budget. We need ongoing financial control,” says Sunde.
In 2024, the club’s operating income was $587,400 USD (6.1 million NOK)—about $96,200 less than in 2023. However, operating expenses were reduced from $798,400 (8.3 million NOK) in 2023 to $538,900 (5.6 million NOK) in 2024. In addition, wage expenses were cut by a further $77,000, from $221,300 (2.3 million NOK) to $144,400 (1.5 million NOK) last year.
Lillehammer Ski Club had an equity of $856,500 (8.9 million NOK) at the end of the year.
“We can withstand a rainy day or two, but we cannot plan to dip into our capital. This year’s budget has a small surplus, but in practice it’s considered a break-even operations budget,” Sunde tells gd.no.
He adds that the biggest challenge moving forward will be increasing revenue. To do so, the club must offer a strong sports program that attracts many new active members, thereby boosting membership and training fees.
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