Grassroots sports under real threat from economic crisis

Grassroots community sport and recreation are under “a real and present threat” because of the cost-of-living crisis.

So concludes a new report from the Sport and Recreation Alliance, Sheffield Hallam University’s Sport Industry Research Centre and tech platform Sport:80.

The report says:

• 1 in 4 reserve-holding clubs are now in a financial ‘red zone’, meaning holding reserves below a third of turnover, which is double the amount since the global pandemic and is expected to grow to over 1 in 3 in the next 12 months.
• Half of clubs are having to dip into reserves again this year to cover running costs.
• Clubs’ energy bills are expected to almost double in the next 12 months. “For some clubs, the increase in bills will be much greater than this,” the report said.
• The total amount of activity offered by clubs fell by 16% last year in comparison with 2019, the last year before the pandemic. This was a much greater fall than expected, the report said.
• Despite the activity offered, volunteers have given 10% more of their time compared to last year. “This is a concern for future recruitment and retention of skilled volunteers who keep our sector running,” the report warned.
• 66% of clubs and providers use indoor facilities, a further 18% use public spaces such as parks, roads and waterways, with this dependence means clubs and the participation they support are at risk from closures or service restrictions driven by rising energy and other input costs.
• Because of their financial challenges, over 70% of clubs say they plan to cover higher costs by charging members more in fees, which will affect those on the lowest incomes most and make it harder to tackle inequities in participation.
• Around a third of clubs are exploiting new funding opportunities and exploring new, cheaper ways of delivering activity, in order to secure more support to grow and diversify their income over the long term.

To mitigate cost-of-living issues, the report organisers are seeking improved access to finance and investment in energy efficiency and green energy supplies for grassroots community clubs and facilities.

They also seek a boost to the tax and giving benefits available to grassroots community clubs through measures such as uplifting key tax thresholds and allowing Gift Aid on member subscriptions to Community Amateur Sports Clubs (CASCs) and sports club activities.

• To read the full report, click here