Finance in Sport

The aim of this lesson is to learn how amateur and professional sports are funded (Equivalent to UK GCSE Physical Education)

Amateur Sport

Amateur sport is not well funded compared to the huge sums of money thrown at professional sport. Funding for small clubs and sporting facilities can come from several different places:

Sponsorship - Local businesses may sponsor small clubs in return for having their name on the teams shirts

Membership fees - Small clubs often ask for membership fees or things like training and match fees to cover their running costs

National Lottery Funding - Teams can apply for lottery funding to build new or improve existing facilities. However the team have to raise half the money themselves and the competition for funding is fierce!

Subsidies and Taxes - Public sporting facilities are often paid for in part by the local council so that prices for admission and use of the facilities are lower. The council get the money from your taxes

Profits - Private facilities are run as a business and so usually make a profit from people paying to use the facilities

Gambling levies - Small clubs and teams often try to make extra money through things like raffles

Social events - Small clubs will often hold social events like race nights, auctions of promises and dinners to try to raise money.

Professional Sport

Money in professional sport is usually far more readily available. Or at least it is in popular sports! Athletes in less popular sports have to work really hard to get enough money to be able to train and compete. Here are the main sources of money in professional sports:

Media - TV and Radio companies pay huge sums of money for the rights to show major sporting events. They pay the governing body of the sport, who use the money to promote and develop the sport.

Sponsorship and Merchandising - Big companies pay professional teams to put their name on their shirts and all around the ground and in programmes etc. Teams also make money by selling things in their club shops, like replica kits and equipment.

Ticket Sales - Big teams and events sell tickets to spectators to bring in money. If your ground holds tens of thousands of people, thats a lot of money!

Grants - The Sports Aid Foundation provide grants to up and coming sports people to help them to train and compete. This is how many athletes in less well publicised sports get money. The SAF get money from donations and fund-raising.

Competitions - Small competitions rely on entrance fees to make money as they don't get media attention and sponsorship like bigger events.

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