For economic impact

GENERAL INFORMATION

Definitions

ECONOMIC PORPOSE: Sport is a worldwide industry, it can be used as a platform for communication in order to mobilize human resources for a determined purpose.

Specific purposes this Activity Box applies to

Lack of funding in ISOs and other Sport organisations

  • Membership fees
  • Organisation of events
  • Sell of merchandising and apparel
  • Economic barriers to participating in Sport for All activities among target groups

Barriers to access to employment:

  •  Livelihoods
  • Entrepreneurship

Lack of frameworks to measure the economic impact of Sport

  • Contribution to public heath
  • Contribution of volunteers
  • Contribution of Sport events to national economies
  • Economy of well-being

KEYFACT

  • 60% of Europeans are, with more or less frequency, engaged in sporting activities. It is estimated that around 60 million people are Sport club members in Europe. (COMMISSIONER TIBOR NAVRACSICS)
  • Voluntary work is considered the most important resource of the grass-root Sport sector. 7% of the Europeans or 35 million citizens, are volunteering in Sport (98)
  • 2022 forecast for expenditure in training or competing in popular runs will reach EUR 73,500 million (100)
  • The majority of those with difficulties paying bills never exercise or play Sport: 66% of those who have difficulties most of the time, and 55% of those who have difficulties occasionally(181).https://europa.eu/eurobarometer/surveys/detail/2164

Why is it so important

Contribution:

Potential of Sport for All in economic purposes
Individual-level:

  • Improving people´s education through workplace productivity. Sport for All can provide people with specific ‘core’ and ‘soft’ skills that may raise their level of employability
  • There is a strong relation between physical health and people’s ability to work and earn a living for themselves and their families

Community or club level

  • Sport for All events special those with massive scope such as Festivals, large tournaments or runs have an impact on the financial sustainability of clubs or ISOs
  • Volunteering contributes on many levels (TIBOR NAVRACSICS)
    National scale
  •  Physical activity can help reduce health-care costs and increase productivity, key issues in emerging economies
  • There are studies and authors that quantifies the economic impact of Sport activities on well-being

International endorsement

UNESCO International Charter of Physical Education, Physical Activity and Sport                    Organisers of Sport events must pay due consideration to the overarching principle of sustainability, be it economic, social, environmental or sporting.

WHO Global Action plan on physical activity
Sport is an underutilized yet important contributor to physical activity. It also provides significant social, cultural and economic benefits to communities and nations.

Barriers to sport that should be overcome

  • Wrong assumptions that Sport should be free of cost or subsidized
  •  A lot of citizens do not engage in Sport for All because of economic reasons (lack of money)

Tips and key success factors

Livelihood and entrepreneurship models through Sport
Soft skills and competencies gained through Sport are a relevant drivers for overcoming the challenges that affect young people, not in employment, education or training (NEETs).

Advocacy

  • Persuade governmental agencies to invest heavily in grassroots Sport and Sport for All, not just elite Sport
  • Build awareness within the private and elite sporting sectors of the economic contribution of Sport for All
  • Co-hosting Major sporting can create positive legacies for host cities or regions (including youth engagement)
  • Communications campaigns should promote awareness of the contribution of physical activity, and particularly walking, cycling and use of public transport, to sustainability agendas (WHO GLOBAL ACTION PLAN)

Collaborative partnerships

  • Sport attracts many people and is associated with a positive image.
  • Cross-sectoral cooperation with institutions (inter alia with schools).

Potential of organizing Sport events

  • Creating jobs and opportunities to upgrade skills and produce further services and products
  •  Tourists to these events can participate in other local offered activities

Innovation and new ideas or services

  • In many countries, basic equipment is not available. Developing these goods could be an interesting alternative for revenue making
  • Other ideas: Complementary services such as personal training, a restaurant in your training facility. Consider having the advice of experts in entrepreneurship and business model development

Other tips:

  •  Be clear in the costs of your Sport for All project, no matter if you offer a paid or a free Sport activity
  • Estimate all the costs derived: maintenance, coaches, equipment, volunteers, etc.
  •  Ensure fair and affordable entrance costs at Sport club level: Consider advocating different fees for different socio-economic backgrounds
  • Work with public authorities to initiate support schemes

Available resources

Sample case

Social Enterprises through Sport
(Local NGO in Lesotho)

  • As a charity and a social enterprise, our mission is to transform the lives of vulnerable young people in Lesotho.
  • In doing so, promote long-term sustainable development in the Mountain Kingdom.
  • Several business models related to Sport.
  • Other clever ideas related to Sport for All: Virtual Virgin Money London Marathon 2021.

More information:
Kick for Life Model.  Click Here

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