The Organisation of Sport Unit 1- The Sports Industry

The Sports Industry It is generally accepted that the sports industry can be divided into three sectors according to who is organising or running the activity or location. These are: Public Private Voluntary or ‘not for profit’

Activity! Voluntary, Public and Private sectors Demonstrate your understanding of the three areas of provision by listing the relevant criteria under the three headings provided in the table by placing in the number of each factor. Some factors may be relevant to more than one area.

Answers! Private:Public:Voluntary/ Charitable: 4, 7, 9, 10, 11, 16, 18, 19, 20, 21, 22 1, 3, 5, 7, 8, 13, 14, 15 2, 6, 7, 9, 12, 13, 14, 17

The Public Sector Term given to sport and leisure provision organised by local authorities Available to everyone in the community Financed by local authority taxation and funding Aim to enhance participation through providing programmes and activities for different types of users at affordable prices However, even though this was achieved- due to poor management and lack of upkeep and investment by the 80’s the facilities started to look shabby compared to the new private sector facilities

The Public Sector QUICK ACTIVITY! Identify two examples of the following local authority facilities in the area: - sports/leisure centres - swimming pools and fitness suites - parks, pitches and play areas - tracks, courts and bowling greens

The Public Sector As a result of this poor management the government got involved and two major initiatives where introduced: Competitive Compulsory Tendering (CCT) – A requirement for public agencies to put certain services out to competitive tender. Basically a company could buy and run an area of a leisure facility and run more effectively. Therefore facilities became more ‘private’ in their new approach to running the facility.

The Public Sector Best Value – The objective of Best Value is to ensure that management and business practices in local government deliver better and more responsive public services. Best Value in local government is about local authorities: Balancing quality service provision against costs; Achieving sustainable development; Being accountable and transparent, by engaging with the local community; Ensuring equal opportunities; Continuously improving the outcomes of the services they provide.

The Public Sector In what ways does the public sector try to encourage participation? Create links between schools/voluntary clubs/youth service and LA facilities Ensure that facilities and activities are promoted to the full Make active provision for other minority groups Develop the social side of facilities as well as the sporting aspects Involve parents and young children in the sporting activity together

The Private Sector These include businesses from a wide range of activities, including sports equipment and clothing, gambling, sports you pay to watch, like horse racing and sports that you take part in like golf. They have to be able to respond quickly to change in demand from customers. For example, fashions in sports clothing change quickly. Some of these businesses sell shares on the stock exchange- this means that you could invest money in that company.

Activity! Imagine you have £5000 to invest in companies involved in the sports industry. Working in groups of 3-4, look at newspapers for information on shares. Decide how your group is to spend the £5000. You could buy shares in a chain of fitness clubs, a football team or a sportswear manufacturer. Track the value of your shares for 3 weeks and calculate your shares at the end of this period. 1. Have you made or lost money? 2. What factors might explain the performance of the businesses you invested in?

The Private Clubs These facilities also aim to provide a service to the local community in terms of sport and leisure, BUT…….. some do it in order to make a profit! These organisations can be put into three main areas: - Arenas and stadia - Commercial organisations - Employers

Providers of sports facilities in the private sector

Membership Option Joining FeeMonthly Subscription Annual Subscription SingleJointSingleJointSingleJoint Full Membership* £500£750£78.00£156£889.00£1,778 Peak Membership £250£375£68.00£136£775.00£1,550 Health Club£150£225£58.00£116£661.00£1,322 Countrywide Membership Nil £25.00£50.00£285.00£570 Evening Countrywide Membership Nil £15.00£30.00£171.00£342 *Limited availability Nirvana Spa - Private

Total Lifestyle Membership: Peak: £40 Peak PTL £35 Off Peak: £35.50 Off Peak A PTL: £30.50 Off Peak BCD PTL: £23 One off joining fee for Lifestyle membership £65 per person Active Lifestyle Membership: Peak: £25 Peak PTL: £21 Off Peak: £21 Off Peak A PTL: £18 Off Peak BCD PTL: £14 One off joining fee for Lifestyle membership £65 per person Rivermead Leisure Centre - Public

Discussion Point: Will traditional local services for recreation continue to be available to the public at large or whether market forces will mean higher charges and privatisation of facilities will prevent some from participating?

The Voluntary Sector Believe it or not…. this sector is the largest! Can be classed as ‘Grassroots’ level. Consists of small, medium and large orgs who support their own sport. Involves 8 million people of all ages in the UK. Aim of this sector is to make enough money to keep them viable… money that is made as profit gets reinvested in the organisation. Normally involves both the help of the public and private sectors…. public for pitches and halls etc and private for sponsorship.

Relationship between the three sectors Public sector – local council hires out facility for club to meet in Private sector – local sports shop sells kit and equipment to players Voluntary sector – people join to play, provides coaches and referees, etc

Providers of sports facilities in the voluntary sector

Conclusion and further work…. Collect a range of leaflets from the three different types of sports organisations in your local area. Look at what they have to offer and compare their operating purposes…. - Do their publicity materials create an image of the sector they belong to? …… to be discuss in the next lesson!